Turbine view causes property value loss

Can't miss them: turbines seen from the Wolfe Island ferry dock
Can’t miss them: turbines seen from the Wolfe Island ferry dock

One of the fictions maintained by the Ontario government and the corporate wind power development industry and its lobby organization is that property values for properties near wind power projects are not affected by the industrial power operations.

This, in spite of clear evidence from real estate appraisers and Realtors (Lansink, Lxemburger, McCann, etc.) and in spite of the fact that the Ontario Real Estate Association (OREA) lists wind power developments on its Sellers Property Information Sheet as a negative feature that should be disclosed…along with the existence of or plans for garbage dumps an quarries.

The Municipal Property Assessment Corporation (MPAC) released a report a few months ago, claiming there was no impact on assessed values (not the same as appraised  values) but even with MPAC’s carefully selected data set and contrived study parameters, there is evidence of a 25% decline in assessed value.

Here now is a report from the Watertown Daily Times, on property values at Cape Vincent, which is affected by the wind power development on nearby Wolfe Island in Ontario.

Realtors say Wolfe Island wind turbines caused waterfront home prices to plummet

By TED BOOKER
TIMES STAFF WRITER
PUBLISHED: SUNDAY, JUNE 1, 2014 AT 12:30 AM

CAPE VINCENT — Realtors say the value of waterfront homes in the town has slid steeply over the past five years due to the eyesore of Wolfe Island Wind Farm, creating a buyer’s market for those who don’t mind looking out at turbines.

Amanda J. Miller, broker/owner of Lake Ontario Realty, Chaumont, said brokers recently have sold waterfront homes on Tibbetts Point Road off the St. Lawrence River for up to $300,000 less than they were priced at five years ago. The 86-turbine wind farm on Wolfe Island, Ontario, was built from summer 2008 to June 2009.

In one case, “a couple of years ago we had a waterfront house that sold for $300,000 that was in the mid-$600,000 range before,” Ms. Miller said.

Though few waterfront homes on Tibbetts Point Road have been sold in the past five years, Ms. Miller said there recently has been an uptick in buying activity. She said that brokers sold three waterfront homes during the past year. Those homes, previously listed in the $700,000 to $800,000 range, sold for $515,000, $530,000 and $615,000. She said that buying activity increased after the news in February that BP Wind Energy abandoned its 285-megawatt Cape Vincent Wind Farm project.

“Property values on Tibbetts Point Road started declining about five years ago, but it’s pretty much bottomed out now and things are starting to sell again,” Ms. Miller said. “A lot of people who struggled to sell their homes had to drop their prices. But I think things are going to start to slowly repair themselves, because the Cape Vincent Wind Farm battle is over.”

Ms. Miller said a “cloud was lifted off the market” when the BP Wind Energy project was scrapped, boosting the confidence of buyers to invest in waterfront property. She said there will continue to be a pool of buyers who are interested in buying affordable waterfront property and are willing to put up with the view of Wolfe Island Wind Farm.

“There’s no more questioning about whether something might happen that will further affect values,” she said. “Now you’re only left with dealing with the wind farm on Wolfe Island, and people are starting to realize the real battle is over — whether they’re pro- or anti-wind. The burden has been lifted and the market will rebound.”

Cape Vincent Assessor Denise J. Trudell said the value of high-end waterfront properties on Tibbetts Point Road has gradually slid in recent years because of an undesirable view of Wolfe Island Wind Farm. As an example, she cited a home at 32519 Tibbetts Point Road that was sold for $700,000 in 2007; it sold in March for $510,000.

“Homeowners don’t think their property is worth as much because the view is not as desirable as what it used to be,” Ms. Trudell said. “I would say there has definitely been a decline in people looking for that type of high-end property. It has certainly had an effect on the property values along that area. But it all depends on how you want to look at it. I had a property owner two weeks ago tell me they find (the turbines) enchanting and like the view.”

Lesa M. Plantz, broker for Prudential 1000 Realty of Clayton, said that some buyers are attracted to homes on Tibbetts Point Road because prices have sharply fallen since turbines were erected on Wolfe Island. But until recently, there haven’t been many buyers interested in the waterfront property.

“When the windmills were first out there, absolutely nothing sold,” Mrs. Plantz said. “And with the continuing controversy going on with the windmill issue in the Cape, there was definitely a steady decline in sales. We had property sit for a couple of years that would have normally been sold in a couple of months.”

