Below is a presentation I made to the residents of Dixfield, Maine in August, 2010. Residents in the River Valley are facing the same predicament we in rural Somerset County are: The mountains surrounding their valley have been targeted by wind developers, and approximately 100 turbines are slated for those ridges.
A topic which is rarely mentioned, but which is of tantamount importance, is the effect which industrial wind facilities will have on our property values. For many of us, our homes are our major investment. Those investments must be protected from for-profit corporations which give claims of property value loss little credence. And the reason they do that, I believe, is because they know the truth. And the truth, if told, would reduce the likelihood that townspeople would be willing to approve their developments.
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Good evening. My name is Karen Bessey Pease, and I am a resident of Lexington Township, where I live on a 70 acre homestead with my husband and children. I am a native of Maine. I am a newspaper columnist, an author, a humorist and the owner of a small business in Kingfield. I’ve been a real estate broker for twenty-two years, and I have owned Narrow Gauge Realty for the past nine.
I’m going to speak for a few moments about industrial wind and its potential impact on real estate values. While I am not an economist, I am an experienced real estate agent who listens to her customers and clients and who pays attention to and is directly impacted by the market.
Because Industrial Wind is a fairly new phenomenon in Maine, real estate agents and appraisers do not have access to the standard resources which we use when we address the topic of value. Usually, we can look at things called ‘comps’… comparable sales. When asked for an opinion of value on a property, we research recent sales of similar properties, adjusting for their slight differences in acreage, location, amenities, etc. Based on that information, we make a reasonable determination of a property’s current market value. Here in Maine, we do not currently have a database of homes sold in the vicinity of industrial wind developments from which to obtain comparable sales data.
In the absence of such a resource here in Maine, I’ve had to look further afield. I’ve had to trust in the research of real estate experts in other parts of the country, and on anecdotal reports from actual homeowners who have been impacted by wind turbines.
Certified appraiser Michael McCann has written a comprehensive report on this very topic and I am going to share with you some of the excerpts of testimony which he gave to the Adams County, Illinois Board in reference to the impact of industrial scale wind energy development on residential property. Mr. McCann is a well-qualified individual, and the report is thorough and detailed. His testimony provides a detailed explanation of the impacts he has found and his recommendations to avoid harm to adjacent property when siting wind projects. For any of you who are interested in reading the full report, please see me after this forum, and I will be happy to provide it for you.
Mr. McCann not only addressed the financial impacts of industrial wind on residential properties, he investigated and reported on the effects wind developments had on one’s use and enjoyment of their real estate. For many of us here, our homes represent our biggest investment of not only our money--but our time, labor and even, our love. This article gives insight into each of these areas.
Here are some of the findings and recommendations listed in the report’s summary. In the interests of time, and because I know you are going to ask questions about industrial wind on the mountains of Maine, I will keep these short and to the point.
McCann found that:
1. Residential property values are adversely and measurably impacted by close proximity to industrial wind turbine projects, with value losses measured up to 2-miles from the nearest turbine(s), in some instances.
2. Impacts are most pronounced within the "footprint" of such projects, and many ground-zero homes have been completely unmarketable, thus depriving many homeowners of reasonable market-based liquidity or pre-existing home equity.
3. Noise and sleep disturbance issues are mostly affecting people within 2-miles of the nearest turbines and 1-mile distances are commonplace…
4. Real estate sales data typically reveals a range of 25% to 40% of value loss, with some instances of total loss as measured by abandonment and demolition of homes, some bought out by wind energy developers and others exhibiting nearly complete loss of marketability.
5. Serious impact to the "use & enjoyment" of many homes is an on-going occurrence, and many people are on record as confirming they have rented other dwellings… for use on nights when noise levels are increased well above ambient background noise and render their existing homes untenable.
6. Reports often cited by industry in support of claims that there is no property value, noise or health impacts are often mischaracterized, misquoted and/or are unreliable. The two most recent reports touted by wind developers and completed in December 2009 contain executive summaries that are so thoroughly cross-contingent that they are better described as "disclaimers" of the studies rather than solid, scientifically supported conclusions. Both reports ignore or fail to study very relevant and observable issues and trends.
7. If (governing boards) approve a setback of 1,000 feet, 1,500 feet, or any distance less than 2- miles, these types of property use and property value impacts are likely to occur to the detriment of… residences and citizens for which the nearest turbines are proposed to be located.
