An Eminent Domain Case Affecting a Trophy Property, Part 2
“As discussed in my previous post, a few years ago, a sanitation district used eminent domain to construct a large sewer pipe across the length of a property belonging to one of our clients. During an eminent domain action, the government entity acquiring the property must compensate the landowner for the fair market value of the property taken. If only a portion of the owner’s land is taken, the government must also compensate the owner for the resulting loss in value of the remaining property. The value of the land depends on its “highest and best use” rather than the owner’s actual use of the property at the time of the take. One of the first steps in any real estate valuation process is determination of the highest and best use of the site, and when an appraiser is determining damages, the highest and best use must be determined both before and after the change.”
Putman, Jonathan. Greenfield Advisors 6 May 2013.