1. Eminent Domain--Dept. Of Administration condemnation--authority
The trial court did not err by concluding that the State was authorized to condemn
defendant's undivided one-fifth interest in land used for mosquito control and wildlife
management (an ownership arrangement resulting from a prior judicial decision). The
Department of Administration can act to condemn land using either its own authority, N.C.G.S.
§ 146-22.1(1) (Board of Transportation procedures) or the authority of the requesting agency. It
is clear that here the State utilized Transportation procedures, that the trial court could
reasonably determine from the affidavits, exhibits, and the Secretary of Administration's
findings that the DOA properly investigated all aspects of the requested acquisition as required
by the statute, and that each of the necessary elements was included in the complaint and
declaration.
2. Eminent Domain--statement of public use--wildlife management lands
The statement of public use in a condemnation action was sufficient where it stated that
the lands were an integral part of Wildlife Resources Commission facilities and N.C.G.S. § 146-
22.1 specifically authorizes the Department of Administration to take title to lands necessary or
convenient to the operation of state owned facilities.
3. Eminent Domain--interest acquired--less than fee simple
The State may acquire less than a fee simple interest in property.
Appeal by defendant from judgment entered 24 April 1998 by
Judge James E. Ragan, III, in Pamlico County Superior Court.
Heard in the Court of Appeals 21 April 1999.
Attorney General Michael F. Easley, by Special Deputy
Attorney General Roy A. Giles, Jr., for the State.
Henderson, Baxter, Alford & Taylor, P.A., by David S.
Henderson, for defendant-appellant.
LEWIS, Judge.
Defendant appeals from the trial court's order denying its
motion to dismiss the State's declaration of taking and notice of
deposit. Defendant contends that the trial court lacked subject
matter jurisdiction because "plaintiff has sought to condemn
property for a purpose which is beyond their statutory
authority." Defendant also asserts that the State failed to
state a claim upon which relief could be granted because the
taking was not for a public purpose. The trial court concluded
that the State was authorized to take defendant's property
pursuant to N.C. Gen. Stat. sections 146-22.1(1) and (10) (1991),
and that the State might alternatively take the property pursuant
to N.C. Gen. Stat. section 113-306(a) (1997). Defendant made
fourteen assignments of error, and argues six of them in one
massive contention that the "State's attempt to take real
property of the defendant is not a taking for a public purpose."
Defendant and the State own approximately 1000 acres as
tenants in common, with defendant owning a one-fifth undivided
interest and the State owning the remaining four-fifths. This
unusual ownership arrangement exists pursuant to a North Carolina
Supreme Court decision. See Taylor v. Johnston, 289 N.C. 690,
224 S.E.2d 567 (1976). The State, using public funds,constructed impoundments on the property in 1963. The
impoundments were intended to provide mosquito control and a
management area for wildlife, including waterfowl, shorebirds,
wading birds, turtles, and other creatures. The twelve miles of
dikes that make up the impoundments, together with their pumping
stations, pumps, sheds and utility buildings, have been
maintained continuously by the State since the 1960's. The area
serves as a habitat and/or breeding area for numerous species,
including the endangered peregrine falcon and the threatened bald
eagle. The land is available for public wildlife-based
recreations such as fishing, birdwatching, and photography.
Hunting is permitted in the impoundments an average of 20 days
per year and in the marsh area approximately 60 days per year.
Maintenance of the facility structures and equipment requires 124
man-days per year, habitat management requires 40 man-days per
year, and regulation of the area requires 60 man-days per year.
Average annual costs for operation of the facility since 1962
have been $30,030, not including labor which currently requires
approximately $11,000 per year.
In 1985, defendant purchased its one-fifth undivided
interest from John "Jack" Taylor, a party to the case
establishing shared ownership with the State. The record
indicates that defendant and the State have negotiatedunsuccessfully to resolve the joint ownership situation since
1985. Defendant was willing to pay the State approximately
$800,000 for the State's 80% interest in the land; however, an
offer by the State to purchase defendant's 20% interest for
$200,000 was refused by defendant. The State declined to
physically partition the property, claiming such a division would
adversely affect the management and operation of the impoundment
facility. At various times the parties considered land trades, a
sale by defendant if the State could secure a permit so defendant
could build impoundments on adjacent property, and donation of
the land to the State, all without agreement.
