Eminent Domain - Loss of Parking

[cjgmbwi]

We have a retail bank branch property that has been appraised by the state for a permanent easement, a construction easement and damages for loss of parking. The new construction will cause us to lose all of our "storefront" parking and cause our customers to walk three times as far to get to the front door. The damage portion for loss of parking was very low and there was no specific basis provided by the appraiser. We feel our property is going to be permanently impaired from a convenience point, which will substantially hurt its value as a banking facililty. Anyone have experience with this issue?

 

[Walter Kirk]

You must address severence damages to the remaining parcel, not just the value of the area being taken.

I was involved in a similar taking many years ago and my client refused the offer. We took the matter to the condemnation commissioners who doubled the amount offered by the state.

You should prepare an appraisal of the subject property employing the hypothetical condition that the easement has been taken.

 

[Pittsburgh Pete]

I'm assuming the lost parking is in the permanent easement area? If in the construction easement it is only lost for a period of time (typically 2-3 years). Most obvious approach to determining damages would be to attempt to measure the rent loss arising from the loss of functional utility. A before and after appraisal would be required given the severance damages--is this how it was addressed or did they simply do a strip appraisal (i.e. valuing the part taken assuming no damages to the remainder).

Could also impact highest and best use as you've indicated.

Common occurance in eminent domain--best to find a local appraiser to prepare an appraisal for you, preferably one who has experience with the state (most eminent domain people look to work for a claimant now and then just so that they can say so on the stand when a lawyer asks if they only do such work for the state). In PA, an allowance of $4,000 (I believe) is available to the claimant for appraisal and legal fees.

 

[GCJim]

I agree with Walter's recommendation above.
Obviously, Parking CAN BE and often IS extremely valuable to a commercial property. Then again, it may not be as valuable as one might think. If the property were mine, based upon what you have written here, I certainly would investigate this further.

I would also have many questions to help to further clarify and shed additional light on your problem. Some would be, is the property located in an area of heavy pedestrian foot-traffic (where people typically park the car, and walk around town?). Is it in a downtown area or a commercial business district? Is parking space extremely scarce, and at a premium? Is there other parking (public, metered, free) very close by?
The answers to these can provide clues & insight.....

 

[CANative]

How far is "three times as far?"

From what I've seen, bank parking isn't as crucial an element as it is with other types of retail.

 

[Pittsburgh Pete]

How far is "three times as far?"

From what I've seen, bank parking isn't as crucial an element as it is with other types of retail.

I recall speaking with a traffic engineer once as we prepared for a court case--he indicated that banks generate more vehicular traffic than other retail and as much as fast food restaurants. The upshot, of course, is that parking is especially important to a bank.

Looks can be deceiving.

 

[GCJim]

How far is "three times as far?"

From what I've seen, bank parking isn't as crucial an element as it is with other types of retail.

Drive-through option? Also, if one has to go inside of the bank, one HAS to go inside of the bank. Usually no other choice, and no way around it.

 

[CANative]

Yeah but the time spent in a bank is miniscule compared to the time spent in other retail operations. Turnover allows smaller parking areas.

 

[Mark K]

Anyone have experience with this issue?

Yes, but it would be impossible to comment intelligently without seeing the subject and the surrounding area.

I'd recommend contacting the closest chapter of the IRWA (Int'l R/W Assoc.) and hire a R/W appraiser experienced in these matters.

http://www.irwaonline.org/eweb/dynamicpage.aspx?webcode=Chapters

I've seen instances where a partial parking loss resulted in a total take of the property and others where no damages were suffered. And there are lots of cases in between.

 

[Pittsburgh Pete]

Yeah but the time spent in a bank is miniscule compared to the time spent in other retail operations. Turnover allows smaller parking areas.

Size is less important than utility and convenience (don't go there!). Take a look around next time you're in the bank. The average age of the people coming and going tend to make the average appraiser look like a young whippersnapper!