Opinion ID: 2804701
Heading Depth: 2
Heading Rank: 2

Heading: Loss in Market Value

Text: Because the trial court calculated Plat 57’s loss in value by subtracting Plat 57’s value without a permit from Plat 57’s value with a permit, the government argues that the trial court overstated the economic impact to Plat 57. The government contends that the trial court should have subtracted Plat 57’s value without a permit from Plat 57’s demonstrated value before the permit denial (i.e., Plat 57’s purchase price). We disagree. Plat 57’s value with a permit reflects Plat 57’s “highest and best use.” The highest and best use LOST TREE VILLAGE CORPORATION v. US 13 of a parcel is “the reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.” Olson, 292 U.S. at 255. As the trial court understood, the government cannot rely on the regulatory taking at issue to reduce the fair market value of an affected parcel. See Fla. Rock Indus., Inc. v. United States, 791 F.2d 893, 905 (Fed. Cir. 1986).