Potential Land Value Allowed

Northern Advocate, 26 April 1947, Page 4

Potential Land Value Allowed

The potential value of land to the vendor was allowed by the Land Sales Committee in Whangarei on Thursday when the Maungaturoto Dairy Company sought approval to the purchase of a 11-acre section to extend its business.

The chairman of the company’s directors (Mr D. A. Finlayson; told the committee that the section was not only the most suitable one. but also the only available site to be had close to the factory. Attempts had been made to secure it before, but had lapsed until now, and it was imperative to acquire the land to facilitate the running of the business. The price asked for the land was £IOOO and the private valuation by Mr D. G. Morrison was £906, while the Crown valuation by Mr A. M. Farrell was £BBO. The Crown representative (Mr L. A. Amodeo) and Mr A. C. Lamb, who appeared for the dairy company, however, agreed to a figure of £893. Mr Morrison told the committee that he had valued the land for the vendor as a residential, and not as a business section. After the committee had adjourned to consider its decision, the chairman (Mr R. E. Burton) said: “We have examined this case very carefully and have asked ourselves if the vendor always looks to this purchaser as one who would be prepared to pay a little more for this section. “Mr Finlayson has shown us that this section is the only possible one for the dairy company to use for extensions and that its purchase was contemplated some time ago. “Now if a business requires to extend it will build, if possible, on a site adjoining, but in this case the only land available is opposite. “We consider that this land opposite has always had a potential value to the vendor as a site for the dairy company to extend on, so we will allow a potential value to the extent of £57. “Consent is granted to a price of £950.” SECTIONS FOR DRIVERS No allowance was made for potential value in a case heard earlier by the committee when the Whangarei Dairy Company sought approval for the purchase of three sections in Morningside Road for £6OO. Mr A. Steadman, counsel for the vendor, told the committee that his client had genuinely held the sections on the chance of selling them to the dairy company. Eight or nine years ago his client had been approached by one of the company’s drivers to see if he would cut up the land, place small dwellings on it, and then sell them to the drivers. His client did not do this, but decided to keep the land in the hope of getting an offer from the company. Questioned by the Crown representative (Mr L. A. Amodeo). Mr Steadman said that there was no demand for sections in that locality at the time. The drivers wished to buy the land to be near their work for an early start. Mr Lamb, appearing for the purchaser, told the committee of the difficulty the company had experienced in getting houses for its workers. The secretary of the company (Mr C. R. Wilkinson) said that it wished to acquire sections to house key workers. EXTRA VALUE DISALLOWED “To attract desirable men," Mr Wilkinson said, “it is necessary to secure houses for them near their work, or in Whangarei. “Because of their position, these sections have a bigger value to the dairy company than to the average purchaser. “Our early workers could easily return home to breakfast, and, because the houses would be together, their building and maintenance costs would not be as high as if they were apart. “We have not been able so far to get sections that satisfy us in Whangarei.” “If an allowance is made in this case, we would have firms wanting privileges over private buyers,” commented Mr L. J. Brake, a member of the committee. “We do not want to establish extra value, but we want to get the section as cheaply as possible at a price that satisfies the vendor,” replied Mr Wilkinson.

The committee decided that this was not a case where potential value could be allowed, and approved a price of £315, which both the Crown and private valuers had agreed on.