12/8/2009 6:00:00 AM
Pricey land purchase on hold
Supervisors balk at paying $1.3M for 30 acres
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KINGMAN - The Board of Supervisors postponed purchasing around 30 acres near the Grace Neal Parkway after two residents questioned the $1.3 million price tag during Monday's Board meeting.
The land would be used to complete a drainage channel along Grace Neal Parkway that would prevent the street and surrounding areas from flooding in a significant rain.
"I sell real state and paid thousands in property taxes in Kingman last year. I'm offended that you guys are going to use my tax dollars to purchase this," said Justin Chambers, a local real estate agent. "There is very little land in Mohave County right now that would sell for $45,000 an acre."
The highest recent sale Chambers found was for $20,000 an acre in March 2008. Since that time, property values have decreased, he said. However, the county has assessed some property in the area at $13,000 an acre. Many feel that property taxes in the county are inflated.
"There's a huge difference from $13,000 and $45,000 an acre for this inflated appraisal," Chambers said. "I would like to see the appraisal on this."
He also pointed out that in May 2007 the county had told developers along Grace Neal Parkway they would pay for improvements to the roadway and the drainage channel.
The County Assessor has the four properties assessed at between $1,000 and $2,000 an acre.
A lot of people out there are concerned about the county paying $45,000 an acre, said Bill Abbott, speaking as a resident. Abbott also serves on the County Planning and Zoning Commission.
"I am for building the Grace Neal Parkway," he said.
"My question is, with the economy being the way it is, is this the time to be doing it? If it is, do we want to spend $1 million just to get a little land for a right of way? I see the land owners who are selling this land as the ones who are going to benefit from it the most," Abbott said.
Had asked if the landowners would be willing to donate the property and if the county had made that inquiry to them. He had spoken with one landowner, who said two years ago he was willing to donate some land in order to get the parkway built.
"I see this Grace Neal Parkway as being something needed, but when is the time to do it," Abbott said. "I would just like to ask those who are in charge of making this decision, if they purchase this land, to pay what it's worth."
County Development Services Director Nick Hont said the appraiser affiliated with CEI Construction Engineering, was asked if the $1.3 million price tag was reasonable for the area. The appraiser advised the county the price was in line with previous land sales in the area.
The property owners, Lingenfelter Investments and John T. Neal, had already donated some right of way for the parkway and declined to donate any more for the channel, he said. The channel would be of no benefit to them anyway, Hont said, since it would cut them off from the parkway.
Developers along Grace Neal Parkway upstream from the four properties will build most of the flood channel, which will drain into the Mohave Wash when it is finished, Hont said. The county would be liable if the water washed uncontrolled over these properties, Hont said, making the need to buy the land in question an absolute requirement.
The county has applied for federal grants to help with the construction of the parkway, but staff won't know if the county will get those grants until January, he said. The grants, if approved, would pay for 100 percent of the cost of the project. However, the project must be shovel-ready, meaning the county would need to purchase the property before accepting the grant, Hont said.
This was not something that was entered into lightly by the county, County Manager Ron Walker said.
"I hope what you heard here (referring to Hont's description of the project) will tell you without a doubt that we don't do business that way," Walker said. "This has been under consideration for a substantial amount of time. We don't just jump into these things."
"I'm very much for the parkway being built," said Supervisor Gary Watson. "I was concerned about $45,000 an acre. That's quite a good deal of money for those parcels out there. I think it would behoove us to possibly look into finding out the cost of another appraisal."
At one time, property out there may have sold for $45,000 an acre, but Watson doubted it would today with the current economy. He then made a motion to have staff get another appraisal of the property. The motion passed unanimously.
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Posted: Thursday, December 10, 2009
Article comment by:
No name provided
Not that I'm in favor of EMINENT DOMAIN, but if they won't sell for a fair price, then what would stop the county from using Eminent Domain to aquire the land necessary if they would be liable.
Posted: Thursday, December 10, 2009
Article comment by:
kak
If this Property was rezoned commercial prior to or during this time of "sale". Then I think we the taxpayers need to "Balk" as well.
Maybe commercial land is worth 45 an acre..BUT when is the lasttime you saw a Commercial drainage ditch?....never.
Not right is just plain not right.
45k an acre for this is just not right in the eyes of any sane person.
Posted: Wednesday, December 09, 2009
Article comment by:
COMMERCIAL?
COMMERCIAl.....I thought this was a wash.......you know...A EMPTY SPACE FOR RUNOFF WATER.
Posted: Wednesday, December 09, 2009
Article comment by:
Get Real in Your Analysis Mr. Chambers
And I can find hoels in your appraisal analysis Justin. As a real estate broker you should know full well that commercial real estate cannot be accurately appraised by comparing it to residential or agricultural land.
Posted: Wednesday, December 09, 2009
Article comment by:
UNBELIEVABLE
Way to go Justin. Excellent research.
