PRESENT: All the Justices
HOFFMAN FAMILY, L.L.C., ET AL.
v. Record No. 052506 OPINION BY JUSTICE BARBARA MILANO KEENAN
September 15, 2006
CITY OF ALEXANDRIA
FROM THE CIRCUIT COURT OF THE CITY OF ALEXANDRIA
Lisa B. Kemler, Judge
In this appeal, we determine whether a city lawfully
initiated condemnation proceedings to relocate a storm water
sewer as part of its public utility system on the ground that
the condemnation was necessary for development of a particular
area under the city’s comprehensive plan.
We state the evidence in the light most favorable to the
City of Alexandria (the City), the prevailing party in the
circuit court. Stanley v. Webber, 260 Va. 90, 92, 531 S.E.2d
311, 312 (2000); Bayliner Marine Corp. v. Crow, 257 Va. 121,
126, 509 S.E.2d 499, 502 (1999). This case concerns property
that is adjacent to the City’s Eisenhower Avenue Metro station.
In 2003, the City adopted the Eisenhower East Small Area Plan
(Eisenhower area plan), a part of the City’s comprehensive plan
adopted pursuant to Code § 15.2-2223. The City wanted to create
high-density economic development near the Metro station
consisting of retail, residential, and commercial uses. The
City also planned to have these uses supported by open space,
recreational entertainment, and cultural amenities. The City’s
design objective was to “encourage a system of streets and
blocks which provides for an urban framework for the area” and
to “establish an urban design character for Eisenhower Avenue”
as a “major urban boulevard.”
Hoffman Family, L.L.C., Peggy L. Hoffman, Hubert N.
Hoffman, III, and Linda L. Hoffman (collectively, Hoffman), own
several parcels of property, as well as air and surface
easements, located in the Eisenhower East section of the City.1
The Mill Race project, approved by the Alexandria City Council
(the city council) as a component of the Eisenhower area plan,
is a proposal developed by the Trammell Crow Company, an owner
of land adjacent to Hoffman’s property.2 The Mill Race
development proposal includes one apartment building, one
condominium building, and one commercial office building. The
1
The City initiated separate proceedings against Hoffman
Family, L.L.C., owner of land and easements of one parcel of the
property at issue, and against Peggy L. Hoffman, Hubert N.
Hoffman, III, and Linda L. Hoffman, co-owners of separate
property interests affected by the City’s proposed action.
After Hoffman Family, LLC and the individual co-owners filed
pleas in bar, the circuit court issued an order consolidating
the two cases. Because the pleadings filed by the parties prior
to the consolidation are substantively identical, this opinion
shall hereafter refer to the respondents collectively as
Hoffman.
2
After the City’s attempted condemnation of Hoffman’s land,
the Trammell Crow Company sold its interest in the property to
Paradigm Development Company, another private developer.
2
proposal for each building includes plans for retail
establishments located on the ground floor.
A storm water box culvert (box culvert) is located on the
site of one building planned for the Mill Race project. The box
culvert, which is a part of the City’s storm water sewer system
that extends underground in the area of the properties at issue,
is a concrete structure designed to convey storm water from land
surfaces to an outfall downstream.
The present controversy arose when the City decided it was
necessary to relocate the box culvert. The City determined that
it was impractical to allow construction of a building over the
box culvert on the Mill Race site because “maintenance of the
storm water structures may require the use of heavy equipment,
which may not be able to access portions of the storm water
culvert where buildings are constructed over the culverts.”
The City planned to relocate the box culvert to a site on
Hoffman’s property on the south side of Eisenhower Avenue.
Under the City’s plan, this placement would allow the storm
water sewer to run primarily under Mill Race Lane and Grist Mill
Place, two new public streets being constructed in conjunction
with the Eisenhower area plan.
The proposed relocation required acquisition from Hoffman
of two temporary construction easements covering a combined area
of 8,434 square feet, and the permanent acquisition of 1,009
3
square feet of Hoffman’s property for the storm drain easement.
In accordance with Code § 25.1-417, the City attempted to
purchase the affected property from Hoffman but was unable to
reach agreement on a price. Thereafter, the City, asserting its
statutory powers of condemnation, filed petitions in the circuit
court to condemn these portions of Hoffman’s property.
In its condemnation petitions and in the City Council’s
resolution authorizing the condemnation, the City stated that
the property and temporary construction easements would be used
for construction, maintenance, and repair of a sewer system that
was “necessary . . . (1) to implement the Eisenhower East Small
Area Plan Chapter of the 1992 Master Plan (1998 ed.) of the City
of Alexandria, (2) to promote the orderly and proper development
of the Eisenhower East Small Area Plan area, and (3) to permit
the development of the Mill Race project as approved by CDD
Concept Plan No. 2002-0001 and DSUP Nos. 2002-0002 and 2002-
0003.”
In response to the petitions in condemnation, Hoffman filed
a plea in bar, arguing that the City’s attempt to take a portion
of Hoffman’s property to relocate the storm sewer line was
“solely for the benefit of the private owner of [adjoining]
land.” Hoffman asked that the circuit court declare the
attempted condemnation invalid because there was neither a
public purpose nor a public necessity for the takings.
4
Hoffman also filed a motion requesting a jury trial on the
issues raised in its plea in bar. The circuit court denied the
request and conducted a bench trial to resolve the issues
presented in Hoffman’s plea.
The evidence at trial showed that the decision to relocate
the box culvert followed the City’s preferred practice of
locating all public utilities, including sewers, along and under
public streets. Emily Baker, City Engineer for the City of
Alexandria, testified that the City prefers to locate sewers
along public streets to permit maintenance of the sewers without
any potential conflicts from private landowners. However, Baker
acknowledged that the City also wanted to relocate the box
culvert to allow construction of a building at the box culvert’s
present location. Baker further agreed that the existing box
culvert was functioning properly, was in good repair, and had
sufficient capacity to serve the area in which it functioned.
