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required a time adjustment to 1985. Mr. Allen assumed that some
timber would remain on the subject property because of the
difficulty in marketing completely bare, or clear-cut, land. In
cases where the parcels were large and comparable sales were not
available, Mr. Allen utilized a development approach. The
approach involved an analysis of the potential segregation of a
parcel, less the costs to segregate and sell the lots. Mr. Allen
retained a planning firm specializing in the subdivision of land
to assist in the estimation of the development costs. To the
extent that a typical buyer would recognize the value of
merchantable timber in excess of a light forested cover, Mr.
Allen relied on Mr. Prochnau for the value of such excess timber.
Mr. Allen then applied a bulk discount of 10 percent to the
total appraised value of the subject properties to recognize
several potentially offsetting factors: (1) The ability to sell
scattered parcels individually, (2) the near-term development
potential of property in Kitsap County, (3) the long-term holding
prospect of property in Jefferson County, and (4) the moderate
activity in Pierce County. Mr. Allen estimated the total market
value of the development properties (after discount) to be $20.9
million.
Petitioner’s expert, Byron Slack of National Appraisal Co.,
determined that approximately 2,000 acres (10 parcels) had
development potential. Mr. Slack utilized a market, or
comparable sales, approach to valuing these parcels, making
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