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BRKW APPRAISALS, INC. PAGE 4 Similar to the approach to valuing Property 1, as previously described, Property 2 will first be valued based on the appraiser’s concluded highest and best use, which is anticipated to be one of the four use alternatives the city has asked the appraiser to address. Then, three subsequent valuations will follow, based on the other three alternative assumed highest and best uses , with the application of an extraordinary assumption for each of the three alternative valuations . You have indicated that the City wishes to have the City Hall property appraisal include an analysis of the reuse potential of the existing building on the site, rather than simply be based on the assumption that the building should/would be demolished to make way for redevelopment of the entire 6.9 -acre si te. Therefore, depending on the results of 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 (reflecting a commercial use) and valuing the vacant land on the east part of the site based on four alternative use scenarios (commercial, single -family residential, townhome residential and multi -family residential). Regardless of whether continued use of the City Hall building together with development of the excess land , vs. demolition and redevelopment of the entire site , is concluded to be the highest and best use of the property , the appraisal assignment likely will include providing a value conclusion of the entire 6.9 -acre l and parcel for each of the four use scenarios requested . Assuming the City Hall building contributes material value to the overall property value, the appraisal assignment likely will include the application of all three primary approaches to value – The Cost, Sales Comparison and Income Approaches – when valuing the portion of the property containing the building and surrounding/supporting improv e ments. Report Format For each of the two subject properties, the appraisals will be communicated in separate reports, utilizing a narrative Appraisal Report format. The level of discussion and detail in the report will be similar to that contained in what is formerly known as the Summary Report format, a report type label which was discontinued by the Uniform Standards of Appraisal Practice (USPAP), effective January 1, 2014. The level of discussion in the report s to be issued to the client can be best described as summarizin g the subject property attributes and the appraisal process, but also providing enough information and detail to enable the client and intended users to understand the rationale for the appraiser’s opinions and conclusions. The report s will contain suppor ting data for the appraiser’s analysis and valuation, including comparable sales data and the adjustments made to the sales. For an assignment such as that described in this proposal, the appraisal report s would likely contain between 5 5 and 90 pages each. Additional notes, data, analyses and other documentation supporting the appraisal are retained in the office appraisal file. The appraisal s will be prepared in accordance with the Code of Ethics and the Standards of Professional Practice of the Apprais al Institute, and with the Uniform Standards of Professional Appraisal Practice (USPAP), as mandated by the State of Minnesota.