City of Portland v. Ruggero

373 P.2d 970, 231 Or. 624, 1962 Ore. LEXIS 393
CourtOregon Supreme Court
DecidedAugust 14, 1962
StatusPublished
Cited by9 cases

This text of 373 P.2d 970 (City of Portland v. Ruggero) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Portland v. Ruggero, 373 P.2d 970, 231 Or. 624, 1962 Ore. LEXIS 393 (Or. 1962).

Opinion

LUSK, J.

This is a condemnation action brought by the city of Portland, acting by and through the Portland Development Commission, under the authority of ORS Chapter 457, to acquire property by eminent domain in order to carry out an urban renewal project. The trial was before the court without a jury. The court entered findings of fact, conclusions of law, and a judgment by which it found that the fair market value of the real property taken on the date of the filing of the complaint was $21,000 and that said sum is the just compensation to be paid to the defendant Filomena Ruggero, the owner of the property (hereinafter referred to as the defendant); that the amount of the final offer made by the plaintiff to the defendant was a sum in excess of the amount found to be due as just compensation to her; and that the defendant was not entitled to recover an attorney’s fee or costs and disbursements.

The defendant filed objections to the findings as follows:

“1. Objects to the entry of the judgment tendered herein by the plaintiff on the ground that said tendered judgment contains a purported *626 finding of fact contrary to the evidence that the subject property in this action had a fair market value of $21,000.00 at the time of the filing of the complaint herein and that such sum is just compensation to the defendant,
“2. Objects to the entry of any other judgment herein, on the ground that the Court as trier of the facts has formed its opinion contrary to the evidence,”.

The defendant has appealed from the judgment.

There is one assignment of error, which reads:

“The Court erred in disregarding the evidence introduced and basing its decision on personal observation and speculation.”

The judge viewed the premises and rendered a decision in writing, which reads:

“The expert appraisers seem to be generally agreed that there is a fifteen year life remaining in the building, and that to some extent, at least, there seems to be an idea that the upstairs rooms would be acceptable to rent out for rooms. The Court observed this property, and saw the following defects which make the Court believe that the building ought to be condemned at the present time so far as rentals are concerned:
“The large upstairs back porch decking is so rotten that at the sills rotten holes show through. The sills are on such wide centers that a person walking across this floor is in danger of falling through and suffering serious injury. The cement foundation exterior on the east side shows it was built by pouring cement around timbers onto which sheathing was nailed, and which still form a part of the otherwise cement walls. They have rotted away to such an extent that they cause a viewer to wonder if the foundation at this point, which is actually about ten feet high, might completely collapse. The floors throughout the entire structure tremble under the ordinary human step. The only *627 bathroom in the building appears to be located in the extreme southeast comer of the upstairs. The southeast corner of this bathroom has sagged at least four or five inches lower than the northwest comer of the same room. In the basement it appears that at least one supporting timber is only toenailed into another at its inside terminal and is resting as much on the plumbing as any upright pieces.
“How the appraisers can attribute a fifteen year life to such a structure this Court cannot understand. Therefore, the Court is largely disregarding their testimony concerning the value of the building, although it does recognize there is some life and rental value in the tavern portion of the building. However, the Court does not overlook the fact that the routing of traffic and the slope of the hill at the comer upon which this building is located leave a definite possibility that an automobile or a truck involved in a collision, or even losing its brakes might roll into this building. Such a collision would definitely endanger collapse of the building.
“The Court does allow $15,000.00 for the property on an approximate $5.00 per square foot basis, $4000.00 for the fixtures, and will allow $2000.00 on the building, bad as it is, for a total of $21,000.00, which total is allowed as just compensation for the property.”

The property involved is included in what is known as the South Auditorium Urban Renewal Project in the city of Portland. It is a rectangular parcel 50 x 60 feet plus a small parcel 6 x 16 feet. On it was a building comprising living quarters and a “business unit” used as a beer tavern.

All the evidence was given by three appraisers, Arvin A. Burnett and Harry W. Stepp for the plaintiff *628 and Paul E. Lusk for the defendant. Their valuations were as follows:

Mr. Burnett:
Land and building, $18,000
Fixtures, 4,000
Total, $22,000
Mr. Stepp:
Total value, $21,500
Mr. Lusk:
Land, $13,905
Building, 10,945
Fixtures, 2,500
Total, $27,350

Mr. Lusk estimated the economic life of the building at fifteen years; Mr. Burnett and Mr. Stepp thought this was reasonable.

Mr. Lusk based his opinion as' to the value of the building on the net income therefrom over a period of fifteen years.

Mr. Burnett and Mr. Stepp both used the “income approach” in arriving at their valuations. The former testified that a reasonable income from the real property was $1,700 per year and that a willing buyer would wish the return of his money without interest in ten years. Thus, he fixed the value of the property at $17,000 and added to this $1,000 which a willing buyer would be willing to pay. Mr. Stepp thought the reasonable estimated income was $2,340 per year, but used the term of nine years for the return of investment without interest, thus producing a figure which he “rounded” to $21,500.

*629 Mr. Lusk and Mr. Burnett also .testified as' to the value of the bare land. The former appraised this value at $4.50 per square foot, giving a total of $13,905 for 3,090 square feet, while Mr.. Burnett estimated the value of the bare land at $3 per square foot.

As the memorandum opinion of the judge shows, his valuations were as follows:

Bare land on an approximate valuation of $5 per square foot, $15,000
Building, 2,000
Fixtures, 4,000
Total, $21,000

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Bluebook (online)
373 P.2d 970, 231 Or. 624, 1962 Ore. LEXIS 393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-portland-v-ruggero-or-1962.