The mandate of the Municipal Property Assessment Corporation
(MPAC) is to provide property assessments to
municipalities as well property owners, tenants and other
stakeholders across Ontario, using a property assessment system
based on current values.
Growth in the renewable energy sector in Ontario in recent years
has drawn considerable attention to questions regarding the impact
of Industrial Wind Turbines (IWTs) on the value of
residential properties. These issues were initially explored in a
2008 report, which concluded that the presence of IWTs that are
either abutting or in proximity to a residential property do not
have an impact on that property's value assessment. The MPAC
has now published a new study, using updated, 2012 property
assessment data, which reaches the same conclusion.
The 2012 study (the "Study") examined
(1) whether residential properties in close proximity to
IWTs are assessed equitably when compared to residential properties
located at a greater distance; and
(2) whether the presence of IWTs in close proximity to a
residential property affects that property's sale price.
For the purposes of both questions, MPAC defined an
"IWT" as a turbine with a capacity of at least 1.5
megawatts (MW). The Study examined 1,157 IWTs located on 834
properties across Ontario and analyzed their impact on the sale
prices of properties located within 5 km of those IWTs, looking at
open market sales in the areas surrounding IWTs in the period
between January 2009 and December 2012. The following is a brief
summary of the Study's findings:
The Study showed that the ratio of assessed value to adjusted
sale price for residential properties located close to IWTs is
within 4.2 to 4.5% of the same ratio for properties located 1 to 2
km, 2 to 5 km and over 5 km from IWTs.
These findings confirm the 2008 study's conclusions by
showing that residential properties located in proximity to IWTs
(including ones with a full or partial view of an IWT) are assessed
equitably in relation to residential properties located at a
MPAC considered sales of residential properties across 15
market areas and statistically analyzed the variation of sale
prices for properties located within 1 km, between 2 and 5 km and
over 5 km from an IWT.
The Study clearly showed that being located in proximity to an
IWT has no statistically significant impact on the sale price of a
residential property. In some market areas, being located within 1
km of an IWT actually translated into an increased sale price.
In sum, the Study's findings confirm the fact that IWTs do
not have a negative impact on property values and sale prices for
residential properties located near them. The conclusions reached
are in line with MPAC's own 2008 study on the subject as well
as a 2013 study in the United States conducted by the Berkeley
National Laboratory for the United States Department of Energy.
For more information, you can visit MPAC's website. You can also read the full 2012 Study
Prepared with the assistance of Nedko Petkov, student-at-law
at Dale & Lessmann LLP.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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