eminent domain for utilities

[spunky]

This catagory really does not correspond to my query, but I thought it was closer than the others. My mother-in-law owns commercial property in Michigan. She has received a notice of possible condemnation of a portion of her property for sewer installation. This property is on a busy commercial corner and she is a licensed real estate agent (residential).

She has been offered $1800.00 for the portion of the property to be utilized and they also are requiring her to be responsible for any environmental hazards found.
She, in her professional research, feels the portion of the property in question, is worth in the range of $15,000.00 to $18,000.00. She also feels she should not be held responsible for any additional expenses. What legal recourse does she have? What are her chances of gaining a more favorable price?(this is urgent - she must respond by Dec. 8)Thanks

 

[HomeGuru]

Have her send a letter stating that she will sell the property for $15K and not be responsible for any other additional expenses. If they refuse the offer have her obtain an appraisal and agree to sell at appraised value.

 

[Wgoodrich]

There are different types of condemnations of land.
One condemnation is when an airport needs a runway [the land itself] the entity issuing the condemnation would then have to pay you the damages for the total loss of your land.
Another condemnation is when a utility must pass through your land. [only a right of way across your land plus damages during initial installation, not the land itself]
The latter is the condemnation I believe you are facing. This only means that they plan to dig and install the utility and hold a right of way for future repairs if necessary. Your condemnation probably would have restrictions to protect the integrity of the area and the utility itself.
Condemnation is usually done under a State or Local law that has been written to ensure the benifits of the majority of the population but at the cost of one [you]. It is recognized damages and loss of use is experienced by the land owner and these damages and loss of use is supposed to be compensated.
However the condemnation for a right of way and maintainance and its compensation would be far less in value than the condemnation for a total loss of possession of land.
This is the way I understand condemnation law in my State. Before you get too rile up, I would contact a lawyer and confirm the laws and your rights pertaining to condemnations and their catogories of land in your State.
It is my opinion that when the utility is successfully installed they will do a finish grade, reseed or resurface that area as close to origanally as possible. Then you will have the use of that land as in the past with possibly a few restrictions including the right to tear it up again even twenty years from now if necessary. Otherwise the land should be still as it was and available to you with the exception that you won't be able to build a permenant structure on that right of way.
You loss should not be total loss of land, therefore you most likely will only receive a portion of the lands value. If you do not agree with what they offer then you could file a restraining order and ask for reappraisal by uninterested free holders in the business of setting land value. Then usually three values are estimated by three different sources. Then an average is calculated and a court then sets the value of loss to you and you then must accept that value or seek appeal further up the legal ladder. Appeals are usually upheld to the original ruling unless you can prove bias.

Hope this helps

Wg

 

[spunky]

Well, regarding the sewer situation, if it was just the sewer installation, you are correct. However, there are rumblings that they plan to widen the intersection in the near future - nothing is in writing yet - and she worries that once they condem that land at near zero value, they then can take it and do as they please in the future with no recourse for her. She will lose the property, and be paid practially nothing for it.