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APPROVED 5/10/2010 OC Board of Adjustment – 3/8/2010 Page 67 of 86 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 James Carter: I understand what you are saying about increasing in value, you have two houses, one near a kennel and one further out, same house, was that 9% or 3%, I understand that. How could you have a control group to have a negative impact? Tom Tolley: I don’t believe these; I believe these numbers are meaningless. I believe that what was selected and what was looked at cannot provide you any evidence of whether this has a negative, positive or no impact. Now to answer your question, if I believe these numbers, I would say to the board members once again, is if your house is next to a dog kennel and it is going up 3% a year, that is appreciation, your property is going up but if you found out that your brother-in-law three miles down the road has the same size house you do built the same time and he is getting 9% just five miles away and he doesn’t own a kennel. I think in your mind that would be a negative impact. That is my opinion as an appraiser and then once again looking at how factors affect the value. I am not going to argue that any of those show depreciation so if you baseline is that it has to depreciate to be negative, then I can’t say that but my baseline is that if yours is getting less because once again, there are a lot of other factors that affect appreciation besides the kennel or anything else. The fact that you are in Orange County or Durham or Wake County, your property value goes up more than living in Orange County. The argument would be that my property values are going up because of my location because I am in Orange County but they are not going up as much as your neighbor five miles down the road that doesn’t have a kennel. That is my baseline is that there are going up at a lower rate than other homes or than they were before the kennel came in. I just want to clarify that I believe the numbers in this report are totally meaningless. I don’t believe you can infer anything from these numbers because the data where it could be collected, there was no data to collect. James Carter: If you are going to have both of these factors involved, how do they correlate in property value. You mentioned an Impact Analysis and Data Analysis, my question if that if you are going to have Impact Analysis and Data Analysis, how does that correlate the property value? Tom Tolley: I am not sure I understand what you are saying. James Carter: You mentioned earlier about an Impact Analysis. Tom Tolley: As opposed to an appraisal? James Carter: Right. You also mentioned the fact that you couldn’t find appropriate dates… Tom Tolley: I am not saying always but in a lot of cases, it is very difficult to do. It is very difficult to find data and I have done this for a lot of different types of properties. I have looked at it for kennels, for adult establishments, it is very difficult to find enough sales, and you’re a statistics guy, you can’t find one or two, you have to find enough data to provide a proper sample in order to make a judgment and I am saying in this case, the best places to go for that data, there was not enough, obviously not enough or I am sure Vic would have used it. I am saying that once you get to that point and go to where the data should be to really give you an answer, if there is no data there, you don’t just hunt until you find some as opposed to an appraisal where I have got to go wherever I need to find that data because I have to do an estimate of value for the bank because I am trying to get the best estimate I can, that is my charge when I am doing an appraisal. Once again, this not trying to find a value, this is trying to find what the impact is and you can’t just go and accept anything as a dapple. Mark Micol: Would you accept Days on the Market liquidity as a data point if you have a lack of sales? Tom Tolley: I think you could use Days on the Market. Mark Micol: For those two kennels. Tom Tolley: If you are seeing a longer Days on the Market but once again, that has to be in a vacuum because right now, in general, you could be 100 miles from a kennel, your Days on the Market are high for most properties. Mark Micol: For those two kennels, would you use listing established?