San Francisco Bay Area Rapid Transit District v. Central Valley National Bank

MOLINARI, P. J.

Following a judgment condemning a parcel of real property to San Francisco Bay Area Rapid Transit District, proceedings were had pursuant to Code of Civil Procedure section 1246.1 to apportion the $33,000 condemnation award as between Donald Moore and Sanfar Laboratories, Inc., the owner and lessee, respectively, of the subject property. Sanfar appeals from the judgment in those proceedings, which judgment awarded $2,025 of the $33,000 to Sanfar and the remainder (less taxes due to the County of Contra Costa and the City of El Cerrito) to Central Valley

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National Bank, Moore’s assignee. Sanfar’s sole contention on this appeal is that in apportioning the condemnation award the trial court should have awarded Sanfar an amount equal to the value of the improvements which it constructed on the condemned property.

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By a written lease dated March 15, 1962, Moore, the owner of a parcel of improved property at 11570 San Pablo Avenue in El Cerrito, agreed to lease the subject property to Sanfar for use in its business of biological manufacturing. This lease, which was for a term of one year commencing March 16, 1962 but gave Sanfar an ‘

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option to renew on year to year basis, ’ ’ provided that Sanfar “shall have the right to partition, add electrical wiring, air ducts, and install sinks, etc., with sewer and water connections as needed for normal conduct of business” and that “All improvements . . . must be done in such a way as to have the approval of the lessor and the city building inspector. ’ ’

In October 1962 Moore and Sanfar executed a second lease for the subject property, the term of this lease to be for five years commencing on March 16, 1963 at the time the original lease expired. This lease, which provided for an increased rental, contained provisions regarding improvements to the subject property identical to those contained in the previous lease and further provided that “Cost of improvements will be borne by the lessee. ’ ’

In order to make the leased premises suitable for use in its business, Sanfar, in March or April 1962, commenced construction of various improvements on the interior of the building. These improvements consisted of the following: partitioning the building into a number of rooms each with a special function, such as cold room, temperature control area and chemical laboratory; constructing ceilings in several of the rooms lower than the existing ceilings; constructing floors in several of the rooms above the existing floors; installing insulation in a number of the ceilings, floors, and walls; installing surface mounted electrical outlets, a ventilating system, and gas and water outlets; and installing work benches, sinks, and shelves in a number of the rooms.