DocketNumber: No. 520173
Judges: HEALEY, STATE TRIAL REFEREE
Filed Date: 7/9/1992
Status: Non-Precedential
Modified Date: 4/17/2021
The appellant Thomas Murphy in this matter asked for a review of the statement of compensation filed on April 25, 1991 by the appellee, Town of Waterford, a municipal corporation, in the full taking of his real property in fee at 618 Mohegan Avenue Parkway in Waterford, Review of this statement of compensation which is in the amount of $35,000. is sought under General Statutes
The subject property contains 0.64 acres, more or less, and, when condemned, had situated on it a building that was once used in connection with the former use of this property as a gasoline station. The site is a corner lot with a frontage of about 120 feet on Burlake Road (which runs in a generally easterly and westerly direction) and frontage of about 232 feet on Mohegan Avenue Parkway (which runs in a generally northerly and southerly direction). The rear or southerly bound is about 120 feet long. The westerly bound is about 242 feet long. Generally speaking, the easterly portion of the lot is level and at street grade. The westerly portion of the lot, however, for almost one-half its length is characterized by vertical ledge. Overall this site encompasses an area of approximately 28,320 square feet. This property is adjacent to Route #32, the major road from New London to Norwich and it has access to Interstate 395 north of the subject property. Traffic on Route #32 in this area is heavy. There are residential uses in the area of the subject which appear generally to be well screened and well-maintained.
The building on the site was a former gas station and it was the only improvement that stood on the property. That building was demolished in the Summer of 1991. Prior to this condemnation it had been vacant for many years. The building itself was constructed in 1950, was of cement block-type construction and had a concrete foundation and concrete slab. It measured 27 feet by 61 feet and contained 1,647 square feet. The 61 feet dimension (which is the front and rear of the building) runs in a generally easterly and westerly direction) while the 27 foot dimension (which are the sides of the building) runs in a generally northerly and southerly direction).
This lot is in an R-20 (Residential) zone which requires a minimum area of 20,000 square feet, and is subject to front and rear yard requirements of 50 feet and side yard requirements of 20 feet. Because this site is a corner lot Burlake Road (the north bound of the site) is considered the frontage and Mohegan Avenue Parkway (the easterly bound of the site) is considered the side yard. A substantial portion of the area occupied by the block building which housed the former gas station is outside the permissible buildable area in this R-20 zone. These premises also contain a septic system that was used in connection with the former site use as a gasoline station. There is also some asphalt concrete paving on a portion of the site. There is also a drainage ditch or water course in the southeasterly portion of the CT Page 6531 site and it runs in a generally easterly westerly direction. Municipal water is available but sewage disposal continues to be by septic system methods.
Before our analysis several principles may appropriately be noted. An owner whose property is taken for public use is entitled to just compensation. Connecticut Printers Inc. v. Redevelopment Agency,
The trier of fact determines the credibility of witnesses, the weight to be given their testimony and in discharging that function may consider its observation of the demeanor and conduct CT Page 6532 of the parties and other witnesses. Robert Lawrence Associates, Inc. v. Del Vecchio,
In this case, the owner, Thomas Murphy, testified. He said that he had been working with and/or acting as the "backer" for one Kennedy to develop this property when Kennedy owned it. Murphy also said that he was helping Kennedy financially. Kennedy had purchased the property in the '70s but had never operated it as a gasoline station. Actually there is no evidence of any use to which Kennedy put this property. Applications to Waterford authorities to use the site commercially had been made but were denied including for its use as gas station. The earlier nonconforming use of the site as a gasoline station had been lost by the abandonment of that use. Murphy said that in trying to develop this site, that he had contacted one Roger Nelson who Murphy said told him that with some renovations of the block-type building on the site, the bottom part of that building would accommodate the placement of a $64,000 modular home on it. No documentation of any sort concerning this undertaking was introduced nor did Mr. Nelson appear and testify. In any event, Murphy purchased this property from Kennedy after the latter ran out of money. An attempt to develop the site for use as offices by Kennedy and Murphy was unsuccessful. Murphy acquired title to it by a quit-claim deed from Kennedy in August 1990 in which the indicated purchase price was $21,336. Murphy said that he believed that that price was fair market value at that time. "Although there is authority to the contrary, the owner of the land is generally held to be qualified to express his opinion of the value merely by virtue of his ownership. He is deemed to have sufficient knowledge of the price paid, the rents or other income received, and the possibilities of the land for use, to have a reasonably good idea of what it is worth." 5 Nichols, Eminent Domain (Rev.3d Ed 1989) 118.4[2]. The credible evidence, however, would indicate that the transfer from Kennedy to Murphy was not truly an "arm's length" transaction.
