APPELLATE COURT OF ILLINOIS, SECOND DISTRICT
Development Company et al., Defendants-Appellees)
531 N.E.2d 110, 176 Ill. App. 3d 237, 125 Ill. Dec. 931 1988.IL.1665
Appeal from the Circuit Court of Lake County; the Hon. Alvin I. Singer, Judge, presiding.
JUSTICE REINHARD delivered the opinion of the court. WOODWARD and NASH, JJ., concur.
DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE REINHARD
Plaintiff, the Lake County Public Building Commission, filed a condemnation petition in the circuit court of Lake County seeking to condemn a parcel of land held in trust by defendant, La Salle National Bank. The bank and the managing partner of the limited partnership owning the beneficial interest in the parcel (hereinafter defendants) filed a cross-petition seeking damages to the remainder of the property not sought in the condemnation proceeding. Following a jury trial, defendants were awarded $340,000 just compensation for the parcel condemned and $400,000 for damages to the remainder of the property. Plaintiff then filed this appeal.
The issues raised on appeal are: (1) whether the taken parcel and the remainder parcel were contiguous; (2) whether defendants' witness properly considered rental income in his valuation of the remainder parcel; (3) whether it was error for defendants' witness to testify to a portion of the contents of a mortgage on the remainder parcel that was held to be otherwise inadmissible; (4) whether it was error for defendants' witness to testify to possible future expansion of the remainder parcel as a basis for his valuation; and (5) whether it was error to give Illinois Pattern Jury Instructions, Civil, No. 300.44 (2d ed. 1971) (hereinafter IPI Civil 2d) when there was a question as to whether the remainder parcel was damaged.
The property in issue consists of two parcels of land. The parcel actually condemned is approximately 83,000 square feet, most of which is a parking lot with the balance being a ravine which is unusable for parking. The remainder parcel not taken is located diagonally to the condemned parcel and is separated by the intersection of Water Street and Utica Street. The remainder is improved with an approximately 85,000-square-foot office building and parking lot. Both parcels are owned in fee simple by La Salle National Bank under a land trust. The sole beneficial owner under the trust is Factory Outlet Mall Associates, an Illinois limited partnership, of which Robert G. Douglass, Jr., is the managing general partner.
Plaintiff, on October 20, 1986, filed a petition for condemnation in which it sought, pursuant to section 14(b) of the Public Building Commission Act (Ill. Rev. Stat. 1985, ch. 85, par. 1044(b)), to acquire the above-described condemned parcel by eminent domain as part of the Lake County jail facility. On December 29, 1986, defendants filed a cross-petition seeking damages to the remaining parcel of land allegedly arising out of the condemnation of the taken parcel.
At trial, defendants proceeded first. Defendants' first witness, Robert Douglass, testified to the development of the property as well as the various leases in effect and that those leases required 113 parking spaces. The limited partnership purchased the two parcels from Sears in 1984. Prior to the sale, Sears had operated a three-level retail store in the building on the remainder parcel and an auxiliary parking lot for the retail store on the taken parcel. According to Douglass, the partnership originally planned to utilize the building as a factory outlet mall, but they later decided to convert the building to a mixed use facility and lease office and retail space. There are currently 19 leases to tenants consisting of a restaurant, numerous law firms, several retail stores, and various other businesses. The total available square footage is between 60,000 and 68,000, of which 52,000 square feet is presently leased. The taken parcel is used as an auxiliary parking lot which is otherwise undeveloped.
Allen L. Kracower, a land planner, testified that there were 197 parking spaces available on the taken parcel and 154 parking spaces on the remainder parcel. He also estimated that 284 parking spaces would be needed for the office complex under existing zoning ordinances if it were fully leased. Kracower also stated that the highest and best use of both parcels viewed as a whole would be office and parking.
Gerald E. Lindgren, a traffic engineer, testified for defendants that the taking of the auxiliary lot would have a detrimental impact on the remainder because there would be insufficient parking on the remainder to meet the needs of the office building. Additionally, Lindgren stated that, in his opinion, building a county jail complex across the street would also detrimentally impact on the parking situation on the remainder parcel. He also testified that there is an American Legion parking lot across the street which currently allows free parking during the day, that there is a public parking lot located just north of the remainder parcel, and that there is free on-street parking on several streets adjacent to the remainder parcel.
Defendants also presented William A. McCann, a real estate appraiser, as a valuation witness. McCann testified to the value of the taken parcel, the two properties as a whole, and the value of the remainder parcel before and after the taking. McCann opined that the proper compensation for the taking, including damage to the remainder, is $1,150,000. In arriving at his valuation, he considered ...