How Much Does 10 Liquor Icenses Increase A Value Of A Historic Jail?

[DTB]

Am I looking at this wrong? What should I do?

I think I would not be looking to sell my chip in this way.
I may try to work out an arrangement with the authorities whereby I keep my jail standing and as a tourist stop perhaps in exchange for a fee and/or one them there liquor licenses.

if the license can be held under a master LLC type of arrangements I would then, work a deal with an established bar operator for them to operate under that license.

Or if all that is not your cup of tea, I would estimate the economic value of the 10 liquor licenses and the revenue they bring to the town and simply offer to lease them my key property for a mere fraction of that revenue.

 

[Mr Rex]

Don't tear it down. Get a character actor to play Otis Campbell and charge admission to see the jail.

 

[historicplace]

To OP. This is my understanding. Op does not own liquor licenses. City can issue 10 new licenses only because historic district meets criteria for the new licenses. OP owns the building that provides the required part of criteria for city to issue additional 10 licenses. If op tears down building. City loses ability to issue the 10 licenses. So if op tears down building. City loses what could be an important development inducement. No comment on value. Just wanting to make sure I am viewing scenario correctly

Yes. This is the scenario. I also have a buyer for the bricks the building was constructed with. The building has a history that ties with Alcatraz & a past historic figure. This makes the bricks very valuable to those seeking vintage bricks.

 

[historicplace]

[QUOTE="Mark K, post: 2755134, member: 75393"
In typical Indiana fashion, the legislature tailors laws with restrictions that match only one city.
A college town desperately in need of revitalization and with connections deep in the statehouse, all the way to the family of the wife of an ex-US Vice Pres.
But then, I might be wrong...[/QUOTE]
The law is a state law & is being used in other towns. I've done some research & quite a few county seats meet this criteria for their town as well. The next county over being the closest. Their jail is a B&B, their opera house is owned by their Chamber of Commerce. (Smart move.) It's just a matter, if they wish to explore this direction for their community.

I know of 10 cites/towns utilizing the grants programs my town has taken advantage of. 2 more are exploring it. As far as my building goes, I offered it for sale before proceeding. I have a buyer for the vintage bricks. It's a considerable amount of money. If it is worth more to wait the process out, I will.

 

[KHS445]

Sounds like you may have four and possibly more values to figure out. First is the "as is" market value of you propery. Second is the salvage value of the material. Third is the projected market value of the vacant land net of any cleanup and possible redevelopment costs. Lastly is for lack of a better word the "blue sky" value to the local government to have up to 10 new establishments able to sell liquor in the community.

Several of these numbers can be established with a little work. The most difficult number to estimate and support will be the potential financial benefit to the local government(s). If Indiana is anything like Michigan and a number of other States in addition to the local governmental unit the Township, County and possibly the State would receive an econmic benefit from any new development as well. Does your community have a DDA or is your business district part of a TIF?

Is there any government owned land in the area that you might be interested in swapping your building for. A swap might be easier on the government than a cash settlement. If multiple entities may benefit from the potential new development based on the 10 licenses, there may be additional interests that need to be valued and additional people that need to be at the table.

Lots of work, but if done correctly could be an interesting project.

 

[historicplace]

I think I would not be looking to sell my chip in this way.
I may try to work out an arrangement with the authorities whereby I keep my jail standing and as a tourist stop perhaps in exchange for a fee and/or one them there liquor licenses.

if the license can be held under a master LLC type of arrangements I would then, work a deal with an established bar operator for them to operate under that license.

Or if all that is not your cup of tea, I would estimate the economic value of the 10 liquor licenses and the revenue they bring to the town and simply offer to lease them my key property for a mere fraction of that revenue.

I thought about leasing to the town or individual. A business can lease the building & STILL qualify for a liquor license per the criteria. I do not want the headaches of maintenance, taxes, insurance anymore. I've owned it for over 20 years. I think It would make a great haunted house. I had the state come out that governs that, they agree. I feel this is an avenue the town can explore as an attraction. (Not me.) They city purchased/built a parking lot across the street from the jail by the way.

 

[historicplace]

Sounds like you may have four and possibly more values to figure out. First is the "as is" market value of you propery. Second is the salvage value of the material. Third is the projected market value of the vacant land net of any cleanup and possible redevelopment costs. Lastly is for lack of a better word the "blue sky" value to the local government to have up to 10 new establishments able to sell liquor in the community.

Several of these numbers can be established with a little work. The most difficult number to estimate and support will be the potential financial benefit to the local government(s). If Indiana is anything like Michigan and a number of other States in addition to the local governmental unit the Township, County and possibly the State would receive an econmic benefit from any new development as well. Does your community have a DDA or is your business district part of a TIF?

Is there any government owned land in the area that you might be interested in swapping your building for. A swap might be easier on the government than a cash settlement. If multiple entities may benefit from the potential new development based on the 10 licenses, there may be additional interests that need to be valued and additional people that need to be at the table.

Lots of work, but if done correctly could be an interesting project.

I have been exploring swapping for another property. The one I was interested in, the mayor does not want to part with. DDA as in Downtown Development Authority? TIF is what? Thank you!

 

[JTip]

http://www.thecellblock.com/

 

[KHS445]

TIF is tax increment financing. Basically it is where the tax base within an identified area is frozen with all future increases in taxes captured by an entity like a DDA. That entity can then use this revenue for improvements within the identified area.

 

[historicplace]

Your building's market value is what it is based on the comparable sales. Any additional value comes from the value of the development potential that accrues to the City. It will take someone with special expertise to properly value and support their opinion of the development potential. While different it is going to be like trying to value an easement or right-of-way. It would definitely be an interesting assignment and you need to make sure whoever you work with has the necessary knowledge. With the possible money involved don't pick the your appraiser based on price alone.

What questions should I be asking when interview appraisal companies? This is uncharted territory for me.