Silverstein, the plaintiff's expert, opined that the fair CT Page 6533 market value of the property, as of April 25, 1991, was $65,000. That figure allotted $45,000. to the land value and $20,000. to the depreciated price of the building. He used the "cost approach" to value. He believed the highest and best use was residential "with a home occupation as a secondary use." In doing so he determined that the site was "a vacant lot with an older gasoline station that could be used for a foundation for a dwelling."
Russ, the defendant's expert opined that the fair market value of the property, as of April 25, 1991, was $35,000. He determined that the fair market value of the property was $40,000. from which he deducted $5,000., his estimate of the cost of demolition of the building, and thus, arrived at $35,000. He employed he "market approach" to value. In his view, the "Highest and Best Use is for municipal and highway purposes." Both appraisers referred to sales of comparable properties which were not particularly illuminating on the issue of fair market value of the subject property.
While the matter of ground contamination allegedly arising from the site's former use as a gas station will be discussed in more detail below, it should be pointed out here that neither Silverstein or Russ took that into consideration in making their respective appraisals, although both acknowledged that they knew of the earlier use of this property as a gasoline station. Silverstein made no "contamination investigation" for his appraisal. Russ' report said that he had been "advised that all underground gasoline storage tanks [had] been removed and [that he relied] or this information as being accurate" and that he "further [assumed] there is no pollution or unknown underground condition which will affect future use of the site.1 The witness Snarski elaborated on the ground contamination aspect of the evidence.
The defendant claims that the plaintiff's contention that highest and best use of the property was for use as a residence has not been proven by the evidence. The court recognizes that the property is located in a residential zone. The vertical ledge which arises above ground in the westerly portion of the site contributes not only to making the site uncomely and unadaptable for residential purposes but also serves to isolate it from drawing upon the attractiveness of well-screened and landscaped properties to the west on Burlake Road and those further to the south. The heavy traffic on Route #32 to which it is exposed without the benefit of any screening is a negative factor to residential use. It is true that there are other residential uses in the area on Route #32 but it would appear that they do not proliferate close to this site. The view suggested that such uses were generally better circumstanced physically and screened better CT Page 6534 than this site. Even accepting arguendo Silverstein's statement that this was "an excellent residential area" the court cannot agree that this site itself contributes to that designation. Moreover, certain other aspects militate against an acceptance of the plaintiff's claim not only as to its highest and best are as residential but also ultimately to value.
The plaintiff's expert did not factor into his opinion of value that a substantial portion of the block building which was to renovated to accommodate the placement of the modular home referred to actually was not within the permissible buildable area for a residence. Here we refer to front yards and side yard requirements. He maintained that he consider the "Risk" of the owner's not getting a variance in setting his opinion of fair market value saying the owner "possibly" would get a variance. See Transportation Plaza Associates v. Power,
Although Silverstein attributed $20,000. of his value estimate of $65,000. for the property taken as the "depreciated price of the building", we note that Russ' written appraisal and testimony was not broken down at all in this regard.2 Russ simply indicated that, as of the date of his appraisal (which was before the building was demolished), the value of the subject property "as of this date if vacant is estimated at $40,000." Russ then deducts $5,000. for the cost of demolition of the building yielding his opinion of a "net value" of $35,000.
