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

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Conclusion of Market Value Based on our tour of the subject property, 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 opinion is 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 fuel tanks are still present on the site. It is also our understanding that a Phase I environmental assessment report has been completed, the results of which have indicated the need for a Phase 11 assessment. We have not been provided with a copy of the Phase I report, or any other summary of the potential issues it uncovered. Our analysis is subject to the Extraordinary Assumption that there is no environmental contamination or impact of any kind. Should there turn out to be any environmental or 108 1