Pope & Talbot, Inc., & Subsidiaries - Page 22

                                       - 22 -                                         
          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                 




Page:  Previous  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  Next

Last modified: May 25, 2011