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Mr. Lipman recognizes that Howard County landowners may accept a
price from the county below the before and after differential in
value of their land. He concludes:
Accordingly, while the Montgomery County sales of
TDR’s adequately represent the totality of monetary
award and therefore are dependable vis-a-vis the direct
comparison approach, development rights sales in Howard
County do not reflect those characteristics.
Therefore, the Howard County sales themselves do not
constitute full consideration and we cannot use them
from a direct comparison perspective. * * *
Mr. Lipman considers data from Montgomery County sales of TDRs
that “would suggest development rights values for property in
Howard County by direct comparison in the range of $6,000 to
$6,500”. Nevertheless, he concludes: “After considering this
data, we believe that the before and after approach to value is a
more accurate measure of the subject’s development rights.”
During his oral testimony, Mr. Lipman agreed that data from
Montgomery County sales of TDRs is irrelevant to determining the
fair market value of the easement.
Based on his assumptions as to highest and best use,
Mr. Lipman reached the conclusion that the fair market value of
the easement on December 1, 1990, was $367,000. Mr. Lipman
provided the following table to illustrate his calculations (the
entries for improvements reflect a dwelling on the land):
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