Eileen P. Fogarty, Director of Planning and Zoning for the
City, testified that the street grid system in the Eisenhower
area plan and the Mill Race project was a matter of high
priority to the City. Fogarty explained that the street grid
system would help achieve the City’s goal of creating a
pedestrian community in the area, while also enhancing general
safety and fire truck access and providing significant traffic
circulation benefits. Fogarty also stated that the relocation
5
of the sewer and box culvert from the existing location was one
of the benefits of the Mill Race project identified by her staff
in its recommendation supporting the issuance of the special use
permit for the project.
Richard Baier, Director of Transportation and Environmental
Services for the City, confirmed much of Fogarty’s testimony.
Baier stated that the discussion of a grid pattern of streets
for the Eisenhower East area began long before the plan for the
Mill Race project emerged. Baier acknowledged, however, that a
road grid could have been constructed while leaving the old box
culvert in place.
After hearing all the evidence, the circuit court overruled
Hoffman’s plea in bar. The circuit court concluded that the
purpose of the taking was to “facilitate proper storm water
runoff into the City’s storm sewer system.” The circuit court
held that the City’s action was for a public use, “[r]egardless
of any incidental benefit that may flow to the developer of [the
Mill Race site] by the movement of the existing storm sewer box
culvert.” The circuit court further explained:
The fact that the underlying motivation for the
relocation of the storm sewer box culvert is the
implementation of the [Eisenhower area plan] and to
promote the orderly and proper development of the
[plan] in accordance with the Small Area Plan and the
Special Use Permits approved for Mill Race does not,
in this Court’s view, diminish the public use of the
taking.
6
Following its decision overruling Hoffman’s plea in bar,
the circuit court held a hearing on the issue of just
compensation. William R. O’Neill, who qualified as an expert in
the field of real estate appraisal, testified that $53,400 was
the total value of the property interests taken by the City.
After hearing this evidence, the circuit court entered a final
order awarding Hoffman $53,400 as compensation for the land and
easements taken by the City. This appeal followed.
We first consider Hoffman’s argument that the circuit court
erred in denying its request for a jury trial on the plea in
bar. Hoffman observes that the Constitution of Virginia
provides a right to trial by jury in all actions at law,
including condemnation proceedings. Hoffman further notes that
Code § 8.01-336(D) provides a right to a jury determination of a
plea in bar raised to an equitable claim. Hoffman contends that
a plea in bar filed in an action at law should not be treated
differently from a plea in bar to an equitable claim,
particularly because jury trials are guaranteed in actions at
law while jury trials are not guaranteed with regard to most
equitable claims. We disagree with Hoffman’s argument.
There is no constitutional or statutory authority providing
for a jury trial on a plea in bar in a condemnation proceeding.
Moreover, in Code § 25.1-219, the General Assembly has directed
that the circuit court in condemnation proceedings determine
7
“issues or other matters in controversy, excepting the issue of
just compensation or matters relating to the ownership of any
land or other property or the interests of any party in such
land or other property.” The circuit court’s duty to decide the
matters in controversy other than those specified in that
statute complements the provisions of Code § 25.1-220, which
state that when the proper parties have appeared or responded to
the petition in condemnation, the issue of just compensation
shall be determined by a jury unless the parties agree to have
the court make that determination.3
These statutes illustrate the particular care that the
General Assembly has given to the mode of determining all issues
that may arise during the course of a condemnation proceeding.
In specific language, the General Assembly has reserved for
decision by the court those issues that do not involve the
question of just compensation or the determination of ownership
or other interests in the property sought to be condemned.
Therefore, we hold that the circuit court properly determined
that Hoffman did not have a right to a jury trial on the issue
raised in its plea in bar.
3
Effective July 1, 2006, commissions no longer serve as an
alternative mechanism for determining issues of just
compensation. Such determinations may only be made by a jury,
or by the circuit court on agreement of the parties. See Code
§ 25.1-220.
8
We next consider Hoffman’s argument that the circuit court
erred in concluding that the City sought to condemn Hoffman’s
property for a public purpose. Hoffman contends that there is
no evidence to support the circuit court’s finding that the
“purpose of the taking” was “to facilitate proper storm water
runoff.” According to Hoffman, the City decided to condemn the
property to allow Mill Race’s developers to construct a building
that met certain planning goals the City wanted to accomplish in
that area. Hoffman asserts that under the holding in Phillips
v. Foster, 215 Va. 543, 211 S.E.2d 93 (1975), the power of
eminent domain may not be exercised for the private purpose of
improving land at a neighbor’s expense. Such a private purpose,
Hoffman maintains, is at issue in this case because, “but for”
the Mill Race project, there was no need or plan to relocate the
box culvert.
Hoffman further alleges that the comprehensive plan
considerations cited in the City’s resolution do not provide a
basis for the City’s exercise of its power of eminent domain.
Hoffman observes that with the exception of blighted property,
which is not at issue here, there is no statutory authority
granting local governments the power to condemn property to
9
achieve planning goals.4 Hoffman further notes that under Code
§ 15.2-2307, a local government cannot rezone property in
violation of vested property rights. Thus, according to
Hoffman, because local governments are prohibited from impairing
vested property rights in exercising zoning powers, those
localities likewise do not have authority to condemn property
for planning purposes. We disagree with Hoffman’s analysis and
arguments.
In resolving this issue, we first review the constitutional
and statutory authority of a city to condemn property for public
purposes. Our review of these provisions is guided by certain
established principles of construction.
The statutes confirming the power of eminent domain must be
strictly construed, and a locality must comply fully with the
statutory requirements when attempting to exercise this right.
Commonwealth v. Klotz, 245 Va. 101, 104, 425 S.E.2d 508, 510
(1993); Schmidt v. City of Richmond, 206 Va. 211, 217, 142
S.E.2d 573, 577 (1965). We consider the language of each
statute at issue to determine the General Assembly’s intent from
the plain and natural meaning of the words used. Britt Constr.,
Inc. v. Magazzine Clean, LLC, 271 Va. 58, 62, 623 S.E.2d 886,
888 (2006); West Lewinsville Heights Citizens Ass’n v. Board of
4
Code §§ 36-2 and 36-49.1:1 authorize a local government to
condemn “blighted areas” for redevelopment. However, the City
did not proceed under these statutes.
