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

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Market Participant Interviews For this specific appraisal assignment, market participants were interviewed to discuss general market conditions, as well as specific factors influencing the subject property. A brief summary of the discussions is as follows: • Subject Listing Broker—(Nate Hansen, Colliers International): Comments: • The subject had good, successful operation as a gas station until the access changed as part of the 2007/2008 road project along US Highway 10 and Sunfish Lake Boulevard. • Now, the right-in, right-out only access from Highway 10 and Sunfish Lake Boulevard has limited potential buyers of the subject, particularly those desiring high-traffic uses. The train tracks to the north of the property also limit the potential for u-turns. • In all four Anoka County long-term plans associated with the subject's corridor, the subject (and other nearby properties) are specifically identified as being eventually taken by the County via eminent domain or other, earlier means. • Since listing the property approximately 6 months ago, they have presented the subject to numerous gas station owner/operators, all of which were not interested in the subject given the access constraints. • He stated that the most probable use for the subject would be to remove the canopy and fuel tanks, and to renovate the improvements into a general retail use with 1-3 tenants. He noted that they would not be national-credit tenants (which would be precluded given the access issue), but that it would most likely be local- credit tenants that are more destination oriented as opposed to traffic-centric. • He did not have an exact estimate of the cost of removing the canopy and tanks, or of the interior demising or car wash conversion costs. However, he thought the canopy and tanks could potentially cost $50,000 to $75,000 total. He stated that the property would need a new facade, and while it was structurally sound, it was a little beat up inside, and would require some work to get it to a vanilla shell. • Broker 1— (Confidential) Comments: • Has several land listings along US Highway 10. • Access is a big issue, because people know that they (i.e. the County and Cities) are taking away access points. • Retailers want full access and visibility; they need both. 50