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

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4. The International Valuation Standards deducted from effective gross income but before Council defines market value for the purpose mortgage debt service and book depreciation are of international standards as follows: The deducted. Note: This definition mirrors the estimated amount for which a property convention used in corporate finance and should exchange on the valuation date business valuation for EBITDA (earnings before between a willing buyer and a willing seller in interest, taxes, depreciation, and amortization). an arm's-length transaction, after proper (Dictionary,6th Edition) marketing and where the parties had each acted knowledgeably, prudently, and Obsolescence without compulsion. (IVS) One cause of depreciation; an impairment of 5. The Uniform Standards for Federal Land desirability and usefulness caused by new Acquisitions defines market value as follows: inventions, changes in design, improved Market value is the amount in cash, or on processes for production,or external factors that terms reasonably equivalent to cash, for make a property less desirable and valuable for a which in all probability the property would continued use; may be either functional or have sold on the effective date of the external. (Dictionary, 6th Edition) appraisal, after a reasonable exposure time Parking Ratio on the open competitive market, from a A ratio of parking area or parking spaces to an willing and reasonably knowledgeable seller economic or physical unit of comparison. to a willing and reasonably knowledgeable Minimum required parking ratios of various land buyer, with neither acting under any uses are often stated in zoning ordinances. compulsion to buy or sell, giving due (Dictionary,6th Edition) consideration to all available economic uses of the property at the time of the appraisal. Prospective Opinion of Value (Uniform Appraisal Standards for Federal A value opinion effective as of a specified future Land Acquisitions) (Dictionary,6th Edition) date. The term does not define a type of value. Instead, it identifies a value opinion as being Marketing Time effective at some specific future date.An opinion An opinion of the amount of time it might take to of value as of a prospective date is frequently sell a real or personal property interest at the concluded market value level during the period sought in connection with projects that are proposed, under construction, or under immediately after the effective date of an conversion to a new use, or those that have not appraisal. Marketing time differs from exposure time, which is always presumed to precede the yet achieved sellout or a stabilized level of long- effective date of an appraisal. (Advisory Opinion term occupancy. (Dictionary,6th Edition) 7 of the Appraisal Standards Board of The Prospective Market Value "As Completed" and Appraisal Foundation and Statement on "As Stabilized" Appraisal Standards No.6,"Reasonable Exposure A prospective market value may be appropriate Time in Real Property and Personal Property for the valuation of a property interest related to Market Value Opinions" address the a credit decision for a proposed development or determination of reasonable exposure and renovation project. According to USPAP, an marketing time.) (Dictionary,6th Edition) appraisal with a prospective market value reflects an effective date that is subsequent to Net Operating Income(NOI or lo) the date of the appraisal report. Prospective The actual or anticipated net income that value opinions are intended to reflect the current remains after all operating expenses are expectations and perceptions of market 120 1