April 12, 2011
Alexandra M. Dannis and James G. Dannis
The key conclusion of the Appraisal Report is that the transmission lines would take high-quality view land with a highest and best use of residential development and drive the value of the land down to the lowest residual value. As the report states (p.52) in summarizing the analysis:
“The major conclusion with this analysis is that bisecting a lot with a HVTL [high voltage transmission line] renders it with a highest and best use as ancillary and of similar value as it would add to adjacent or abutting lots. The HVTL revokes the residential highest and best use.” (Emphasis added.)
The parcels subject to the appraisal are representative parcels of our land. Much of the land in Coos County and northern Grafton County also has quality views, and our appraisal results may thus be viewed as a rough proxy for purposes of larger-scale analysis.
To generalize, taking into account the above valuation declines on land crossed by the transmission lines and the estimated declines in value of 25%-35% for adjacent view land, we have calculated that, on average, the transmission lines will reduce the value of the land in the immediate area of the lines by more than $1 million per lineal mile. This does not account for value reductions in view land that is not immediately adjacent to the transmission lines or value reductions for buildings or other improvements.