Bisected Improvements

A bisected improvement is a building or structure severed by the proposed right of way line. Special consideration must be given to bisected improvements in the appraisal process and in recommending values.
In order to classify each bisected improvement properly, as acquired in its entirety, (Category I), or partially acquired, (Category II), one of the following should be determined:
  • Category I: If the part of the bisected improvement remaining outside of the right of way cannot be reconstructed to restore its use economically
    or if there is nothing but salvage left, the entire structure may be acquired by purchase or condemnation.
  • Category II: If the part of the bisected improvement outside of the right of way can be reconstructed to restore its use economically, then it cannot be acquired by purchase or condemnation.
If the right of way line bisects an improvement, the appraiser should be instructed to make the appraisal on the basis that the bisection will occur. A technical expert may be contracted to assist the appraiser in determining if the use of the improvement has been destroyed and/or determine the costs that would have to be incurred in restoring its use to the bisected improvement.
The appraisal report will then include the information necessary for ROW PD in its review to determine if the use of the improvement has been destroyed. The appraisal report will include the information needed to arrive at a value based on acquiring either the entire improvement or only the part located within the right of way. If it becomes necessary later to acquire the parcel by eminent domain proceedings, and the whole improvement is to be acquired, the appraiser should be instructed to appraise the bisected improvement as a whole unit and as being located in the right of way acquisition.
The appraiser should also be instructed that TxDOT usually bears the demolition cost of a Category I bisected improvement within the state’s right of way (unless it is retained/removed by the property owner). If a bisected improvement is Category II, TxDOT bears the demolition costs to remove the bisected portion within the state’s right of way and the appraiser should include restorative costs as damages to the remainder.
ROW PD will review the appraisal reports and inspect the bisected improvement to make such determination and specifically recommend the Category into which the structure falls, (either I or II). This recommendation should be made in the reviewing appraiser’s review comments for the parcel involved. This recommendation must identify the improvement and include a discussion of the appraisal data. If the structure is classified as Category II bisection in
TxC, a supplemental paragraph will need to be
added to the . It will be signed by responsible engineering personnel stating that the
“cutting of the building is a design and location requirement and that any reduction in right of way would adversely affect requirements for transportation purposes.”
This recommendation will then bear the signature of the district engineer; however, the designated representative
must be a Texas Licensed Professional Engineer.
If it is determined that the improvement is properly classified as Category I and therefore to be acquired in its entirety, the recommended value on the
ROW-A-10 Tabulation of Values
will show the value of the improvement as determined in the appraisal report, and no appraised damages will be shown to the remainder of the improvement. The indicated value for the whole improvement will be supported within the appraisal reports.