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<br />Memo to Boulay <br />Jhmbo Mountain Landsliding <br />page 9 <br />subsequently experienced subsidence and exhibited minor damage. <br />Damage included minor cracking of reinforced foundational grade <br />beam footings, separation of the slab-on-grade structural floor <br />poured within the grade beam foundational footings, distortion of <br />doorways resulting in sticking doors, and drywall cracking and <br />drywall tape separation. It does not appear that major structural <br />damage has occurred. <br />Mr. Mautz informed the Division and MCC of the damage. Following <br />inspection of the structure, MCC proposed and completed repairs to <br />the structure, with Mr. Mautz's approval. MCC has subsequently <br />compensated Mr. Mautz for diminution of the structure's value. <br />Diminution of Reasonably Foreseeable Use and Value <br />Mr. Mautz also alleges that the potential threat of subsidence due <br />to undermining has caused his property to be devalued by $1,080,000 <br />in the past several years. He offers as evidence of this <br />devaluation two appraisals of the Chipeta Guest Ranch. <br />The Division has been provided the cover letter for the earlier <br />appraisal, performed by Gutierrez Appraisal Service. The Division <br />has not been provided a copy of the actual appraisal report. <br />Elisea C. Gutierrez performed this appraisal on December 15, 1995, <br />"to estimate the Market Value". The cover letter states; "the <br />property rights appraised are the fee simple title" and sets the <br />Market Value at $2,500,000. Based upon this cover letter it is <br />impossible for me to render any conclusions regarding the <br />methodology or geotechnical accuracy of the appraisal. <br />The Division has been provided the excerpts (pages 15, 16, 20, 21 <br />and 69) of the appraisal report for the latter appraisal, performed <br />by Landmark Valuation, Inc. as of June 4, 1996, which sets the <br />market value at $1,435,000. The limited excerpts contain <br />statements addressing slope stability and underground mining. The <br />report states on page 20; "an inspection of the subject and <br />surrounding area does not show evidence of unstable conditions." <br />From this statement I conclude that the author is not experienced <br />in the reconnaissance identification of unstable conditions. The <br />report further states on page 20; "However, much of the property <br />has been subject to underground coal mining..." It further states <br />on pages 20 and 21; "Due to the extent of the mining activity, it <br />is possible that soil subsidence may occur". Based on this <br />statement, I conclude that the appraiser was aware of undermining <br />and considered it in completing the appraisal. However, I can <br />render no opinion regarding the methodology or accuracy of <br />geotechnical opinions used in developing the appraisal opinion. <br />