{
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  "name": "THE BOARD OF TRUSTEES OF THE UNIVERSITY OF ILLINOIS, Plaintiff-Appellee, v. WILLIAM SHAPIRO, Defendant-Appellant",
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    "judges": [
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      "THE BOARD OF TRUSTEES OF THE UNIVERSITY OF ILLINOIS, Plaintiff-Appellee, v. WILLIAM SHAPIRO, Defendant-Appellant."
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      {
        "text": "PRESIDING JUSTICE CAMPBELL\ndelivered the opinion of the court:\nDefendant, William Shapiro (Shapiro), appeals from an order of the circuit court of Cook County directing a verdict in favor of plaintiff, the Board of Trustees of the University of Illinois (the Board), after a trial in an eminent domain action. On appeal, Shapiro contends that: (1) the judgment of the trial court is void as in excess of its statutory authority regarding eminent domain proceedings; (2) the trial court abused its discretion in excluding evidence of comparable sales properties on the grounds that the acquisition of such properties was \u201cunder threat of condemnation\u201d; (3) the trial court abused its discretion in excluding evidence of comparable sales properties with improvements to the land on the grounds that the properties were dissimilar to the subject property; (4) the trial court erred in barring Shapiro\u2019s expert appraiser\u2019s testimony on the grounds that a property used as an example of a comparable sale is zoned differently from the subject property; and (5) the trial court erred in granting the Board\u2019s motion to strike Shapiro\u2019s expert\u2019s testimony after both parties had rested on their evidence. For the following reasons, we affirm the judgment of the trial court.\nBACKGROUND\nThe record reveals the following relevant facts. Shapiro is the owner of record of a parcel of property located at 728 W. Liberty Street, Chicago, with a property index number (PIN) of 17-21-111-017 (Liberty property). The Liberty property consists of 1,825 square feet, is vacant and unimproved, and is zoned for industrial use only.\nSection 7 of the University of Illinois Act (University Act) (110 ILCS 305/1 et seq. (West 2000)) grants the Board the following power of eminent domain:\n\u201cThe Trustees shall have power (a) to purchase real property and easements, and (b) to acquire real property and easements in the manner provided by law for the exercise of the right of eminent domain, and in the event negotiations for the acquisition of real property or easements for making any improvement which the Trustees are authorized to make shall have proven unsuccessful and the Trustees shall have by resolution adopted a schedule or plan or operation for the execution of the project and therein made a finding that it is necessary to take such property or easements immediately or at some specified later date in order to comply with the schedule, the Trustees may acquire such property or easements in the same manner provided in Sections 7 \u2014 103 through 7 \u2014 112 of the Code of Civil Procedure.\u201d 110 ILCS 305/7(a) (West 2000).\nIn accordance with the University Act, the Board passed a resolution on March 12, 1998, to acquire the Liberty property. On June 23, 2000, the Board exercised its authority under the University Act to obtain Shapiro\u2019s property for use in its South Campus Development Project by filing a complaint for condemnation.\nOn September 20, 2000, the trial court entered a case management order setting forth deadlines for the parties\u2019 filings. The trial court set forth the date of November 29, 2000, as a deadline for Shapiro to file \u201cResponses, if any, to the Complaint for Condemnation, including Motions to Dismiss, Traverses, and Cross Claims.\u201d The record shows that Shapiro did not file any motion to dismiss the Board\u2019s action. On March 30, 2001, Shapiro answered the Board\u2019s interrogatories stating that he would rely on two real estate appraisal experts, Michael Grimes and Larry Starkman.\nOn June 22, 2001, the Board filed a motion in limine to bar the testimony of Starkman, on the grounds that he had not been made available for deposition. The trial court granted this motion by an order entered on June 27, 2001. The trial court further ordered that \u201cDefendant William Shapiro is barred from supplementing the appraisal of Michael Grimes,\u201d and ordered that discovery be closed on July 16, 2001.