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valuation date, the property carried 56 cows. During 1998, it
was carrying about 75 cows.
Parcel 8 is zoned for agricultural use, and the zoning is
burdened with a "geologic hazard" overlay. Like the Nipomo
properties, Machado Ranch is in an agricultural preserve and is
the subject of a 20-year evergreen contract.
The applicable land use laws permit rural residential use of
the property. However, the steep terrain, rough-graded access
roadway, and third-party easement rights severely restrict the
desirability for residential use. The property is also situated
in an area at risk for wildfires, and portions of the ranch were
burned in fires during 1985 and 1994. There are no developed
utilities, and the ranch roads are usable only by four-wheel-
drive vehicles.
As of the valuation date, the fair market value of
decedent's interest in parcel 8 was $231,000.
Rental of Decedent’s Ranch Properties
During 1989, 1990, and 1991, decedent leased her interests
in the ranch properties to Coastal Ranches, pursuant to oral
agreements. Coastal Ranches paid decedent $5,000 per year during
1989 and 1990 and $10,000 per year during 1991 for the right to
graze cattle on her ranch properties. The rate of rent was not
negotiated. For these years, decedent informed her children what
rent she intended to charge, and the children accepted that rent
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Last modified: May 25, 2011