12.11.24 BOA Agenda Packet - Laserfiche WebLink

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John McPhaul: Yes, my name's John McPhaul. I'm a North Carolina state-certified residential real estate appraiser. 1 I am not an MAI. 2 3 Kevin Hornik: That is my mistake then. 4 5 John McPhaul: The institute would get angry if you claimed you were an MAI and you're not. 6 7 Leon Meyers: Can I ask you fellas to move a little closer to the microphone? 8 9 John McPhaul: Okay, yes, yes. I was asked to determine, basically, as y'all are aware, the ordinance is trying to 10 protect external depreciation to surrounding properties. There are three types of depreciation: 11 physical, functional, and external. And this would be similar to having a hog farm or something come 12 in and disturb the neighbors. 13 14 Kevin Hornik: To be clear, I don't believe Mr. McPhaul is testifying that this use in particular is similar to a hog farm. 15 Is that correct? 16 17 John McPhaul: No, no, no. Not at all. It's very benign. But what I'm tasked to do is determine if any nearby or 18 surrounding comparable properties have seen a diminution in value from the input of certain uses 19 like this. And so, what I did say I found two nearby kennels. There was a Bingham kennel and also 20 the Doggy Spa and Daycare. And they're all fairly close by. And what I did is I did about a 3-mile 21 radius out from them and did comparable sales for the last 5 years of single-family homes nearby. 22 23 Kevin Hornik: John, before we dive in too much further, I would just ask that the board accept Mr. McPhaul as an 24 expert in real estate appraisal. 25 26 Leon Meyers: Any objections, board members? Mr. McPhaul is accepted. 27 28 Kevin Hornik: All right. And what I'll do before we dive in, I'll ask that we pass out these market analysis reports 29 that Mr. McPhaul has prepared. 30 31 Leon Meyers: Thank you. Go ahead, Mr. Hornik. 32 33 Kevin Hornik: I'll ask Mr. McPhaul to go ahead and explain the methodology and the process that he went through 34 in conducting this analysis. 35 36 John McPhaul: In order to prove there would be an external depreciation caused by a nearby kennel, you would 37 have to have a sale of a home before the kennel was put in and one afterwards that showed a 38 diminution in value. And it would be so difficult to separate out, because of the way that the market 39 has been appreciating over the past 5 years since 2019, to determine that any, I guess at this point, 40 lack of appreciation would be attributable to the kennel. And I believe that the usage of the property 41 as a kennel would not impact any of the nearby property because the site is so large, and it actually 42 is down in a hole, too, so that's also going to, I believe, abate a lot of the noise or anything else. But 43 that's not my end of the world. My end of the world is does it hurt the value, and it doesn't appear 44 that it does. 45 46 Kevin Hornik: And so just to be clear, based on your analysis of similar uses and sales of surrounding properties, 47 it's your expert opinion that the proposed use will maintain or enhance the value of contiguous 48 properties. Is that correct? 49 50 8