10/22/2012 Council Packet - Laserfiche WebLink

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upon a portion of the existing driveway, where the only new section of road will be approximately 147 square feet for the turn off? Petitioner Petitioner's most recent damage calculation is as follows: The cartway is 16,120.5 square feet in size. Using the HOA's land value of $.50 per square foot, the total land value of the cartway is $8,060.25. Because Petitioner is just one of six property owners who will utilize the cartway, his share (1/6) of the land value to be paid as damages is $1,343.38. This analysis does not take into account the impact, if any, on the remaining HOA property, including the improvements, incurred as a result of creating the cartway, nor does it address ongoing maintenance costs. HOA The HOA asserts damages of at least $747,987.25, which consists of three components: land value, improvement value and severance damages. Land Value The HOA's appraiser values Outlot A at $.50 per square foot. Using the entire width and length of the Outlot, which is calculated as 131,304 square feet, the estimated value of the entire Outlot is $65,652. The HOA takes this number and simply adds it to their damage calculation. A few issues come to mind with this approach. First, the $.50 per square foot amount was calculated using the sales comparison approach. The properties used as comparable sales appear to all be home lots, whereas Outlot A is an outlot platted for the specific purpose of being used as a road. Roadway outlots and single - family home sites are not terribly comparable. Such outlots are jointly owned whether directly or through a _homeowners - association by those who use it. It is e- ssentially a servient parcel that benefits only those owners. As a dead -end private right -of -way, it is of no value to the general public and would never be sold to anyone else. Consequently, the value derived by using wooded, single family home sites as comparables is likely inflated. Second, the HOA's damage number is calculated using the entire length and width of Outlot A. The cartway sought, however, is the road width (which happens to be two rods wide — the cartway minimum) and just enough length to get to the point of entry for the subject property. This amounts to 16,121 square feet, or only 12.28% of the total. Staff is unaware of any legitimate justifications for establishing a cartway wider or longer than Petitioner requested. Third, the appraisal calculated the land at sale value. While that approach is commonly used, for example, when more frontage is acquired from a property owner to widen a street or land is acquired to build a new street as part of a neighboring development project, it may not 4 • •