10
Supervisors, 270 Va. 259, 265, 618 S.E.2d 311, 314 (2005). When
the language of a statute is unambiguous, courts are bound by
the plain meaning of that language. Alcoy v. Valley Nursing
Homes, Inc., 272 Va. 37, 41, 630 S.E.2d 301, 303 (2006);
Williams v. Commonwealth, 265 Va. 268, 271, 576 S.E.2d 468, 470
(2003).
The Constitution of Virginia (the Constitution), in Article
I, Section 11, guarantees that private property shall not “be
taken or damaged for public uses, without just compensation.”
This section further provides that the term “public uses” shall
be defined by the General Assembly. Id.
The General Assembly set forth that definition in Code
§ 15.2-1900, which specifies that the term “public uses” found
in Article I, Section 11 of the Constitution “is hereby defined
to embrace all uses which are necessary for public purposes.”
Although the term “public purposes” is not defined in Code
§ 15.2-1900, the plain language of the term as set forth in the
statute refers to the object of a particular use of land, and
whether that object fairly can be categorized as “public” in
nature. See Webster’s Third New International Dictionary 1847
(Unabridged ed. 1993) (defining the noun “purpose” as “something
that one sets before himself as an object to be attained”).
11
The General Assembly has given local governments broad
power to acquire land for public utility uses. Under Code
§ 15.2-2109, a local government may
Acquire . . . whatever land may be necessary for . . .
locating, establishing, maintaining, operating,
extending or enlarging waterworks, sewerage, . . .
stormwater management systems and other public
utilities, and the rights-of-way, . . . pipes, poles,
conduits or wires connected therewith, or any of the
fixtures or appurtenances thereof.
When a local government seeks to acquire land for such
public uses by employing its power of eminent domain, the
locality must comply, among other things, with the provisions of
Code § 15.2-1903(B), which require the adoption of a resolution
or ordinance approving the proposed public use and authorizing
the condemnation. The resolution or ordinance must be adopted
before the condemnation petition is filed. Id.
The required content of such a resolution or ordinance is
also specified in Code § 15.2-1903(B). As provided by that
statute, “[t]he resolution or ordinance shall state the use to
which the property shall be put and the necessity therefor.”
Id. (emphasis added).
These two components of a locality’s condemnation
resolution, namely, the specification of a public use and the
statement of necessity for the proposed use, have been the
subject of numerous decisions of this Court. We consistently
have emphasized the different character of these two components.
12
Over 85 years ago, in City of Richmond v. Carneal, 129 Va. 388,
393-94, 106 S.E. 403, 405 (1921), we explained that “the
question of the necessity, propriety or expediency of resorting
to the exercise of the power of eminent domain is a legislative
function, in the absence of a constitutional inhibition.” We
also stated that “what constitutes a ‘public use’ is a judicial
question to be decided by the courts.” Id. at 394, 106 S.E. at
405; accord City of Richmond v. Dervishian, 190 Va. 398, 405, 57
S.E.2d 120, 123 (1950); Mumpower v. Housing Auth. of Bristol,
176 Va. 426, 448, 11 S.E.2d 732, 740 (1940); Light v. City of
Danville, 168 Va. 181, 208, 190 S.E. 276, 287 (1937).
Courts do not inquire into the issue of a locality’s good
faith in initiating condemnation proceedings if the locality’s
purpose is clearly stated in the resolution or ordinance.
Light, 168 Va. at 197, 190 S.E. at 282. Thus, condemnation
proceedings are not decided based on “the purposes and plans
that may be hidden in the minds of the [locality] undertaking to
condemn for a public purpose, but by the validity of what is to
be done and may be done as shown by the record in the
proceedings.” Id.
Likewise, courts will not review a locality’s statement of
necessity describing the locality’s reasons for initiating a
condemnation proceeding, unless the locality has arbitrarily or
capriciously exercised its discretion or there is evidence
13
showing manifest fraud.5 Stewart v. Highway Comm’r, 212 Va. 689,
692, 187 S.E.2d 156, 159 (1972); see Hamer v. City of
Chesapeake, 240 Va. 66, 70, 393 S.E.2d 623, 625 (1990); Light,
168 Va. at 196, 190 S.E. at 282. As we explained in Light,
a condemnation proceeding is not subject to collateral
attack upon the question of the wisdom of the
construction of a public improvement, or the means, or
the manner in which such improvement is to be
constructed, or the economic soundness of the
proposition. The decision of such questions lies
within the judgment of the [locality] proposing to
enter into and effectuate the public purpose.
168 Va. at 196, 190 S.E. at 282.
The judicial question of what constitutes a “public use” is
well established. As we stated in Carneal:
A use to be public must be fixed and definite. It
must be one in which the public, as such, has an
interest, and the terms and manner of its enjoyment
must be within the control of the State, independent
of the rights of the private owners of the property
appropriated to the use.
129 Va. at 395, 106 S.E. at 406; accord Ottofaro v. City of
Hampton, 265 Va. 26, 31-32, 574 S.E.2d 235, 237-38 (2003); Town
of Rocky Mount v. Wenco of Danville, Inc., 256 Va. 316, 322, 506
S.E.2d 17, 21 (1998); Rudee Inlet Auth. v. Bastian, 206 Va. 906,
911, 147 S.E.2d 131, 135 (1966); Mumpower, 176 Va. at 448, 11
S.E.2d at 740; Light, 168 Va. at 196, 190 S.E. at 282; Nichols
5
Hoffman does not allege that the City arbitrarily or
capriciously exercised its discretion when it initiated the
condemnation proceedings, nor does Hoffman allege the existence
of fraud.
14
v. Central Virginia Power Co., 143 Va. 405, 415-16, 130 S.E.
