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<br />. ., <br />.' <br />-- <br /> <br /> <br />BETTENDORF'RO HRER ,KNOCHE <br /> <br />_INCORPORATED <br />REAL ESTATE APPRAISERS <br />e _.. . <br />July 30, 1992 <br /> <br /> <br />Mrs. Cathy Iago <br />City of Arden Hills <br />1450 West Hwy 96 <br />Arden Hills, MN 55112 <br /> <br />RE: Fee Proposal for appraisals of <br />City Hall & Harstad Sites <br /> <br />Dear Mrs. Iago: <br /> <br />In response to your request, I am submitting a fee proposal for the <br />appraisal of two sites for the city of Arden Hills. The sites <br />constitute the existing City Hall property and a piece of property <br />of the southerly shore of Round Lake, owned by Keith Harstad. The <br />intent of the appraisals is to assist the city in determining the <br />potential of a land exchange between the parties. Separate <br />appraisal reports will be prepared on each of the properties. <br /> <br />In regards to the Arden Hills site, it is noted that the property <br />. is presently improved with buildings serving as city offices. <br />These improvements are designed to meet the specific needs of the <br />city which may have limited utility in the open market. Also, the <br />improvements fail to maximize the utility of the site. It would <br />appear that the improvements would have no contributory value to a <br />typical purchaser. In order to maximize the utility of the site, <br />it would be necessary for the improvements to be removed. A <br />perspective purchaser would take into account the cost of removal <br />in determining a purchase price. Therefore in analyzing the Arden <br />Hills site, the validation of the property would constitute a <br />determination as to the market value of the land, less demolition <br />cost. <br /> <br />The Harstad site appears to be improved with a single family <br />residence and other site improvements. These improvements fail to <br />maximize the utility of the site. For a typical purchaser, the <br />improvements would have to be removed in order to develop the <br />property. As such, the valuation of the property would involve a <br />determination of land value, less demolition cost. <br /> <br />The appraisal process, for each property, would involve a detailed <br />inspection of the property together with an analysis of physical <br />characteristics, zoning, market trends and other information <br />leading to a conclusion of highest and best use. A valuation <br />analysis will be made based upon this highest and best use. Of the <br />. three approaches to value (Cost, Direct Sales Comparison and <br />Income) only the Direct Sales Comparison Ap~ro~c~ w~ll. b: u;i:iz.ed: . <br /> <br />SPRUCE TREE CENTRE SUITE 206 <br />1600 UNIVERSITY AVENUE <br />SAINT PAUL MINNESOTA 55104 <br />TELEPHONE 612/646. 6114 FAX 646' 8086 <br />