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McCann Summarizes Property Value Studies

Michael McCann Literature Review

Summary: Wind Turbine – Property Value Impact Studies

Independent Studies

Author

Type

Year

Location

Method

Distance

Impact %

Lansink Appraiser

2012

Ontario

Resale(1) < 2 miles (39%) Avg. 23%-59%
Sunak Academic RWTH Aachen University

2012

Rheine & Neuenkirchen

Geographic Weighted Regression (2) 2 Km (25%)
Heintzelman Tuttle Academic Clarkson University

2011

Upstate NY

Regression Resale & Census Block 1/10 to 3 miles Varies to > (45%)
McCann Appraiser

2009 -2012

Illinois, (3) MI, MA, WI

Paired Sales & resale < 2 miles (25%) 20% – 40%
Gardner Appraiser

2009

Texas

Paired Sales 1.8 miles (25%)
Kielisch Appraiser

2009

Wisconsin (4)

Regression & Survey Visible vs. not visible (30-40%)(24-39%)
Luxemburger Broker

2007

Ontario

Paired Sales 3 NM (15%) $48,000
Lincoln Twp. Committee(5)

2000-2002

Wisconsin

AV ratio 104% v. 76% 1 mile (24%)

Wind Industry-Funded Studies

Canning & Simmons Appraisers (CANWEA)

2010

Ontario

Regression Paired Sales Viewshed(6) (7%-13%) (9%)
Hinman AcademicISU ‐ REP Student thesis

2010

Illinois

Pooled Regression Realtor survey 3 miles1/2 mile No SS (11.8%) (7)
Hoen USDOE-funded LBNL

2009

9 states

Pooled regression 5 miles 3k ft – 1 mile Increases (5.6%) (8)
(Adapted from “Wind Projects & Land Value” by Michael S. McCann, CRA, McCann Appraisal, LLC. Chicago, Illinois © 2012. Used with permission.)

Sources

1. Lansink Resale study uses resales from developer to private buyers, with Easement in Gross condition of sale. Buyer accepts noise impacts, etc., waives liability
2. Lots only. No pooling of data
3. McCann Illinois study & research updated, multiple states
4. Kielisch regression lot sales; Realtor survey residential
5. Committee compared actual sale prices vs. AV and found homes up to 1 mile sold @ 76% of AV, and > 1 mile @ 104% of AV
6. Usually cited as being a study that found no impact. However, all methods used yielded negative numeric indication. Author concludes no statistical significance.
7. Cites Realtor who believes no impact on value > 3 miles. Concludes some results indicate “wind farm anticipation stigma” (11.8%)/Pg.55. Author states “the results neither support nor reject the existence of a wind farm nuisance stigma after the wind farm achieved commercial operation….likely due to only 11 properties selling during operations within 1 mile of wind farm.” Good neighbor payments to some nearby neighbors. Values near wind farm appreciated $13,524 after operation, following $21,916 decline measured under anticipation stigma theory. (Net loss of $8,392 pre‐ vs. post operation./Pg. 120.
8.Study excludes developer resales with 36% & 80% discounts from buyout price. Pooled data from 9 states 24 projects insures lack of statistical significance for value loss examples near turbines. Other sales nearby excluded due to deviation too far from mean and resale.

About Michael S. McCann:

  • 30 years appraisal & consulting
  • Most types of commercial, industrial & residential property
  • State Certified General Appraiser
  • Certified Review Appraiser (CRA)
  • Member – Lambda Alpha International
  • Qualified & testified as expert witness in 21 states, circuit courts & federal court
  • Appraised variety of property value damage situations
  • Consultant to governmental bodies, developers, corporations, attorneys, investors and private owners
  • Appointed by Federal Court as a Condemnation Commissioner
  • Evaluated & consulted 20+ utility scale wind projects in over a dozen states

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