OPINION
Opinion by
This is a condemnation case. In three separate transactions, appellee Carlisle Grace, Ltd. acquired 89.714 acres of unimproved contiguous real property in Collin County, Texas. The parties referred to the property as the 56.43 acre tract, the 22.677 acre tract, and the 10.607 acre tract, with the latter two acquisitions also referred to as the 33.284 acres.
Appellant McKinney Independent School District (MISD) condemned the 56.43 acre tract for use as a high school. At trial, Carlisle Grace sought compensation not only for the 56.43 acre tract taken but also for damages to the 33.284 acres of “remainder” caused by the taking. It argued that the highest and best use of the entire property was for low density residential development. MISD argued there was no “remainder” because the 56.43 acre tract it condemned was a self-sufficient economic unit. It also argued there was no unity of use between the 56.43 acre tract and the 33.284 acres, contending the 33.284 acres were not reasonably adaptable to residential development because a substantial portion of that acreage was subject to flooding, 1 and Carlisle Grace did not prove it could get approval to develop the flood plain. MISD sought to compensate Carlisle Grace only for the 56.43 acre tract.
The issues were tried to a jury. It found that the 56.43 acres taken by MISD and the 33.284 acres not taken “were joined by a unity of use by the same proprietor into a single property consisting of the 89.714 acres in question.” The jury found the market value of the 56.43 acre tract taken was $3,216,510, and found damages to the remainder in the amount of $1,189,903. The trial court entered judgment based on the jury’s verdict.
At issue in this appeal is whether the evidence is legally sufficient to support the jury’s finding that the 56.43 acre tract and the 33.284 acres were joined by a unity of use and, if so, the amount of damages to the remainder. The specific issue we are asked to decide is whether the evidence is legally sufficient to prove the 33.284 acres were reasonably adaptable to residential development and whether the damages to the remainder were excessive, even if the tract taken was not a single economic unit. MISD contends the evidence was so speculative that it amounted to no evidence. Because we conclude the evidence is sufficient, we affirm.
STANDARD OF REVIEW
When an appellant attacks the legal sufficiency of an adverse finding on an issue on which it did not have the burden of proof, the appellant must demonstrate there is no evidence to support the adverse finding.
See Croucher v.
Under this review, jurors are the sole judges of the credibility and weight of the witnesses’ testimony.
City of Keller,
Applicable Law
A. Evidence of Reasonable Adaptability
The trial court must initially determine whether evidence establishes a reasonable probability that existing restrictions on development will be lifted within a reasonable time when it decides whether to admit or exclude evidence that property is reasonably adaptable to a particular use.
City of Austin v. Cannizzo,
B. Unity of Use
McLennan County v. Stanford,
Where separate, but contiguous tracts are integral parts of an entity under common ownership in such physical and functional relationship that they are joined by unity of use by the same proprietor into a single property, they will be treated as a whole in assessing damages to the remainder in the taking of a part.
Id.
(citations omitted).
See also Austin v. Capitol Livestock Auction Co.,
C. Fair Market Value
In Texas condemnation law, market value properly reflects all factors that buyers and sellers would consider in arriving at a sales price.
City of Harlingen v. Estate of Sharboneau,
In the willing seller-willing buyer test of market value it is frequently said that all factors should be considered which would [citation omitted] reasonably be given weight in negotiations between a seller and a buyer, [citations omitted] This would exclude consideration of purely speculative uses to which the property might be adaptable but wholly unavailable but would permit consideration of all uses to which the property was reasonably adaptable and for which it was, or in reasonable probability would become, available within a reasonable time.
Cannizzo,
In determining market value of property taken and not taken, the jury should base its award on the highest and best use of the property.
See So. Pipe Line Corp.,
Existence of and Damages to the Remainder
In its first and second issues, MISD argues the evidence is legally insufficient to support the jury’s finding of the existence of and damages to the remainder.
A. Expert Testimony
Carlisle Grace’s Engineering Expert
Carlisle Grace’s engineering expert, William Anderson, testified that the 33.284 acres were reasonably adaptable to residential development. MISD first argues Anderson’s opinion was based on speculation and unfounded assumptions and constituted no evidence because he did not conduct engineering and hydrology studies to show that the flood plain was reasonably adaptable to development. It was undisputed that Carlisle Grace did not conduct the studies required to obtain governmental approval to develop in the flood plain. MISD also argues its experts rebutted Anderson’s opinion with undisputed evidence that the 33.284 acres were not reasonably adaptable to residential development because there was no possibility the necessary approvals would be given absent the appropriate engineering and hydrology studies. Without these studies, MISD argues, the evidence is conclusive that the City would not consider reclamation of the flood plain or dam breach areas, would not rezone those areas for residential development, and would not issue the necessary permits for either reclamation or redevelopment. Essentially, MISD argues, without the engineering and hydrology studies, Carlisle Grace offered no evidence the property is a single economic unit reasonably adaptable to residential use.
