Judge Benjamin '77 Finds Land Purchase Appraisal Faulty
Administrative Law Judge David Benjamin '77 ruled that state and federal governments' purchase of 16,500 acres of salt ponds around San Francisco Bay from Cargill Inc. for $243 million in cash and tax credits in 2002 relied on a faulty appraisal. He said in his ruling made public January 25, 2007, that the assessments of the value of the land were based largely upon unstated extraordinary assumptions and hypothetical conditions. The appraisal assumed that more than 11,000 acres could generate revenue from developers who would pay to preserve the wetlands while paving land for expansion projects at the San Francisco and Oakland airports -- projects that were then uncertain and have never been approved.
Benjamin said the appraiser also assumed that land around Cargill's Redwood City salt plant could be used for residential and office buildings, without evidence that government agencies would approve those projects, and that an area around a former company plant south of Napa could generate revenue as a site for disposal of dredging spoils, despite opposition from the U.S. Environmental Protection Agency.
The decision has no effect on the purchase, which can't be rescinded. The sale transferred into public hands the largest intact piece of privately owned bay shoreline, in Alameda, San Mateo and Santa Clara counties, as well as ponds in Napa County.
San Francisco Chronicle/January 27, 2007
Benjamin said the appraiser also assumed that land around Cargill's Redwood City salt plant could be used for residential and office buildings, without evidence that government agencies would approve those projects, and that an area around a former company plant south of Napa could generate revenue as a site for disposal of dredging spoils, despite opposition from the U.S. Environmental Protection Agency.
The decision has no effect on the purchase, which can't be rescinded. The sale transferred into public hands the largest intact piece of privately owned bay shoreline, in Alameda, San Mateo and Santa Clara counties, as well as ponds in Napa County.
San Francisco Chronicle/January 27, 2007