HomeMy WebLinkAbout1999-10-26 CC Workshop Meeting 1
CITY COUNCIL WORKSHOP MEETING
TUESDAY, OCTOBER 26, 1999
6:00 p.m.
I. PUBLIC WORKS ISSUES:
1. Public Works Appraisal
2. New Public Works Building
3. Revising The Preliminary Budget
4. Feasibility Report Possible Water Extension Into The Downtown Area.
25 Oct 99
Fellow Councilmembers:
A couple of weeks ago, I stopped and spoke with Dick Huber, the owner of
Eagle Trucking on 20 Ave, next to the Corner Express set of stores. This was one
of the places that we had visited in regards to a Public Works building.
Mr. Huber is asking $400,000.00. For his building and land at that location,
The building itself is a little bit more (office space) than I think we need, but
maybe it could be a place for additional rental income and a place for a police
officer to work out for doing reports, interviewing citizens, etc.
I asked Mr. Huber, what would be the bottom line for cost, he stated that if
the city is interested and that he wouldn't have to carry a mortgage, etc, he would
sell it for $350,000.00 to the city. Talking further, he stated that if the city would
pay $1 to 2 hundred thousand up front, he would carry the city for awhile after
that, (exact time was not discussed).
Mr. Huber has land in Forest Lake that he is planning on moving and
building a new place of operations out of. The present site in Centerville only has
approximately one third of all of his equipment. He has two offers at $400,000.00,
but he would have to carry a mortgage for these people and he cannot afford to do
that if he is building at the same time.
Mr. Huber is going to move one way or the other, the city operation would
be less disturb to the adjoining neighborhood rather than some sort of other
operation in that location, the piece of ground may be large enough that a buildable
lot could be sold for commercial development. The enclosed parking lot could be
a large advantage for city operations and storage. Screen the fencing area for
better appearance from the residential housing. Sewer is on the site and water
could be obtained very easily.
I feel that we should continue to do the following:
a. State our strong interest in the site with Mr. Huber.
b. Obtain an appraisal of the building & property.
c. Verify the actual size of the lot and then look at doing a lot split.
d. Discuss further with Mr. Huber the financing options.
e. Obtain a date of obtaining the property.
f. Look at the offer and/or offers for the present site.
Respectfully
Tom Wilharber
Mayor
Oct 26 99 11:15a City of Wyoming 812- 462 -0576 p.2
r
City O 26885 Forest Blvd.
Administration Wq�n n P.O. Box teg
-I r � • Wyoming. NN 55092
NEIL H. GP.TZOVV ti • ///1//'
Mayor - i
DENNIS CORYELL EST. 1955 s 9- ).
City Administrator
Phone: x620575
Fax. 462 -0576
22 November 1998
To All Interested Parties in the matter of the Sale of the Old Wyoming Elementary School Property:
Enclosed you will find the information packet and /or map you requested. I'm also enclosing a timetable
for the consideration of proposals and the date at which the final recommendation will be made. Well
need your proposal by January 4, 1999. I hope you will feel free to call me with any questions you may
have,
The property itself is located one block east of US 61 on the north side of Old Highway 98, now called
County Road 22. It is not zoned; the City would zone the property to suit a use it finds acceptable.
The block to the west is zoned Central Business. The block to the south is General Business. The block
to the north is R -3 (multi - family housing) and the block to the east is R -1, single-family residential.
Sincerely,
C
Dennis Coryell
City Administrator
Wyoming Economic Development Authority Director
Oct 26 9 9 11:15a City of Wyom ing 612- 462 -0576 p.3
•
SALE OF
OLD WYOMING SCHOOL
Request for Proposals
School District 831, in collaboration with the City of Wyoming Economic Development
Authority, is seeking proposals for the sale of a tract of land In the City of Wyoming, lots 1-
16 inclusive, Block 8, Rodger's addition, parcel identification number 21 -0024340, known
as the "Old Wyoming School." The site is currently zoned for a school, and therefore, must
be rezoned for other uses.
1.
120420.1a/Dladling
Proposals must be placed in first class or expedited mail postmarked or received at City of
Wyoming Offices, 26885 Forest Boulevard, Wyoming, MN 55092 to the attention of Dennis
Coryell, Wyoming EDA Director, no later than January 4, 1999. Late proposals or faxed
proposals will not be accepted. Ten (10) copies of the proposal must be provided.
II. Minimum tjpgvt
Proposals that do not include the minimum requirements will not be accepted. A proposal must
include the following:
1. An offer to purchase the Old Wyoming School, with a minimum purchase price of 575,000.00.
2. Any teens or financing contingencies on the purchase price.
3. Representations and warranties tat the proposed purchaser will demolish at their cost the
school building on the site within 6 months of closing in compliance with all applicable state and
federal laws and city ordinances, including but not limited to, using state qualified or certified
(as the case may be) contractors to remove or remedy all environmental hazards identified on the
Phase I Enviromnental Worksheet.
4. Assurance of the financial ability of the purchaser to fulfill the representations and warranties
set forth in paragraph 3 in the form of performance bond or letter of credit in an amount
sufficient to perform the demolition of the building in accordance with paragraph 3 above. The
City of Wyoming has received preliminary estimates for the cost of the demolition of the
building in the range of $49,200.00 to $65,000.00.
5. Agreement to teens of the sale providing District 831 with choice of remedies in the event the
purchaser fails to meet the obligations of the contract including the representations and
warranties and the proposed purchaser's development plan. The choice of remedies shall include
a right to specific performance and a right of reversion, in addition to damages.
