Abstract
The purpose of this case is to demonstrate the impact of special assessments on real property values. This case also provides an opportunity for the instructor to review the proper use of special assessments by communities and the impact that these assessments can have on the marketability of properties. In this case, students are asked to examine real world data to determine the impact of special assessments on property values. The case setting immediately follows four years of accelerated growth, in both market values and taxes, on vacant lots in Cape Coral, Florida, for the period 2003 to 2006. The findings of the case indicate the impacts of special assessments on real property values are significant and should be carefully considered when municipalities attempt to balance the cost and benefits of projects using this contentious funding source. Policy makers must consider the property value implication of using special assessments to fund projects as their use may have significant negative consequences for property owners.