Does it Make Sense to Fight or Settle an Eminent Domain Case With Land Value Issues
Landowners in California purchased a three acre parcel near a highway with the plan to construct a gas station. They went through the preliminary work and expense but ended up not proceeding with the plan after the property value crash and recession hit. Now there is a plan to expand the highway and CalTrans wants to obtain the land through eminent domain. However, the owners are being offered the agricultural value for the land, not the value it would have if developed as a service station. Does it make sense for the landowners to fight for more money?
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If the land is zoned for a service station, then an argument could certainly be made that fair compensation should be based upon its value as a commercial property, not an agricultural property. However, the cost of preparing to construct a service station that was never in fact built is not an expense for which the state will offer compensation, nor is the theoretical value that the land would have if the service station had actually been constructed -- if it's a vacant parcel, it will be valued as such.
If the landowners wish to try to pursue greater compensation, and have not yet done so, they should consider working with a real estate lawyer who handles eminent domain cases.