Wisconsin Department of Transportation

2015 Real Estate Conference

Access Issues

Wisconsin Dells, WI

September 30, 2015

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Presenter

John Rolling, SR/WA

WI Certified General Appraiser #127-010

Rolling & Barnes, LLC

222 N. Midvale Blvd., Suite 22

Madison, WI 53705

608-231-2120

john@rollingandbarnes.com

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Seminar Topics

• When Are Access Changes Compensable ?

• How to Distinguish between Access Change and a Taking of Access Rights

• How to Measure Access Change Damages through Sales Comparison and Cost Approaches

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3 Questions on Access Change

• Physical Change

• Legal Rights

• Value Impact

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Access Change Also known as:

Change in How a Private Property Connects to the Public Road System

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Legal Rights

• Taking of Access Rights

• vs.

• Change in Access Point

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Right of Access Defined

• “…a right of the owner to enter or leave his or her property by using an abutting street or highway, without obstruction.”

– Wisconsin Jury Instruction JI-Civil 8111

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Taking of Access Rights

• Wis. Stat. 32.09(6)(b) compensable damages include:

• “Deprivation or restriction of existing right of access to highway from abutting land…

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Wis. Stat. § 32.09(6)(b)- Continued

• “…provided that nothing herein shall operate to restrict the power of the state or any of its subdivisions or any municipality to deprive or restrict such access without compensation under any duly authorized exercise of police power.”

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Examples of Police Power

• Closing an intersection• Replacing direct access to highway with a

frontage road• Constructing a median barrier• Widening travel lanes within existing ROW• Relocating a highway

Compensable Property Right:

The Right to Apply for an Access Permit

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How to Identify A Taking of AR’s ?

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Plat Identifies Taking of AR’s

• “Whiskers” Signify a Taking of AR’s

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Plat Identifies Taking of AR’s

• Project Schedule of Interests Confirms

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Plat Identifies “No Take” of AR’s -1

• Project Plat – “Bullets” or

“Balls” Mean “No Access by

Statutory Authority”

New freeway built on

open land. Wis. Stat.

§ 84.295 controls.

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Plat Identifies “No Take” of AR’s -2

• Project Plat– “Diamonds”

Mean Access Rights

Previously Restricted.

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Controlled Access Highways

• See Title Report• “Finding, Determination and Declaration” for

Controlled Access Highways– Chapter 84.25 (State)– Chapter 83.07 (County)

- Freezes location, number, type of access points- Future alterations require approval- Revocable if other access available

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Other Sources of AR Data: Title Report

• Notice of Freeway or Expressway Designation

(Wis. Stat. § 84.295)

- No new direct access to future freeway or expressway permitted

- When existing access point replaced by frontage road access, no compensation

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Other Sources of AR Data: Title Report

• Subdivision Plat or Certified Survey Map

- Access restrictions often shown here

- Trans 233: WisDOT right to review access to state highway from proposed subdivisions

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Other Sources of AR DataDriveway Permits

• Permit terms specify use (agricultural, residential, commercial), location, opening size, paving materials.

• Does existing driveway conform to permit?• Permits revocable as traffic conditions change.• Permits not recorded• Check records of jurisdiction

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Driveway Permit JurisdictionsType of Highway Jurisdiction Contact

State Trunk Highway WisDOT Access Coordinator at Region Office

County Trunk Highway County County Highway Commissioner

Local Road Municipality Town, Village, City Clerk, Zoning Administrator, Engineer, Building Inspector

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Summary Re Compensability: What Access Rights Before?

• Police Power Limitations

• Prior Conveyance of Rights

• Right to Apply for Permit

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Property Utility QuestionBefore Condition

• If Landowner has Right to Apply for Permit

• How Likely is Permit Approval?

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Road Connection Standards 1

• Established by Maintaining Authority• Considerations

– Highway Classification– Highway Traffic Volume– Speed Limit– Topography– Sight Distance

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Road Connection Standards 2

• Considerations Continued– Intersection Geometry– Spacing to Existing Openings– Use of Property: Ag, Res, Comm, Ind– Trip Generation– Opening Size/Slope/Pavement Surface

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Property Utility QuestionAfter Condition

• Does Loss of Ability to Apply for Access Permit at this Location Result in Diminished Utility?

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Other Compensable DamagesRelated to Access Change

• Internal Circuity of Travel

• Change of Grade

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Internal Circuity of Travel

…the condemnor may also consider costs of extra travel …to reach any point on the property from any other point on the property.”

- Wis. Stat. § 32.09 (6) (e)

Internal vs. External Circuity

• Internal: Circulation within site disrupted- Compensable

• External: Access to the site less convenient- Not Compensable

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External/Internal Example

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Change of Grade

“Damages to property abutting highway right-of-way due to change of grade where accompanied by a taking of land.”

- Wis. Stat. § 32.09 (6) (f)

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Grade Change/Access Change Example Continued

• Roadway expansion would result in driveway slope 20% +/-.

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MEASURING ACCESS CHANGE DAMAGES

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Sales Comparison Approach

• Preferred Method for Estimating Damages

• “As a basis for determining value, a commission in condemnation or a court may consider the price and other terms and circumstances of any good faith sale or contract to sell and purchase comparable property. “ Wi. Stat. § 32.09 (1m)

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Sales Comparison Approach Use for Quantifying Damages

• Change in Highest/Best Use?– New Comparables for After Condition HBU

• Retain HBU, Change Intensity?– New Comparables or Change to Adjustments

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Cost Approach

• How used to calculate damages?1. Identify the functional problem resulting from

a) Acquisition of Access Rights

b) Change of Grade

c) Internal Circuity of Travel

2. Quantify the damage “as if” uncured Before Value – After Value

3. Estimate contributory value of improvement rendered obsolete.

4. Cost to cure– partial or total mitigation of damages.

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Special Properties/Special Impacts

• On-Site Circulation an Aspect of Specialized Design

• Site Improvements Built to Direct Traffic

• Interior Building Layout Oriented to Outside Circulation Pattern

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Examples of Circulation-Dependent Uses

• Fast Food Restaurants - drive-up windows• Banks, Credit Unions – drive- up windows• Dry Cleaners - drive-up windows• Gas Stations – pump islands• Medical Building – emergency/disabled entry• Freight Terminals – docks• Warehouses – docks• Grain Elevators, Asphalt Plants, Cement

Terminals, Etc.

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Aids to Judging Industry Standards--Direct Observation

• Do What Appraisers Do Best– Survey the Local Market– Drive Around Town– Aerial Photos

• How Are Comparable Sites Accessed? How Is Their Internal Circulation Configured?

• The Subject’s Own Competitors Set the Most Relevant Standard

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What We Covered Today

• Access rights vs. access points• The varieties of prior access restrictions and

statutory access controls• Information sources for before access rights• Other “access-related” compensable changes• Use of valuation approaches re access

problems• Special use properties/special problems

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THANK YOU!