2005-02-02 P&R Packet - Laserfiche WebLink

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, CORRELATION OF THE DIRECT SALES COMPARISON APPROACH We have performed a thorough search of the market for sales of vacant residential sites with lake frontage. Ourresearch concentrated on the northerly Ramsey and Washington County areas as well as southerly Anoka County . We have selected nine somewhat similar type land sales to compare to the subject property. All nine properties are generally considered to be equal to the subject property in overall location. Adjustments were however made for size under the economy of scale premise that as a property increases in size -the unit price decreases. These adjustments ranged from 10 % to 15 %. The more pertinent adjustment however ,is considered to be for the quality of the lake on which the sale properties are located in comparison to Centerville Lake and the subject properties. The sale properties that are located on Forest Lake and Bald Eagle Lake are considered to be superior to the subject property in lake quality. The sale properties located on Washington, Coon and Long Lakes are considered to be inferior to the subject lots in this regard. Sale #1 is located on Centerville Lake and considered to be equal to the subject property in this respect. I I I The large pump house on the property adjacent north of the subject lot is considered to be somewhat unsitely and a detrimental influences for the subject property as well as the large utility easement that extends through the properties. (See Plat Map) We have however assumed that the pump house could be inclosed with a privacy type fence and the utility easement could be altered to accommodate residential construction. We have further assumed that the access easement to the lake that extends along the shoreline, would be altered so as to not present a detriment to the full ownership and enjoyment of the lake frontage. Downward adjustments were made however for these detriments to unhindered development of the subject lots. Prior to adjustment, the nine lakeshore lot sales listed, range in overall price from $149,000 to $475,000 with front foot prices ranging from $1,490 to $6,643. After adjustment the front foot prices range from $2,119 to $3,859. The average is $2,958 per front foot with the median and midpoint of the range at $3,110 and $2,989 per front foot respectively. I, We have adjusted these forgoing listed lot sales to the subject lots, for the factors indicated. Based on this adjustment analysis, we have estimated a the optimum value for the subject lots at $3,000 for 112 front feet. This would indicate a value of $336,000 rounded for each of the two lots. This is a gross value which does not consider the following costs: 1. Removing the existing dwelling 2. Adjusting the easement for the 42 inch pipeline that extends diagonally across both sites to accommodate the construction of a dwelling on each site I, ,;~~-;;;;;;-',"CC"'-;''::=00;;b':C:i'~''~l'C;;';;~=:~;~3;:;C:;~;;';-"'-Tii"~~~~~Jbiptioilo't.'tlfedconvey~ce;~ftht~1l~6;~~~~~J.iip;~'cl~"1lJoynft~t~f';c;",;;;;'~:Cc;:;;c-;;,;C~"c.",;;; the lakeshore, subject to a flowage easement along the shoreline 4. A change in the zoning of the Centerville portion of the sites from P-l to R -1 to accommodate the construction of two dwellings. 36