Real Estate & Property Law

Quick Take Proceedings

By Alan Ackerman

Daily Press

In explaining the contract, city officials said the Hornsbys were already in the midst of expanding their business on land next door, so the city's offer not only had to consider the cost of the existing business and the planned expansion but also the number of jobs the new facility would create and its future growth potential.

"It's more than replacing an existing business and more than just a land acquisition," Kingston said.

• In 2008, the city bought two properties on Oyster Point Road, which were needed for the expansion of the city's Public Works operations center. Both properties were purchased for more than double the assessed value and after two appraisals were done for each of the properties.

Usually, the city tries negotiating sale prices with property owners. If this fails, however, the city has two options to go through the condemnation process.

The more traditional approach is called slow-take, which requires a trial to determine fair market value.

Another option is called quick-take, during which the city would deposit the appraised value of a property with the courts and then take immediate possession of the property.

"In this case, the judge said for this project, the locality can't take that procedure," Jackson said. "But the condemnation is still authorized and lawful. We simply have to go through the slow process."

Usually, the city tries to avoid going through the court process because of the expense.

In 2002, for example, Newport News offered the owner of a downtown property $310,000 based on an appraisal. The city needed the land for the expansion of the district court. The owner, however, refused to sell.

A judge in 2006 ordered the city to pay him $500,000, city officials said.

"It's not so much that the jury generally sides with the property owner," Jackson said. "But it's more of a byproduct of how the legal system works." With the locality offering one amount and the property owner wanting another, it is very likely a jury will pick a number in between, Jackson said.

Yi's attorney argued that the recreation center does not rise to the level of an urgent and immediate need for condemnation.

"It does not justify this extreme measure," said Henry E. Howell III, Yi's attorney.

"The recreation center is not even funded yet," he said. "What they should do is to give the owner more time. Don't rush into it and condemn the property."

The case is now set for a jury trial to determine the value of the property, Jackson said. A trial date has not been determined yet.

"They did not use a quick condemnation with Denbigh Toyota," Howell said, but it was used on "the little people" next door

This recent Newport News article describes the problems and harshness of quick take proceedings.  It also describes the problem with eminent domain proceedings initiated prior to funding for the project or finalization of the project plans.

Full post as published by National Eminent Domain Blog on June 11, 2009 (boomark / email).