Agenda - Council - 04/11/2017 - Laserfiche WebLink

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Highway 10 Business District, which is an interim use zoning district that allows for less traffic- oriented commercial uses until at which point the US Highway 10 transportation system improvement project commences. The main value scenario relevant to the current state of the subject is the "as is" value, however, as a result of our Highest and Best Use conclusion, which was to keep the existing improvements but renovate and convert them to general retail space, it was necessary to develop and report an "as complete" and "as stabilized" values as well. Based on our subject property tour, and after examining and considering the subject's location, physical and economic characteristics, current market conditions, demographic influences, and other legal, social, economic factors, the details of which are included in the valuation analysis in the accompanying report, subject to the definitions, assumptions, and limiting conditions expressed in the report, our value opinions are as follows: VALUE CONCLUSIONS Valuation Premise Interest Appraised Date of Value Value Conclusion per SF of NRA Market Value "As-Is" Fee Simple December 2,2016 $645,000 $71.68 Market Value "As-Completed" Fee Simple March 1,2017 $845,000 $93.91 Market Value "As-Stabilized" Fee Simple June 1,2017 $1,025,000 $113.91 Exposure Time and Marketing Time Based on our review of national, regional and local investor surveys, discussions with market participants and information gathered during the sales verification process, a reasonable exposure time for the subject property at the value concluded within this report would have been approximately 12 months. This assumes an active and professional marketing plan would have been employed by the current owner. We believe, based on the assumptions employed in our analysis, as well as our selection of investment parameters for the subject, that our value conclusion represents a price achievable within 12 months. Extraordinary Assumptions An extraordinary assumption is defined by the USPAP as "an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis." • The subject has historically operated as a gas station, and while the fuel pumps have been removed, it is our observation and understanding that the canopy and the underground 41