United States v. Certain Interests in Property in Monterey County

This is an action brought by the United States to condemn defendants’ leasehold interests, subject to outstanding mortgages, in a Wherry Act housing project located near Monterey, California, on Fort Ord. Long-term leases on government land, with an annual nominal rental of $200 to be paid to the government by the defendants, were entered into on November 16, 1950 and June 27, 1952. The project was completed about 1952; some 615 residential buildings, comprising 1,000 dwelling units, were constructed, as well as all necessary streets, walks, and sewage systems. The leases provided that the defendant corporations were to operate the project, although some supervisory control was reserved to the plaintiff. The improvements became the property of the United States upon completion, with occupancy restricted to military or civilian personnel of the Armed Services, although provision was made for other residents in the event units were available. The property was condemned because additional military housing was found necessary at Fort Ord and under the provisions of the Capehart Act acquisition of the Wherry project by negotiation or condemnation became mandatory. Negotiation having…