United States v. 91.4 Acres of Land
United States v. 91.4 Acres of Land
Opinion of the Court
This is a condemnation proceeding, condemning 91.4 acres of land, more or less, on the island of St. Thomas, Virgin Islands of the United States. The said 91.4 acres of
Parcel A ........................................ $2,906.00
Parcel B ........................................ 1,620.00
Parcel C ........................................ 1,380.00
and for the fee to the rights of way, roads or highways on the lands taken, the sum of one ($1.00) dollar.
The defendants herein were granted an extension of time for filing answer. Defendant, Jose S. Cid, filed his answer on October 27, 1941, and defendant, Herman O. Creque, filed his answer on November 10, 1941. The defendant, Jose S. Cid, alleged that the fair market value for the 41.4 acres, comprising Parcel A, was over $15,-500.00, and that damage to the remaining portion of contiguous land not taken by the government was $4,480.00, which latter claim was waived. Defendant Herman O. Creque alleged in his answer that the fair market value of Parcels B and C, totalling 50 acres, was not less than $17,500.00.
In accordance with the statute of the Virgin Islands, the Court appointed three commissioners to take the evidence, to make their appraisement, and to file with this court a report of their appraisements. The appraisement report of the said commissioners was duly filed.
THE RECORD HEREIN SHOWS THE FOLLOWING
Witness Encarnación Vasquez, called in behalf of the defendants, testified that about two months ago he sold 15.71 acres of land to the government; that the said land had about five to six acres in cultivation, and the rest in guinea grass; that the cultivation consisted of oranges,
Witness Herbert E. Lockhart, Realtor, called in behalf of the defendants, testified that about two and a half years ago he sold 236 acres of land to one Henry Molina for $11,800.00 which equals $50.00 per acre; that since that time he has had another portion of this land subdivided into lots 60' x 120' and 80' x 200'; that the 80' x 200' lots sold for $600.00 and 60' x 120' lots for $250.00 to $500.00; that after he sold this plot of land to Molina he decided not to sell any more plots by acreage. He further testified that the Creque and Cid lands are sandy bathing beaches, located on, and accessible to, the main highway running from the center of town west through the Bourne Field air base; that Parcel B herein is the site where the Naval officers homes are being built and Parcel C is just west of the airplane hanger; that these two sites are obviously suitable for building sites; that Parcels A, B and C are all desirable sites if one is interested in the beach. That Parcel A has the best beach of all. He further testified that the trend of property values all over the island of St. Thomas has been materially upward. That the demand for land has far exceeded the supply in St. Thomas; that the 236 acres which he sold to one Moliná has no beach at all; that the entrance is not on the main highway, and that the road leading into the land was not
Witness Cyril Francois, called in behalf of the defendants, testified that he is a clerk in the St. Thomas Lumber and Trading Company; that he keeps books of their sale of land; that they own much land in St. Thomas and testified of the following sale: that they sold about ten acres of land to Svend Mylner about two years ago in an east inland valley; that it was rolling land about 500' above sea level and grass pasture land; that the amount of the said sale, was $2,500.00 for 12.5 acres or $200.00 per acre; that they also sold two acres of rolling land on the south side, on the main road, to one Rasmus Johansen for the sum of $500.00 or $250.00 an acre. He further testified that Mr. Lockhart sold one-quarter to one-third acre on the road leading to Bourne Field for $700.00 which is worth far less per acre than the land in question. He valued the beach land herein at $1,000.00 per acre in single acre plots. He also testified that the St. Thomas Lumber and Trading Company sold to District Attorney, James A. Bough, five acres of rolling land in 1940 for $1,000.00 about one and a half miles from town; that it is not overlooking the sea, has no beach, and no view of the sea, and that its elevation is about 1000 feet. He also testified that land values in St. Thomas are going up daily, and have gone up within the last year and a half.
