02-13-17-R - Laserfiche WebLink

Home Browse Search

BRKW APPRAISALS, INC. PAGE 3 In valuing Property 1, the main focus on the highest and best use analysis will likely be on uses allowed within current NB zoning, since at this point in time you have not indica ted that there is any definitive plan for the City to rezone the property for the alternat ive uses of townhome or single -family home development. Consequently, it is likely in this assignment that the property will be appraised first based on its anticipate d highest and best use of Neighborhood Business zoning -allowed uses, and then two subsequent valuations will follow, based on alternat ive assumed highest and best uses for townhomes and single -family homes . It is anticipated that for the two alternate use s, an extraordinary assumption will be applied. An extraordinary assumption is defined as “An assumption, directly related to a specific assignment, as of the effective date of assignment results, which, if found to be false, could alter the appr aiser’s opinions or conclusions.” (s ource: Uniform Standards of Professional Appraisal Practice (USPAP) 2016 -2017 Edition ©The Appraisal Foundation, Page 3 ). For the purposes of the appraisal, the land would be valued based on the extraordinary assumption that it s highest and best use is for townhome development, and also the land would be valued based on the extraordinary assumption that its highest and best use is for single -family home development. Property 2 – Existing City Hall Site The City has asked for o ne valuation scenario for Property 2: 1. Value given development with limited business uses such as office, medical, and limited retail uses [i.e., generally those allowed within NB, Neighborhood Business zoning ]. Based on the above requested valuation scenario, it is assumed by the appraiser that the City would be willing and prepared to rezone the property from its current P/I, Public & Institutional zoning to NB, Neighborhood Business, and that consequently it is reasonably probable that such rezoning would be approved. For the purposes of this appraisal, the land would be valued based on the hypothetical condition that the land has been rezoned to Neighborhood Business. A hypothetical condition is defin ed as “A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis .” (source: Uniform Standards of Professiona l Appraisal Practice (USPAP) 2016 -2017 Edition ©The Appraisal Foundation, Page 3 ). You have indicated that the City wishes to have the City Hall property appraisal include an analysis of the reuse potentia l of the existing building on the site, rather than simply be based on the assumption that the buil ding should/would be demolished to make way for redevelopment of the entire 6.9-acre site. Therefore , depending on the results o f such an analysis relative to potential reuse, the appraisal assignment may ultimately include valuing the building on the west approximately one -half of the site and valuing the vacant land for a separate use on the east approximately one -half of the site. Given this possible scenario, the assignment likely will result in the application of all three primary approaches to value – The Cost, Sales C omparison and Income Approaches – in analyzing reuse potential and possibly then valuing the building on the west half of the pro perty.