Quote:
Originally Posted by powderjunkie
I'm not sure Carra is the guy I'd trot out for assurances that everything related to a land deal will be absolutely above board.
I'm also not sure how you determine a fair (or apparently full?) market value for fairly unique parcels by restricting your market to one bidder. Nor how you maximize the overall outcome of those parcels by restricting yourself to one bidder who seems to have little to no experience in blank slate urban development.
IMO you can justify a pretty wide range for 'fair' market value. Considering the sale of public land should be a lot more nuanced and considered, as there is always also an option to not sell and utilize it for something else, should the free market indicate underwhelming external value.
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Agreed that Carra is a buffoon.
Typically a commercial appraiser is engaged to provide an opinion of market value under highest and best use, which would be a valuation of the parcel as a fee simple asset clear of encumbrances. This valuation would capture the value of the development potential of the parcel as if it was offered on the open market - the existence of the option has no bearing on the market value opinion. I used to work in commercial valuation, and typically we would see these types of options at the expiry of long term land leases. Again, it’s tough to analyze this any further until we see the text of the agreement.