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32 Draft <br /> 1 <br /> 2 John McPhaul: I have. <br /> 3 <br /> 4 Kevin Hornik: All right. I would like to tender Mr. McPhaul as an expert in real estate valuation and appraisal. <br /> 5 <br /> 6 Leon Meyers: Questions on Mr. McPhaul's expert status? All right. <br /> 7 <br /> 8 Beth Bronson: Is there an associated tab with this? <br /> 9 <br /> 10 Kevin Hornik: No, Mr. McPhaul was testifying to his background. <br /> 11 Beth Bronson: Okay. All right. I just wanted to make sure. <br /> 12 <br /> 13 Leon Meyers: Continue. <br /> 14 <br /> 15 Kevin Hornik: Mr. McPhaul, can you tell the Board a little bit about what it was that you were hired to do on <br /> 16 behalf of the applicant? <br /> 17 <br /> 18 John McPhaul: Yes, I was hired to find out if the use on the property would, would impact surrounding <br /> 19 property. There are three forms of depreciation, physical, functional, and external. External <br /> 20 would be having a hog farm move in next door to you because then if you had that odor drifting <br /> 21 over, it would create an externality which may affect value. And so, that's what I looked at. 1 <br /> 22 looked at the last 6 years, I believe 72 months prior to when I did this work in, I believe it was <br /> 23 May of this year and looked at, there's a 1,000 foot, I believe, notification area. And so, I'd <br /> 24 used that as my footprint, and I looked at sales of both homes and land within that area. <br /> 25 <br /> 26 Kevin Hornik: And as part of your review and analysis, did you prepare a report? <br /> 27 <br /> 28 John McPhaul: I did. <br /> 29 <br /> 30 Kevin Hornik: And is that report concluded with that, that report I'll represent to the Board is included within <br /> 31 the agenda materials that you should have in front of you. <br /> 32 <br /> 33 John McPhaul: Okay. <br /> 34 <br /> 35 Kevin Hornik: So, can you tell me a little bit about how you went about performing your analysis? What sort <br /> 36 of things would you have looked for in order to determine whether there was an adverse <br /> 37 impact? <br /> 38 <br /> 39 John McPhaul: I would've looked for a diminution in value from the time that this began probably in you were <br /> 40 saying'23 and'24. And there apparently,there has been no, pretty much all of Orange County <br /> 41 has been in an appreciation. There was a blip about 48 months prior to that where there was <br /> 42 values did recede slightly, but then they came right back up. And so, when I started this, 1 <br /> 43 want to say the average home price was, 1, 1 can't recall, I don't have it right here. Let me see. <br /> 44 I've got it right here in front of me. Yeah. The average in the median is how we typically do <br /> 45 it. You take an aggregate and see what's the most occurring. And the average and median <br /> 46 value of homes in that same area had gone from an average of 399 and a median of 271.5 to <br /> 47 6 years ago to currently an average of 836,000 and a median of 565. The land went from an <br /> 48 average cost of, or average sales price of 112,000 and a median sales price of 112,000 to <br /> 49 currently 350,000 and 345,000. So, there was no way to prove a diminution in value of the <br /> 50 surrounding property. <br /> 32 <br />