8. The approval of wind energy projects within close proximity to occupied homes is tantamount to an inverse condemnation, or regulatory taking of private property rights, as the noise and impacts are in some respects a physical invasion, an easement in gross over neighboring properties, and the direct impacts reduce property values and the rights of nearby neighbors.
9. In the county for which McCann completed the study, he estimated that a market value reduction of $6.5 million was projected for the residential property located in the footprint and within 2-miles of the pending project.
Recommendations
Mr. McCann gave recommendations for a governing board which was considering allowing a permit for an industrial wind development. Since I know many of you are from towns where just such a thing is occurring, I’ll quickly go over the high points.
1. A Property Value Guarantee should be required of the developer. A fund or “developer bond” should be required to guarantee no undue delay in payment(s) to legitimately affected homeowners, and/or to buy out homeowners located within 2-miles of any turbines if they elect to relocate away from the turbine project(s) and cannot sell for the pre-project market value of their properties.
2. An alternative to the bonding element would be to require that the developer(s) obtain a specialized insurance policy from a high risk insurance carrier such as Lloyds of London. If Lloyds was unwilling to provide such insurance, however, that should be compelling to the (governing board) that professional risk-management actuaries find such projects too risky for even them to insure. Under those possible circumstances the burden of risk is fairly placed with the developer, rather than the residential occupants who are being surrounded or otherwise directly impacted by close proximity of the projects.
4. If (a governing body) decides to permit projects, they should require developer funding and a plan to constantly monitor not only sound levels in decibels, but also in low frequency noise emissions from the turbines utilizing the best available technology, or at least homeowner reports and logs. There is significant evidence and personal accounts confirming that low frequency sound/noise is “felt” by nearby occupants, and… cannot be measured by decibels as audible noise is typically measured.
Disclosure of the owner’s actual experience to prospective buyers is necessary from both an ethical perspective and potentially under the Real Property Disclosure Acts, as a “known” defect or detrimental condition. Thus, documentation should be created at the cost of the developer(s), to insure that appropriate disclosures can be made to any prospective buyer(s) of homes within the 2-mile zone.
As an aside, this—in and of itself, will directly and immediately impact sellers of property within 2 miles of an industrial wind development, and—in my opinion, create a liability for sellers and real estate brokers if such defects are not made known.
5. McCann states that appropriate (sound) devices should be installed at the developers expense at all occupied dwellings and property lines within a 2-mile distance of any turbines, and the (governing body) should retain the ability to immediately enforce the shut-down of any turbines exceeding a level of 10 decibels or more above ambient background noise levels. The proximity of constant or frequent noise sources is an adverse impact to the use and enjoyment of a residential property, and indicates a basis for loss of property value.
6. An alternative would be to place a limit on hours of operation, requiring turbines within 2 miles of any occupied dwelling be shut off during normal sleeping hours.
7. If the (governing body) finds that the wind energy projects are desirable… property owners should be afforded the opportunity to sell to either the developer or the (governing body) (at current [pre-wind] value).
8. A bonding requirement or escrow for decommissioning and reclamation of wind turbine pad sites (should be) a condition. To demonstrate solvency companies should pay the bond requirements before starting construction. (This is something Maine does not currently require. In some cases the developer may request to wait until year 11 to begin paying into its decommissioning fund.) It’s basically insurance in case the company goes bankrupt or otherwise abandons the wind project without taking down the turbines and reclaiming the land.
9. (There should be ) an aesthetic landscaping requirement for wind project developers to plant mature trees or groves to shield the view between residential properties and turbines.
10. McCann further states that (Governing bodies) should consider a moratorium on wind energy project development(s) until such time as:
* A thorough and complete Wind Energy Ordinance is developed and adopted…which incorporates all the protection and authority of zoning, building and health codes.
* Appropriate Conditional or Special Use standards are developed and adopted, to insure wind developers carry the burden of their for-profit projects rather than the hosting jurisdiction(s) and/or neighboring property owners.
* The actual experiences of numerous existing turbine neighbors is documented thoroughly by an impartial group of professionals with appropriate qualifications in the various relevant fields of expertise, i.e., acoustic engineers, medical sciences, valuation professionals, etc.
