- 25 -
cost to build the roads in the subdivision would total
$2,123,788.18
Mr. Dallamora's road construction expense also included
$150,000 for the removal of ledge, an expense item separately
stated in Mr. Avery's report.19 Relying upon Mr. Flint's analysis
of the composition of the soil on the Property, Mr. Avery
estimated that a separate expense of $370,000 should have been
allocated for the removal of ledge.20 We find Mr. Avery's
estimate concerning this additional construction cost persuasive;
thus, Mr. Dallamora's estimate for ledge removal must be
increased to reflect this expense properly. Based upon all the
evidence presented, we conclude that the cost to build the roads
on the Property, including the cost of removing ledge, would
total $2,350,000.21
18Mr. Handverger estimated that road construction would cost
$2,200,000. Similarly, Mr. Segel estimated that the expense
would total $2,140,000.
19Mr. Avery stated that "Ledge is the 'enemy' of a site
developer as it adds to development cost and makes road and
building placement more challenging."
20Mr. Avery's road construction estimate without the ledge
removal expense was $2,569,842.
21We calculate the road cost as follows:
Mr. Dallamora's estimate ($2,123,788), plus an
additional amount for ledge removal ($370,000 - 150,000
= 220,000) = 2,343,788 or $2,350,000.
We further determine that this amount would be incurred in
two phases, 80 percent in the first phase and the remaining 20
(continued...)
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011