Tenn. Valley Auth. v. 1.72 Acres of Land in Tenn.

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Thomas owns hotels. He purchased 34 acres adjacent to I-24 between Nashville and Chattanooga in 2013 for $160,000, to develop a first-tier hotel. Most of the property is zoned agricultural-residential; a smaller portion is zoned rural center district. It has always been used for agriculture, The Tennessee Valley Authority (TVA) filed a condemnation action (40 U.S.C. 3113) with a deposit of $15,500 as estimated just compensation, for an easement 100 feet wide (1.72 acres) along I-24 for above-ground electrical power transmission lines. Thomas requested a trial on just compensation and disclosed his intent to present expert testimony that the property was no longer feasible for hotel development, because “power lines create both a visual and psychological barrier to guests.” The court granted the TVA’s motion to exclude the testimony, based on reliability defects. At trial, Thomas explained that the power lines are dangerous and unattractive. Thomas had not sought a rezoning. TVA’s expert opined that it was not financially feasible to develop a hotel on the property because of soil conditions, frontage, and the need for a zoning change and utilities. The court awarded Thomas just compensation of $10,000. The Sixth Circuit affirmed, rejecting Thomas’s arguments about valuation. Thomas, who bore the burden of proof, did not overcome the presumption that the highest and best use was the property's existing use as agricultural land. View "Tenn. Valley Auth. v. 1.72 Acres of Land in Tenn." on Justia Law