Laserfiche WebLink
9786-2 36 <br /> <br />ESTIMATE OF DAMAGES <br /> <br />This process is complicated by two factors. <br /> <br />The current improvements are not the highest and best use of the land. <br />Further, residential and industrial land uses are typically not <br />complementary land uses. Thus, in most cases a residence on <br />industrially zoned land will have less value than a similar home on <br />residentially zoned land. <br /> <br />The taking causes relatively minor changes to the property as improved. <br />At the closest point, the new right-of-way will only come to within 120' <br />of the house. However, the road will run through a wetland/wildlife <br />area, thus replacing a positive residential lot feature with a negative. <br /> <br />If the subjeCt land was a residential zoned lot, it would have a value in the high end of <br />Elk River rural lot value - approximately $50,000 depending on the surrounding land <br />uses. The home, if located on a residential lot, would have a value of over $200,000 (it <br />sold in 1996 for $220,000 - however this sale was between Dirk and Jayne Barrett and <br />James Barrett - father and son). This transaction was reportedly to facilitate financing and <br />is not considered to be arm's length. <br /> <br />Based on an on-site inspection and review of the local Elk River market, we believe <br />severance damages to the property, as improved, would be approximately 5% of lot <br />value, or 1% of total property value. Using a residential lot value of $50,000 and a total <br />property value of $220,000, severance damages to the property as improved can be <br />calculated as follows. <br /> <br />$50,000 x .05 - $2,500 <br />$220,000 x .01 - $2,200 <br /> <br />The indicated range of severance damages as improved is $2,200 to $2,500. We will <br />conclude to a value impact of $3,000 to the property as improved, because the property <br />appraised involves an inconsistency in highest and best use. These damages are <br />believed to be over and above the direct damages to the land. <br /> <br />Patchin & Associates, Inc. <br /> <br />Valuation Consultants <br /> <br /> <br />