Estate of Rebecca A. Wineman - Page 32




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          properties for grazing.  Under cross-examination, Mr. Hamel                 
          admitted that the Nipomo and Santa Maria properties had not                 
          achieved the cachet of the Santa Ynez River Valley.  Inclusion of           
          these properties, without location adjustment, leaves us with               
          serious concerns as to Mr. Hamel's conclusions regarding market             
          value.                                                                      
               Similarly, Mr. Hamel did not make any adjustment for the               
          presence of irrigated cropland in at least one of his comparable            
          sales,14 nor did he make any adjustment for water supply, zoning,           
          or topography.  Other than a downward adjustment to smaller                 
          parcels, the only adjustment Mr. Hamel made to the comparables              
          was a market timing adjustment.  Although Mr. Hamel stated under            
          cross-examination that he gave the sale containing irrigated row            
          crops less weight in his overall analysis, his report does not so           
          state.                                                                      
               Respondent explains the absence of adjustments for zoning,             
          water supply, and location by asserting that no adjustment was              
          necessary because all the comparable properties were cattle                 
          ranches.  We reject respondent’s explanation because it ignores             
          the increased value that agricultural property may derive from              
          proximity to a metropolitan or resort area.  See, e.g., Estate of           



               14Interestingly, Mr. Hamel had adjusted for the presence of            
          the irrigated cropland in a sales data sheet prepared in 1991               
          while he was employed by Reeder, Gilman & Associates.                       





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