• Mads Frode Steenfeldt Møller
  • Jens Ulstrup Mortensen
4. semester, Landinspektørvindeskab (cand.geom.), Kandidat (Kandidatuddannelse)
The thesis deals with the benefits arising by proximity to stations as a result of the compulsory purchase of area and rights for railroad systems.
Usually, compulsory purchases reduce the value of the remainder of the property. In some instances, however, the project itself may add value to the residual property. The benefits can either be through an increase in property value, an increase in income or lower expenses.
Section 73 of the Danish Constitution stipulates that the relinquishment of property must be against full compensation. If the compulsory purchase increases the value of the property, the increase in value is to be deducted from the compensation. This is the so-called principle of ‘deduction of benefits’. In recent years, several major infrastructure projects have been constructed, including the Copenhagen Metro and light railways in Aarhus and Odense. A research project from the University of Copenhagen has documented theoretically, on the basis of extensive evidence that the properties located near S-rail stations in Copenhagen have increased in value due to the close proximity to the stations. The project proves an increased willingness to pay for private properties, but companies are also willing to pay more for a close proximity to stations. However, it has not been common practice to deduct benefits from compulsory purchases for the light railways in Aarhus or Odense. It is problematic if the deductions in compensation are not carried out if this is due to a lack of evidence. The thesis, therefore, deals with clarifying the reasons why the burden of proof is not lifted in respect of benefits to a property's valuation.

The basis for the analysis of the thesis is court rulings and verdicts from the above-mentioned infrastructure projects. In particular, the analysis of verdicts from the ‘valuation committee’ in cases from Odense Light Rail has contributed with information to elucidate the research question. The arguments of the construction agency have been examined by the ‘valuation committee’ as to whether the arguments are deemed qualified to lift the burden of proof of the increase in property value as a consequence of the compulsory purchase.

In the one case where the ‘valuation committee’ finds the burden of proof lifted by Odense Letbane, the benefit is based on the fact that Odense Light Rail will establish a station in close proximity to the property. It is also clear from the valuation practice in Odense, that the burden of proof for benefits in a large number of cases is not lifted on the assumption that the compulsory purchase does not lead to increased rental opportunities or prices, and that there is already well-functioning public transport in the immediate area. Among the most important criterias for deducting for benefits is the causal relationship between the increase in property value and the source for the compulsory purchase, and that the benefits must occur within a reasonable period of time.

The results of the thesis are presented in a number of recommendations to the construction agency for use in future compulsory purchases for railway systems.
Udgivelsesdato7 jun. 2018
Antal sider152
ID: 280548773