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Severance Damages The HOA appraiser estimated 5 -10% severance damages to the adjoining properties, which the HOA calculates as at least $163,255. The problem with this argument is that these purported damages are attributed to separate parcels that are not directly involved in this action. These damages have nothing to do with Outlot A on which the cartway is located. The single family home lots owned by the HOA members have not been severed in any respect. Severance damages cannot be attributed to parcels that merely adjoin the parcel at issue. Staff sees no merit to the severance damages argument. Damages — Conclusion The creation of a cartway over an existing private road will adversely affect the value of the road. Even though the anticipated usage of the cartway is minimal, it will nevertheless no longer be a truly private road and will be viewed as a loss to the owners. It is very difficult to put a dollar value on that diminution in value. Petitioner suggests using the HOA's land value of $.50 per square foot multiplied by the square footage of the cartway, which equals the sale value of the land underlying the cartway, and then dividing by six to take into account the six property owners who will utilize the property. This 1/6 concept was also used by the HOA in its maintenance fee proposal. This approach results in the following: Land Value $1,343 Improvements $50,639 Total damages $51,982 Maintenance The HOA provided historical maintenance figures and then suggested that a set annual amount would not be equitable given anticipated future costs. That argument makes sense, although it makes the amount variable and possibly more difficult to enforce. The formula proposed by the HOA, however, suggests that 1/6 of the entire private road be factored in, not just the cartway portion. As stated above, staff sees no merit in that approach. Instead, the maintenance costs should be broken down into two parts: those unique to the bridge and the road underlying the cartway, and those common to the entire road. Petitioner should pay 1/6 of the former and 1/6 of 12.28% of the latter. In that manner, Petitioner will pay his portion of the maintenance costs related to the cartway. Requested Council Direction None required; discussion only. Council will be determining the cartway and damages at the October 8, 2012, meeting. 5