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Problem 1: A piece of land in Mississauga is improved with a single-family dwelling built in the 1950s. Recent sales in the neighborhood show that similar improved properties have a market values of $425,000. However, this part of the city is in transition, with vacant properties rezoned to multi-family use selling for $530,000. Given changes to the OCP, you believe it is reasonably probable the subject may be rezoned to multi-family dwelling. Research with contractors shows the cost of demolishing the house and seeking rezoning will total $40,000. Based on this information, what is the highest and best use for this property?
(1) The existing improvements as is represent the site's highest and best use.(2) The highest and best use involves demolishing the existing improvements and redeveloping the site to multi-family use. (3) The existing improvements represent an under-improvement of the site but generate sufficient benefits to the property that their immediate demolition is not warranted.(4) If the site was already zoned multifamily, this would be its highest and best use; until then, its highest and best must be single-family residential.
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