Billboards

    1. When billboards "cannot be relocated to comparable, income-generating sites" within the market area, the bonus value approach to value does not sufficiently compensate the advertising companies for their leasehold interests, and the income capitalization methodology should be used. Nat'l Adv. Co. v. State, Dep't of Transp., 106 Nev. Adv. Op. 10 (2000).

    2. "As noted by the district court, the bonus value approach is based on the assumption that the Advertising Companies may keep the benefit of their bargain with the Damontes if they can relocate their billboards under a comparable lease at market value to another comparable site. The evidence in this case, however, clearly establishes that these billboards were in valuable, unique locations, and that the billboards could not be relocated to a comparable site within the market area." (Id. at 7)

    3. "If the billboards cannot be relocated to a comparable site, as is the case here, then the state must compensate the billboard owners for the valuable interests taken, that is, the value of their leasehold interests, taking into account the irreplaceable, lost rental income." (Id. at 7, n. 8)

    4. "In order to determine the value of the leasehold interests...the advertising rental income must be considered under the income capitalization approach, which adjusts the anticipated net income to present value through the capitalization process." (Id. at 7, n. 7)

[Query: What would the court do if a condemnor takes out a grandfathered porn shop? Or - god forbid - a neighborhood casino that cannot be relocated in the market area because of gaming enterprise district limitations?]