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5. Conclusion
We have concluded that the appraisal reports presented by
respondent correctly identify that the highest and best use of
both parcels was commercial in nature at the time of decedent's
death. However, petitioner has raised many concerns with respect
to each parcel. Having viewed both parcels, and in light of the
testimony contained in the voluminous record, we believe that
some of these concerns are credible. Accordingly, we feel it
necessary to adjust the fair market value of each parcel as
determined by respondent. With respect to parcel A, our
adjustment stems primarily from the topography of the terrain and
the parcel’s limited accessibility to and from Highway 280. With
respect to parcel B, our adjustment stems principally from the
parcel’s lack of proximity to sewer facilities and the
questionable integrity of the fill.
Taking into account the foregoing, we hold that on February
20, 1987, the fair market value of parcel A was $5 million.
Similarly, we hold that the fair market value of parcel B was
$1.5 million on February 20, 1987. Consequently, the fair market
value of decedent's one-half interest on February 20, 1987, was
$2.5 million in parcel A and $750,000 in parcel B.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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