City of Sunny Isles Beach v. Calvary Corp.

208 So. 3d 1247, 2017 WL 361945, 2017 Fla. App. LEXIS 723
CourtDistrict Court of Appeal of Florida
DecidedJanuary 25, 2017
Docket3D15-1420
StatusPublished

This text of 208 So. 3d 1247 (City of Sunny Isles Beach v. Calvary Corp.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Sunny Isles Beach v. Calvary Corp., 208 So. 3d 1247, 2017 WL 361945, 2017 Fla. App. LEXIS 723 (Fla. Ct. App. 2017).

Opinion

SHEPHERD, Senior Judge.

This is an appeal by the City of Sunny Isles Beach from the denial of its motion for new trial, arising from a jury verdict in an eminent domain case setting forth what the City owed the landowner as fair and just compensation for the taking of a portion of a finger canal to build a bridge for use as an emergency evacuation route to the mainland from the barrier island on which the city is situated. The City claims evidentiary error in the proceeding. We find none and write only to address the City’s contention that the trial court abused its discretion by admitting into evidence conceptual site plans to establish the highest and best use of the property as a private docking facility. A brief summary of the facts of this case is necessary to explain our decision.

FACTS

The property in this case consists of 2.81 acres of predominantly submerged land, created by dredge many years ago. The landowner or title holder of the fee is Karen P. Tucker, Trustee (the “Owner”). The property today is one of many natural or man-made canals which jut off larger water bodies in the state, generating additional waterfront living and recreational opportunities for the comfort and pleasure of its citizens. Like many of these finger bodies, especially in South Florida, this finger canal dead-ends at one of its lengths. Before the taking, the property included a bulkhead on its north side and a small upland strip that connected it to North Bay Road, a major thoroughfare running along the eastern boundary of the barrier island on which the City is located, providing access to other communities to the north and south, including the City of Miami Beach. The canal also had unobstructed access to the Intracoastal Waterway. 1

In 2012, the City took .18 acres (approximately 7,900 square feet) of the property to build a bridge to connect North Bay Road to the mainland. The bridge, apparently well into the planning stages, intersects the canal property and will impede marine access to the Intracoastal Waterway for most of the remaining canal property. For all the years since the current owner acquired title to the property and before, there has been no effort by an owner to develop the canal property. Its *1249 use has been limited to casual use by private boaters who have motored into the canal, jet skiers, and the like.

Although the Owner made no effort to develop the property before it received the notice of taking from the City, it contended at trial, based upon conceptual site plans prepared by one of its testifying experts, that the highest and best use for valuation of the injury to the property caused by the taking is that of a private docking facility for adjoining condominiums or homes. As evidence of the economic viability of this use, the Owner points out that since it purchased the property, the Winston Towers condominium complex, with 1,200 residential units, has been constructed along the property’s north side. The private docking facility the Owner posits as the highest and best use for the property is proposed to be comprised of forty-six boat docks.

The City counters that the proposed highest and best use has sprung forth fully formed from the brow of one of its testifying experts solely for the purpose of trial. The City accurately states the Owner of the property never took any affirmative step to develop the property in any fashion, much less spent a single cent to improve the underwater property or obtain an agreement with an adjoining landowner to build parking, access and utilities to the hypothetical facility. Despite testimony to the contrary, offered by the Owner’s experts, the City proffered, somewhat disconcertingly, one might think, to those who regard the use of one’s private property as a constitutional given, that the proposed facility is not economically viable because it would require going through various permitting agencies, including the U.S. Army Corps of Engineers, South Florida Water Management District, Miami-Dade County (including its Manatee Protection Plan), and numerous other commenting agencies that advise these permitting agencies, such as the Florida .Fish and Wildlife Conservation Commission, U.S. Fish and Wildlife Service and National Oceanographic Administration. Opining that the property “essentially had no economic use potential” — sounding in; substance like a categorical taking — the City appraiser opined the fair-market value for the entire parcel was $1,000. 2 Rejecting the City’s proffer, the jury awarded the Owner the ■ exact amount it sought, $855,000, as fair and just compensation for the taking, including the reduction in value to the remaining parcel resulting from lack of access to the Intracoastal Waterway. We find no error in the jury verdict.

