Annex 17 Realestatep
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Annex 17 Real Esate Property Value Imapact Study A REAL ESTATE PROPERTY VALUE IMPACT STUDY OF THE PROPOSED GLACIER SANDS WIND FARM MASON COUNTY, ILLINOIS Prepared for Swift Current Energy Prepared by POLETTI AND ASSOCIATES, INC. 302 West Clay Street Suite 100 Collinsville, Illinois 618/344-3270 July, 2019 1 TABLE OF CONTENTS Executive Summary .................................................... 1 Introduction ......................................................... 2 Location ............................................................. 2 Scope and Methodology of the Report .................................. 3 Assumptions and Limiting Conditions .................................. 5 General Limiting Conditions .......................................... 6 Purpose .............................................................. 6 Review of Literature ................................................. 7 Description of the Proposed Glacier Sands Wind Farm ................. 11 Physical Characteristics of the Subject Area ........................ 11 Economic and Social Data of Subject Area ............................ 13 Impact on the Value of the Surrounding Properties ................... 19 Twin Groves Wind Farm, McLean County, Illinois .................... 20 All Sales Within Target and Control Areas ...................... 23 Sales Constructed Post 1959 .................................... 30 Conclusion of Twin Groves Data Analysis ........................ 33 Mendota Hills Wind Farm, Lee County, Illinois ..................... 34 Analysis of Mendota Hills Sales (2005-2009) .................... 37 Case Study: 965 Bingham Road ................................... 48 Case Study: Meadow Brook Subdivision (Mendota, IL) ............ 56 Conclusion of Mendota Hills Data ............................... 58 Summary and Conclusion .............................................. 59 Certificate of Appraisal ............................................ 61 Bibliography ........................................................ 63 ------- Appendices Listing of Residential Sales Target and Control Area, McLean County, Illinois 2015-2017 ................................... I Mendota Hills Area Residential Sales; Jan., 2005-March, 2009 ...... II Assumptions and Limiting Conditions .............................. III Resume of Peter J. Poletti ........................................ IV 2 EXECUTIVE SUMMARY Poletti and Associates, Inc. conducted a Real Estate Property Value Impact Study of the proposed Glacier Sands Wind Farm ["Facility"] for the purpose of determining its compliance with the applicable standards of Mason County. More specifically, the purpose of this report is to determine whether the proposed Wind Farm is so located as to not have a statistically measurable effect on the value of the surrounding properties. When a land use is proposed that is dependent upon a regulatory approval, such as in the case of the subject, it is important to consider its impact on the use, marketability, and value of other property in the vicinity. An analysis of this type is appropriate when addressing the standards of Mason County. A review was conducted of the subject property, existing land uses in the surrounding area, and plans for the proposed wind energy center. In addition, we have conducted detailed studies to assess the impacts on surrounding property values, if any, associated with two operating wind farms constructed in similar north-central Illinois agricultural areas: the Twin Groves Wind Farm, Phases I and II, in McLean County, Illinois, and the Mendota Hills Wind Farm in Lee County, Illinois. These studies included statistical analyses of sales transactions of agricultural properties, residential tract acreage, and improved residential properties in a Target Area and a Control Area around each of the operating wind farms. In addition, comparable sales analysis (also called “paired sales analysis”) was performed for specific properties in close proximity to each of the operating wind farms. Finally, observations were made of continuing residential development after construction of the Mendota Hills wind farm. Each of these studies identified no observable impact of the operating wind farm on surrounding property values. This finding also is consistent with published literature. Therefore, after reviewing the available data, it is my opinion that as of July 25, 2019 the proposed Glacier Sands Wind Farm is so located as to not have a statistically measurable effect on the value of the surrounding properties. The details of the analysis and the factors considered in reaching this conclusion are found on the following pages. 1 INTRODUCTION This report provides an evaluation of the proposed Glacier Sands Wind Farm for the purpose of determining if the proposed special use will be so located as to not have a statistically measurable effect on the value of the surrounding properties. The Glacier Sands project is located entirely within Mason County. LOCATION The proposed wind energy farm will be located within Mason City, Salt Greek, Pennsylvania, and Allens Grove townships in Mason County. The Facility is generally located southeast of the unincorporated community of Teheran, south of U.S. Highway 136, west and southwest of San Jose, and north of the Mason County Line. 2 SCOPE AND METHODOLGY OF THE REPORT The purpose of this report is to determine if the proposed Glacier Sands Wind Farm is so located as to not have a statistically measurable effect on the value of the surrounding properties. To accomplish this purpose, a number of steps were undertaken. A review was made of published literature concerning the effect of wind generated electric facilities on surrounding property values. Plans for the proposed Glacier Sands Wind Farm were reviewed. Representatives of Swift Current Energy were interviewed concerning design and operating specifics. Peter J. Poletti inspected the subject project area as well as land uses within that area. Information employed in this report was gathered from a variety of sources. The records of the sale transactions for McLean County and for Lee County were reviewed for sales transactions surrounding operating wind generating sites. This record included the size of tract and the style, age, and size of the improvements. It should also be noted that under the current Uniform Standards of Professional Appraisal Practice [USPAP], the former category of Consulting Report (Standards 4 and 5) has been eliminated. This report is considered an appraisal with special conditions. It is noted that no value is being assigned to a specific property or group of properties. The methodology employed in this report is based upon accepted practices of the real estate appraisal profession. This methodology consisted of two basic quantitative analysis techniques: (1) a comparison of the average selling price of a property type in a Target Area compared to the average selling price of similar properties in a Control Area; and (2) a matched pair sales analysis using specific properties and making adjustments for specific differences between the properties. These techniques are employed by appraisers when estimating the percent or dollar adjustments that are necessary for valuing properties. In using the above techniques, the Target Area is defined as a zone in proximity to an operating wind farm and is defined by a combination of distance, intervening land uses, and visibility of the facility. In contrast, The Control Area is defined a region outside of the Target Area that is considered to be similar to the Target Area but outside the immediate influence of the operating wind farm. The first technique uses the average selling price of various property types as a comparison. Since it employs statistical analysis, this technique is considered the more exact approach. In this technique, if the wind farm were affecting values, there would be a statistically measurable difference between values in the target area and those in the control area. For the analysis, the operating hypothesis assumes that there is a measurable difference between values in the target area and those in the control area. The comparison is the test of this hypothesis. If the analysis of the 3 data reveals no statistically significant difference between the two areas, the operating hypothesis is rejected and it is concluded that there is no measurable difference in prices between the Target and Control area. The second technique uses matched pair analysis commonly used by appraiser when valuing individual properties. This technique can also be used to estimate the amount that certain characteristics (ie a garage, basement, fireplace, etc.) add in value to a property. This procedure can also be used to measure other effects on properties located off of the property site, as in this instance, a wind farm. In this technique, individual properties are adjusted for significant differences, and any remaining difference between properties in the Target Area and those in the Control Area are attributable to the outside influence, or in this case, the wind farm. Finally, observations also were made of continued residential development in proximity to the Mendota Hills Wind Farm in Lee County after construction. 4 ASSUMPTIONS AND LIMITING CONDITIONS 1. The appraiser did not make a boundary survey of the property; therefore, no responsibility is assumed in connection with such matters. Sketches in this report are included only to assist the reader in visualizing the property. 2. No responsibility