conservation easement as part of a $2.2 million dec fine for a large fish kill
TRANSCRIPT
CONSERVATION EASEMENT AS PART OF A
$2.2 MILLION DEC FINEFOR A LARGE
FISH KILL
Result of Lagoon Breach
3,000,000 gallons spilled into the Black River
250,000+ fish killed
Strongly scented tide moved through Watertown
Water supplies shut down
River activities shut down
NYS DEC Actions
$2.2 Million Fine for Fish Kill(250,000 x $10 = $2.2 Million±)
$1.5 Million = Environmental Contribution
$700,000 = Cash or Equivalent
Environmental Contributions
• $180,000 = Fishing Rights, Parking Areas and Paths to Black River
• $1,320,000 = Development Rights
Development Rights
• Lowville Area, Lewis County
• Parent Property = 3,269.98 Ac.
• Flood Plain included 602.90 Ac.
• Base Acres for CE = 2,667.08 Ac.
• Assumed NYS FPP Requirements– Land Valuation Only – Standard NYS FPP Ag CE Terms
Before Appraisal
• Market Study– Frequency of Residential Land Sales– Size Ranges of Sales– Price Ranges for Size Ranges– Patterns of Land Purchases– Potential for Interior Subdivisions
Before Appraisal - HBU
• Multiple Economic Units / Lots (81)
• Size Mix Similar to Results of Market Study
• All Roadfront Lots (no interior roads or utilities)
• Considered Amenities
Before Appraisal - Valuation
• Appraised All EUs as Individual Lots
• Gross Value
• Discounts for Subdivision, Marketing– Used Market Study As Basis
• Net Value of Land
After Appraisal
• Appraised Property as Single EU
• 2,667.08-Ac. Tract of Farmland– Devoid of Development Rights– Ag-Related Development Permitted
• Used Sales Approach
• Surveys of CEs and ACEs
• ICA – Ag Values of Soils + Other Retained Rights
Value of Development Rights
• Difference of Before and After Appraisals
• Total Difference > $1,320,000
• Acreage for AgCE Withdrawn Based on Owner’s Priority– Locations to Retain Development Rights– Deducted Difference of:
• Discounted Value of EUs• Ag “After” Land Value
QUESTIONS?