City of New Rochelle v. Sound Operating Corp.

In a condemnation proceeding, plaintiff appeals from a final order of the Supreme Court, Westchester County, dated July 31, 1967, which confirmed the report of che Commissioners of Appraisal, awarding respondent $287,400 for the property taken. Ordered reversed, on the law and the facts, without costs, and proceeding remanded to Special Term for remittal to a commission for rehearing and determination, limited solely to the issue of proof of value of the subject building based on reproduction cost less depreciation. In our opinion, under the circumstances herein, the Commissioners of Appraisal properly concluded that the subject building, a commercial laundry, was a specialty and that the only tenable method of valuation was reproduction cost less depreciation (cf. Matter of City of New York [Kramer Realty Corp.], 16 A D 2d 148 ; Matter of City of New York [Maxwell, 15 A D 2d 153 ). The evidence adduced at the hearings amply demonstrated that not only was the building designed for a unique purpose, i.e., specially built and equipped as a commerical laundry, but also that there have been no comparable transactions, either by way of sales or rentals, which would permit utilization of any other appropriate method of valuation. As stated in Matter of City of New York [Field’s Baking Corp.] ( 27 A D 2d 539 , 540) : “In the absensce of proof showing rents of other buildings with the essential distinguishing features of claimant’s, the value must be arrived at on the basis of the evidence given as to reproduction cost less depreciation”. However, while we are of the view that this method of valuation was the only fair and feasible method of fixing value, we are of the further opinion that, in the interests of justice, the proceeding should be remitted for a rehearing at which both parties will be afforded an opportunity to present such proof of reproduction cost less depreciation as may be available to them. Based upon such additional proof, the commission should make new findings and a new determination as to the value of the building. Beldock, P. J., Christ, Rabin and Hopkins, JJ., concur; Benjamin, J., concurs in part and dissents in part, with the following memorandum: I agree that the order confirming the Commissioners’ award should be reversed, but I disagree with the majority’s conclusion that this building was a specialty, that the only tenable method of valuation was reproduction cost less depreciation, and that the proceeding should be remitted for a rehearing and redetermination solely on the basis of reproduction cost less depreciation. In my opinion this building was not a specialty; it was and is erroneous to use reproduction cost less depreciation as the sole method of valuation; there was competent and adequate proof to support a valuation based on comparables and capitalization of income; the award was shockingly excessive no matter what the method of valuation; and there is enough proof in the record to justify a reduction of the award by us to a proper amount. There was ample proof that the subject building was not structurally unique, but instead that it was structurally the same as countless others and merely had several specialized appurtenances attached to it. There was ample proof that it was usable not only as a laundry, but also for many other industrial and commerical purposes. There was ample proof that its taking- did not force the owner to erect another identical building for the continuation of its laundry business, because of the total absence of other buildings usable for that business. On the contrary, the owner merely bought or leased another previously-erected building, which was not equipped with the generating plant here claimed as the main unique feature of the condemned building; moved its laundry business there; and has continued to operate it there with electricity bought from a public utility.