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interests; (3) the remoteness of a sale of Powhatan Associates; and
(4) the probability of an event giving rise to a dispute among the
venturers.
By applying these discounts, Mr. Gampel concluded that the
fair market value of the stock bonus to Dr. Gow was $685,000
($856.25 per share) on February 16, 1989, and $299,000 ($747.50 per
share) on February 15, 1990.
B. Valuation by Respondent’s Experts
Respondent relied upon two expert witnesses: Diane Maiden
(Ms. Maiden) and Deborah Kalmar (Ms. Kalmar), both of whom are
employed full time by the Internal Revenue Service. Ms. Maiden, a
real estate appraiser, valued Powhatan Associates’ inventory of
time-share intervals and the land yet to be developed as time-share
property.2 Ms. Kalmar, a business valuation expert, used Ms.
Maiden’s valuations to complete respondent’s valuation of the stock
bonuses awarded to Dr. Gow.
Ms. Maiden valued the income-producing property of Powhatan
Plantation using the discounted cash-flow method because of the
2 On Feb. 16, 1989, the project was in phase III of its
planned development, with approximately 50 acres (146 units) of
the 256-acre site devoted to the project. By Feb. 15, 1990, 65
acres (196 units) had been devoted to the project. According to
the zoning and final site plan, approved by the James City County
Board of Supervisors in April 1984, only 500 residential units
could be built on the 256 acres. Therefore, in 1989, 206 acres
remained to be developed with a maximum of 354 residences and in
1990, 191 acres remained which could be developed with 304
residences.
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