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    Rock Acquisition v. State of Connecticut; Market Value Appraisal of the Complete Taking of the Brookfield Quarry Property

    In July 2004, the State of Connecticut, under eminent domain (condemnation) powers, made a complete taking of Rock Acquisition LP’s operating hard rock quarry property in Fairfield County, CT, for the path of a 4-lane highway. In 2006, the CEO of Rock Acquisition LP signed a consulting retainer agreement with EIS, to have Mr. Ellis available to advise occasionally over the phone pertaining to discount rates and other technical matters of mineral property appraisal. The company had already retained the person generally considered to be the most prominent appraiser in the USA of construction material quarry properties to appraise the value of the takings. By the time the case went to trial in 2008, Mr. Ellis was the company’s primary minerals appraiser expert.

    Initially Mr. Ellis provided technical expert appraisal advice to the plaintiff, Rock Acquisition. He later developed a market value appraisal for compensation claim for the taking of the operating quarry property. The appraisal included market valuation of backfilling reclamation of the quarry with clean fill disposal from the greater New York City region.

    In court, the primary appraiser expert for the State argued that the value of the taking was $2.4 million. Mr. Ellis testified in court for 2.5 days. The court awarded Rock Acquisition $27 million plus interest, the largest eminent domain verdict in the history of the State of Connecticut. The State paid the award without appealing the decision.

    A detailed discussion of the Sales Comparison Approach analysis developed by Mr. Ellis for this appraisal is contained in his peer reviewed paper:

    Ellis, Trevor R., “Sales Comparison Valuation of Development and Operating Stage Mineral Properties”, Mining Engineering, Vol. 63, No. 4, April 2011, pages 89-104. Available at OneMine.org. To view the Abstract or a slide presentation of the paper, click here.