Agenda - Council - 10/25/1983 - Laserfiche WebLink

Home

I I ! I I I I I I I I I I I I I I I 15 28 '~ APPENDIX B STUDIES OF PROPERTY VALUE IMPACTS RESULTING FRQM UNDESIRABLE PUBLIC AND PRIVATE FACILITIES "The Effects of Nonresidential Land Uses on the Prices of Adjacent Housing: Some Estimates of Proximity Effects," by David M. Grether and Peter Muszkowski, Journal of Urban Econo~ic~, 8; 1980. This paper reports the results of 16' market experiments designed to produce measures of the effects of nonresidential land uses on the prices of nearby dwellings. Each experiment consists of a sample of home sales in a homogeneous neighborhood located near a single nonresi- dential land use, e.g,, industry, commercial, high-density dwellings and highways. The data consists of price, physical characteristics of the dwelling, distance from the nonresidential use and the date of sale for each transaction. Statistical analyses are used to estimate the significance of the distance on home prices. No systematic relationship between nonresidential land use per se and housing prices is found. "Nuclear Power Plants: Effects on Property Value," by James R. Webb, ~A_Pprai_sa! Journal, April 1980. The Three Mile Island incident in Pennsylvania focused a great deal of concern on the safety of nuclear power plants. As of Jan. 1, 1979, 72 nuclear power plants were in operation in the United States, with 94 more under construction and 30 in planning stages. This article addresses how the presence of these nuclear reactors affect property values. This study indicates that people are very apprehensive about living within sight of a nuclear power plant. Although people outside visible distance of a nuclear facility definitely would be affected by. any major incident, the results of this study seem to indicate "out of sight, out of mind." If people do not have a visible reminder of a nuclear reactor's presence, they seem to minimize the effects of living near it. The author questions whether property values will bounce back 'if the estimated losses in the values are factual or if values resume a normal pattern after a one-time adjustment to discount the negative visual factor. The author does note that a limitation of the results of this study is that people's opinions are used and are subjective. "Three Mile Island and Residential Property Values: Empirical Analy- sis and Policy Implications," by Jon P. Nelson, Land Economics,Vol. 57, No. 3; August 1981. The purpose of this. study was to determine if the accident at Three Mile Island {TMI) nuclear power plant caused a statistically signifi- cant decline in prices {or a slower appreciation rate) for homes located within five miles of the plant. The study presumes a perma- nent, lasting concern about the accident should be capitalized negatively into property values. On the other hand,~the absence of a