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HomeMy WebLinkAboutOrdinance 3747 LD 1 -n D C r n cn Z m ORDINANCE NO. 3747 m z 3 rn M �- c� :a C o D � AN ORDINANCE AUTHORIZING EMINENT DOMAIN ow v PROCEEDINGS FOR THE CITY TO OBTAIN TWO TRACTS, FROM KEARNY NATIONAL, FOR THE AIRPORT LAND ACQUISITION PROJECT IN CONJUNCTION WITH THE OBSTRUCTION LIGHTING AND REMOVAL PROJECT. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS : Section 1 . That the City Council authorizes and directs the city attorney of the City of Fayetteville, Arkansas to initiate legal action, in order to obtain the property known as Tracts 1152 and 53, owned by Kearney National, needed for the Airport Land Acquisition Project in conjunction with the Obstruction Lighting and Removal Project, on the property described below: See Exhibit "A" , attached hereto and made a part hereof. PASSED AND APPROVED this 21st day of December 1993 . APPROVED: By: �l/'✓>tic� red Hanna, Mayor ATTEST: By : Sherry L. Thomas, City Clerk c • � a 94001683 I v a CERTIFICATE OF RECORD State of Arkansas City of Fayetteville � SS I, Sherry 'Phomas, City Clerk and Ex. Officio rem,"der for the City of Fayetteville, ctc3 €:^reby certify that the annexed or f6reming is of record in zny Office and the Same appears in Ordinance & Resobatio=.x Lin!)ji page Vd'itrxes r,.y liana sea! t—fiIsaiaa day os 19_( 3 EXHIBIT "A " Tract 52: The South Half (S 'h) of the North Half (NI/2) of the Northeast Quarter (NE 'k) of the Southwest Quarter (SW 'k) of Section 33, Township 16 North, Range 30 West, less that portion thereof located within the U . S. Highway No. 71 right-of- way which bounds the property on the West, containing 9. 80 acres, more or less, Washington County, Arkansas and subject to the County Road right-of-way along the East side thereof. Tract 53 : The Southwest Quarter (SW 'A ) of the Northeast Quarter (NE 'A) of the Southwest Quarter (SW 'k ) of Section 33, Township 16 North, Range 30 West, less that portion thereof located within the U .S. Highway No. 71 right-of-way which bounds the property on the West, containing 9.62 acres, more or less, Washington County, Arkansas. 94001684 t I. C3rro CZaIYd „ �. VIP UJI .: .=-orrflcb F.. .c_ - - •'x' t1�.hlnolon A7�06 ,•, c.-rtiiy that 541a G+. t?rumartt v r. . - 'v r rod to r rf oNk' h'k�t : �n and 6:3 mma to reva r6lm-Azdc3m , !,1 _"Iccid SCS. a T:.-L:L i my hc, le crSrcd t{13 saai of r vrl an 'Qiafa J STATE OF ARKANSAS ss. ORDINANCE NO. 3747 - County of Washington AN ORDINANCE AUTHOR- IZING EMINENT DOMAIN r� j_(_ IN,,1 PROCEEDINGS, FOR THE [ ` • ` �w, ` herebycer- CITY TO OBTAIN TWO TRACTS. FROM KEARNY tify that I am the publisher of NE NORTHWEST ARKANSAS TIMES, a daily NATIONAL, FOR THE AIR- - newspaper having a second class mailing privilege, and being not less than four pages ofPORT ;LAND ACQUISITION PROJECT IN CONJUNC- five columns each, published at a fixed place of business and at a fixed (daily) intervals TION WITH THE AND RE- continuous) in the Cit of Fayetteville, Count of Washington, Arkansas for more than TION LIGHTING . AND RE- Y Y Y Y g MOVAL PROJECT. a period of twelve months, circulated and distributed from an established place of business CI ft ORDAINED F THE to subscribers and readers generally of all classes in the Ci and Count for a definite rice BE IT CRDAINEOUNCIL OF THE 8 Y lY Y P CITY' OF FAYETTE V ILLE. for each copy, or a fixed price per annum, which price was fixed at what is considered the ARKA�NSAS: value of the publication, based upon the news value and service value it contains, that at section 1 . That the City least fifty percent of the subscribers thereto have paid cash for their subscriptions to the Council authorizes and a: newspaper or its a agents or through recognized news dealers over a period of at least six Coon the city attorney of8 g g the City of Fayetteville. Ark- months; and that the said newspaper publishes an average of more than forty percent news ansas to initiate legal ac tion, in order to obtain the matter. property known as Tracts , #52 and 53, al, needed ed I further certify that the legal notice hereto attached in the matter of by forKearney National, needed Y g I tiont the Airport Land junction (^n p - �.1 withProject in conjunction V /1 l lfn m�l Cj +" 5_1 'A with the Obstruction Ligon r LLU i. / ` trig and Removal Project. on the property described was published in the regular daily issue of said newspaper for below: See Exhibit "A", attached consecutive insertions as follows: hereto and made a part 77 (, � � hereof. The first insertion on the ! l_a 1,4.ti 13 dayof 19�_ PASSED AND APPROVED this 21st day of December, the second insertion on the da of 19 1993. Y 'AIPPROVED : By': Fred M Hanna. MayorATTESe third on the da of 19 Hanna. a the i Sherry L. Tho- y mas, City Clerk EXHIBIT "A" and the fourth insertion on the day of 19 Tract 52: The South Half (2 of R E C E I VIE a,) itis North Halt .Of the , Northeast Quarter of INET of the Southwest Quarter (SWI/4 ) of Section33. Township North, Range 