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To: jim_trent
What the property could be sold for today is the present value.

Boy, I really blew it. I am building a new home and purchased a residential lot last October for $85,000. The few months before my purchase the property was appraised at $15,000 because no sewer lines were available to service the residential lots and they could not accommodate a septic system because the sole conditions. The homeowners, applied to the township for a special assessment district to install sewer lines at the homeowners expense. Once the township approved the special assessment district the lots immediately increased in value from the 15,000 number to the $85,000 number.

I should have asked the township to deny the special assessment district and condemn the lots (paying the present value of course) and sell them to me to build a large house on an increase the township's taxes. I'm sure I could have accomplished this for a few thousand dollars in campaign contributions, dinners, and a trip or two to Las Vegas for preoject study purposes, etc. The original owners would have no legitimate complaint because they were compensated fair market value under the existing conditions and I have a large windfall for this immediately increased tax dollars. Everyone's happy.

It's too bad I didn't think this sooner. Silly me, I paid the homeowners what the property was worth.

That is a problem with this case. The city knew it intended to re-zone the property for industrial use. This would increase the property value substantially. The city chose not to give this increase to the owner of the property but to pass it on to the Corporation.

147 posted on 06/24/2005 11:05:52 AM PDT by CharacterCounts
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To: CharacterCounts

You sound like you have the makings of a great developer. Get out their and start making money.


165 posted on 06/24/2005 3:54:23 PM PDT by jim_trent
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