How To Assess The Value Of "Taken" Property

20/ “HOW TO VALUE TAKEN PROPERTY AND ASSESS DAMAGE TO OTHERS”: The Moorhead Economic Development Authority exercised a “quick take” procedure to acquire over 20 properties for a major project.  The developer discovered that there was fuel-oil soil contamination on the former property of Anda and two adjoining plots. 

Under contractual time pressure to deliver Anda’s property and the adjoining properties to a franchise developer, MHA acted quickly to remediate the contaminated properties.  The remediation process for the three properties took approximately one week to complete and cost $1,599,568.

Court-appointed commissioners awarded Anda $488,750 as compensation for the taking of his property. 

Both Anda and MEDA appealed the commissioners’ award to the Clay County District Court.   MEDA also commenced a separate action against Anda to recover damages for the cost of remediating the contaminated discovered on the two adjoining properties, which MEDA alleged was a result of fuel oil leaking from Anda’s properties.  The parties agreed to consolidate the actions.  At trial, the jury found Anda’s property was worth $455,000 “had it not been impaired by fuel oil contamination” and $0 “taking into account the fuel oil contamination.”  The jury also found Anda liable for the contamination of the two adjoining parcels in the amount of $474,512.   The court then concluded that Anda was not entitled to damages for the taking of his property because the cost of remediating Anda’s property exceeded the property’s fair market value.

The Supreme Court held that justice required the case be remanded for a new trial to determine just compensation due Anda for the taking of Anda’s property. When the government condemns property that is contaminated at the time of the taking, the property should be valued “as remediated” rather than as contaminated or as clean. 


READ THE FULL CASE DECISION: 

Moorhead Economic Development Authority, Respondent, vs. Roger W. Nada, et al., Appellants.

September 2, 2010.                            2010-103            

https://mn.gov/law-library-stat/archive/supct/1009/OPA071918-0902.pdf