- 15 -
Our determination of fair market value has been assisted by
the experts in this case. Respondent's expert was Robert J.
Strachota (Strachota), President of the Shenehon Co.
Petitioners' expert was Robert J. Lunieski (Lunieski), President
of Lunieski & Associates. We are not bound by an expert's
opinion, Estate of Kreis v. Commissioner, 227 F.2d 753, 755 (6th
Cir. 1955), affg. T.C. Memo. 1954-139, and we may adopt or reject
an expert's opinion in its entirety if we believe it appropriate,
Helvering v. National Grocery Co., 304 U.S. 282, 294-295 (1938).
We also may select only the portions of an expert's opinion that
we choose to adopt. Parker v. Commissioner, 86 T.C. 547, 562
(1986).
Strachota performed a "retrospective market value appraisal"
of the Property in July 1995, shortly after its demolition.
Strachota did not physically inspect the Property; he relied on
the descriptions of the Property that were set forth in three
appraisals, two of which valued the Property as of January 5,
1989, and the third as of February 26, 1988. Strachota
ascertained that the highest and best use of the Property was as
a multiplex adult entertainment facility, and that the zoning
ordinances added value to the Property. Strachota concluded that
the fair market value of the Property on March 1, 1989, was
$800,000. Strachota reached his conclusion by estimating that
the Property's value was $600,000 under the "cost approach", and
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011