\nPrior to trial, Grimes submitted an appraisal report on the Liberty property. Grimes\u2019 appraisal report provided the sale price of four properties he considered \u201ccomparable\u201d to the Liberty property. The report revealed that three out of the four property sales were made under threat of condemnation and two of those three properties were zoned for commercial use. Properties Nos. 1, 2 and 3 were all within the area that the Board had, by resolution dated September 10, 1992, specifically designated for acquisition as part of its South Campus Development Project. Grimes\u2019 appraisal report identified properties 1 and 2 as having been acquired by the Board in May and June 2000.\nGrimes\u2019 appraisal report contained comparable sales of the following properties described as follows:\nProperty No. 1: A vacant property located at 701 W Maxwell Street, sold to the Board in June 2000, under threat of condemnation;\nProperty No. 2: An improved property located at 1232-34 S. Halsted Street sold to the Board in May 2000, (a) under threat of condemnation; and (b) commercially improved with a brick building;\nProperty No. 3: An improved property located at 1308 S. Halsted Street sold to the Board in October 1997, (a) under threat of condemnation; (b) commercially zoned and improved with a brick building used for retail purposes at the time of the sale; and (c) in which the owner invested $64,000 in improvements and which the owner continued to use as a retail store until the time the Board acquired the property in 2000.\nDuring his deposition, Grimes acknowledged that it was improper to rely on sales made under threat of condemnation and conceded that such sales are \u201cnormally not considered\u201d when appraising a condemned property. Grimes also testified that he attached no value to the improvements on the four comparable properties in his report, but that these four properties were superior to the Liberty property in location and accessibility.\nOn August 22, 2001, the Board filed a motion in limine to prohibit Grimes from using valuation data of the above three described \u201ccomparable\u201d property sales as improper since they were sales made \u201cunder threat of condemnation.\u201d The Board submitted the affidavit of Ellen M. Hamilton, a University employee, who testified that these three properties were acquired by the University pursuant to a resolution of the Board dated September 10, 1992. Ms. Hamilton testified that the properties at 701 Maxwell Street and Halsted Street were acquired by the University in June 2000 and May 2000, respectively, and that the property located at 1308 Halsted Street was acquired by the University in August 2000. The Board also asserted that the three properties were not comparable to the Liberty property because they were zoned differently. On November 8, 2001, the trial court excluded evidence of these three \u201ccomparable\u201d sales.\nAt the jury instruction conference prior to trial, Shapiro tendered Illinois Pattern Jury Instructions, Civil, No. 300.85 (3d ed. 1995), pertaining to the reasonable probability of rezoning the Liberty property. The Board objected to the instruction because there had been no preliminary showing that it was reasonably probable that the property could or would be rezoned, as required under Illinois law. The trial court rejected Shapiro\u2019s proposed instruction. Thereafter, the Board questioned whether Grimes would be permitted to render his opinion at trial that the property would be rezoned. The record reveals the following colloquy:\n\u201cMS. KENEDY: Your Honor, a point of clarification with respect to witness testimony, I\u2019m uncertain, I don\u2019t know, but I\u2019m hopeful that we\u2019re not going to be hearing any testimony from Mr. Grimes or Shapiro concerning rezoning of this property given your ruling.\nTHE COURT: I\u2019m not expecting them to bring that in.\nMR. SHAPIRO: Me either.\u201d\nAt trial, the Board offered the testimony of its expert, James A. Gibbons, a real estate appraiser. Gibbons testified that he examined five \u201ccomparable\u201d sales which fetched prices of between $1.93 and $7.27 per square foot. The properties cited by Gibbons were described as follows:\n(1) Located at 26th Street and Dearborn Street, 14 blocks from the Liberty property, Property No. 1 measured approximately 34,600 square feet, was vacant land zoned for manufacturing purposes, and sold in March 2000 for $7.27 per square foot;\n(2) Property No. 2, located at 2404 South Wabash Avenue was 12 blocks south and 15 blocks east of the Liberty property, was also zoned for manufacturing, measured 22,683 square feet, and sold in 1999 for $5.29 per square foot;\n(3) Property No. 3, located at Wallace Street and Pershing Road, 27 blocks south of the Liberty property, was an empty lot measuring 107,740 square feet and sold in 1999 for $3.95 per square foot;\n(4) Located at 2101 South Morgan Street, property No. 4 was 9 blocks south of the Liberty property and measured 65,775 square feet; this property was zoned for industrial use and sold in 1998 for $4.26 per square foot; and\n(5) Property No. 5, located at Throop Street and 21st Street, many blocks south of the Liberty property, measured 38,725 square feet, was zoned for manufacturing use, and sold in 1998 for $3.23 per square foot.