<h2>Case Study #1 &#8211; Whole Take of Industrial Property with Deep Water Port Access</h2>
<p>A municipal port authority with the power of eminent domain initiated “slow-take” proceedings to acquire an 60+ acre industrial property with deep water access for the purpose of construction a port terminal to be owned by the port authority and leased to a private import company. The owner of the property purchased the waterfront property with the intent to redevelop the former plant and construct a bulk terminal. The property had many unique characteristics including an abandoned railroad line, industrial buildings and a small office building. Additionally, the property contained a landfill used by the former industrial owner and was encumbered by some contamination. The owner purchased the property for $8 million and assumed all responsibility for the environmental clean-up.</p>
<p>In advance of filing the condemnation suit, the port authority offered the owner $14 million to purchase the property. However, the port required the owner to remain liable for the environmental clean-up. The owner refused the port&#8217;s offer and suit was filed. Following a two-week jury trial in which numerous experts testified for both sides concerning the valuation of the industrial fixtures on the site, the cost to cure the environmental issues, the likelihood of the owner obtaining the necessary permits to construct port infrastructure and connect the rail line, as well as the overall value of the property, the jury returned a verdict awarding $76 million in just compensation for the acquisition of the property. Because the port authority used the &#8220;slow-take&#8221; eminent domain power, it was afforded the opportunity to decide whether it wanted to move forward with the acquisition and pay the amount the jury determined to be just compensation or whether it would abandon the condemnation. The port authority decided to abandon the taking remaining liable for the owners&#8217; attorneys fees and costs determined by the court to be in excess of $10 million.</p>