764, 767 (1925). The public interest in the use of the land to
be condemned must dominate any private gain in the use of that
land. Ottofaro, 265 Va. at 32, 574 S.E.2d at 238; Wenco, 256
Va. at 322, 506 S.E.2d at 21; Phillips, 215 Va. at 547, 211
S.E.2d at 96; Light, 168 Va. at 201, 190 S.E. at 284.
The determination whether a locality’s intended use of
property to be condemned qualifies as a “public use” must be
made upon consideration of the facts and circumstances of the
particular case. Carneal, 129 Va. at 398, 106 S.E. at 407. The
public remedy of condemnation will be upheld when there is a
direct “public use” of the property taken, rather than a mere
incidental or indirect public benefit. Id.; see Ottofaro, 265
Va. at 31-32, 574 S.E.2d at 237-38; Wenco, 256 Va. at 322, 506
S.E.2d at 21. Thus, as instructed by Carneal, our inquiry must
focus on the use of the land taken, not on the use of
neighboring properties.
The fact that a locality has filed with its petition of
condemnation a copy of its resolution stating that the property
will be taken for public use does not bar judicial review of
this fundamental inquiry. Ottofaro, 265 Va. at 31, 574 S.E.2d
at 237; Rudee Inlet Auth., 206 Va. at 909, 147 S.E.2d at 134.
Therefore, we must determine whether the presumed public use
stated in the City’s resolution, namely, that of storm water
15
utility use, qualifies as a “public use,” within the meaning of
Code § 15.2-1900.
Foremost in our analysis is the fact that the General
Assembly has granted localities express statutory authority to
condemn land for purposes of locating sewers and storm water
management systems. See Code § 15.2-2109. A legislative
declaration that an intended use is a public one, although not
conclusive, is presumed to be correct. Infants v. Virginia
Housing Dev. Auth., 221 Va. 659, 669, 272 S.E.2d 649, 655
(1980); Dervishian, 190 Va. at 405, 57 S.E.2d at 123.
Our decision in Dervishian is particularly helpful on the
subject of private benefit and whether a particular use
qualifies as a “public use.” There, the City of Richmond had
adopted a resolution authorizing condemnation proceedings to
acquire certain property for the purpose of developing a public
parking lot. The resolution stated that the action was
necessary “to relieve congestion in the use of streets and to
reduce hazards incident to such use.” 190 Va. at 403, 57 S.E.2d
at 122. An owner of property in the same area sought an
injunction to restrain the City of Richmond from further action
alleging, among other things, that the proposed taking was not
for a public use because the lot would primarily benefit two
department stores in the area. Id. at 404-07, 57 S.E.2d at 123-
24.
16
We held that the parking lot was a use expressly
contemplated by the city charter, and that the purpose of such
use, to provide parking space for vehicles off the city streets,
was plainly a public purpose. Id. at 405-06, 57 S.E.2d at 123-
24. We explained that “[t]he fact that property acquired to
serve the public may also incidentally benefit some private
individuals does not destroy the public character of the use.”
Id. at 407, 57 S.E.2d at 124.
Our holding in Dervishian emphasizes the principle that the
focus of a public use inquiry must be on the property to be
acquired by condemnation, not on its effect on neighboring
properties. Thus, if the record supports a conclusion that the
property proposed for condemnation will be a public use acquired
for a public purpose, the fact that neighboring property owners
will benefit from that use is irrelevant.
Applying these principles, we conclude that the circuit
court correctly held that the City sought to condemn Hoffman’s
property for a public use. The box culvert qualifies as a
public use because it is designed to function as a component
part of the City’s storm water sewer management system, a use
specifically identified in Code § 15.2-2109 as one for which a
locality may acquire “whatever land may be necessary.” The
record further shows that construction of the box culvert on the
condemned property will provide the City better access for
17
maintenance and will permit the City to place its connecting
sewer line primarily underneath public streets.
Because there will be no private use of the condemned
property, the issue of private benefit to nearby properties is
irrelevant. Thus, like the public parking lot in Dervishian,
the box culvert in the present case retains its character as a
public use, irrespective of the fact that a neighboring property
owner may benefit from the City’s exclusive use of the condemned
property.
Hoffman’s contrary argument alleging private benefit to the
Mill Race project is additionally without merit because it
confuses the City’s declaration of necessity with the public
purpose of the box culvert use. The City’s resolution states
that the storm water sewer easements are necessary to permit
development of the Eisenhower East area and the Mill Race
project in accordance with the City’s comprehensive plan, its
Eisenhower area plan, and other City plans and permits.
This declaration of necessity is not a statement of public
purpose and does not alter the character of the box culvert as a
public use. Rather, the declaration of necessity sets forth the
City’s reasons supporting its legislative determination that a
box culvert is necessary at this location. We will not review
the City’s determination of necessity because it reflects a
18
legislative decision.6 See Hamer, 240 Va. at 70, 393 S.E.2d at
625-26; Carneal, 129 Va. at 393-94, 106 S.E. at 405. Also, as
we have explained, “there is no constitutional right to a
hearing on the issue of necessity.” Hamer, 240 Va. at 70, 393
S.E.2d at 626.
Our holding is not affected by Hoffman’s challenge to the
circuit court’s finding that the “purpose of the taking” was “to
facilitate proper storm water runoff.” This finding, although
lacking evidentiary support, was merely ancillary to the court’s
ultimate conclusion that a box culvert built and controlled by
the City as part of its storm sewer system is a public use.
Moreover, the record contains manifest evidence of the public
purpose of the proposed use, namely, the City’s operation of
this sewer system component.
Finally, we find no merit in Hoffman’s argument that the
principles enunciated in Phillips v. Foster preclude the City’s
condemnation of Hoffman’s property. There, we held
unconstitutional as applied a statute permitting private
property owners to condemn for their own use the private
6
Hoffman’s rezoning and vested rights analogy also is
inapplicable to the present case because the analogy is based on
governmental action affecting the future private use of private
property, not on governmental action providing for the public
use of property as part of a public utility system based on a
legislative determination of necessity.
