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Lot 5, Block 1, Industrial Park, another site sold to Northern Forest Products on 10/95 for $64,500,
<br /> or $.54 /s.f.
<br /> If the subject were properly filled, the subject could command about $.55 -$.60 /square foot, after
<br /> consideration for a location adjustment. Only one of the sales, Northern Forestry obtained TIF. All
<br /> sales included all assessments paid by the seller.
<br /> Therefore:
<br /> Improved site: 75,557 s.f. @ $.55 /s.f. = $41,556
<br /> 75,557 s.f. @ $.60 /s.f. = $45,334 (say $42,000 to $45,500)
<br /> Unimproved site: 130,396 s.f. ® $.55 /s.f. = $71,712, say $72,000 (with fill), or $10,000 (no fill)*
<br /> 130,396 s.f. @ $.60 /s1 = $78,238, say $78,000 (with fill), or $10,000 (no fill)*
<br /> *This is the net price, is the subject were buildable, however it is not. To be buildable, the subject
<br /> site would require fill, to an elevation at least 2 feet above the flood plain. To accomplish fill in the
<br /> flood plain, an area outside the flood plain would need to be excavated. All of this cutting and filling
<br /> requires permits, which take time. We are estimating that the subject would require $50,000 of fill
<br /> (10,000 cubic yards). This is the amount shared by the seller, per his estimate. This has not been
<br /> confirmed by an excavation estimate, however is the best information we have, According to Tom
<br /> Peters, City Engineer from Bonestroo & Associates, the average cost of cut is $3.00 /cubic yard,
<br /> while the average cost of fill is $6.00 /cubic yard. Due to the large amount of excavation in the area
<br /> by the Rehbeins, the cost of this work is less than the average costs given by Mr. Peters. We have
<br /> to therefore subtract the $50,000. We are estimating that 10,000 cubic yards of cut somewhere close
<br /> to the subject is $2.50 cubic yard. According to Gerald Rehbein, he would cut for $2.50 square foot
<br /> on his land, which sets upstream from the subject. For this fee, he would include the land (his land),
<br /> so that the total expense for cut would be the $2.50 /square foot. Therefore, we need to subtract an
<br /> additional $25,000. Since subtracting these numbers would mean that the subject has a negative to
<br /> almost negative value, we are estimating the subject at nominal value, or $10,000. The value for the
<br /> subject, if buildable (with fill), is $72,000 - $78,000.
<br /> The next step in the Cost Approach is to determine the replacement cost for the subject building.
<br /> We have utilized the Marshall Valuation Service, a nationally recognized cost estimation guide, to
<br /> assist us in the replacement cost figure. The calculations are as follows:
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