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A Pipeline Spill Revisited: How Long Do Impacts on Home Prices Last? by Richard J The Appraisal WINTER 2018 Journal Volume LXXXVI, Number 1 F A Pipeline Spill Revisited: How Long Do Impacts on Home Prices Last? by Richard J. Roddewig, MAI, Charles T. Brigden, and Anne S. Baxendale PAGE 23 Environmental Risk Premiums and Price Effects in Commercial Real Estate Transactions by Thomas O. Jackson, PhD, MAI, and Chris Yost-Bremm, PhD PAGE 48 How to Interpret Regression Coefficients and Calculate Adjustments for Differences in Property Productivity Features by A. Ason Okoruwa, PhD, MAI, AI-GRS PAGE 68 Contents The Appraisal Journal | Winter 2018 | Volume LXXXVI, Number 1 ii Mission Statement iv Profile: The Appraisal Institute’s 2018 President v A Message from the Editor-in-Chief vi Annual Conference Announcement COLUMNS & DEPARTMENTS 1 Cases in Brief Recent Court Decisions on Real Estate and Valuation by Scott B. Mueller, JD 12 Law and the Appraiser Analyzing Easement Laws and Cases in the States East of the Mississippi River by Adam Leitman Bailey, JD, and Israel Katz 85 Letters to the Editor 91 Directory of 2017 New Designees PEER-REVIEWED ARTICLES 23 A Pipeline Spill Revisited: How Long Do Impacts on Home Prices Last? by Richard J. Roddewig, MAI, Charles T. Brigden, and Anne S. Baxendale 48 Environmental Risk Premiums and Price Effects in Commercial Real Estate Transactions by Thomas O. Jackson, PhD, MAI, and Chris Yost-Bremm, PhD 68 How to Interpret Regression Coefficients and Calculate Adjustments for Differences in Property Productivity Features by A. Ason Okoruwa, PhD, MAI, AI-GRS ANNOUNCEMENTS 96 Article Topics in Need of Authors 97 Manuscript Guide 98 Appraisal Journal Order Form COVER PHOTO: Pepco oil spill cleanup, June 8, 2000. www.appraisalinstitute.org Winter 2018 • The Appraisal Journal i The Appraisal Journal Published by the Appraisal Institute James L. Murrett, MAI, SRA, President Stephen S. Wagner, MAI, SRA, AI-GRS, President-Elect Jefferson L. Sherman, MAI, AI-GRS, Vice President Jim Amorin, MAI, SRA, AI-GRS, Immediate Past President and Acting CEO Stephen T. Crosson, MAI, SRA, Editor-in-Chief Ken Chitester, APR, Director of Communications Nancy K. Bannon, Managing Editor Justin Richards, Senior Communications Coordinator The Appraisal Journal (ISSN 0003-7087) is published quarterly (Winter, Spring, Summer, and Fall). © 2018 by the Appraisal Institute, an Illinois Not-for-Profit Corporation at 200 W. Madison, Suite 1500, Chicago, Illinois 60606. www.appraisalinstitute.org. All rights reserved. No part of this publication may be reproduced, modified, rewritten, or distributed, electronically or by any other means, without the expressed written permission of the Appraisal Institute. Periodical postage paid at Chicago, Illinois, and at additional mailing offices. Annual Subscription Rates: Domestic—$48 standard rate, $100 library rate, $38 AI rate, $20 student rate, $25 single copy. International—$95 standard rate, $145 library rate, $65 student rate. Telephone orders: 312-335-4437. Online orders: http://www.appraisalinstitute.org/store/periodicals/the-appraisal-journal/ Postmaster: Send address changes to Order Fulfillment Department, The Appraisal Journal, 200 W. Madison, Suite 1500, Chicago, Illinois 60606. Allow six weeks for changes. To opt out of print copy delivery, email [email protected] Design and production services provided by Grayton Integrated Publishing. www.graytonpub.com Mission Statement: The Appraisal Journal is published to provide a peer-reviewed forum for information and ideas on the practice and theory of valuation and analyses of real estate and related interests. The Appraisal Journal presents ideas, concepts, and possible appraisal and analytical techniques to be considered; some articles are for the development and expansion of appraisal theory while others are useful in the evolution of practice. Disclaimer: The materials presented in this publication represent the opinions and views of the authors. Although these materials may have been reviewed by members of the Appraisal Institute, the views and opinions expressed herein are not endorsed or approved by the Appraisal Institute as policy unless adopted by the Board of Directors pursuant to the Bylaws of the Appraisal Institute. While substantial care has been taken to provide accurate and current data and information, the Appraisal Institute does not warrant the accuracy or timeliness of the data and information contained herein. Further, any principles and conclusions presented in this publication are subject to court decisions and to local, state, and federal laws and regulations and any revisions of such laws and regulations. This publication is for