The state’s plan to relocate a portion of Route 195 is expected to create a more efficient and safe highway through Providence, but there will be some bumps in the road at first – about 80 of them. There is the five-story mill building that Thurston Manufacturing and its countless tons of machinery fill. There is One Allens Avenue, which has 45 business tenants. There is the Corp Brothers Inc. building and its owners who have enjoyed quick access to the highway for decades.
Not since the construction of Route 95 in the 1960s has Rhode Island had to acquire so many properties – 28 acres worth – and relocate so many companies. The Rhode Island Department of Transportation’s staff is now gearing up for months of negotiations and for their share of lawsuits, which are common anytime eminent domain is a possibility.
Beyond Cash Donations: How New Forms of Giving Are Transforming Not-for-Profit Accounting
Evolving Funding Landscape for Not-for-Profits Not-for-profit organizations are being asked to do more with less,…
Learn More
Meanwhile, business owners are coming up with their game plan.
”I’m going to hold up here with some guns and a supply of food, and maybe I should weld the door shut,” Al Mandell, owner of India Point Service and Repair, said jokingly. “Seriously though its going to be difficult finding a location I can afford and close enough to my customer base.”
Mandell has being doing business at 614 South Main St. for four years at a three-level historic building, originally used as a fire station.
He added that he was always aware of the state’s plans to demolish the property to build the highway, but it doesn’t make a transition any easier. “Especially in this business when you build faith between you and your customer it will be tough to lose a location people are used to going to,” he said.
Highway officials say they sympathize with the business owners impacted by the move and promise to do as much as possible to make the transition as smooth as possible.
”We have strict federal procedures that we will follow to the letter of the law in making sure every landowner and tenant is treated fairly. There will be nothing arbitrary and no favoritism,” said Leonard F. Clingham, the DOT’s deputy director.
Clingham is part of a DOT team that includes experts in a variety of areas, ranging from engineering to public relations and real estate to law. During the process the state will also work with real estate brokerage firms and real estate appraisers to help buy up the property.
In total there are an estimated 70 different properties the state needs. Most of them are vacant or used as parking lots, but there are more than 20 buildings that must be demolished. Those buildings are home to more than 80 businesses and four residential tenants.
The DOT estimates that of the $320 million anticipated to complete the project, $25 million will be needed to buy property and another $2.5 million to relocate tenants.
The land is needed to build a 2 +-mile stretch of Route 195 to replace the existing highway bridges, which DOT officials say have been decaying and would face weight limitations within the next 10 years if not replaced.
The new structure will run parallel to the hurricane barrier, a half-mile south of the existing portion of highway. The project, estimated to take 10 years to complete, will not only provide a sound roadway, but would eliminate sharp curves and a number of weaves into merging traffic.
The DOT has already started serious discussions with a handful of property owners, marking the start of what is expected to be more than a year and a half of purchasing.
The state is responsible for paying market value for a property, helping the landowner find another location and reimbursing him or her for moving costs.
Ann Hollands, the DOT’s real estate administrator, said the Federal Uniform Assistance and Real Property Acquisition Policies Act of 1970 has given landowners more power when the government wants to take their property.
”The Route 95 project was prior to the Uniform Act and in that case I don’t think it was as nice for a property owner. They would just buy your property,” Hollands said. “The federal government made changes so there would be an equitable solution for property owners and businesses who will have their home or livelihood impacted.”
The first step in the process for the state was to notify the landowners involved. This has been done already. Next DOT staff meets with the owners to explain their rights under the Uniform Act law. Then the DOT takes inventory of everything that is in the properties to get an idea of how much it will cost to move the tenant.
Hollands said the appraisal of the property is next and then an appraisal review is called to ensure consistency in the rules and regulations for determining a fair market value. The next step is the negotiation, of sorts.
”The word ‘negotiation’ in this process is a misnomer, because it gives the perception that there is a lot of give and take. There isn’t,” Hollands said. “What we do in Rhode Island is called a single offer. Does that mean that is it? No. There are occasions when something was missed on the appraisal and we will take that into account.”
