Printer Friendly Version - Appraisals in for Griswold Property

Days after the town received appraisals for Griswold Airport property, many Madison residents braved miserable weather to get a firsthand look at what the town is considering purchasing for $9.7 million. Coastal ecologist and Madison resident Heather Crawford led two hikes in the cold and driving rain; more than 50 residents took the tours.

Alicia Betty, project manager for the Trust for Public Land (TPL), met with the Board of Selectmen last week to explain the terms of the agreement the non-profit land conservation organization has reached with LeylandAlliance to purchase the former Griswold Airport property. TPL, Betty said, customarily requires two independent appraisals of a property. Those two appraisals are now in and TPL has shared them with the town. The first, from Miner and Silverstein, an appraisal company located in New London, places the "as-is market value" of the 42-acre site at $10.5 million. The second, from Flanagan Associates of Waterford, places it at $9.65 million.

TPL, Betty said, customarily requires two independent appraisals of a property. Those two appraisals are now in and TPL has shared them with the town. The first, from Miner and Silverstein, an appraisal company located in New London, places the "as-is market value" of the 42-acre site at $10.5 million. The second, from Flanagan Associates of Waterford, places it at $9.65 million.TPL, acting as a neutral third party, has negotiated an agreement with owners LeylandAlliance to purchase the property for $9.7 million. Leyland fought for nine years to win rezoning, special permits, and other necessary approvals to build a 127-unit condominium community at the site of the former airport. The development was to be called Madison Landing.

TPL, acting as a neutral third party, has negotiated an agreement with owners LeylandAlliance to purchase the property for $9.7 million. Leyland fought for nine years to win rezoning, special permits, and other necessary approvals to build a 127-unit condominium community at the site of the former airport. The development was to be called Madison Landing. Betty told the selectmen, "There are many 'stops' in this process if needed."

Betty told the selectmen, "There are many 'stops' in this process if needed." The first of those, she said, were independent appraisals.

The first of those, she said, were independent appraisals. "TPL seeks to determine a property's fair market value," Betty said. "It is standard in the conservation field to seek out two independent appraisals."

"TPL seeks to determine a property's fair market value," Betty said. "It is standard in the conservation field to seek out two independent appraisals." If the appraisals came in at numbers lower than the negotiated sale price "we would be going back to the table," she said.

If the appraisals came in at numbers lower than the negotiated sale price "we would be going back to the table," she said.Both independent appraisal firms defined market value as "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably."

Both independent appraisal firms defined market value as "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably."Betty said, "These independent, professional appraisals confirm that the purchase price reflects the fair market value of this unique coastal property. The current value reflects the fact that all necessary permits and approvals are in place to construct a 127-unit residential development. These approvals substantially increased the value since 2000, when LeylandAlliance negotiated their purchase price for the property."

Betty said, "These independent, professional appraisals confirm that the purchase price reflects the fair market value of this unique coastal property. The current value reflects the fact that all necessary permits and approvals are in place to construct a 127-unit residential development. These approvals substantially increased the value since 2000, when LeylandAlliance negotiated their purchase price for the property." Both firms also reviewed the purchase history of the property.

Both firms also reviewed the purchase history of the property. Miner and Silverstein said, "Parcels A and B were transferred to Madison Landing Company, LLC, on Feb. 13, 2007. Parcel A was transferred from Griswold Airport, Inc., for a purchase price of $3,788,038 and Parcel B was transferred from Maryann K. Griswold for a purchase price of $587,654…The combined purchase price for both parcels was $4,375,684…The purchase was contingent upon obtaining approvals and LeylandAlliance entered into contract for the purchase in the year 2000."

Miner and Silverstein said, "Parcels A and B were transferred to Madison Landing Company, LLC, on Feb. 13, 2007. Parcel A was transferred from Griswold Airport, Inc., for a purchase price of $3,788,038 and Parcel B was transferred from Maryann K. Griswold for a purchase price of $587,654…The combined purchase price for both parcels was $4,375,684…The purchase was contingent upon obtaining approvals and LeylandAlliance entered into contract for the purchase in the year 2000."Flanagan Associates adds a bit more information: "This property was contracted for sale on May 10, 2000 for an initial purchase price of $3,000,000. The contract included various option periods and a timed monthly payment plan to begin after an initial due diligence period…There were various amendments and extensions, including increases in the purchase price."

Flanagan Associates adds a bit more information: "This property was contracted for sale on May 10, 2000 for an initial purchase price of $3,000,000. The contract included various option periods and a timed monthly payment plan to begin after an initial due diligence period…There were various amendments and extensions, including increases in the purchase price."The appraisals do not include any environmental assessments. Betty said TPL will pay up to $10,000 for an environmental assessment. If further tests are required, the town would have to pick up those costs, she said. TPL will also pay the costs for the required title review on the property.

The appraisals do not include any environmental assessments. Betty said TPL will pay up to $10,000 for an environmental assessment. If further tests are required, the town would have to pick up those costs, she said. TPL will also pay the costs for the required title review on the property.TPL's agreement with Leyland calls for an April 1, 2010 closing on the sale. It requires that the boards of Selectmen and Finance agree by Nov. 13 to send the question of purchase of the property to a referendum vote and sets the referendum deadline at Dec. 22.

TPL's agreement with Leyland calls for an April 1, 2010 closing on the sale. It requires that the boards of Selectmen and Finance agree by Nov. 13 to send the question of purchase of the property to a referendum vote and sets the referendum deadline at Dec. 22. "The seller is willing to take some risk for a certain amount of time, but they do want a final decision within a reasonable timeframe," Betty said.

"The seller is willing to take some risk for a certain amount of time, but they do want a final decision within a reasonable timeframe," Betty said.The selectmen have formally sent their recommendation on to the Board of Finance for action. The sale agreement totals

The selectmen have formally sent their recommendation on to the Board of Finance for action. The sale agreement totals In addition to purchase costs, the selectmen have estimated the need for another $1 million to clear off and clean up the site and develop some playing fields and parking. This week the Board of Finance is expected to discuss the possible purchase and the total costs to recommend to a referendum. The selectmen believe they will call a referendum vote on Dec. 8.

$9.7 million. TPL has said it will work with its donors and others to raise $1.7 million, reducing the town's purchase costs to $8 million.

In addition to purchase costs, the selectmen have estimated the need for another $1 million to clear off and clean up the site and develop some playing fields and parking. This week the Board of Finance is expected to discuss the possible purchase and the total costs to recommend to a referendum. The selectmen believe they will call a referendum vote on Dec. 8.