What Your Land is Worth
The base negotiation price
I have heard recently that a few offers have already been made from LS Power for easement rights on some parcels. Some have already signed agreements. For those landowners who feel that they acted appropriately and have been justly compensated, we’re truly happy for you and we will back you on your decision.
For those who haven’t made a decision yet or have been made an offer this is what I know. LS Power is going to (or has already) obtain land values for each location and they’ll get land values based on type of land - forested vs. farmland vs. cleared. They will offer you 2 times that value for an easement to your land, with the minimum offer of $7,500. They will offer a 25% bonus for a quick 30 day close.
For example, if the easement requires 1 acre of your land, and the value they obtained for your area is $2,000 per acre, they could offer you $4,000. But the minimum offer is $7,500. So they’ll offer you $7,500. And they’ll give you an extra 25% ($1,875) if you agree to close on the deal within 30 days.
For some people, this is enough.
But for others, this deal is pretty one sided. It doesn’t take into consideration any value loss for your property due to a transmission line corridor. I’ve heard from an appraiser that this can be up to 40%, and even up to 60% loss depending on the land. So if your property was worth $500,000 before a transmission line, it might be worth only $300,000 after the line is built. The offer of double land value doesn’t come close to touching property valuation loss.
Many of us live where we live for a reason - maybe because the property has been in our family for generations. Maybe because we selected the property to specifically suit our family’s needs and dreams. Double land value doesn’t cover the loss of generational land, nor does it cover the loss of a dream. Some of us will never again find land exactly like where we live now.
So for these reasons, I urge you to consider carefully before you sign away an easement right to your property. I am working to bring on legal council to help us negotiate this issue and other issues. I had hoped to have everything lined up weeks ago, but it’s taking more time than I had hoped.
If you’re going to sign a deal, please, PLEASE, have your own legal council look it over first. If you’d like to join other land owners in collective bargaining, we are preparing a campaign. Stay tuned for more news soon!