19
property of another. Phillips, 215 Va. at 544, 211 S.E.2d at
94.
In that case, certain developers sought to condemn an
easement across adjoining property to provide drainage for their
proposed private housing subdivision. Id. at 544, 211 S.E.2d at
94. We focused our review on the question whether there was a
public use of the land to be condemned that predominated over
the developers’ private use of the land. We held that the
taking was unconstitutional because it was predominantly for a
private use. Id. at 547, 211 S.E.2d at 96.
In reaching this conclusion, we emphasized that the terms
“public benefit” and “public use” are not synonymous. In a
condemnation proceeding, the appropriate consideration is
whether a public use predominates, not whether a public benefit
may result. Id. at 547, 211 S.E.2d at 96. The term “public
use” connotes a possession, occupation, and enjoyment of the
land by the general public, or by public agencies. Id.
In the present case, Hoffman’s argument improperly focuses
on whether there is a public benefit to be derived from the
condemnation, rather than the true issue whether the property
will be taken for a predominantly public use. Here, unlike the
private use of condemned property that we invalidated in
Phillips, the City’s proposed use of the condemned property is
exclusively a public use that will function as part of the
20
City’s storm water sewer system. Accordingly, we hold that the
City’s proposed use of the condemned property is a public use
because regardless of any incidental benefit to adjoining
property owners, the condemned property will be used exclusively
as part of a public utility system built and controlled by the
City.7
For these reasons, we will affirm the circuit court’s
judgment.
Affirmed.
CHIEF JUSTICE HASSELL, with whom JUSTICE KOONTZ joins,
dissenting.
I.
I respectfully dissent because I am of the opinion that the
majority applied an incorrect test when determining whether
public benefit to the City of Alexandria dominated the private
gain to the developer.
7
We also note that the United States Supreme Court’s
holding in Kelo v. City of New London, ___ U.S. ___, 125 S.Ct.
2655 (2005), is not applicable to the case before us. In Kelo,
the Court held that a Connecticut statute, which authorized a
locality to condemn private property and redistribute that
property to a private developer in order to achieve the
locality’s purported public use of promoting economic
development, did not violate the Fifth Amendment of the United
States Constitution. In contrast to the facts presented in
Kelo, the condemnation of Hoffman’s property will not involve
any private occupancy or dominion of the land, and the City will
enjoy exclusive ownership and control of the property.
Additionally, we observe that the holding in Kelo was based
exclusively on the United States Constitution, which is not at
issue in this appeal. Id. at 2668.
21
II.
The City Council for the City of Alexandria approved the
Eisenhower East Small Area Plan, which is a part of the City's
comprehensive plan enacted pursuant to Code § 15.2-2223. The
City desired to create a high-density economic development near
the Eisenhower Avenue Metro Station. The Eisenhower East Small
Area Plan includes retail, residential, and commercial uses.
The area would also have open space, recreational,
entertainment, and cultural amenities. Several parcels of land,
known as Mill Race, are within the Eisenhower East Small Area
Plan.
Hoffman Family, L.L.C., Peggy L. Hoffman, Hubert N.
Hoffman, III, and Linda L. Hoffman (hereafter collectively
referred to as Hoffman), own commercial real estate in the area
within the Eisenhower East Small Area Plan. Trammell Crow
Company, an owner of land adjacent to the Hoffman property, is
the developer of the Mill Race project. The Mill Race project
includes a high-rise residential apartment building, a
condominium building, and a commercial office building.
The developer desired to construct a multi-story
residential apartment building on one of the developer's parcels
in Mill Race, but that parcel was encumbered by an existing
storm water easement improved by an underground box culvert.
The culvert is a large concrete structure, four feet by six
22
feet, designed to convey storm water from upstream properties to
an outflow in a stream channel downstream. The developer of
Mill Race attempted to negotiate with the City of Alexandria to
obtain permission to build a high-rise residential building on
top of the existing box culvert, but the City rejected the
developer's request because of concerns related to the
maintenance of the culvert. The developer approached Hoffman
and inquired about the possibility of relocating an existing
storm water culvert onto a portion of Hoffman's property.
The developer was unsuccessful in its efforts to relocate
the box culvert on Hoffman's property. During a meeting with
the City Manager of Alexandria, the Director of Planning and
Zoning, the developer, and other City officials, a discussion
ensued regarding whether the developer could acquire an easement
for the relocation of the culverts from Hoffman. The minutes of
the meeting contained the following summary:
"The meeting began with a discussion on the box
culvert relocation. Mr. Sherman [developer's
representative] started the discussion by noting how
critical the covenant is related to the streets and
how development of the parcels was dependent on it.
He voiced a concern that Hoffman would be able to
extract more as time goes on. Mr. Viola [developer's
representative] commented that Hoffman had received
the paperwork from the City Attorney's office and was
currently reviewing it, although it looked like what
had been requested had been provided. He brought up
the point that if the box culvert has to be moved, an
easement would be needed for the realignment, since it
would have to cross the Hoffman and ATA properties.
Mr. Rak noted that the streets within the project
23
would be dedicated to the City. He commented that a
discussion with SP? would take place regarding the
realignment of the culvert and utilities, although
moving the utilities would not impact the Hoffman
development. Mr. Rothmeyer emphasized that a signed
document would be needed sooner rather than later,
since it would be harder to get Hoffman to sign as the
project moves along because he will have greater
leverage. He voiced concern about any additional time
it would take, since the City had taken so [much] time
on the covenant issue. [The city manager] commented
that the City would force the issue and that it would
not take as long as the covenant because it is a
public issue instead of a private one."
Emily Baker, the City Engineer for the City of Alexandria,
testified during the condemnation proceedings that "[b]ut for
the Mill Race project, there were no plans to relocate that box
culvert." The existing box culvert was functioning properly,
and it was in good repair. The existing box culvert was
expected to function properly for an additional 20 to 70 years.
