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.

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

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. 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. 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. 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. 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. Some Important Concepts
 Partial Acquisitions/Whole
Acquisitions
 The Larger Parcel
 Scope of the Project Rule
 Front Land-Rear Land Concept
 Property Rights Acquired

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. What to Do
What Not to Do

10. Don’t try to negotiate a
complex taking case
without legal
representation and
valuation expertise.

11. Don’t play “keep away”
with data.
(Like rent rolls, income, expenses,
vacancy)

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. Things that diminish
value in the real world
are not always
compensable in the
condemnation world.

14. Don’t assume a city will
“grandfather” in any
resulting noncompliance.

15. Don’t assume that a
small taking has a
correspondingly small
effect on the
remainder.

19. Don’t assume you can
use a condemnation
appraisal for a loan or
tax appeal
(or vice versa).

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