- 11 -
opinion as to the fair market value of the easement as of
December 1, 1990. Mr. Lipman believes that, as of that date, the
highest and best use of the land was for development into single
family residential lots. As was true for Mr. Sapperstein,
Mr. Lipman 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).
Montgomery County is adjacent to Howard County. Mr. Lipman
was aware that, in Montgomery County, sales of development
rights, known as “Transferable Development Rights” (TDRs), occur
with some frequency. Mr. Lipman testified that a Montgomery
County landowner who conveys a TDR gives up the right to
residential development and is left with land available only for
agricultural or similar use. He believes that sales of TDRs in
Montgomery County are at prices that represent “a true indication
of arms length negotiations for the totality of the development
rights”. Mr. Lipman believes that Montgomery County sales of
TDRs present “dependable comparable sale[s] in the context of
development rights valuation and can be used as direct sales
comparisons.” Mr. Lipman notes that Howard County's instructions
to their appraisers state: “By law, Howard County may not pay
more for the easement than fifty (50) percent of the appraised
fair market value of the property.” (Fn. ref. omitted.)
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