Property Value Market Impact Analysis

In February, 2019, Neosho Ridge Wind commissioned Kansas-Certified General Real Estate Appraiser, Mike MaRous, to conduct a Market Impact Analysis to assess how the wind energy facility could be expected to affect nearby property values.

Download the full report here.

Executive Summary

As a result of the market impact analysis undertaken, the conclusion made is that there is no market data indicating the project will have a negative impact on either rural residential or agricultural property values in the surrounding area. Further, market data from Kansas, specifically, also supports the conclusion that the project will not have a negative impact on rural residential or agricultural property values in the surrounding area. For agricultural properties that host turbines, the additional income from the wind lease may increase the value and marketability of those properties. These conclusions are based on the following:

  • The use will meet or exceed all the required development and operating standards;
  • Controls are in place to ensure on-going compliance;
  • There are significant financial benefits to the local economy and to the local taxing bodies from the development of the wind farm;
  • The wind farm will create well-paid jobs in the area which will benefit overall market demand;
  • An analysis of recent residential sales proximate to existing wind farms, which includes residential sales within up to five times turbine tip height, did not support any finding that proximity to a wind turbine had any impact on property values;
  • An analysis of agricultural land values in the area and in other areas of the state with wind farms did not support any finding that the agricultural land values are negatively impacted by the proximity to wind turbines;
  • Studies indicate that wind turbine leases add value to agricultural land;
  • A survey of County Assessors in 21 Kansas counties in which wind farms are located determined that there was no market evidence to support a negative impact upon residential property values as a result of the development of and the proximity to a wind farm, and that there were no reductions in assessed valuations;
  • A survey of County Assessors in 5 Indiana counties in which wind farms are located determined that there was no market evidence to support a negative impact upon residential property values as a result of the development of and the proximity to a wind farm, and that there were no reductions in assessed valuations;
  • A survey of County Assessors in 18 Illinois counties in which wind farms are located determined that there was no market evidence to support a negative impact upon residential property values as a result of the development of and the proximity to a wind farm, and that there were no reductions in assessed valuations;
  • A survey of County Assessors in 8 South Dakota counties in which wind farms are located determined that there was no market evidence to support a negative impact upon residential property values as a result of the development of and the proximity to a wind farm, and that there were no reductions in assessed valuations;
  • A survey of County Assessors in 26 Iowa counties in which wind farms are located determined that there was no market evidence to support a negative impact upon residential property values as a result of the development of and the proximity to a wind farm, and that there were no reductions in assessed valuations; and
  • A survey of County Assessors in 8 Minnesota counties in which wind farms are located determined that there was no market evidence to support a negative impact upon residential property values as a result of the development of and the proximity to a wind farm, and that there were no reductions in assessed valuations.