6. The proposed time table for the proposed development/use of the site.
Oct 26 99 11 :16a City of Wyoming 612-462-0676 p.4
7. Assurance of commitment to cooperate with the City of Wyoming planning process.
8. The proposed development/use of the site, including any zoning requirements, financial
incentives or tax increment financing requests, and any other information which would be
necessary for consideration of the proposal under the criteria set forth in this request for proposal.
9. The proposal must be signed by a representative or officer of the proposed purchaser who has
the authority to bind the proposed purchaser to a contract with District 831 and the City of
Wyoming.
M. Criteria for Consideration
Proposals will be reviewed by a joint committee of District 831 and the City of Wyoming
Economic Development Authority. The committee will review proposals and may ask to
interview some or all of the prospective purchasers. The committee will make its
recommendations to District 831 and the City of Wyoming on or around February 1, 1999.
Proposals will be evaluated by the committee based on the following criteria:
1. Proposals must meet the minimum requirements set forth above.
2. Proposals will be evaluated based upon the following factors:
Financial Plan; The review of the financial plan shall includes, but is not limited to:
• the purchase price;
• financing of purchase and proposed use;
• requests for governmental assistance or tax increment financing;
• creation of tax base;
• the prospective purchaser's financial ability to complete the project;
• and contingencies on the proposed development.
Benefit to the Community: The review of the benefit to the community shall include, but
is not limited to:
• aesthetic characteristics and use of green space;
• impact on area streets and traffic pattern;
• generation of business traffic and opportunities; and
• consistency with current and planned land use patterns.
• • In addition, since the Old Wyoming School currently provides recreational
opportunities, consideration of the benefit to the community shall also include
consideration of recreational facilities or parks. Development ventures may also wish
to include in their proposals plans for recreational use opportunities on the site or
another site.
2
uec eb OW Wit.
of Wyomrng ere 4be - U575 p.5
• n. If ,,. • •.•.J; - f 1 '% • & P« +: The review of the commitment to
cooperate with the City of Wyoming shall include, but is not limited to:
• zoning, conditional use permits, or other permit requests;
• payment of a park dedication fee as required by the City of Wyoming; and
• a narrative description of the proposed purchaser's commitment to work with the City
of Wyoming and the Wyoming Planning Commission in the development/use of the
site and to meet city standards.
Time Table for Closing and Comple ion of the Prgjrx.t. The review of the time table for
closing and completion of the project shall include, but is not limited to:
• the projected closing date, and
• the plan for the demise of the building in accordance with the requirements set forth
above and a plan for the development/use of the site.
• if the site will not be developed immediately following the demise of the buildings,
the plan must include a description of how the site will be maintained in the interim
between the demise of the buildings and development of the site.
• Higher consideration may be given for proposals that include a time table for a
reasonably prompt completion of the project.
3. The committee shall give equal and highest weighting to factors considered under the
Financial Plan and the Benefit to the Community.
N.
SalleiaLAcar
The successful purchaser shall be responsible far payment of all special assessments and public
improvements levied against the property.
V. Development Aoreegtent
The successful purchaser shall enter into an agreement with District 831 and the City of
Wyoming for the purchase and development of the Old Wyoming School which is consistent
with the terms of this request for proposal and the successful proposal.
VL Cost of Proposal
The prospective purchaser shall be responsible for all costs associated with the preparation and
submission of the proposal. Neither District 831 nor the City of Wyoming assume any
responsibility for expenses incurred in the preparation of proposals.
3
Oct 26 99 11:16a City of Wyominc 612 - 462 -0576 p.6
•
VII. $eservatipn of ighta
District 831 reserves the right to reject any and all proposals. District 831 also reserves the right
to :
• request clarification of any information submitted; and
• negotiate with the firm submitting the proposal recommended by the comminee to
secure more favorable terms and conditions.
Any questions relating to the information to be included in the proposal should be forwarded to:
Dennis Coryell
Wyoming EDA Director
City of Wyoming Offices
26885 Forest Boulevard
Wyoming, MN 55092
651/462 -0575
4
F- Oct 26 99 11:1Sa City of Wyoming 612-462-0676 p .7
Time Table and Plan for Soliciting Proposals
I. November 2, 1998
Request approval by the District 831 School Board of the request for proposal and the review and
consideration of the request for proposal by the City of Wyoming, City Council.
2. November 3, 1998 - December, 1998
Publicize Request for Proposal. Publish twice in Chisago County Press, Forest Lake Times,
Forest Lake Press, St. Paul Pioneer Press, Minneapolis Star and Tribune. Mail or fax to Chisago
County Housing and Redevelopment Authority, local chambers of commerce, local and regional
developers, business brokers, financial institutions, real estate agents, and other identified
contacts.
3. January 4, 1999.
Proposals are due. During January, the proposals will be reviewed by members of the committee
and the committee will meet to make a recommendation. Proposals will also be reviewed by Dan
Wiles, ofFWW Financial, Ltd. and summarized to assist the committee with financial
considerations. The committee may or may not decide to interview or request additional
information of any prospective purchasers.
4. February 1, 1999
The committee will present its recommendation for the sale of the Old Wyoming School at the
first regular meetings in February of the District 831 School Board and Wyoming City Council.
