- 9 -
Benning report and, apparently, accepts its conclusions as to lot
yield:
The * * * [Benning report] illustrates that the subject
property’s size, shape and topography is capable of
being developed with 15 single family residential lots.
It should be noted that there is a potential for an
increase in the yield to 16 lots if the property were
to be jointly developed with the adjacent property
owners.
Mr. Sapperstein believes that the highest and best use of the
land after conveyance of the easement is as a farm (subject to
the restrictions of the easement).
Mr. Sapperstein was aware of previous conveyances of
development rights to Howard County under the Program, but he
concluded that there did “not exist a substantial record of ‘fair
market value’ transfers that present a meaningful or valid
comparison to the subject property.” As a disadvantage, he
mentions the initial limit of 50 percent of fair market value of
the subject land and the subsequent per acre cap of $6,600.
Mr. Sapperstein chose to estimate the value of the easement by
using the “Before and After” approach, comparing market data for
comparable properties sold with development rights intact to
market data for properties sold for agricultural use.
Mr. Sapperstein concludes that the value of the development
rights that were sold to Howard County is the difference between
the “before” and “after” values.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011