Memorandum

To: File – Long Range Financial Planning Committee Recommendations

From: John R Murray

Subject: Lot Selection for Retaining Development Rights

June 15, 2010

At the Inform Meeting held 20 May, 2010, to brief the community on the recommendations of the Long-Range Financial Planning Committee (LRFPC), several (3 or 4) comments were made questioning the selection of (or non-selection of a Lake-side lot over the Primrose lot next to Heiden.

By way of background, the LRFPC had simply rank ordered lots in descending order of assessment and recommended to the Joint Board that only the highest six be retained in buildable status, with the remaining lots permanently eased to prevent building. While the LRFPC felt and still feels that a purely objective ranking is defensible, after the meeting it was agreed that ‘face-validity of the selected lots was important to further community consensus on the tax-reduction portion of the committee’s recommendations.

By e-mail consensus among the LRFPC, it was agreed that I would convene a small group of Lake residents (i.e., 3) with professional expertise in land market value to first look at lots ranked 6-8 and order them based on potential market value and second, to take a cursory look at the first 5 to see if any thing anomalous stuck out.

So, based on the above, here are two alternative recommendations:

The three residents, realtors Twinkle Tong and Tawnya Kabnick, and appraiser Bob Edgar met with Rick Barrett and me on 26 May and after a brief overview and discussion, we visited 6 of the 8 properties. We did not go to the two ball field properties as there was unanimous consensus that they were in the top 5 in terms of market value of any undeveloped Lakeshore properties. Prior to the meeting I had provided the three with Mod IV information from Morris County and a summary sheet (below) showing the relative specifications of all of the Lakeshore lots with any tax on them.

In my initial briefing, I mentioned that we were mostly interested in their opinions on which of the 3 lots in the original assessed value order was most valuable but would appreciate their thoughts on the other 5 if anything stood out as questionable.

There was unanimous agreement that the appropriate descending order by potential market value of the three lots was: 1. Block 43, Lot 6 – Lake lot by McGoldrick; 2. Block 43, Lot 16, Lake lot by Murray and; 3. Block 36, Lot18, by Heiden.

The members of the LRFPC were in agreement that we would accept the conclusion of the professionals so at this point the 6^th lot that would NOT be preserved is Block 43, Lot 6, by Heiden.

Full year 2009 Taxes on Lakeshore lots
Address	Block	Lot	Land	Size	Taxes 2009	Location
126 Baileys Mill	37	2	$ 464,400	1.48	5,015.52	By Collier
64 Lake Trail East	44	12	390,000	1.90	4,212.00	By Kern
81 Primrose	40	7.02	388,000	0.72	4,190.40	By Corr	- Top 5
16 Trails End	36	27	221,900	2.45	2,396.52	Ball field - Jones
19 Trails End	45	7	201,300	2.12	2,174.00	Ball field - Molendyke
60 Primrose	36	18	195,000	0.48	2,106.00	By Heiden
23 Lake Trail East	43	6	186,600	0.35	2,015.28	Lake by McGoldrick - -	6th Lot
65 Lake Trail East	43	16	183,400	0.34	1,980.72	Lake by Murray
39 Lake Trail E	39	5	168,000		1,814.40	By Hall
39 Primrose	39	8	165,300		1,785.20	By Sullivan
24 Primrose	36	7	165,000		1,782.00	By Densen
50 Primrose	36	14	151,500		1,636.20	By Fitzhugh
38 Lake Trail W	44	3	147,500		1,593.00	By Drevitson
Primrose	40	2	144,300		1,558.40	By Fitzgerald
60 Lake Trail East	44	12.01	123,100		1,329.48	Across from Murray
57 Primrose	40	3	122,800		1,326.20	By Zalis
52 Primrose	36	15	63,400		684.72	By Kuchler
Primrose	39	10	31,500		340.20	By Manser
8 Primrose	36	1	21,000		226.80	By Sabol
Lake Trail West	40	11	15,600		168.48	Across from Dwyer
			$ 3,549,600		$ 38,335.52
			$ 1,697,400		$ 18,331.80	Without top 6 - Tax reduction