September 23, 2022 § Leave a comment
Jasbinder Singh for Mayor
Know the facts
PROCEDURE FOR ESTIMATING THE VALUE OF THE LAND
The estimate of the land value was derived by using the specific data from the following two Appraisals prepared on behalf of the Town:
Appraisal Date December 4, 2013 by JMSP, Inc.
Appraisal Dated November 19, 2014 by Parli Appraisal, Inc.
Two parameters, value of land per apartment, and residual land value per square foot of Retail Space were used to calculate the value of the proposed project.
Total value of Land = (No. of proposed apartments x value per apartment) +
(proposed sq ft of retail space) x value per sq. ft.)
Using the formula, the values of the parameters provided by the two appraisals and the number of apartments and the total square feet of retail space proposed by Comstock, the value in 2014 was to be $14.8 million.
The calculation of the 2022 land value, was calculated by examining the rate at which property values had increased between 2014 and 2022. It was estimated that, in some areas, commercial property values had increased by about 25% and by 50% in other areas. These two values were used to estimate alternative values of downtown development land.
It should be noted that the title to the land was transferred to Comstock in December 2020.
The attached table estimates the value of Town’s loss in this transaction by using the higher estimate of the value of the land.