The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, April 17, 1996              TAG: 9604170382
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY PAUL SOUTH, STAFF WRITER 
DATELINE: MANTEO                             LENGTH: Medium:   70 lines

TESTIMONY CENTERS ON LOTS' VALUE

A Hatteras Island real estate agent testified Tuesday that six lots at the center of a legal controversy are worth between $139,000 and $150,000.

Attorneys for the Dare County Board of Education, however, contend that the soundfront lots are worth as little as $7,000.

The lots, formerly owned by two Maryland families, were taken by the school system for the construction of new athletic fields at Cape Hatteras School. The North Carolina Supreme Court upheld the board's right to take the 5.3 acre tract under the power of eminent domain.

It is up to a Dare County jury to decide how much the school district must compensate the Elpis Sakaria and Jack and Lillian Hillman families for the property.

In Tuesday's testimony, real estate agent Ruth Ann Burgess told jurors she did a comparative market analysis of the property for Sakaria in 1990. Based on appraisals and sales of neighboring properties, each of the six Buxton tracts along Pamlico Sound is worth at least $139,000.

However, under cross-examination from school attorney Brian Howell, Burgess testified that while she was a licensed real estate agent, she is not a licensed appraiser. At the time the analysis was done in 1990, a license was not required to do appraisals. Now, however, they are.

In related testimony, Jack Hillman also testified that his property was worth at least $139,000.

``That's what I would have to pay if I wanted to buy something comparable,'' he said.

Hillman added: ``This is where I planned to retire. Someday, if my grandchildren came to live with me, it would be ideal because it was close to the school.''

Under cross-examination, Hillman said he never retired to the Outer Banks, instead remaining in his Chevy Chase, Md., home. The former lawyer drew a laugh from jurors when asked by school lawyers if he had retired to North Carolina.

``I couldn't,'' he said. ``You took my land. We didn't make as much money when I practiced law as lawyers make today.''

However, under cross-examination, Howell showed Hillman a deed to the property, showing a revenue stamp for $7. Fees for deeds are calculated at a rate of $1 for every $1,000 paid in the transaction. Hillman said he wasn't sure how much he had paid. But he maintained it was far more than $7,000.

``You want me to say I paid $3,000 or $7,000 or $10,000 for this. But property values now are much more than that,'' he said.

Out of the presence of the jury, Hillman testified that the families involved had paid more than $100,000 in legal fees fighting the condemnation by the school board, and the current case.

Also, he said some $10,000 to $15,000 had been paid to experts.

Hillman's wife, Lillian, echoed Sakarias' Monday testimony and said no value could be placed on the land.

However, pressed by Rob O'Donnell, counsel for the land owners, Lillian Hillman said the tract was worth $140,000.

Two expert witnesses closed out the first full day of testimony, saying that the property was suitable for the construction of retirement homes.

At least one light moment occurred in Tuesday's testimony.

While cross-examining Jack Hillman, Howell said: ``Now Mr. Hillman, I didn't practice law in Washington. I'm a simple Southern lawyer.''

Hillman replied: ``I'm a simple Southern lawyer, too.''

Howell responded, ``Well, let's find out who's simpler.''

Hillman retorted, ``I'm simpler than you. I'm up here (on the witness stand), and you're out there.''

Testimony resumes at 9:30 a.m. today. by CNB