Thomas W. Finucane Corp. v. State

52 Misc. 2d 462, 276 N.Y.S.2d 225, 1966 N.Y. Misc. LEXIS 1225
CourtNew York Court of Claims
DecidedDecember 15, 1966
DocketClaim No. 39881
StatusPublished
Cited by2 cases

This text of 52 Misc. 2d 462 (Thomas W. Finucane Corp. v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas W. Finucane Corp. v. State, 52 Misc. 2d 462, 276 N.Y.S.2d 225, 1966 N.Y. Misc. LEXIS 1225 (N.Y. Super. Ct. 1966).

Opinion

J. Eugene Goddard, J.

This case comes to us for retrial having been remitted from the Appellate Division. (26 A D 2d 768.)

This is a claim for the appropriation of claimant’s land pursuant to section 30 of the Highway Law and acts amendatory thereto, which proceeding is described as Eastern Expressway Interstate Route Connection 580-2-7, Monroe County, on Map No. 375, Parcel Nos. 379 and 380 and a temporary easement on Map No. 376, Parcel No. 381. The aforesaid maps and description were filed in Monroe County Clerk’s office on March 31, 1960, and personal service was made on the claimant on March 31,1960. The claim was filed with the Clerk of the Court of Claims and the Attorney-General on November 28, 1961 and has not been assigned or submitted to any other court or tribunal for audit or determination, except for the prior trial had herein. The court adopts the description of the appropriated property as shown on the map and description filed in the Monroe County [464]*464Clerk’s office, a copy of which is attached to the claim and same is incorporated herein by reference.

Claimant was the owner of the property by reason of eight deeds all recorded in Monroe County Clerk’s office.

Before the appropriation the property consisted of a shopping center at 1880-1920 Bast Avenue, Rochester, New York. It had a frontage of 285.05 feet on the north side of East Avenue and ran through to the south side of University Avenue where the frontage was 351.19 feet. Both road frontages were at grade level. The easterly boundary line was 176.22 feet and the westerly boundary line was irregular extending 167.31 feet northerly from Bast Avenue, then westerly 65 feet and then 101.84 feet northerly to University Avenue, containing approximately 65,899 square feet. The property was zoned “B-2 Business District ’ ’.

The property was improved with a one-story building of masonry block construction with a flat built-up roof. It contained 17,463 square feet of area and a loading dock in the rear which occupied 504 square feet. The building was divided into three stores as follows:

1880 Bast Avenue contained a rentable area of 3,858 square feet. It was leased to Main Street Daw Drug Co., Inc. for a retail drug store and sundry lines under an eight-year lease expiring December 1, 1964 at an annual rental of $5,000, which represented $1.30 per square foot.

1882 Bast Avenue contained a rental area of 11,985 square feet. It was leased to Loblaw, Inc. for a chain grocery store under a 10-year lease expiring January 1, 1965 at an annual rental of $15,300 which represented $1.28 per square foot.

1884 Bast Avenue contained a rental area of 1,620 square feet. It was leased to Star Palace Laundry & Dry Cleaners under a 5-year lease expiring November 1, 1961 at an annual rental of $3,000, which represents $1.85 per square foot.

The tenants were responsible for water, gas, electricity, heat, and ordinary repairs. The owner was responsible for taxes, insurance, major structural and exterior repairs, maintenance and lighting of the parking area.

The paved land area, after deducting the areas occupied by the building, loading docks and sidewalks comprised approximately 45,500 square feet which was sufficient to provide 127 parking spaces for automobiles. This parking area complied with the requirements under the Zoning Ordinance of the City of Rochester which provides that the ratio of parking space to occupied store space shall be 3 to 1.

[465]*465The claimant offered the testimony of two real estate appraisers and a qualified expert on parking facilities. Witness G-runert testified that the use of the property as a small neighborhood shopping center was an under-improvement of the site; that its highest and best use prior to the appropriation was for the construction of a more profitable commercial building such as a multiple store office building or as a motel. He valued the land at $238,400 based on $500 per unit front foot, said unit being considered as a strip of land 1 foot wide by 100 feet in depth, allowing a declining percentage for value of land beyond the 100-foot depth. He further testified that the present rent scale was less than the true rental value of the premises largely because the rents had been established under leases made several years prior to the date of taking. He gave a figure of $2.25 per square foot as the true economic value of the rented premises and by capitalizing this figure, came up with a total valuation on the date of taking of $316,500.

Witness Borchard, the other appraiser for the claimant, agreed that the highest and best use of the property prior to the taking was for a retail and office building. He valued the land which he estimated contained 67,012 square feet, rather than the 65,899 as found by the court, at $3.00 per square foot which he rounded to $201,000 and the depreciated value of the building at $169,500 for a total of $365,000.

The State’s appraiser testified that the highest and best use of the subject property prior to the appropriation was its current use as a shopping center. He used three approaches to arrive at the fair and reasonable value. Under the market approach he cited three comparable sales of shopping centers and by dividing the sale price by the number of square feet of store space, arrived at a value of $14 per square foot and by multiplying this by 17,208 square feet arrived at a total before value of $241,000 for the subject property. Under this method he disregarded entirely the area devoted to parking. His comparable sales did not have the 3:1 ratio of the subject property, and the court finds that such a method of arriving at value is worthless under these circumstances. Under the income method, he based his figures on the existing rents at $1.35 per square foot for the balance of the lease terms (about 4 years) and then estimated an increase to $1.50 per square foot for the next 15 years and under the Inwood premises, he capitalized this to arrive at a valuation of $214,600, including the reversionary value of the land based on an original $2 per square foot. The court notes that the Inwood premises has been criticized in many [466]*466cases unless it is for a specialized use or where we have wasting assets. Under his cost approach, he gave a total valuation of $264,400 based on an estimate to reconstruct the building at $10 per square foot, depreciated 30%, or $132,600 to which he added $131,800 for the land value. After consideration of his three methods, he concluded $235,000 represented his estimate of value.

The court has again viewed the property for the purposes of this decision, but has been familiar with it for over 40 years. This is a prime commercial location on the fringe of the city limits and adjacent to the Towns of Brighton and Pittsford and the highest priced residential community in this area. The subject property was in the approximate center of a % mile strip called a B-2 or Community Business District. The latest map published by the Department of Public Works of the State of New York showed the average daily traffic count at this location was 18,300 vehicles, which was the highest count at the point of entry of any traffic artery leading into the City of Rochester.

The three real estate appraisers put the land value at $131,800, $201,000 and $238,425. The court finds that the fair and reasonable value of the land at the time of the appropriation was $3 per square foot, or $197,697.

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Bluebook (online)
52 Misc. 2d 462, 276 N.Y.S.2d 225, 1966 N.Y. Misc. LEXIS 1225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-w-finucane-corp-v-state-nyclaimsct-1966.