To illustrate that point, she said that a three-bedroom, 2,411-square-foot waterfront house on Tibbetts Point Road that was listed for sale for nearly $800,000 in 2010 gradually declined in price until it was sold in March for $515,000. The price of that home had fallen to $625,000 in 2012, and then to $569,000 in 2013 before dropping to its final sale price.

But Mrs. Plantz said she expects that buyers will become more confident in the market now that BP Wind Energy’s massive project is dead…

Read the full article and comments at http://www.watertowndailytimes.com/article/20140601/NEWS03/706019897

 

 

UWO study: life not good for turbine neighbours

Western University researchers calling on governments and wind farm developers to avoid feeding war of words 86

By John Miner, The London Free Press

Wednesday, May 21, 2014 8:02:11 EDT PM

In a study published in the journal Environment and Planning, the Western geography department researchers found people who have raised health concerns and other objections to wind turbines are denigrated, dismissed and ostracized by supporters of the developments in their communities.

They also endure shots by senior politicians, such as former premier Dalton McGuinty, who dismissed health concerns as “unreal.”

The treatment only makes the situation worse for individuals with concerns, said associate geography professor Jamie Baxter, one of the study’s authors.

“If you get right down to the micro level of the community, life is not good for these people,” Baxter said Wednesday.

It was in face-to-face interviews researchers heard supporters of the turbines making light of the problems of those opposed, with comments such as “A lot of people live to be annoyed” and “Well, you know, I guess if you stood here long enough you’d get dizzy looking at them . . . watching those blades go around.”

Health concerns reported by opponents included pain, dizziness, sleep deprivation and loss of balance.

The study found the majority of people in both communities supported the existing wind farm projects within the communities — 80% in Port Burwell and a statistically significant lower 63% in nearby Clear Creek.

But the researchers said the support was more “pragmatic” than “enthusiastic.” Most in favour said it was simply a “better alternative” than other energy choices. Those opposed were quite emotional, expressing anger, disappointment and frustration. …

Take the poll, read the full story and comments here

WCO: MPAC study a “self-serving” exercise

WIND CONCERNS ONTARIO

STATEMENT ON MPAC 2012 ASSESSMENT BASE YEAR STUDY: “IMPACT OF INDUSTRIAL WIND TURBINES ON RESIDENTIAL PROPERTY ASSESSMENT IN ONTARIO”

April 25, 2014

The Municipal Property Assessment Corporation or MPAC, the independent property assessment body which reports to the Ontario Ministry of Finance, released its long awaited report on the effect of industrial wind turbines on property assessment in Ontario in mid-April.

Anyone waiting for this report, which was more than a year late in coming, was disappointed: despite studies done by real estate appraisers in Ontario showing significant loss in value for properties near wind turbines, MPAC said it “cannot conclude any loss in price” due to proximity to a wind turbine.

Wind Concerns Ontario consulted with several individuals including real estate appraisers and finance professionals about the MPAC report.

“It’s just a self-serving, bureaucratic  exercise in mathematics done by MPAC for their government masters,” said Wind Concerns Ontario president Jane Wilson. “The study was done by assessors, not appraisers—this was not a real-world study using on-the-ground valuation techniques such as direct comparison to property sales.”

In fact, Wilson said WCO’s advisors point out that the MPAC study actually does show a property value loss of 25%. “They claim there is no value loss, but then they present a chart that shows there is, and the effect extends out as far as five kilometers,” Wilson said.

What they left out

What MPAC left out of the study is more interesting than what’s in it, says Wind Concerns Ontario.

Here’s a summary:

-MPAC studied areas near turbines 1.5 megawatts or larger in capacity—this excludes areas with older, less powerful but still large-scale turbines; these are areas where studies by independent real estate professionals have indicated significant property value loss.

-MPAC used only sales after 2008, which means for areas like Kincardine and Ripley, the damage was already done, and is reflected in the data they are using for comparison

-MPAC chose not to include properties that are now vacant, such as those that have been purchased by wind power developers as they have become uninhabitable

-MPAC left out the sales that would have been most informative, i.e., those that sold for significantly less than their assessed values and surely demanded some further investigation before being dismissed.

