Richmond, Fredericksburg & Potomac Railroad v. Metropolitan Washington Airports Authority

468 S.E.2d 90, 251 Va. 201, 1996 Va. LEXIS 33
CourtSupreme Court of Virginia
DecidedMarch 1, 1996
DocketRecord No. 950799
StatusPublished
Cited by14 cases

This text of 468 S.E.2d 90 (Richmond, Fredericksburg & Potomac Railroad v. Metropolitan Washington Airports Authority) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richmond, Fredericksburg & Potomac Railroad v. Metropolitan Washington Airports Authority, 468 S.E.2d 90, 251 Va. 201, 1996 Va. LEXIS 33 (Va. 1996).

Opinion

JUSTICE COMPTON

delivered the opinion of the Court.

In this inverse condemnation case, a landowner seeks a determination in a declaratory judgment proceeding under Code § 8.01-187 that its private property has been taken or damaged for public use without just compensation, within the meaning of Article I, Section 11 of the Constitution of Virginia.

Appellants Richmond, Fredericksburg & Potomac Railroad Company and RF&P Properties, Inc. (collectively RF&P), instituted this action as of July 1, 1992 against appellee Metropolitan Washington Airports Authority. The Authority, an interstate compact entity with the District of Columbia, was created in 1985 to acquire Washington National Airport and Washington Dulles International Airport from the federal government and to operate the respective facilities. Acts 1985, ch. 598. The Authority has the power of eminent domain. Id. § 9.

The subject property is a tract of approximately 41 acres owned by RF&P in Arlington County. The land lies north of Crystal City and lies adjacent on the north northwest to National Airport. About 17 acres of the property lie in the “clear zone” of the Airport’s Runway 15/33.

[204]*204A clear zone, also called a “runway protection zone,” is an area at ground level in which the Federal Aviation Administration (FAA) prohibits any development that would attract a “congregation of people.” The type of development prohibited in airport clear zones includes office buildings and shopping centers. The clear zone for this runway was designated by the FAA as an area at ground level in the shape of a trapezoid, beginning 200 feet from the end of the runway with a base width of 1,000 feet, extending out for 1,700 feet to an outer width of 1,425 feet.

In an amended motion for judgment, RF&P alleged that the Authority, in order to qualify for grant funds under certain federal statutes, was required to give assurances to the FAA that it would obtain either a fee interest “or a strict land use and avigation easement” over National Airport’s clear zone. The RF&P alleged that because National Airport was federally owned and operated until 1987, when the Authority began the Airport’s operation, it had no occasion before that time to participate in the various federal grant programs, and thus was not bound to “enforce” the FAA’s clear zone policy. The RF&P alleged that after the Authority assumed operating control over the Airport, the Authority became obligated to “implement” the FAA’s clear zone policy in order to be eligible for federal funding.

The RF&P further alleged that the subject property is zoned by the County for industrial development, designated M-l and M-2. It asserted that the property’s highest and best use is for operation of commercial office buildings, noting that Crystal City office space has a low vacancy rate because of its proximity to the Pentagon and downtown Washington, D.C.

The RF&P further alleged that it entered into a joint venture agreement in 1986 with the Charles E. Smith Companies to develop an office complex on the subject property. (References in this opinion to “RF&P” in connection with efforts to develop the property will include the Smith Companies.) In the beginning, ten office buildings were planned, as well as construction of above and below ground parking, sidewalks, driveways, and street lighting.

The RF&P further alleged that, beginning in October 1986, it commenced filing the appropriate documents with the FAA seeking a “no hazard determination,” that is, a ruling that its building proposal did not constitute a hazard to air navigation. According to the allegations, the FAA conducted studies and found that a majority of the proposed buildings exceeded FAA height limita[205]*205tions. But the FAA said that even if the building heights were lowered, it would still object to the proposed development because it would introduce a congregation of people into the clear zone.

The RF&P also asserted that it submitted revised proposals to the FAA in July 1987, January 1988, and August 1988. In the final proposal, no occupied buildings were in the clear zone, only a local access road, surface and underground parking, trees, and lights. Finally, RF&P asserted, the FAA issued a “no hazard determination” in September 1988 to expire in March 1990.

The RF&P also alleged that at the time it “was being pressured by the FAA to cancel its plans for development in the Clear Zone,” another landowner began formulating its own plans for development in the immediate area. Vector-Schafran, a partnership, owned a one-acre parcel adjacent to the subject property; almost all of the one acre is within the clear zone. In September 1988, according to the allegations, after Vector-Schafran submitted revised plans, the FAA issued a no hazard determination but said it discouraged development because a congregation of people would be introduced into the clear zone.

The RF&P further alleged that in mid-1988 the Authority “had resisted the FAA’s pressure to force it to obtain property interests sufficient to control the Clear Zone.” But, RF&P asserted, this resistance “began to erode in late 1988.” The RF&P asserted the Authority then began to implement a plan for “massive redevelopment” of National Airport. Under the federal funding statutes, according to the allegations, the Authority was eligible to receive 75 per cent of the costs for certain aspects of the redevelopment from the FAA. Thus, RF&P alleged, the proposed developments by it and Vector-Schafran caused the FAA “to exert increasing pressure” on the Authority to acquire either fee interests or land and avigation easements in the clear zone.

As a result, RF&P asserted, a conditional letter of intent was executed on September 30, 1989 between RF&P and the Authority. In the letter, according to the allegations, RF&P “promised to convey a strict use easement” to the Authority upon commencement of the development. The proposed easement, RF&P asserted, did not permit development in the clear zone, except for roadways, parking, street lighting and “infrastructure support.” The letter provided that it would terminate if the RF&P determined not to proceed with the development.

[206]*206Subsequently, RF&P alleged, the Authority applied for federal grant funds, giving “assurances” in grant agreements in 1990, 1991, and 1992 that it would obtain land use and avigation easements over the clear zone portion of RF&P’s property.

The RF&P further alleged that, after the FAA approved its revised plan in September 1988, RF&P attempted to make the development plan “economically viable.” It alleged that because of the Authority’s “obligation to prevent viable development in the Clear Zone,” RF&P was not able to “implement” its plan. The September 1989 letter of intent “lapsed,” RF&P alleged, when it determined that the development could not proceed and, at that time, “a date no later than November 1991,” RF&P was returned to its “status immediately prior to the execution of the letter of intent.”

Further, RF&P alleged, the Authority, through delay of initiation of condemnation proceedings, attempted to “drive down” the value of the Vector-Schafran property. In 1992, RF&P asserted, the Authority condemned the property and took fee title to it.

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Bluebook (online)
468 S.E.2d 90, 251 Va. 201, 1996 Va. LEXIS 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richmond-fredericksburg-potomac-railroad-v-metropolitan-washington-va-1996.