Agenda - Council - 06/12/2001 - Laserfiche WebLink

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I I i$ R_EPLACEMENT SITE SEARCH COSTS I I I I I I I I I I I The Uniform Relocation Act regnlations state that a business may be repaid 'for the costs it incurred to search for a replacement site, to a maximum payment of $1,000.00. Claims for site search compensation generally consist of requests to compensate the business for the time its owner or representatives spent in looking for a new location. Oftentimes, the documentation for replacement site searching is a signed statement from the business owner summarizing the hours spent over a specified time period and listing the locations considered as possible replacement sites. Also included in the owner' searching statement is the hourly rate being claimed by the business as compensation for its representative's time. If applicable, site search claim may also include requests for reimbursement Of reasonable and necessary travel expenses such as automobile mileage, Meals, and lodging required in the replacement site search process. Additionally, if a "finders" fee is paid to a professional such as a real estate broker to help in the site search, this can be included in the claim for replacement site search costs. The two primary factors in a typical site search claim, then, which require an evaluation for reasonableness, are the number of hours expended by the business representatives and The Hourly rate claimed for the time. Even when a business has an idea of the general area to which it would like to move, the site search task can still be a time-consuming one. A business could spend time looking in the newspaper for available sites, contact realtors about listings, and also visually search a neighborhood for available space. A number of locations may then be physically viewed and after such viewing, the business representatives may meet to discuss the merits of the sites. After the site search has narrowed to a particular location, the business must begin negotiations for the space with the owner or rental agent. The site search tasks are generally conducted by the owner of a business or, in the case of a larger concern, by employees involved in the uppe? management of the company. Detenmning the new location of a business's operation is a major decision for any company and is one that cannot by lightly made. Therefore, the rate charged for the business's site search representatives is generally substantial. The rate is based on the value of the person's time to the company, not on-the net received by the actual' representative, as it is the business, which is losing the use of that representative for other activities during the site search efforts. In most cases, a rate of at least $25.00 per hour can be justified for a small business owner, since that person typically does not receive a "salary". This hourly rate is considered reasonable for reimbursement to an owner as site search compensation without documentation. The following information summarizes the number of hours spent by the claimant business in its site search efforts, the hourly rate being claimed for the time, any other eligible cost, and the total amount requested for its site search payment. -107-