Parks

This appeal by Robert and Audrey Parks (appellants) is from judgment in an eminent domain proceeding initiated by the Glendale Redevelopment Agency (Agency). The court below denied appellants’ motion for litigation costs, for interest on a deposit of funds made prior to possession and their challenge to the constitutionality of Code of Civil Procedure section 1268.350, setting the rate of interest in eminent domain proceedings.

The facts are as follows. Additional facts will be set forth as necessary to our discussion of the legal issues.

In 1987, appellants owned a 30-unit apartment building located at the corner of Central Avenue and Burchett Street in the City of Glendale. The property was located in the city’s central business district. Zoning in that area permitted intensive commercial development as well as limited, but intensive, residential development. On July 2, 1987, the Agency filed a complaint in eminent domain by which it sought to condemn the property for redevelopment purposes.

On July 6, 1987, the trial court issued an order permitting the Agency to deposit the sum of $1.2 million with the court. The amount of the deposit was based upon an appraisal of…