right of way x 2 = no use of land?

[Frank Bertrand]

asked to perform an land appraisal on a parcel with state highway frontage (ultimate right of way 25' from CL of Highway.) parcel depth is 44' that tapers up to 160'. Rear of parcel abuts Conrail track that has a 66' r/o/w from track.

problem is that the combined r/o/w joins together to prohibit use of anything and perhaps leaves the land's highest and best use keeping the earth together. (as one colleague joked).
parcel is about 245' in length. zoning not a factor (commercial/industrial) current use is brush growing.
suggestions?

 

[George Hatch]

There is right-of-way and then there is no-man's-land. The portion of the lot that is in the R/O/W might still be usable for some purposes, just not for structural improvements. Like outside storage, ag, livestock, selling used cars or farm equipment, billboard, etc. On the other hand, if the R/O/W effectively denies any use of those areas, then you won't even have those options to consider. I've appraised a couple properties where the ROW was leased out under a ground lease or a monthly rental basis back to the property owner, only with some restrictions as to improvements and uses.

The parcel might also be donation-bait or assemblage-bait. It seems that there are some options to consider. I guess how you pursue this depends on who your client is and why they want the appraisal.


George Hatch

 

[xmrdfghap]

State laws vary, but in many jurisdictions when the remainder has no economic value, then the condemning agency is required, by law, to take the whole. This may be such a case.

If the whole is not taken, and there is no economic use for the remainder, then the property has a negative value (maint costs plus taxes to an infinite future).