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adjustments to the comparable sales prices where necessary. One
parcel, however, the Gold Mountain broadcast site, was valued
using an income approach, capitalizing net income at 17
percent.12
The parties agree that eight parcels had a higher and better
use than timberland. A comparison of the estimated values of
these properties is as follows:
Property Mr. Allen Mr. Slack
Bucklin Ridge $3,600,000 $2,400,000
Poulsbo 80 112,500 130,000
Everett 765,000 707,000
Gamblewood 247,500 285,000
Pete’s Mountain 792,000 1,247,000
Discovery Bay 1,080,000 623,600
Camano Hill 180,000 246,000
Brown’s Point 558,000 697,000
Total $7,335,000 $6,335,600
Like the market for timberland, the real estate market was
depressed in 1985. As such, we do not agree with Mr. Allen's
determination that 11,084 acres of real estate held by Pope &
Talbot Development were potentially developable in the reasonably
foreseeable future. Moreover, we note that upon conversion of
designated forestland into ad valorem property, the owner must
pay a conversion tax equal to the additional amount of tax that
the owner would have paid if the property had been subject to the
ad valorem tax rate for the preceding 10 years. While this cost
12Mr. Slack valued the Gold Mountain parcel at $126,500.
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