People Ex Rel. Department of Transportation v. Kotara, L.L.C.

884 N.E.2d 1235, 379 Ill. App. 3d 276
CourtAppellate Court of Illinois
DecidedFebruary 29, 2008
Docket3-07-0502
StatusPublished
Cited by9 cases

This text of 884 N.E.2d 1235 (People Ex Rel. Department of Transportation v. Kotara, L.L.C.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People Ex Rel. Department of Transportation v. Kotara, L.L.C., 884 N.E.2d 1235, 379 Ill. App. 3d 276 (Ill. Ct. App. 2008).

Opinion

JUSTICE WRIGHT

delivered the opinion of the court:

On March 7, 2007, the Illinois Department of Transportation (IDOT) brought suit against defendant property owners, Kotara, L.L.C., and Braidkot, Ltd. (hereinafter defendant), and other interested parties 1 to condemn certain real estate under the State’s eminent domain power in connection with plans to improve State Route 113 in Will County. IDOT subsequently moved for immediate vesting of title for approximately 1.929 acres of defendant’s commercial property in Braidwood, Illinois, pursuant to the quick-take provision of the Eminent Domain Act (735 ILCS 30/20 — 5—10(b) (West 2006)). Defendant filed a traverse and motion to dismiss, alleging IDOT was not exercising the right of eminent domain in good faith, because the appraisal of the subject property was not conducted in compliance with accepted appraisal standards. Following a two-day hearing, the trial court granted IDOT’s quick-take motion, entered an order setting preliminary just compensation and denied defendant’s motion to dismiss. Defendant appeals, contending the trial court abused its discretion. For reasons that follow, we reverse and remand for further proceedings.

FACTS

The property at issue in this case is a single-story, 19,000-square-foot grocery store and a 96-vehicle parking lot located along East Main Street (State Route 113) in downtown Braidwood, Illinois. In July 2005, Fred Tadrowski, a real estate appraiser for IDOT, interviewed the grocery store manager to determine the history of the property in anticipation of IDOT’s proposed reconstruction of Route 113, between State Routes 53 and 129. The purpose of the project was to improve traffic flow, install traffic lights at the intersection and increase public safety. IDOT’s proposed reconstruction required partial taking of the property in fee, and both permanent and temporary easements.

Tadrowski used the comparable sales method to calculate the average value per square foot of the grocery store property to be condemned. He determined the value of the average square foot of the lot was $5.10, and the value of the entire parcel before the partial taking was $1,150,000. Based on these figures, Tadrowski determined that the value of 6,316 square feet of the parcel to be taken in fee simple was $38,000, and he valued an additional 5,140 square feet to be taken as a dedication, or perpetual easement, at $52,000. He determined damage to the remainder, due to loss of parking spaces and parking reconstruction, equaled $57,000. IDOT also required a temporary easement for construction purposes during the three-year estimated impressment, which Tadrowski valued at $5,000. In sum, Tadrowski estimated the fair market value of the real estate to be affected by the project was $152,000.

In August 2005, another IDOT appraiser, Charles Southcomb, reviewed Tadrowski’s appraisal. Southcomb disagreed with Tadrowski’s appraisal of the damage to the remainder because of an error in the original engineering report concerning the number of necessary cart returns when the parking lot was reconstructed. Southcomb determined the damage to the remainder should be $72,000, rather than $57,000. Consequently, he concluded the appraised value of the total IDOT taking for the project should be $167,000 rather than $152,000. Southcomb certified that he developed his report under the jurisdictional exception of the Uniform Standards of Professional Appraisal Practice (USPAP) in compliance with the policies and procedures of IDOT and applicable state and federal laws.

After IDOT’s appraisal documents were completed, John Kotara purchased the grocery store property from the estate of Dorothy Testa in November 2005, as part of a package deal that included another grocery store in Coal City, Illinois. At the closing on the two parcels, Kotara certified the value of the Braidwood parcel to be $850,000.

In December 2005, IDOT representatives met with John Kotara, president of the defendant companies, and defendant’s attorney to discuss just compensation for the takings in fee simple, the perpetual easement, the temporary easement and the damage to the remainder. At that time, IDOT offered to compensate defendant in the amount of $167,000 based on Southcomb’s first review of and adjustment to Tadrowski’s appraisal.

Defendant objected to the proposed reduction of parking spaces on the property and to IDOT’s proposal to close the driveway along Route 113. The driveway entrance and exit along Route 113 had not been previously authorized by IDOT but was operational when Kotara purchased the property from the prior owner.

In order to accommodate defendant’s concerns, IDOT engineers offered to reduce the size of the taking by leaving the Route 113 driveway intact but with restricted use as a right-in access only. IDOT also proposed realigning the parking lot spaces by turning them 90 degrees at the State’s expense to run parallel to the store and allowing defendant to retain all 96 of the parking spaces.

In July 2006, following IDOT’s reconfiguration of the project, Southcomb revised his first review report to reflect the reduced taking. Southcomb’s revised review report or second review changed the fair market value of the whole parcel to $875,000, rather than $1,150,000 as reflected in Tadrowski’s original appraisal. As a basis for this reduction, Southcomb’s 2006 revised review report used comparable sales, which included Kotara’s recorded purchase price of $850,000 for the subject property in November 2005.

Southcomb’s revised review report adjusted the value of IDOT’s reduced taking in fee simple to $40,000, rather than Tadrowski’s estimate of $38,000 for the originally proposed taking in fee simple. Southcomb determined damage to the remainder, as modified in response to defendant’s objections, to be $60,000, rather than $72,000, which was Southcomb’s first calculation. Southcomb adjusted the value of the perpetual easement to $35,000, rather than the original amount of $52,000 and agreed that $5,000 remained the proper amount for the temporary easement. In sum, he proposed total compensation in the amount of $140,000 for the smaller taking, rather than the $167,000 originally offered. IDOT made a written offer to defendant in this amount, $140,000, in August 2006.

Defendant’s attorney sent IDOT an e-mail that defendant would accept the offer if Kotara could obtain authorization for both “right-in” and “right-out” access for the driveway on Route 113. IDOT replied that, due to safety considerations, “right-out” access would not be permitted.

On March 6, 2007, after determining further negotiations were futile, IDOT initiated a complaint to condemn defendant’s real estate under the State’s eminent domain power. On March 16, 2007, IDOT moved for an immediate vesting of title under quick-take procedures and sought a preliminary just compensation determination, anticipating a contract “let” date for construction to begin at the site in August 2007. The cause was set for a May 4, 2007, hearing on the quick-take motion.

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Cite This Page — Counsel Stack

Bluebook (online)
884 N.E.2d 1235, 379 Ill. App. 3d 276, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-department-of-transportation-v-kotara-llc-illappct-2008.