ANALYSIS

The United States and Florida Constitutions safeguard private property rights. Daniels v. State Rd. Dep’t., 170 So.2d 846, 849 (Fla. 1964). The Florida Constitution guarantees that “[n]o private property shall be taken except for a public purpose and with full compensation therefor paid to each owner.” Art. X, § 6(a), Fla. Const.

Where less than the entire property is sought to be appropriated, any damages to the remainder caused by the taking must be included in the compensation awarded. Partyka v. Fla. Dep’t of Transp., 606 So.2d 495, 496 (Fla. 4th DCA 1992). “These ‘damages to the remainder’ are called ‘severance damages’ and are measured by the reduction in value of the remaining property.” Kendry v. Div. of Admin., State Dep’t of Transp., 366 So.2d *1250 391, 393 (Fla. 1978). Thus, “full compensation [is required] for both the property-taken and for damages to the remaining property.” Fla. Power & Light Co. v. Jennings, 518 So.2d 895, 898 (Fla. 1987).

The Owner’s expert appraiser employed the “development approach,” sometimes also referred to as “discounted cash flow” method, to determine the market value of the property. 3 Although recognized in authoritative eminent domain treatises, the first Florida court that dealt in any detail with this approach for the valuation of an undeveloped tract of land was the First District Court of Appeal in Boynton v. Canal Authority, 265 So.2d 722 (Fla. 1st DCA 1972). See 4 Julius L. Sack-man, Nichols’ The Law of Eminent Domain § 12B.14 (rev. 3rd ed. 2001); The Florida Bar, Florida Eminent Domain Practice and Procedure, § 9.62 (9th ed. 2014). Boynton teaches that under the development approach: (1) the property is valued as of the date of the taking; (2) the question for the appraiser is what a willing buyer would pay for the property in its then-existing condition on that date, for development into its highest and best use; and (3) the highest and best use may be a prospective use. Id. at 724.

The Boynton decision is very similar to the case before us. In Boynton, the highest and best use of the property before the taking was “water oriented recreational development,” but the taking eliminated the water access. The court approved the use of the development approach to the facts of this case, explaining:

[T]he testimony sought to be adduced was based on the actual value of the property at the time of the taking if sold for recreational development, its highest and best use.

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Related

Daniels v. State Road Department
170 So. 2d 846 (Supreme Court of Florida, 1964)
Board of Comm'rs of State Inst. v. TALLAHASSEE B. & T. CO.
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State Road Department v. Chicone
158 So. 2d 753 (Supreme Court of Florida, 1963)
Vero Beach Shores, Inc. v. Nolte
467 So. 2d 1041 (District Court of Appeal of Florida, 1985)
Yoder v. Sarasota County
81 So. 2d 219 (Supreme Court of Florida, 1955)
Florida Power & Light Co. v. Jennings
518 So. 2d 895 (Supreme Court of Florida, 1987)
Coral-Glade Co. v. Board of Public Instruction of Dade County
122 So. 2d 587 (District Court of Appeal of Florida, 1960)
Boynton v. Canal Authority
265 So. 2d 722 (District Court of Appeal of Florida, 1972)
Miami Atlantic Development Corp. v. Blake
334 So. 2d 29 (District Court of Appeal of Florida, 1975)
Partyka v. Florida Department of Transportation
606 So. 2d 495 (District Court of Appeal of Florida, 1992)

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Bluebook (online)
208 So. 3d 1247, 2017 WL 361945, 2017 Fla. App. LEXIS 723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-sunny-isles-beach-v-calvary-corp-fladistctapp-2017.