11D3164 -1
(lrzhgenaiocj •
5
Oct 26 99 11:19a City cif Wyoming 612- 462 -0576 p .6
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MEMO
DATE : October 22, 1999
TO : Honorable Mayor and Council
FROM : Tim March
RE : Appraisal of Public Works Site
*************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
Included with your Council information is a packet of information on the public works property
appraisal. I had asked staff to photocopy the relevant pages of the appraisal for Council review
prior to the workshop. The pages that were not photocopied were several maps of the site as
well as several photographs of the site included with the appraisal. These were left out because I
did not believe they would photocopy very well. A Sill copy of the appraisal is available for your
review at City Hall.
LIMITED SCOPE SUMMARY RESTRICTED
MARKET VALUE APPRAISAL
OF
THE PUBLIC WORKS SITE
WEST SIDE OF CENTERVILLE ROAD
BETWEEN SOREL & HERITAGE STREETS
CENTERVILLE, MINNESOTA, 55038
FOR
MR. JIM MARCH, CITY ADMINISTRATOR
THE CITY OF CENTERVILLE
1880 MAIN STREET
CENTERVILLE, MN 55038
BY
JULIE JEFFREY - SCHWARTZ
CERTIFIED GENERAL APPRAISER
OCTOBER 1999
OR
SUMMARY OF IMPTANT AC F TS
ADDRESS: 1694 Sorel Street NE, Centerville, MN 55038
PROPERTY TYPE: Currently improved with older buildings as a public works site, highest and
best use is to demolish the buildings and consider the land available for
mixed use redevelopment
OWNER: According to county records the owner is: The City of Centerville, with a
mailing address of 1880 Main Street, Centerville, MN 55038
INTEREST APPRAISED: Fee simple estate
APPRAISAL PURPOSE: Internal planning purposes of sale price estimates related to a redevelopment
project
APPRAISAL USE: Potential sale for redevelopment purposes
SITE SIZE: 50,000 s.f.
PROPERTY I.D. #: The only PID we could locate is 233122230010, however this is believed to
only be a part of the subject parcel.
ASSESSOR'S MARKET YEAR. LAND BUILDING TOTAL •
VALUE: 1999 $15,000 $94,400 $109,400
1999 PROPERTY TAX $31.99 -- the property should have tax exempt status. If fully assessed, the
AMOUNT: property taxes would be significantly more.
HIGHEST AND BEST USE: Mixed redevelopment use, could likely be commercial or moderate - density
residential
MARKET APPROACH CONCLUSION: $47,500 to $55,000*
*these values assume the buildings razed, and water and sewer service available in front of the site
INCOME APPROACH CONCLUSION: N/A
COST APPROACH CONCLUSION: N/A
APPRAISER'S ESTIMATE OF MARKET VALUE: $47,500 to $55,000*
*these values assume the buildings razed, and water and sewer service available in front of the site
DATE OF VALUATION: October 1, 1999, the date of most current inspection
APPRAISERS: Julie Jeffrey - Schwartz, Certified General Appraiser, #4002423
1
Lake State Realty Services, Inc.
2140 Otter Lake Drive White Bear Lake, MN 55110 651- 653 -0788 Fax 651- 653 -1381
E -Mail lakestate@goldengate.net
October 8, 1999
Mr. Jim March, City Administrator
The City of Centerville
1880 Main Street
Centerville, Mn 55038
RE: Limited Scope Summary Restricted Market Value Appraisal of:
The public works site located on Centerville Road, between Sorel and Heritage Streets
Centerville, MN 55038
Dear Mr. March:
Pursuant to your request, we have prepared a limited scope summary restricted market value
appraisal report for the above mentioned property.
Client and Statement of Intended Use:
This report is prepared for Mr. March, for the intended use of determining the fair market value
range of the subject property for intemal planning purposes of sale price estimates related to a
redevelopment project.
Type of Appraisal:
We have established that the client understands the limited utility of this Restricted Report and has
established that a Restricted Appraisal Report is suitable for Mr. March's intended use.
This is a Restricted Appraisal Report of a Limited Appraisal made according to the binding
requirements and guidelines of the Uniform Standards of Professional Appraisal Practice (USPAP).
We have performed all of the procedures of the Valuation Process required by USPAP for a
Complete Appraisal except those which the client instructed me to omit, since they are not applicable
to this appraisal problem. These omissions, called departures, are permitted by USPAP and they are
disclosed and explained in the following pages of this appraisal report. We have agreed to perform
this limited appraisal service as requested on behalf of Mr. March, and have advised about its
2
limitations. The client agrees that the performance of this limited appraisal service is appropriate
considering the total estimated market value and the purpose of the appraisal request.
Identification of the Real Estate Apnraised:
The address of the property is: 1694 Sorel Street NE, Centerville, MN 55038
The legal description is: The legal description is Lots 1, 2, 3, 4, 7, and 14, and the west
50 feet of Lots 5 and 6, Block 7, the Village of Centerville
The Property Identification # is: Only one PID number could be located, and it is doubted if
this is for the entire site. The PID number located is
233122230010.
Property Taxes & Assessments:
Per the Anoka County Assessor's Office:
PROPERTY TAX INFORMATION
The subject is part of the following:
PID # LAND IMPROV. TOTAL TAXES ASSESSM.
233122230010 $15,000.00 $94,400.00 $109,400.00 $31.99* $0.00
*The subject should enjoy tax exempt status. The tax amount is significantly lower than it should
be considering its estimated market value. We are also not certain that we have located all PID
numbers associated with this property. Various data base research does not find any other parcels
owned by the City of Centerville. It is possible that since the subject is owned by a tax exempt
agency that the data base does not have all applicable record.
