This table comes from the Tax Court decision in Mill Road 36 Henry LLC. In each case promoters applied for conditional zoning approval to build an assisted living facility in Henry County GA. They then brought in investors and donated a conservation easement rater than develop. The $8,835,000 deduction in Mill Road for the easement on 33 of Mill Road’s 40 acres represents a valuation of $270,800 per acre. At trial a lower valuation was argued. Judge Gustafson remarked:
A developer intending to build a facility would never have contemplated buying the Mill Road Tract for $6.7 million but would instead have bought one of the many other tracts available at much lower prices. As a prospective developer would do, we view the price of a comparable undeveloped lot in Henry County as the proper “substitute” by which to value to the Mill Road Tract. Mr. Kinney’s valuation of $900,000 was based on such comparables, and we adopt his valuation.
The table below was included as a supplement. I have added the Tax Court dockets as each of the comparable entities is also being litigated. The promoters applied for zoning for ten different projects in the same county and turned each into an easement donation. Mill Road 36 Henry is the first to go to decision,
| Entity | Concept Plan Units | Date of Conditional Use Evaluation Report | Date Acquired | Acres | Price per Acre39 |
|---|---|---|---|---|---|
| Mill Road 36 Henry, LLC
11676-20 |
677 | 07/08/2016 | 08/28/2015 | 39.68 | $10,498 |
| Highway 81 Henry 55, LLC
11428-21 |
844 | 08/15/2016 | 12/29/2015 | 54.85 | 10,939 |
| Stroud Road Henry 640, LLC
12184-20 |
1,838 | 08/15/2016 | 01/27/2015 | 634.93 | 5,367 |
| Airline Road Property Holdings LLC
6426-21 |
656 | 08/24/2016 | 11/29/2016 | 39.5 | 9,925 |
| Hanger Highway 81 Henry 89, LLC
11677-20 |
672 | 09/13/2016 | 06/17/1991 | 86.12 | 1,682 |
| Harris Drive Henry 76, LLC
6947-21 |
750 | 09/13/2016 | 12/29/2015 | 73.21 | 11,380 |
| Highway 20 Henry 30, LLC
11813-20 |
585 | 09/13/2016 | 09/29/2011 | 29.29 | 9,450 |
| Island Shoals Henry 430, LLC
31759-21 30074-21 32936-21 (Judge Goeke) |
1,733 | 09/13/2016 | 01/27/2015 | 421.01 | 4,761 |
| We Partner Weems 82, LLC
11788-21 |
696 | 09/13/2016 | 12/29/2015 | 82.58 | 6,055 |
| Foster Drive Henry 86, LLC
4094-21 |
650 | 03/06/2017 | 02/27/2016 | 85.24 | 10,000 |
| Fairview Road Henry 65, LLC
12221-21 |
840 | 03/22/2017 | 12/16/2016 | 53.25 | 10,798 |
For great value continuing professional education. I recommend the Boston Tax Institute
You can register on-line or reach them by phone (561) 268-2269 or email vc@bostontaxinstitute.com. Mention Your Tax Matters Partner if you contact them.
For articles oriented toward tax professionals check out Think Outside The Tax Box.
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