Property values have fallen massively in the last 3 years, and the only type that has fallen even more than commercial property, is
undeveloped commercial property (Since most these buyers generally require massive, bank lending!).
I lack sympathy with the owner, since the land he’s owned for 40 years hasn’t been used in decades. People who hold derelict
property, in the knowledge that (in exchange for doing nothing) it’s value can only go up, often become seriously guilty, of holding the economic
development of an area backwards.
Nobody likes to build a new anything, next to a derelict anything. That, and the development that does happen, is often diverted to the wrong place
(i.e. away from the town-city centre). This cements the need for extra road-widening, and even quarter of a mile can add millions of (otherwise
completely unnecessary) annual road miles (for the States traffic).
The article says
If it’s worth 4 million
Los Rios may be able to buy the property in question for the current market value – about $4 million –
, and that’s what State wants to pay, then there is nothing unconstitutional about it!!!
They may well have offered him up to 8 million for it (in a deal that never happened) 3 years ago. But if I offer to buy your house, for twice its
worth, it doesn’t make it worth twice as much, but only twice as valuable (for as long as my offer lasts). No more of my offer = no more of twice
The owner is simply guilty of trying & failing to extract as much value for his property as possible. I bet if he had been willing to sell for 1-2
million less, 3 years ago (say out of a genuine desire to advance public, education needs) that not only would his land be already
area (and providing employment) but he’d be richer.
So he makes the wrong business decision, yet seems to believe that because the city is buying from him, the city should also subsidise his (entirely
theoretical) businesses losses. I Think He’s The Who’s Being Outrageous!!!
I just hope the City can get it for less than 4 million (when they recover they’re legal costs) and I hope (by chance) its value will continue to
plummet, so that they have more money to spend on turning this disused area, into well-equipped places, of peoples education.