Agenda - Council Work Session - 03/02/2010

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SUMMARY & CONCLUSIONS The three approaehes to value indicated the following results: Cost Approach Not applicable Market. Approaeh $879,200 Irtcome Approach Not applicable The Cost Approach was not applicable in this appraisal as the current subject improvements have no contributory value to the Highest and Best Use ofthe parcel as. vacant land to be redeveloped asa large commercial site. The Cost Approach is a good indicator of value when the property has improvements of value in place, or plans and specifications to construct improvements, on the subject property. The Market Approach will be the approach used in my final estimate ofland value. The Market Approach is a good indicator of value when you have comparables with similar characteristics. The Income Approach was not applicable in this appraisal. The Irtcome Approach is a good indicator of value when the'property generates a foreseeable long-term annual positive cash flow, or can be compared to similar properties with verifiable rental rates. The estimated market time for the subject is 6-12 months if exposed for sale on the open market; an exposure time of6-12 months was also utilized when determining the subject value as of the effective date of this report. These ranges are typical of sales of similar property types in the area and are supported by conversations with a variety of buyers, sellers, county employees, and the MLS. There were no public records of the subject having been sold in the past 36 months. The subject property is located in the Anoka County Area Flood Map #275227 0002A dated February 27, 1976 and does not appear to be located in any established FEMA Flood Plain. There was no personal property included in this appraisal. The final value conclusion is: EIGHT HUNDRED SEVENTY-NINE THOUSAND TWO HUNDRED DOLLARS ($879,200) Page - 22