For negotiated parcels, the state participation in the cost of improvements will be based on values approved by the state. Whether the LPA anticipates acquiring the improvement or letting the owner retain the improvement, or plans on relocating the improvements for the owner, it is necessary that the state be furnished with the values of each item of improvement. This requirement is predicated on the fact that the state’s upper limit of participation will be the approved value reduced by the retention value for the improvement if the improvement is not acquired. Market values are therefore essential for the state to set these upper limits of cost participation ( ).