Witness Joseph Sibilly, called in behalf of the defendants, testified that he is a merchant; that he buys and sells land; that he owns eight acres of land on the north on top of the mountain; that he sold six plots near Mafolie; four last year and two this year; that he does not sell by the acre, but by the plot; that each plot is approximately one acre; that he sold them at $200.00 each; one plot which consisted of three acres he sold for
Witness Louis Estornel, called for the defendants, testified that he is in the real estate business, that he started selling property in St. Thomas and has been an appraiser in probate cases in the District Court for the past fifteen years; that the section of land in question has a fine sandy beach; that he measured it, and the Cid property, Parcel A, has one thousand feet frontage on the main road and five hundred feet in the beach. That the main road is about forty feet from the beach. This land is considered suitable for subdividing; that 20 to 25 acres of Parcel A is suitable for subdivision and this portion subdivided was worth a total value of $9,600.00. There are a “lot of fruit trees” there and “plenty of guinea grass”; also a “lot of timber”; that he valued the remaining twenty acres at $3,000.00. This land had not been subdivided. He has not before subdivided any large plots similar to this one. The witness further testified that Parcels B and C are west of Bourne Field; and that part of Parcel C has a long shore line; that this parcel has less beach than
Witness Ulysses GTmenez, called in behalf of the defendants, testified that he is a realtor, that he sold approximately two hundred lots in the last two years; that he has just sold the last one in his own subdivision known as Hassel Have which was subdivided into 200 lots. He claims 13 acres. The public surveyor says eight and one-half acres. It is under controversy. He paid $3,000.00 for the whole plot, at the north boundary of town. He testified that Parcel A was suitable for subdivision into lots; that a part could be divided into fifteen lots with about 100' frontage and about 1000' deep, that the value would then be $1,000.00 per lot, or $15,000.00. He states that 34 acres could be divided into lots; that six acres could be sold as forest land. He valued the whole 41.4 acres, comprising Parcel A, as of June 1941, at $15,390.00. He states that Parcel B is suitable for building purposes,
Witness Leopold Barbel, called in behalf of the defendants, testified that he is a realtor and a property owner and has been in the business for about ten years; that this property is on the macadam road, the main road from town; that Parcel B is next to Lindbergh Bay, and next to the playground of the Marines; that Parcel C is on the south side of the road directly across from Parcel B; that Parcel B is very adaptable for building sites and easily accessible from the main highway; that the whole portion of Parcel C is adaptable for building; that it is much more hilly and rocky; that Parcel C has a small strip of beach, the rest lies in gravel. That he would consider the Creque land, either B or C, as being worth between $250.00 to $275.00 an acre. He valued Parcels A, B, and C, as a whole, between $250.00 to $275.00 an acre.
Witness Francois E. de Lagarde, called in behalf of the defendants, testified that he is a clerk; that Mosquito Bay was given out as homesteads to poor people and was bought by the government in 1934 at $60.00 an acre; that it was then bush land with a swamp nearby which swamp has now been filled in as a government airfield; that the swamp was about one-quarter of a mile from this land. He also states that prices have gone up considerably in the island; that he knows places which were formerly $60.00 per acre which cannot be purchased today for $100.00 an acre; that you cannot buy land in that vicinity by the acre regardless of price; that he lives in one of the homesteads adjacent to Bourne Field; that other than Mr. Cid’s or Mr. Creque’s land, and the gov-
Denzil Noll, called in behalf of the defendants, testified that he has lived in the Virgin Islands for twenty-four years. He was a former judge of the Police Court and now attorney for one of the defendants in this case. He testified that the Molina property of 236 acres, mentioned before, sold for $40,000.00 after being improved by a large house, garden, garage, and so forth; this price included the improvements, however.
The next witness called by the defendants was the District Attorney, James A. Bough, who testified that he is the District Attorney for the Virgin Islands; that he contracted to buy five acres of land at Charlotte Amalie about four miles east of town at $200.00 per acre; that it is surrounded by hills; that one can’t see the town from there; that there is no view of the sea. He testified, however, that the property had sentimental value in that it was next door to one of his best friends. He also bought 2.2 acres at Estate Soldberg which has a magnificent view. It is 1.2 miles from town; you can see west, the harbor south, the town east, Viequez and El Yunke, and a portion of the sea east. That he bought this in July, 1941, and paid $300.00 for 2.2 acres. That it is 900' above sea level, and that it was purchased from Mr. Boschulte. He testified, however, that Mr. Boschulte will not sell land. He rents land at a very high price. Mr. Bough states that he thinks that the five acres which he bought for $200.00 an acre is actually worth $100.00 an acre.
Defendant Cid was called. He testified that he values Parcel A at $15,500.00. He states that Parcel A had 25 acres of guinea grass; that from this land he sold grass, cord wood, fence posts, and used wood to supply fuel for his town bakery, all of which was supplied from this land; that there is also a well on the land, eleven feet deep
The next witness called in behalf of the defendants was defendant Creque who testified that Parcel B and Parcel C are both bounded by Bourne Field airbase; he valued Parcels B and C at $17,500.00. He states that he had a stone crusher on Parcel C which he values at $1,900.00; that there was a stone quarry on each parcel, one on B and one on C. That the quarry on Parcel B is red stone and rare in this island; that he expended two tons of dynamite in blasting this quarry; that the crusher was bought four years ago; the crusher, screens, stone oscillator, and so forth; that it would cost $100 to remove the crusher to the dock for old iron. That the motor of the crusher has not been in operation since 1938; that he has approximately three hundred tons of crushed rock still on the property.
