- 19 -
demand for such properties during 1993. Therefore, we adopt
Wheeler's analysis of these properties as evidencing the fair
market value of the MLR easement.
2. Respondent's Expert
a. Qualifications
Respondent's expert, Dennis C. Hoeger (Hoeger), is one of
the 19 ARA's in the State of Montana and a member of the Montana
Chapter of the American Society of Farm Managers and Rural
Appraisers. He is also a member of the Appraisal Institute and a
certified general appraiser in the States of Montana, Wyoming,
and Idaho.
b. Hoeger's Methodology and Conclusion
Hoeger used the "before and after" method to determine the
fair market value of the MLR easement in 1993. In agreement with
the stipulations made by the parties, Hoeger opined in his report
that petitioner's property had a fair market value of $8,200 per
acre or $2,624,000 before the MLR easement. After the easement,
he opined that petitioner's property had a value of $7,380 per
acre or $2,361,600. Therefore, Hoeger concluded that the MLR
easement had an estimated fair market value of $275,000 in 1993.
To support his conclusion that the per-acre cost of petitioner's
property decreased 10 percent after the MLR easement, Hoeger
analyzed two easement-encumbered property sales and several
paired sales.
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