147th GENERAL ASSEMBLY

 

FISCAL NOTE

 

DESCRIPTION:        AN ACT TO AUTHORIZE AND APPROVE THE CONVEYANCE OF CERTAIN REAL PROPERTY IN NEW CASTLE COUNTY TO THE COLONIAL SCHOOL DISTRICT AND PROVIDING FOR THE FUTURE SUBDIVISION AND CONVEYANCE OF A PORTION OF THIS REAL PROPERTY TO FAITHFUL FRIENDS.

 

 

ASSUMPTIONS:


1.     Effective upon enactment.

2.     This legislation authorizes the transfer of 40 acres of land and the Airport Road Division of Motor Vehicles facility over to the Colonial School District.  The legislation also directs the Colonial School District to subdivide and convey a portion of the parcel to be transferred to Faithful Friends, a Delaware incorporated non-profit animal shelter.

3.     The General Assembly appropriated $417,690 for land purchase and construction costs.  The facility was constructed in 1965.

4.     There has not been an appraisal completed for this piece of land since the original purchase in 1963.

5.     According to the New Castle County property tax information online database, this parcel has an assessed value of $1,525,600.

 

6.     Based on the Sales Assessment Study prepared by the Center for Applied Demography & Survey Research at the University of Delaware, the Colonial school district in New Castle County has an assessment-to-sales ratio of 0.330.  The assessment-to-sales ratio is the ratio of assessed value of a property to its selling price.

7.     Using the assessment-to-sales ratio provided in the above mentioned report, the estimated market value of the 40 acres to be transferred is $4,623,030.   ($1,525,600/ 0.330 = $4,623,030).

 

8.     According to Title 29, Chapter 94 §9405, surplus state property can be transferred to a political subdivision of the state for an amount not less than 30% of the fair market value nor more than 75% of the fair market value.  Using the parameters established in the Code, the land could be sold for between $1,386,909 and $3,467,273.  This legislation would disregard the parameters for sale established in the code and allow the land to be transferred to Colonial School District for $1.

 

Cost:

            $1,386,909 to $3,467,273

 

 

Office of Controller General                                                        (Amounts are shown in whole dollars)

June 17, 2014

CAS:CAS

4431470041