Selling Business while Facing Eminent Domain
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Discussion
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Can a business be sold and pass the relocation benefits onto the new owner?
Code: 24.2(a)(9)
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This discussion was modified 2 years, 4 months ago by
Unknown Member.
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This discussion was modified 2 years, 4 months ago by Unknown Member.
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This discussion was modified 2 years, 4 months ago by
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Selling Business while Facing Eminent Domain
updated 3 years, 1 month ago
24.2(a)(9) 4 Members
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5 Replies
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My opinion is that relocation benefit eligibility is specific to the business and not the owner. I can see no reason why eligibility would be affected if ownership changed hands.
The exception would be if the business was acquired and the displacement site occupied for the purpose of obtaining assistance under the uniform act.
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This reply was modified 3 years, 1 month ago by
Martyn.
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This reply was modified 3 years, 1 month ago by
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That seems reasonable, Hunter. However, the exception term you used “for the purpose of obtaining assistance,” is concerning. It seems that a business purchaser would be buying the business knowing that it would be relocated and counting on relocation assistance as part of the deal. Could this scenario fit the definition of “for the purpose of obtaining assistance” making the new owner ineligible for relocation assistance?
Can you help me with this concern?
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My take is that “knowing that the business will be relocated” and “counting on the assistance as part of the deal” is not the same as “occupying the site for the purpose of obtaining assistance”..
Maybe the regulation should read something more like…….”occupying the displacement site for the sole intent and purpose of obtaining assistance”.
In over 25 years working in this field I have never seen a business disqualified under this regulation.
Bottom line is that as a displaced business, you should communicate early, often, openly, transparently and directly with the displacing agency. Simply ask them the questions you are asking here…..since they are the entity that is 100% responsible for making relocation determinations.
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I see your point in the differences and I like your definition better than what we see in the regulations.
The questions asked above are for planning purposes before the project starts and before anyone is answering the phones.
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If there’s no project and no one to talk to then I’d say that selling your business is just that……..your business.
IF a project does ever happen then the agency should deal fairly and consistently with whomever owns the business at the time eligibility is established.
To be perfectly honest….. it seems a bit off that this question is being asked with no project in sight. Also, any agency that even might have future plans for your area is most definitely going to answer their phones. Makes me wonder what it is that you are “planning” that would make this issue important at this stage.
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