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Brett Perry, Attorney representing Haubrich's, Olson's and Crotteau's, stated that he, too,
<br />reviewed the appraisal and feels it is deficient in several aspects. He noted that in the
<br />breakdowns of the supposed benefitted properties, the tax amounts are left out as is the
<br />surveying, title fees, legal fees, etc. He found the number absurd. He reported that the
<br />rule of thumb is a lot sale of $50,000 will cost $25,000 in development fees. He reiterated
<br />that these appraisal amounts are not realistic figures. Mr. Perry noted that the prices for
<br />these lots are quite varied - ranging from $32,000 to $99,000. He stated there are no
<br />comparables. He also felt that the appraisal was lacking because the appraiser did not go
<br />out to the actual property. He suggested that from $32,000 to $99,000, without viewing
<br />the property, is a totally deficient estimate and asked that Council give the appraisal no
<br />credence. He asked that Council ask for comparables or that they do not award the project
<br />at all.
<br />
<br />Mr. Schroeder explained that the appraisal shows amounts with and without special
<br />assessments. The improvement costs are listed and with regard to not viewing the
<br />property, it was looked at as development pro forma. There is no evidence that the
<br />property is being harmed by being lessened in size.
<br />
<br />Ed Juskiewicz, 5954 - 151st Lane N.W., Ramsey, stated these are not two acre lots - they
<br />are 2.5 acre lots. He had a Century-21 real estate agent give him an analysis and her
<br />estimated valuation of the lots was $35,000 to $40,000 per lot, once the City services were
<br />installed. He added that he would still have 120 feet of road frontage. He suggested that
<br />with City water and sewer, he would have clean, inspected water. With regard to street
<br />improvements, he stated that the curbing is falling apart plus with the improvements, they
<br />would also have street lights which would be an added safety. He also stated that the lots
<br />in Fox Knoll were listed from $32,000 to $35,000 so this amount is right in line. He does
<br />not see City utilities as a bad investment.
<br />
<br />Mr. Perry noted the attorney fees listed in the appraisal were $675; in his opinion, this
<br />amount does not even cover legal fees alone. These are all assumptions and they are
<br />invalid. He felt there is no justification for the amounts of $32,000 to $99,000 per lot.
<br />
<br />Mr. Schroeder pointed out that the $99,000 is the amount shown for three lots.
<br />
<br />Mr. Perry noted there is still a variation of $35,000 to $67,000.
<br />
<br />Mr. Schroeder explained that the $67,000 is for two lots.
<br />
<br />Mr. Perry reiterated that these amounts are not "real world" assessments and upon inquiry
<br />of what would be "real world" assessments, he replied 50%, and added that the legal fees
<br />would be much more than anything stated on this appraisal.
<br />
<br />City Attorney Goodrich stated that it is possible some of the costs may be slightly higher;,
<br />however, the property is already zoned. They would have to pay the City about $150 for
<br />the title on the whole subdivision. If there was a title problem, then maybe the costs would
<br />be higher, but there should not be any problems of that sort on this property. If there was a
<br />title problem, there would have to be money spent for an abstract. The City really only
<br />needs a commitment, it may be $1,000 to $1,500 but nothing extraordinary.
<br />
<br />Mr. Perry stated that legal fees would be higher.
<br />
<br />Mr. Goodrich pointed out that there would not be any real legal work performed, therefore,
<br />there should not be attorney fees.
<br />
<br />City Council/October 3, 1995
<br /> Page 2 of 4
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