A 205-acre site in Short Pump that Henrico County officials considered buying for $26.7 million could be worth substantially more, according to appraisers hired by the landowners.

An appraisal requested by developer Robert Atack on behalf of himself and the other landowners says the Kain Road property could be worth $61 million if it's rezoned and utilities and North Gayton Road are extended to it.

That contrasts dramatically with the county's appraisal of $18 million in May.

The Board of Supervisors was looking at the Kain Road site as a possible site for a high school, park and fire station. However, the proposed deal was set aside in May at the urging of Tuckahoe District Supervisor Patricia S. "Pat" O'Bannon after appraisers hired by the county valued the land at $18 million.

The key difference with the county's appraisal is that the land was valued "as is" -- somewhat remotely located, zoned for agricultural uses and lacking utilities.

The landowners' appraisal took a much different tack, trying to determine what the property might be worth if development occurs as envisioned in Henrico's draft 2026 comprehensive land-use plan.

O'Bannon said the widely differing amounts suggest to her that the county should force a sale through eminent domain if officials decide that some or all of the property is truly needed. Under state law, local governments can condemn property, or force an owner to sell, as long as the land is planned for a public use, such as a road or school. The price is determined in court.

"We cannot be in the speculative real-estate purchasing market because we are a public body," she said. "If the board truly wants that piece of property, then I believe it should go to condemnation."

Atack called both appraisals valid, saying they approach the issue of value from different perspectives. "They are truly not dueling appraisals. They are evaluations of the appraisers based on the assignment."

The $61 million appraisal by MGMiller Valuations was prepared in July, but Atack said he didn't present a copy to Henrico officials until last week. Atack said his timing was based on the anticipated release of a report by the commission appointed to review Henrico's land-purchase practices. County Manager Virgil R. Hazelett set up the group at O'Bannon's urging in light of concerns about the Kain Road property.

The commission's report could be submitted to Hazelett by the middle of next month, Hazelett said.

Atack said he disclosed the $61 million figure to commission members in a closed-door meeting this summer. At the time, he declined repeated requests by the Richmond Times-Dispatch to release the appraisal or to discuss its findings. The newspaper got a copy this week from the county.

"In light of the appraisal, we are re-evaluating what we want to do with the property," said Atack, who also has refused to identify the individual owners. They're listed in county records as Clarendon Associates LLC, Gayton/Kain LLC and Kain Road Partners LC.

Three Chopt District Supervisor David A. Kaechele, who represents the Short Pump area, said the landowners' appraisal reinforces his belief that the offer of $26.7 million was appropriate, in part because the county had already paid similar prices for land in the area.

"It's a reasonable document that shows the potential for that land," he said.

Kaechele said he still would like the county to buy the Kain Road property, partly to keep Short Pump's rampant development at bay.

O'Bannon said she's not sure it's needed, at least not yet. She said she would be uncomfortable with the county buying any land at a speculator's price, particularly when factors driving up the value -- namely road and utilities improvements -- likely will be funded with public dollars.

North Gayton Road is to be extended north from West Broad Street, with a bridge over Interstate 64 and an intersection with Kain Road before it bends eastward aligning with Shady Grove Road at Pouncey Tract Road.

In September, the supervisors approved a $38.6 million construction agreement with a group led by the firm W.C. English of Lynchburg. Work is expected to start in 2009 and finish in late 2011.

O'Bannon said she now questions the impacts of putting the project to voters in the 2005 bond referendum.

Atack said a rezoning application for the Kain Road property may be filed within six months. It's marked for suburban mixed-use development in the draft 2026 comprehensive plan, meaning potentially 1,000 homes, plus retail and office development, he said.

Atack said he's unsure whether the landowners might be interested in renewing talks with the county, and he predicted a condemnation would backfire, by awarding the owners more than the $26.7 million that was once offered.

"I would love for the county to condemn the property," he said.
Contact Will Jones at (804) 649-6911 or wjones@timesdispatch.com.