Then, in behalf of the government, witness Lieut. Commander Robert C. Johnson, (C.E.C.) U.S.N., was called. He testified that he is the resident officer in charge of construction in St.- Thomas; that he has been here for seventeen months; that he is in charge of all Navy construction in St. Thomas, and most of the land sales to the Navy have been made through him; that the amount deposited for these defendants was $5,907.00; that this was arrived at on the basis of the appraisal made by a Board appointed by the Governor, consisting of Mr. Donald S. Boreham, Captain Holmberg, U.S.M.C., and Mr. Nichols of the Department of Agriculture. He states that he thinks $5,907.00 represents a fair value for the total 91.4 acres, comprising A, B, and C. He states that before he came down to St. Thomas, seventeen months ago, either in 1938 or in 1939, the Navy bought 222 acres of Nisky land for the submarine base at approximately $74.00 per acre. That the Navy paid $16,500.00 for the 222 acres;
The next witness called in behalf of the government was E. Bindley. He stated that he paid $40,000.00 for the 238 acres of land aforementioned as previously sold by Lockhart to Molina and known as Estate Contant; that at the time of his purchase he considered the value as being about $20,000.00 for the buildings and improvements and about $20,000.00 for the 238 acres of land, or approximately $84.00 per acre. This was in December of 1940.
Mr. Bough was recalled and testified that the valuation placed on the Encarnación Vasquez property mentioned above was $4,000.00 and that the government paid $3,200.00 by agreement for the 15.71 acres. (This valuation per acre would be $254.00).
Mr. Creque was recalled and testified that 16.5 acres which he sold at $2,000.00 or $125.00 per acre was valued by him at $250.00 per acre, and that he agreed to sell it to the Municipal Government at half price so that they could give it to the Navy.
In addition to the foregoing evidence, witness Donald S. Boreham was recalled. He testified again as to his qualifications stating that he valued Parcel A as a whole; that his valuation of Parcel A was at $70.00 to $80.00 per acre as a whole. He then placed his valuation of the fifty acres, comprising B and C, taken as a whole, at $90.00 to $100.00 per acre. ($70.00 per acre for “A” would be $2,898.00; and $80.00 per acre $3,212.00). (Parcels B and C at $9.00 per acre, $4,500.00 and at $100.00 per acre, $5,000.00)..
Witness Ludvig Christensen, one of the commissioners appointed by the Court, and Cashier'of the Virgin Islands National Bank, was then called in behalf of the defendants herein. He testified that he was the Cashier of the Virgin Islands National Bank; that.he has been
The record further shows from the testimony of witness Boreham, the sales of other plots of land in the far eastern end of the island, quite some distance from town, and in various size plots, to wit:
1. Estate Red Hook: Nazareth and Nadir sold in March, 1941, 710 acres for $5,000.00. He states, however, that the parcels in this case are superior land. That the best part of Estate Nazareth sold for $40.00 to $50.00 per acre; that the Creque land is admirable compared to it; that this land is better only in spots than Cid’s; that it is about seven miles from town at the east end of the island. He also testified that an estate of Botany Bay consisting of 450 acres sold in 1938 for $2,500.00; there are no details of this land. He further testified that one Haverkamp purchased 26 acres at Magens Bay for $4,600.00 which included buildings valued at about $2,000.00. He states that the view of this Haverkamp land is as good as Creque’s land. But the land is all hillside except where the house runs out on a little spur. ($2,600.00 for 26 acres would be $100.00 per acre). He further testified that Lockhart sold to one Hartman 20 acres of land back of West Indian Company’s docks in June, 1940, for $1,700.00. This was pasture land in the middle of south side of the island and within one mile of town, but in a hollow back of West Indian Company’s dock and runs toward Flag Hill, and it is comparatively very steep. It is not adaptable to building sites. He also testified that the Benjamin lot' sold by Lockhart for
Leon Mawson, Secretary to the Judge of the Court and Court Reporter, was then called by the defendants. He testified that he purchased five acres of land in the east side of the island, 4.4 miles from town, at $1,250.00 or $250.00 per acre. That the land is very similar to this land in question. Both sides then rested and the matter was submitted to this court.
