How much is it worth?
Central Arkansas Water announced today they will hold a public meeting on Wednesday, Nov. 4, to discuss a lease-purchase agreement with the Trust For Public Lands (TPL) concerning the Winrock Grass Farm in West Pulaski County. The land, over 800 acres, sits in the Lake Maumelle watershed and protecting that land has been a top priority for Lake Maumelle advocates. The grass farm is owned by a group of investors who bought it in a deal brokered by Jay DeHaven.
For some good background info on what the land is worth, read this story by Leslie Peacock. The long and short of it is the land was appraised in April of this year for $5.4 million dollars. CAW CEO Graham Rich will announce the particulars at a press conference on Monday, but said the agreement reached between TPL and DeHaven was somewhere close to $12 million (give or take $500,000) for 915 acres.
Rich said the initial appraisal, which DeHaven was none too happy with, did seem low. A second appraisal, commissioned by TPL, came in at over $12 million -- a figure more consistent with what they've paid for land in the watershed before, Rich said. It will be interesting to find out some more specifics, such as why a plot of land that was bought for $4.5 million in 2005, underwent zero improvements and appraised for $5.4 in 2009 will now sell for approximately $12 million.
TPL will buy the land from its current owners, then funds from investors, including CAW, the Arkansas Game and Fish Commision and possibly the U.S. Forest Service, will be combined with funds set aside by Sen. Bob Johnson to complete the transaction. The press conference will be held at CAW headquarters at 5 p.m. Monday, Nov. 2.
Comments
Yes, it seems rather odd that a piece of property that sold for $4.5 million at the peak of the speculation bubble is suddenly worth $12 million, with no improvements, after the real estate market has collapsed.
Maybe Frank Whitbeck was right about it being under-appraised at $2.8 million in 2004 (before he was sent to prison), or maybe it's just another $12 million ripoff.
Is TPL performing due diligence on this transaction? Didn't the current owner file for bankruptcy recently? Perhaps a better strategy is to just wait a while and see if a better price can be obtained. It might even be cheaper to bid for the property on the courthouse steps. I doubt that many bidders would show up at an auction for property where development potential is limited due to clean water restrictions.
Posted by: Arkansas Blogger![[TypeKey Profile Page]](http://www.arktimes.com/blogs/arkansasblog/nav-commenters.gif)
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October 30, 2009 06:03 PM
Gerard, your post says CAW will hold a press conference on Monday and a public meeting on Wednesday.
However, the CAW press release says there will be a public forum on Monday and a Special CAW Commission meeting on Wednesday to consider the lease-purchase agreement regarding this land.
You may want to revise your post.
Posted by: Sound Policy![[TypeKey Profile Page]](http://www.arktimes.com/blogs/arkansasblog/nav-commenters.gif)
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October 30, 2009 06:14 PM
Me thinks there's a familiar odor eminating from west of Lake Maumelle. Unfortunately,we are becoming too accustomed to this particular smell. It's the stench that comes from inside deals using public money involving the likes of Jay Dehaven, Bob Johnson, CAW, & Tom Scheuck etc.
The best, transparent way to solve the land worth issue and protect public concerns is to buy the land at open auction. CAW is managed by inept fools who are incapable of dealing with slick and greedy politicos/developers.
Posted by: downtowner![[TypeKey Profile Page]](http://www.arktimes.com/blogs/arkansasblog/nav-commenters.gif)
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October 31, 2009 10:32 AM