The above information was obtained from Anoka County records, as reported through Plat Systems,
Inc.
S tatement of the Property Interest AQ raise u d:
The subject property was appraised in fee simple interest of the owner of record, without regard to
encumbrances, if any, as of October 1, 1999, the date of most recent inspection.
Statement of Purpose and Function of the Appraisal_
3
The purpose of the appraisal is to estimate the fair market value of the fee simple interest. The
function of this appraisal is to serve as a valuation basis for Mr. March, who intends to use this
report for intemal planning purposes of sale price estimates related to a redevelopment project.
Fee Owner:
According to county records the owner is: The City of Centerville, with a mailing address of 1880
Main Street, Centerville, MN 55038.
Five Year Sales History /Analysis of current offer:
(Appraisal Standard #5)
To determine the five year sales history, the records at the Anoka County Courthouse were used.
According to county records, the subject has not sold in the last five years. According to Jim March,
the property has also been owned by the City of Centerville for a period of years in excess of five.
Reference to the Definition of the Value Being Estimated:
The definition of market value is as follows:
Market Value is defined as "the most probable price in terms of money, which a property will bring
in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller
each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus ".
Implicit in this definition is the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated.
2. Both parties are well informed or well advised and each acting in what they consider their own
best interest.
3. A reasonable time is allowed for exposure in the open market.
4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements
comparable thereto; and
5. The price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale, or creative terns,
4
services, fees, costs or credits involved in the transaction.
•
Personal Property:
(Appraisal Standard #13)
The scope of this appraisal assignment does not include the valuation of personal property.
Listing, Options. or Contracts:
The subject property, according to Jim March, is not listed, nor are there any options or contracts.
Zoning_
The subject property is currently zoned P -1, a Public /Semi- Private zoning designation. It is so zoned
due to its use as a public works site for the City of Centerville. According to Jim March, the likely
new zoning would be Commercial or Mixed Use. A special and new zoning district would be
created as the subject would be for the purpose of redevelopment. The redevelopment district will
most likely be ambiguous, to allow for a wide potential of uses that would be complimentary to the
surrounding area. Suitable uses were discussed with Mr. March, who indicated uses from
commercial to even a high- density residential use, such as suitable for apartments. The exact end -
use would be decided upon a plan being submitted by a developer and approved by the city. Since
this redevelopment district would have a wide potential of varied uses, the land value typically is
based on its projected end use.
Description of the Extent of the Process of Co ing. and Reporting Data:
General Data: We investigated only a limited amount of general data. We now the area quite well
and understand the supply /demand relationship and economic trends of the neighborhood.
Additional study was not needed.
Comparable Sales: The comparable sales were located from Plat System's Inc., a local on -line data
base of sales, and the Regional Multiple Listing Service. We also obtained land sales from Glenn
Rehbien and Gerald Rehbien. Primary search criteria for comparable selection was similar -sized
commercial sites or similar -sized high- density residential sites. We could located an adequate
amount of similar commercial sales, but could not located any high- density residential sales.
Subject Property Data: We have relied on information from a site inspection, as well as public
county and city records. Additionally, we have analyzed neighborhood/locational influences, and
current market trends.
5
•
•
Statement of All Assu mptions and Limiting Conditions Affecting Analyses. Opin ions, and
Conclusions:
A statement of ordinary assumptions and limiting conditions is attached to this report. All
extraordinary assumptions or limiting conditions are disclosed with statements of each opinion and
value conclusion that is affected.
Statement of the Appraisal Procedures Followed:
This report is of a Limited Appraisal. All of the steps of the Valuation Process were followed except
for the following:
In our preliminary analysis and plan, general market data (trends and forecasts) were not specifically
considered. Also, no in -depth analysis of Highest and Best Use was completed. We have only
utilized one of the three approaches to value, as the other two approaches do not apply for vacant
land.
Statement of the Appraiser Opinio of the Highest and Best Use of the Property:
In our opinion the highest and best use of the subject property is for redevelopment purposes. This
would mean that the subject improvements should be razed. These are in poor condition, and no
longer provide a return to the land commensurate with their value and use. The land, as vacant, will
have a potential of varied highest and best uses based on the liberal land uses defined for a
redevelopment district within the city. Depending on when the property is offered on the market,
either commercial (neighborhood- related) or high density residential would be the likely use. We
are assuming commercial to be the highest and best use for the moment of time that this appraisal
is made, however it is likely that an apartment use would be the higher and better use. However due
to lack of data for apartment sales, we are only utilizing commercial land sales in the determination
of the highest and best use and subsequent value. We have performed analysis of different land
values for the City of Fridley. We have found that the prices paid for apartment sales are similar to
the value paid for commercial land sales, all other locational items, and physical items being similar.
Therefore, it is likely under either highest and best use scenario, that the values would be similar.
