UTILITY EASEMENTS AND SUBDIVISIONS

Prepared for Rapid Fire Case Studies

October 31, 2012

Present byDonald A. Fisher, MAI

Survey Question:

Do Pipelines and Powerlines have significant affects

on adjacent residential properties?

•

• • Powerline and Pipeline East of Pinnacle

Road along Blackwell Lane & Wickwine Lane, Henrietta

Powerline and Pipeline East of Pinnacle Road along Blackwell Lane & Wickwine Lane, Henrietta

What do you think is the impact

of the Powerline on adjacent homes?

Negative Factors

Positive Factors

South Side = $65 per SF average assessment

North Side = $69 per SF average assessment

+6% increase of average assessments from adjacent residences to houses one lot away

from the powerline

Reverse of Golf Course Effect

Use as Support for Negative adjustment to residential

properties adjacent to Powerlines

Residential Lot&

Existing PipelineEasement

Total Lot Area = 4.200 Ac.Existing Gas Line Easements = 0.259 Ac. Crosses Lot in Front of House

Original Fee Simple Area = 3.941 Ac.

Assignment: Value Loss from Removal of Trees for New Pipeline

Does Removal of 25% of Trees on Lot Affect Value?

Survey of Residential Lots• < 5% Tree-Covered• > 5% & < 50% Tree-Covered• >50% Tree-Covered

CategoryAverage –

MedianRange

Average$/Ac. Price

Median$/Ac. Price

Less than 5% Treed

$252,315 - $271,258

$57,715 $51,493

Less than 50% Treed

$236,269 - $240,168

$64,910 $63,856

More than 50% Treed

$187,257 - $202,938

$47,257 $54,848

Reasons for Heavier-Treed Lots to Have Lower Values

Reasons for Heavier-Treed Lots to Have Lower Values

•Reduced Views•More Open•Better Lighting•Fewer Leaves•Less Isolated

Heavily-Treed Lots (Before Value)

Showed A Value That Was $15,000 Less Than

Partly-Treed Lots (After Value)

• Before Value of Lot = $225,000

• After Value of Lot = $240,000

• Damages to Lot Due to Removal of Trees»= - $15,000

Open Space / FarmlandWith Existing Pipeline &

Powerline

& New Pipeline

Highest and Best Use– Before Appraisal

EU 1 – Residential Development Land (70 Ac.)EU 2 – Residential Development Land (9 Ac.)

EU 3 – Livestock Farm (15.10 Ac.)EU 4 – Residential Development Land (23 Ac.)

Land AreaTotalAcres

EasementAcres

FeeAcres

EU 1 (U/Ground)

 

0.82

 EU 1 (M&R Station) 0.22

EU 1 (High Voltage Electric)

3.37

Total Acres - EU 1 70.60 4.41 66.19

Percentage of Total Acres

100% 6% 94%

Land AreaSegment

AcresRetainedRights %

EffectiveAcres

EU 1 - Fee Simple (Before) 66.19 100% 66.19

EU 1 (U/Ground) 0.82 25% 0.21

EU 1 (M&R Station) 0.22 5% 0.01

EU 1 (High Voltage Electric) 3.37 10% 0.34

Totals 70.60 95% 66.75

Lost Rights 5%

Land AreaSegment

AcresRetainedRights %

EffectiveAcres

EU 1 – Fee Simple (After) 64.04 100% 64.04EU 1 (U/Ground) - Old 0.82 25% 0.21

EU 1 (M&R Station) – Old 0.22 5% 0.01EU 1 (U/Ground) - New 1.82 25% 0.46

EU 1 (M&R Station) – New 0.11 5% 0.01EU 1 (Perm. Access Rd.)- New 0.22 25% 0.06

EU 1 (High Voltage Electric) 3.37 10% 0.34Totals 70.60 92% 65.13

Rights Lost 8%

Damages

•Direct Damages (Land) = $51,000•Indirect Damages = $0•Temp. Esmt. – Construction = $7,000•Temp. Esmt. – Access = $10,500•Cost-to-Cure (Fencing) = $20,000•Total Damages = $88,500

Alternative Valuation(from Owner’s 2-pg appraisal)

Estate Lots @ $250,000 each(Gross Sum; No Expenses or Discount)

DamagesLoss of 1 Lot @ $250,000

2 Lots 50% Damages @ $125,000 EachTotal Damages = $500,000

New Subdivision &

Pipeline

# Acres Comments1 2.0134 Pipeline easement2 2.5660 Pipeline easement3 3.0400 Pipeline easement4 3.5074 Pipeline easement5 4.4691 Pipeline easement6 3.2944 Drainage easement7 2.1151 1+ acre drainage easement8 4.7803 Drainage & pipeline easements9 4.1751 Pipeline easement

10 2.0545 Minimal pipeline easement11 2.1688 No easements12 2.3665 No easements13 4.5409 No easements14 23.1339 No easements15 2.2975 No easements16 4.5175 Drainage easement

Totals 71.0404  

Damages

•Direct Damages (Land) = $0•Indirect Damages = $0•Temp. Esmts. – Construction = $26,000•Cost-to-Cure (Re-drafting plans) = $10,000•Cost-to-Cure (Timber) = $5,000 (comment)

•Total Damages = $41,000

Survey Question:

Do Pipelines and Powerlines have significant affects

on adjacent residential properties?

QUESTIONS?