Land values drop near waste disposal sites
ITHACA, N.Y. - If a waste
disposal site is located near
private property, the value of that
property is lowered, even if the
disposal site does not contain
hazardous materials.
That’s a finding from a recent
study conducted by Brian Baker, a
researcher in the department of
agricultural economics at Cornell
University. Baker studied landfill
areas in three New York State
counties - Tompkins, Saratoga,
and Niagara - to determine their
effect on surrounding property
values.
Baker says that of all the
economic problems besetting
communities with waste disposal
facilities, one of the most sensitive
and controversial is that of real
property values. “State and local
govemmetn officials must weigh
all factors when making decisions
regarding landfill sites, real
property values, and potential
compensation claims.”
More study needed
Baker adds that because concern
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for the problems of hazardous
waste disposal is relatively new in
our society, more research and
studies must be done to understand
the economic implications of
where landfills and waste disposal
sites are located. Property tax
structures, siting selections, and
compensation procedures for
lowered property values are some
of the issues communities must
grapple with in the near future.
“The regulatory and statutory
frameworks for dealing with
hazardous waste disposal sites are
not in place yet,” Baker says. “The
next few years will be crucial for
policymaking.”
In Niagara County, Baker
studied property values near SCA
Chemical Waste Services in the
Town of Porter. This facility in
cludes a secure landfill for
chemical wastes, resource
recovery, and reprocessing
operations, liquid processing and
treatment facilities, and sludge
disposal. The SCA site contains
hazardous wastes such as heavy
metal sludges, contaminated
chemical wastes, and
polychlorinated biphenols (.PCB)
solid waste.
“Realtors in the area were
reluctant to speak at length about
the effect that SCA might have on
real estate values,” he says. “Yet,
properties immediately
surrounding the site were
described as below-average in
demand.” Homes in subdivisions
two to five miles away from the
area were average or above
average in demand.
Love Canal
Interestingly, he notes, property
value reductions near the SCA site
were smaller, rather than greater,
after all the negative publicity in
1978 about Love Canal. Values
already may have been reduced to
market demand before the
publicity, Baker says.
In general, however, the
publicity about Love Canal did
lower property values near land
fills. Properties near the other
sites studied - West Dryden in
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Tompkins County and Waterford in
Saratoga County - also ex
perienced a reduction in values.
Waterford, which has a disposal
site for by-products of manufac
turing, such as benzene, toluene,
chlorobenzene, and xylene, some
of Which are hazardous, is ex
periencing well-water con
tamination from this landfill.
Property values near this site
indicate a definite downward trend
since 1978.
Tompkins County’s landfill
contains no hazardous wastes,
however, it also affects property
values around it.
Baker says the relationship
between waste disposal sites and
property values must be examined
and taken into account, but
nearness to landfills is just one of
many factors affecting the sale
price and value of any piece of
property.
Baker deals with the question of
compensation for property value
losses: “As long as damage to
Phone (315) 476-9101
Compensation
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Exhibit continues to July 29.
Dairy Farm
Open House
The big local promotion for June
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health does not occur, there is little
basis for compensating
homeowners living near a landfill
or hazardous waste disposal
facility.”
Baker points out that the
homeowners probably paid below
average prices for their property
and, in that way, may have been
compensated already for lower
property values.
If people bought property before
the disposal site was built,
however, they probably paid the
full market price. These
homeowners, says Baker, may be
justified in expecting com
pensation for the devaluation of
their property. At present,
legislation to compensate property
owners in this situation does not
exist.
Baker concludes that if the site
presents a health hazard, even a
relatively inexpensive home may
not compensate for the dangers of
living in that home.
& COW
(Continued from Page D3O)
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