Proctor v. Dennis, Unpublished Decision (8-16-2006)

2006 Ohio 4442
CourtOhio Court of Appeals
DecidedAugust 16, 2006
DocketNo. 05-CA-82.
StatusUnpublished
Cited by1 cases

This text of 2006 Ohio 4442 (Proctor v. Dennis, Unpublished Decision (8-16-2006)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Proctor v. Dennis, Unpublished Decision (8-16-2006), 2006 Ohio 4442 (Ohio Ct. App. 2006).

Opinion

OPINION
{¶ 1} This is an appeal from a judgment entered on a jury verdict determining compensation and damages to the residue in a partial appropriation action brought by the appellant Director of the Ohio Department of Transportation ("ODOT"), in the Fairfield County Common Pleas Court.

{¶ 2} The subject property consisted of three parcels of land that had been inherited by Defendant-Appellees Keith Dennis, Gary Dennis, and Dean Dennis ("Dennis"), in early 2000. (3T. at 665) ODOT took possession in March, 2003, and the separate appropriation actions were consolidated for trial and heard by a jury in May, 2005.

{¶ 3} In order to eliminate a traffic hazard created by the increased use of US 33 within the City of Lancaster, ODOT created a 14 mile, freeway style four lane by-pass, through rural portions of southern Fairfield County. (1T. at 93-95; 100). As part of this project, ODOT appropriated 26.362 acres from 144.79 acres of corn and soybean fields near Tarkiln Road and existing US 33 within Berne Township. (Id. at 98-99, 111-112, 114; 3T. at 669). These properties were designated on ODOT right of way and construction plans as Parcels 21, 60, and 47. (1T.at 103).

{¶ 4} Parcel 21 is a 53.220 acre tract located on the north side of Tarkiln Road that was bisected with a 17.738 acre take. (Id. at 111). Parcel 60 is a 23.010 acre tract located directly opposite of Parcel 21 on the south side of Tarkiln Road. The take area in Parcel 60 is 5.799 acres from its eastern edge, and used for construction of (new) Old Logan Road. (Id. at 114). Parcel 47 is not contiguous with the other parcels, but instead is located approximately one-eighth mile due east of Parcels 21 and 60, where Tarkiln Road dead ends into existing US 33. Parcel 47 is a 68.560 acre tract from which 2.825 acres was taken for construction of new Horns Mill Road. (1T.at 106; 107; 114).

{¶ 5} The corn and soybean fields of the Dennis property sit atop sand and gravel deposits, which stretch through a corridor from the southern portion of Lancaster down to the well fields in Sugar Grove. (Id. at119-200; 264-65). The property is zoned rural residential and is part of a larger Dennis farming operation. (3T. at 637).

{¶ 6} Located directly to the north of the Dennis property is a sand and gravel mine operated by Shelly Materials, Inc. ("Shelly"). Shelly is a large mineral extraction company, which operates numerous mines in, among others, Franklin, Delaware, and Licking counties that service the sand and gravel needs of central Ohio. (2T. at 465; 466; 469). Shelly, and its predecessors, have been extracting minerals from that land for at least half a century. (3T. at 670-71). The Shelly property is also zoned rural residential, however, the mining operation predates the adoption of the zoning code and was therefore grandfathered. (Id. at 655). Shelly's sand and gravel operation account for 99% of all the aggregate mined in Fairfield County, averaging 900,000 tons per year. (2T. at 271; 462).

{¶ 7} Dennis presented the testimony of mining consultant, Uwe Seeler, a mining expert with 30 years of experience in preparing mining plans and obtaining necessary permits from state agencies in order to operate a mine in Ohio. (2T. at 300). In order to lawfully mine the property, Mr. Seeler testified that Dennis would be required to obtain a mining permit and proper zoning. (Id. at 325).

{¶ 8} Mr. Seeler prepared a mining plan for the Dennis' property and testified that the land was "absolutely" suitable for mining sand and gravel prior to the take by ODOT. (Id. at 327). He further testified, without objection by ODOT, that it was likely that all necessary permits for mining on the property would be obtained from the State. (Id. at 326-27).

{¶ 9} The Dennis brothers also introduced evidence through James Rivers, who had four decades of experience in the sand and gravel mining industry, including managing sand and gravel operations. (2T. at 364-72). Rivers, based upon a marketing study he conducted, opined that a significant, viable market existed for the sand and gravel reserves on the Dennis brother's property. (Id. at 412-19). Rivers testified that the sand and gravel produced from the Dennis property would participate in the vigorous, six-county aggregate market encompassing the Columbus metropolitan area. (Id.).

{¶ 10} At trial, the Dennis brothers presented an expert appraiser to testify as to the fair market value of the Dennis property as mineable property. Specifically, Dr. Robert Weiler an appraiser with over forty-five years experience gave detailed testimony concerning the value of the land taken and damages to the three residues. (3T. at 505-557). Mr. Weiler testified that the highest and best use for the Dennis property prior to the take was for sand and gravel mining. In his appraisal, Weiler utilized both a comparable sales analysis as well as a discounted cash flow analysis. Weiler testified that comparable sales of sand and gravel property were in the range of $14,000.00 to $23,000.00 per acre and reached the ultimate conclusion that the value of the property under this approach was $1.47 million. Id. at 550; 553).

{¶ 11} On a discounted cash flow basis, the value of the take and the damage to the residues on parcels 21 and 60 was $1.053 million, i.e. $417,664.00 for the land taken and $635,542.00 for damage to the residue. (3T. at 521-22; 555-56).

{¶ 12} Keith Dennis, one of the Dennis brothers, testified that he believed the property was worth $19,000.00 per acre before the take but only $3,500.00 per acre after ODOT took his property. (3T. at 707-09). He therefore placed the value of the take of parcels 21 and 60 at $447,203.00 and the damage to the residue at $767,936.00, for total compensation due for parcels 21 and 60 of $1.215 million.

{¶ 13} Mike Juniper, the Zoning Inspector for Berne Township, testified that it was likely that a zoning permit would be granted; in part because Shelly was mining right next door and preliminary approval for mining had at the time of trial been given for two additional neighboring parcels. (3T. at 625-26). He stated that the factors indicating a likelihood of a rezoning change would be the existing operation of the Shelly mine next door, and that Shelly had recently made rezoning applications for the Bigham/Kremer properties, which had been recommended for approval by the Regional Planning Commission and the Zoning Commission. (3T at 625-26; 631; 634). On cross-examination, Mr. Juniper admitted that Shelly's mine had predated the zoning code and therefore their existing operations were grandfathered in under the zoning classification. (Id. at 655). Secondly, he admitted that despite the recommendations, the biggest obstacle for those applications still lay ahead — namely, the opportunity for the Township Trustees to hear the comments and concerns of the neighbors. (Id. at 626, 639).

{¶ 14} Mr. Juniper further testified that the Township Trustees had not yet approved the rezoning applications. (Id. at 656).

{¶ 15} ODOT presented the testimony of appraiser John Chance. Mr. Chance has been an appraiser for 25 years, and has done over 100 appraisals specifically regarding mineral properties. (3T.at 732; 739; 739). Also testifying for ODOT was appraiser Gerald Clark. Mr. Clark has been appraising property for 19 years, with specific mineral expertise since 1996. (4Tat 971; 975).

{¶ 16}

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Related

State v. Sowell, 06ap-443 (6-30-2008)
2008 Ohio 3285 (Ohio Court of Appeals, 2008)

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Bluebook (online)
2006 Ohio 4442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/proctor-v-dennis-unpublished-decision-8-16-2006-ohioctapp-2006.