In a reference arising from a contractual dispute over a land sale and alleged charitable donation receipt entitlement, the court was asked to determine the fair market value of agricultural lands purchased for future institutional use.
The plaintiffs claimed damages for the defendant’s failure to issue a charitable tax receipt based on the alleged difference between fair market value and purchase price.
The court considered competing expert appraisal evidence using the sales comparison approach and evaluated comparable land transactions within the local market.
Rejecting certain comparables and institutional-use assumptions, the court found the highest and best use involved potential future residential development subject to planning processes and servicing constraints.
The fair market value was determined to be $50,200 per acre, totaling $1,708,456.60.
