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reduction was based on his changed view that the property would
not likely have been approved for development as residential
property.
Hulberg’s opinion contained references to four Pleasanton
area sales during the period June 1992 through December 1993 with
a per-acre price range of $80,071 to $245,701. The sales he
chose occurred prior to the June 1994 agreement, and the
transaction concerning the Busch property was accordingly not
factored into Hulberg’s analysis. He then employed substantial
discounts that he attributed to a lack of development approval
and the political climate or conditions that may affect the
possibility of approval. Hulberg compared the Busch property
with situations where unimproved land was discounted by as much
as 80 percent for lack of development approval and concluded that
a 60-percent discount4 should be used with respect to the Busch
property. Included in Hulberg’s analysis, and presumably his
discounts, were adjustments for the time the land would be on the
market prior to sale. Hulberg opined that the Busch property had
a $25,000 per-acre value.
Applying the $25,000 per-acre value to the 90 plus acres and
rounding off, Hulberg arrived at a $2,270,000 gross value. After
a lengthy discussion of various discount concepts, Hulberg
4 The range of per-acre values after the decreases appears
to reflect reductions in value ranging from 60 percent to 80
percent.
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