William N. Kellahan, Jr. and Alice H. Kellahan - Page 13




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               With respect to the 1.25-acre strip of land above water,               
          petitioners’ expert estimated the size of the strip based on a              
          visit to the Canal and examination of tax assessor maps.  He                
          valued the strip of land as follows:  He measured the total                 
          waterfront footage of all lots on the Canal at 3,650 feet.  He              
          then summed the total sales prices of all the lots between March            
          1975 and December 10, 1990, which produced a figure of $368,900.            
          He then divided the latter by the former to establish an average            
          cost per waterfront foot of $101.07.  He then discounted this               
          number by 85 percent, producing a value of $15.16 per waterfront            
          foot, or $55,334 for the strip (3,650 feet x $15.16).                       
               The value of the Canal, therefore, under petitioners’                  
          expert’s computations, was the sum of the value of the piers                
          ($7,800), the value of the land under water ($9,625), and the               
          value of the strip of land above water ($55,334), for a total of            
          $72,759, which he rounded down to $72,500.                                  
          C.  Court’s Analysis                                                        
               Valuing this parcel of property was no doubt a challenge for           
          both experts in this case, given its highly unusual, if not                 
          unique, characteristics.  Nonetheless, the Court’s review of both           
          experts’ theories reveals that they cannot hold water.                      
               We start with the use of ponds as comparables.  Although we            
          appreciate the dilemma faced by the experts, we do not accept the           
          premise that a pond is comparable to the Canal.  The owner of a             





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