From: victor lohmann <vic@innovative-designs.biz>
Subject: letter to BCBCC
To: "'Anne Castro'" <annecastro@msn.com>, "bobantonsr" <bobantonsr@bellsouth.net>
Cc: "'Daniels, Bob'" <bdaniels@ci.dania-beach.fl.us>, "'Rae Sandler'" <raesandler@live.com>, "'Rae Sandler (Ft. Lauderdale)'" <rae.sandler@WOSUPPLY.com>, "Jay Field" <jfinfll@aol.com>
Date: Friday, February 11, 2011, 9:59 AM

Hi Anne & Bob;

 

Would you please help me to get a letter from the City out to Broward County re the proposed noise mitigation program.

 

This is in response to the last town hall meeting for the Melaleuca Gardens HOA meeting on 2-8-11. Mr. George has made some minor revisions to his proposal but there are some significant problems that remain. I’ve outlined them below;

 

 

In reviewing the revised proposed mitigation program from BCAD(a/o 2-8-11) there are two fatal flaws in its architecture. The stated goal of the program is the long term sustainability of the affected neighborhoods. Mr. Kent George of BCAD has repeatedly stated that his recommendations are to cap any programs participation to between 19-22 homes per calendar year so as to not affect market prices with his program.

 

Given the number of eligible homes and that participation rate the role out period is approx. 30+ years. A home buyer that would enter the neighborhood subsequent to the initiation of this program would presumably go to the end of the line so that the existing home owners would be able to participate first.

 

From a purely statistical perspective this creates a scenario that would make a new home buyer unlikely to participate in the program in his/her lifetime. If the new home buyer were allowed to participate without any seniority, then a great deal of the existing home owners will face the same out come; not having an opportunity to participate in their lifetime. This is in clear contradiction to the stated goal of the program and likely to make it both ineffective and a cumbersome waste of resources.  

 

From a more pragmatic perspective, a prospective new home buyer being properly appraised of the likelihood of being able to participate in the program would almost assuredly pass on the purchase if such purchase were based in part on the programs existence. This scenario would further aggravate the downward pressure on pricing and make the need for the program even more intense.

 

The second flaw is the nebulous nature of fair market value. Mr. George has very clearly stated that the valuation process in his proposals will be based on existing homes based on the value if the runway were not built. While theoretically it may be possible to extrapolate this value, if the affected area were not already artificially depressed in anticipation of the project. Going forward it is not possible to arrive at an objective figure without using homes outside the affected areas. Absent this approach these calculations will be completely undermined in the early years by negative pricing pressure as residents flee the newly built runway. Over the life of the program, the only way to establish an objective basis of valuation is to use properties outside the affected areas that accurately reflect current market conditions. Without a meaningful long term bench mark the programs ultimate success is highly questionable.

 

 

 

 

Thank you,

 

 

Vic

 

 

 

 

 

 

Victor Lohmann

Innovative Designs of Dania Inc.

Luxury Home Builders for Discerning Clients

1404 Nautilus Isle

Dania Beach, Florida 33004

954 921-4318

954 929-2535 FAX

WWW.Innovative-Designs.Biz

CRC 057000

 

 

 

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