LAND VALUES

New Zealand Herald, Volume LXXV, Issue 23149, 22 September 1938, Page 19

LAND VALUES

FIRE STATION SITE

AWARDS OF THE COURT OFFERS MAINLY UPHELD REASONS FOR DECISION The Assessment Court presided over by Mr. Justice 7air gave its judgment yesterday fixing the value of two properties in Pitt Street and Grey's Avenue, which have been taken under the Public Works Act by the Auckland Metropolitan Fire Board as a site for its new central fire station. . The first claim was made by Gordon John Lennox and Harold Dixon Buddie as trustees of the Lennox Estate (Mr. who asked for £16,299 for a property of 1 rood 32 perches on the corner of Pitt Street and Grey's Avenue. The Fire Board, represented I by Mr. North, offered £7IOO and the Court by a majority has v awarded £7200. j The second claim was by Joseph ZamI bucca, manufacturer (Mr. V. H. Meredith), who asked £11.500 for adjoining land and buildings in Tipper Pitt Street. For this tho Fire Board offered £5120 and .a majority of the Court has fixed the value at £5867 10s. Tho Hon. J. Alexander, M.L.C., sat as assessor for the claimants and Mr. W. H. Lunn as assessor for the respondent board. Majority Opinion In announcing tho award in the Lennox Estate claim. His Honor said the majority of the Court considered that the estimates of the returns that might have been derived from a block of flats were of very little assistance in determining the value of the land, because the figures were uncertain and inaccurate and it appeared there was no market for the use of the land for flats. The same considerations applied to the evidence regarding the use of the land for a garage and parking station, and the difficulty of obtaining a licence for a petrol station emphasised the improbability of such a purchaser being found. The evidence of rentals and prices in Ka ran gab ape Road was not of assistance, and the fact that the whole area was in one ownership was only a minor factor. Full weight had been given to the fact that the site was level. Bettor Guide to Value The Court thought that the sale of the Solwvti Shirt Factory property adjoining this land in June last was a safer guide, and this was confirmed by the evidence of Mr. Ranfurly Smith and of the city valuer, Mr. P. F. Not ley. Jt was also confirmed by the probable returns from the property and by a comparison of values in Hobson Street and Federal Street. A majority of the Court thought that the respondent had made a generous allowance in its offer fixing £1750 for the buildings—considerably more than any intending purchaser would allow —but it had to some extent underestimated the value of the land.

" The majority of the Court." said His Honor, "is of opinion that tho offer made by t!he respondent board represented the full value of the land and buildings and allows the sum of £7200 in respect of them." From this a sum of £213 15s already paid was deducted, interest allowed at 4J per tent and £2O to .(.-over contingencies and costs of reinvestment. No costs were awarded to either party, and assessors' fees were fixed at £55 2s 6d, or £ls 15s a day for 3J days, each party to pay its own assessor The Second Claim In Mr. Zambucca's case, His Honor said the Court had proceeded to consider this claim on the basis of the values fixed for the adjoining land. The majority of the Court thought that the claimant had shown that the respondent board, in making its offer, closely approached the full value of the land, but considerably underestimated the value of the buildings. It fixed the full value of the property as £5867 10s and awarded that sum, with interest at 4J per cent, £3O to cover contingencies and costs of reinvestment and £125 (inclusive of witnesses' expenses and disbursements) for costs of the claimant to be paid by the respondent.

His Honor fixed the costs of each assessor at £3l 10s, or £ls 15s for each of two days, each party to pay its own assessor.