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These are paraphrases from an incredibly well-written and comprehensive report by an experienced real estate professional, and we here in Maine are lucky to have access to it. Adams County was proactive. They requested this study BEFORE allowing industrial scale wind developers their permits to build. The state of Maine has not provided a similar resource for its citizens, so I hope you will make good use of this study until such a time as our government does the same.
It is important that we also hear from those who are experiencing industrial wind first-hand. Here are a few words from a young man who is building a home on Vinalhaven Island, and whose people have lived on the Maine coast for 12 generations:
“I have succeeded this year in erecting a comfortably small structure. The design is passive solar. The load bearing structure is a timber-frame, hand carved by myself and a good friend, made of island spruce. … My goal, beyond providing for myself a comfortable and affordable home, was to model for people an alternative to the traditional, chemically and energy intensive, way that most modern homes are built.”
“And then this fall the Fox Island Wind turbines began to turn…. Since they've begun turning I have experienced sounds/feelings that are unlike anything I could have previously imagined and ones that I find extremely disturbing. The intensity of the effect varies according to turbine rpm speed... The faster the rpm's the more pronounced the effect. The effect is that of a steady rhythmic low pulse. It is perceived by my ear as a whoosh followed by a whump that I feel in my sternum and head. I am finding the experience overwhelming and am sincerely concerned for my health and well-being. This is not just a sound that a person should "get used to".
"I have.. discovered that there is no spot on my property that I can go to take a break from the stress created by the sonic bombardment I receive during their operation. I am fortunate that my father has a home in town that I can retreat to for the night. My neighbors who live within a close proximity of the turbines are not so fortunate and have had to endure night time noise levels and rhythmic sonic pulsations that have made it difficult for them to rest.
"Three nights back I stayed the night in my home for the first time. I could not sleep and spent the night in restless repose. The rhythmic pulsing from the turbines was overwhelming and I found it impossible to ignore. After two nights in my home spent without any good rest I retreated to my father’s place. I am greatly concerned that this home that I've worked so hard to build will be unlivable and that all of my work will be for not. All of my wealth is invested in my land.”
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Wind developers come into our towns promising economic boom due to job creation, an increase in valuation due to the infrastructure they build, and a host of other advantages to locals termed ‘tangible benefits’. What they don’t mention are the effects their developments have on our properties and their individual valuations. They don’t talk about how state and county subsidies decrease once that tax base increases. They say nothing about the high cost of loss of ‘quality of place’. They don’t promise to immediately set aside money to decommission the turbines, and they don’t promise to compensate us if our investments depreciate due to their for-profit developments.
Many will argue that a land owner has rights, and that other citizens can’t protest over what use their real estate is put. As a real estate professional and an owner of real property, I am very much in favor of land-owner rights. But we have zoning ordinances all across this country. We have them because sound, and sight, and smell and contamination do not recognize property borders. What we do quite often adversely affects our neighbors, and we do not have the right to do that. When I purchased my home in 1994, there were pages and pages of restrictions on what I could and couldn’t do. I couldn’t build higher than a certain number of feet. I couldn’t put a septic or a new structure near a brook or a seasonal run-off or an intermittent stream. I even had to have the driveway culvert inspected before installing it. I joked with the LURC employee at one point.
“Can I paint my roof hot pink?” I asked.
“No”, was the response.
Due to the aesthetic quality which needed to be maintained in Maine’s wild places, hot pink would not be acceptable. Seeing something like that which would not fit harmoniously into the environment would impact my neighbor, I was told.
We all have to live together. We all need to look out for our neighbors. And we all deserve the ability to enjoy our homes and benefit from the equity we’ve earned without fear of loss. I urge you to take advantage of the growing amount of information available on the subject of land-based industrial wind. I have access to articles and studies on this subject, and if you would like to see me after the forum, I’ll take your contact information and make that available to you. Become knowledgeable… for with knowledge, comes power. The power to make decisions for yourself, for your neighbors, and for Maine--this beautiful state which we call ‘home’.
Thank you.
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Top Photo: The village of Burlington, Maine, under the turbines of Rocky Dundee, a First Wind project
Second: From Upper Cold Stream Pond--Rocky Dundee turbines above lakefront cottages
Next: A home in Mars Hill surrounded by First Wind's industrial wind turbines
Then: Caribou Pond un the shadow of First Wind's Rollins project
Finally: One of the Beaver Ridge, Freedom turbines (Patriot Renewables) dwarfing a farm
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