The existing box culvert had sufficient capacity to serve the
area that drained into it. Baker testified as follows:
"Q: It [the current box culvert] had sufficient
capacity to serve the area which drained into it?
"A: Yes.
"Q: And in fact, there was no intrinsic need to
relocate that box culvert other than the desire to put
a building on top of there?
"A: Yes.
"Q: There was no engineering necessity to move
that box culvert other than the fact that Mill Race
was going to put a big building where Building No. 1
is shown?
"A: There would be no reason to move the sewer
if there were not construction on top of it."
24
She also acknowledged that the proposed new box culvert
would have less capacity than the present box culvert. Baker
further testified that a grid pattern of streets that the City
desired to create in the vicinity of the Eisenhower East Small
Area Plan could have been accomplished without an easement on
the Hoffman property.
Additional expert testimony confirmed that the relocation
of the box culvert onto Hoffman's property will actually
decrease the capacity of the storm water system. The new box
culvert is exactly the same size as the existing culvert, but
because the new box culvert contains "bends and turns," it has
less capacity than the existing box culvert. The bending of a
storm water system decreases its hydraulic capacity.
Richard Baier, the City's Director of Transportation and
Environmental Services, testified as follows:
"Q: Before the Mill Race project came along,
there were no plans to relocate the box culvert?
"A: That's correct."
. . . .
"Q: Well, then, straight to the chase, what
generated the need to relocate the box culvert and the
placement of a building on top of it?
"A: That's correct.
"Q: Not the road grid.
"A: The road grid provided a place just like
Eisenhower Avenue provided a place for the sanitary
sewer. The road grid provided a place for the
relocation of the storm sewer."
Emily Baker testified as follows:
25
"Q: Are you aware of any other time the City has
asked someone to relocate a perfectly good operating
facility just because a street was built nearby?
. . . .
"A: I'm not aware of any only because a street
was nearby.
"Q: The real reason as you stated earlier was,
they wanted to put a building on top.
"A: That's right."
There are many locations in the City of Alexandria where
utilities are not constructed in a street.
The developer of Mill Race could have relocated the box
culvert on its property without impacting the Hoffman property.
Baier testified as follows:
"Q: From an engineering standpoint, you're an
engineer, the developers of Mill Race could have
relocated the box culvert in their property without
touching the Hoffman property?
"A: That's correct. That would have been less
preferable, but that's correct."
The City claimed that it prefers that public utilities,
such as storm sewer box culverts, are located in public streets
when possible, even though the existing culvert involved in this
litigation is not so situated. The City presented testimony
that it prefers the location of the sewer in the street because
that location provides continuity of service, easier
maintenance, and less disruption during maintenance. With the
creation of new streets, the City will be able to relocate the
storm sewer box culverts onto public streets.
26
The condemnation resolution that the City Council adopted
does not contain any language that suggests that the City
condemned Hoffman's property for reasons related to the
improvement or construction of a sewer discharge system. The
only purported public purposes stated within the resolution are
the development of the Mill Race project and the implementation
of the Eisenhower East Small Area Plan. In response to an
interrogatory that Hoffman propounded to the City during this
litigation requesting that the City state all facts upon which
it relied in asserting that the taking was for a public use, the
City did not identify any uses related to the improvement or
construction of the sewer system; rather, the City only
identified goals related to economic development.*
If the culvert is not relocated onto the Hoffman's
property, the developer of Mill Race would have to reduce the
building design of the high-rise apartment by 60,000 square feet
*
Over the course of this litigation, the City has shifted
the focus of its public use argument from the benefits of
economic development to the alleviation of maintenance concerns.
As previously stated, the condemnation resolution and the City's
response to Hoffman's interrogatory focused on the secondary
effects of economic development. At trial, counsel for the City
argued that the imposition of the street grid was the "driving
factor" which led to the City's decision to relocate the box
culvert, and that "the developer's net gain is a nonexistent
thing." On appeal, the City argues that "the significant
planning and zoning benefits to the City flowing out of the
implementation of the Eisenhower East Small Area Plan and the
Mill Race development only buttress the public benefits of
having greater control over the storm sewer."
27
of buildable area. This reduction in square footage would
reduce the value of the building to the developer by at least
$2,090,000. The developer of Mill Race has agreed to reimburse
the City for all condemnation expenses that the City incurs,
including legal expenses.
III.
This Court, for over 100 years, has repeatedly held that
private property can only be condemned if that property is to be
taken for a public use. We stated in Fallsburg v. Alexander,
101 Va. 98, 102-03, 43 S.E. 194, 196 (1903):
"Whenever the public use of property requires it,
the private rights of property must yield to this
paramount right of sovereign power to take it for the
public use. When so taken, it is the character of the
use for which the property is taken, and not the means
or agencies by which it is taken, which determines the
question whether it is legally taken under the
legitimate exercise of the right of eminent domain,
but in all cases the use for which it is proposed to
take private property in the exercise of this right
must be a public use, or for a public purpose, and
this . . . is a question for judicial determination."
"[T]he issue 'whether a taking is for a public purpose is a
judicial question, reviewable by the courts. . . .' " Ottofaro
v. City of Hampton, 265 Va. 26, 31, 574 S.E.2d 235, 237 (2003)
(quoting Hamer v. School Bd. of Chesapeake, 240 Va. 66, 70, 393
S.E.2d 623, 625 (1990)); accord City of Richmond v. Carneal, 129
Va. 388, 394, 106 S.E. 403, 405 (1921) ("What constitutes a
28
'public use' is a judicial question to be decided by the
courts.").
The principles we must apply to ascertain whether a
landowner's property was taken for public use are well-
established. We have repeatedly stated that
"the public use implies a possession, occupation, and
enjoyment of the land by the public at large, or by
public agencies; and a due protection to the rights of
private property will preclude the government from
seizing it [from] the hands of the owner, and turning
it over to another on vague grounds of public benefit
to spring from the more profitable use to which the
latter may devote it."
