Welcome to the International Right of Way Association

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Welcome to the International Right of Way
AssociationsCourse 700Introduction to
Property Management
700.PPT.R2.2015.06.09.0.0
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• Introductions
• Who we are
• What we do
• Where we do it
• How long weve been doing it
• Our goals for the course...

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Objectives (1) At the conclusion of the
course,you will be able to

• Establish, classify and maintain a property
  inventory
• Develop simplified management policiesand
  procedures
• Establish monitoring schedules

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Objectives (2) At the conclusion of the
course,you will be able to

• Identify and evaluate risks, hazards and
  liabilities
• Develop a property management and disposal plan
• Profitably dispose of property or property rights

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Objectives (3) At the conclusion of the
course,you will be able to

• Recognize the advantages and disadvantages of
  secondary and joint use agreements
• Effectively manage a maintenance and repair
  program

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Housekeeping
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Schedule (1)

• 800 - 830 Introductions, Etc.
• 830 - 930 General Real Estate Concepts
• 930 - 1130 Property Inventory
• 1130 - 1200 Inventory Classifications
• 100 - 245 Policies and Procedures
  Development
• 300 - 445 Inspections and Encroachment
  Monitoring

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Schedule (2)

• 445 - 500 Recap Day One
• 800 - 815 Recap Day One/Introduce Day Two
• 815 - 915 Risks, Hazards and Liabilities
• 915 - 1045 Lease, Sell or Hold Decisions
• 1045 - 1200 Sale or Lease of Surplus Property
  or Property Rights
• 100 - 200 Secondary and Joint Uses

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Schedule (3)

• 215 - 315 Improvement Maintenance and
  Repair
• 315 - 345 Summary and Review
• 345 - 500 Exam

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Terms (1)
Property Management is a process of maintaining
and creating value in real property, which is
consistent with the owners objectives. Asset
Management is the comprehensive integrated
management plan for all real estate assets.
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Terms (2)
Real estate is the land and appurtenances to the
land. Real property is all the rights, interests
and benefits inherent in the ownership of the
real estate. It is the bundle of rights.
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Terms (3)
Fee simple is an estate without limitations with
the exception of government powers. The
government powers are eminent domain, taxation,
police power and escheat. A lease is a
contract that transfers the owners right of
possession and use of the real estate to another
for a specified time period and on the payment of
a consideration, usually rent.
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Terms (4)
An easement is a non-possessory interest one has
in the property of another for a specific
purpose. A life estate tenant is entitled to
certain real estate uses and enjoyments for life.
At death, all right, title and interest in the
property pass to the remainder interest.
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Terms (5)
Generally, a right of way is the right of
aperson or entity to use the land of anotherin
a particular line. A permit, usually issued by
government entities, grants permission to occupy
within the rightof way. A permit is a form of
license. A license is a personal privilege to do
some act on the property of another. A license
is not transferable.
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Terms (6)
Highest and best use is the reasonably probable
and legal use that is physically possible,
appropriately supported and financially feasible,
and that results inthe highest value.
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Terms (7)
Market value is the type of value mostoften
sought in real estate valuation. Value in use is
a value of a specific property to a specific
person or entity.
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Impacts

• Regulatory
• Locational
• Environmental

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Team
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Terms (8)
A property inventory is a database of the
organizations properties with specific
information on each parcel.
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Property Inventory

• Acquisition information
• Property characteristics
• Maps, photographs, videos
• Agency uses
• Secondary and joint uses
• Exclusive use by others
• Inspection schedules and records
• Other

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Internal Reports

• Planning
• Design
• Real Estate
• Construction
• Maintenance
• Management
• Other

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External Reports

• Other agencies
• Public
• Press
• Permittees/Lessees/Purchasers
• Other

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Criteria (1)

• Must
• Be user friendly and simple
• Be compatible
• Contain cross-references
• Be searchable
• Increase staff efficiency
• Reduce response time

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Criteria (2)

• Must
• Produce hard copies
• Protect original documents
• Provide for off-site storage
• Allow for growth
• Be cost effective

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Inventory Classifications

• Operating property
• Property for future use
• Property surplus
• Other classifications

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Terms (9)
A policy is a statement of the intention to reach
a specific (property management)
goal. Procedures are the operational stepsto
make the policy a realty. Task assignments
clarify who will complete each procedure.
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Mission Statements
Connecticut Department of Transportation to
provide a safe, efficient, and cost-effective
transportation system that meets the mobility
needs of its users. Duke Energy to create
superior and sustainablevalue for our customers,
employees, communities andinvestors through the
production, delivery and sale of energy and
energy services. Sask Water To provide
competitively-priced, customer-focused, quality
water and wastewater services.
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Goal Statement
To manage and dispose of property on terms
beneficial to the organization.
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Encroachment Correction

• Removal
• Legalization

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Recap Day One
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Recap Day OneIntroduce Day Two
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Terms (10)
Risk management is the control of loss, which
threatens the organization and its
holdings. Hazard protection is the control or
eliminationof sources of danger or chance
events. Liability reduction is the limitation of
a legal or equity obligation.
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Decision Considerations

• Organizations mission
• Purpose of the acquisition
• Current property use
• Probable future use
• Costs

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now empty 53.1 million station...
more than 900,000 a year in estimated operating
expenses...
pay 50,000a year...
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Lease or Sell or Hold?

• Highest and best use
• Operational needs
• Safety concerns
• Public interests

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Procedures for Sale (1)

• Step No. 1 Package
• Step No. 2 Notify and Approval (internal)
• Step No. 3 Notify and Approval (external)
• Step No. 4 To whom?
• Step No. 5 Appraisal report
• Step No. 6 Sale method

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Iowa DOTs Property Management web page.
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Procedures for Sale (2)

• Step No. 7 Evaluate offers
• Step No. 8 Final disposal package
• Step No. 9 Transfer
• Step No. 10 Update inventory

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Leasing Program
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Terms (11)
Abandonment is intentionally and permanently
relinquishing the property. Mere non-use is not
abandonment. Vacation is a governmental process
whereby the government gives up its dedicated
public rights.
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Terms (12)
Secondary use is organization property that the
organization allows others to use. Joint use is
two or more organizations jointly using their
commonly owned property.
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Terms (13)
Airspace is the space located above and/or below
a transportation facility's horizontal limits of
the approved right of way or project
boundaries. Air rights are the real property
interests defined by agreement and conveyed by
permit, lease or deed for the use of airspace.
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Maintenance and Repair

• Minor Maintenance and Repair
• Major Maintenance and Repair

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Objectives (1) Now, you are able to

• Establish, classify and maintain a property
  inventory
• Develop simplified management policies and
  procedures
• Establish monitoring schedules

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Objectives (2) Now, you are able to

• Identify and evaluate risks, hazards and
  liabilities
• Develop a property managementand disposal plan
• Profitably dispose of property orproperty rights

46
Objectives (3) Now, you are able to

• Recognize the advantages and disadvantages of
  secondary andjoint use agreements
• Effectively manage a maintenanceand repair
  program

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Thank you!