Department of Transportation v. Standard Bank and Trust Co.

2020 IL App (1st) 190787-U
Appellate Court of Illinois·Decided December 30, 2020·No. 1-19-0787·Unpublished

Opinion

2020 IL App (1st) 190787-U

THIRD DIVISION

December 30, 2020

No. 1-19-0787

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

THE DEPARTMENT OF TRANSPORTATION OF ) Appeal from the THE STATE OF ILLINOIS, ) Circuit Court of ) Cook County.

Plaintiff-Appellee, )

)

v. ) No. 13 L 50185 )

STANDARD BANK AND TRUST COMPANY, as ) Trustee under Trust Agreement dated April 18, 1966, ) known as Trust No. 2860, GALLAGHER & HENRY, ) Honorable ) Michael F. Otto,

Defendants-Appellants. ) Judge Presiding.

PRESIDING JUSTICE HOWSE delivered the judgment of the court.

Justices McBride and Ellis concurred in the judgment.

ORDER

¶1 Held: The judgment of the circuit court of Cook County is affirmed in part, reversed in part, and the cause remanded for a new trial; defendants made a sufficient showing of a reasonable probability of rezoning in support of its expert appraisers’ highest and best use determinations and thus the trial court committed reversable error in barring defendants’

experts and their opinions regarding just compensation for the taking of defendants’

property.

¶2 The Illinois Department of Transportation, plaintiff, filed a condemnation complaint pursuant to the Illinois Eminent Domain Act, 235 ILCS 30/1-1-1 (West 2012), to acquire 7.252 acres of property (Subject Property) owned by defendants for a public use. In advance of the

trial, solely for purposes of determining just compensation for the taking of the Subject Property, the parties exchanged expert witness appraisals opining as to the fair market value of the Subject Property. Both parties subsequently filed motions in limine seeking to bar the other party’s expert appraisal opinions. At issue in this case are plaintiff’s five motions in limine granted by the trial court barring defendants’ experts’ appraisal opinions. In granting the motions, the trial court found there was no substantial showing of a reasonable probability of rezoning the property for commercial use, which the court reasoned was required to support the defendants’ experts’ valuation opinions as to the highest and best use of the Subject Property and barred the evidence from being submitted to the jury. Defendants sought leave to disclose supplemental witness opinions which they argued conformed to the trial court’s rulings on plaintiff’s motions in limine which the trial court denied. The effect of the trial court’s pretrial rulings was to bar defendants from presenting any valuation opinions.

¶3 Also at issue are two motions in limine filed by defendants which alleged plaintiff’s experts’ opinions were based on consideration of inappropriate documents and thus should be barred. The defendants’ motions were denied by the trial court.

¶4 Following a bench trial which included only plaintiff’s valuation evidence, the trial court entered a judgment finding just compensation for the Subject Property to be in the amount determined by plaintiff’s appraisers’ in their valuations. Defendants moved for a new trial which was denied by the trial court. Defendants timely appealed these pretrial and posttrial rulings. For the reasons set forth below, we affirm in part, reverse in part, and remand for a new trial.

¶5 BACKGROUND

¶6 On February 19, 2013, plaintiff, the Illinois Department of Transportation of the State of Illinois, filed a Complaint for Condemnation pursuant to the Illinois Eminent Domain Act, 235

ILCS 30/1-1-1 (West 2012), seeking to acquire a 7.252 acre portion of real property owned by defendants, Standard Bank and Trust Company and Gallagher & Henry. According to plaintiff’s construction plans, the purpose of this acquisition was to allow for road widening, stormwater detention, and compensatory floodplain storage.

¶7 History of Subject Property

¶8 The Subject Property sought by plaintiff is located in the approximately 127 acre parcel of land owned by defendants and identified as the Hitz, Kaufman, Sayers II Parcel (Kaufman Parcel). The Subject Parcel is an irregular “L” shape located at the southwest quadrant of Wolf Road and 159th Street in Orland Park and excludes a rectangular shaped area where Wolf Road and 159th Street intersect. The Subject Property includes approximately 1,154 feet of frontage along the south side of 159th Street and approximately 1,670 feet of frontage along the west side of Wolf Road. At the time of plaintiff’s complaint, the Subject Property was vacant land used for agricultural production.

¶9 Spring Creek Annexation Agreement and Ordinance

¶ 10 In 1994, approximately 1,500 acres of land which included the subject Kaufman Parcel and 13 other parcels was annexed into the Village of Orland Park, Illinois (Village) pursuant to an annexation agreement referred to as the Spring Creek Annexation Agreement (Annexation Agreement). The Annexation Agreement was subsequently adopted by the Village in an ordinance (Ordinance 2515).

¶ 11 The Annexation Agreement adopted by Ordinance 2515 zoned the annexed Spring Creek property as a Large Scale Planned Development (LSPD) which allows for various uses with both residential uses (including single and multiple family residential) and commercial uses (including grocery stores and restaurants).

¶ 12 Exhibit D to the Annexation Agreement (entitled Parcel Schedules) incorporates a “Proposed Concept Plan of Development” for the Kaufman Parcel under the LSPD (Concept Plan). The Concept Plan allows for five different land uses on the Kaufman parcel including both residential and commercial. Exhibit D sets forth “Parcel Design Standards” and states “[f]lexibility in determining the final location of the five (5) land uses allowed within the [Kaufman parcel] is an essential ingredient of the Concept Plan.”

¶ 13 Appended to exhibit D is a “Parcel Concept Map” of the Kaufman Parcel. The map is described in exhibit D and states as follows:

“The appended map of the subject parcel is a preliminary land use concept. As such, but within the foregoing design standards, this parcel concept map is subject to revision, amendment or modification as Owner/Developer may hereafter deem consistent with the need for excellence of final design and this Agreement. Its map symbols and indications are only conceptual illustrations and, therefore, are neither dispositive of the final locations of said parcel’s allowed land uses, its use boundaries nor its environmental features. All such matters are reserved for final determination upon Owner/Developer’s plat submissions.”

¶ 14 As set forth in exhibit D, the Subject Property is located within the Kaufman Parcel. The Subject Property contains only designations for residential use and vacant land as depicted in the Parcel Concept Map. Outside the Subject Property but within the Kaufman Parcel, the Parcel Concept Map also provides for commercial development. This commercial development is located on the map along 167th Street and Wolf Road. A total of 10.6 acres of commercial property use is allotted for within the Kaufman Parcel as set forth in the “Table of Proposed Uses” contained in group exhibit C to the Annexation Agreement.

¶ 15 Section 7 of the Annexation Agreement titled “Planned Development – Concept Plan for Subject Property” provides for development of the annexed Spring Creek property. Section 7(B) titled “Uses; Parcel Concept Plan; Design Standards” notes the parcel concept plans and design standards in exhibit D and states as follows:

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