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INFORMATION FOR BUSINESSES, FARMS,
AND NONPROFIT ORGANIZATIONS
Moving Cost Reimbursement
Businesses, Farms, and Nonprofit Organizations Owners or tenants may be paid on the basis of actual reasonable moving costs and related expenses, or, under certain circumstances, a fixed payment.A. Actual reasonable moving expenses may be paid when the move is performed by a professional mover, or if you move yourself. Related expenses, such as personal property losses, expenses in finding a replacement site, and reestablishment expenses, may also be reimbursable. B. or, you may be eligible for a fixed payment of not less than $1,000 nor more than $20,000 in lieu of the payments listed in A above. The fixed payment is based on a two year average of the annual net earnings of a business or farm operation. To qualify for a fixed payment, certain conditions must be met. If you represent a nonprofit organization, this payment is computed differently. Contact your relocation counselor for more details.
Types of Payments Actual Reasonable Moving Costs Including: . Personal Property Losses
. Expenses in Finding a Replacement Location
. Reestablishment Expenses ORFixed Payment in Lieu of Moving Costs, Etc. From: . $1,000 to $20,000 Equal to Average Annual Net Earnings
Actual Cost Move: You may be paid the actual, reasonable and necessary costs of your move when the move is performed by a professional mover or when you elect to move yourself under this option, however, all of your moving costs must be supported by paid receipts or other evidence of expenses incurred. In addition to the transportation costs of your personal property, certain other expenses may also be reimbursable, such as packing, crating, unpacking and uncrating, and the disconnecting, dismantling, removing, reassembling, and reinstalling relocted machinery, equipment and other personal property. Other expenses such as professional services necessary for planning and carrying out the move, temporary storage costs, and the cost of licenses, permits and cerifications may also be reimbursable. This is not intended to be an all inclusive list of moving related expenses. Your relocation counselor will provide you with a complete explanation of reimbursable expenses.
Estimated Cost Move: If you agree to take full responsibility for all or part of the move of your business or farm operation, the Agency may approve a payment not to exceed the lower of two acceptable bids or estimates obtained by the Agency from qualified moving firms, moving consultants, or qualified Agency staff employee. A low cost or uncomplicated move may be based on a single bid or estimate at the Agency's discretion. The advantage of this moving option is the fact that it relieves the displaced business or farm operator from documenting all moving expenses. The agency may make the payment without additional documentation as long as the payment is limited to the amount of the lowest acceptable bid or estimate.
Direct Losses of Tangible Personal PopertyDisplaced businesses, farms, and nonprofit organizations may be eligible for a payment for the actual direct loss of tangible personal property which is incurred as a result of the move or discontinuance of the operation. This payment will be based upon the value of the item for continued use a the displacement site less the proceeds from its sale or the estimated cost of moving the item. whicever is the lesser. Your relocation counselor will explain this procedure in detail if you are faced with this problem. Searching Expenses for Replacement PropertyDisplaced businesses, farms, and nonprofit orgaizations are entitled to reimbursement for actual reasonable expenses incured in searching for a replacement property, not to exceed $1,000. Expenses may include transportation, meals, and lodging when away from home; the reasonable value of the time spent during the search, fees paid to real estate agents, brokers, or consultants; and other expenses determined to be reasonable and necessary by the acquiring agency.
Reestablishment ExpensesA small business, farm or nonprofit organization may be eligible for a payment, not to exceed $10,000, for expenses actually incurred in relocating and reestablishing the enterprise at a replacement site. To qualify, the business, farm, or nonprofit organization must have not more than 500 employees working at the site being affected who will be displaced by a program or project. Reestablishment expenses may include, but are not limited to, the following: 1. Repairs or improvemnts to the replacement real property required by Federal, State, or local laws, codes, or ordinances. 2. Modifications to the replacement real property to make the structure(s) suitable for the business operation. 3. Installation of exterior advertising signs. 4. The cost of installing utilities from the right-of-way line to the structure(s) or improvements on the replacement site. 5. Redecoration or replacement such as painting, wallpapering, panelling and carpeting when requied by the condition of the replacement site. 6. The cost of license fees and permits when not covered as a moving expense. 7. Marketing studies, feasibility surveys and soil testing. 8. Advertising the new business location. 9. Professional real estate services needed for the purchase or lease of a replacement site. 10. The estimated increased costs of operation at the replacement side during the first two years for items such as:
. Leasse or rental charges,
. Personal or real property taxes,
. Insurance premiums, and,
. Utility charges (excluding impact fees). 11. One time asessments or impact fees for anticipated heavy utility usage. 12. Other items that the Agency considers essential for the reestablishment of the business or farm. Fixed Payment (In Lieu)
Displaced businesses, farms, and nonprofit organizations may be eligible for a fixed payment in lieu of (in place of) actual moving expenses, personal property losses, searching expense, and reestablishment expenses. The fixed payment may not be less than $1,000, or more than $20,000. For a business to be eligible for a fixed payment, the Agency must determine the following: 1. The business owns or rents personal property that must be moved due to the displacement. 2. The business cannot be relocated without a substantial loss of its existing patronage. 3. The business is not part of a commercial enterprise having more than three other businesses engaged in the same or similar activity which are under the same ownership and are not being displaced by the Agency. 4. The business contributed materially to the income of the displaced business operator during the two taxable years prior to displacement. Any business operation that is engaged solely in the rental of space to others is not eligible for a fixed payment. This ncludes the rental of space for residential or business purposes. Eligibiliity requirements for farms and nonprofit organizations are slightly different than business rquirements. If you are interesed in a fixed payment please consult your relocation counselor for additional information if you are being displaced from a farm or you represent a nonprofit organization.
The Computation of Your Fixed Payment (In Lieu)The fixed payment for a displaced business or farm is based upon the average annual net earnings of the operation for the two taxable years immediately preceeding the taxable year in which it was displaced.* 1988 1989 1990
Annual Annual Year
Net Net Displaced
Earnings Earnings
$16,500 $18,500
AVERAGE:
$16,500 + $18,500 = $35,000 divided by 2 = $17,500
$17,500 = Fixed Payment The computatin for nonprofit organizations differs in that the payment is computed on the basis of average annual gross revenues less administrative expenses for the two year period specified above. You must provide the Agency with proof of net earnings to support your claim. Proof of net earnings can be documented by income tax returns, certified financial statements, or other reasonable evidence acceptable to the Agency.
*Or that two year Period deemed more representative by the Agency.
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