Beyond Fair Market Value : Arizona Eminent Domain Lawyer & Attorney : Zeitlin & Zeitlin Law Firm : Condemnation, Valuation, Property Disputes

The City of Scottsdale approved the settlement of three more condemnation cases, in which I represented the property owners.  The properties were taken for the Sonoran Desert Preserve, and may represent the last few properties that will be condemned by the City for quite a while as the City has limited funds left after paying the judgment in the Toll case. 

The three properties were located in north Scottsdale in an area known as Dynamite Hills.  They consisted of about 25 acres.  The properties did not have paved access or water and sewer. The City filed these actions 4 years ago, and now will have to pay four years of interest on top of the settlement amount for each property.  Each of the properties will receive about double the City's original appraisal, plus the four years on interest.

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The Wall Street Journal reported this morning on the imprisonment of a husband and wife who were trying to stop a development company from taking their property without paying just compensation.  The couple was charged with the criminal offense of "obstructing official business".  Confiscation of homes was prevalent as China prepared for the Olympics.

For example, the Journal reports that another couple has fought for compensation for seven years and has been under surveillance ever since.

Thank goodness we have the Fifth Amendment in the United States and a judiciary that is willing to ensure that property owners can have a fair jury trial to determine just compensation.  A property owner can stand up to various sorts of  government projects as unconstitutional:  urban renewal projects have been stopped when courts have found that they do not serve a public purpose.  And even in questionable types of takings, such as new baseball stadiums that have been constructed using public monies, ie., the Washington Nationals new ballpark, property owners have been fairly compensated for the takings of their properties. 

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The City of Scottsdale voted to pay the full jury award, plus statutory interest, which amounted to $92,000,000.  The City decided to pay the judgment rather appeal the jury's award.

The jury award was the largest award in the history or Arizona trials in eminent domain actions. This was also one of the largest jury verdicts in the United States for trials that occurred in 2008.

The City had condemned Toll Brothers' land that Toll had planned to development into a high-end residential single family community.  Toll's land was condemned for the McDowell Sonoran Preserve, a  project where the City wished to preserve desert land in its natural state and prohibit development.The City had appraised the 383 acres for  $82,000 per acre or  about $31,000,000. 

The jury rejected the City's appraisal, and found that the fair market value of the land was about $214,000 per acre, or $82,000,000. Although the City threatened to appeal, the City ultimately realized that the jury's decision was fair and that it did not have a viable appeal.

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