2005-01-26 CC Packet - Laserfiche WebLink

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HIGHEST AND BEST USE DEFINITION The highest and best use of the subject property is for single family residential use. We have been informed by the owner that the existing utility easement across the subject sites could be adjusted. to accommodate the construction of new dwellings on the sites if the existing improvements were removed. The following definition of Highest and Best Use is taken from Real Estate Aopraisal Terminology, Byrl N. Boyce, Cambridge, M.A.: Ballinger, 1984, p.127. That reasonable and probable use that will support the hi~hest present value, as defined as of the effective date of the appraISal. Alternatively, that use, from among reasonably probable and legal alternative' uses, found to be physically possible, appropriately supported, financially feasible, and which results in highest land value. The definition. . . ap]?lies specifically to the highest and best use of land. It is to be recogmzed tliat in cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use. The four tests of Highest and Best Use are those outlined above, i. e. physically possible, legally permissible, financially feasible, and maximally productive. Highest and Best Use for the subject property is examined on an "as vacant" and "as improved" basis. The criteria for the Highest and Best Use for the subject are set forth in The Aooraisal of Real Estate, Twelfth Edition, Appraisal Institute, 2001, p.p. 305-327. I. I The following tests must be met in estimating the Highest and Best Use of a vacant parcel: there must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject site and are discussed as follows. AS THOUGH VACANT Phvsicallv Possible - One of the first constraints imposed on the possible use of a site, as if vacant, is dictated by its physical characteristics. Size, shape, area and terrain affect the uses for which a site may be developed. Utility of a parcel may depend on its frontage and depth. Consideration must also be made of its potential use rather than its actual use. The maximum use of the land must be determined. As noted in the "Site Data" section of this report, the two sites contain approximately 23,184 square feet each. The topography of the sites is generally level with a minor slope to the lake. 24