United States v. 46,672.96 Acres of Land

521 F.2d 13
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 6, 1975
DocketNos. 74-1602, 74-1603, 74-1604 and 74-1605
StatusPublished
Cited by2 cases

This text of 521 F.2d 13 (United States v. 46,672.96 Acres of Land) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. 46,672.96 Acres of Land, 521 F.2d 13 (10th Cir. 1975).

Opinion

DOYLE, Circuit Judge.

It is apparent from the caption that this is a condemnation case. The government challenges the amounts of the awards given first by a Commission and second adopted by the court in three condemnation cases (filed in June 1970). The government’s purpose was to obtain the land for use in connection with the White Sands Missile Range which was operated by the Department of Defense. The total acreage involved was 180,000, but the cases before the court are concerned with 20,000 acres.1 The interest taken is an annual leasehold starting July 1, 1970, and continued from year to year until June 30, 1980. Much of the land involved is leased by the owners from the state.

An ultimate issue in all of these cases is whether it was valid to conclude that the highest and best use of the property was for a missile range and that the values based on this use constitute just compensation to the owners.

The three groups of owners and their properties are:

The Henderson family tract consisting of 2,876.04 acres owned in fee and 4,637.-56 acres of state leased land.

The Martin family land consisting of 180.43 acres owned in fee and 4,996.85 acres of state leased land.

The Sanders family land having 1,520 acres owned in fee and 5,884.43 acres of state leased land. At the time the complaints were filed, the United States had been in possession of the subject lands for approximately 20 years under a prior lease agreement. The Commission determined just compensation.

The interest sought in the land was the same for both the fee and the lease land. It was a leasehold estate renewable for 10 years.

The testimony of the owners described the land, how it was situated, the availability of water and the value.

Two appraisers, qualified as experts, testified for the owners. Mr. Godfrey, one of these, testified that the land was not usable for ranching, subdivision, recreational uses or commercial use. He described the tracts as relatively small and isolated and all are within the outer boundaries of the missile range. Government permission is necessary to obtain access.

Mr. Godfrey concluded that the highest and best use of the property was for missile range purposes. In order to prove value for this purpose, the landowners introduced evidence of leases entered into between the United States and owners of land in the safety zone on the north side of the missile range. These were “co-use” leases under which the United States had the right to require evacuation of persons on the premises when missile firings are made. The government is thus given the right of overflight for a maximum of 25 firings, and the owners are denied the use of their lands for about 60 to 90 days in a year. The leases provide specifically for payment of moving expenses.

The government expert witness, a Mr. Hartón, testified as to the highest and best use of the land and as to value. According to him, different tracts had [15]*15different uses. The highest and best use for some tracts was grazing purposes, some for rural homesites, recreational sites and some for roadside businesses. Hartón said that his conclusions were based on the assumption that the missile range did not exist and that consequently, public access was not limited and missile firings were not made. He admitted that the only use of the land at the time of taking was for use in connection with missile range operation. In Harton’s opinion the value of the land was from $.10 to $.60 per acre depending on availability of water and roads.

Mr. Smith, another appraiser for the landowners, had testified that the land was worth from $1.75 to $1.94 per acre depending on the inflation factor. He derived these values from determining the average paid per acre under the “co-use” leases; he deducted 15% as the average paid in those leases for improvements; he projected the figure to a full year basis on the assumption that the government paid for 60 days use; he added an inflation factor based on either the U.S.D.A. Land Index or the Consumer Price Index.

The Commission initially awarded $1.50 per acre per year. At the same time, it maintained that it had not considered the land’s prior use for missile range purposes. Nor did the Commission explain how it arrived at the figure used. Both sides objected to its report. Thereupon the Commission issued a supplemental report. This explained the basis of the award and found the highest and best use of the land was for overflight, launching and impact of missiles and similar type uses. It was not because the property had been used for such purposes, but because the government was using the land north of the range for overflight purposes. The Commission determined that the appraisals made by the landowners’ expert were realistic and furnished the closest comparisons. The Commission’s amounts were not as high as Mr. Smith had given because the subject lands, unlike the lands involved in the co-use leases, were not being used as ranches. The government objected to the report, but the trial court overruled the objections and adopted the Commission’s report, stating that the Commission had not considered the value of the land after the taking in arriving at just compensation.

The government contends:

1. That the Commission’s finding of highest and best use is clearly erroneous in that the use as a missile range was created solely by the project for which the land was taken;

2. The “co-use” leases were inadmissible as comparable sales since the United States was the lessee and since the leases were for the same project.

I.

WAS IT PERMISSIBLE FOR THE COMMISSION AND THE COURT TO CONSIDER USE AS A MISSILE RANGE AS THE HIGHEST AND BEST USE?

The test to be employed in reviewing a Commission report like the present one is whether the trial court properly determined that the Commission’s award was not clearly erroneous. United States v. 20.53 Acres of Land, 478 F.2d 484 (10th Cir. 1973); United States v. 79.95 Acres of Land, 459 F.2d 185 (10th Cir. 1972); United States v. Corbin, 423 F.2d 821 (10th Cir. 1970); Wilson v. United States, 350 F.2d 901 (10th Cir. 1965). Our task is then to consider the record together with the Commission’s determination of highest and best use and ascertain whether the Commission’s report is clearly erroneous or based on a misapplication of the law.

Highest and best use contemplates a present existing use or one reasonably likely to take place in the near future, whereby availability of this future use would have affected the market price. Wilson v. United States, 350 F.2d 901 (10th Cir. 1965). See, also, United States v. 1,291.83 Acres of Land, 411 F.2d 1081 (6th Cir. 1969); Cameron Development Co. v. United States, 145 F.2d 209 (5th Cir. 1944). Where, however, a [16]

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521 F.2d 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-4667296-acres-of-land-ca10-1975.