Phillips v. Foster, 215 Va. 543, 547, 211 S.E.2d 93, 96 (1975);
accord Ottofaro, 265 Va. at 31-32, 574 S.E.2d at 237-38. This
Court has consistently held that:
"A use to be public must be fixed and definite.
It must be one in which the public, as such, has an
interest, and the terms and manner of its enjoyment
must be within the control of the State, independent
of the rights of the private owner of the property
appropriated to the use. The use of property cannot
be said to be public if it can be gainsaid, denied, or
withdrawn by the owner. The public interest must
dominate the private gain."
Rudee Inlet Auth. v. Bastian, 206 Va. 906, 911, 147 S.E.2d 131,
135 (1966).
This Court has also held, without equivocation, that "[t]he
public interest must dominate any private gain." Ottofaro, 265
Va. at 32, 574 S.E.2d at 238. We have applied this fundamental
principle in this Commonwealth for over 100 years. Town of
29
Rocky Mount v. Wenco of Danville, Inc., 256 Va. 316, 322, 506
S.E.2d 17, 21 (1998); Rudee Inlet Auth., 206 Va. at 911, 147
S.E.2d at 135; Mumpower v. Housing Auth. of Bristol, 176 Va.
426, 448, 11 S.E.2d 732, 740 (1940); Light v. Danville, 168 Va.
181, 201, 190 S.E.2d 276, 284 (1937); Nichols v. Central Va.
Power Co., 143 Va. 405, 416, 130 S.E. 764, 767 (1925); Carneal,
129 Va. at 395, 106 S.E. at 406; Miller v. Town of Pulaski, 109
Va. 137, 142, 63 S.E. 880, 882 (1909). See also Phillips, 215
Va. at 547, 211 S.E.2d at 96; Norfolk County Water Co. v. Wood,
116 Va. 142, 145-49, 81 S.E. 19, 20-22 (1914); Jeter v. Vinton-
Roanoke Water Co., 114 Va. 769, 778-79, 76 S.E. 921, 925 (1913);
Fallsburg, 101 Va. at 109, 43 S.E. at 198.
We have applied the requirement that the public interest
must dominate any private gain irrespective of the legal status
of the condemnor. We applied this requirement in each of the
following cases even though the legal status of the condemnor
varied: Ottofaro -- condemnor was a city; Town of Rocky Mount -
- condemnor was a town; Rudee Inlet Auth. -- condemnor was an
authority that was a political subdivision of the Commonwealth;
Nichols -- condemnor was a public service corporation that
manufactured electricity; Carneal -- condemnor was a city;
Norfolk County Water Co. -- condemnor was a water company
chartered by the Circuit Court of Norfolk County in 1899;
Jeter -- condemnor was a water company incorporated by an act of
30
the General Assembly; Phillips -- condemnors were private
individuals and a private corporate entity.
In making its determination whether the public interest
dominates the private gain, this Court must consider surrounding
circumstances. Any inquiry that ignores the circumstances
surrounding the condemnation when determining whether the public
interest dominates the private gain renders meaningful judicial
review impossible. We stated in Carneal:
"What is a 'public use' is not a matter of discretion
with the courts, but is one of sound judgment, under
all the facts and circumstances of the particular
case. Different courts sometimes arrive at different
conclusions upon the same state of facts, but whenever
the remedy is applied, it should always be because
there is a direct 'public use' of the property taken,
and not a mere incidental or indirect public benefit."
Carneal, 129 Va. at 398, 106 S.E. at 407.
In Phillips, supra, this Court considered surrounding
circumstances when conducting judicial review of the issue
whether private land was taken for a public use. In Phillips,
this Court decided whether former Code § 21-428 was
unconstitutional as applied to the facts of that case. The
statute that authorized the taking of private property for
public use stated:
"Any person desiring to drain his lands through
the lands of others may apply to the circuit court of
the county or corporation court of the city in which
the whole or a part of the last mentioned lands lie,
for the appointment of commissioners to ascertain and
report upon the property [sic] of granting such
31
application, the damages that may be sustained by the
party or parties through whose lands the drain is
proposed to be run. Notice of such application shall
be given to the proprietors of the lands through which
drain is to be run in a manner prescribed by [§§ 25-
46.9-.13]."
In Phillips, the condemnors filed a condemnation petition
against the landowners seeking to condemn a drainage easement
about 12 feet wide and 200 feet long across the landowners'
property in Washington County. The landowners' land was
adjoined on the south by a State route and on the north by a
creek. The condemnors owned a tract of 49 acres of land
adjacent to the State route, directly across from the
landowners' property. The condemnors intended to develop their
49-acre tract of land into a private housing subdivision. A
Washington County subdivision ordinance required that the plan
of subdivision be submitted for approval to several governmental
agencies, including the Virginia Department of Highways, which
refused to approve the plan because the plan did not provide for
adequate surface water drainage.
After an unsuccessful effort to purchase the drainage
easement from the landowners, the developers filed a
condemnation petition. The landowners challenged the validity
of the statute on the basis that it was unconstitutional on its
face and that it was unconstitutional as applied. The trial
court rejected the landowners' challenge and ultimately approved
32
the condemnation and awarded the drainage easement to the
condemnors and damages to the property owners.
