Department of Transportation v. Adams Outdoor Advertising of Charlotte Limited Partnership

by
The Supreme Court affirmed in part and reversed in part the order of the Court of Appeals reversing the trial court’s order addressing the appropriate measure of damages in this condemnation action. The North Carolina Department of Transportation (DOT) condemned a leasehold interest held by Adams Outdoor Advertising of Charlotte Limited Partnership (Adams). Adams owned a billboard situated on the leasehold and rented out space on the billboard. At the time of the taking the billboard did not conform to city or state regulations, but Adams possessed permits that allowed for the billboard’s continued use. The Supreme Court held (1) the fair market value provision of N.C. Gen. Stat. Article 9 governed this condemnation proceeding; (2) the value added by the billboard, the evidence of rental income derived from leasing advertising space on the billboard, and the value added to the leasehold interest by the permits issued to Adams may be considered in determining the fair market value of the leasehold interest; (3) an automatic ten-year extension of a lease may be considered in determining the fair market value, but options to renew the lease may not be; and (4) bonus value method evidence offered by DOT may not be considered in determining the fair market value of the leasehold interest. View "Department of Transportation v. Adams Outdoor Advertising of Charlotte Limited Partnership" on Justia Law