Agenda - Council Work Session - 03/12/2013

Home

According to land reports completed by Welsh Company, the Twin Cities land market continues a slow recovery. Land values, led by residential land, have decreased significantly in the last 3 to 4 years. The demand that does exist is limited to opportunistic purchases and smaller retail uses with limited development of office and industrial product. Pricing now appears to be at or near the bottom. The presence of lender -owned land continues to be influential on land sales. Some lenders are able to take lower prices on their foreclosed land while others hold the land and wait for the market to recover. Any landowner putting property on the market for sale feels the drag of reduced bank -owned sale prices as they attempt to place a value on their properties. Senior and residential multi -unit housing developers are active in the market as demand for these product types surges. The ability to secure financing on land purchase can be an impediment to closing deals. We are starting to see increasing interest from developers motivated to secure land positions in preparation for the next development cycle. They expect demand to be strong from large retailers seeking new locations over the next 18 to 36 months. In addition, corporations that survived the recession are beginning to consider building new facilities and will be looking for land sites. We are optimistic about the stronger close to 2011 and expect increasing growth in 2012 and 2013. SUBJECT SITE DESCRIPTION: The subject site is located on the northeast corner of Bunker Lake Boulevard and Azurite Street Northwest in the southeastern part of the City of Ramsey. See CITY MAP and ZONING MAP for visual representation. The subject site consists of one platted lot. See AERIAL MAP for visual representation. The subject of this appraisal has a total area is 209,284 square feet or about 4.80± acres, of which 100% is usable. The topography is mostly level and is at, and above street grade. The subject site has approximately 700± lineal feet of frontage along Bunker Lake Boulevard and approximately 300± lineal feet of frontage along Azurite Street Northeast. SUBJECT SITE IMPROVEMENTS DESCRIPTION: The subject has access to city sewer and water. All public utilities (natural gas, electric and telephone) are available. SUBJECT BUILDING DESCRIPTION: There are no structural improvements on the subject site. SUBJECT INSPECTION: Neither the owner nor the owner's representative were present at the inspection. Photos of the subject are on pages 11 through 14, a city map is on page 16, a zoning map is on page 17, a plat map is on page 18 and a aerial map is on page 19. FUNCTIONAL AND EXTERNAL OBSOLESCENCE: 1. After personally inspecting the subject site, the appraisers have formed the opinion that no functional obsolescence exists. 2. After personally inspecting the immediate vicinity of the subject property, the appraisers have formed the opinion that external obsolescence exists in the form of poor economic market conditions, vacant land values have been declining from 2007 to the present. 8