Article Contributed on: 12/14/2006 1:26:42 PM
There have been many stories regarding the upcoming ballot for the land swap. Most of the proponents stories are based on self interest or erroneous information. Many include what they call facts. Some are, most are not. In the Dec 14 issue, Mr Sargent refers to the appraisal stating the values of both parcels were equal. When the City asked for an appraisal, they asked for a park land for park land appraisal. Naturally, they got the answer they wanted, they are equal.
As a CPA, we often have to assign values to properties for tax purposes. Typically, we assign 15% of the cost to the land. The million dollar houses scheduled for the existing park land would have an assigned land value of $150,000 per lot, $600,000 per acre or $13,680,000 for the 22.8 acre parcel. The house in the existing gulch (new park area) will sell for $400,000. Their assigned land value would be $60,000 per lot, $360,000 per acre or $8,208,000 for the parcel.
Quite obviously, they are not equal. Basically, your city gave Carma an approximate $5,000,000 windfall. Last November, the city asked for and got approval to accept Open Space Funds. These funds could very easily have been used to purchase the parcel or they could have required an equal trade.
I agree the gulch should probably be desingated park land, however, I cannot support the city's attempt to pander to the developer by giving them an instant $5,000,000 profit. All other arguements aside, this swap doesn't make economic sense and I ask you to join me in voting NO for the swap. Tell the city that you want fair value for your park land and no special treatment for the developer.
Frank L King CPA