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From page 8... ... 8 for a public use. In Kirby Forest Industries, Inc. Read the entire page →
From page 9... ... 9 no precise and inflexible rule for the assessment of just compensation,"75 "the dominant consider- ation always remains the same: What compensation is ‘just' both to an owner whose property is taken and to the public that must pay the bill? "76 Consequently, some courts have stated that "market value should not be the sole means of valuation in eminent domain cases."77 There are four basic methods used to derive a valuation that satisfies the just compensation requirement: comparable sales, income capitalization, reproduction or replace- ment cost, and development cost.78 Although not discussed further in the digest, the development cost approach is based on the price a developerpurchaser would be warranted in paying for land given its cost of development and probable sales proceeds, but the land must be ripe for development.79 In a generally depressed real estate market, one issue is whether there are conditions that militate against using the comparable sales approach to value property and whether other methods of valuation or adjustments may be or should be utilized to determine value so as to avoid altering the traditional rules of valuation used in eminent domain cases yet produce a fair and equitable valuation. Read the entire page →
From page 10... ... 10 exist in the relevant market. This method is also dependent upon the existence of reliable and relatively consistent income and expense data going back several years prior to the taking.87 In its response to the survey, Arizona noted that the income approach is "impossible to do with vacant land or agricultural land where rents are too low."88 Connecticut advised that "[w] Read the entire page →
From page 11... ... 11 has held that when using the replacement value approach "it is not constitutionally significant that the award…will exceed the market value of the property used in their business operations."100 In City of Renton v. Scott Pacific Terminal,101 the court held that the replacement cost of improvements may be introduced into evidence whether or not there is a market value upon which to base an opinion as to the value of the property.102 The court stated that the majority rule in the state of Washington is that evidence of cost of reproduction of structures less depreciation may be introduced whenever the structures are well adapted to the land upon which they stand. Read the entire page →

From page 8...

... 8 for a public use. In Kirby Forest Industries, Inc.

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From page 9...

... 9 no precise and inflexible rule for the assessment of just compensation,"75 "the dominant consider- ation always remains the same: What compensation is ‘just' both to an owner whose property is taken and to the public that must pay the bill? "76 Consequently, some courts have stated that "market value should not be the sole means of valuation in eminent domain cases."77 There are four basic methods used to derive a valuation that satisfies the just compensation requirement: comparable sales, income capitalization, reproduction or replace- ment cost, and development cost.78 Although not discussed further in the digest, the development cost approach is based on the price a developerpurchaser would be warranted in paying for land given its cost of development and probable sales proceeds, but the land must be ripe for development.79 In a generally depressed real estate market, one issue is whether there are conditions that militate against using the comparable sales approach to value property and whether other methods of valuation or adjustments may be or should be utilized to determine value so as to avoid altering the traditional rules of valuation used in eminent domain cases yet produce a fair and equitable valuation.

Read the entire page →

From page 10...

... 10 exist in the relevant market. This method is also dependent upon the existence of reliable and relatively consistent income and expense data going back several years prior to the taking.87 In its response to the survey, Arizona noted that the income approach is "impossible to do with vacant land or agricultural land where rents are too low."88 Connecticut advised that "[w]

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From page 11...

... 11 has held that when using the replacement value approach "it is not constitutionally significant that the award…will exceed the market value of the property used in their business operations."100 In City of Renton v. Scott Pacific Terminal,101 the court held that the replacement cost of improvements may be introduced into evidence whether or not there is a market value upon which to base an opinion as to the value of the property.102 The court stated that the majority rule in the state of Washington is that evidence of cost of reproduction of structures less depreciation may be introduced whenever the structures are well adapted to the land upon which they stand.

Read the entire page →

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