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

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RECONCILIATION AND FINAL VALUE OPINION This appraisal utilizes the Sales Comparison and Income Approaches. The Cost Approach was excluded due to the presence of significant depreciation at the subject, and to the concluded highest and best use resulting in a remodeling of the improvements, and finally because most market participants do not rely on this approach for properties such as the subject. The approaches indicated the following: VALUE CONCLUSIONS: Type of Value: Market Value Market Value Market Value "As-Is" "As-Completed" "As-Stabilized" Date of Value: 12/2/2016 3/1/2017 6/1/2017 Real Property Interest: Fee Simple Fee Simple Fee Simple Land Value: Indicated Land Value: $360,000 $360,000 $360,000 Per Square Foot: $5.00 $5.00 $5.00 Sales Comparison Approach: Concluded Value(Rounded): $1,030,000 $1,030,000 $1,030,000 LESS:Lease-Up Cost ($180,000) ($180,000) LESS:Construction Cost ($200,000) Value Indication via Sales Approach: $650,000 $850,000 $1,030,000 Per Square Foot(NRA): $72.24 $94.47 $114.47 Income Approach: Direct Capitalization: Net Operating Income(Stabilized): $91,589 $91,589 $91,589 Capitalization Rate: 9.00% 9.00% 9.00% Preliminary Value: $1,017,660 $1,017,660 $1,017,660 Concluded Value(Rounded): $1,020,000 $1,020,000 $1,020,000 LESS:Lease-Up Cost ($180,000) ($180,000) - LESS:Construction Cost ($200,000) Value Indication via Direct Capitalization(Rounded): $640,000 $840,000 $1,020,000 Per Square Foot(NRA): $71.13 $93.35 $113.36 FINAL VALUE CONCLUSION: Concluded Value: $645,000 $845,000 $1,025,000 Exposure Period: 12 months 12 months 12 months Marketing Period: 12 months 12 months 12 months We have given approximately equal weight to both the Sales Comparison Approach and the Income Approach, given the subject property's configuration and use. The Cost Approach is not considered to be necessary for credible results and was therefore omitted from the analysis. 107 1 Page