Property Values

Property Value Guarantees

Proponents of Industrial Wind Turbines continue to claim that there is no negative effect on property values, however, Apex will not sign a Property Value Guarantee (PVG) with non-participating property owners. Why not?

We need to protect our assets and investments by demanding they sign PVGs.

Our Town Board can help us by passing a Wind Energy Ordinance that requires a PVG.

Sample Wind Energy Ordinances that contain property value protection [1]:

Wind Energy Ordinance with PVG for Redfield, NY, passed in 2018

Wind Energy Ordinance with PVG for Richland, NY, passed in 2018

Wind Energy Ordinance with PVG for Somerset, NY, passed in 2016 - see page 41, #31 for Real Property Value Protection Plan.

Wind Energy Ordinance with PVG for Randolph, NY, passed in 2016 - see page 110 for Real Property Value Protection Plan.

Sample Property Value Guarantee agreements [1]:

DeKalb County, Illinois requires this PVG Agreement.

Adams County, Illinois requires this PVG Agreement.

The town of Hammond, NY requires this PVG Agreement.

Residential Property Values

"A piece of property, after all, is just what someone is willing to pay for it. Markets are about supply and demand, and all things being equal, why would somebody choose to buy a home with an industrial wind farm nearby [3]?"

"The most basic law of economics is that things are valued based on the “Law of Supply and Demand.” It is exceedingly obvious, all things being equal, that many people (due to view, sound, flicker, etc) would choose NOT to buy a home where there are industrial wind turbines close by. (Whether they are right or wrong in their reasons is irrelevant.) These beliefs would reduce demand, which clearly would have some negative impact on the price of such a property. Any report that concludes that there are zero negative property value effects related to wind projects simply can not be considered seriously [2]."

Mike McCann, an independent, non-biased property appraiser from Chicago, talked about the effects wind farms have on property values. Watch his 36-minute presentation here. For over 15 years, Mr. McCann has studied the impact of industrial wind farms on nearby property values, testifying as a qualified expert witness as to his findings in the market. McCann has found that homes within two miles of the turbines decrease in value between 25% to 40%, depending on several factors. Read McCann's Adams County, IL testimony here. Read McCann's report to the Cape Vincent, NY Economic Impact Committee here.

McCann is not the only expert reporting lower values for properties near wind turbines. Appraisal One Group, a non-biased appraiser and expert, found that properties bordering those with wind turbines lost between 39% and 43% of their value. Properties close and near, but not bordering, lost between 24% and 36% of their property value. Read the study here and download presentation slides with facts and figures here. These findings were based on studying the impact of three wind developments with wind turbines up to 389' in height. It is reasonable to conclude that taller wind turbines would have a greater impact. It is also reasonable to conclude 680' wind turbines with improper setbacks of only 1.5x height would have disastrous effects on property values of nearby properties.

Real estate agents have found that the number of days on the market increases, sale price decreases, and number of homes not sold increases with their proximity to wind turbines. Download presentation slides by real estate broker Chris Luxemburger here to read more about his conclusions.

Ontario Superior Court ruled in 2013 that landowners living near large wind farms suffer from lower property values. The court said it decreased property values by 22 - 55 percent [4].

In a letter to our own Town of Barre Board, a new resident of Barre stated, "If we had known that there was a possibility that the tallest wind turbines on land in America would be 900 feet from our property line, if we had known that there would be five in a half mile radius of our home, I assure you that we would not have been fine with it and we would not have moved here." At the October Town Board meeting, this same new resident confirmed that he is moving away because of the proposed Industrial Wind Turbines.

For more links to studies and testimonies click here. Visit Save Ontario Shores. Inc. for more information.

A Barre resident asked an independent appraiser about property values, and this is the response.

*This is an email chain, so read from the bottom up.

*Names have been redacted at the request of the Barre property owner, who has a fear of retaliation by their neighbors.

From: [REDACTED]
Sent: Thursday, December 12, 2019 11:12 AM
To: [REDACTED]
Subject: RE: Appraisal

Well, you could do that, but there are problems with that approach.

A better method is to wait until they go up, then do the appraisal in a Before and After method. This method is used all the time in eminent domain (my specialty). This method appraises your property in the Before condition which is before the turbines and wind farm, with no consideration nor knowledge of the turbines and wind farm going to be in place. Then it values it in the After condition which gives full consideration to the impact of the wind turbines and farm. The difference between the two values is the Loss & Damage due to the wind farm. If I was negotiating with the wind farm I would add “plus cost of relocation” to that compensation using the Federal rules on relocation due to eminent domain action.

[REDACTED]

From: [REDACTED]
Sent: Thursday, December 12, 2019 8:19 AM
To: [REDACTED]
Subject: RE: Appraisal

Thanks so much for the quick reply. Would you suggest having an appraisal done now, before any turbines go up? Then we would have something to compare any future appraisal to. Or does that methodology not really work?

From: [REDACTED]
Sent: Wednesday, December 11, 2019 11:14 AM
To: [REDACTED]
Subject: RE: Appraisal

[REDACTED] home likely will suffer from the presence of the wind farm and more so if these wind turbines are in their view shed. Wind farms and their turbines are similar to an industrial complex in the country. There is no upside unless you are a participant in the income flow.

If you sell now you may have to disclose the proposed wind farm if New York is a disclosure state. I would check with a local real estate attorney on that. If you need to disclose, you will still suffer a loss. It is questionable if the loss would be greater or less than if the wind turbines are already in place. Sometimes the imagination is worse than the reality. However, such supersized turbines have no equal so the imagination may not be as negative as the reality later since it has nothing to compare them to. That is a hard call.

What I can tell you is [REDACTED] home will be negatively impacted either way. That is the terrible truth of it.

There may be a compensation that [REDACTED] could receive for the loss of value if the property owners rise up and demand loss payments. I do not know if that is happening, but it is a means to counter the negative impact.

I hope this helps,

[REDACTED], ASA, SR/WA, R/W-AC

President/Senior Appraiser

From: [REDACTED]
Sent: Wednesday, December 11, 2019 10:03 AM
To: [REDACTED]
Subject: Appraisal

Good morning,

I am interested in learning more about your appraisal services for a house in an agricultural-residential community in Western NY where wind turbines are being proposed. Are you able to determine IF a home will suffer from decreased property values prior to the wind turbines going up?

[REDACTED] struggling with whether to sell now in an effort to get more out of the house, vs staying and value does down.

For reference, the project being proposed is called Heritage Wind by Apex Clean Energy and consists of at least 33 turbines that will be about 680’ tall (tallest on land in our country.) The home is about 1 mile away from the nearest cluster of turbines.

Looking forward to hearing from you,

[REDACTED]

Information found on this website is the work of the source indicated or linked to. Any opinions expressed in articles or on the websites that host them are not necessarily those of Clear Skies Above Barre, Inc. or it's members.

Property Values

Property Value Guarantees

Residential Property Values

A Barre resident asked an independent appraiser about property values, and this is the response.

References

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