UTILITY EASEMENTS AND SUBDIVISIONS Prepared for Rapid Fire Case Studies October 31, 2012 Present by Donald A. Fisher, MAI

Survey Question: Do Pipelines and Powerlines have significant affects on adjacent residential properties?

Powerline and Pipeline East of Pinnacle Road along Blackwell Lane & Wickwine Lane, Henrietta

What do you think is the impact of the Powerline on adjacent homes?

Negative Factors

Positive Factors

South Side = $65 per SF average assessment North Side = $69 per SF average assessment +6% increase of average assessments from adjacent residences to houses one lot away from the powerline

Reverse of Golf Course Effect Use as Support for Negative adjustment to residential properties adjacent to Powerlines

Residential Lot & Existing Pipeline Easement

Total Lot Area = Ac. Existing Gas Line Easements = Ac. Crosses Lot in Front of House Original Fee Simple Area = Ac. Assignment: Value Loss from Removal of Trees for New Pipeline

Does Removal of 25% of Trees on Lot Affect Value?

Survey of Residential Lots < 5% Tree-Covered > 5% & < 50% Tree-Covered >50% Tree-Covered

Category Average – Median Range Average $/Ac. Price Median $/Ac. Price Less than 5% Treed $252,315 - $271,258 $57,715$51,493 Less than 50% Treed $236,269 - $240,168 $64,910$63,856 More than 50% Treed $187,257 - $202,938 $47,257$54,848

Reasons for Heavier-Treed Lots to Have Lower Values

Reduced Views More Open Better Lighting Fewer Leaves Less Isolated

Heavily-Treed Lots (Before Value) Showed A Value That Was $15,000 Less Than Partly-Treed Lots (After Value)

Before Value of Lot = $225,000 After Value of Lot = $240,000 Damages to Lot Due to Removal of Trees » = - $15,000

Open Space / Farmland With Existing Pipeline & Powerline & New Pipeline

Highest and Best Use – Before Appraisal EU 1 – Residential Development Land (70 Ac.) EU 2 – Residential Development Land (9 Ac.) EU 3 – Livestock Farm (15.10 Ac.) EU 4 – Residential Development Land (23 Ac.)

Land Area Total Acres Easement Acres Fee Acres EU 1 (U/Ground) 0.82 EU 1 (M&R Station)0.22 EU 1 (High Voltage Electric) 3.37 Total Acres - EU Percentage of Total Acres 100%6%94%

Land Area Segment Acres Retained Rights % Effective Acres EU 1 - Fee Simple (Before) %66.19 EU 1 (U/Ground)0.8225%0.21 EU 1 (M&R Station)0.225%0.01 EU 1 (High Voltage Electric)3.3710%0.34 Totals %66.75 Lost Rights5%

Land Area Segment Acres Retained Rights % Effective Acres EU 1 – Fee Simple (After) %64.04 EU 1 (U/Ground) - Old0.8225%0.21 EU 1 (M&R Station) – Old0.225%0.01 EU 1 (U/Ground) - New1.8225%0.46 EU 1 (M&R Station) – New0.115%0.01 EU 1 (Perm. Access Rd.)- New0.2225%0.06 EU 1 (High Voltage Electric)3.3710%0.34 Totals %65.13 Rights Lost8%

Damages Direct Damages (Land) = $51,000 Indirect Damages = $0 Temp. Esmt. – Construction = $7,000 Temp. Esmt. – Access = $10,500 Cost-to-Cure (Fencing)= $20,000 Total Damages = $88,500

Alternative Valuation (from Owner’s 2-pg appraisal) Estate $250,000 each (Gross Sum; No Expenses or Discount) Damages Loss of 1 $250,000 2 Lots 50% $125,000 Each Total Damages = $500,000

New Subdivision & Pipeline

#AcresComments Pipeline easement Pipeline easement Pipeline easement Pipeline easement Pipeline easement Drainage easement acre drainage easement Drainage & pipeline easements Pipeline easement Minimal pipeline easement No easements No easements No easements No easements No easements Drainage easement Totals

Damages Direct Damages (Land) = $0 Indirect Damages = $0 Temp. Esmts. – Construction = $26,000 Cost-to-Cure (Re-drafting plans) = $10,000 Cost-to-Cure (Timber) = $5,000 (comment) Total Damages = $41,000

Survey Question: Do Pipelines and Powerlines have significant affects on adjacent residential properties?

QUESTIONS?