The decision by Greenfield’s mayor to remove the 13-acre parcel from Wednesday’s scheduled auction is an important first step to maximize the value of these city-owned properties for all stakeholders.
But her rush to a shotgun auction at high noon in Court Square will seriously damage the long-term value of the remaining parcel to all, but especially to her stated goal of maximizing ongoing tax revenues to the City of Greenfield.
The six-acre parcel is a spectacular one, and conceivably could and should site a luxury home — one which would rival the most highly assessed properties in areas like Highland Avenue.
For argument’s sake, let’s say a home valued at $850,000 could be built there — if the right buyer/builder is found through a thorough and thoughtful marketing and RFP process, as is allowed under the General Laws of the Commonwealth. At $23.22 per $1000 of valuation, this results in an annual tax payment of $19,737 to the city upon completion and likely rising annually.
And maximizing proceeds of the sale itself is important. Such a site for a home of this value sold through RFP is likely to yield at least $100,000 more in proceeds to the city than through Wednesday’s proposed auction.
But the city will achieve this outcome only if it finds the right buyer — and the right buyer will not be found through this rushed process compounded by the uncertainty surrounding the property which the city has done little to reduce.
Property developers, and families commissioning luxury homes, loath uncertainty. They are willing to pay for a “sure thing” — and any risk remaining in the parcel when it is sold will reduce the price they are willing to pay for it, raising the risk of them being outbid by a buyer was less ambitious aspirations.
There are three major risks, all of which the city could remove as part of a measured and thoughtful RFP process:
1. Prescriptive easement claims and related litigation concerning the trails on the northwest portion of the property.
2. The current dwelling — should it be condemned, is it at all rehabitable, are there any claims of historic significance, and the expense of demolishing and remediating the site it if it is in fact a “tear down.”
3. What envelope of tree-cutting will be allowed, given the steep slopes and property lines, to fully restore the magnificent views that give the parcel its unique value.
Removing these risks maximizes the value of the property. So does a proper marketing and RFP process that attracts interested buyers from across New England — and perhaps Deerfield Academy parents.
This will also allow subdividing the property — deeding the northwest 2.8 acres containing the trails to conservation and satisfying this very important constituency while extinguishing prescriptive easement claims.
This subdivision will do very little harm to the sale proceeds or taxable value. The buyer will attribute almost equal value to the adjoining acres being under conservation protection versus their direct ownership. And the land value as assessed for 6.2 acres at 87 Stone Ridge is $83,000 — a whopping $11,000 or so more than the assessments on the .23-to .26-acre lots at numbers 6, 8 and 10 Stone Ridge Lane. At an inferred value of $1,900 per acre, this means the city will be sacrificing 34 cents per day in tax revenue to preserve these 2.8 acres.
The accompanying illustration is a rough sketch of what this ”Solomonic Subdivision” would look like. Pursuing this alternative approach is clearly the best way for Greenfield’s Mayor to achieve her stated objectives.
Doug Stotz is a Greenfield native and retired executive who currently splits his time between his home in Wayland and his mother’s property in Greenfield and Gill.