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Section 12: Relocation Procedures for TxDOT Leasebacks

TxDOT’s Leaseback Program involves occasions when it is mutually beneficial for TxDOT and non-residential displacees to enter into a lease agreement allowing continued operation of a business, farm operation, or NPO on TxDOT-acquired ROW. Such agreements are for a specific time period. The displacee retains all entitlements of the Relocation Assistance Program, subject to the following guidelines.

TxDOT’s relocation agent obtains a complete inventory of personalty owned by the displaced business, farm operation, or NPO that must be moved. The inventory must be made within 10 days of TxDOT taking possession of the property. For negotiated parcels, possession is on the date of closing. For parcels acquired through condemnation, possession is on the date the Commissioners’ Award is deposited into the Court Registry.

TxDOT’s relocation agent obtains at least two commercial moving estimates to move the personalty as of the date of the inventory, up to the maximum 50-mile limit allowed under Public Law 91-646. The lesser estimate establishes the maximum moving expense for which the displacee is eligible for personalty relocation, upon leaseback period termination.

Upon leaseback period termination, the displacee may choose to move commercially by the actual cost, negotiated self-move, or alternate self-move method with all expenditures properly documented. For any method chosen, the maximum allowable TxDOT reimbursement is represented by the lesser of the two commercial estimates. If the personalty inventory is significantly reduced, or the distance to the replacement site is less than originally estimated, reimbursement may be less than the predetermined amount. Actual paid receipts or additional commercial moving estimates made before the relocation are required for documentation of this lesser amount.

When a TxDOT Leaseback Agreement supersedes a previously established vacating date, TxDOT will establish a new vacating date in writing. A vacating notice will be given at least 90 days before the Leaseback Agreement termination date, and the new vacating date will not be less than 30 days after the agreement termination date. This allows the displacee 30 days to vacate the property after operations cease.

Any departure from these procedures must be submitted to the ROW Program Office for approval, along with necessary documentation, before any required action date. This chapter does not restrict any relocation entitlement, but establishes procedures to use in leaseback situations to prevent TxDOT overpayment and assist the displacee in an equitable manner.

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