-MPAC as assessors study sales data only—there is no data on houses listed for sale that do not sell, or which are on the market for extended periods of time

U.S.-based real estate appraiser Mike McCann examined the study and concluded that the assessors went against their own professional standards for assessment methodology: “the IAAO (International Association of Assessing Officers) standards discourage regression analysis and instead recommend the use of paired sales methodology, with direct, detailed comparisons of individual sales data, near and far from the environmental disamenity in question,” he said. MPAC’s regression studies actually show a loss of property value, he explains, when the raw data is sorted by distance, yet the authors somehow concluded there was no impact on value.

The real meaning of MPAC’s report

Prior to the Green Energy Act being passed in 2009, countless municipalities asked the Ontario government for economic analysis of the impact of wind power projects on their communities. “They never got that,” says Jane Wilson. “And the Auditor General in his 2011 annual report said Ontario never did a cost-benefit analysis for the impact of wind power generation projects on Ontario’s economy—we never got that either.

“This government doesn’t want the public to know the true impact of its decision to rush into large-scale industrial wind power on Ontario’s small towns and rural communities—property value loss would be one metric of just how badly this decision has harmed our economy.”

Instead, Wilson says, “ MPAC obliged its government masters by coming up with this flawed and self-serving study that was designed to produce a specific result, which will doubtless now be used by the government and its wind power industry partner to put a ‘chill’ on requests for re-assessment, and on legal actions based on lost property value.”

CONTACT

Jane Wilson WCO.president@gmail.com

MPAC study available here.

MPAC sales chart showing loss of value: http://www.mpac.ca/pdf/AppendixD2.pdf

 

 

 

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MPAC releases property assessment report

More than a year past its scheduled release, the report from Ontario’s Municipal Property Assessment Corporation (MPAC) on the effect wind turbines may have on property values has just been released.

You may see the report and its statistical appendices here: http://www.mpac.ca/property_owners/IndustrialWindTurbines.asp

We will be conducting an analysis of the report and will provide an opinion on the findings, soon.

Turbines ‘tarnish property values’

Turbines ‘tarnish property values’ | The Australian:

A FEDERAL magistrate has accepted that wind farms slash the value of surrounding properties, saying she found it “hard to imagine” any prospective buyer could ignore such development.
In a decision believed to be the first time an Australian court has recognised the adverse financial impact of wind farms for neighbours, magistrate Kate Hughes ruled a property would be worth 17 per cent less if a 14-turbine facility were erected next door.
For one part of the property, in regional Victoria, she accepted a 33 per cent fall in value was likely.
The ruling came in a family law case published this month amid separation proceedings for the couple who own the property.
Ms Hughes heard two separate valuers had agreed the wind farm would have a negative effect on the adjacent property, which the couple has divided into three blocks. “The expert value of the three blocks of land varies significantly depending on whether or not it is assumed the proposed wind farm will go ahead,” Ms Hughes said in her judgment.
“The impact of the proposed wind farm is apparent from the valuation report.”

Complete article at The Australian (subscription)

MPAC documents show some Wolfe Island property values plummet by over $100,000

An article in the Mitchell Advocate last week referenced MPAC lowering assessments on Wolfe Island.  Quixotes Last Stand now provides some specific properties.

MPAC documents show some Wolfe Island property values plummet by over $100,000 | Quixotes Last Stand:

Here are the addresses of residents (near the wind project) who were granted assessment reductions of over $100,000 by MPAC in the Township of Wolfe Island from 2008 until Jan. 2012.

Reduction

82 – Oak Point Rd. -$118,000
23 – Nine Mile Point Rd. – $143,000
429- Nine Mile Point Rd. -$119,000
433 -Nine Mile Point Rd. -$117,000
496 -Nine Mile Point Rd. – $107,000
136 – Lucas Point Lane – $101,000

Some of these properties are on Wolfe Island and the rest are on Simcoe Island. Simcoe Island is located just off the west end of Wolfe Island where the Wind Project is sited (see map attached). According to an e-mail I received from Gail Kenney (the prominent resident appealing their ARB decision on Wolfe Island) the Wind Project can be seen and heard from most of the south shore of Simcoe Island. She indicated that property sales have all but shut down on Simcoe Island. She now has this list from MPAC as well (they did not have it at the time of their ARB hearing).

Read the rest of the article at Quixotes Last Stand:

The Kenney’s MPAC assessment  appeal was reported on a number of places, including here.
Notably, and unusually for a property assessment appeal, MPAC had a lawyer as did the Township of Frontenac Islands.
Perhaps the lawyers were procured not because MPAC felt the Kenneys were wrong, but because they felt the Kenneys were right.