"We are aware that the power of eminent domain embraces buildings and other structures (unless exempted by law), 29 Am.Jur.2d, Eminent Domain, 82 and that the condemnee is entitled to just compensation within the rationale of the view of such entitlement: for "every kind of right or interest in property which has a market value." See Slavitt v. Ives,
Based on all the evidence, the court concludes that the highest and best of the subject property was that for which the Town had condemned it. That was stated to be for municipal and road purposes. This use involved improving the access to Burlake Road and providing for commuter parking. The plaintiff has not demonstrated that its highest and best is residential as he claims. He has not removed that claim from the area of speculation and his claim of the probability of such a use remains unproven and, therefore, the plaintiff's claim for residential use cannot legitimately affect valuation. See Tandet v. Urban Redevelopment Commission, supra 300. The highest and best use as ascertained by the court will, therefore, be used on the fair market value. Particularly significant to its highest and best use is the ideal location of the subject property to the having traveled Route #32 a.k.a. Route #395. Actually, the south bound ramp off Route #395 to the area of the subject is according to Russ, located only several hundred feet from the plaintiff's property. As owner of real property that is condemned is entitled to have the fair market value of his property determined by reference to its highest and best use. See Olson v. United States,
It is important to indicate that the settled rule on the matter of just compensation that "the question is what the owner has lost, not what the taker has gained." United States v. Certain Property located in the Borough of Manhattan etc.
The plaintiff is found aggrieved by the statement of compensation filed April 25, 1991 and based on the law and the credible evidence the court concludes that the property taken by the town had a fair market value of $45,000.00. The town's expert Russ deducted $5,000. from his opinion of value for the cost of CT Page 6536 demolishing the building, i.e. the former gas station. Other than the mere statements of this $5,000. figure given there was as already noted no indication of what this $5,000. was composed of in any fashion. Any attempt by this court to assess the cost of such demolition, assuming it should be allowed, would of course, be sheer speculation and the court will not do so.
In making this argument the town refers to specific statutes, including General Statutes
Before analyzing this issue some additional factual background should be set out. The subject property is the site of a former gasoline station and that use has been abandoned for a number of years prior to the taking. Neither the plaintiff Murphy nor Kennedy, who acquired the property sometime in the 1970's have ever used this property as a gasoline station. According to Russ, the plaintiff's expert, the building has been boarded up and unused for at least 15 years. It had, however, apparently been used as a gasoline station, prior to the acquisition of the property by Kennedy. Certain evidence at the trial referred to it as a "former Texaco station". Certain underground gasoline storage tanks had been removed prior to the condemnation of April CT Page 6537 25, 1991. That had been done in 19883 under the supervision of the Connecticut Department of Environmental Protection. After its condemnation the town "discovered" ground contamination at the site. Tests were conducted with samples being taken. This testing disclosed the presence of hydrocarbons inter alia which was described as basically "oil sludge". This is an offending substance the presence and disposal of which is controlled by statute. A number of drums of this sludge has since been removed by the town off the premises and some additional sludge remains there to be removed. As a result of the contamination investigation by the town, it has also caused to be removed a 1000 gallon underground storage tank and two 50 gallon hydraulic lifts tanks with piping from beneath the ground. These removals were done about September 1991. The 1000 gallon tank was located generally southeasterly of the building. The hydraulic lift tanks were apparently under what would have been the floor of the building. To date the town has expended $4,732.44 for the testing and removal referred to.
