Caltrans accused of manipulating appraisals to deny just compensation

February 22, 2025 | Transportation Commission, Agencies under Office of the Governor, Executive, California


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Caltrans accused of manipulating appraisals to deny just compensation
Concerns over unjust compensation practices by Caltrans took center stage during the California Transportation Commission meeting, as allegations surfaced regarding the manipulation of property appraisals. A representative highlighted that Caltrans failed to provide just compensation for property acquisitions, violating government code requirements.

The crux of the issue lies in the appraisal process, which was reportedly skewed to lower compensation amounts. According to the representative, Caltrans improperly shifted property values from realty to personalty, undermining the integrity of the appraisal. This manipulation led to a significant reduction in the compensation owed to property owners.

A timeline presented during the meeting revealed that an initial appraisal valued the property at $5 million in May 2013. However, after the owner did not accept this offer, Caltrans re-evaluated the property eight months later, focusing on furniture, fixtures, and equipment (FF&E). The agency's own expert appraised the FF&E at over $2 million, but subsequent adjustments drastically reduced the value of the property, raising questions about the fairness of the process.

The representative emphasized that courts have previously overturned resolutions of necessity when just compensation was not offered, indicating potential legal ramifications for Caltrans. The ongoing scrutiny of these practices highlights the importance of transparency and fairness in the appraisal process, as stakeholders call for accountability and adherence to legal standards in property compensation.

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