Some property owners said land price offers were unfair

Over half of the property owners surveyed by auditors said MoDOT's initial offer for their land was less than fair market value. Most often, MoDOT officials are buying property that is not for sale and this can result in contentious negotiations with someone who may not want to sell their property. About half the owners surveyed also said MoDOT gave "little or no consideration" to their input.  (See page 9)

Property owners not provided appraisals until June 2004

Until June 2004, MoDOT would not give property owners a copy of the appraisals detailing how it determined property values. MoDOT began sharing appraisals with owners after outside peer reviewers made the suggestion.  (See page 10)

Initial appraisals may not always reflect fair market value

Auditors reviewed 28 property acquisitions and found five with significant differences between initial and second appraisals. MoDOT generally prepared only one appraisal prior to making initial offers to property owners, with second appraisals only being prepared in condemnation cases or unusual situations. Auditors also found five properties in which comparable sales provided by the property owner were not considered in the initial appraisal, but affected the eventual negotiated price. In addition, MoDOT did not always include items in the appraisals for which the property owners should have been compensated.  (See page 10)

MoDOT property buyers had no set negotiation limits

MoDOT had not established limits on how much ROW staff could negotiate with property owners, which led to inconsistent acquisitions. Auditors found no limits set on the amount a ROW manager can approve over the appraised amount. (See page 15)

Inconsistent practices on when to buy unneeded property

Auditors found district-to-district differences in how MoDOT officials handled property owners who wanted to sell MoDOT remaining portions of property not needed for the road project. Auditors found the officials in some districts would generally not buy more property than was needed. Officials in another district said they almost always buy all the owner's property if such a request is made.  (See page 15)

No guidance exists on buying property for projects not on construction plan

Auditors found MoDOT owns nearly 8,000 acres of future ROW property related to projects not included on its 5-year construction plan. MoDOT has owned about half the land for 25 years or more, including some dating back to the 1920s.  (See page 17)

MoDOT leased property for nominal amounts or no cost

Auditors found  MoDOT leased 234 properties to other parties and received rent of $20 a year or less for about half of these leases - some at no cost. Lease records did not contain justification for the lack of compensation for most of these leases. In 13 cases, MoDOT paid $1.7 million for the related properties, but subsequently leased the properties back to the previous owners for nothing or $1.  (See page 22)