\nBased on these \u201ccomparables,\u201d Gibbons opined that the Liberty property had a fair market value of $7.50 per square foot for a total value of $13,700.\nGrimes then attempted to testify on behalf of Shapiro that, in his opinion, the Liberty property could be rezoned for commercial or residential use, based on the nature of real estate development taking place in the neighborhood of the Liberty property. However, because of the trial court\u2019s ruling that evidence of rezoning would be precluded, the trial court did not allow Grimes to testify on the possibility of rezoning the Liberty property. Shapiro did not object to the trial court\u2019s ruling.\nGrimes testified that the highest and best use for a property is defined as a use that can \u201clegally, feasibly, and monetarily support the highest value of the property.\u201d Grimes described a comparable sale of a property located at 1315 Taylor Street which was a vacant lot of roughly the same size as the Liberty property, at 2,550 square feet. Grimes stated that this property sold in April 1999 for $41.38 per square foot. Based on this comparable property, Grimes stated that the Liberty property would be properly valued at $42.62 per square foot for a total of $77,781. Grimes opined that the highest and best use for the Liberty property was commercial and residential development. Grimes considered the five properties offered by Gibbons as comparable sales and concluded that those properties were not comparable because of their much larger size and distant location from the Liberty property.\nAt the conclusion of Grimes\u2019 direct testimony, Shapiro moved for an order accepting himself as an expert. The trial court stated it would \u201chold off\u201d on that decision until after the Board completed cross-examination.\nOn cross-examination, Grimes admitted that commercial and residential development would not be legally permissible under the property\u2019s existing zoning. Grimes conceded that the only comparable sale offered, 1315 Taylor Street, was an improved, commercially zoned parcel in the \u201cLittle Italy\u201d neighborhood, and was far superior to the vacant Liberty property both in terms of accessibility and location. Grimes admitted that zoning on this comparable property permitted a business use on the first floor and residential use on the upper floors, but that the industrial-use zoning for the Liberty property would not permit such uses. Grimes made no adjustment in his valuation of the Liberty property based on the differences in zoning between the one accepted comparable property and the Liberty property.\nAfter cross-examination, Shapiro rested his case despite the fact that the trial court had not ruled on his motion to accept himself as an expert. The Board moved for an order striking Grimes\u2019 testimony. The trial court heard arguments on the Board\u2019s motion, reviewed relevant case law, and granted the motion, striking Grimes\u2019 testimony. The trial court entered an order finding that Grimes\u2019 testimony was unreliable because: (1) Grimes improperly relied on a highest and best use that was illegal under the zoning for the subject property and no evidence was before the jury on the reasonable probability of rezoning; and (2) Grimes made no adjustment in his valuation of the Liberty property based on the differences in zoning between the one accepted comparable property and the Liberty property. Shapiro did not seek permission to reopen his case to allow the owner (Shapiro) to testify as to the fair market value of the property.\nAt the conclusion of the trial, the Board moved for a directed verdict. The trial court concluded that there was no range of value from which the jury could render a contrary verdict and granted the Board\u2019s motion for a directed verdict setting just compensation in the amount of $13,700.\nShapiro timely appeals from entry of the directed verdict in favor of the Board, as well as the orders of the trial court excluding the testimony and evidence of his expert at trial.\nOPINION\nInitially, Shapiro contends that the Board failed to exercise its eminent domain powers in accordance with statutory authority, thereby rendering its condemnation proceeding void.