Site Description: The subject is comprised of 5000 s.f of usable lot area. The subject has 200 linear
feet of frontage on Centerville Road and 50 feet of frontage on Heritage Street, and 100 feet of
frontage on Sorel Street. The subject's topography is considered generally level, however slopes
below the Centerville Road grade (is near to at grade on Sorel and Heritage Streets). The slope
below Centerville Road grade is estimated at 1.5 to 2'. This slope is disadvantageous for commercial
uses, as typically it is desired to have development of the lot being at existing roadway grade for a
to minimum, positive site hydraulics. The development of a suitable pad site on the subject would
6
therefore require fill. It is difficult, without engineering information, to accurately determine the
approximate amount of fill it would require. The subject is serviced currently with sanitary sewer,
however water service is not present at the property. Water service is located approximately 300 feet
north of the subject on Main Street, or approximately 150 feet south of the subject on Centerville
Road. Likely extension of water service would be from the Centerville Road location. This
appraisal assumes the subject to be serviced with water service. The subject is basically void of
purposeful landscaping, and is primarily lawn area with possibly a few trees along the western
property line (it is difficult to determine as there are no survey or lot lines defined). The subject is
considered to be "L "- shaped, with the exception at the corner of Centerville Road and Sorel Streets.
The exception is an older duplex, which upon redevelopment of the subject site, would be included
into.the entire project. Please note: the subject is not located in a floodway or flood fringe district.
No easements are known to this appraiser. The legal description does not indicate any, and
according to Jim March, he doubts if there are any. In the event that there are any, the can most
likely be moved during a redevelopment project. Any likely utilities would be gas or electric, and
no visible signs of these were found during inspection.
Statement of the Exclusion of Any of the Usual Approaches to Value:
The only applicable approach for which to value land is the market approach. The cost approach is
utilized for improved properties, and the income approach is utilized for properties that are capable
of producing an income stream -- such is not the case with the subject.
Reference to the Existence of Specific File Information in Support of Value Conclusion:
All of the information which is part of the appraisal is on file in the office of the appraiser and is
available for inspection by the client, such third parties as may be authorized by due process of law,
and a duly authorized professional peer review committee.
Date of the Appraisal and Statement of Value Conclusions:
Date of Appraisal: October 1, 1999, the date of most recent inspection
Cost Approach Conclusion: N/A
Income Approach Conclusion: N/A
Market Approach Conclusion: $47,500 to $55,000*
*these values assume the buildings razed, and water and sewer service available in front of the site.
7
Land Sales:
We 'have looked at land sales in the subject's marketplace which have occurred since 1/1/94 to
present. We obtained these sales from the Regional MLS, Plat Systems, Inc, discussions with local
Realtors, and market participators. We have located all applicable commercial sales from these
sources. Unfortunately many of the commercial sales are located in areas that are floodplain. For
the purpose of development, these sites had to be filled to an elevation at least two feet above the
floodplain elevation. The subject, not being located in the floodplain does not have any risks
associated with development in filled areas of the floodplain. We will indicate the applicable sales
below, and briefly discuss their applicability with the subject.
Within the last 1 -3 years, Glenn Rehbein sold some property on Main Street, zoned/used as
commercial, in the floodplain, and filled. These sales include:
Lot 7, Block 1, Industrial Park, the location of the muffler shop on 62,500 s.f., which sold 11/96 for
$43,000, or $.69 /s.f.
Lot 2, Block 1, Industrial Park, a 63,900 s.f site sold to Esox Holdings LLC on 10/97 for $51,500,
or $.81 /s.f.
Lot 4, Block 1, Industrial Park, the 119,300 s.f. site of Goetz Landscaping, on 12/97 for $65,000,
or $.54 /s.f.
Lot 6, Block 1, Industrial Park, the 119,400 si site sold to Northern forest Products on 7/97 for
$65,000, or $.54 /s.f.
Lot 5, Block 1, Industrial Park, another site sold to Northern Forest Products on 10/95 for $64,500,
or $.54 /s.f.
Since these sales are all in the floodplain, and while filled, they still have a risk of flood, and most
likely pay flood insurance. This inherent risk is something that the subject development would not
experience. Therefore, the subject is superior without risk of flood, however inferior in location.
All of thesc comparables have better location, being on Main Street, just off the interchange. The
subject is superior in zoning (comparables are industrial). Another adjustment is necessary for the
passage of time, estimated at approximately 5% per annum.
The two most applicable sales, also happen to be the most recent sales. These two sales are also
located on Main Street, but not near the interchange. These are located where the new strip center
development is located on the north side of Main Street on Peterson Trail. Neither of these sales are
within the floodplain. These sales are as follows:
181X Main Street (northwest corner of Main Street and Peterson Trail) sold for $50,000 on 4/29/98.
Additionally, the buyer assumed assessments of $18,620. The indicated price per square foot for
the property, with assessment assumption was $1.22 /s.f. The lot was 1.29 acres (200' x 281'), and
8
was considered generally level and at roadway grades, requiring no fill. The subject is inferior to
this comparable in location, as well as the subject's need for fill.
18XX Main Street (northeast comer of Main Street and Peterson Trail) sold for $40,000 on 5/21/99.
The price per square foot was $1.33. The lot was 30,000 s.f. (150' x 200'), and was considered
generally level and at roadway grades, requiring no fill. The subject is inferior to this comparable
in location, as well as the subject's need for fill.
Considering the above data, the subject's estimated value is bracketed by the latter sales on Main
Street, and the earlier sales also Main Street, within the Industrial Park subdivision. We are
estimating the subject's market value range to be between $.95 to $1.10 /s.f. Any refinement to this
value would be based on the prospective use at the time of sale (e.g., commercial or high- density
residential). This value also considers the current supply of commercial zoned parcels. Any new
commercial parcels would need to be subdivided from the corner property at Main Street and 20`
Avenue. Other commercial land is available in Lino Lakes at the interstate, however this land is
significantly more expensive, and is more regional or auto - service in nature as opposed to
neighborhood commercial. Additionally, this value includes the subject's versatility in respect to
potential use, being that it is in a redevelopment district, that can allow business, high - density
residential or other related uses.
