On December 14—two weeks before the Commonwealth of Virginia purchased the nearly 1,200-acre Biscuit Run property for a $9.8 million bargain sale—an appraisal was conducted on the land on behalf of the Virginia Department of Transportation (VDOT), which contributed $4.8 million to the purchase.

The appraisal put the market value of the Biscuit Run property at $12 million—$2.2 million more than the state paid for the land. That $2.2 million difference between appraisal and sale price could spell bad news for Forest Lodge, LLC—composed of Hunter Craig, Dave Matthews Band member Boyd Tinsley and other investors—which purchased the land from the Breeden family for $46.2 million in 2005.

Land preservation tax credits, which may be sold at roughly 80 cents on the dollar, are determined by the difference between a property’s appraisal and its sale price. C-VILLE reasoned in January that, if Biscuit Run was appraised at the value Craig and company purchased it for, Forest Lodge could potentially earn $14.56 million in tax credits, which it could then sell for roughly $11.64 million.

However, the VDOT appraisal notes that “The assessed value and the appraised value differ substantially.” (At the time of VDOT’s appraisal, the land was assessed at $43.9 million.) The appraisal also notes that “…based on current market absorption and market value trends and the availability of financing, the estimated fair market value is considered significantly less than when it was sold in 2005.”

Meaning, if the sellers of Biscuit Run want to recoup their collective $36.4 million loss, they might want to pursue a different appraisal—a step that attorney Steve Blaine says his clients in Forest Lodge, LLC have undertaken. In fact, Forest Lodge’s application for Land Preservation Income Tax Credits has already been submitted.

“Yes, we have applied,” Blaine tells C-VILLE. “And we’re aware of the amount that’s registered, or that’s already in the pipeline.”

Today, the Virginia Department of Taxation announced a $106.8 million cap on 2010 Land Preservation Income Tax Credits. But requests for those credits are flying in: A message on the Tax Credit Unit’s voicemail states that, as of January 28, approximately $50 million in Land Preservation credit requests have been received.

“The number we heard was kind of surprising for February,” says Blaine. “It’s February and we’re already halfway through.”

With $50 million and counting in credit requests, one wonders how many Biscuit Run put in for. Blaine says Forest Lodge, LLC hopes to know how many credits it will receive by the end of the month. He says it would not be appropriate to share appraisals conducted on behalf of his clients. Regarding VDOT’s appraisal, Blaine says, “I’m not even certain that my clients have seen that appraisal. We wouldn’t have had any hand in that.”

C-VILLE welcomes news tips from readers. Send them to news@c-ville.com.