55A - RESO - BRISTOL ST PROJ PHASE 3A

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Option 2: Fixed Payment In Lieu of a Payment for Actual Reasonable Moving and Related Expenses A displaced business, non - profit organization or farm may be eligible to choose a fixed payment in lieu of the payments for actual moving and related expenses and actual reasonable reestablishment expenses. The payment may not be less than $1,000.00 or more than $40,000.00. For a business or farm, the payment is based on the average annual net earnings before Federal, State and local income taxes during the 2 taxable years immediately prior to the taxable year in which it was displaced. For a non - profit organization, the payment is based on the average of 2 years annual gross revenues less administrative expenses. In order to qualify for this payment, the Displacing Agency must determine that: 1. The business owns or rents personal property which must be moved in connection with the displacement and for which an expense would be incurred in such move, and the business vacates or relocates from its displacement site. 2. The business cannot be relocated without a substantial loss of existing patronage (clientele or net earnings). 3. The business is not a part of a commercial enterprise having more than three other entities which are not being acquired by the Displacing Agency, and which are engaged in the same or similar business activities. 4. The business is not operated at the displacement dwelling /site solely for the purpose of renting such dwelling /site to others. 5. The business contributed materially to the income of the displaced person during the two (2) taxable years prior to displacement. If the business or farm was not in operation for the full two years prior to displacement, the net earnings are based on the actual period of operation at the acquired site projected to an annual rate. Average net earnings may be based on a different period of time when the Displacing Agency determines it to be more equitable. Net earnings include any compensation paid to the owners of the business, a spouse or dependents. Proof of net earnings must be furnished to the Displacing Agency through income tax returns, certified financial statements, or other reasonable evidence which the Displacing Agency determines is satisfactory. For a qualified non - profit organization, gross earnings may include membership fees, class fees, cash donations, tithes and receipts from sales or other forms of fund collection that enables the non - profit organization to operate. Administrative expenses are those for administrative support such as rent, utilities, salaries, advertising and other like items as well as fund raising expenses. Operating expenses for carrying out the purposes of the non - profit organization are not included in administrative expenses. The monetary receipts and expense amounts may be verified with certified financial statements or financial documents required by public agencies. The Displacing Agency will inform you as to your eligibility for this payment option and the documentation you must submit to support your claim. Remember, when you elect to take this payment option you are not entitled to reimbursement for any other moving expenses i.e. Option A described above. ©19802014 Overland, Pacific & Cutler, Inc. (Oct -14) Page S of 10 55A -104