Therefore:
45,000 s.f. at $.95 to $1.10 /s.f. = $47,500 to $55,000*
*these values assume the buildings razed, and water and sewer service available in front of the site.
Statement of Compliance with USPAP:
Our analyses, and conclusions were developed and this Restricted Appraisal Report was prepared
in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the
Appraisal Standards Committee of the Appraisal Foundation.
List of Deg artures of Standards:
Standard Rule 1 -2 (c) "consider easements, restrictions, encumbrances, leases, reservations,
covenants, contracts, declarations, special assessments, ordinances or other items of a similar
nature."
Explanation of Departure: The client is familiar with the area, no adverse easements,
encumbrances, restrictions, leases, reservations, covenants, declarations, or special assessments were
located.
9
Standard Rule 1 -3 (a) "Consider the effect on use and the value of the following factors: existing
• land use regulations, seasonably probable modifications of such land uses regulations, economic
demand, the physical adaptability of the real estate, neighborhood trends, and the highest and best
use of the real estate."
Explanation of Departure: We are familiar with the neighborhood and did not feel that any of the
above factors existed nor had a direct impact on market value.
Standard Rule 1 -3 (b) "recognize that land is appraised as though vacant and available for
development to its highest and best use and that the appraisal of the improvements is based on their
actual contribution to the site."
Explanation of Departure: An in -depth Highest and Best Use analysis was not required for the
needs of the client. The land was appraised per its highest and best use as of the time of appraisal.
Standard Rule 1-4 (b) "collect verify, analyze, and reconcile: (i) such comparable cost data as are
available to estimate the cost new of the improvements (if any) (ii) such comparable facts as are
available to estimate the difference between cost new and the present worth of the improvements .
(accrued depreciation), (iii) such comparable sales data, adequately identified and described, as are
available to indicate a value conclusion; (iv) such comparable operating expenses data as are
available to estimate the operating expenses of the property being appraised; (v) such comparable
operating data as are available to estimate the operating expense of the property being appraised; (vi)
such comparable data as are available to estimate rates of capitalization and/or rates of discount."
Explanation of Departure: The income approach did not apply.
Standard Rule 1-4 (c) "base projections of future rent and expenses on reasonably clear and
appropriate evidence."
Explanation of Departure: The income approach did not apply.
Standard Rule 1 -4 (d) "when estimating the values of a leased fee estate or a leasehold estate,
consider and analyze the effect on value, if any, of the terms and conditions of the leases."
Explanation of Departure: Not applicable to this appraisal problem.
Standard Rule 1 -4 (e) "consider and analyze the effect on value, if any, of the assemblage of the
various estates or component parts of a property and refrain from estimating the value of the whole
solely by adding together the individual values of the various estates or component parts:"
Explanation of Departure: Not applicable to this appraisal problem.
10
Standard Rule 1 -4 (h) "appraise proposed improvements only after examining and having available
for future examination: (i) plans, specifications, or other documentation sufficient to identify the
scope and character of the proposed irtiprovements; (ii) evidence indicating the probable time of
completion of the proposed improvements; and (iii) reasonable clear and appropriate evidence
supporting development costs, anticipated earnings, occupancy projections, and the anticipated
competition at the time of completion:"
Explanation of D = . • ure: . a`pplic. de to this yin. 'sal "problem.
Signature: ;��ieare J � faM ed Genera pprais:
D ate Sign October 8,ThT
State Certification: Minn. #4002423
Also licensed in Michigan, Wisconsin, Ohio
•
11
A 'TIINS AND _I iTINGCIN) T INS
Limited Scope Summary (Restricted) Appraisal
The certification of this limited scope summary (restricted) appraisal report is subject to the following assumptions and limiting
conditions:
1. The Appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the marketability of the
title.
2. The property is assumed to be under responsible ownership and management
3. The property is appraised as though clear and free of any liens, encumbrances, or indebtedness, unless stated otherwise.
4. To the best of this appraiser's belief, the information contained in this report is true and reported correctly. The information in
this report, while not guaranteed, but has been taken from sources or records believed to be reliable. The methods of collecting
and confirming data are based on typical appraisal practices for limited scope reporting.
5. The Appraiser assumes that there exists no hidden defects with the site, sub -soil, or improvements, which would render it more
or less valuable, unless otherwise noted.
6. Disclosure by the Appraiser of the contents of this appraisal report is subject to review in accordance with the. by -laws and
regulations of the professional appraisal organizations with which the Appraiser is affiliated.
7. The highest and best use is assumed to be as currently utilized, unless otherwise noted.
8. The Appraiser is not required to appear in court or give testimony because of having made this report, unless arrangements have
been made in advance, and additional fees are arranged,
9. This report, or any portions thereof, will not be distributed, or otherwise disseminated, to anyone other than the person whom
commissioned this report or those involved in the certification. The use of this appraisal is restricted to the person commissioning
this report, and is not intended for lending purposes.
10. This entire appraisal report must be considered as a whole and any excerpts or portions from this report cannot be considered
separately.
11. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws, as well
as applicable zoning regulations and restrictions, unless otherwise stated in this report.
12. It is also assumed that all required licenses, consents or other authority from any local, state, or federal governments has been
obtained or can be renewed.
