Monday, May 11, 2009

The value of the Richmond Glen / Serenity Ranch easement

I'm not a real estate expert. But I am wondering about the fair market value of this $10 easement.

The proposed development is slated for 41 units @ $500,000 each.* And the PZC minutes suggest that a non-age-restricted development would be able to fit 17 houses (15-20 was the range). So if you look at the additional units - 24 - and multiply by the sales price - $500,000 - you get an additional $12,000,000 in revenue.

Now I'll just guess a developer makes an 8% margin.

That'd be a million dollars in profit.

So is the easement worth $10?


Something else?

I'm guessing the easement is worth something more than $70,000. But the Budget Committee Chairman refused to discuss the issue. I wonder why?

Tim White

* The attorney said they would generate property taxes of $9,000 to $10,000 each. That would be $500,000 x 70% x .02605 mills.


Anonymous said...

Instead of calling the Budget Committee Chairman for answers, you would be better off calling 867-5309, 867-5309, 867-5309!


Anonymous said...

" The attorney said they would generate property taxes of $9,000 to $10,000 each. That would be $500,000 x 70% x .02605 mills."

$500,000? Ha, Ha, Ha what a joke. Syonegate sells for about that and the units are separte not all connected.

Why all of a sudden is Brodach going to build $500,000 units when he been builting what he calls luxury units units for $330,000 and he'll have trouble selling all he already has for anything near $300,000 in this dead market. The $500,000 figure is simply bull which would change to somewhere near $300,000 or less. Remember, we are in a recession and it costs a hell of a lot less to build a house today, all building supplies cost much less , including labor.

This should definitely go back to P&Z and Inland Wetlands as there would be close to 50% more people and the impervious surfaces, roofs, parking and road. The added runoff into the steam will greatly increase the pollutants that will go downstream.

As for the town getting $10, this is absurd and is far from a market price. I think it should be auctioned off and if Brodach isn't the winning bidder, he could buy it from the new owner.

Allowing 41 high density unit would decrease the livability of the surrounding area. Let's keep Cheshire green instead of overpopulated.

Robert DeVylder Jr. said...

Only 1 person can use the land and that is a developer. It is only 20 feet wide so it cannot be developed. When the development was originally built, this piece of land was set aside for a road/utility connector. It has no value. This road is to allow secondary access by emergency vehicles if the primary route is blocked (i.e. an ambulance can get into the development if a firetruck has its hose deployed across the road). The residents in the area also benifit as emergency vehicle will have an alternate route of approach.

If you want to see what this access way will look like, go to North Pond road. They have an access that attached to Allen Ct and signage that attests to that.

It's pretty cut and dry looking at the P&Z documents that Tim posted online. It does not matter what other developments are selling for or what other people have done. If they want to build and sell property for a billion dollars, thats fine. The town still owns a piece of land that has no value for anything other than a closed emergency access.

Anonymous said...

Mr. DeVylder is correct about the land being meant only for an access road.
The real problem is the P & Z allowing this development to get this far.
Just wondering what they were thinking???

Anonymous said...

RD is missing some points - -"The town still owns a piece of land that has no value for anything other than a closed emergency access."

It would seem that access to the town's sewer system has to go through land which RD deemed of no value. In fact this piece of land if used for a sewer line will help to line the pockets of anyone associated with future development from individuals clearing the land in the beginning to local oil men delivering heating oil or furnace service etc.

And let's not forget the legions of real estate specialists which will include local lawyers doing closings and reviewing lot descriptions. Without access to that land they will not profit from it. Access to the land is worth way more than $10.

tim white said...

Access to the land is worth way more than $10.Not anymore since the majority shuffled this through at midnight a year ago under the bogus auspices of an "executive session." To which the Town Atty made clear that there was only one reason why the nature of that bogus executive session should not be discussed - POLITICS.

tim white said...

I'm not sure which Council motto was being used last night. It could have been this one or this one.

Anonymous said...

Clearly the land in question is worth more than $10. Unfortunately its value will be realized by a few choice individuals instead of local voters and current local tax payers.

The deal does not pass the smell test.