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The push for sustainable energy is undeniable. From such personal changes like reusable bags for Sunday shopping and personal tax credits for public transit passes to industry changes like LEED certification that is quickly becoming status quo, the effect is evident.

Albeit smaller in scale, the decision referenced in this article may possibly set the precedent on non-residential real estate values properties with proximity to green energy sources.

Ontario's Assessment Review Board (ARB) has rejected the position the rural residential owner has declared. According to the ARB, the proximity to wind turbines has not significantly decreased the value of their home, despite the owner's arguments about the noise and environmental disadvantages it places on them. Critical to the decision is MPAC's stand that the assessment algorithm they use does not factor in proximity to wind turbines. Of note is that when settlement of the case was being discussed, MPAC had ensured that any settlement agreement would make no reference to wind turbines.

Only time will tell how this decision will translate to non-residential property values and whether the models that assessment authorities use will be modified in the nearby future to accomodate for alternative or "green" sources of energy.

When a sale says it all…

“There can be no better evidence of current value of a property than actual evidence of what a willing buyer paid to a willing seller in an arm’s length transaction on or about January 1^st, 2008”

The quotation above is drawn from a recent decision of the ARB ruling on an appeal of a multi-tenant strip centre located in Niagara Falls, Ontario.

At question was an assessment that was 19% greater than an arm’s length transaction that occurred seven months in advance of the January 1^st, 2008 valuation date.

The Board ruled in favour of the taxpayer and adjusted the assessment to the sale price.

Why…

1. It was easy and represented the path of least resistance

2. Hanging their hat on the sale to justify the large adjustment was logical for the Board and

A comparison between fair market rents (represented as gross income) of the subject and comparable properties (and their assessments) supported the subject falling in a range of comparables values of  $2,230,000 to $2,748,000 – the decision and sale price fell right in the middle of this range.

Dunn and Drummond Inc., v Municipal Property Assessment Corp. Region No 18

I came across a link to a recent TED talk (March 12th, 2012) that is worth sharing and encapsulates my previous conversation about "Where do you live"....the invigorating element of this messge is that we all live in a world of abundance and simply need to step back for a minute and understand and be grateful for how fortunate we are....

I have provided the link to Peter Diamandis' most recent TED talk and urge you to invest 16 mins and reflect on how abundant the world around us is (despite what the media would have us believe)

Enjoy your thoughts...

http://www.ted.com/talks/peter_diamandis_abundance_is_our_future.html

This is my first official blog entry and comes as part of our new website. As a idea guy, I'm going to use this blog to share a bit about my journey, ideas and introduce some tools and concepts that I use to filter ideas, address dangers faced by our clients and talk a lot about confidence and the role that it plays for each of us. 

I came across an interesting situation yesterday that emphasizes the inherent risk or danger in today's world.  The issue related to a newly developed retirement home facilitiy that was being operated by a Receiver. The conservation started with an inquiry as to whether the taxes were in line and whether an appeal was warranted in an effort to assist operations and support cash flow from a struggling development.

Within about five minutes of legwork it became apparent that the original opportunity was in fact posing a greater risk and at the end of the day we have identified a sizable liability that was not otherwise understood. My view on this situation focuses on supporting my own personal confidence and those that are potentially affected by this previously unknown or un-stated liability. (i.e. a new and otherwise unknown danger)

Can we help the client with this situation...absolutely. Are there day to day challenges that the client has in execution of their mandate that impact their abilty to be confident and supporting the confidence of their client or stakeholders...absolutely.