Fair compensation is different than what you’re asking for. You paid around $300k for the property. The property is taxed at a rate of around $300k. Yet, you say the only fair compensation is if the city pays as if it is worth $800k.
Would you also be willing to pay a property tax rate of $800k if the city paid you based on that rate?
That’s how eminent domain works. I know because I did “my research.” The value is based on highest and best value, not the tax value. Since this land is recommended 20 story zoning with developments popping up around it, that is how it will be valued. Will the city automatically value it that way, who knows. But an eminent domain attorney should easily be able to lay out the case for it. The $800,000 is based on the price per acre that the land on the next block over was purchased for. The city has been pushing the case for this area to be redeveloped 20 stories so it would be pretty hard for them to back track on it.
To further answer your question. The tax rate will likely double this year from $150k to $300k, but no it shouldn’t be taxed at $800k, yet. The individual lots are worth what they’ve recently sold for, based on SFH usage. It’s the collection of the lots for development that provides the “highest and best use” amount. This is something that is used specifically for eminent domain.
If the area is officially rezoned, then the tax prices will skyrocket. Hopefully that won’t happen until a developer buys it and rezones it.
Can you show me the research that suggests highest and best use does not take current zoning into account? Everything I have read suggests that they take into what is legally possible based on current zoning on the current parcel, not on what is being zoned across the street.
I think what @MaggieB is referencing is that there’s already additional rezoning requests working their way through city process in addition to the Hammel project - both for these frontage lots and for the Baker roofing / Maywood conglomerate of lots…so, while tax evaluation lags behind development desire, ‘market rate’ is likely somewhere well north of current valuation…?
If you google, “eminent domain for future rezoning,” you’ll find plenty of explanations for how it works. Here’s the first one that popped up for me. Scroll down to the FAQ that refers to this.
Let me know if I’m wrong, but the specific line item in the Q&A referenced appears to be:
Will the eminent domain laws support my claim for more money based upon a potential zoning change to the property?
Yes, if it is reasonable that someone would buy property and change the zoning based upon a more valuable use than current zoning allows. Then the value of the property under eminent domain rules must be based upon the more valuable use.
This comment is referencing a quick change. There isn’t any existing zoning change happening on your property. There aren’t any planned that I am aware of. Just because the property across the street has plans to be zoned for 20 doesn’t mean yours gets that title too.
It would make sense if they were planning to take a section of this property under eminent domain with the intention of putting a 20-story hotel on it that the community needed. This doesn’t look like it would apply. Like I’ve said, I’ve looked all over the place and what I keep seeing are scenarios like this:
Tip: Value cannot be based on business plans that are not legally possible. For example, a land development plan that otherwise passes the reasonable person standard but conflicts with local zoning laws cannot be the basis of your negotiating stance.
20 stories isn’t legally possible on this parcel, so they will not compensate for it based on 20-story zoning. As I said, I’m not an expert. But, this is based on everything I’ve read and I haven’t been able to find anything that suggests otherwise.
The link I added does not say anything about a quick change. Where are you getting that from? It says potential for future rezoning if someone else were to buy it and rezone it. Many NC attorney websites say the same.
The potential for rezoning in this area is based on the fact that the city of Raleigh recently changed their future zoning recommendation for this tract of land to 20 stories. The future land use maps are used to help approve requests for zoning. The land around it was just rezoned 20 stories. This perfectly falls into the potential to be rezoned “future and best use category.” The city is the one recommending it be rezoned and development next door supports the immediate potential.
I feel pretty confident an attorney will be able to negotiate a good price, but according to everything I’ve read the City will try hard to lowball, even on the current tax value. We’ll just have to wait and see how it plays out.
if sources are correct median household income is 72k in raleigh
That’s a lot of wealthy folks and if it’s concentrated in that neighborhood there gonna want the domain money.
So, essentially a home in the 300,000s range is what the median household income can afford. This neighborhood is squarely in the middle of that affordability. Its prices today are not available to low income households. Thanks for providing that number.
The prices have jumped significantly in the last few years. The only people buying in the 300’s there are investors. The people who have owned their homes for awhile bought them for closer to $50-100k.
Just because the prices today aren’t available for low income buyers doesn’t mean it’s not a low income neighborhood. The people who live there are low income. Gentrification is raising the prices making it unaffordable for future owners to be low income, but the ones who currently live there are.
Z-72-21 deferred to Growth and Natural Resources committee.
Few of the folks who commented at the council meeting don’t live nearby, not sure what their angle is.
Also hearing that some in southwest Raleigh (not people on Maywood) want this to be some kind of PD. Baker is just trying to upzone and sell so I’m not sure thats realistic to push for.
Sending everything to G&NR is exactlty how the old council operated.
It was a fun 3 years, but party’s over, people!
I do not see MAB surviving another election, so we have a further 2 years until Missing Middle is rolled back, too.
What’s PD stand for?
Planned development
Park City South was rezoned as a planned development and is much smaller than the 30 acres in the Baker rezoning.
So… when rent just skyrockets because of stifled development in the next few years, who will they blame then?
All them Yankee carpetbaggers moving down here to ruin their charming small town.