OPINION
All of the evidence, taken as a whole, indicates that there has definitely been a constant increase in the sale price of land in St. Thomas, and that the demand for land far exceeds the supply. It is also clear from this record that some of the witnesses have given fantastic and widely varying estimates of the value of land. I think this is due in part to the fact that St. Thomas is a very small island, only fourteen miles long and three and one-half miles wide at its widest point, and within that space the island rises to heights of about twelve hundred feet in many of the highest places; there are numerous bays and an irregular coast line; there are many hills . that are very steep and there is a' very small percentage of level land; it is therefore clear that there is not very much similar land in Saint Thomas. Most plots of land are different in character from most others. In addition, there is an apparent unwillingness on the part of owners of land here to dispose of land; and, as a consequence, there are not a large number of sales of vacant land in St. Thomas* It is difficult, therefore, to base market values. upon customary sales' be
Both sides have argued that larger plots are worth less per acre than smaller plots. The defense attorneys have suggested it in comparing Estate Contant of 288 acres with these plots of 41 and 50 acres respectively, and the government attorneys have argued it in comparing these plots with smaller ones of a few acres. The Court feels that it works both ways. That if other elements are equal these plots of 41 and 50 acres respectively would have a higher market value per acre than Estate Contant which sold for $50.00 per acre and resold for $84.00 per acre in December of 1940, and that likewise they would have a far smaller market value than the rest of that same estate some of which has since been sold in small lots up to $500.00 per lot, and far exceeding $500.00 per acre; and that likewise it would have a less market value than other parcels, even if similar in nature, which sold in plots of two, five or twelve acres each. When we add to all of these considerations the record which we have available here of recent sales, together with witness Donald Boreham’s testimony that $200.00 is standard for land in the Mylner vicinity, together with the wide variations in testimony as to the desirability of various parcels and various portions of the island, it is the opinion of this court that $200.00 per acre normally represents a fair market value of choice suburban land in St. Thomas in plots of two to twelve acres. It is also the opinion of this court from all of the testimony herein that these plots in question, although choice in some respects, are not as choice or valuable in other respects as the most valuable land in
Witness Donald Boreham has valued Parcel A between $70.00 and $80.00 per acre; Parcels B and C between $90.00 and $100.00. Witness Ludvig Christensen has valued Parcel A as a whole at approximately $148.00 per acre; Parcels B and C, as a whole, at $152.00 an acre. It would therefore seem to the Court that the valuation placed by witness Ludvig Christensen more correctly represents the market value of this land than that valuation placed by witness Boreham, and the Court is inclined to feel that witness Ludvig Christensen’s testimony as to the conservative nature of their valuation for bank mortgage purposes is the correct explanation of the different viewpoint in which these two appraisers made their appraisal. And while the Court does not give credence to many of the excessive valuations placed by some other witnesses, it is to be noted that in the record all witnesses called for the defendants, all of whom are men buying and selling, or dealing in land in
After weighing all of the above-mentioned factors, together with the above record of available recent sales on the island of St. Thomas, this court is of the opinion that the fair market value of these parcels of land as of June 14, 1941 was as follows, to wit:
Parcel A (41.4 acres) $6,148.00
Parcels B
and C (50 acres) 7,610.00
This court is of the opinion that there is no merit in defendant Creque’s claim for value of machinery and equipment on the said land which machinery and equipment had not been used for more than two years and had been allowed to deteriorate, and which machinery, and equipment he was apparently allowed to remove if he so desired. (There is no evidence that this machinery and equipment was a fixture taken with the land). The Court is further of the opinion that if he desires to remove the said machinery and equipment to some other place of his own choosing, that it must be at his own expense, and that it is not the government’s obligation to pay for its removal. The Court is also of the opinion that any market value which might have attached to the aforesaid land by reason of the stone quarries thereon has been covered in the above opinion of the fair market value of each of the parcels stated above.
Further, with respect to the fees of the three commissioners required by statute, and which fees the statute also requires the Court to fix, as part of the costs of this proceeding, the record shows that inspection of the properties, hearings, and the taking of evidence covered a total of approximately three and one-half days on the part of
Findings of fact and decree may be submitted in accordance with the foregoing opinion.
Reference
- Full Case Name
- United States v. 91.4 ACRES OF LAND, MORE OR LESS, IN ST. THOMAS, VIRGIN ISLANDS, and JOSE S. CID
- Cited By
- 4 cases
- Status
- Published