13. It is assumed that the subject improvements are within the stated boundaries, and that there are no encroachments on neighboring
property, or neighboring encroachments on the subject property, unless otherwise stated in this report.
14. The existence of potentially hazardous material such as urea- formaldehyde foam insulation, asbestos, existence of toxic water,
toxic waste, or radon gas may have an effect on the value of the property. The Appraiser is not qualified to determine if such
substances are present. The client may wish to consult an expert in this field.
15. Acceptance of or use of this appraisal report constitutes an understanding of and acceptance of these assumptions and limiting
conditions.
16. This' is a limited scope summary (restricted) appraisal to determine the subject's estimated market value. The client is aware that
this is a limited scope summary (restricted) appraisal, and the appraiser feels as though the reported result would not be
misleading. Use of a Restricted Appraisal Report as defined and permitted by the Uniform Standards of Professional Appraisal
Practice (USPAP). This report cannot be properly understood without the additional information contained in the appraiser's
12
work file. The use of this report is limited as follows: (a) to the client named herein and (b) for the specific use stated. Use by
unintended users (anyone other than the client for the specified use) is prohibited.
17. Market value is defined as: "the most probable price in terms of money, which a property will bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the
price is not affected by undue stimulus." Implicit in this defmition is the consummation of a sale as of a specified date and the
passing of title from seller to buyer under conditions whereby: 1.) Buyer and seller are typically motivated. 2.) Both parties are
well informed or well advised and each acting in what they consider their own best interest. 3.) A reasonable time is allowed for
exposure in the open market. 4.) Payment is made in terms of cash in United States dollars or in terms of financial arrangements
comparable thereto; and 5.) The price represents the normal consideration for the property sold unaffected by special or creative
financing or sales concessions granted by anyone associated with the sale, or creative terms, services, fees, costs or credits
involved in the transaction.
13
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Plat System Services, Inc. (612) 544 -0012
CERTIFICATION
I certify that, to the best of my knowledge and belief
That on October 1, 1999 I have personally inspected the property.
The statements of fact contained in this report are true and correct, subject to the Assumptions and
Limiting Conditions.
- My analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice.
(Appraisal Standard #1)
I have no present or prospective interest in the property that is the subject of this report, and we have no
personal interest or bias with respect to the parties involved.
The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the
approval of a loan, nor upon the occurrence of a subsequent event.
(Appraisal Standard #10)
My analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the requirements of the Code of Professional Practice of the Appraisal Institute.
No one provided significant professional assistance to the person signing this report.
I will not reveal any of the findings contained in this report to anyone, unless by due process of law, we
need to testify publicly to any findings contained herein.
That my independent opinion of the fair market value range of the subject property this 1st day of
October, 1999, is:
$47,500 to $55,000*
*these lues assume t b ild raged, and water and sewer service available in front of the site.
re - 70.•e
Certified General Apprais:•
Minn. Lic. #4002423
also licensed in Wisconsin, Ohio and Michigan
21
YKUP LSSIUNAL (VUALIP ILA I IUINS
JULIE JEFFREY - SCHWARTZ
Certified General Appraiser
EDUCATION
Appraisal
The Appraisal of Easements, Appraisal Institute
The Appraisal of Special Use Properties, Appraisal Institute
Report Writing and Valuation Analysis, Appraisal Institute
Advanced Applications, Appraisal Institute
Standards of Professional Appraisal Practice A & B, Appraisal Institute
Capitalization Theory and Techniques A & 8, Appraisal Institute
Basic Valuation Procedures, Appraisal Institute
Real Estate Appraisal Principles, Appraisal Institute
Investment Property Appraisal and Financial Analysis, ProSource
Advanced Yield Capitalization, ProSource
Appraising Income Producing Properties, ProSource
Appraising Commercial Properties, ProSource
Appraisal Standards and Ethics, ProSource
Certified Real Estate Appraisers Course, ProSource
Houses: FHA Appraisal and Construction Standards, ProSource
Home Inspections: Beyond the Basics, ProSource
Numerous Seminars (International Right of Way Assoc., Farm Managers & Rural Appraisers, Appraisal Inst.)
Several Real Estate Sales/Brokerage Courses
General
Lakewood College, Associate of Arts Degree
Realtor Institute, Graduate (G.R.I. Designation)
Northeast Metro Technical Institute, Computer Operations/Programming Degree
EXPERIENCE
President, Lake State Realty Services, Inc., since 1991
Real Estate Sales License since 1984, Brokerage license since 1991
Appraising Real Estate since 1985
Employed by Minnesota Department of Transportation for 4 years, as a real estate appraiser and expert witness
Testified at hearings and trials
Appointment to the Lino Lakes Economic Development Authority Advisory Board
General contracting experience and some property management experience
Served on the St. Paul & Minn. Board of Realtors Government Affairs, Prof. Standards, & Ethic Committees
Certified Instructor for "Expert Witness Testimony" through the State of Minnesota (Through Inf I. Right of Way Assoc.)
