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CONTINUE FROM PREUIOUS PASE 001 <br /> <br />Mr. Ryan Sehroeder <br />Page 2 <br />October 2, ~995 <br /> <br />It is my understanding that the owners of Lots 1 and 3, Block 1, and Lot 3, Block 2, <br />(Croteau, H~aubrieh, and Olson/Schmidt, r~spectively) are opposed to this project. These <br />owners hav~ contended that the proposed public improvements will not increase their <br />property values enough to off-set the cost of the project (which will be levied against each <br />property owner via a pro-rata special assessment). If the project is completed, special <br />assessment~ against the Croteau, Haubrich, and Olson/Schmidt properties are estimated to <br />be approximately $22,444, $36,977, and $19,707, respectively, <br /> <br />State law re~tuires that special assessment levies must be equal to or less than any benefit <br />conferred upon the property by the assessed public improvement. Typically benefit to a <br />property is x~aeasumd by the difference in the market value of the real estate before and after <br />completion 0f the proposed public improvement. The determination of market value in the <br />before and ilfter situations, must be based on the highest and best use of the property both <br />before and fif-ter completion of the public improvement. <br /> <br />At your request, I have undertaken preliminary valuation analyses to estimate the market <br />value of th~ properties in question both before and after the installation of the public <br />improvemepts. In the before condition, the Croteau, Haubrich, and Olson/Schmidt <br />properties eg. ch have a highest and best use as a 2+ acre single family residential lot that is <br />improved w~ith a single family residence. After completion of the proposed public project, <br />the highest ia. nd best use of these properties changes so that subdivision of each lot into <br />smaller leg,idly and physically developable single family lots becomes feasible. The <br />following ~hart outlines the highest and best use of the Croteau, Haubrich, and <br />Olson/Sch~idt properties, before and after the completion of the proposed public <br />improvemefit project. <br /> <br /> Highest and Best Use Determination <br />Before and After the Proposed Public Improvements <br /> <br />Cr~teau One improved SF 9.+ aCre lot. ! Subdivision into one improved <br />, lot, and 2 unimproved lots. <br />- - Hadbrich One i~fiprOved SF 2+ aCre lot. SubdiviSion into one improved <br />~ lot, and 3 unimproved lots. <br />Olson~$chmidt One improved SF 2+ acre lc;}'~' Subdivision into one improved <br /> r lot, and 1 unimprovedlot. <br /> <br />My prelimiRary valuation estimates indicate that the market value of the subject properties in <br />the before c~ondition (as single improved 2+ acre lots that are not serviced with city sewer <br />and water)Is similar to the value of the improved smaller lots that can be created from the <br />larger ownerships, in the after condition. In other words, the improved lots will have a <br />similar valmac before and after the completion of the project. However, in the after <br />condition, the subject properties will have increased value because they can be subdivided <br />into one or lrnore unimproved lot(s) that can be separately sold to a buyer for construction <br />of a single ~amily home. Therefore, the benefits conveyed on the subject properties by the <br /> <br /> <br />