welcome to the international right of way association’s course 207 practical negotiations for...

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Welcome to the International Right of Way

Association’s

Course 207Practical Negotiations for

United States Federal and Federally Assisted Projects

207-PTT – Revision 2 – 09.04.2014.USA

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IntroductionsWho we are…What we do…

Where we do it…How long we’ve been doing it…

Our goals for the course...

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Objectives At the conclusion of the two days,

you will be able to...

• Demonstrate a basic knowledge of the requirements that apply to negotiators for Federal and federally assisted projects under the Uniform Act.

• Develop an understanding of negotiating styles.

• Use practical approaches and tips to improveright of way acquisition settlement rates.

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Housekeeping

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ScheduleDay One (1)

8:00 - 8:30 Introductions, Etc.8:30 - 9:30 Federal Laws and Regulations9:30 - 11:15 Acquisition Policies (General)11:15 - 12:00 Acquisition Policies (Negotiations)1:00 - 3:00 Acquisition Policies (Negotiations)3:00 - 4:00 “More” Negotiation Processes4:00 - 4:30 Recap Day One

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ScheduleDay Two (2)

8:00 - 8:30 Recap 8:30 - 9:00 Condemnation9:15 - 10:15 Some Common Issues10:30 - 11:45 Conflict Management Styles12:34 - 2:15 Characteristics of the Successful

Negotiator2:30 - 3:30 Case Study3:30 – 4:00 Summary and Review4:00 – 5:00 Exam

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Acquisition

Acquisition is the process of acquiring real property and includes appraisal, appraisal

review, establishing just compensation, negotiation, administrative and legal

settlements and condemnation.

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Laws and RegulationsUniform Relocation Assistance and Real Property Acquisition Act of 1970, as amended

• Title 49 (Transportation) CRF Part 24

• Title 23 (Highways) CFR Part 710

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The Uniform Act

Title I General ProvisionsTitle II Uniform Relocation AssistanceTitle III Uniform Real Property

Acquisition Policy

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The Uniform Act• Owners of real property to be acquired for federal

and federally assisted projects are treated fairly and consistently, encourage and expedite acquisition by agreement, minimize litigation, relieve court congestion, promote public confidence in federal and federally assisted land acquisition programs.

• People displaced are treated fairly, consistently,

and equitably. • Agencies implement the Uniform Act regulations

efficiently and cost effectively..

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Basic Policies (1)

Expeditious acquisitionNotice to owner

Appraisal and invitation to the ownerAppraisal waiver

Establishment and offer of just compensationSummary statement

Basic negotiation procedures

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Basic Policies (2)

Updating offer of just compensationCoercive action

Administrative settlementPayment before taking possession

Uneconomic remnantInverse condemnation

Fair rentalConflict of interest

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Basic Policies (3)

Expeditious acquisitionNotice to owner

Appraisal and invitation to the ownerAppraisal waiver

Establishment and offer of just compensationSummary statement

Basic negotiation procedures

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Basic Policies (4)


SettlementsPayment before taking possession



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Settlements

Original just compensation offer Updated just compensation offer

Administrative settlement Alternate dispute resolution (Mediation)

Legal settlement Court settlement

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Basic Policies (5)


SettlementsPayment before taking possession



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General Requirements (1)

Adequacy of real property interest

Less than full fee interest

Influence of the project on just compensation

Appraisal and just compensation for a tenantowned improvement

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General Requirements (2)

DonationsOwner retention of improvements

Expenses incidental to transferCertain litigation expenses

Right to occupyHardship and protective buying

Recordkeeping and reports

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Reports

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Day One Recap

• Demonstrate a basic knowledge of the requirements that apply to negotiators for Federal and federally assisted projects under the Uniform Act

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Day Two• Demonstrate a basic knowledge of the requirements that apply to negotiators for Federal and federally assisted projects under the Uniform Act.

• Develop an understanding of individual negotiating styles.

• Use practical approaches and tips to improve right of way acquisition settlement rates.

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Eminent Domain and Condemnation

Eminent domain is the right of the government to take private property for public use on the payment of just compensation.

Condemnation is the process by which the power of eminent domain is implemented.

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Some Common IssuesAppraisals

Attorneys

Authority

Compensation

Condemnation

Property Owners

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Appraisal Issues (1)

1. Do your agencies provide the owner with a copy of the appraisal report?

2. Do your agencies provide the owner with a copy of the waiver valuation?

3. If your agency provides a copy of the appraisal what does your agency do if the reviewed

amount is less than the appraised amount?