educational and informational purposes only with the understanding that the Appraisal Institute is not engaged in rendering legal, accounting, or other professional advice or services. Nothing in these materials is to be construed as the offering of such advice or services. If expert advice or services are required, readers are responsible for obtaining such advice or services from appropriate professionals. Nondiscrimination Policy: Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state, and local laws. The Appraisal Institute advances professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. ii The Appraisal Journal • Winter 2018 www.appraisalinstitute.org The Appraisal Journal Editorial Board Stephen T. Crosson, MAI, SRA,* Chair, Dallas, Texas Joseph F. Consoli, MAI, Baltimore, Maryland Karl P. Finkelstein, MAI, Mt. Pleasant, South Carolina Julie Friess, SRA, Sedona, Arizona Walter E. Gardiner, SRA, AI-RRS, Hammond, Louisiana James H. Martin, MAI, Mt. Pleasant, South Carolina Heather M. Placer, MAI, SRA, Midlothian, Virginia Stephen D. Roach, MAI, SRA, AI-GRS, San Diego, California Larry T. Wright, MAI, SRA, AI-GRS, Houston, Texas The Appraisal Journal Review Panel Gregory J. Accetta, MAI, AI-GRS, Providence, Rhode Island Melanie Sieger, MAI, AI-GRS, Chevy Chase, Maryland Anthony C. Barna, MAI, SRA, Pittsburgh, Pennsylvania Dan L. Swango, PhD, MAI, SRA, Tucson, Arizona C. Kevin Bokoske, MAI, AI-GRS, AI-RRS, Ft. Lauderdale, Florida James D. Vernor, PhD, MAI, Atlanta, Georgia Robert C. Clark, MAI, Chevy Chase, Maryland George Dell, MAI, SRA,* San Diego, California The Appraisal Journal Academic Review Panel Larry O. Dybvig, MAI, Vancouver, British Columbia Tim Allen, PhD, Florida Gulf Coast University Timothy A. Eisenbraun, MAI, SRA, Southfield, Michigan Peter F. Colwell, PhD, University of Illinois Stephen F. Fanning, MAI, AI-GRS,* Denton, Texas François Des Rosiers, PhD, Laval University Kenneth G. Foltz, MAI, SRA, Wilmington, North Carolina Donald R. Epley, PhD, MAI, SRA, University of South Alabama Jack P. Friedman, PhD, MAI, SRA, Chicago, Illinois Jeffrey D. Fisher, PhD, Indiana University Brian L. Goodheim, MAI, SRA, Boulder, Colorado Terry V. Grissom, PhD,* University of Missouri–Kansas City Robert M. Greene, PhD, MAI, SRA, AI-GRS, Olympia, Washington Thomas W. Hamilton, PhD, MAI,* Roosevelt University Thomas O. Jackson, PhD, MAI,* College Station, Texas William G. Hardin III, PhD, Florida International University John A. Kilpatrick, PhD, MAI, Seattle, Washington Mark Lee Levine, PhD, JD, MAI, University of Denver Douglas M. Laney, MAI, Tucson, Arizona Kenneth M. Lusht, PhD, MAI, SRA,* Florida Gulf Coast University, Calvin M. Lassere, MAI, Atlanta, Georgia Penn State University David C. Lennhoff, MAI, SRA, AI-GRS, Darnestown, Maryland Barrett A. Slade, PhD, MAI, Brigham Young University Mark R. Linné, MAI, SRA, AI-GRS, Lakewood, Colorado Brent C Smith, PhD, Virginia Commonwealth University Dan P. Mueller, MAI, St. Paul, Minnesota Mark A. Sunderman, PhD, University of Memphis Nathan Pomerantz, MAI, Rehovot, Israel Grant I. Thrall, PhD, University of Florida Rudy R. Robinson III, MAI, Austin, Texas Alan Tidwell, PhD, Columbus State University Dennis P. Ryan, PhD, MAI, New York, New York H. Shelton Weeks, PhD, Florida Gulf Coast University David J. Sangree, MAI, Cleveland, Ohio John E. Williams, PhD, Morehouse College John A. Schwartz, MAI, Aurora, Colorado Elaine M. Worzala, PhD, College of Charleston *Statistics Work Group member www.appraisalinstitute.org Winter 2018 • The Appraisal Journal iii Profile About the Appraisal Institute’s 2018 President James L. Murrett, MAI, SRA James L. Murrett, MAI, SRA, of Hamburg, New York, is the 2018 president of the Appraisal Insti- tute. He will serve as immediate past president in 2019. He serves this year as chair of the organiza- tion’s Executive Committee and chairs its policy- setting Board of Directors. Murrett has served on the Appraisal Institute’s national Board of Directors and Strategic Plan- ning Committee and as chair of the Finance Committee, in addition to many chapter roles, including as president of the Upstate New York Chapter. He also has been treasurer and a member of the Board of Directors of the International Center for Valuation Certification, an affiliate of the Appraisal Institute. He received the 2014 Appraisal Institute Edward W. Adams, SRA, Outstanding Board Service Award and the 2008 President’s Award, which is presented by the Upstate New York Chapter of the Appraisal Institute for ongoing commit- ment, dedication, and service to the chapter and the profession. Murrett received a bachelor’s degree in business management from Walsh University, in Canton, Ohio.
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