What I have to wonder is how many times in the past, lets say, 20 years has MILLIONSS of dollars been paid out on these kind of deals. This is just down right shamefull in general!
There needs to be a legal investigation of the process/the steps that brought this issue to the point it is at now.
Who was it again that wanted Grace Neal Parkway the most????
Good guys dont take this kind of money for land valued at 1,000 an acre on the tax rolls.
Which company did the appraisal....did the county pay for it or did Lingnfelter?
Posted: Wednesday, December 09, 2009
Article comment by:
Justin Chambers
I was able to get a copy of the appraisal. The appraiser first off is not on our MLS. Therefore he doesn't have access to the latest comparable sales. He also used comparable sales from 06, one of which he knew went into FORECLOSURE. Another comparbale sale is on the Driscoll and Hualapai Mtn. Road. Miles and miles from the subject property. He also used a 2.35 acre parcel close to the new hospital and I-40. And finally he used a sale in 06 on Jagerson that is next to the community college with all utilities and pavement to the property. Usually appraisals have to use sales in the past 6 months for comparison. I can find holes in every comparable sale on this that he used. This appraisal needs tossed out and a new one.
Posted: Tuesday, December 08, 2009
Article comment by:
The rich get richer!
I couldn't believe that the county is even considering paying this rediculous price for this property and trying to make it sound urgent and well thought out! It made more sence when I learned the Travis Lingenfelter is the Procurement Director for Mohave County.It is funny because the definition of procurement is the acquisition of goods and/or services at the best possible total cost of ownership, in the right quality and quantity, at the right time, in the right place and from the right source for the direct benefit or use of corporations, individuals, or even governments. Is this land the best price at the best time?
Posted: Tuesday, December 08, 2009
Article comment by:
No name provided
@Jon The Bullhead Parkway has made getting around Bullhead far more convenient and less of a headache for me at least. I'm sure others feel the same way. So even though it has been a good thing, landowners aren't allowed to profit? Perhaps you would feel differently had you purchased land that was later sold for such a project.
Posted: Tuesday, December 08, 2009
Article comment by:
Icarus
@Marci & NNP: The "assessed" value is a percentage of the land value, not the "real" value of the property, if you own property look at your tax statement and it shows you what your "real" vs. "assessed" value is. I'm not sure why the Miner didn't point that out.
And John T. Neal doesn't need me or anyone else to defend him, however I am going to say he is a man of great integrity. I feel others are jealous of the Neal name to the point that they want the government to take away his land through Eminent Domain. Are you people Communists? All I keep hearing from this town is they want fences up, the govt to take away peoples property, no new money coming in, and anyone with old money they want it taken away from them.
Posted: Tuesday, December 08, 2009
Article comment by:
No name provided
JUST CALL 1-800-CRY-BABY
Posted: Tuesday, December 08, 2009
Article comment by:
SHOW THE APPRAISAL
WHY DONT THEY PUBLISH THE APPRAISAL? WOULDNT IT BE A HOOT TO SEE THE COMPARABLES THEY USED RTO COME UP WITH THOSE OUTRAGOUS NUMBERS!
Posted: Tuesday, December 08, 2009
Article comment by:
Serious Question For Real Estate Pros
Are there any real estate professionals that have actually reviewed and read through these appraisals in there entirety? If so, I am curious as an impartial citizen how they are flawed? I am no expert, but I do know that there are three generally recognized approaches used to appraise land: Sale Comparison Approach; Cost Approach; Income Capitalization Approach. Which approach did the Appraiser use and why was it the wrong method to use? Thanks.
Not interested in wild explanations from unemployed conspiracy theorists so please don't reply; rather go wrap some tin foil around your heads because you are getting some faulty reception.
Posted: Tuesday, December 08, 2009
Article comment by:
Silver Spoon
Remember the county can always always imminent domain the property. That is where they find that the land is required for the public good and rightfully take the land and pay the fair price at the time.
Posted: Tuesday, December 08, 2009
Article comment by:
No name provided
What makes the county liable for land they don't own? Would the county still be liable if the property owners wouldn't accept the amount the county was will to pay for the land to make the improvements?
Posted: Tuesday, December 08, 2009
Article comment by:
Jon
This is funny, people are actually defending the rich in this town. Guess what the only reason the new hospital was approved(dont get me wrong I dont mind it) was to create a reason for the state to have to build an over pass over rattle snake wash(easy access to a emergency clinic) that is the distracting point, I wonder who owns all of th land next to the highway where there might be a new over pass for new business and gas stations, you have to look deeper than the surface. Plus I have lived in this town for a long time, nothing is done unless it benifits others look at the bullhead parkway. That was built to eas congestion on the main road well guess who owned most that land, Don Laughlin nothing is done unless it makes someone lots of money. If my house and land value are appraised for 60,000 and it would take 125.000 dollars just to build my house if it burned down, then yes there is someone getting paid under the table and it is alot.
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