Ruling on value of condemned property upheld by high court

Thursday, Aug. 28, 2003 | 8:54 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- The Nevada Supreme Court Wednesday ruled that governments, when condemning property, must consider its highest and best use in setting the value.

The court upheld a decision by District Judge Gene Porter to award $190,000 to Augustine Bustos Jr. and Vaughnie Bustos for their house and residential lot that was condemned by Las Vegas for widening of Alta Drive.

The city set the value at $91,500, saying the property was in a residentially zoned area.

But the Bustoses said the property was located across the street from the Las Vegas medical district and a number of residences had already been converted to professional offices.

They said the land could be rezoned to upgrade its value. The city disputed that, saying the zoning probably would not be changed.

The Supreme Court said a District Court "may consider the effect of future rezoning or variances on the highest and best use of the condemned property when determining its value."

The court said there was undisputed evidence that most of the land surrounding the property had been converted to commercial use except for an area 800 feet from Tonopah Avenue to Deauville Drive where the Bustoses' house was located.

It said there was substantial evidence presented at the trial "that a reasonable and prudent buyer would conclude that he or she could likely obtain a zoning change, given the character of the neighborhood, the high volume of traffic on Alta Drive and the surrounding properties."