Redevelopment Agency v. Thrifty Oil Co.

Plaintiff and respondent the Redevelopment Agency of the City of Pomona (City) exercised its eminent domain powers to obtain a parcel of property owned by defendant and appellant Thrifty Oil Company (Thrifty). The Pomona, California property had been used as a gasoline station. The station was 23 years old, with some renovation in recent years. It was a self-service station with “no frills.” The soil on the land was contaminated due to gasoline spillage. Gasoline sales constantly declined during the years prior to the station being taken by City. Thrifty’s financial documents indicated the station was losing money. The only issues to be determined by the jury were the value of the parcel of property and the value of the business goodwill.

Prior to trial City took possession of the property and spent $182,000 to treat the contamination in a remediation procedure. Thrifty’s expert opined that the real property was worth $950,000 ($1 million less $50,000 for the cost of remediation). City’s expert opined that the property was worth $5,000, after deducting the cost of remediation. The expert appointed by the court opined that the fair market value of the property was…