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Sioux Falls. This residence had previously been a church and
contained approximately 8,130 square feet with 18 rooms. Her
cost basis in the property was $25,000.
During 1989, the State of South Dakota, acting through the
South Dakota Department of Transportation and the South Dakota
Transportation Commission, contacted petitioner and informed her
that acquisition of her property would be necessary for purposes
of a federally aided highway construction project. The State
then initiated civil condemnation proceedings in May of 1990 by
filing a Petition and Declaration of Taking with a South Dakota
trial court.
In June of 1992, a relocation agent for the State, Clayton
R. Sonnenschein, inspected petitioner’s property and met with
petitioner’s attorneys to discuss the Federal Relocation
Assistance Program. He also provided a brochure explaining the
program entitled “South Dakota Relocation Assistance Brochure:
Your Rights and Benefits as a Displaced Person Under the Federal
Relocation Assistance Program”. The brochure indicated that
displaced persons might be eligible for moving cost reimbursement
and for replacement housing payments. For homeowners of 180 days
or more, the replacement housing payment was defined as a
purchase supplement which included (1) the price differential
between the cost of a replacement dwelling and the acquisition
cost of the displacement dwelling, (2) increased mortgage
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