Public Parks and Recreation Lands

[Terry L. Hart]

I have an opportunity to provide a valuation on an 80 acre parcel of the above. It is being conveyed from a City to a County. Within this conveyance is a reversion clause stating the land must remain a public park or it will revert back to city. Furthermore, the park is located in a suburban area of the City and is surrounded by residential subdivisions and commercial along the frontage major corridors.

My questions for you are:

What is your opinion of HBU?​

Is there an actual market for such property by which to estimate value?​

How would you approach this appraisal problem?​

​

Thanking you in advance for your opinions.​

Terry​

 

[Larry Phillips]

I have an opportunity to provide a valuation on an 80 acre parcel of the above. It is being conveyed from a City to a County. Within this conveyance is a reversion clause stating the land must remain a public park or it will revert back to city. Furthermore, the park is located in a suburban area of the City and is surrounded by residential subdivisions and commercial along the frontage major corridors.

My questions for you are:
What is your opinion of HBU?Is there an actual market for such property by which to estimate value?How would you approach this appraisal problem?Thanking you in advance for your opinions.

Good morning,
H & B Use is legally restricted.
This sale proves that there is a market for such properties. Your search area and time frame will differ from typical appraisals. In the valuation process, I start with writing the H & B Use analysis. My search is then tailored to my conclusion of H & B Use properties. It may be helpful to look at land subject to Conservation Easement, with similar use permitted. Sales from Conservation groups to State or Federal end users may be helpful.

 

[J Grant]

I have an opportunity to provide a valuation on an 80 acre parcel of the above. It is being conveyed from a City to a County. Within this conveyance is a reversion clause stating the land must remain a public park or it will revert back to city. Furthermore, the park is located in a suburban area of the City and is surrounded by residential subdivisions and commercial along the frontage major corridors.

My questions for you are:

What is your opinion of HBU?​

Is there an actual market for such property by which to estimate value?​

How would you approach this appraisal problem?​

​

Thanking you in advance for your opinions.​

Terry​

What is the assignment condition - to value it as if it were not public land with an HC, or to value it as a park/restricted from building on its land?

If the assignment is valued as a park that can not be developed, then it does not trade at normal HBU market value but can have value for its appeal and how it boosts surrounding some prices since people like open spaces and parks and will pay more to live near it in many cases. It is a benefit to a town that increases quality of life and can draw people to an area and then the businesses that service them.

 

[Red Flint]

My questions for you are:

What is your opinion of HBU?​

Is there an actual market for such property by which to estimate value?​

How would you approach this appraisal problem?​

​

H&BU Public parkland.
Unlikely to find similar sales, but always check throughout state. Likely to have to enlarge market to those properties without development rights like conservation easement land and floodway land. Consider rail-trail purchases, and federal state or local purchases for parkland.
Public work, so be prepared for appraisal to become accessible to public.

 

[Tom D]

I'm so confused. The city wants to be paid for it. Why would it be any value to be county added as an already there park, who now will have maintenance costs added to everyone's tax bills. It's already sitting there, free of charge, for the County's free use of. Personally i think it's a negative value to the county because of the new added maintenance costs to the county budget.

Hey, that free city park that's been there for us to enjoy freely is now going to cost us, the county, to maintain it. But, i'm a big urban ghetto appraiser, what do i know. I'm thinking more tax payer here.

 

[Terrel L. Shields]

What is your opinion of HBU?

Recreation and park

Is there an actual market for such property by which to estimate value?

Use the "Yellow Book" definition and the book as a guide - get a copy before you proceed

Uniform Appraisal Standards for Federal Land Acquisitions

www.appraisalfoundation.org

How would you approach this appraisal problem?

Sales of other comparable tracts available in an open market - transfers to the Nature Conservancy would be good comps. Other comps might be to land trusts or municipalities. There are sales in the watershed of city water supplies that are intended to stop development above the reservoir.

 

[Terrel L. Shields]

Unlikely to find similar sales

I suppose but in Michigan? I'd think there would be a lot of sales to Nature Conservancy and or maybe hunting clubs, etc.

I did a 400 acre parcel a couple years ago and the estate owning it sold to the local city in a split where the city created a water park across the state line adjacent to the property and then created a nature park partially using a grant from the Walton family.

We've had a number of sales to the Nature Conservancy plus some sales to expand the boundary of the Pea Ridge Battlefield National Park. Basically, they all seem to pay the same as if the land was sold to an open public. I had probably 6 sales in the county within 3 years and I certainly would not hesitate to use sales even older than 3 years for unique properties.

 

[J Grant]

What is the purpose of the appraisal?

Tax, or reimburse the city for the value of the land, why is it ordered?

 

[Mark K]

What is the HBU today? Is it zoned for parks only? If not, a lot of park land can be agricultural, recreational, commercial or residential development, etc. What they are going to do in the future with it has no bearing on the current HBU. Again, the potential future reversion clause means nothing today. Don't overthink it. OTOH, if its currently a park, that's a different story.

Odds are the client wants the appraisal for accounting purposes, possibly for some type of grant, matching funds based on the appraisal, etc., very likely no money will change hands. I've seen and appraised a few of these inter-municipality transfers.