When the government takes property for expanding roads, property owners must know their legal rights. Why should convenience store owners take particular note? Location. Because most convenience stores are located along high-traffic roads, they are often subject to road-widening projects that result in eminent domain takings. Because of this risk, convenience store owners must know their eminent domain rights to ensure they receive full compensation.
The Triggering Effect
When you think of "eminent domain" you probably think of the government taking all of your property. However, most eminent domain cases involving convenience stores are "partial takings," with the government taking only a portion of your property, such as a strip taking or destroying a driveway. In such instances, the government's taking could significantly affect access, parking space availability or internal traffic flow.
Convenience stores profit from being convenient. The ease with which customers can enter, maneuver within and exit your property is crucial to your success. For example, suppose the government takes a small section of your property that limits access to your gasoline pumps. This seemingly small inconvenience results in you losing moneynot only gas pump sales but also convenience store sales from gas customers. This is a triggering effect, where a small taking triggers substantial damages to your business.
The Government Versus Local Ordinances
Convenience store owners are taking a gamble if they accept the government's initial purchase offer. The government's first offer is typically low because the government rarely knows how your business operates. Therefore, it is important to have an eminent domain attorney evaluate your case. Eminent domain attorneys work with the owners, appraisers, market researchers, engineers, land planners and certified public accountants to comprehensively assess the damage to a business from the taking. Having experts on your side will also ensure that if there is a taking, proposed modifications to the property comply with local government regulations. This is important because the U.S. Department of Transportation (DOT) cannot dictate or control local government. Often, a taking authority assumes that a city-required setback or landscape buffer can be waived. For example, the DOT may premise its offer on the implementation of a five-foot landscape buffer, when in reality the city requires 10 feet. When the 10-foot buffer is applied, it causes a loss of two additional parking spaces, which substantially increases the damage to your business. If an owner accepts the DOT offer without checking, the DOT will close the case and leave you to resolve the noncompliance issues with the city.
Partial Taking, Significant Effect
States vary on whether they pay expert's and attorney's fees in eminent domain cases. Regardless, it is worth having experts evaluate a taking's impact to your property. Consider a case in Vero Beach, Florida, involving the Best Car Wash on U.S. Route 1. Due to a road widening, the Florida Department of Transportation (FDOT) took a small strip along the front of the property, offering the owners $76,000 in compensation.
Even though only a small strip of land was taken, the taking substantially affected the car wash. After the taking, large cars could not turn out of the main carwash bay and access the convenience store. The FOOT believed the owners could obtain a variance from city setback requirements so there would be more room to make the turn. However, under the city code, the owners had no legal basis to obtain a variance. After the issue was brought to light, FDOT decided to provide an additional driveway to avoid paying $1 million in damages because the carwash could not operate as FDOT planned. The owners chose the additional driveway over the money because it allowed them to stay in business.
Window of Opportunity
Evaluating eminent domain cases is important because a convenience store owner has only one chance to capture the damages from the taking. When an owner settles, it is a done deal even if the owner later realizes the damage is worse than originally thought. It is important to identify an eminent domain attorney so you will be ready if faced with a government taking. By knowing your eminent domain rights, you can ensure you obtain full compensation under the law.
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