- 30 -
(1) that as of the valuation date the supply of unimproved real
estate in the market in which the remaining unimproved real
properties were located far exceeded the demand for such real
estate and (2) that those properties could not have been sold
within a reasonable period of time after the valuation date,
which, in his opinion, was one year. Consequently, Mr. Egan
applied an absorption discount of $12,339,871, which he deter-
mined pursuant to a discounted cash-flow analysis, to the stipu-
lated value of the remaining unimproved real properties in order
to determine the aggregate fair market value of those properties
on the valuation date.
Mr. Guice, respondent's real estate valuation expert,
conceded at trial that as of the valuation date the supply of
unimproved real estate in the market in which Marrero Land's
remaining unimproved real properties were located far exceeded
the demand for such real estate. When cross examined at trial
about the remaining unimproved real properties that were zoned as
commercial, industrial, multifamily residential, and wetlands,
which accounted for approximately 94 percent of the stipulated
value of the remaining unimproved real properties, Mr. Guice also
admitted that those properties could not have been sold within
one year after the valuation date. Nonetheless, Mr. Guice
refused to apply an absorption discount in determining the
aggregate fair market value of those or any other remaining
Page: Previous 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 NextLast modified: May 25, 2011