Eminent Domain
Mark Polon, CCIM, Moderator
Bonnie D. Roerig, MAI
Bill James, CCIM, MAI
M. Lance Coyle, MAI, SRA, CCIM
William M. James, CCIM, MAI

President
James Real Estate Services

Bill James, CCIM, began his appraisal career in 1973 wi...
Bonnie D. Roerig, MAI

Principal and Owner
Bonnie Roerig & Associates, LLC

Bonnie Roerig entered the real estate appraisa...
M. Lance Coyle, CCIM, MAI, SRA

CEO
Coyle Realty Advisors

M. Lance Coyle, CCIM, is the 2013 Vice
President of the Apprais...
5th Amendment
U.S. Constitution
No person shall be held to answer for a capital, or
otherwise infamous crime, unless on a ...
Estimating Just
Compensation
(Partial Takings Cases)

Federal Rule

State Rule (Basic)

Value of the Property Before the T...
Some Important Concepts
 Partial Acquisitions/Whole
Acquisitions
 The Larger Parcel
 Scope of the Project Rule
 Front ...
Condemnation Observations
 Most cases governed by State law -- every State is different





Statutes
Case Law
Proced...
What to Do
What Not to Do
Don’t try to negotiate a
complex taking case
without legal
representation and
valuation expertise.
Don’t play “keep away”
with data.
(Like rent rolls, income, expenses,
vacancy)
Don’t be greedy.
 A takings case is not a profit making
opportunity.
 Even if you win, you probably lose.
 Jurors and c...
Things that diminish
value in the real world
are not always
compensable in the
condemnation world.
Don’t assume a city will
“grandfather” in any
resulting noncompliance.
Don’t assume that a
small taking has a
correspondingly small
effect on the
remainder.
Don’t assume you can
use a condemnation
appraisal for a loan or
tax appeal
(or vice versa).
Eminent Domain
Questions?
Mark Polon, CCIM, Moderator
Bonnie D. Roerig, MAI
Bill James, CCIM, MAI
M. Lance Coyle, MAI, SRA...
Eminent Domain: 5 Mistakes You Don’t Want to Make
Eminent Domain: 5 Mistakes You Don’t Want to Make
Eminent Domain: 5 Mistakes You Don’t Want to Make
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Eminent Domain: 5 Mistakes You Don’t Want to Make

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What are the top five mistakes property owners and representatives make in eminent domain situations? How do they affect a property’s marketability? Three members of the Appraisal Institute discuss what happens when private property is taken for public use through eminent domain. Learn the most significant impact on marketability, construction and tax implications, logistical considerations, and much more.

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Eminent Domain: 5 Mistakes You Don’t Want to Make

  1. 1. Eminent Domain Mark Polon, CCIM, Moderator Bonnie D. Roerig, MAI Bill James, CCIM, MAI M. Lance Coyle, MAI, SRA, CCIM
  2. 2. William M. James, CCIM, MAI President James Real Estate Services Bill James, CCIM, began his appraisal career in 1973 with the commercial and investment appraisal firm of Shorett and Riely in Seattle and opened the company's first branch office in Anchorage, Alaska. Residing in Denver since 1976, he earned an MBA degree from the University of Denver in Real Estate and Construction Management in 1979. Over the years, while conducting appraisals and market studies on a wide variety of semirural, residential, general and special purpose commercial and investment properties, he has managed re-zonings, development and redevelopment projects, and instructed appraisal courses. He has prepared and taught appraisal courses at the University of Denver, University of Colorado, Community College of Aurora, the Denver Metropolitan Commercial Association of Realtors, and the Colorado Association of Realtors. In 2008 James was publicly elected to the Board of Directors of the Regional Transportation District in the Denver metro area.
  3. 3. Bonnie D. Roerig, MAI Principal and Owner Bonnie Roerig & Associates, LLC Bonnie Roerig entered the real estate appraisal profession in 1970, principally in the Denver Metropolitan area, appraising a wide range of industrial and commercial real estate, development land, and income– producing property and has owned and managed her own firm since 1982. Her appraisal assignments include mortgage loans, purchase/sale or lease purposes, estate taxation, IRS needs, and eminent domain proceedings. The firm is currently involved in appraisals and/or Federal appraisal reviews for the FasTracks project of the Regional Transportation District, was a principal appraisal company for the City and County of Denver when acquiring the land needed for Denver International Airport. Roerig is an AQB Certified USPAP Instructor and has taught appraisal standards and ethics for the Appraisal Institute and other course providers since the mid-1980s.
  4. 4. M. Lance Coyle, CCIM, MAI, SRA CEO Coyle Realty Advisors M. Lance Coyle, CCIM, is the 2013 Vice President of the Appraisal Institute and will succeed to President of the Appraisal Institute in 2015. He is the principal of Coyle Realty Advisors, a Dallas based real estate services firm engaged primarily in commercial property litigation support and expert witness testimony and has been engaged in commercial real estate analysis for nearly 30 years. Mr. Coyle is a member of the Appraisal Institute faculty and has been a guest lecturer at several Eminent Domain conferences. He was a reviewer of two Appraisal Institute books: Market Analysis for Real Estate and Real Estate Damages and was part of the development team for the Advanced Concepts course.
  5. 5. 5th Amendment U.S. Constitution No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.
  6. 6. Estimating Just Compensation (Partial Takings Cases) Federal Rule State Rule (Basic) Value of the Property Before the Taking - Value of the Property After the Taking = Just Compensation Value of the Property Before the Taking - Value of the Part Taken = Remainder Value Before the Taking - Remainder Value After the Taking = Damages (Net of Benefits) to Remainder + Value of the Part Taken = Just Compensation
  7. 7. Some Important Concepts  Partial Acquisitions/Whole Acquisitions  The Larger Parcel  Scope of the Project Rule  Front Land-Rear Land Concept  Property Rights Acquired
  8. 8. Condemnation Observations  Most cases governed by State law -- every State is different     Statutes Case Law Procedures What is compensable  Vast and complex body of knowledge required to navigate  Condemnation is an adversarial process -- Nobody likes it  Goal should be fairness to property owner and fairness to taxpayers  Today’s Discussion: Mostly landowner’s perspective -- How can a CCIM best assist a property owner/asset manager?
  9. 9. What to Do What Not to Do
  10. 10. Don’t try to negotiate a complex taking case without legal representation and valuation expertise.
  11. 11. Don’t play “keep away” with data. (Like rent rolls, income, expenses, vacancy)
  12. 12. Don’t be greedy.  A takings case is not a profit making opportunity.  Even if you win, you probably lose.  Jurors and commissioners may be suspicious of your claims anyway.
  13. 13. Things that diminish value in the real world are not always compensable in the condemnation world.
  14. 14. Don’t assume a city will “grandfather” in any resulting noncompliance.
  15. 15. Don’t assume that a small taking has a correspondingly small effect on the remainder.
  16. 16. Don’t assume you can use a condemnation appraisal for a loan or tax appeal (or vice versa).
  17. 17. Eminent Domain Questions? Mark Polon, CCIM, Moderator Bonnie D. Roerig, MAI Bill James, CCIM, MAI M. Lance Coyle, MAI, SRA, CCIM

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