Adm 92.90(1)(e) (e) The entire business or farm operation shall be displaced to qualify for a replacement payment. However, a business or farm operation shall be considered eligible for a replacement payment when:

Adm 92.90(1)(e)1. 1. The property remaining after the acquisition is not an economic unit or would result in a significant reduction in net earnings for the same type of business or farm operation, as determined by an agency;

Adm 92.90(1)(e)2. 2. The acquisition substantially changed or interfered with the principal operation or the nature of the business or farm operation so as to constitute a displacement.

Adm 92.90(2) (2) Delayed occupancy for construction and rehabilitation. A person who contracts for the construction or rehabilitation of a replacement building, is considered to have purchased the replacement as of the date of the contract. The replacement payment may be deferred until a final acquisition price is known and relocation is completed provided the agency makes payment into an interest-bearing escrow account for release upon reestablishment of the business or farm operation. An agency may pay a person before reestablishment when there is assurance of reestablishment.

Adm 92.90(3) (3) Prior ownership of a replacement building or land. An agency shall pay a person who is an owner of a replacement building or land upon which a replacement building is constructed and within the time limit under sub. (1), a replacement payment as specified under this subchapter. The fair market value of the land and the building at the time of displacement shall be used as the actual cost in determining the payment.

Adm 92.90(4) (4) Inspection for compliance with federal, state or local code. An agency shall inspect a replacement business or farm operation to determine if it meets federal, state or local codes before making a replacement payment. An agency shall take the following steps before terminating assistance or denying eligibility for a replacement payment because a person moved to a facility which is not in compliance;

Adm 92.90(4)(a) (a) Assist a person to correct a deficiency and when necessary, refer a person to another facility in compliance with applicable codes;

Adm 92.90(4)(b) (b) Notify a person in writing within 10 days of the inspection regarding a deficiency to be corrected to receive payment, and that when the deficiency is corrected by the date as specified under sub. (1), or when a person moves to another facility which is in compliance, the person shall receive payment.

Adm 92.90(5) (5) Statement of eligibility to lender. An agency, upon request of a person to be relocated, shall inform an interested person or mortgage lender that the person shall be eligible for a replacement payment upon the purchase or rent and reestablishment of a replacement property within the applicable time limit.

Adm 92.90(6) (6) Advance payment in condemnation case. An agency shall promptly pay a replacement business or farm payment. An advance payment shall be made when an agency determines the acquisition payment will be delayed because of condemnation proceedings. An agency’s offer shall be used as the acquisition price for calculating the payment. The payment shall be contingent on a person signing an affidavit of intent that:

Adm 92.90(6)(a) (a) The agency shall re-compute the replacement payment using the acquisition amount, set by the court;

Adm 92.90(6)(b) (b) The person shall refund the excess amount from the judgment when the amount awarded as acquisition amount plus the advance payment exceeds the amount paid for a replacement or the agency’s determined cost of a comparable replacement. A person is not required to refund more than the advance payment. The payment shall be made after the condemnation proceedings are completed when a person does not sign an affidavit.

Adm 92.90(7) (7) Carve-out and modification of replacement payment computation.

Adm 92.90(7)(a) (a) Complete acquisition.

Adm 92.90(7)(a)1. 1. ‘Typical size lot.’ The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business less the price of the acquired building and the site when the acquired business is located on land typical in size for the type of business conducted.

Adm 92.90(7)(a)2. 2. ‘Larger than typical size lot.’ The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business, less the price of the acquired building, plus the price of that portion of the acquired land typical in size for the business being conducted, when the acquired business is located on land larger in size than typical for the type of business conducted.

Adm 92.90(7)(b) (b) Partial acquisition.

Adm 92.90(7)(b)1. 1. ‘Typical size lot.’ The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business, less the value of that portion of the acquired property which represents the typical size for the business, when the acquired business is located on land larger than typical for the business conducted.

Adm 92.90(7)(b)2. 2. ‘Larger than typical size lot.’ The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business, less the value of that portion of the acquired property which represents the typical size for the business, when the acquired business is located on land larger in size than typical for the business conducted.

Adm 92.90(7)(b)3. 3. ‘Remainder property.’ If a buildable residential lot or an uneconomic remnant remains after a partial taking and the owner of the remaining property refuses to sell the remainder to the agency, the market value of the remainder may be added to the acquisition cost for the purposes of computing the payment.

Adm 92.90 Note Note: Under ss. 32.05 (3m) and 32.06 (3m), Stats., an agency is required to offer to purchase a remainder if it is an uneconomic remnant.

Adm 92.90(7)(c) (c) A business or farm operation on land with higher and better use. The maximum payment shall be the selling price of a comparable replacement business or farm operation on land typical in size for the existing business or farm use in the area, less the price for the acquired property and the price of that portion of the acquired land which represents land typical for the existing use, when the market value is based on a higher and better use than the existing use.

Adm 92.90(7)(d) (d) Mixed residential and nonresidential use property. An agency shall determine a replacement payment by using only that portion of the acquired or displacement property occupied by the displaced business or farm.

Adm 92.90(7)(e) (e) Multiple occupancy of the same parcel.

Adm 92.90(7)(e)1. 1. Each separately organized business or farm operation which occupies a parcel shall be eligible for a replacement payment. The acquisition price or rent used for a replacement payment computation shall be the amount each business or farm occupant receives from the total payment for the property acquired, or the rent each tenant-occupant pays toward the total rent.

Adm 92.90(7)(e)2. 2. There shall be only one business or farm operation replacement payment for a business or farm operation under one ownership but engaged in more than one operation.

Adm 92.90 Note Note: An agency shall consider the factors under s. Adm 92.66 in determining whether more than one business or farm is eligible for payment under this subchapter.

Adm 92.90(7)(f) (f) Decentralization of business or farm. The purchase price or the cost of a replacement, when a business or farm operation displaced from one site relocates to more than one site. The replacement payment shall be limited to a selected comparable at one site unless an agency determines the needs of a business or farm operation require location at more than one site.

Adm 92.90(7)(g) (g) Joint business and investment use. A person who owns and occupies a business and also rents out a residence or business facility on the same property, shall receive a replacement payment based only on that portion of the space and that portion of the acquisition price utilized by the business.