Exclusion of Increase or Decrease in Value Caused by Public Improvement for Which Lands Are Condemned

Apposite cases of both condemnor and condemnee are collated, discussed and analyzed in the light of federal legislation. Emphasis is placed on the identification of the underlying rationale in recent cases. The paper addresses the problem of whether to include or exclude, in the valuation of lands condemned for a public improvement, enhancement or dimunition value attribute to the improvement. The uniform Relocation Assistance and Real Property Acquisition Act of 1970 is outlined, and case law is reviewed with a view to determining what problems will be presented to the states in making full compliance with the provisions of the law. The basic arguments for and against the allowance of enhancement in value due to a public improvement are summarized. The probability of the inclusion tests, and the condemnation of an unenlarged and an enlarged project are discussed. In a few decisions, enhancement in value has been denied without reference to or reliance on the probability of inclusion test. Cases are described where enhancement in value due to public improvement was allowed without qualification. In some jurisdictions provisions are embodies in the state constitutions, or contained in statute law, to the effect that valuation in eminent domain shall be determined "irrespective" of benefits from or enhancement due to the public improvement for which the lands are taken.