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Dr. Friedman in valuing the Bates Center. The cost approach was
the methodology most important to Mr. Cantrell in valuing the
Bates Center.
As Mr. Cantrell states in his report, buildings like the
Litton building are built for owner occupants and tend to be
owner occupied and not to be rented in the market. Additionally,
Mr. Cantrell's report states that the sales comparison method is
generally recognized as being the best method for valuing land as
if vacant and ready for improvement to its highest and best use.
Based on our review of the record and the weight accorded
the sales comparison method by both parties, we deem it
appropriate to set aside the cost and income approach to
valuation in this case. Instead, we rely on the sales comparison
method in determining the value of the gifted Litton property and
the Bates Center.
IV. Fair Market Value of the Gifted Litton Property
Mr. Cantrell determined the fair market value of the gifted
Litton property on December 15, 1992, to be $1,805,000. Dr.
Friedman determined the fair market value of the gifted Litton
property on December 17, 1992, to be $800,000 (before subtracting
costs required to place the building into service).
A. The 11.656 Acres
Under the sales comparison method, Mr. Cantrell determined
the fair market value of the 11.656 acres (which was 507,728
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