In 1991, the Wildlife Resources Commission asked the State
Property Office, a division of the Department of Administration
("DOA"), to assess alternatives to the joint ownership. In
October of 1995, the Wildlife Commission adopted a resolution
requesting that DOA acquire defendant's interest by condemnation
since all prior negotiations had failed. On 24 June 1996,
defendant filed a petition for partition against the State. The
Governor and the Council of State approved an action of
condemnation as requested by DOA on 6 August 1996, and on 29
August 1996, the State, through DOA, filed a Complaint and
Declaration of Taking and Notice of Deposit for defendant's one-
fifth interest. The State deposited $200,000 in Pamlico CountySuperior Court, and title in the one-fifth interest thereby
immediately vested in the State, as provided by N.C. Gen. Stat.
section 136-104 (1993).
The State moved to dismiss defendant's partition proceeding
on grounds of sovereign immunity and mootness on 16 September
1996. On 27 September 1996, defendant voluntarily dismissed its
partition proceeding; defendant reinstituted the partition action
on 26 September 1997. The State again filed a motion to dismiss
on grounds of mootness and sovereign immunity on 21 October 1997.
The State's motion to dismiss the partition suit was granted on
24 April 1998, but defendant still contests the validity of the
taking by eminent domain.
Defendant asserted in the trial court that the taking was
improper because it was beyond statutory authority and was not
for a public purpose. The trial court denied defendant's motion
to dismiss, and from this order defendant appeals. An opinion
filed concurrently with this one, Coastland Corporation v. N.C.
Wildlife Resources Comm'n, 134 N.C. App. 343, ___ S.E.2d ___
(July 20, 1999) (No. COA98-1068), addresses the issues of
mootness and sovereign immunity raised by the partition
proceeding. Here we address defendant's arguments regarding the
propriety of the taking.
[1]Defendant assigns error to the trial court's conclusionsof law that the State was authorized to condemn the undivided
one-fifth interest pursuant to N.C. Gen. Stat. sections 146-22.1
(1) and (10) (1991) and pursuant to N.C. Gen. Stat. section 113-
306 (1997). The DOA's authority to condemn land is found in
Chapter 146, Article 6 of our General Statutes.
In carrying out the duties and purposes set
forth in Chapters 143 and 146 of the General
Statutes, the Department of Administration is
vested with the power of eminent
domain . . . . The power of eminent domain
herein granted is supplemental to and in
addition to the power of eminent domain which
may be now or hereafter vested in any State
agency. . . and [DOA] may exercise on behalf
of such agency the power vested in said
agency or the power vested in [DOA] herein.
N.C. Gen. Stat. § 146-24.1 (1991). The duties of DOA include
acquiring land for state agencies. See N.C. Gen. Stat. § 143-341
(4)(d) (1999); State v. Club Properties, 275 N.C. 328, 331, 167
S.E.2d 385, 387 (1969). In acquiring property, "the Department
of Administration may follow the procedure set forth in G.S. 146-
24 or the procedure of such agency, at the option of the
Department of Administration." G.S. § 146-24.1. Therefore, DOA
can act to condemn land using either its own authority, here
alleged to be found in section 146-22.1(1) and (10), or the
authority of the requesting agency, here alleged to be section
113-306. Procedurally, DOA can act to condemn defendant's land
either under section 146-24, which directs DOA to use the Boardof Transportation procedures found in Chapter 136, Article 9
("Transportation procedures"), or under Chapter 40A, which
dictates the Wildlife Resources Commission's procedure to take
property. See N.C. Gen. Stat. §§ 146-24 (1991); 113-306(a).
It is clear that the State utilized the Transportation
procedures in condemning defendant's land. Both the complaint
and the declaration of taking definitively state that "the
Department of Administration by virtue of G.S. 146-24 and G.S.
146-24.1 is authorized to exercise the power of eminent domain
and acquire said lands by condemnation in the same manner as
provided for by the Board of Transportation by Chapter 136,
Article 9." This statement refers to section 146-24, which gives
DOA power to condemn using Transportation procedures, and section
146-24.1, which allows DOA to choose between Transportation
procedures and agency procedures. The statement of authority in
the complaint indicates that DOA has chosen to use Transportation
procedures rather than agency procedures. Furthermore, the
Resolution of the Council of State authorizing eminent domain in
this case provides that DOA is authorized to acquire the property
"in the manner prescribed by Chapter 146 Article 9, Chapter 136
of the General Statutes of North Carolina." Chapter 136, Article
9 is the Transportation procedure. No mention is made of section
113-306 or Chapter 40A in the complaint, the declaration, or theauthorization. Finally, in a taking under the Wildlife Resources
Commission's procedure, the State must include a statement
regarding the timber, buildings, structures or fixtures on the
property, and no such recitation appears in the complaint here.
