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What Is Fixed Payment in Lieu of a Payment for Actual Reasonable Moving and Related Expenses? A Fixed Payment In Lieu of a Payment For Actual Reasonable Moving And Related Expenses to a business operation is based on the average annual net earnings of the business operation. The payment to an eligible business may not be less than $1,000.00, nor more than $20,000.00. Any payment in excess of $1,000.00, must be supported with financial statements for the two 12 month periods prior to displacement The amount to be used for the payment is the average of the last two (2) years annual net earnings. Documentation required may be income tax returns, certified financial statements and accounting records or other similar evidence acceptable to the City. To qualify for an In Lieu payment A. A displaced business: 1. must own or rent 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. must be unable to relocate without a substantial loss of existing patronage. 3. must not be part of a commercial enterprise having more than one other entity which is not being acquired by the City, and which are under the same ownership and engaged in the same or similar business activities. 4. must not be operated at the displacement site solely for the purpose of renting the site to others. 5. must have contributed materially to the income of the displaced person during the two (2) taxable years prior to displacement. The average annual net earnings of a business operation are one -half of its net earnings before Federal, State, or local income taxes during the two (2) taxable years immediately prior to the taxable year in which it was displaced. If not in business for a full two (2) years prior to displacement, the net earnings shall be 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 r time wh <, the City determines it to be more equitable. Net earnings include any compensation pa . the owne =, of the business, a spouse or dependents. The displaced person shall furnish the City proof of net earnings through income tax returns, certified financial statements, or other reasonable evidence which the City determines is satisfactory. The City will inform you as to your eligibility for this payment and the documentation you must submit to support your claim. Remember, when you elect to take this payment you are not entitled to reimbursement for any other (actual) moving expenses. I Own an Outdoor Advertising Display. What Relocation Payment Will I Receive? As the owner of an outdoor advertising display, you are eligible for a Relocation Payment For Actual Reasonable Moving And Related Expenses. You are not eligible to receive a Payment In Lieu Of A Payment For Actual Reasonable Moving And Related Expenses. If you choose not to relocate or replace the sign, the payment for "direct loss of personal property" would be the lesser of: (1) the depreciated reproduction cost of the sign, as estimated by the City, less the proceeds from its sale, or (2) the estimated cost of moving the sign without temporary storage. The City will inform you as to the exact costs that may be reimbursed. Business lnlw Statement Page 5