And if the state doesn’t budge, it’s off to court.
Hollands said she expects there will be lawsuits related to the acquisition of property for the Route 195 project. She stressed that under the law the state will first take over the property in question and fight the court battle later, curbing any delays in the construction project.
Scott T. Spear, a partner at the law firm of Blish & Cavanagh in Providence, said the process of determining value in the state is fairly accurate, but said there are always issues that the landowner can disagree on.
”They have the opportunity through the law to challenge the value and offer expert witnesses,” he said. “There are often value issues that require the use of creative appraisal techniques. It may be a method of calculating value. From an accounting standpoint they could introduce new theories of worth.”
Spear said an often difficult aspect of placing value on property involves predicting the future value based on the impact the new development would have had on the land.
”In the case of the highway relocation nobody really knows what the impact would be to the real estate values. It may be that it creates a boom in the real estate market in the area that significantly increases values or it may be the net result will be minimal,” Spears said.
Hollands said the process doesn’t end with acquiring property, but gets even more labor-intensive in finding a place for the businesses to relocate and actually moving the business.
”The relocation can be difficult, especially in such a corridor with an incredible diversity of uses: industrial, heavy industrial, commercial and some office,” Hollands said.
The state will need to find available space, ranging from an artist’s loft to multi-level buildings for manufacturing, and pay moving expenses.
The DOT’s track record in finding alternative locations for businesses is very good, but some companies have unique situations that make it difficult, Hollands said.
She pointed to Corp Brothers Inc., a supplier of industrial and medical gas and welding equipment, as one company in need of a specialized location that permits that type of use.
”I don’t think it is a matter of us making a company’s plan for a lifetime. I think most of the companies have alternative places in mind. I think there is property available out there for them,” Hollands said.
Charles T. Francis, president of the Providence office of CB Richard Ellis, a national commercial real estate company, agreed. He said although the commercial market is tight in Providence there should be sufficient space to accommodate most of the businesses.
In fact, his company helped find a new home for Rawcliffe Corp., whose location at 155 Public St. is on the path of the new highway. The company, which makes pewter products, is relocating to the Huntington Industrial Park off Route 10 in Providence.
Francis said the sooner other businesses start finding alternative locations the better.
”The problem with being relocated like this, forced out under time constraints, you’re not allowed to negotiate as much as you would like to in the open market if you have to move fast,” he said.
Some companies are taking a wait and see approach to the project.
Joe Little, manager of Old Harbor Framing and Art Storage at One Allens Avenue, said he is waiting until it is official.
”Let’s put it this way, my first summer here I framed the plans for the new highway for an engineer working on (the project). That was five years ago,” Little said.
Little said his 1,000-square-foot shop will be difficult to replace in terms of location. The company also owns an art gallery at Corliss Landing just down the street. Also, the quick access to Route 95 and Route 195 has also been a plus for customers.
Administrators at the DOT don’t expect it to be too challenging to place smaller companies like Little’s and estimate that hard-to-place companies, like Corp Brothers, could take as long as six to nine months to relocate. But, Hollands stressed that the time a company is not functioning will be minimal.
”I don’t see a company being down more than a week. Whether it is a day or a week depends on the type of equipment that will be moved,” she said. “They will be operating out of their existing location until a new one is found and is ready to go.”
Under the Uniform Act, the state will be responsible for all reasonable moving costs for a company, which Hollands said can range from $10,000 to $500,000. The state is also responsible for a limited number of incidental expenses to exceed no more than $10,000.
”There is a very strict requirement of what are incidental expenses. For example, we will buy new stationery, letterhead and new business cards. Also, if you have certain requirements for power we will have the building retrofitted for your power needs,” she said. “But we won’t pay for lawyer fees if you need one for zoning purposes, for example.”
Hollands said the law that helps make sure landowners don’t get ripped off by the state also ensures the same doesn’t happen to taxpayers.
”People will get fair market price for their property and reasonable costs for moving. They should not expect to make anything beyond that,” she added.
