State of Washington v. Paul Bunyan Rifle and Sportsman

1
State of Washington v.Paul Bunyan Rifle and
Sportsmans Club, Inc.
2
Condemnation Action

• Land to be acquired for widening of 176th and SR
  161
• Total site 80 acres comprised of three distinct
  tax parcels

3
(No Transcript)
4
Parcel 1 (northernmost)

• 6.6 acres
• Frontage on both roads
• Zoned MUD Mixed Use District
• Proposed Acquisition 1.83 acres along both
  frontages

5
(No Transcript)
6
Parcels 2/3

• 74.23 acres
• Frontage along SR 161
• Zoned Employment Center
• Proposed Acquisition 1.69 acres of SR 161
  frontage

7
State Appraisal Expert

• Before and After Methodology
• Evaluated entire 80 acres
• 824,650

8
Bunyans Appraisal Expert

• Strip Appraisal Method
• Evaluated property actually taken
• 2,690,650
• Argued strip appraisal technique was
• valid for partial acquisitions, particularly in
  road widening
• if performed properly, it should result in same
  result as Before/After.
• differences between appraisers was due to HBU

9
Jury Instructions and Verdict

• Just Compensation means the difference between
  the FMV of the entire property before the
  acquisition and the FMV after the acquisition
• As of Date of PU June 8, 2004
• May consider FMV of the property rights acquired
  and any damages caused by such acquisition
• Trial Court found in favor of Bunyan, in the
  amount of 2,686,745

10
Appeal Issues/Analysis

• DOT appealed, essentially asking the Court to
  hold that only Before and After methodology is
  sufficient for partial condemnations
• RCWs requires an appraisal of FMV does not
  define an appraisal in detail
• State vs. Federal Rules Courts have accepted
  both applications
• Acknowledges that the measure is both the FMV of
  part taken, together with damages to remainder
• Appellate Verdict As a matter of law, Before
  After is not the only valid methodology

11
Appraisal Issues For Consideration

• Highest and Best Use
• DOTs appraiser argued for some type of
  Commercial Use on the north, and manufacturing or
  warehousing on the south.
• Value for Parcel 1 - 6.50/sf
• Value for Parcels 2/3 - 1.75/sf
• Damage to improvements of 110,750
• Before and After on Land, adding damage to
  improvements.
• Bunyans appraiser argued that HBU under current
  zoning was mix of retail and commercial.
• Value for Parcel 1 - 25/sf
• Value for Parcels 2/3 7.50/sf
• Added 140,650 for timber, fencing, clearing,
  contingency

12
Appraisal Issues For Consideration

• Larger Parcel issues
• Burden of Proof (for not presenting Before/After
  or excluding improvements)
• Cost to cure issues/damages/benefits likely
  better suited to evaluation using Before and
  After methodology

13
Appraisal Issues For Consideration

• Standards, Supplemental Standards and
  Jursidictional Issues
• USPAP general obligations of due diligence
• WSDOT permits strip take formats in certain
  situations
• UASFLA strongly prefers Before and After and
  permits the take damages method only in certain
  cases and only with prior permission
• Is Washington a federal rule State after all?

14
Topical Presentations by

• Bates McKee Strip Takings Valuation Issues
  and Methods
• Joe Granger Larger parcel/Pitfalls of the take
  damages approach
• Larry Smith Legal overview of Bunyan Case