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Appraisal Issues (2)

4. If your agency does not provide a copy of the appraisal report what does your agency do if the owner asks for a copy?

5. Do you think that not providing the appraisal report might affect the trust relationship with

the property owner?

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Attorney Issues (1)

1. How do you answer the owner’s question: “Do I need an attorney?”

2. What do you do if the owner names his/her attorney and you know that the attorney is ineffective?

3. What do you do if the owner’s attorney is not serving the client well?

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Attorney Issues (2)

4. What do you when the owner, who is represented by an attorney, contacts you with “just one question” or for a clarification of something his/her attorney said?

5. Are you less or more apt to increase an offer if an attorney is involved? Why?

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Authority Issues (1)

1. How much authority do you have to settle above the initial offer?

2. What do you do when the owner wants to negotiate with your supervisor?

3. Is there a point in the acquisition process when your authority passes to another person?

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Authority Issues (2)

4. Are there times when you decide to pass the problem to your supervisor?

5. Do you ever use the ploy “I need to talk to my supervisor about this settlement.” (When you don’t)?

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Compensation Issues (1)

1. What do you do if the owner asks for more money than you think is warranted; but not too,

too much more?

2. What do you do if you think the compensation to the owner is too low?

3. Assume that you are ready to close and the owner wants “one more thing”?

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4. How do you feel when your supervisor needlessly “caves in” to an owner’s demands when you have been holding firm?

5. How do you handle recurring property owners (e.g., utility companies, railroads, large landholders, etc.) who know the system as well as you do and always want more or who prefer to negotiate with your supervisor or attorney?

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6. How do you secure an increase in the compensation ?

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Condemnation Issues (1)

1. How do you know when it is “time” to start condemnation?

2. How hard does your agency work to avoid condemnation?

3. Why does your agency condemn (e.g., money divergence, title issues)?

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Condemnation Issues (2)

4. How do you raise the subject of condemnation with the owner without being coercive?

5. Does your agency ever “win” a compensation claim?

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Property Owner Issues (1)

1. How do you deal with an owner who is hurting him/herself in the negotiations (e.g., obstinate, just doesn’t grasp the situation, is in conflict with another owner)?

2. How do you deal with an owner who won’t cooperate?

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Property Owner Issues (2)

3. How do you deal with an owner who demands way too much compensation and your agency would prefer to settle and not condemn?

4. What do you do when the negotiations reach an impasse?

5. What do you do when the owner is unable to make a decision?

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Conflict

Conflict is a disagreement or collision(between people or among groups)in interests, ideas, beliefs, opinions, impulses, etc. with an emphasis on

process rather than on outcome. The conflict can be perceived of as friendly or

hostile or gradations in between.

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Conflict Management Styles

Avoidance Accommodation

CompetitionCompromiseIntegration

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Avoidance

Differences are too minor or too great

to resolve. If resolution is attempted,

relationships might be adversely affected.

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Accommodation

Relationship and harmony

must not be jeopardized.

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CompetitionNeed to prove superiority.

Need to satisfy own needs.

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Compromise

No one person or one idea is ideal.

There are several ways to do anything.

A person needs to give to get.

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IntegrationWhen both parties communicate openly,

a mutually beneficial solution will be found without either person making a

major concession.

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Conflict

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Conflict Management Styles

Avoidance Accommodation

CompetitionCompromiseIntegration

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Personality StylesExtrovert

Introvert

Pragmatist

Idealist

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Characteristics of the Successful Negotiator (1)

CredibilityCourageEmpathy

Integrity/EthicsPatience

Communication Skills

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Maintaining RelationshipsShared control

EqualitySimilarities

Trust“Liking”Openness

InterdependenceSelf-worthNo jargon

Understanding and giving feedback

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Characteristics of the Successful Negotiator (2)

Motivation… is the psychological characteristics that

arouse people to act.

External Internal

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Reactive v. Proactive

Reactive ProactiveThere’s nothing I can do. Let’s look at what we can do.They won’t allow that. How can I convince my

agency that it is the right thing to do?

I can’t. I can.I must. I want to.If only. I will.

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Case Study

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Objectives Now, you should be able to...

• Demonstrate a basic knowledge of the requirements that apply to negotiators for Federal and federally assisted projects under the Uniform Act.

• Understand individual negotiating styles.

• Use practical approaches and tips to improve right of way acquisition settlement rates.

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Thank you

welcome to the international right of way association’s course 207 practical negotiations for...

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