We are reliably informed of the following settlement of an eminent domain case in Mecklenburg County in North Carolina. N.C. DOT v. Independence Tower Building.
DOT initially offered $256,000 (based on a $231,700 appraisal) for the taking of 0.4 acres out of a 5-acre parcel improved with a 12-story commercial office building, which reduced parking by 62 spaces, affected the subject property’s highest and best use, and changed access to it.
When the owners rejected its offer, DOT conducted another appraisal and upped the offer for the taking to $534,200. At this point the owners retained counsel (who pointed out that the rents used by DOT were project influenced). That revelation caused DOT to conduct a third appraisal which came to $4,889,425. After further negotiations, final settlement came to $5,228,014.19. In other words, the settlement came to 93 times DOT’s original offer.
The moral of this story is that even if you have reason to think that you are a sophisticated owner of a valuable property, it’s a good idea to retain and consult both lawyers and appraisers who really know what they are doing.