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

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Financially Feasible The subject property had reportedly been successfully occupied and operated as a gas station/fast food restaurant until the road improvement project along Highway 10 and Sunfish Lake Boulevard (circa 2007/2008) changed the access to right-in, right-out only from northbound Highway 10 and southbound Sunfish Lake Boulevard. After that road project, the property continued to operate at lower levels than historically had been achieved, but was eventually vacated. This included both the gas station as well as the restaurant space which had originally been a Taco Johns but was subsequently converted to an off-brand "Taco Pulco" restaurant. The property was marketed for a couple years by Calhoun Companies as an operating gas station/restaurant property for$1,495,000, but was not sold. Approximatley 6 months ago, the property was listed with another broker who listed the property for $695,000. Our interview with the listing broker revealed that he had presented the listing to numerous gas station owner/operators, none of whom were interested in the subject given the access issue. Based on our market analysis and market participant interviews, it is our conclusion that there are two financially feasible uses for the subject in our analysis: demolish the site and re-develop with an alternative use, or to renovate the existing improvements into a general retail use. Maximally Productive In the previous analysis, we determined that both demolishing the improvements and redeveloping the site as well as renovating the existing improvements to a general retail use would be financially feasible. In order to determine which would be the maximally productive, we consider our land value conclusion and our "as-is" market value conclusion for the subject both concluded in this appraisal. The conclusions show that there is some residual value to the existing improvements above and beyond the land value, particularly when factoring in potential razing costs for demolishing the entire improvements and redeveloping the site. As a result, it is our conclusion that the maximally productive use is to renovate the existing improvements into a general retail use. CONCLUSION It is our opinion that the existing improvements add value to the site as though vacant. It is our opinion that immediate renovation to general retail use is maximally productive and therefore the highest and best use of the site as improved. MOST PROBABLE BUYER Taking into account the size and class of the property, as well as its projected occupancy, the likely buyer is a local owner-user (full or partial) or investor. 55