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From my observations it would also appear that their are two landvalues that work together. One for the actual land itself and one for the buildings. I suspect when a land value for the actual land exceeds certain thresholds it allows for buildings of a higher land value to be built. But the land value for the building is permanantly attatched to the building regardless of the fluctuations of the actual land value of the land it is on. So if the land value of the land it is on goes down sufficiently then the building, instead of just losing landvalue, will be replaced with a building that has a lower landvalue.