PIEDMONT TRIAD REGIONAL WATER AUTHORITY v. SUMNER HILLS INCORPORATED, and DENMARK GOLF SERVICES, INC. No. 86PA00 (Filed 6 April 2001) Eminent Domain--size of taking--de novo review--condemnor shows property “of little value”--condemning authority shows proposed condemnation authorized The Court of Appeals erred by concluding that plaintiff may condemn defendants’ entire tract of property including the 97 unneeded acres because a de novo review applies to cases brought under N.C.G.S. § 40A-7 for: (1) the threshold inquiry under N.C.G.S. § 40A-7(a) that the comdemnor has the burden to show the unneeded remainder of property is “of little value;” and (2) thereafter the condemning authority must affirmatively demonstrate the proposed condemnation is authorized by N.C.G.S. § 40A-7(a)(1), (2), or (3). On discretionary review pursuant to N.C.G.S. § 7A-31 of a unanimous decision of the Court of Appeals, 136 N.C. App. 425, 524 S.E.2d 375 (2000), reversing and remanding an order entered by Cornelius, J., on 26 October 1998 in Superior Court, Guilford County. On 15 June 2000 the Supreme Court allowed plaintiff’s conditional petition for discretionary review as to additional issues. Heard in the Supreme Court 16 October 2000. Adams Kleemeier Hagan Hannah & Fouts, P.L.L.C., by M. Jay DeVaney and Erin L. Roberts, for plaintiff-appellee. Hill, Evans, Duncan, Jordan & Davis, P.L.L.C., by R. Thompson Wright, for defendant-appellant Sumner Hills Incorporated. MARTIN, Justice. Piedmont Triad Regional Water Authority (the Water Authority) is a public authority organized pursuant to Article 1 of Chapter 162A of the General Statutes. See N.C.G.S. §§ 162A-1 to -19 (1999). The Water Authority is vested with the power ofeminent domain under N.C.G.S. § 162A-6. On 24 February 1998 the Water Authority filed a complaint, declaration of taking and notice of deposit (the complaint) to condemn property for the Randleman Dam and Lake water supply project (the Project) in Guilford and Randolph Counties. The property at issue, an approximately 145-acre tract owned by Sumner Hills Incorporated (Sumner Hills), is located in Sumner Township, Guilford County, North Carolina. A substantial portion of the Property is bounded by Reddick Creek. Sumner Hills and its lessees have used the property as an eighteen hole golf course for over twenty years. The Project requires approximately 48 acres along Reddick Creek, leaving a remainder of approximately 97 acres not necessary for the public purpose specified in the complaint. The question raised by the instant appeal is whether the Water Authority may condemn the entire tract of property, including the 97 unneeded acres, under North Carolina law. Section 40A-7(a) of our General Statutes provides: (a) When the proposed project requires condemnation of only a portion of a parcel of land leaving a remainder of such shape, size or condition that it is of little value, a condemnor may acquire the entire parcel by purchase or condemnation. If the remainder is to be condemned the petition filed under the provisions of G.S. 40A-20 or the complaint filed under the provisions of G.S. 40A-41 shall include: (1) A determination by the condemnor that a partial taking of the land would substantially destroy the economic value or utility of the remainder; or (2) A determination by the condemnor that an economy in the expenditure of public funds will be promoted by taking the entireparcel; or (3) A determination by the condemnor that the interest of the public will be best served by acquiring the entire parcel. N.C.G.S. § 40A-7(a) (1999) (emphasis added). The Water Authority alleged and declared in the complaint that Sumner Hills’ entire tract should be condemned because the requirements of subsection 40A-7(a)(1), (2), or (3) had been met. In its answer, Sumner Hills asserted that the Water Authority had “improperly determined that the entire tract should be condemned, rather than the portion thereof actually required for the public purpose.” After a hearing, the trial court determined “[t]he Project require[d] the taking of approximately 48 acres along Reddick Creek, leaving approximately 97 acres of the original Property.” Moreover, it found the 97-acre portion will “retain substantial value” and “will not be in a shape, size and condition so as to have little value, even though the value of this remaining parcel will be adversely affected by the taking.” Based on its findings of fact, the trial court concluded the Water Authority was not authorized under N.C.G.S. § 40A-7 to condemn the entire 145-acre tract and that the condemnor may take only that portion of the property necessary for the Project. Accordingly, the trial court ordered plaintiff to file an amended map showing the portion of the property actually required for the Project. The Court of Appeals reversed the trial court. Piedmont Triad Reg’l Water Auth. v. Sumner Hills Inc., 136 N.C. App. 425, 430, 524 S.E.2d 375, 378 (2000). According to the Court ofAppeals, because “the purpose of section 40A-7 [was] to set forth the allegations necessary for the [Water] Authority’s complaint, it would be illogical to require a threshold determination that the remainder [was] ‘of little value’ in order to condemn the property.” Id. at 429, 524 S.E.2d at 377. The Court of Appeals felt “that the phrase ‘of little value’ [was] so subjective that our legislature could not have possibly intended it to be a threshold determination.” Id. The Court of Appeals therefore concluded that the “of little value” provision in the statute served only as “a mere introduction to the more specific determinations in subsections (1), (2) and (3).” Id. We disagree. We have not previously addressed whether a condemnor may take property in excess of that required for an otherwise valid public purpose as envisioned under section 40A-7. Because the legislature stated no specific intent in enacting section 40A-7(a), “this Court must determine the intent of that body.” Faulkenbury v. Teachers’ & State Employees’ Ret. Sys. of N.C., 133 N.C. App. 587, 591, 515 S.E.2d 743, 746, disc. rev. denied and cert. denied, 351 N.C. 102, 540 S.E.2d 358 (1999); see also State v. Bell, 184 N.C. 701, 705, 115 S.E. 190, 192 (1922). At the outset we note that eminent domain is permissible in North Carolina, as in other American jurisdictions,
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