Public Parks and Recreation Lands

[Terry L. Hart]

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.

It is not a sale, it is a conveyance from one government to another. Search area has been conducted for similar properties throughout the state and none were found. Thank you for your advice.

 

[Larry Phillips]

It is not a sale, it is a conveyance from one government to another. Search area has been conducted for similar properties throughout the state and none were found. Thank you for your advice.

Thank you for your reply. A search must be tailored to the property type. I suggest studying https://www.michigan.gov/mdard/environment/conservation website. Contact some of the Michigan Conservation Districts and discuss the appraisal. These agencies accept, buy, transfer, and sometimes sell conserved land. It is really an interesting appraisal problem, and you get to contribute to conservation efforts in a small way. It is not for everyone. Enjoy your Christmas Holiday.

 

[Terrel L. Shields]

It is not a sale, it is a conveyance from one government to another. Search area has been conducted for similar properties throughout the state and none were found. Thank you for your advice.

Just use the MV defined in the Yellow Book and treat it as a market transaction. Don't get bogged down in semantics of whether a government owned property has no value just because the government owns it. They want to know what it is worth if it were to sell on an open market.

 

[Larry Phillips]

This is my last reply on this one. Highest and Best Use is a four part study of possible uses of a property. If a property is restricted to any use, that use will set the property type being researched. This may be true for any of the four tests. You may think of it as a wooden stave barrel filled with liquid. With four staves noted as Legally Permissible, Physically Possible, Financially Feasible, and Maximally Productive. In this case it appears that the Legally Permissible use is the shortest stave, or limiting factor. The maximum amount of liquid that may be held is restricted by its shortest stave. In this instance the property can be used for Public Park.
Use as a commercial property, residential property, or other use - is legally prohibited.
Going for the same old definition of Market Value will yield an incorrect result. Best regards

 

[Mark K]

One question remains unclear...Is it currently a park and does the current zoning allow only for parks?

I've seen and appraised quite a few municipal transfers: State <--> County, County <---> City/Town, FAA (local large airport) ---> Town.

The only instance where any money changed hands was the airport to the local Town. 1,700 acres of which approx. 50% is developable sold to the local town for $1,000/acre, about a 95% reduction from MV at the time. The others only wanted an appraisal for accounting purposes.

In this area, land selling for park use sells for about the same as flood plain ground. Generally, one of the few uses available for flood ground is park land. I don't see why this wouldn't be a reasonable comp.