William N. Kellahan, Jr. and Alice H. Kellahan - Page 11




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               B. Expert Reports                                                      
               Both parties rely on expert appraisals of the Canal.                   
          Respondent’s expert, Felecia Coleman (respondent’s expert),                 
          considered the 4.75-acre Canal to be solely land under water.               
          She used a comparable sales approach to value the Canal, under              
          which she attempted to estimate the value of the Canal based on             
          the sales prices of similar properties.  Since she could find no            
          sales of manmade canals, respondent’s expert used ponds as the              
          best available comparables.  Also, because there were no sales of           
          ponds in the vicinity close to the time of the contribution of              
          the Canal, she estimated the value of the ponds of comparable               
          size in the area using their assessed values for local property             
          tax purposes.  On the basis of her experience in real estate, she           
          concluded that such assessed values were typically 80 percent of            
          fair market value, and respondent introduced statistics                     
          supporting this ratio for nonresidential, nonagricultural real              
          property in Clarendon County.  Since the tax-assessed value for             
          similarly sized ponds in the area was $1,000 per acre,                      
          respondent’s expert used a figure of $1,250 per acre as the                 
          estimated fair market value of the ponds.  On the basis of that             
          figure, she estimated the Canal’s value at $5,937.50 (4.75 acres            
          times $1,250), which she rounded to $5,950.                                 
               Petitioners’ expert, Theodore B. Gardner (petitioners’                 
          expert), treated the 4.75-acre Canal as comprising three                    





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