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

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'Scope of the Project Rule' does not apply, then we reserve the right to revise our analysis and conclusions.' Other Important Risk Factors • The subject property, as well as most of the properties along US Highway 10 from Anoka to Elk River (particularly the northern parcels in between Highway 10 and the Burlington Northern Railroad Tracks), are being impacted the looming US Highway 10 transportation system improvement project. Aside from the rise in acquisitions of properties along the corridor by the Cities of Ramsey and Anoka, the prices of many properties listed or sold in recent years have been negatively impacted by the anticipated/planned future reduction of access points along Highway 10, and also the cloud of eventual condemnation when the project begins. We have observed direct market evidence to this affect, including but not limited to, would-be buyers of properties walking away from purchases once they learn of the project, as well as longer marketing/exposure periods for land and improved parcels listed on the market. • Access to the subject site is considered to be poor. A prior road improvement project (circa 2007/2008) has restricted access from US Highway 10 and created the median along Sunfish Lake Boulevard, thereby limiting the subject's access to right-in, right-out only, from northbound Highway 10 and southbound Sunfish Lake Boulevard. This access issue had the largest affect on the highest and best use and value conclusion. • Based on our market data research, as well as our conversations with market participants, gas station use (or other traffic-intensive retail use) is not the Highest and Best Use (H&BU) of the subject. Nor is the H&BU to demolish the improvements and redevelop the site with another use. It is our conclusion that the H&BU of the property, as- improved, is to renovate and convert the property from a gas station/car wash use to a general retail/office use. • As part of this H&BU conclusion,the renovation would entail removing the fuel tanks and canopy,as well as some construction on interior demising forthe convenience store space and renovation of the car wash space to increase its functional utility. This would also require a lease up period to find new tenants (and the related appropriate costs), and to provide an appropriate amount of landlord-paid tenant improvement allowance for the finishing of the space to the tenant's specifications. 'See: Uniform Appraisal Standards for Federal Land Acquisitions,section B-10,"Enhancement or Diminution in Value Due to the Project. 6 