Agenda - Council - 04/09/2019 - Laserfiche WebLink

Home

Highest and Best Use — continued Site as Improved: The use that should be made of a property as it exists. An existing improvement should be renovated or retained as so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one. The Dictionary of Real Estate Appraisal, Fifth Edition, by the Appraisal Institute. Legally Permissible Uses: The former RV sales use appears to be allowed as a conditional use. A highway commercial or conditional repair use appears to be permissible as well. There are no known or reported legality or conformance issues for the subject property that could restrict the current use on an ongoing basis. If otherwise, the value opinion could differ. Physically Possible Uses: The building is located in the western portion of the site with a parking lot to the east. The site is connected to public water, gas, and electricity. Currently, the subject is not connected to public sanitary sewer. Given current age and condition of the improvements, in addition to land values in the area, redevelopment and/or re -purposing of the subject site are not considered viable options at this time. Financially Feasible Uses: Surrounding Uses: Uses in the immediate area are a mixture of vacant land, commercial, and residential. The surrounding uses would support either a highway commercial, sales, or even industrial use. Market Demand: Market demand (buyers) for highway commercial buildings is rated to be average. Sites that allow for outdoor storage of sales product are limited and have superior appeal in the market. Market demand (tenants) for highway commercial is rated to be average. Most buildings like the subject tend to be owner occupied. Property History / Performance: The subject appears to have been used as an RV dealer for many years. A road project resulted in the subject being acquired by the county, who is now looking to sell the property. Financing: Financing is available; interest rates are at historic lows for well qualified buyers. Lenders commonly consider the existing vacancy and potential timeframe to secure a tenant(s). Fully occupied properties are appealing to lenders. Current loan terms are 20- to 25-year amortization, 5-year balloons, and 4.5% to 5.5% interest rates. Financially Feasible Uses: A highway commercial or industrial related use appears to be feasible. Maximally Productive Use: A market participant would likely consider the following options for the subject: 1. Highway commercial use. The existing and former use of the subject. The building could support a potential sales floor and/or service. The outdoor area could be used for storage purposes. 2. Repurpose to industrial. The subject would have minimal costs to convert to an industrial use. The building has appealing overhead doors, but no docks. Nagel) Appraisal Incorporated 1952.544.8966