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Potential Use of Condemned Property In Conjunction with Adjoining Land Properly Considered in the Valuation of the Taking/Statutory 6% Interest Applies in Condemnation Proceedings

The Second Department determined Supreme Court properly took into consideration the potential use of the condemned land in conjunction with adjacent parcels of land in assessing the value of the property.  The court further determined that the statutory 6% interest for condemnation proceedings (General Municipal Law 3-a(2)) applied:

The measure of damages in a condemnation proceeding ” must reflect the fair market value of the property in its highest and best use on the date of the taking, regardless of whether the property is being put to such use at the time'” … . “The determination of highest and best use must be based upon evidence of a use which reasonably could or would be made of the property in the near future” … . ” The fact that the most profitable use of a parcel can be made only in combination with other lands does not necessarily exclude that use from consideration if the possibility of combination is reasonably sufficient to affect market value'” … . “Thus, a claimant is entitled to the fair market value of its property for its highest and best available use even though that use is in connection with adjoining properties, provided there is a reasonable probability that the condemned property would be combined with other tracts in the reasonably near future”… . Matter of City of Long Beach v Sun NLF Ltd Partnership, 2015 NY Slip Op 00370, 2nd Dept 1-14-15

 

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