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Appraising Highway Right-of-Way Projects: Balancing Public Need with Property Owner Fairness

Posted on September 30, 2025September 30, 2025

Over the last two years, Simonson Appraisals has completed multiple portfolio assignments for highway right-of-way (ROW) expansion and reconfiguration projects across Minnesota and North Dakota. These projects involved 20+ properties at a time, requiring consistent methodology, fast turnaround, and clear communication with engineering firms managing acquisitions on behalf of the state Departments of Transportation (DOTs).

Our clients for these projects have been leading engineering firms contracted by NDDOT and MNDOT. In both cases, the projects were delivered and our clients were satisfied with the credibility and clarity of our appraisal work.


Case Study 1: North Dakota Highway Expansion

The first portfolio involved 22 properties along a 25-mile stretch of US Highway in North Dakota. The project expanded the corridor from two lanes to four lanes, improving traffic flow and safety for both local residents and agricultural and oil freight.

Most of the properties were vacant farmland, requiring careful attention to agricultural land sales, highest-and-best-use analysis, and the contributory impact of strip acquisitions.


Case Study 2: Minnesota Highway Reconfiguration (Bemidji)

The second portfolio assignment was located in Bemidji, Minnesota, along a one-mile stretch of State Highway 197. This corridor sits in the heart of Bemidji’s retail hub, anchored by Walmart, Target, Menards, and numerous national restaurant and retail chains.

The project will include construction of multiple roundabouts to replace stoplight-controlled intersections. These roundabouts were designed to reduce congestion and improve traffic safety in the city’s busiest commercial area.

For property owners, most acquisitions were partial takings, permanent easements, or temporary easements, yet even these relatively small changes had potential impacts on site access, signage, and long-term commercial positioning.

View MnDOT’s Highway 197 Project Map »


The Appraisal Process for Right-of-Way Projects

Simonson Appraisals approaches right-of-way assignments with a structured process:

  1. Property Identification & Scope – Confirming acquisition areas and easements with engineers.
  2. Market Data Collection – Gathering and verifying sales of relevant comparable data.
  3. Highest and Best Use Analysis – Determining both before- and after-taking scenarios.
  4. Valuation – Applying sales comparison, income, or cost approaches, along with before-and-after methods for easements.
  5. Coordination & Communication – Delivering consistent, defensible reports across multiple properties under strict timelines.

This process ensures each property is valued fairly, with compensation supported by market evidence and clear reasoning.


Why These Appraisals Matter

Highway projects are essential for public safety, economic growth, and improved access. Yet they directly affect property owners whose land is acquired. Credible, impartial appraisals:

  • Ensure just compensation for property owners.
  • Provide credible valuations that withstand review or litigation.
  • Help DOTs and engineering teams stay on schedule by minimizing disputes.

Conclusion

At Simonson Appraisals, our goal in right-of-way assignments is the same as in all of our work: to deliver independent, objective, and market-supported valuations. Whether for government agencies, engineering firms, or private property owners, we strive to balance the needs of public projects with fairness for landowners.

👉 If your firm or agency is leading a right-of-way or infrastructure project — or if you are a property owner impacted by one — we’d be glad to help.

📞 612-618-3726 | ✉️ info@simonsonap.com | 🌐 www.simonsonappraisals.com

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