United States v. Certain Parcel of Land in Jackson County

322 F. Supp. 841, 1971 U.S. Dist. LEXIS 15061
CourtDistrict Court, W.D. Missouri
DecidedJanuary 14, 1971
DocketNo. 15918-1
StatusPublished
Cited by5 cases

This text of 322 F. Supp. 841 (United States v. Certain Parcel of Land in Jackson County) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Certain Parcel of Land in Jackson County, 322 F. Supp. 841, 1971 U.S. Dist. LEXIS 15061 (W.D. Mo. 1971).

Opinion

MEMORANDUM AND ORDER

JOHN W. OLIVER, District Judge.

This is a condemnation action in which Parcel Number 131, a parking lot of 17,-220 square feet in downtown Kansas City, Missouri, was taken from the defendant Wyandotte-Central Corporation. That corporation also owned a contiguous parcel of land comprising 16,-040.6 square feet which adj’oined Parcel No. 131 on the south. Both parcels fronted on Central Street north of 16th Street. Before the Government’s acquisition the north 34 feet of the subj'ect property was rented to a private company for private use. All of the remainder of the property was rented to a public parking lot operator for public use.

The defendant corporation, as well as the Sixteenth Street Corporation and Mid-Town Development Corporation were wholly owned subsidiaries of the Atlas Acceptance Corporation. The majority of the stock of Atlas was owned by General Harold L. Oppenheimer and certain close relatives of his. Those individuals also owned a maj’ority of the stock of Airport-Auditorium Motel Corporation. At the time Parcel No. 131 was taken, the associated Oppenheimer companies owned or held options to buy (later exercised) various other tracts in [843]*843the general vicinity of Parcel No. 131. It is clear that the Oppenheimer interests intended at some future time to consolidate all of the tracts described into an urban redevelopment project under provisions of Missouri law.

After appropriate pretrial procedures, the parties entered into a stipulation in which the following legal questions were submitted to the Court without a jury:

1. Whether immediately before the taking of Parcel No. 131 by plaintiff on March 9, 1966, there was a reasonable probability that other tracts of land either not owned by the defendant Wyandotte-Central Corporation or by parties closely affiliated with said defendant, could be combined therewith for an urban redevelopment project through the exercise of the power of eminent domain by an urban redevelopment corporation organized under Chapter 353, V.A.M.S.; and, if so, (a) whether such power of eminent domain can be considered as a factor in determining the issue of just compensation for the taking of Parcel No. 131; and (b) whether the exemption from, or reduction of, general ad valorem taxes on land within such an urban redevelopment project (as provided in Section 353.110, V.A.M.S.) can be considered as a factor in determining said issue of just compensation?
2. Whether on March 9, 1966, there was a reasonable probability that the tracts of land listed in Exhibit A (attached hereto and made a part hereof), or any of them, could be acquired within the reasonably near future either by the defendant Wyandotte-Central Corporation, or by Atlas Acceptance Corporation, or by any corporate subsidiary of the latter?
3. Whether on March 9, 1966, for the purpose of assessing severance damages, if any, the land more particularly described as the south 37.5 feet of Lot 47, all of Lots 48, 49, and 50 and the north 15 feet of Lot 51, Block 4, J. H. McGee’s Addition, a subdivision in Kansas City, Jackson County, Missouri, was a “single tract” to the exclusion of any other property?
4. If the answer to the preceding question is in the negative, then what other tract or tracts of land shall be considered as a “single tract” along with the tract of land described in the preceding question, for the purpose of assessing severance damages, if any?

A plenary evidentiary hearing was held on November 24, and 25, 1970, at which the Court received evidence on the stipulated issues. During the course of that hearing three additional legal questions came into focus. The parties therefore entered into a supplemental stipulation in which they agreed that the following three additional legal questions be submitted for preliminary determination:

5. Whether the special issues submitted to the Court in Court’s Exhibit No. 1, or any of them, are issues for the trial judge to decide finally before, and exclusive of, the submission of the general issue of just compensation to a jury?
6. Whether testimony given by a person other than a landowner or his authorized agent may be admissible in evidence for any purpose to prove or to tend to prove that such landowner would sell his property at a certain price to another within a reasonable time; and
7. Whether admissible for any purpose is so much of the testimony of Harold L. Oppenheimer, Lee Barewin, and William A. Hutchings at the plenary hearing held herein on November 24 and 25, 1970, as gave the responses of the respective landowners to attempts of the former to purchase for, or on behalf of, the defendant Atlas Acceptance Corporation, or any corporate subsidiary of the latter, the properties listed in paragraph A of Court’s Exhibit No. 1?

The special' issues submitted under the two stipulations will be determined in the order of their' submission.

[844]*844I.

In regard to the first issue submitted we find and conclude (a) that the power of eminent domain can not be considered as a factor in determining the issue of just compensation for the taking of parcel No. 131; and (b) that the exemption from, or reduction of, general ad valorem taxes on land within an urban redevelopment project can not be considered as a factor in determining such issue of just compensation.

United States ex rel. T. V. A. v. Powelson, 319 U.S. 266, 63 S.Ct. 1047, 87 L.Ed. 1390 (1943), is controlling. Indeed, the factual situation presented in this case is at least one or two steps beyond that presented in Powelson. In Powelson, the landowner in fact was vested with the power of eminent domain. In this case the stockholders of the defendant had only the hope that some day property owned by the defendant would, at some indefinite future time, become a part of the property of an urban redevelopment corporation, which, under applicable State law, would be vested with the power of eminent domain.

But, even if it could be assumed that defendant in fact possessed such a power, the principles articulated in Powelson forbid the consideration of such a factor in the determination of the issue of just compensation. Powelson explicitly states that the “privilege to use the power of eminent domain may not be considered in determining whether there is a reasonable probability of the lands in question being combined with other tracts * * * in the reasonably near future” (319 U.S. at 285, 63 S.Ct. at 1057). That ease further concluded that “profits, attributable to the enterprise which respondent hoped to launch, are inadmissible as evidence of the value of the lands which were taken;” that the landowner is “of course, entitled to the market value of the property fairly determined;” and that such “value should be found in accordance with the established rules (United States v. Miller, supra [317 U.S. 369, 63 S.Ct. 276, 87 L.Ed. 336 (1942)]) — uninfluenced, so far as practicable, by the circumstance that he whose lands are condemned has the power of eminent domain” (Ibid, at 285, 63 S.Ct. at 1058).

The principles stated in Powelson,

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Bluebook (online)
322 F. Supp. 841, 1971 U.S. Dist. LEXIS 15061, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-certain-parcel-of-land-in-jackson-county-mowd-1971.