Facts

Eminent domain action filed by the City of San Jose to take property owned by Donati Bascom Building, LLC, to construct a library/community center. The property is approximately 86,400 square feet.

As of the date of filing the complaint Donati had obtained the necessary entitlements from the City to construct two retail buildings on the property. Donati had commenced grading of the site. The date of valuation was Aug. 23, 2005.

PLAINTIFF'S CONTENTIONS:
The fair market value of the property, including the added value from the entitlements, was $6,480,000. The comparable sales, including the subject property sale in October 2003 for $4,600,000, were the bases for this opinion of value.

DEFENDANT'S CONTENTIONS:
The fair market value of the property was $8,840,000. The entitlements and partial construction added a significant increment of value.

Settlement Discussions

City's Govt. Code section 7267.2 offer $5,683,000; City's final C.C.P. Sec. 1250.410 offer was $7,050,000; Donati final C.C.P. Sec. 1250.410 demand was $8,395,000.

Result

$7.7 million (including interest and costs) reached at settlement conference.