A Lincoln County jury has rendered a decision on a 17.7 acre piece of property owned by Pamelia and Michael Wilkinson, which the North Carolina Department of Transportation is taking by condemnation under Eminent Domain. NCDOT appraised the land for $187,225 and eventually offered to pay $550,000. However, Mr. and Mrs. Wilkinson thought the land was worth $5.7 million!
Was this just an example of a property owner trying to gouge the state out of money?
Mike Lewis, the attorney for the Wilkinsons says, “Not at all.” Apparently Mrs. Wilkinson had a real estate broker do a valuation of the property and she had comparables that were not allowed into evidence. My guess is the broker probably used properties that were not closed, or were not nearly as close to the subject property as are necessary.
Okay, I know. By now you just want to know how much the jury awarded them right? Not yet, remember, I’m a real estate instructor!
If you will recall back to your days as a pre-license student, you will remember the concept of Eminent Domain. It is where the state can take a property from a private owner if it is for the benefit of the state. The property must first be condemned, and then it is taken.
This is a regular occurrence for NCDOT, especially with a rapidly growing state that is now the 9th most populous in the United States. If you live in Raleigh, Durham or Chapel Hill, you have likely driven I-540 and the 540 Toll Road. The 540 project could not have been completed in the section already finished without condemnation of many properties.
During the trial, NCDOT showed evidence that in a best-case scenario (Highest and Best Use), the property in question was worth $314,250, a far cry from the $5.7 million number set forth by the owners.
Ultimately, the jury found the evidence from NCDOT more compelling and chose to award the Wilkinsons with $314,250. Add on the interest and they will receive $376,280, almost $200,000 less than NCDOT previously offered and $5.3 million less than they were hoping.
I sure hope they had not taken out a second mortgage on the property based on that $5.7 million!