Water Tower

[Terry L. Hart]

I have been tasked with appraising a water tower for a Florida community. The tower is no longer needed and the community has decided to not renew the ground lease upon which it sits. My thought is that this tower is a Special Use property having no MARKET value. Thoughts?

 

[TerryRohrer]

Having seen grain handling facilities and ethanol plants and fertilizer plants sell for pennies on the dollar invested, to be removed, I would say it is a salvage item. Having watched a number of failed attempts to remove old grain elevators to salvage the lumber (some are still standing decades later, wearing the failed effort like a badge), I would guess your deal has such risk, and such high cost to mitigate that risk, that at some point somebody will have to be paid just to get it on the ground..

 

[Terry L. Hart]

Having seen grain handling facilities and ethanol plants and fertilizer plants sell for pennies on the dollar invested, to be removed, I would say it is a salvage item. Having watched a number of failed attempts to remove old grain elevators to salvage the lumber (some are still standing decades later, wearing the failed effort like a badge), I would guess your deal has such risk, and such high cost to mitigate that risk, that at some point somebody will have to be paid just to get it on the ground..

Good thought and worthy of consideration. Not sure the community will agree but that is my issue to sell. Getting them to agree that there is little if any market value was tough enough.

 

[TerryRohrer]

Removing a water tower typically costs between $40,000 and $350,000+, with most projects averaging in the low-to-mid six figures depending on size, location, and structural complexity. Costs are driven by specialized labor, rigging, and cranes needed for dismantling, often with high mobilization fees, though smaller, simpler structures may cost less.

Edit: Yes, there have been sales of water towers in the United States, often involving the decommissioning of old infrastructure, repurposing for commercial use, or, in rare cases, accidental inclusion in property deals. Examples include a 1910 Cincinnati water tower sold for $15,000 in 2023, and a 2021 incident where a Florida town accidentally sold a water tower for $55,000.

Edit2: Maybe this is your subject: 'Sometimes we make a mistake': Florida town accidentally sells water tower for $55,000'

 

[JTip]

What does the lease say about improvements? Do they revert to the lessor upon termination of the lease?

 

[Terrel L. Shields]

Removing a water tower typically costs between $40,000

Our town removed one for a couple thousand. Unbolted one side and tipped it over, cut it up with metal saws, and took to a metal salvage - 3 cents a pound sold.