How do you value a corridor?
While city officials work to raise $40 million to buy the old Norfolk Southern rail line, a city appraisal says the land is worth much less.
The city won't release the appraisal, citing "ongoing negotiations," but officials familiar with it said it values the corridor, the likely route for a light-rail project, at about $6 million. The assessed value of the rail line -- the amount Norfolk Southern pays taxes on -- is $7.3 million.
The $40 million asking price is about what a 2003 Norfolk Southern appraisal determined the land was worth. The line is 10.6 miles long and 66-feet wide., crossing the city from Newtown Road to Birdneck Road.
City officials are trying to pull together $40 million in local, state and federal money. The City Council has informally agreed to put up $10 million.
Mayor Will Sessoms, a light-rail proponent, said the Beach is close to a deal with Norfolk Southern. So debate over what the land is worth, which stalled past negotiations, may be moot.
This is an interesting issue. How do you value corridors? First one should look to the title to determine whether the corridor is held in fee or easement. If in easement, what are the limits of the easement? It is difficult to ascertain the extent of the interest from the article.
