Estate of Duilio Costanza - Page 15




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          have found to be an improper comparison) arises from the method             
          of valuing the vacant land as a constituent of overall value.               
               We have some reservations about Mr. Schmidt’s valuation of             
          $55,000 for the land alone.  This value reflects a value of 75              
          cents per square foot for the land.  No other comparable property           
          reflected land values that low.  In order to make the cost of               
          other vacant properties "comparable" to the subject property, Mr.           
          Schmidt subjected their square-foot values to discounts ranging             
          between 55 and 80 percent.  He based these discounts upon his               
          perception that decedent’s property was inferior in size and                
          location.  His report does not justify discounts of that                    
          magnitude, and, as noted, he was not called to testify in support           
          of his valuation.                                                           
               Respondent’s witness, Mr. Bollinger, using comparable                  
          properties, found that the value of the land alone was $125,000.            
          When he valued comparable restaurant properties, however, he                
          amalgamated their land and building costs then divided the total            
          by the square footage of the buildings to arrive at a value per             
          square foot.  On the basis of these calculations, he determined             
          that an appropriate value for the subject property was $60 per              
          square foot.  We believe that Mr. Bollinger’s method does not               
          accurately reflect the underlying vacant land values and thus               
          distorts the total value calculation.  The Latina restaurant was            
          situated on a relatively large piece of land.  Most of the                  






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