Posted with permission from the Hamilton Spectator
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THE HAMILTON SPECTATOR TUESDAY, AUGUST 17, 2010
ACTION LINE
AL MACRURY
Sherrie MacLean hopes to buy a lot for a little.
The undersized, municipally owned lot on Beach Boulevard is presently too small to build on. And, the city says it isn't even "formally" for sale.
But, MacLean and her husband, David, are trying to stake their claim to 73 Beach Blvd. because they own the adjoining lots that surround it.
"We purchased 63 Beach Blvd. in 2002 and built our home here," Sherrie told Action Line. "We later purchased 75 and 77 Beach Blvd. We began asking the city about 73 Beach Blvd. in 2003 and kept getting the runaround. There is nothing between our home at 63 and the remnant lot at 73, but our driveway." The couple is upset over a change in city policy, implemented in 2004.
"Prior to the city's implementa-tion of the 'portfolio management strategy,' lands on the beach strip were sold in the range of $1.42-2.44 per square foot," says Neil Everson, director of Hamilton's economic development and real estate division.
"These would not have been buildable lots and in most cases were remnant parcels, such as closed alleys and unnecessary easements."
But market value appraisal of such lots was implemented in November 2004 with the passing of Bylaw 04-299. The present policy is posted on the city's web-site (hamilton.ca), Everson said.
This has led to an increase in purchase prices. Instead of $2 a square foot, anyone interested in buying 73 Beach Blvd. (32 feet 6 inches by 42 feet) would likely have to pay about $43,000, the city's appraised value.
Actually, by buying the land around 73 Beach Blvd., the MacLeans have boosted the value of the remaining remnant.
"There are two issues here (both of which the MacLeans disagree with)," Everson explains. "The first is the change in policy to market value. It is the mandate of staff to maximize revenue from the sale of any city-owned surplus properties. The second is the policy of 'value-in-contribution.' "
In the case of 73 Beach Blvd., its estimated value is based upon how much it would contribute to the value of the whole lakefront resi-dential lot that would result from the land assembly. If the city sold 73 Beach Blvd. to the MacLeans for $2 a square foot, all they would have to do is merge the three properties and they would have a buildable lakefront lot, which they could sell at a significantly higher price. And the city would get next to nothing in return.
According to the Appraisal Institute of Canada, the value of a particular piece of land is measured in terms of its contribution to the value of the whole property.
At the moment, the future of 73 Beach Blvd. is still in question. It requires "inter-departmental" circulation to see if the city itself has any possible use for the property ... even as a bus shelter.
If not, a "for sale" sign will be placed on the property and letters mailed to adjoining owners.
The city says the MacLeans can provide their own appraisal and it will cover the cost. If you have a consumer problem, call 905-526-4665 or e-mail amacrury@thespec.com. Not all calls and letters can be answered.
________________________________________________
THE HAMILTON SPECTATOR TUESDAY, AUGUST 17, 2010
ACTION LINE
AL MACRURY
Sherrie MacLean hopes to buy a lot for a little.
The undersized, municipally owned lot on Beach Boulevard is presently too small to build on. And, the city says it isn't even "formally" for sale.
But, MacLean and her husband, David, are trying to stake their claim to 73 Beach Blvd. because they own the adjoining lots that surround it.
"We purchased 63 Beach Blvd. in 2002 and built our home here," Sherrie told Action Line. "We later purchased 75 and 77 Beach Blvd. We began asking the city about 73 Beach Blvd. in 2003 and kept getting the runaround. There is nothing between our home at 63 and the remnant lot at 73, but our driveway." The couple is upset over a change in city policy, implemented in 2004.
"Prior to the city's implementa-tion of the 'portfolio management strategy,' lands on the beach strip were sold in the range of $1.42-2.44 per square foot," says Neil Everson, director of Hamilton's economic development and real estate division.
"These would not have been buildable lots and in most cases were remnant parcels, such as closed alleys and unnecessary easements."
But market value appraisal of such lots was implemented in November 2004 with the passing of Bylaw 04-299. The present policy is posted on the city's web-site (hamilton.ca), Everson said.
This has led to an increase in purchase prices. Instead of $2 a square foot, anyone interested in buying 73 Beach Blvd. (32 feet 6 inches by 42 feet) would likely have to pay about $43,000, the city's appraised value.
Actually, by buying the land around 73 Beach Blvd., the MacLeans have boosted the value of the remaining remnant.
"There are two issues here (both of which the MacLeans disagree with)," Everson explains. "The first is the change in policy to market value. It is the mandate of staff to maximize revenue from the sale of any city-owned surplus properties. The second is the policy of 'value-in-contribution.' "
In the case of 73 Beach Blvd., its estimated value is based upon how much it would contribute to the value of the whole lakefront resi-dential lot that would result from the land assembly. If the city sold 73 Beach Blvd. to the MacLeans for $2 a square foot, all they would have to do is merge the three properties and they would have a buildable lakefront lot, which they could sell at a significantly higher price. And the city would get next to nothing in return.
According to the Appraisal Institute of Canada, the value of a particular piece of land is measured in terms of its contribution to the value of the whole property.
At the moment, the future of 73 Beach Blvd. is still in question. It requires "inter-departmental" circulation to see if the city itself has any possible use for the property ... even as a bus shelter.
If not, a "for sale" sign will be placed on the property and letters mailed to adjoining owners.
The city says the MacLeans can provide their own appraisal and it will cover the cost. If you have a consumer problem, call 905-526-4665 or e-mail amacrury@thespec.com. Not all calls and letters can be answered.
