Industry
Background & Position
Legislative
Issues
BACKGROUND
Appraising billboards is not just a "simple" determination of fair
market value when outdoor advertising structures are acquired by government
entities. Often, the valuation methods to determine full and fair value are
vigorously contested.
POSITION
When a state or locality acquires a sign, the owner of both the billboard and
leased property should receive just compensation which is measured by
determining “fair market value” based on a bona fide appraisal of the
economic value of the property interest that is being lost. The Federal
Highway Administration has issued two memoranda, dated October 20, 1993 and
January 9, 1992, that recommend the use of the cost approach to value for
billboards. These memoranda are inconsistent with contemporary valuation
methodology and violate the just compensation provisions of the HBA.
Just
Compensation
Legislative
Issues
BACKGROUND
Only the right to continue in business is more
important to a billboard company operator than the fundamental Constitutional
right to just compensation for signs removed by government action.
POSITION
When there is a guarantee to sign compensation, very often there is a similar
guarantee to continue business operation. Just Compensation to the sign owner
and landowner is defined as “monetary payment.”
An
amortization scheme is not considered Just Compensation. Protection of the
right to Just Compensation for the sign owner and land owner comes from three
directions:
1)
Just Compensation for all Non-conforming uses by state law (either statutory
or case-law) whereby all non-conforming uses are protected;
2)
Just Compensation for all state roadways, via state law, in addition to the
federal compliance law;
3) Just Compensation on federal roadways (adjacent to Interstate and
Federal-aid primary highways), via state law, in compliance with the Highway
Beautification Act as amended in 1978.
Source:
Outdoor Advertising Association of America
