Hillwood contracted Wesley Reeks, a real estate appraiser to assess the impact the HLC would have on nearby residential property market values.
Reference: Attachment C from “Property Values attachments_a-c_applicant_documents.pdf”
The study looked at the property value impacts on both direct abutters and nearby neighborhoods for two southern NH case studies where industrial distribution facilities were built near residential neighborhoods. The two case studies are:
FW Webb Distribution center in Londonderry NH (768,000 sq ft)
Walmart Regional Distribution facility in Raymond NH (1,138,588 sq ft)
The first study looked at the average growth rates of properties that sold both before and after the above distribution centers were built. The growth rate was then compared to the overall regional growth rate. The second study used the average per sq ft sales price of homes abutting the facility and compared them to homes elsewhere in the town of Raymond
Based on these two case studies, Mr. Reeks’ conclusion was the HLC will have no impact on abutting or nearby property values
Peer Review: The Planning Board hired a consultant (Russell Thibault) to peer review Mr. Reeks study. A summary of the peer review is as follows:
The study used the best comps that were available to them but they are not representative of proposed HLC’s impact on Hudson
The comps did not consider any of the impacts associated with the increase in noise, air and light pollution, traffic, prior vs proposed use, etc
The housing types used in the comp evaluation are not representative of the neighborhood abutting the Green Meadow property
8/12/20 Planning Board meeting
The board identified shortcomings with the data the consultants used. Ie property sales that were missing, and the fact that they did not use the registry of deeds to capture all sales
The planning board challenged the consultant’s conclusions and credibility
If a prospective buyer was evaluating two equal properties, one abutting the HLC and one further away, it is extremely unlikely the buyer would purchase the HLC abutting property.
The proximity to the HLC will make the property less desirable, driving the value down, and make it more difficult to sell
The studies used data during a period in time where the housing market was very strong. A softer housing market with more inventory will exacerbate the above concern
The comparable distribution facilities chosen are much smaller in scale and volume to the proposed HLC at 2.6M sq ft. The “No Impact” conclusion cannot be extrapolated to a facility that is 2.3-3.4x the size and moves potentially orders of magnitude more product volume.
The FW Webb Facility used for comparison is an 8-5 weekday only facility and is not comparable to the proposed HLC 24/7 365 operation.
Hillwood’s property value study. See Attachment C: https://www.hudsonnh.gov/sites/default/files/fileattachments/planning_board/meeting/43065/fiscal_impacts_analysis_hlc_june_2020.pdf
Thibault Peer Review