The following information is addressed in a market value appraisal prepared by Klein Appraisals, Inc. at the request of the Meade School District.
The subject's 154.5 acres of commercial development land (highway access) is above average in location, access, and visibility. Sale 2 (comparison) is across Highway 34 from the subject, and sold for $4,989 in 1999. Applying an appreciation of 3% per year, the adjusted value of Sale 2 is $7,546 per acre. I estimate the 154.5 acre portion of the subject property to be $8,000 per acre, for a total value of $1,236,000. This area has not shown a need for commercial development. It appears that commercial development is running along the Interstate 90.
The 40 acre portion of the subject property (NW corner) would not have legal access if it were sold. Although legal access could be attained, it was analyzed in this appraisal as not having legal access if it were to be sold. Sale 6 (comparison) do not have good visibility or access, and is considered to be most comparable to this portion of the subject property. It is my opinion that the 40 acre portion of the subject has a value of $7,000 per acre, for a total value of $280,000. Smaller parcels typically sell for more per acre than larger parcels and that explains why these two parcels are similar in value per acre.
The remaining 215 acres in the flood plain definitely has value, but uses of land in the flood plain are very limited. Creeks through residential development is an asset, but the majority of the subject property is commercial development land, where access to a creek is less desirable. Some of the typical uses of flood plain land are parks and golf courses. The subject property has no zoning ordinances, so there are many legal uses, but construction would be expensive because of engineering specifications in the flood plain. Because of the restricted use of this portion of the subject property, the estimated value is $5,000 per acre, for a total value of $1,075,000.
Total value of the subject property by the sales comparison approach is $2,591,000 rounded to $2,590,000.