Anderson testified he considered the 89.714 acre tract as one property and that the 33.284 acres in the flood plain contributed to the value of the 56.43 acre tract because the low land offered a buffer from nearby developments and provided an opportunity to create amenities such as ponds, sports courts, and hike and bike trails that prospective buyers find desirable. He concluded the highest and best use of the entire tract was residential development. In fact, Anderson testified that when William Carlisle initially contacted him about the feasibility of developing the 56.43 acre tract, he suggested that Carlisle purchase the adjoining property for several reasons, including gathering density, open space for amenities, sanitary sewer availability, and drainage. At that time, Anderson did not know MISD was seeking to condemn the 56.43 acre tract for a high school.
Anderson discussed two similar properties in the vicinity of the 89.714 acre tract. One is immediately south of the subject property and had been rezoned by the City to allow single-family residential development in flood plain land. Anderson was involved in the rezoning on one of those projects. Anderson described his extensive experience in developing similar properties and obtaining approvals from municipalities for development in a flood plain. He testified that, based on this experience, his evaluation of the subject property, and his review of the City’s documents for development of similar properties, a portion of the 33.284 acres could be developed without requiring a FEMA reclamation of flood plain land, with the remaining portion used to develop amenities such as hike and bike trails, sports courts, and ponds.
MISD contends
Urban Renewal Agency of City of Austin v. Georgetown Savings & Loan Association,
In this case, unlike in
Urban Renewal,
Carlisle Grace’s engineering expert testified about the underlying data he used to produce his development feasibility report for the property. He stated that the City’s comprehensive plan for the property showed future land use of the property as
We did address a similar issue in
City of Richardson v. Smith,
In summary, Anderson testified the 56.43 acre tract was more valuable as a part of the entire 89.714 acre tract because the 33.284 acres would contribute valuable recreational and green space to the development. MISD’s experts disagreed about the feasibility of developing the 33.284 acres for residential use and concluded the 56.43 acre tract was a self-sufficient economic unit. However, opinions are not legally insufficient simply because the opinions contradict one another. Instead, the opinions raise fact issues which the jury must resolve.
See City of Keller,
We conclude Anderson’s testimony was not speculative or based on unfounded assumptions.
Carlisle Grace’s Expert Appraisers
MISD raises similar complaints about the legal sufficiency of the testimony of Carlisle Grace’s expert real estate appraisers, David Bolton and Wendell Pyles. Additionally, MISD contends the evidence will not support Bolton’s testimony concerning the market value of the 33.284 acres.
Bolton
Bolton testified he valued the 89.714 acre tract as a single property. He described the process he used to appraise the 89.714 acre tract and how he determined that the 56.43 acre tract and the 33.284 acres were a single economic unit. 2 He explained how the 33.284 acres contributed to the enhancement of the 56.423 acre tract.
MISD argues Bolton’s opinion is speculative because he did not locate any comparable sales with similar characteristics found on the subject property. But MISD’s appraiser used three of the same comparables Bolton used; he just had a different opinion. And comparable sales are just that; they are not required to be identical.
Estate of Sharboneau,
MISD also argues Bolton’s appraisal assumed the 33.284 acres would be used for an “amenity package” that included water features and playgrounds available for the exclusive use of the homeowners. It argues this assumption was wrong for two reasons and, as a result, Bolton’s testimony constitutes no evidence: the City does not allow any construction in the dam breach inundation area without consent of the adjacent landowner or a hydrology study showing the reclamation would not affect any surface area; and the City’s park ordinance requires the developer to dedicate 15 acres of the 33.284 acre tract for use as a public park.
Although MISD argues his assumptions were wrong, there was other evidence that supported Bolton’s assumptions. First, MISD called the City’s assistant engineer, Michael Hebert, as a witness to testify about the City’s ordinances with regard to the flood plain engineering issues and their applicability to the property. On cross-examination, Hebert testified about the City’s ordinance that prohibits construction in the dam breach inundation area without consent of the adjacent landowner or a hydrology study showing the reclamation would not affect any surface area. He testified it was possible to build a ball field and hike and bike trails in the floodway without any reclamation, provided no fill material was added, or to build a lake in that area to capture excess water. And he testified that if the engineering guidelines are met, an application for reclamation has a 100 percent chance of approval. Additionally, Anderson, Carlisle Grace’s engineering expert, testified he did not seek approval of his plan from adjacent landowners because their approval was only required if he raised the water level, which
In summary, Bolton based many of his conclusions on Anderson’s engineering report, which we previously concluded was not based on speculation or unfounded assumptions. Bolton also described in detail how he reached his opinion about the fair market value of the property. We conclude Bolton’s testimony was not based on speculation or unfounded assumptions.
Pyles
Pyles testified the City retained him in the year 2000 to appraise the 89.714 acre tract for possible condemnation. His appraisal considered the 89.714 acre tract as one property and concluded the highest and best use was single family residential. MISD argues Pyles’s opinion was speculative because he admitted that when he conducted his appraisal he was not aware that all of the 22.677 acre tract was within the flood plain. But whether Pyles considered that the 22.677 acre tract was within the flood plain when he prepared the appraisal in 2000 does not affect the legal sufficiency of his opinion. Instead, it goes to the weight to be given his opinion and was an issue to be resolved by the jury in this case.
