Property valuations

[thomas harbinson]

Commissioners,

I was cleaning out my Google Drive, and came upon a spreadsheet from 2008.  It dealt with valuations for both Soundview Ave and Wiacek Farm.  As discussed in our past CC meeting, these were both examples of where the City waited until a development layout was applied for (and approved) and thus a more accurate understanding of lots and therefore the value of the land was established.  I would put forth that given past history, that is how a future practice would go on an acquisition target.

For some history, the Wiacek Farm was next to Meadow Street, always a targeted need for City purposes.  The City had a valuation that was farm lower than the owners and they couldn't come to an agreement.  The City thus took the property by eminent domain.  When a municipality takes property by eminent domain, they immediately must put the purchase amount into an escrow account until it is approved by the courts.  The owner challenged the valuation (I was called to testify in the court case by Asst City Attorney Ray Sous), and ultimately the City had to pay more than it intended.  This was in 2004 - 22yrs ago.

The second case was at 290 Soundview Ave in 2008, just 4yrs later.  This was a property where we saw the for sale sign by owner posted, contacted them and they wanted an immediate sale for a set price.  A City can't react that quickly the way a private developer can, and despite our efforts it slipped into a developer's ownership (a corp owned by Al Dasilva, who was on the Wetlands Commission at the time).  An application for development was made, was approved, and then the City purchased the property.  The price per lot in 2008 at Soundview Ave had climbed 14% in 4 yrs compared to 2004 at Wiacek Farm.

Anyway, my point is that the negotiation style for purchasing property is typically to wait for greater surety of valuation based upon the reality of what lot quantity would be obtained thru subdivision.

Tom Harbinson

Tel: 203SirTomH