In Phillips, we applied the very same test that has been
applied in this Commonwealth for over 100 years:
"The salient consideration is not whether a
public benefit results, but whether a public use is
predominant. 'Public use and public benefit are not
synonymous terms.' Richmond v. Carneal, 129 Va. 388,
393, 106 S.E. 403, 405 (1921). It is of no importance
'. . . that the public would receive incidental
benefits, such as usually spring from the improvement
of lands or the establishment of prosperous private
enterprises: the public use implies a possession,
occupation, and enjoyment of the land by the public at
large, or by public agencies; and a due protection to
the rights of private property will preclude the
government from seizing it in the hands of the owner,
and turning it over to another on vague grounds of
public benefit to spring from the more profitable use
to which the latter may devote it.' "
215 Va. at 547, 211 S.E.2d at 96.
In determining whether there was a public benefit in
Phillips, this Court specifically considered surrounding
circumstances, and this Court did not limit its inquiry to the
property that was the subject of the drainage easement. This
Court considered the circumstances surrounding the developers'
49-acre tract, the fact that the drainage easement would
ultimately become public property, and many other factors. This
Court stated in Phillips:
"In this case, the attempt to develop the
[condemnors'] 49-acre tract for private gain is the
genesis and the basis for this condemnation of the
easement across land of the [condemnees]. Without the
33
urge to develop the land, the pertinent provisions of
the subdivision ordinance are not activated. Without
the attempt to develop, Highway Department approval of
the plans for drainage is unnecessary. Without the
development, the statute transferring title to the
easement does not become operative. While the public
may be incidentally affected as the result of the
ordinance, as the result of the Highway Department
regulations, and as the result of the statutory
provisions, nevertheless, this incidental public
benefit is ancillary to and collateral to the
underlying and primary purpose of the taking. That
purpose in this case is for the improvement of one's
land at his neighbor's expense, and for the
establishment of a prosperous private enterprise by
the former to the detriment of the latter. Such a
taking is not for a public use within constitutional
limitations, and amounts to an unconstitutional
application of the statute in question in this case.
Id. at 547, 211 S.E.2d at 96.
Clearly, this Court in Phillips did not limit its inquiry
solely to the property subject to the condemnation. Had this
Court done so, the Court's above-referenced discussion would
have been limited to the drainage easement. Thus, the
majority's statement – "that the focus of a public use inquiry
must be on the property to be acquired by condemnation, not on
its effect on neighboring properties" – is inconsistent with our
decision in Phillips.
I observe that the majority states in its opinion that
"[o]ur holding in Dervishian emphasizes the principle that the
focus of a public use inquiry must be on the property to be
acquired by condemnation, not on its effect on neighboring
properties." I respectfully disagree with the majority's
34
interpretation of our decision in City of Richmond v.
Dervishian, 190 Va. 398; 57 S.E.2d 120 (1950). In that case,
the City of Richmond passed a resolution authorizing the city
attorney to institute condemnation proceedings to acquire
property that would be used for a parking lot or storage garage
for vehicles. Id. at 403, 57 S.E.2d at 122. This Court held
that if "a municipality may, for the purpose of providing
parking space for vehicles, take land adjacent to an existing
street, we know of no reason why it should not provide such
parking space away from the street. The purpose is the same and
is a public one in either instance." Id. at 406, 57 S.E.2d at
123-24.
The landowners in Dervishian argued before this Court
"in their brief that the acquisition of the property
here in question for a parking lot will primarily
benefit two near-by department stores and will,
therefore, not be for a public use. This contention
is beside the point. The fact that property acquired
to serve the public may also incidentally benefit some
private individuals does not destroy the public
character of the use."
Id. at 407, 57 S.E.2d at 124. This Court did not hold in
Dervishian that a court, when undertaking judicial review of
whether a public purpose existed, is required to focus its
inquiry solely upon the property that is the subject of the
take.
35
The majority's holding in today's decision renders
meaningless the concept of judicial review of the issue of
public use. If I understand the majority's test correctly, a
city in Virginia could decide to generate substantial tax
revenue by enticing a developer to construct a football stadium
that would be the home of a professional football team. The
developer might acquire the parcels upon which the stadium would
be constructed, but fail to obtain the necessary drainage
easements from residential property owners who live in the
neighborhood adjacent to the site of the proposed stadium. The
majority's holding would permit the City, which has a properly
functioning sewer system, to condemn residential property to
construct culverts throughout the residential neighborhood to
suit the developers of the football stadium. Upon judicial
review, this Court could not consider the football stadium, but
would be compelled to focus its inquiry upon whether the
condemned land was used for a sewer. Certainly, this narrow
view, which the majority today has established as the
controlling test, is inconsistent with meaningful judicial
review of condemnation proceedings in Virginia.
The following example is also illustrative of the
restrictive effect of the majority's test. Assume that the
board of supervisors of a large Virginia county adopted a
development plan for the county that includes a large mix of
36
retail, commercial, and open space in an area that is currently
zoned agricultural. The residents of the agricultural area are
farmers whose ancestors have been farmers in that county for
many generations. The farmers wish to continue their
livelihoods. The county, over the objection of the farmers,
decides to condemn the landowners' farms and install underground
culverts as a part of the county's sewer system, even though the
county has perfectly functioning culverts that serve the
agricultural district. Simultaneously, the county negotiated
with a developer who agreed to purchase the farmers' property
from the county and develop the property in a manner consistent
with the county's development plan. The majority's test would
preclude this Court from considering an impending transfer of
the property to a private party during judicial review of the
question whether the county's decision to condemn the farmers'
property was for a public purpose. I think, as these scenarios
reveal, that the restrictive nature of the majority's test
renders judicial review meaningless.
IV.
I am compelled to conclude that upon application of the
correct test, which includes consideration of surrounding facts
and circumstances, in the case before this Court the public
interest does not dominate the private gain and, hence, the
taking of Hoffman's private property was illegal. The City
37
admitted, through its officials, that the City did not need a
new culvert and that the existing culvert was functioning
properly. The City admitted that the new culvert would have
less sewer capacity than the current culvert because of the
design of the new culvert. The City admitted that the culvert
would not need to be relocated but for the City's desire to
enable the private developer to construct a high-rise building
on the site of the current culvert. The City Engineer admitted
that the "real reason" the City desired to relocate the culvert
was to enable a private developer to construct a building on the
site of the existing culvert. Even though the developer in this
case could construct a structure on the current site, the
structure would be significantly smaller than its desired
structure and would result in a $2,000,000 diminution in the
value of the proposed project. The City admitted that it could
construct its grid pattern of streets without the necessity of
relocating the culvert.
V.
For the aforementioned reasons, I would reverse the
judgment of the circuit court, and I would enter a judgment in
favor of Hoffman.
38