Erganian

*168 Opinion

In this appeal from an order following judgment in condemnation we are called upon to resolve a question specifically left unanswered by the Supreme Court in Redevelopment Agency v. Gilmore (1985) 38 Cal.3d 790 [ 214 Cal.Rptr. 904 , 700 P.2d 794 ]. When a condemning authority deposits with the court an amount as probable compensation, and the property owner chooses not to withdraw the deposit, what interest is the property owner due upon withdrawal? We conclude the property owner is entitled to interest at the legal rate, rather than the prevailing market rate, for the period of time the moneys remain on deposit. In addition, we hold that in order to achieve just compensation, the property owner is entitled to interest at the prevailing market rate on all amounts in excess of the deposit of probable compensation until the judgment is paid, whether those amounts are due for the value of the property taken or for interest thereon.

Procedural and Factual Background

On August 17, 1981, appellant, the Redevelopment Agency of the City of Fresno (Agency), filed a complaint seeking condemnation of 21 parcels of real property in downtown Fresno. Several of these parcels…