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caused by downsizing and/or closing of plants is typically
absorbed in other local plants, based on seniority."
We think that Mr. Bollinger’s conclusions are too
optimistic. They fail to take into account the close proximity
of the V-8 engine plant to the subject property. The closing
would affect business because of the decrease in employee
traffic, the absence of visitors to the plant, and the effect the
closing would have on other local businesses. The publicity that
accompanied the announcement would have alerted any buyer of
commercial real estate of the proposed plant closing. Any such
buyer would expect to pay less for the property after the
announcement than before. We believe that the announcement of
the plant closing justifies a 10-percent discount to the value of
the property. We therefore conclude that the $370,000 value,
which was made without consideration of the General Motors
announcement, should be reduced to $333,000.
Both petitioner and respondent presented expert testimony
and expert reports to support their valuations of Bristol West
retail/office property. Again, both experts utilized a sales
comparison approach, a capitalization of income approach, and a
cost replacement approach to determine the value of the subject
property.
Petitioner’s expert in this regard was David K. Rexroth, who
prepared a report and testified at the trial of this case. Mr.
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