In arguing that the plaintiff is responsible in this proceeding for the $4,732.44 already expended for cleanup, the defendant town claims that because the plaintiff has not proven that the $35,000 determined upon by it is inadequate compensation that this court should therefore find that the damages to be warded to the plaintiff to be $30,276.56, i.e. $35,000.00 less $4,732.44. In doing so, the defendant town advances no authority for the proposition that it is entitled, in this condemnation proceeding, to require that the amount found to constitute just compensation due the plaintiff be reduced as claimed. A plaintiff owner whose property has been taken for public use by condemnation is entitled to just compensation. See e.g. Laurel Inc. v. Commissioner of Transportation,
Nor is such a conclusion required to be otherwise in this particular proceeding because of a consideration upon which the town has made no claim but which this court nevertheless believes some comment should be made. That is that ". . . the question of what is just compensation is an equitable one rather than a strictly legal or technical one. The paramount law intends that the condemnee shall be put in as good condition percuniarily by just compensation as he would have been in had the property not been taken . . ." Gentile v. Ives,
Insofar as any equitable considerations might be present in this case to permit diminishing what is just compensation by $4,732.44 the following considerations should be pointed out. It is, fair to say that the town knew of the use of these premises as a gasoline station for many years because, for example, local authorities, under statutory law, have had to approve of the application to employ property for such a use for many years. See General Statutes
In this proceeding it is concluded that even recognizing that the matter or just compensation is not strictly legal but equitable, the circumstances just set out definitely militate against permitting, if it could ever be the case, of reducing the just compensation constitutionally due this plaintiff in this particular proceeding.
Assuming that the defendant could, nevertheless, in this proceeding, properly make a cognizable claim of reduction of the just compensation due, an examination of the claims it makes in that regard does not avail the town on the evidence before us. There is no question but that at the time of the taking Connecticut had a complex statutory scheme that regulated the use of hazardous products and which provided for imposing liability CT Page 6539 for contamination caused by such products. There the town refers to several statutes in that statutory scheme. It first points to
"(a) Any person, firm, corporation or municipality which contains or removes or otherwise mitigates the effects of oil or petroleum or chemical liquids or solid, liquid or gaseous products or hazardous wastes resulting from any discharge, spillage, uncontrolled loss, seepage or filtration of such substance or material or waste shall be entitled to reimbursement from any person, firm or corporation for the reasonable costs expended for such containment, removal or mitigation, if such oil or petroleum or chemical liquids or solid, liquid or gaseous products or hazardous wastes pollution or contamination or other emergency resulted from the negligence or other actions of such person, firm or corporation. When such pollution or contamination or emergency results from the joint negligence or other actions of two or more persons, firms or corporations, each shall be liable to the others for a pro rata share of the costs of containing, and removing or otherwise mitigating the effects of the same and for all damage caused thereby."
The town then refers to Chapter
The town does not discuss whether it is appropriate to advance any such claim in this eminent domain proceeding, a proceeding in which the plaintiff property owner is "required to yield involuntarily" to the condemnor's demand, see Thomaston v. Ives,
The town also refers to General Statutes
It must be kept in mind that
Going on, we take up the reimbursement claim under General Statutes
In the view of this court these statutes, i.e.
In subsection 6 the words "a retail operation" are used. Webster defines the verb "retail" as meaning "to sell directly to the ultimate consumer, to sell in small quantities." Webster's Third New International Dictionary. Interestingly, though set out in Chapter
Arthur H. Healey State Trial Referee
Robert Lawrence Associates, Inc. v. Del Vecchio ( 1979 )
Connecticut Printers, Inc. v. Redevelopment Agency ( 1970 )
united-states-v-129183-acres-of-land-more-or-less-situate-in-adair-and ( 1969 )
united-states-of-america-petitioner-plaintiff-appellant-appellee-v ( 1965 )
Boston Chamber of Commerce v. City of Boston ( 1910 )
D'ADDARIO v. Commissioner of Transportation ( 1980 )
Town of Thomaston v. Ives ( 1968 )
Schwartz v. New London ( 1955 )
Olson v. United States ( 1934 )
Stanley Works v. New Britain Redevelopment Agency ( 1967 )
Mazzola v. Commissioner of Transportation ( 1978 )
Toffolon v. Town of Avon ( 1977 )
Tandet v. Urban Redevelopment Commission ( 1979 )
Laurel, Inc. v. Commissioner of Transportation ( 1980 )