TRIALS AND TRIBULATIONS OF
A ROAD WIDENING PROJECT
Paula Gutierrez Baeza, Esq.
Richards, Watson & Gershon
Amer Attar, P.E., MBA
City of Temecula
Joyce L. Riggs, MAI, SR/WA
Riggs & Riggs, Inc.
PROJECT DESCRIPTION
 Purpose of Project
 Road is a Major Arterial
 Realign and Widen Road to Ultimate Configuration
 Connect Road to a Proposed Major Arterial
Consistent with General Plan
 Road Before Project
 Center Dual Left Turn Lane
 Dead-Ends at a Bank Building South of Project
PROJECT DESCRIPTION
 Road After Project
 Two Lanes in Each Direction
 Landscaped Median
 Ability to Connect to Future Major Road
 Full Street improvements
PROPERTY DESCRIPTION
 Industrial Building
 Light Industrial Zoning
 Business Park General Plan
 Low Building Coverage Ratio
 Access From One Driveway
 Need for Small Area of Fee and Temporary
Construction Easement for Project
IMPACTS TO PROPERTY
 Acquired Property and TCE
 Landscaping & Internal Circulation Road
Impacts
 Widen Driveway
 New Raised Median – Restrict Left Turns
 Travel Distance for Truck from Freeway Before vs. After Condition
Driveway Before
No Raised Median
Driveway After
Raised Median
Original Truck
Route from
Freeway
3800 Ft ~ ¾ Mile
New Truck Routes
from Freeway
9500 Ft ~ 1 ¾ Miles
10800 Ft ~ 2 Miles
NEGOTIATIONS WITH OWNER
 Attempts to Acquire Property with Owner
by Negotiated Agreement
 No Success
 Council Adopted Resolution of Necessity
 Complaint Filed
APPRAISAL VALUATION
 Valuation of Larger Parcel – Entire Property
 Income Capitalization
 Sales Comparison Approach
 Valuation of Land Value – As Acquisition Area Included
Land and Only Site Improvements
 Value of Fee Part Acquired (Land & Site Improvements)
 Value of Remainder After Acquisition
 Value of Temporary Construction Easement
VALUATION OF THE PART ACQUIRED
Land Area
13,363 SF
$/SF
x
$7.50
% Rights Acquired
x
Indicated Value
100%
$100,223
Value of the Land - Fee Part Acquired
$100,223
SITE IMPROVEMENST/COMPONENT S
UNIT
UNIT PRICE
COST

Asphalt Paving
5,850 SF
$2.50 PSF
$14,625

Total Site Improvements

Indirect Costs (13.0% of Direct Costs)

Total Direct and Indirect Costs

Entrepreneurial Profit (15.0% of Total)

Replacement Cost New of Hardscape Improvements
$19,005

Less: Depreciation (50.0%)
$ 9,503

Depreciated Replacement Cost New of Hardscape
$ 9,503

Landscaping:

Grass with Sprinklers
7,513 SF
$2.50 PSF
$18,783

Trees
2
$350.00 EA
$

Total Landscaping Costs

Indirect Costs (13.0% of Direct Costs)

Total Direct and Indirect Costs

Entrepreneurial Profit (15.0% of Total)

Replacement Costs New of Landscaping
$25,318
Estimated Value in Place of the Improvements
$34,821
$14,625
$1,901
$16,526
$2,479
700
$19,483
$2,533
$22,015
$3,302
Summary of Part Acquired Valuation
Value of the Land to be Acquired in Fee
$100,223
Plus: Value of the Improvements to be Acquired
34,821
Total Value of the Fee Part Acquired
$135,044
***
Area
Rate
9,360 SF x
$7.50/SF
Percentage
x
10%
Term
x
1.25 Year
Value of Land Area in Temporary Construction Easement
Value
=
$8,775
$8,775
All site improvements within the temporary construction easement area
will be replaced in kind as part of the project.
SUMMARY OF VALUE CONCLUSIONS
Value of the Whole Before Acquisition
$2,780,000
217,804 SF - site (fee) + improvements
Value of the Part Acquired as Part of the Whole
(Fee) 13,363 SF
of Land
Site Improvements
$135,044
$100,223
$ 34,821
Value of the Remainder as Part of the Whole
$2,644,956
Value of the Remainder After
Acquisition, Disregarding Benefits
$2,644,956
Severance Damages
$ -0-
Value of the Remainder After Acquisition,
Considering Benefits
$2,644,956
Less: Benefits
$ -0-
Net Severance Damages
$
-0-
Estimated Just Compensation
$135,044
Value of Temporary Construction Easement Part Acquired:
TCE
9,360 SF of land
$ 8,775
Just Compensation for Temporary Construction Easement
$ 8,775
Total Estimated Just Compensation
$143,819
$145,000
Rounded To:
LEGAL PROCESS











Resolution of Necessity
Filing of Complaint in Eminent Domain
Answers Filed by Property Owner and Lessee
Meetings on Site with Property Owner and Lessee
Deposition of Lessee
Mediation to Narrow Issues
Exchange of Expert Valuation Data
Settlement with Lessee
Mediation on Valuation Issues
No Settlement with Owner
Deposition of Experts
DEFENDANT’S APPRAISER’S VALUATION

Value of the Larger Parcel

Value of Fee Part Acquired
 Land Value 13,363 SF @ $13.55/SF
 Improvements in Fee Area:
 Three Mature Trees
 Grass & Sprinkler System
 Chain Link Fencing w/Barb Wire
 Asphalt Paving
 Total Improvements
$3,600,000
$ 286,240
$181,100
$50,000
$41,535
$ 1,875
$11,730
$105,140

Temporary Construction Easement

Cost to Cure Damages (15% of $3,600,000)
$ 540,000

Severance Damages (20% of $3,600,000)
$ 720,000

Total Just Compensation
$1,546,140
- 0-
DEPOSITION OF EXPERTS
 Appraisal – Weakness in Property Owner’s Appraisal
 Errors Found
 Methodology Problems
 Architect
 Appraiser – 2nd Day Follow Up Questions
 Traffic Engineer
 Weakness in Analysis
 Different Scale Used for Drawings
 Truck Turning Radius Different than Scale Used for Underlying
Architectural Site Drawings
Truck Path
Turning In
Truck Path
Turning Out
FURTHER SETTLEMENT TALKS
 After Depositions
 Identified Strengths and Weaknesses of Case
 Prepared Motions
 Consideration of Trial Costs
 Legal
 Expert Fees
 Exhibits
 Stronger Negotiating Position After Depositions
 Owner Settled for Less Than Original Offer
WRAP UP
 Owner’s Purpose in Challenging Acquisition –
Rezone Property
Light Industrial vs. Service Commercial