If Ridgefield acquires the Bennett's Pond property by eminent domain and Eureka challenges the Town's compensation, who ultimately settles the property's pricetag? As discussed last week, the matter would be left to a panel of referees appointed by the State Superior Court. In addition to the property's recent sale price, these arbiters would likely weigh two other key factors: qualified appraisals and recent comparable sales transactions.

Qualified appraisals

With respect to their sale of the property to Eureka for $7.9 million, IBM has stated that they relied on an experienced appraiser, who determined in 1997 that the property was worth substantially less than $8,000,000.

In April, 1999, the State Land Acquisition and Management Office estimated the property to be worth $14,000 to $16,000 per acre, or $8.6 million to $9.8 million for the 612 acres in Ridgefield. The higher end of this range would give Eureka an attractive 31% return on their investment.

Most recently, the Town of Ridgefield enlisted the services of John Leary, a respected commercial appraiser, to determine the current-market value of the property. Mr. Leary's report is due by the end of February.

Comparables

The referees are also likely to consider the value of comparable undeveloped land marketed and sold recently in Ridgefield and neighboring towns.

Trout Brook Valley -- a 668-acre property straddling the Weston/Easton town line -- was recently acquired by a consortium of government and conservation organizations for $12.4 million. This price of $18,600 per acre fell between the two appraisals conducted for seller Bridgeport Hydraulic, and matched an offer made by a major developer of golf course communities. The property is zoned for 3-acre residential development and is in an area of higher property values than those in Ridgefield.

In November 1999, the City of Danbury purchased 100 acres around Tarrywile Lake for $825,000 from a real-estate development company based in Colorado. The Connecticut Department of Environmental Protection contributed almost half the purchase price. Zoned for residential development, the property lies less than two miles from Bennett's Pond.

The referees will no doubt also consider two less-favorable recent transactions in which Ridgefield took part: the 255-acre Friedman property, purchased by the town for $17.6 million, and the 57-acre Ippoliti property, for which Ridgefield paid $7.5 million. According to a December 3, 1998 story in the Ridgefield Press, the amount paid for the Friedman parcel was $8.5 million above market value, and reflected the desire of the town to extricate itself from litigation. This land is zoned for two-acre residential development, which makes its per-acre value higher than Bennett's Pond. The Ippoliti property was bought with the intention of building a school there.

Conclusion

What's the actual dollar value of the Bennett's Pond property? Ultimately, this may be a matter to be decided by the court-appointed referees. But if logic prevails, Eureka V LLC may well decide that their best strategy is to negotiate sensibly with the Town, rather than risk winding up with a lower settlement price imposed by the Superior Court.

This is the seventh in a series of columns prepared by the Ridgefield Open Space Association (ROSA), a non-profit, grassroots organization dedicated to the preservation of the Bennett's Pond property and open space throughout Ridgefield. For ROSA information, contact: P.O. Box 492, Ridgefield; email: ROSA@mags.net; phone: 431-6662.