Agenda - Council - 09/08/1998 - Laserfiche WebLink

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Mr, William Goodrich, Esquire September 8, 1998 Page 3 The sales comparison and income approaches to value were utilized in our analyses. The subject's highest and best use is for speculative holding for future industrial development. Due to current market conditions, it is estimated that development of the subject will not occur for approximately 3 years. To determine the subject's present value (both before and after the taking) a retail land value for the property assuming immediate development was estimated. A discounted cash flow (DCF) analysis was then used to estimate the present value of the subject properly (before and after the taking), assuming it is speculatively held for future development in 3 years. This DCF analysis takes into account expenses incurred over the holding period and the risks associated with speculative holding of the land. The measure of damages to the subject property that results from the fee title taking is equal to the difference between the estimated market value of the property, before and after the road and utility project. In our opinion, the fee simple estate of the subject real estate has the following estimated market values, before and after the proposed taking, as of September 1998, resulting in the damage estimate presented below: Allocation of Damages Due to the Proposed Street and Utility Taking ]Esti~d{ed "as is" ma,,,,ket value - before con~lltion: Less estimated "as is market value - after condition: Eqti'als 'damages d. ue to the takIfiil $111,000 I ($94,600) I $'16:4001 It was a pleasure being of service on this assignment. Please contact us if you need additional information, assistance, or a more complete appraisal report at a future date. Very truly yours, HERMAN APPRAISAL SERVICES, INC. Ellen B. Herman, MAI President MN Certified General License #4O01467