See N.C. Gen. Stat. § 40A-41 (1984). As such, the procedural
propriety of the taking must rise or fall on the Transportation
procedure.
N.C. Gen. Stat. section 146-23 (1991) requires that a state
"agency desiring to acquire land . . . shall file with [DOA] an
application setting forth its needs." When DOA receives the
application, it must "investigate all aspects of the requested
acquisition" and determine (1) the actual need for the property;
(2) availability of other land already owned by the State; (3)
availability of other land not owned by the State but which might
meet the agency's needs; and (4) the availability of funds to buy
the requested land. G.S. § 146-23; Club Properties, 275 N.C. at
331, 167 S.E.2d at 387. After this full investigation, DOA "may
make acquisitions at the request of the Governor and Council of
State." G.S. § 146-23.
The trial court made the following finding of fact:
The State followed the usual procedures set
forth in Chapter 146 of the General Statutes
to effect the condemnation of Defendant's
interest in the land. The Commission
requested the Department of Administration toacquire Defendant's interest in the subject
property and recommended that it be acquired
by condemnation, if necessary. The
Department of Administration determined: that
acquisition of the property was necessary as
an integral part of the Pamlico Point
Waterfowl Impoundment and Marshes; that there
was no land already owned by the State or any
State agency available for this purpose and
that there were no other lands available
either by purchase, condemnation, lease or
rental which would meet the needs of the
Commission, (although other impoundment
property was for sale in Pamlico County.)
that the Department had been unable to obtain
the property through negotiations; that funds
necessary for the acquisition are available
in the budget of the Commission; that the
acquisition was in the best interest of the
State and it recommended to the Governor and
Council of State that the property be
condemned.
Defendant contends there is no evidence in the record to support
the trial court's finding of fact. We disagree.
The record indicates that as early as 1989 the Wildlife
Commission asked DOA to become involved in negotiations regarding
defendant's interest in the property. Affidavits indicate that
DOA determined "[i]n order to continue [the State's] operation of
these governmental facilities unhindered," the State needed to
acquire defendant's interest. This assertion is further supported
by correspondence from defendant's former counsel dated 18 July
1996 in which defendant threatens to "lease his undivided
interest to a private group." The record contains testimony froma DOA employee and wildlife biologists that no other land would
allow the continuing operation of these state-owned impoundments
and that outright ownership by the State of such impoundments "is
in the public's interest." Furthermore, there is testimony that
funds were available with which to purchase defendant's interest.
Finally, there is testimony from the Acting Director of the State
Property Office division of DOA that employees of DOA "ha[d]
thoroughly investigated all aspects of the requested
acquisition." From the affidavits and exhibits, together with the
Secretary of Administration's findings denoting that each
requirement of the statute was addressed, the trial court could
reasonably determine that DOA properly investigated "all aspects
of the requested acquisition" as required under section 146-23.
This assignment of error is overruled.
As we stated above, once compliance with section 146-23 is
established and DOA determines "that it is in the best interest
of the State that land be acquired," DOA must negotiate with the
owners of the desired land. N.C. Gen. Stat. § 146-24(a) (1991).
If these negotiations are unsuccessful, DOA may request
permission from the Governor and the Council of State to exercise
its right of eminent domain "in the same manner as is provided
for the Board of Transportation by Article 9 of Chapter 136."
N.C. Gen. Stat. § 146-24(c) (1991). The Transportation procedures require that the condemnor
file a complaint and a declaration of taking in the superior
court of the county where the land is located. See N.C. Gen.
Stat. § 136-103(a) (Cum. Supp. 1998). The complaint must
contain:
(1) A statement of the authority under which
and the public use for which said land is
taken.
(2) A description of the entire tract . . . .
(3) A statement of the estate or interest in
said land taken for public use . . . .
(4) The names and addresses of those persons
who the Department of Transportation is
informed and believes may have or claim to
have an interest in said lands . . . .
(5) A statement as to such liens or other
encumbrances . . . upon said real
estate . . . .
