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803-PT – Revision 3 – 09.05.06.USA

Welcome to the International Right of Way Association’s Course 803 Eminent Domain Law Basics for Right of Way Professionals. 803-PT – Revision 3 – 09.05.06.USA. Introductions Who we are… What we do… Where we do it… How long we’ve been doing it… Our goals for the course.

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803-PT – Revision 3 – 09.05.06.USA

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  1. Welcome to theInternational Right of Way Association’sCourse 803Eminent Domain Law Basics for Right of Way Professionals 803-PT – Revision 3 – 09.05.06.USA

  2. Introductions • Who we are… • What we do… • Where we do it… • How long we’ve been doing it… • Our goals for the course...

  3. Objectives (1)At the end of the two days,you will be able to... • •Discuss the characteristics of eminent domain • •Express an understanding of the sources of eminent domain law • •Analyze the components of justcompensation and the legal aspectsof valuation

  4. Objectives (2)At the conclusion of the two days, you will be able to... • • Demonstrate the meaning of just compensation and the legal aspectsof valuation • • Name some of the role players and describe their roles in the eminent domain process

  5. Housekeeping

  6. ScheduleDay One(1) • 8:00 - 8:30 Introductions, Etc. • 8:30 - 9:30 Background • 9:30 - 10:15 Primary Sources of • Eminent Domain Law • 10:30 - 2:15 Breakdown and Analysis • of the Constitutional • Right of Eminent Domain • 2:30 - 4:45 Just Compensation and • Legal Aspects of Valuation

  7. ScheduleDay Two(2) • 8:00 - 8:30 Recap • 8:30 - 2:45 Just Compensation and • Legal Aspects of Valuation • 3:00 - 3:30 Roles of Right of Way • Professionals • 3:30 - 4:00 Course Review • 4:00 - 5:00 Exam

  8. Eminent Domain • Eminent domain is the power of the • sovereign to take private property for • public use without the owner's consent. • Generally, the "sovereign" is the • government (federal and state), • although some quasi-public and other • agencies have eminent domain powers.

  9. Characteristics of Eminent Domain Power (1) • Sovereign Attribute • Constitution and Statute

  10. No person shall be … deprived of … property, without due process of law; nor shall private property be taken for public use, without just compensation.

  11. Characteristics ofEminent Domain Power (2)Sovereign AttributeConstitution and StatuteRelationships to Private Property Rights

  12. 1 Kings 21 • “ … Naboth the Jezreelite had a vineyard, hard • by the palace of Ahab king of Samaria. And • Ahab spake unto Naboth, saying, Give me thy • vineyard, that I may have it for a garden of • herbs, because it is near unto my house: and I • will give thee for it a better vineyard than it; • or, if it seem good to thee, I will give thee the • worth of it in money.”

  13. Police Power • Police power is the right of • government to restrict the use • of private property in order to • promote or protect public interests • (e.g., public health, safety, and welfare.)

  14. Taxation • Taxation is an involuntary fee • paid by individuals or businesses • to a governmental unit.

  15. Whatdayathink? (1) • To construct the NASCAR-owned Kansas • International Speedway, Wyandotte County • condemned property belonging to 150 • families within the 1,200-acre tract. Owners • of 30 of the parcels challenged the takings in • court. The Kansas Supreme Court upheld • the condemnations, ruling that the racetrack • is a valid public purpose.

  16. Whatdayathink? (2) • In 2002, the Honolulu City Council approved a • resolution allowing it to condemn five beach • front properties needed for a 7.9 acre hotel • expansion, which was part of a $300-million • Waikiki Beach Walk redevelopment project. • The City claimed the project would attract more • visitors and spur other development. • (Go on to next slide)

  17. Whatdayathink? (3) • The City Council Chairman said that filing • the condemnation actions would "encourage • the parties to negotiate." The owners said that • it was neither "necessary or appropriate” for • the City to condemn the properties and then • sell to the hotel chain. (The owners settled.)

  18. No person shall be … deprived of … property, without due process of law; nor shall private property be taken for public use, without just compensation.

  19. … nor shall any State deprive any person of life, liberty, or property, without due process of law...