\nShapiro argues that the legal basis for the eminent domain proceeding against the Liberty property is a resolution of the Board dated September 10, 1992 (1992 Resolution), and enacted pursuant to section 7 of the University Act. Therein, the Board identified 75 properties that it deemed \u201cnecessary to take\u201d for the purpose of developing the area to the south of the University\u2019s campus in Chicago. Shapiro notes that the Liberty property, specifically \u201c728 West Liberty,\u201d was not designated as one of 75 properties to be acquired by the Board. In fact, the 1992 Resolution specified the 75 properties by their PIN, including a series of properties on \u201cBlock 111,\u201d and designating properties with the PINs immediately before and after the Liberty property, i.e., PINs 17-21-111-016 and 17-21-111-018. The PIN of the Liberty property, as noted above, is 17-21-111-017. Thus, Shapiro argues, the Board failed to comply with the procedure set forth in section 7 of the University Act.\nA municipality can only exercise the power of eminent domain when it has been specifically conferred by legislative enactment. Village of Long Grove v. First National Bank of Lake Forest, 164 Ill. App. 3d 253, 255, 517 N.E.2d 729, 731 (1987). In determining whether a statute grants a municipality the authority to condemn, the court must construe the eminent domain statute strictly, to protect the rights of property owners. People ex rel. Director of Finance v. Young Women's Christian Ass\u2019n, 86 Ill. 2d 219, 232-33, 427 N.E.2d 70, 76 (1981); City of Oakbrook Terrace v. LaSalle National Bank, 186 Ill. App. 3d 343, 542 N.E.2d 478 (1989).\nHere, the record shows that Shapiro\u2019s contention is waived for review for his failure to file a traverse or motion to dismiss the Board\u2019s complaint for condemnation. Shapiro failed to respond by motion and assert that the Board lacked the authority to proceed in it\u2019s complaint pursuant to the University Act and the resolution adopted in 2000.\nNext, Shapiro contends that the trial court erred in excluding evidence of three properties proposed as comparable by Grimes. Shapiro argues that the trial court erred in rejecting the evidence on the grounds that the sales of the properties were made under threat of condemnation.\nIt is well established that property sales made under threat of condemnation are not reliable evidence of fair market value, defined as the amount of money that a willing buyer, under ordinary circumstances, would pay to a willing owner in a voluntary sale, neither being under any obligation to buy or sell. Department of Public Works & Buildings v. Oberlaender, 42 Ill. 2d 410, 415, 247 N.E.2d 888, 892 (1969). Property sales made under threat of condemnation are inadmissible because the party asserting the sale evidence cannot establish that the property was \u201csold freely and in the open market.\u201d Forest Preserve District v. Krol, 12 Ill. 2d 139, 148, 145 N.E.2d 599 (1957); Oak Brook Park District v. Oak Brook Development Co., 170 Ill. App. 3d 221, 235, 524 N.E.2d 213, 222 (1988).\nThe record shows that the Board passed its resolution to acquire properties for the South Campus Development Project area in 1992. Each of the three sales proffered by Grimes is a property that was subject to the Board\u2019s authority to condemn at the time of the sale. As such, the trial court properly excluded evidence of these sales as comparable.\nShapiro further argues that the trial court incorrectly concluded that two of the three excluded properties were too dissimilar to the Liberty property to be considered comparable.\nIn condemnation cases, the admission and exclusion of evidence as to comparable sales rest entirely in the discretion of the trial court. Department of Transportation v. Chicago Title & Trust Co., 303 Ill. App. 3d 484, 500, 707 N.E.2d 637 (1999). An expert in valuation of property for condemnation purposes may only rely on facts or data that are legally relevant to the fair cash market value of the property in question. The trial court\u2019s determination shall not be disturbed absent an abuse of discretion. City of Chicago v. Anthony, 136 Ill. 2d 169, 187, 554 N.E.2d 1381, 1389 (1990). Evidence of the sale of improved property is inadmissible as a comparable sale of a vacant property unless the properties are otherwise closely comparable in size, use, zoning and locale. Sanitary District of Chicago v. Boening, 267 Ill. 118, 122, 107 N.E. 810, 812 (1915).\nHere, the record shows that Grimes attempted to submit as comparable sales properties improved with buildings and either residences or businesses when the Liberty property was maintained as an unimproved empty lot. The trial court properly denied the use of properties that were not, in fact, comparable.