FDOT spending $60 million on neighborhood real estate

FDOT spending $60 million on neighborhood real estate

By Susanna P. Barton

 

            The state Department of Transportation is spending $60 million on neighborhood real estate as it clears the path for the $384 million Overland Bridge replacement project.

            The state’s local shopping spree means demolition for many area homes and relocation for some area churches and businesses — including The Doll House, which is expected to vacate its iconic Atlantic Boulevard location within the next several months.

            “That’s a large amount of right-of-way to purchase for this project, it’s a lot of money,” said local FDOT spokesman, Mike Goldman. He said it is one of the highest dollar amounts he recalls the agency ever spending on right-of-way properties in recent years.

            The agency is acquiring 151 sites in the San Marco and St. Nicholas area through eminent domain transactions with local home and business owners. The FDOT needs the sites to accommodate the replacement and expansion of the Interstate 95 bridge, which is deteriorating. The construction expanse covers northbound and southbound traffic on Interstate 95 and spans Hendricks, Kings and Montana avenues in San Marco, as well as areas near Atlantic Boulevard, Philips Highway and I-95 in St. Nicholas. During the past year, FDOT has been working with local property owners and attorneys to acquire and raze the 151 needed sites so construction on the bridge replacement can commence by early 2013. 

            The $60 million right-of-way acquisition costs are high, Goldman said, because many of the properties the FDOT needs are zoned for residential and commercial office use — which increases their value.

            “Although the neighborhood is residential, there is possibility for potential rezoning to secondary commercial designation,” Goldman said. “What this means is some of the properties we’re buying might be worth a little more than what appears on the tax roles because of the zoning — and that adds a little bit to the complexity of the situation.”

            Bruce Homeyer, a local residential real estate specialist with Watson Realty Group, explained more about the impact a commercial zoning might have on the value or sale price of a home in this neighborhood.

            “With residential properties, you can compare one residence to another that’s similar and do a workup of multiple properties and come to some sort of conclusion about what a property is worth based on its location, size, the number of bedrooms and so forth,” Homeyer said. “There is a similar process for commercial properties that has more to do with the intrinsic value of the property in terms of what it can earn for the owner.”

            Goldman said acquired properties are being demolished on an ongoing basis according to their status and situation. Buildings on the chopping block are marked with the lettering, “DOT.” Some structures contain asbestos, for example, and they require a different removal process. Quite a few residential homes already have been razed and Goldman said additional structures still are in the process of being acquired.

            One of those buildings is The Doll House, an adult nude entertainment business that has long operated on Atlantic Boulevard near the Interstate 95 overpass. The property, along with several other commercial businesses in the area bordered by Stephen Street, Atlantic Boulevard and I-95, will one day be the site of a retention pond. 

            An offer has been made for The Doll House, according to Charlie, who answered the phone at the St. Nicholas business and identified himself as someone who helps around the business.

            “I expect everything will be settled and we’ll be moved out within 120 days,” he said in mid-June. The Doll House is considering four of five other sites for a new location, he said, but did not identify any of the potential addresses. The gentleman said he was glad to be moving. “I don’t want to fight with these people anymore.”

            In regard to property value, he thinks residential property owners get a better deal in FDOT offers. Business owners, he said, are paid only for their property — not necessarily the value of their business.

            “You’re better off owning a house than a business,” he said.

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