  20. Private property shall not be taken for public use without just compensation.

  21. The Uniform Act

  22. Regulations Part Subparts Sections

  23. CourtsFederal State Supreme Court Supreme Court (of Virginia) Court of Appeals Court of Appeals (12 Regional Circuits) Circuit Courts (31 Circuits) District Courts (94 Judicial Districts) General District Courts Juvenile and Domestic Relations District Courts Magistrates

  24. Private property… (1) Private property shall not be taken or damaged for public use without just compensation.

  25. Private property… (2) Private property shall not be taken or damaged for public use without just compensation.

  26. Private property… (3) Private property shall not be taken or damaged for public use without just compensation.

  27. EconomicRegulatory Takings Character of the government conduct Interference Legitimacy Economic impact Investment expectations Economic harm Public Purpose Private Loss

  28. Private property… (4) Private property shall not be taken or damaged for public use without just compensation.

  29. Private property… (5) Private property shall not be taken or damaged for public use without just compensation.

  30. Private property… (6) Private property shall not be taken or damaged for public use without just compensation.

  31. Private property… (7) Private property shall not be taken or damaged for public use without just compensation.

  32. Just Compensation (1) Just compensation means the full and perfectequivalent in money of the property taken.The owner is to be put in as good a positionpecuniarily as he would have occupied ifhis property had not been taken. United States v. Miller, 317 U.S. 369 (1943)

  33. Just Compensation (2) Just compensation means a compensation that would be just in regard to the public, as well as in regard to the individual… Bauman v. Ross, 167 U.S. 548 (1897)

  34. Private property… (8) Private property shall not be taken or damaged for public use without just compensation.

  35. Market Value Market value is a type of value, stated as an opinion, that presumes the transfer of a property … as of a certain date, under specific conditions … (relationship, knowledge, and motivation; terms of sale;conditions of sale).

  36. Monongahela (1) The noun “compensation” standing by itself, carries the idea of an equivalent. So that, if the adjective “just” had been omitted, and the provision was simply that property should not be taken without compensation, the natural import of the language would be that the compensation should be the equivalent (go to next slide)

  37. Monongahela (2) for the property taken; and this just compensation, it will be noticed, is for the property, and not to the owner. Every other clause in this fifth amendment is personal. Monongahela Navigation Co. v. U.S., 148 U.S. 312 (1893)

  38. Formulas(1) Federal (Before and After) Rule State (Summation) Rule

  39. Formulas(2) Federal (Before and After) Rule is the difference between the value before the acquisition and the value after the acquisition.

  40. Formulas(3) State (Summation) Rule is the value of the part taken plus(damages to the remainder property minus benefits to the remainder property [the damages minus the benefitscannot be less than zero dollars])

  41. Definitions Value of the part takenis determined by multiplying the quantity taken times the before unit value of the item Damages to the remainder property represent the loss in value to the remainder property as a result of a partial acquisition Benefits to the remainder property represent the increase in value to the remainder propertyas a result of a partial acquisition

  42. Three Approaches • Sales Comparison Approach • Research the market for comparable data • Develop relevant units of comparison • Compare the sales to the subject and adjust for dissimilarities • Reconcile the value indications into a final value opinion

  43. Three Approaches • Cost Approach • Develop a value opinion for the land • Estimate the cost new of the improvement • Deduct depreciation • Add land value opinion to the depreciated improvement value

  44. Three Approaches Income Capitalization Approach The conversion of income into value througha rate or a ratio.

  45. Recap Day One (1) Today, we: • Discussed the characteristics of eminent domain• Examined the sources of eminent domain law• Analyzed the term ”Private property shall not be taken or damaged for public use without just compensation”

  46. Recap Day One (2) •Looked at just compensation and the laws and legal aspects of valuation (through the three approaches to value) • • At various times throughout the day, we did some exercises and a case study

  47. Day Two • Today, we will • Finish discussing just compensation and the laws and legal aspects of valuation • Name some of the role players and describe their roles in the eminent domain process • Do a few more exercises and a case study • Take the exam

  48. Laws… Valuation Process Valuation Date Comparable Sales Data

  49. Market Perceptions “Property owners…are due compensation, even if the ‘cancerphobia’ driving down the worth of their land is unjustified or irrational…”

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