Split parcel between 2 counties with different zoning.

[CrkrJack]

Assignment is for a SFR on a 0.45 acre parcel. The parcel is split in half between two counties. The first half (0.25 acres) has the improvements (house and garage) and zoned SFR, while the 2nd half (0.20 acres) is vacant and zoned heavy commercial. The purpose of the report is for a bank pre-foreclosure. I’m having an issue with how to approach this assignment. My initial though is to check with the county that has the land zoned heavy industrial to see if SFR is permissible – possibly legal non-confirming. I could simply identify the land as surplus, legal non-conforming use and appraise the entire property as SFR. If that is not the case, then it would be identified as excess land and valued seperately.

In either case, it looks like I may have an extensive Highest and Best Use analysis to complete.
Am I on the right track? Or am I missing something?

 

[DaveH]

HBU is the first consideration, I have had a similar situation where a property was in 2 different states. Luckily for me the zoning was similar enough, and it was mostly agricultural in nature. Be very specific in your commentary, and take your time. Spell out everything, so the reader understands exactly the situation and the analysis/reconciliation preformed. Hope you got more than $300 for this one...

Dave

 

[Vermonter]

Understand it's in two counties, but find it odd that there would be such a difference in zoning on such a small parcel. Obviously zoning definitions differ from place to place (not sure what "heavy commercial" means), but there's usually some transition zone between residential and commercial where either is allowed.

 

[The Warrior Monk]

Assignment is for a SFR on a 0.45 acre parcel. The parcel is split in half between two counties. The first half (0.25 acres) has the improvements (house and garage) and zoned SFR, while the 2nd half (0.20 acres) is vacant and zoned heavy commercial. The purpose of the report is for a bank pre-foreclosure. I’m having an issue with how to approach this assignment. My initial though is to check with the county that has the land zoned heavy industrial to see if SFR is permissible – possibly legal non-confirming.

Single-family residential is rarely permitted in an industrial zone, unless it is preexisting.

I could simply identify the land as surplus, legal non-conforming use and appraise the entire property as SFR. If that is not the case, then it would be identified as excess land and valued seperately.In either case, it looks like I may have an extensive Highest and Best Use analysis to complete.

Am I on the right track? Or am I missing something?

The long and short of this is that it is not a simple assignment. At a minimum, I would recommend checking with the planning department of both counties and discussing the situation with each, since both entities would be involved in any future use of the property. The highest and best use of the property might not be its current use.

Is the client aware that the property is mixed zoned? If not, I would recommend calling them to discuss the matter.

 

[Michigan CG]

Do both parcels have road frontage?

 

[Walter Kirk]

I don't think that you have one parcel located in two counties. I think that you have two parcels conveyed on one deed and encumbered by one mortgage.

 

[The Warrior Monk]

I don't think that you have one parcel located in two counties. I think that you have two parcels conveyed on one deed and encumbered by one mortgage.

It common in many areas that properties are identified by more than one parcel if the property is located in different administrative divisions, which appears to be the case here. The are typically not treated as single-and-separate for the purpose of building.

 

[KHS445]

When completing the H&B for the heavy commercial parcel be sure to check setbacks, buffer requirements, access, parking location, maximum lot coverage, landscaping requirements, etc.

In my area there is a commercial/industrial zoned park that is owned by the City. Because of the way several of the streets are laid out (forming a triangle shaped lot) and all the setback, landscaping and parking lot location requirements a nearly 3 acre site is unbuildable.

 

[CrkrJack]

Do both parcels have road frontage?

Yes - the parcel is a corner lot. Ironically each county has its own address for the lot.

Single-family residential is rarely permitted in an industrial zone, unless it is preexisting.



The long and short of this is that it is not a simple assignment. At a minimum, I would recommend checking with the planning department of both counties and discussing the situation with each, since both entities would be involved in any future use of the property. The highest and best use of the property might not be its current use.

Is the client aware that the property is mixed zoned? If not, I would recommend calling them to discuss the matter.

The client is aware, however am working through an AMC which has been no help.

I was successful in reaching the planning dept of one of the counties in which they indicated their portion of the parcel is commercial (heavy industrial) with no other permissible use. I have not been successful in reaching the planning dept of the second county. I happened to drive by the property and it appears the residence are using the property as a business and residence. They have commercial equipment in the rear yard (the portion of the land zoned commercial), which also has its own drive. They also have a large parking slab in front of the dwelling as if being used by employees or customers but there was no visible commercial sign in the front. However, they also have kids play equipment and a pool. The property is located in an area in which many SFR have been converted into commercial use.

To clarify, the legal description DOES describe the parcel being in both counties.

 

[The Warrior Monk]

I was successful in reaching the planning dept of one of the counties in which they indicated their portion of the parcel is commercial (heavy industrial) with no other permissible use.

Since the property is mixed zoned, it's often not that straightforward. The possible uses of the property could include an industrial use for the property, a residential use (apartments, etc.), and anything in between. Variances are typically required.