(1) A county governing body shall provide for compensation under this section to any person who has established a structure on real property if the structure encroaches on a road that is the subject of legalization proceedings under ORS 368.201 to 368.221.
(2) To qualify for compensation under this section, a person must file a claim for damages with the county governing body before the close of the hearing to legalize the road. The county governing body shall consider a claim for damages unless the county governing body determines that:
(a) At the time the person acquired the structure, the person had a reasonable basis for knowing that the structure would encroach upon the road;
(b) Upon the original location of the road, the person received damages;
(c) The person or the person’s grantor applied for or assented to the road passing over the property; or
(d) When making settlements on the property, the person found the road in public use and traveled.
(3) The compensation allowed under this section shall be just compensation for the removal of the encroaching structure.
(4) The county governing body may proceed to determine compensation and acquire the structure by any method under ORS 368.096.
(5) If a county governing body determines that removal of the encroaching structure is not practical under this section, the county governing body may acquire property to alter the road being legalized.