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YOUR Financial Loss

if Bumstead Pit is Approved

The Bumstead pit application has already impacted the


finances of their Chatsworth neighbours due to a decline
in market value of property surrounding the proposed pit.
We applied a well-regarded economic model1 to estimate
the value of personal wealth destroyed by the application.
The decline in personal wealth is shared by 575 property
owners and averages a $25,000 loss for a shocking total of
$14,000,000. Properties closest to the proposed pit bear
the largest burden although research demonstrated that
properties up to 5 kilometers away also suffer a loss.
If you feel this is inappropriate call Mayor Bob Pringle
519 794 3232 or email him at bob.pringle@grey.ca. Tell
him it is your money and you dont want to lose it.

This table summarizes the models findings as applied to Bumstead neighbours.

Distance from
Pit
within 0.5 km
0.5 to 1.0 km
1.0 to 1.5 km
1.5 to 2.0 km
2.0 to 3.0 km
3.0 to 5.0 km

Number of
Homes,
Farms or
Properties
20
19
31
43
99
243

Average Market
Value before Pit
Proposal
$300,000
$300,000
$300,000
$300,000
$300,000
$300,000

Ecomomic
Model
Predicted MV
Loss
-25%
-17.50%
-14%
-11%
-8%
-6%

Berkeley
Townsend Lake

65
57

$200,000
$225,000

-10%
-5%

Total Market Value Loss (properties within 5km):

Loss in
Neighbours
Personal
Wealth
$(1,500,000)
$(997,500)
$(1,302,000)
$(1,419,000)
$(2,376,000)
$(4,374,000)
$(1,300,000)
$(641,250)
$(13,909,750)

It Gets Worse:
It has long been recognized that there is relationship between the market value of homes and property
and the townships assessed value for tax purposes. So as the market value of the areas homes declines
we can expect to see a similar decline in the assessed value. The reduction in the assessed values would
directly feed through to the townships tax base. Unfortunately the township would end up in a position
where they might have to try to recoup the effect by further raising our property taxes. Each $1,000,000
loss in assessed value would cost the Township an additional $15,000. That money would have to come
from us, the taxpayers, in the form of higher property taxes.

Planning and Development Committee:


The Bumsteads have requested their farm be rezoned to allow for development of the pit. The rezoning
asks the Grey County Planning and Development Committee to change the designation from agricultural
land to a mineral resource extraction classification. We need to tell the Committee that we didnt buy
houses in a rural setting to have it changed to a mine site. We need to tell them if they approve the
change, they are imposing a $14,000,000 financial loss on the immediate neighbours.
We need to ask the Committee to turn down the proposal. The land is agricultural land and Grey County
is responsible for protecting our properties. Grey County should not approve of a mine site in the midst
of an agricultural community.

Call the Chair of the Grey County Planning and Development Committee - Paul
McQueen at 519 375-1912 or email: paul.mcqueen@grey.ca. Tell them the Chatsworth
Taxpayers for a Safe and Healthy Environment have a study to support our claims2. We would be happy
to present the results to them.

1.
2.

Diane Hite, 2006. Summary Analysis: Impact of Operational Gravel Pit on House Values, Delaware County,
Ohio, Auburn University.
Doug Crocker et al, 2015. Fiscal Impact for Chatsworth Township due to the Proposed Bumstead Pit

Chatsworth Taxpayers For a Safe & Healthy Environment


Email: chatsworthtaxpayers@gmail.com