\nNext, Shapiro contends that the trial court erred in striking Grimes\u2019 testimony as to future possible rezoning of the Liberty property. Grimes testified that the \u201chighest and best use\u201d of the Liberty property was for commercial and business purposes, while at the same time conceding that the Liberty property was zoned solely for industrial purposes.\nThe reasonable probability of rezoning is a proper factor to be considered in determining the value of property taken in a condemnation proceeding (Department of Public Works & Buildings v. Rogers, 39 Ill. 2d 109, 113, 233 N.E.2d 409 (1968)), and where there is sufficient evidence for a court to make a finding that the reasonable probability exists, then the witnesses may testify as to the value of the land based upon such probability. Department of Public Works & Buildings v. Ass\u2019n of Franciscan Fathers, 69 Ill. 2d 308, 314-15, 371 N.E.2d 616 (1977); Department of Transportation v. First Bank of Schaumburg, 260 Ill. App. 3d 490, 499, 631 N.E.2d 1145 (1992).\nHere, Shapiro provided no preliminary showing as to the reasonable probability of rezoning. In light of this fact, the trial court was required to exclude Grimes\u2019 opinion as to the probability of rezoning the Liberty property.\nFinally, Shapiro contends that the trial court erred in granting the Board\u2019s motion for a directed verdict and deciding the question of valuation. Shapiro argues that the trial court usurped the role of the jury.\nIn an eminent domain case, a jury\u2019s verdict on the fair market value of the property to be taken must be within the range of value presented at trial. Forest Preserve District v. Kelley, 69 Ill. App. 3d 309, 319, 387 N.E.2d 368, 376 (1979). If a jury has no range of value from which to render a verdict, the court must enter a directed verdict for the value presented. Department of Public Works & Buildings v. Butler, 5 Ill. App. 3d 134, 137, 283 N.E.2d 109, 110-11 (1972).\nIn the present case, Shapiro failed to present any evidence of the range of value of the Liberty property. Although Shapiro initially moved to submit himself as an expert witness, he failed to follow through on a motion to reopen his case and present other evidence of valuation after Grimes\u2019 testimony was excluded. Under this circumstance, with only the valuation evidence presented by the Board for the jury to consider, the trial court properly directed a verdict in favor of the Board.\nWe therefore affirm the judgment of the trial court.\nAffirmed.\nQUINN and HARTIGAN, JJ., concur.\n\u201cTraverse\u201d is defined in Black\u2019s Law Dictionary as follows: \u201cCommon-law pleading. A formal denial of a factual allegation made in the opposing party\u2019s pleading ***.\u201d Black\u2019s Law Dictionary 1506 (7th ed. 1999). In the context of a condemnation or eminent domain proceeding, a \u201ctraverse\u201d serves as a motion to deny the legal right of the complainant \u2014 in this case, to take land for the public purpose of the expansion of the University of Illinois, e.g., if the legislature has granted a municipality the authority to exercise the power of eminent domain, the property owner bears the burden of claiming and presenting evidence that the municipality lacks authority to condemn or that it has abused its discretion: \u201cKeller filed a traverse and motion to dismiss, alleging: (1) the City was not authorized to acquire the property by eminent domain proceedings; (2) the ordinance did not authorize the City to acquire the property for any purpose authorized by statute; (3) the ordinance was \u2018ineffective in law to vest the power of condemnation in plaintiff or to authorize plaintiff to condemn\u2019; and (4) the City did not make a bona fide attempt to agree on the amount of compensation to be paid to Keller for the property.\u201d (Emphasis added.) City of Oakbrook Terrace v. LaSalle National Bank, 186 Ill. App. 3d 343, 346, 542 N.E.2d 478 (1989).",
        "type": "majority",
        "author": "PRESIDING JUSTICE CAMPBELL"
      }
    ],
    "attorneys": [
      "Berton N. Ring, EC., of Chicago (Berton N. Ring, of counsel), for appellant.",
      "Lord, Bissell & Brook, of Chicago (Robert J. Pugliese, Jennifer A. Kenedy and Hugh S. Balsam, of counsel), for appellee."
    ],
    "corrections": "",
    "head_matter": "THE BOARD OF TRUSTEES OF THE UNIVERSITY OF ILLINOIS, Plaintiff-Appellee, v. WILLIAM SHAPIRO, Defendant-Appellant.\nFirst District (5th Division)\nNo. 1\u201402\u20140914\nOpinion filed September 30, 2003.\nBerton N. Ring, EC., of Chicago (Berton N. Ring, of counsel), for appellant.\nLord, Bissell & Brook, of Chicago (Robert J. Pugliese, Jennifer A. Kenedy and Hugh S. Balsam, of counsel), for appellee."
  },
  "file_name": "0943-01",
  "first_page_order": 961,
  "last_page_order": 971
}
