CCP 02-21-2006 - Laserfiche WebLink

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. . .. SCOPE OF WORK The Scope of Work describcs the extent of the investigative process which includes collecting, confirming, and reporting data used in completing this appraisal assignment. An inspection of the property was made on January 28, 2006 by William E. Petersen and Roger M. Rohrer. The effective date of valuation is the date of the inspection. A viewing of the immediate neighborhood and surrounding market area was completed by both appraisers. The subject property is the former Arden Hills Public Works Facility. At the request of the client, the property is appraised as vacant land assuming the existing building improvements have been removed. The City of Arden Hills informed the appraisers by letter that the intended general reuse on the parcel is for "limited business" and the appraisal should be based on that reuse. The client also stated the appraisal should assume the land has access from Hamline Avenue by virtue of an existing road easement to the southeast corner of the subject site. General and specific information pertaining to the subject and its location were analyzed as a basis to determine the highest and best use of the land. The highest and best use analysis determines the market data research required to properly apply the appropriate appraisal valuation methodology. The highest and best use of the subject land, if vacant, is for commercial purposes primarily office and/or medical. The appraisal is a complete appraisal since all three traditional valuation methods were considered at the outset of the assignment. The Cost Approach, Direct Sales Comparison Approach, and Income Approach were each considered. The Cost Approach is applicable when there are building improvements to be valued. The Income Approach does not apply since vacant commercial land parcels are rarely purchased for rental investment vehicles. The Cost Approach and Income Approach are applicable in the appraisal of improved properties. Since the subject is appraised as vacant land, the approaches are not processed herein. The Direct Sales Comparison Approach is the only approach processed. The Direct Sales Comparison Approach provides an estimate of market value for the subject land based on an analysis of similar comparable land sales. Based on a prior agreement with the client, this is a complete appraisal, with no departure from USPAP requirements, presented as a summary appraisal report in compliance with the reporting requirements of Standards Rule 2-2 (b) of the USPAP. BRKW APPRAISALS, INC. PAGE 11