(6) A prayer that there be a determination of
just compensation in accordance with the
provisions of this Article.
N.C. Gen. Stat. § 136-103(c) (Cum. Supp. 1998). The declaration
of taking must contain or have attached:
(1) A statement of the authority under which
and the public use for which said land is
taken.
(2) A description of the entire tract . . . .
(3) A statement of the estate or interest in
said land taken for public use . . . .
(4) The names and addresses of those persons
who . . . may have or claim to have an
interest in said lands . . . .
(5) A statement of the sum of money estimated
by said Department of Transportation to be
just compensation for said taking.
N.C. Gen. Stat. § 136-103(b) (Cum. Supp. 1998). The filing of
the complaint and declaration must be accompanied by a deposit of
the amount of money listed in subsection (b)(5). N.C. Gen. Stat.
§ 136-103(d) (Cum. Supp. 1998). Upon the filings and deposit,
title vests in the Department of Transportation. See G.S. §
136-104. We have reviewed the State's filings, and we hold that
each of the necessary elements was included in the complaint and
declaration.
[2]Defendant next contends that the statement of public use
is defective. This essentially is defendant's argument that the
State lacked statutory authority to take defendant's property.
We hold the statement of public use is sufficient and the State
had authority to take defendant's interest by eminent domain.
DOA "is authorized and empowered to acquire by purchase,
gift, condemnation or otherwise: . . . (10) Utility and access
easement, rights-of-way, estates for terms of years or fee simple
title to lands necessary or convenient to the operation of state-
owned facilities." G.S. § 146-22.1. Both the complaint and the
declaration state that "[s]aid lands are an integral part of theWildlife Resources Commission governmental facilities at the
Pamlico Point waterfowl impoundments and marshes." We believe
this sufficiently invokes a public use since G.S. § 146-22.1(10)
specifically authorizes DOA to take "fee simple title to lands
necessary or convenient to the operation of state-owned
facilities."
Defendant does not assign error to the trial court's
findings of fact that the State incurs expense to manage the
property and that the primary purpose of the management is to
provide "food and winter habitat for migrating waterfowl, which
in turn, provides waterfowl hunting opportunities to waterfowl
hunters." The State owns the impoundments and is operating them
with the necessary outbuildings, pumps, and pump stations. The
legislature has determined that lands "necessary or convenient to
the operation of state-owned facilities" may be taken by
condemnation, G.S. § 146-22.1(10), and "only the legislative
[branch] can authorize the exercise of the power of eminent
domain and prescribe the manner of its use." Club Properties,
275 N.C. at 334, 167 S.E.2d at 389. Substantial evidence was
received that these state-owned facilities are operated by the
State for both hunting and conservation endeavors. The purpose
of the taking is statutorily authorized by section 146-22.1 (10),
the State complied fully with the Transportation procedures, anddefendant's protestations to the contrary are overruled.
[3]The second power under which DOA may institute a taking
is under the requesting agency's authority. See G.S. § 146-24.1.
The Wildlife Resources Commission's powers of condemnation are
set forth in section 113-306, providing that "[i]n the overall
best interests of the conservation of wildlife resources, the
Wildlife Resources Commission may . . . condemn lands in
accordance with the provisions of Chapter 40A." The trial court
held as a matter of law that DOA was authorized to take
defendant's interest under this agency authority, as well as
under section 146-22.1(10). Defendant contests this
determination.
We decline to reach this question since we already have
determined that the State properly condemned defendant's property
under DOA authority in G.S.146-22.1(10), using the Transportation
procedures in Chapter 136. The State may acquire less than a fee
simple interest in property, as evidenced by the statutory
requirement that the complaint and declaration denote the estate
or interest sought. See G.S. §§ 136-103(b)(3); 136-103(c)(3).
Furthermore, we see no reason why the State should not be able to
condemn an undivided partial interest in property when it could
condemn a fee simple interest in the entire parcel. Though we
are inclined to agree with the State, we need not decide whetherhunting is "[f]or the public use or benefit," N.C. Gen. Stat. §
40A-3 (Cum. Supp. 1998), under agency authority because we find
express statutory authority to condemn defendant's interest as
necessary and convenient for the operation and maintenance of the
government-owned impoundments. See G.S. § 146-22.1 (10).
Affirmed.
Judges TIMMONS-GOODSON and HORTON concur.
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