Web Hosting, Website Development, Design by Humanear in Sioux City, Iowa

 

The option price for farm land and homes/acreages is based on the assessed value for taxation purposes as set by the Union County Assessor’s Office.

 

Farm Land:

The option price for farm land is the assessed valuation multiplied by three(3).  There may be some rounding taking place that will bring option prices slightly above or below the factor of three. 

 

There are also premiums being paid for irrigation and drain tile.  Irrigated land is priced with an extra $500/acre and tiled land is given a $250/acre premium.

 

Based on these figures, farm land is being optioned at 2.2 to 2.6 times fair market value.

 

Homes/Acreages:

The option price for homes and acreages is the assessed valuation multiplied by one and one half(1.5).  There may be some rounding that takes place to bring the option  price slightly above or below the factor of 1.5.

 

There is no regard taken as to what replacement cost may be on a home.  Nor is there any consideration for buildings, landscaping or other improvements.

 

Based on these figures, homes and acreages will be optioned at roughly fair market value.  According to Gorilla realtor Chuck Sutton this formula was used to option one acreage inside the “buffer zone” and that price set the ceiling for what they would pay for acreages.  Based on the formula, it is highly unlikely that the home in question could be rebuilt today for that price.

 

When the Gorilla realtors were asked about the discrepancy between the price formula for farms and acreages Chuck Sutton stated “We don’t want acreages, we only want farm land.”  He went on to elaborate that they will not make offers to acreage owners unless they fall directly under the footprint of the facility.  He said it will be at least two years until they contact acreage owners and they will be moving dirt behind their homes when they make a cash offer.  Sutton also stated that there will be acreage owners left in the “buffer zone” when the project goes forward.  We can only speculate as to what will happen to the values of homes that are left nearby the Gorilla Project.