Real Estate & Property Law

Biting the Hand that Feeds you or Fairness?

By Alan Ackerman

Nashville Public Radio

The largest land owner in the footprint of a planned downtown convention center has turned from friend to foe of the Metropolitan Development and Housing Agency. Tower Investments has filed suit to see appraisals of its property after MDHA condemned the land last month.

In return, MDHA was to let Tower see the appraisals. But Marks says the agency has refused after making an offer below what Marks considers fair market value. In condemning the property, MDHA would pay nearly $15 million for Tower's parking lot, which has a tax appraised value of $12.6 million.

    Simply put, Tower Investments, likely with the aid of the government in a proposed future development on its parking lot, is now being taken.  After assembling much of the land, Tower is now being condemned for the convention center.
    What will be problematic for this community is that there is an assessment that is in no way related to the value of the future development.  As so frequently occurs, assessments are based upon uses as they exist without consideration of the future and highest best use.
    How would you feel if you had a house on 10 acres that is  on a state highway and it turns out over the years that development has finally approached so that you are now about to sell as a commercial piece?  The commercial value is huge multiples of what your property is worth as residential, especially since the road is getting busier as communities grow.  How would you feel if the DOT came in to take your whole property and told you that your property was only residential?
    The whole notion of highest and best use is the most profitable and advantageous use even if placed in a different use or vacant.
    The assessment looks at how the property is being used.

Full post as published by National Eminent Domain Blog on November 25, 2009 (boomark / email).