Appeals panel backs landowner in eminent domain case

Long Branch deemed area blighted
Posted by the Asbury Park Press on 06/15/06
BY CAROL GORGA WILLIAMS
COASTAL MONMOUTH BUREAU
LONG BRANCH — A state appellate panel ruled against the city 
Wednesday in an eminent domain case involving a former landowner who 
appealed a 2005 decision on properties in Beachfront North.

That means the case will be sent back to Freehold so a new "just 
compensation" figure can be set by a jury.

"It is significant to Mr. (Dennis) Spanos because he gets to have 
his day in court," said Kenneth D. McPherson Jr., who argued the 
case on appeal. The city's attorney, Paul V. Fernicola, could not be 
reached.

The case began in 1982 when Dennis S. Spanos and his wife, Theonie, 
purchased adjacent vacant lots identified as 32 Ocean Ave. North 
that they hoped to use as a retirement investment.

In 1984, the city deemed as blighted the area in a redevelopment 
project — not the one currently under way — and the lawsuit said the 
Spanoses "put their future plans of building and operating a 
restaurant on the property on hold."

In early 1987, the Spanoses received a letter from the lawyer from 
the Long Branch Redevelopment Agency offering to buy their property 
for $127,000, but they declined. Soon afterward, a nearby property 
owner offered to buy their property for $650,000, but the deal fell 
through, the lawsuit says.

In December 1988, the city revalued the property, assessing the lots 
at $414,800.

Then, on Jan. 9, 1996, the city enacted an ordinance increasing the 
maximum permitted development density in some zones from 18 units an 
acre to 30 units an acre.

On Jan. 23, 1996, the city adopted a resolution designating much of 
the city's oceanfront, including the Spanos property, as an area in 
need of redevelopment. On Jan. 23, 2001, the city authorized the use 
of eminent domain to acquire the property, appraising it at $152,600.

In arriving at the assessed value, the ap-praiser, Hugh A. McGuire 
of McGuire Associates, did not mention the less restrictive 1996 
zoning ordinance, which the appellate panel said would have 
undoubtedly increased the value of the property.

A condemnation commissioners' hearing was held Nov. 25, 2002, in 
which McGuire was the only witness. The commissioners fixed 
compensation at $294,000.

On Dec. 6, 2002, the city appealed that award, but the Spanoses 
never filed a cross-appeal. Meanwhile, after receiving the city's 
notice of appeal, the Spanoses' lawyer contacted Jon Brody of the 
Appraisal Consultants Corp., who determined the market value of the 
Spanoses' property was $1,070,000.

The trial judge agreed with the city, granting its motion to fix the 
final compensation at $294,000. But the appellate panel disagreed, 
saying the failure to file a cross-appeal was not fatal to the case, 
and that Long Branch's failure to reveal the less restrictive zoning 
ordinance was problematic.

". . . The city cannot claim prejudice due to (the Spanoses') 
attempt to receive full fair market value for their property in 
light of the applicable zoning regulations," the appellate panel 
wrote. The Spanoses' "right to receive "every reasonable 
consideration' before the invasive power of eminent domain may be 
exercised warrants a remand so that their land may be properly 
valued."







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