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ARTICLE · 15 FEBRUARY 2024

Condemning Replacement Or Substitute Property To Mitigate Damages

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A public agency's acquisition of private property can sometimes trigger significant severance damages due to eliminating access, cutting off utility service, or taking a substantial portion of a property's parking.

United StatesReal Estate and Construction

A public agency's acquisition of private property can sometimes trigger significant severance damages due to eliminating access, cutting off utility service, or taking a substantial portion of a property's parking. As agencies look to get more creative in minimizing exposure to large damages claims, they will sometimes offer up mitigation alternatives, such as providing an alternative access, or new utility service, or replacement parking, with such rights being granted from an adjacent or neighboring property. These mitigation solutions are often a win-win for property owners and public agencies, as a landowner is made whole, and an agency avoids a large damages claim. But can the government force another nearby property owner to give up their property rights for such mitigation solutions? There are a few situations, outlined below, where additional land can be acquired or substituted.

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