40 A.D.2d 919 | N.Y. App. Div. | 1972
— Cross appeals from a judgment in favor of claimant, entered January 26, 1971, upon a decision of the Court of Claims. On or about June 26, 1966 the State of New York, pursuant to section 30 of the Highway Law, appropriated three parcels of land owned by claimant in the Town of Clarkson, Rockland County. These parcels were strategically situated on Route 59 at the New York State Thruway Interchange, and midway between the Thruway Interchanges with the Garden State Parkway and the Palisades Interstate Parkway. Parcel 1, which contained 24.8 acres, was improved by a motel containing 22 units; apartment buildings containing 14 furnished apartments and 12 unfurnished apartments; and 120 mobile home and travel trailer sites. Other improvements consisted of oil-dressed roads, underground lines for sewer, water and gas, and patios for the mobile homes. Parcel 2, containing 1.248 acres, consisted of vacant land, triangular in shape and lying on the northerly side of Route 59, being also bounded on the north and east by Hopf Drive, and on the West by Pascack Road. Parcel 3, containing .409 acre, consisted of vacant land triangular in shape lying on the southerly side of Route 59, and was bounded on the west by Pascack Road. Both parties adopted the market approach in arriving at land values using comparables to support their opinions. The buildings and improvements presented a different problem in that no sales could be found of any property comparably developed. Both appraisers, therefore; considered the cost and economic approaches to value the buildings and improvements. Claimant’s appraiser determined the value of the improvements using the economic approach to be the amount of $957,469. In doing so, he considered the property as being held in a manner similar to an annuity or a lease with a reversionary interest and applied the Inwood factor for a reversionary interest for 15 years. The State’s appraiser determined the value of the improvements using the economic approach to be the amount of $76,450. The court determined the value of the land to he $1,638,060. This value, by reason of a stipulation as to acreage, entered into after the decision, was reduced to $1,614,000. When the State’s land values are adjusted in accordance to the stipulation, it appears that the court adopted the land values assigned by the State’s appraiser. In arriving at the value of the improvements, the court rejected the economic approach and made an award of $392,885 based upon •the host approach which it determined to be more realistic. The State contends that since Parcel 1 was not being devoted to its highest and best use, it was error for the court to make an award for improvements which were totally inéonsistent with the evidence as to the highest and best use. Claimant contends that the evidence establishes that the improvements were not inconsistent with the highest and best use of Parcel 1, and further supports an increased award. Both appraisers agreed, and the court found that the highest and best use of Parcel 1 was for future development as a shopping center or modem high rise motel and related facilities. The cost approach to vainatipn of improvements may he utilized only if the improvements are specialties