See ADSS Props., Inc.,
We also conclude the testimony of Car-lisle Grace’s experts is legally sufficient to support the jury’s verdict.
We overrule MISD’s first issue.
B. Carlisle Grace’s Lay Testimony
MISD next argues the lay testimony of William Carlisle and Steve Goodman is legally insufficient to prove the 56.43 acre tract was an integral part of the 89.714 acre tract. It argues Carlisle’s opinion was based on a hypothetical subdivision which he was allegedly planning to build. MISD contends the evidence showed Car-lisle Grace had not taken any predicate steps to construct the subdivision, such as applying for a zoning change, conducting engineering and hydrology studies, and applying for the necessary permits and approvals. MISD argues Carlisle’s testimony was so speculative as to constitute no evidence.
However, we do not reach this issue because we previously concluded the expert testimony is itself legally sufficient to support the verdict.
Damage to Remainder
In its third issue, MISD argues the evidence is legally and factually insufficient to support the jury’s damages award to the remainder because Carlisle Grace sought damages only for denial of access to the remainder resulting from the taking. In a subpart of this issue, MISD argues the trial court erred by failing to limit the jury’s consideration of damages to denial of access. In a second subpart of this issue, MISD complains of charge error in the submissions to the jury on unity of use and single economic unit.
A. Limiting Carlisle Grace’s Claim to Denial of Access
MISD contends Carlisle Grace sought damages solely for denial of access to the 33.284 acres. Accordingly, MISD argues
B. Jury Charge: Single Economic Unit and Unity of Use
MISD also argues the trial court erred by failing to submit a jury question on the “extent of the single economic unit” despite a proper and timely request.
Rule of civil procedure 278 requires the trial court to submit instructions and definitions to the jury as are necessary to enable the jury to render a verdict.
See
Tex.R. Civ. P. 278;
Elbaor v. Smith,
MISD requested the following instructions and question:
You are instructed that “unity of use” means that portion of the property that is economically self[-]sufficient to support the highest and best use.
An “economic unit” is that portion of a whole property that is economically self-sufficient to support a highest and best use independent of any remaining portion of the whole property.
Do you find from a preponderance of the evidence that [the] tract taken by [MISD] is not a self-sufficient economic unit, independent of the remainder of the parent tract?
The trial court denied MISD’s requested jury question and instructions and submitted the following:
When property consists of separate tracts that are contiguous and are integral parts of a whole in such physical and functional relationship that they are joined by a unity of use by the sameproprietor into a single property, they will be treated as a whole in determining whether there have been damages to a remainder in the taking of a part of the whole. In determining “unity of use,” you should consider the highest and best use definition above.
The court defined “highest and best use” as:
“Highest and best use” is the reasonably probable and legal use of vacant land, which is physically possible, appropriately supported, financially feasible, and results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability.
The jury was asked to answer the following question:
Do you find from a preponderance of the evidence that the 56.43 acres taken by [MISD] and the 33.284 acres not taken on August 29, 2003, were joined by a unity of use by the same proprietor into a single property consisting of the 89.714 acres in question?
The jury answered, “Yes.”
MISD argues the charge should have asked the jury to determine whether the 56.43 acre tract was a self-sufficient economic unit. If the jury concluded it was, then, MISD argues, there is no remainder and the jury should not have considered whether there were damages to the remainder. We disagree.
It was undisputed that the 56.43 acre tract was a self-sufficient economic unit and that it was reasonably adaptable to residential development. But the proper inquiry is whether the tracts should be considered as a whole. The real issue here is whether the 33.284 acres contributed value to the 56.43 acre tract such that they should be considered as one property.
Richardson,
[W]hen the portion of the land taken by the State, considered without reference to the remainder, cannot be considered an independent economic unit reflecting the highest and best use of the property and would thus deprive the land owner of adequate compensation for the part taken if considered solely as severed land, ... the market value must necessarily be determined by considering some portion or all of the remainder in order to construct an economic unit.
State v. Windham,
Based on our examination of the evidence and case law, we conclude the trial court did not abuse its discretion by denying MISD’s requested jury instructions and question.
We overrule MISD’s third issue.
We affirm the trial court’s judgment.
Notes
. Much of the 33.284 acres is located within the 100-year flood plain defined by the Federal Emergency Management Agency (FEMA) or within the dam breach inundation area defined by National Resources Conservation Service (NRCS) (collectively referred to as the flood plain).
. MISD objected when Bolton was asked whether it was physically possible to develop the 89.714 acre tract as low density residential, contending that Bolton had not been qualified to give this opinion. But Bolton testified he relied on the engineer’s report and conclusions for engineering matters. Additionally, MISD does not raise this as an issue on appeal. But even if it had been raised, any error in admitting Bolton’s testimony was harmless because the same evidence came in through other means.
. The jury returned a verdict of $3,216,510 for the 56.43 acre tract taken by MISD, or $57,000 per acre, and $1,189,903 for damages to the 33.284 acres not taken by MISD, or $35,750 per acre, within the values testified to by Bolton.