LICENSES, COMMISSIONS, MEMBERSHIPS/AFFILIATIONS
Certified General Appraiser License, Minn. #4002423
Certified General Appraiser License, Wisc. #482
Certified General Appraiser License, Mich. #12 -01- 005363
Certified General Appraiser License, Ohio #423328
Appointed to the Lino Lakes Economic Development Authority Advisory Board
Secretary/Treasurer -- Lino Lakes Area Business Association
Received Hammer Aware for reinventing a federal government that is more efficient and costs less from Vice President Al Gore
(1999)
Real Estate Brokerage License
Notary Public Commission
Member of St. Paul, Minnesota, and National Association of Realtors
Member of the Multiple Listing Service
Member of the International Right of Way Association (IRWA)
Member of the National Association of Realtors Appraisal Section
Affiliated with the Appraisal Institute (MAI Candidate)
Member of the National Association of Real Estate Appraisers (NAREA), Certified Real Estate Appraiser Designation (CREA)
PROPERTY TYPES APPRAISED
Extensive appraisal experience in Minnesota, Wisconsin, and Iowa, in numerous counties, cities, and towns, for various clients, including
various government (Federal, State, and local units), lenders, insurers, attorneys, and private clients:
Residential: single family (including Lakeshore /river front), town homes, condominiums, mobile homes, twin homes, and multi-
family of all types and sizes
Commercial: restaurants, junk yards, implement/auto dealerships, retail (stand alone and strips), parking lots, small to large
office buildings, regional medical facilities and clinics, bowling alleys, saw mills
Industrial: manufacturing, fabricating, high -tech, warehouses, distribution centers, single- and multi- tenant
Rural: crop land, rice farms, organic farms, farmsteads with all buildings
Investment: apartment buildings, duplex/multi -piex, office/retail buildings
Land: commercial, industrial, residential, residential subdivision analysis, wetlands, rural, railroad crossings, sand /gravel pits,
timber land, lakeshore /river front, scenic easements and other easements, flood plain land
Other: condemnation/litigation, partial takings/severance, feasibility, fractional interests, resid. /comm. review, equipment and trade
fixtures, special use: including post offices, Federal Buildings, U.S. Customs Border Stations, Reservation -owned properties,
railway terminals, churches, auto prooving grounds, substantially destroyed structures
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•
saneffrop, Maitre. Ant 'mk AMAIncJRJes ex. is an AMNMAR:Iva ActigatE4itf Lpprn: Jn.ry Fnpin .er
B onestroo Pnnelpa/s: Otto G. Bonw,nau. PE. • Joseph C Ar dergk. PC. • M.min L Sorv.oa. r•F. •
&CAA R. Cook. PE. • Rdbert C. Sebinlcnt, RE. • Jerry A. diadem PE. •
R ose e•�� to Rotten W Presene. PE,. RRnarel E. 1Wner. P.E. and Swan M. Oberlin C,PA., Senio, Consulbnf•
Anderlik & As 'mete Arrncpelr Howard A. Salford, PE. • Keith A. Geruon P. • Pube,1 R. rreffedr, P1. •
R.Knatd W dotter. Ee. • David O. Loskota, PE. • Robert C. RuSSeR, A IA. • Aiwa A. V a ir.. pf •
W01Ra1 ! Rautmann. Pa. • TCdeLFlel, PE. • rennett P Anderson, P1. • Mark t %Af•, PF. •
A ssociates tes SIMry P. WRlumxvs R},. I,s. • Robert h Runnels Apnes M Ring • Allan Rya Scnnidt. P1.
eJ V\, OBi p/Nceo Si. Paul Roc hesMr, WIIInldr and St. Claus, MN • MIIweukee, WI
Engineers & Architects Wrosde www.eonestroo.4om
October 26, 1999
Mr. Jim March
City of Centerville
1880 Main Street
Centerville, MN 55038 -9794
Re: Downtown Redevelopment
Phase 1 — Centerville Road
Our File No. 616 -Gen
Dear Jim: •
We were asked to provide you with a cost for preparing a feasibility report. The study would
include water main extension, decorative sidewalk and historic street lighting along Centerville
Road from Chauncey Barett Gardens to Westview Street. This is the first phase of the Design
Team Vision for redeveloping downtown.
We propose to do this study at a not -to- exceed cost of $3,000.00. ?lease let us know if you want
us to proceed with scheduling this work.
Your very truly,
BONESTROO, & O, ROSENE, ANDERLI ASSOCIATES
*
1.497
Thomas W. Peterson
TWP /imr
•
2335 West Highway 36 • St. Paul, MN 55113 • 651- 636-4600 • Fax: 651-636-1311
at Prudential Todd A. Hassel
Financial Planner
MN Insurance License 20192348
•
Individual Financial Services
Prudential Financial Planning Services
4166 Lexington Avenue N, Shoreview MN 55126
Tel 651483 -8287 Ext 2141 Fax 651483 -2062
October 25, 1999
Jim March
City Administrator
City of Centerville
1880 Main St.
Centerville, MN 55038
Dear Jim:
The following is a list of information you requested in order to approve an investment
seminar at city hall:
Date Saturday December 4th
Place City Hall
Time 10:00 - 11:30
Itinerary Investment Seminar
Cost Free
Attendance 20 -25 people
Advertising Sign in front of City Hall the week prior
Refreshments Coffee and rolls
•
We appreciate your support and look forward to working with you in the future.
Sincerely,
P � ly
- 6 - "k
Todd A. Hassel
Financial Planner
A Division of The Prudential Insurance Companyof America
Financial Planning • Investment Advisory Services
Variable Lit eInsurance • Variable Annuities • Mutual Funds
Investment advisory services offered through Prudential Financial Planning Services.
Securities products offered through Pruco Securities Corporation. Prudential Financial
Planning Services is a division of Pruco Securities Corporation, which isa subsidiary of
The Prudential Insurance CompanyafAmerica, both located at 751 Broad Street,
Newark NJ 07102 -3777