State, Department of Highways v. Romano

316 So. 2d 129, 1975 La. App. LEXIS 3837
CourtLouisiana Court of Appeal
DecidedJuly 14, 1975
Docket10347
StatusPublished
Cited by6 cases

This text of 316 So. 2d 129 (State, Department of Highways v. Romano) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State, Department of Highways v. Romano, 316 So. 2d 129, 1975 La. App. LEXIS 3837 (La. Ct. App. 1975).

Opinion

316 So.2d 129 (1975)

STATE of Louisiana, Through the DEPARTMENT OF HIGHWAYS
v.
John P. ROMANO.

No. 10347.

Court of Appeal of Louisiana, First Circuit.

July 14, 1975.

*130 Johnie E. Branch, Jr., Baton Rouge, and Alvin J. Liska, New Orleans, Asst. Gen. Counsel, Highway Dept., for appellant.

Clint L. Pierson, Jr., Covington, for appellee.

Before LANDRY, BLANCHE and YELVERTON, JJ.

BLANCHE, Judge.

The State of Louisiana, through the Department of Highways, takes this appeal from a judgment of the Twenty-second Judicial District Court which awarded the defendant, John P. Romano, the sum of $8,953.15, less a credit in the amount of $2,261 for a prior deposit, plus interest on the balance from June 7, 1971, until paid, and for all costs of the proceedings. In addition, the Department was cast with $1,300 each for the defendant's two experts, taxed as court costs.

This is an expropriation proceeding pursuant to State Project No. 13-11-07, Federal Aid Project No. F—76(14), Chinchuba-Covington Highway, State Route Louisiana-U.S. 190, St. Tammany Parish, whereby the State of Louisiana expropriated 2,415 square feet of frontage from the defendant's land. The date of taking was June 8, 1971.

The property is located on the east side of U.S. Highway 190, approximately four miles south of the City of Covington, Louisiana. Prior to the taking, the tract measured 119.92 feet front on the highway by a depth of 218.7 feet. It is bounded on the south side by Sixteenth Street, a dedicated but unopened street.

At the time of the taking, subject property was improved with a one-story frame and brick veneer building with an asphalt shingle roof, constructed on a slab measuring 76 feet front by 36 feet deep. It was utilized as a cocktail lounge and snack bar by the defendant. The part taken was a strip across the entire frontage of the property 20.14 feet in depth on the north side and 20.06 feet on the south edge. The improvements taken were part of the shell parking surface and a portion of a small board fence on the north side. The taking also necessitated the relocation of two advertising signs.

The experts for both sides agreed that the highest and best use of the property was highway commercial.

Henry B. Breeding, appearing for the Department, used five comparable sales and arrived at a value of 75 cents per square foot, or $2,173 for the part taken. His comparables ranged from 65 to 80 cents per square foot, and he refused to adjust those figures for the passage of time.

Regarding severance damages, he used the cost approach, less depreciation, before and after the taking, and concluded that subsequent to the taking the subject property had increased in value by $18,000 and, therefore, severance damages were not due. By adding $362 for the improvements taken to the $1,811 land value, Breeding concluded total compensation due to the defendant was $2,173.

The Department's other expert, Edward cents per square foot, or $1,691 for the J. Deano, used four of the same comparables as did Breeding, and arrived at 70 land taken. He, like Breeding, refused to adjust for time, explaining that he could not find a definite trend of price increases in the area.

He denied severance damages were due, even though the parking in front of the defendant's establishment was reduced by approximately one-half. The total available parking area for the entire tract was reduced by approximately 30 percent. He, *131 like Breeding, was of the opinion that the subject tract was more valuable after the taking than before.

By adding $413 for the improvements taken to the $1,691 land value, Deano arrived at a just compensation due of $2,104.

Frank J. Patecek, for the defendant, used three comparable sales, two of which were used by the Department's experts, and arrived at $1.20 per square foot, or $2,898. Even though Patecek used similar comparables to those used by the Department, he reached a much higher value by adjusting each sale upward for time at the rate of one percent per month. His justification for doing so was a study he made of area sales from 1950 up until the date of taking. Even though he could not show increases in value during the one and one-half years prior to the taking, he was of the opinion that his study established that increases would take place on a steady basis at approximately 12 percent per year.

In another departure from the Department's experts, Patecek awarded severance damages. Prior to the taking, the front of defendant's establishment was 70 feet from the highway. After the taking, the depth was reduced to 50 feet. As a result, Patecek argued that prior to the taking, eighteen cars could be parked in front of the establishment but after the taking only nine cars could be so parked, reflecting a 50 percent loss in parking capability. Even though there is ample room in the rear for parking, he opined that rear parking is not good for night business because people are afraid to venture into the rear after dark. As a result, the defendant would have to spend a good sum of money to illuminate the rear and also build a rear entrance.

Judging from his experience as a realtor, Patecek concluded that the subject property suffered a functional depreciation of 14 percent as a result of the 30 percent reduction of the total available parking space. He was especially concerned that the entire loss of parking space came from the front of the defendant's property. He acknowledged that rear parking is available but stated that it is not as desirable as front parking for highway commercial use, even in daylight hours.

Patecek determined the entire property on the day of taking was worth $67,685.76. After adding $970 for the value of the improvements taken to the $2,898 land value, he arrived at a total taking of $3,868. He subtracted this figure from the value of the property on the date of taking and arrived at a value after taking of $63,817.76. His 14 percent functional depreciation for loss of parking, therefore, totaled $8,934.48. After allowing an additional $200 to relocate two signs upon the premises, he added the land value, the value of the improvements taken, and severance damages, for a total just compensation due of $13,002.48.

The defendant's other appraiser, John Lejeune, used three comparables, two of which were the same as Patecek's. The third was the judicial valuation of similarly situated property at 90 cents per square foot in State, Department of Highways v. Smith, 270 So.2d 178 (La.App. 1st Cir. 1972), writ refused, La., 272 So.2d 379 (1973). He, too, adjusted his comparables for time and arrived at the figure of $1.15 per square foot, or $2,777.

Regarding severance damages, he stated the defendant would be forced to construct a rear entrance to the establishment in view of the decreased parking spaces available in the front. In this regard he noted that the building was not designed for a rear entrance. He was, therefore, of the opinion that severance damages should be awarded, especially in view of the fact that the decrease in parking in front of the establishment made it less attractive to highway passersby. He noted that 50 percent of the available front parking space was lost; and whereas before the taking the owner enjoyed optimal parking facilities, after the taking it was somewhat reduced.

*132 He admitted that even if an establishment such as the defendant's did not have front parking, the owner could, nevertheless, make money in spite of it.

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Bluebook (online)
316 So. 2d 129, 1975 La. App. LEXIS 3837, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-department-of-highways-v-romano-lactapp-1975.