30 wast, less than rI n t t 1 n (1 pomon Publisher / General Manager thereof located within the U.S. Highway No. 71 right- RNIANCE DEPT. sof-way which bounds the property on the West, con- taining 9.90 acres, more or less. Washington County, Arkansas and subject to the County Road right-of-way along the Wast side thereof. Tract 53: The Southwest Quarter (SW1/4) of .the Northeast Quarter (NE1 /41 of the Southwest Quarter (SWI/4) of Section 33, Township 16 I � gf North. Range 30 West, less Sworn to and subscribed before me on this day of that portion thereof located within the U.S. Highway N . No. e property which 19 y boundsds the property on the West . containing acres, more or less. Washington County . Arkansas. _ _ - moi Notary Public My Commission Expires: 09 _ Cal -0? Fees for Printing $ SO Cost of Proof $ _� Total - - Federal Register. / Vn1. . 54. :No. 4l7 / .Thursday; March Z, 1588Rules a _ terminate occvpanry on'ehart notice for the reviewer's recommended or ' lowest acceptable bid or estimate, as (whether an not the renter also has that approved value depend on the provided for in ¢ 24.3M(c). right) supporta the establishment of a complexity of the appraisal problem. For Subpart I-Payment for Moving and lesser rental than might be found in a a low value property requiring an Related Expenses longer. fixed-term situation. uncomplicated valuation procese, the Seclian 141Q7 Cn'teric for Apptnisols reviews a approval endorsing the Section24.7W Fixed Payment far appraiser's report. may satisfy the Moving Expenses—Nonresidential Section 24.1o3(a) Standards of requirement for the reviewer's Moves appraisal In paragraph (a)(3) of this statement Section 24J05(d) Nonpmfit section. It is intended thatall relevant and reliable approaches to.value be Secdan 24.108 Expenses Incidental to incluorgade mems Gross revenues may utilized. However, where as Agency Transfer of.77de to the Agency include- membership tees, cines fees, determines thatthemarket approach ' Generan the Agenryfs able to a cash donations,oth na, tithes, fundreceifrom win be adequate by itself because of the: y P y thatsaleenc olcr the of fund collectionti such Incidental r:astn directly and, that enables the non-profit organvadon type of property being appraised and the = where feasible, is required to do so. In to operate. Administrative expenses are availability of sales data, it may limit 'order to Prevent the properly owner those for administrative support such as the appraisal asaigament to the market ' from making unnecessary out-of-pocket rent utilities, salaries,.advertising and approach. expenditures. and to avoid duplication of- other like items as well as fund raising Section 24.763(b) •Jnfl6ence of the expenses. the property owner should be . eases.. expenses for - project on fty t�camperrsatfom-Aaused In- .. . informed earl m the acquisition Process expenses. CPe' g two sectiom the term 'projecr is I * ' y ac9 P carrying out the purposes of the-non- ldng which of the Agency's intent to make such profit organization are. not included in intended to mean anaaderia �d fn kming arrangements.arrangements. In'�tion, it rs administrative expenses. The monetary is planned. designed. e�nhasized that such expenses must be receipts and expense amounts may be operate as a unit. :: ' '.: : :. to reasonable and necessary. . .. verified with certified financial. . Because of the public knowledge of. '. - - statemeataor tial documents the proposed project. property values- . .. . Subpart C�ueral Relocation . . . . - - uiredb tic agencies. .. may be ffwm+d -A Property owner ` - 'Requirement r .'_ .t . .. . _ . . reg . . y . . .. . . - . should not be Peaatnedbet:aase of a :- ' .. Section24. 0W Avai7a&Vtyof - � � � SectionicnPn � ents onaryUtility' ::. decease in value:ca�ed bythe ""- Cam arable cemeN Dove! - . on agmen . . Reloeati P is-- :. proposed projectnm.map a.wrcR -ed- at . . P A�7n public expense because.nf ln�ased Before Displacement- . . ..t- . : . ,' : Section 24:3W[c) 'dear9bes the issues value createdby the pmposedproject: Section 24204{af.':GenergL'Ihia -which must be agreed.to between the - ' Section 24_IL13[ej :.Conflict Ofirnerest..:_ pravfalon guires thainouae may be- . displacing agency and the utility facility The overall ob' ctiveis ia:inin�mi7e the .. ' - I - owner in determining the amount of the +u/ !e _ . .. regedtomove;fromadweIling " _ riskotfraudand -++ woe^'<atandio ;:. witbourt.one arable: lacement relocationpaymeatTofacilitateand. aid .. comparable replacement . . e promote public wnfill l * B n Federal. ..- .: egIDg imvfrtglreea merle avarTable. in ]n��g uchagre P P s ement. th andfedesalIy-amsfe� lan3.acquisthon: - - s _PracticesiatlieFederaTFnghwey , addrhpn4 ¢ 24"�4(a) require . . . prectices._Remgniizing.tfiat-lhe cosh :-. _ 'Whale possiliie, throe urmoie . . : Adm_fniatration iegulation."23 CFR 845, may outsveighthebenifitainsome Sob -sit tltilityRekocatioas :. • ._; ' comp=. bfe'replecemen( dwellingsshall. : P circ•,rmatances. 3 2d.103(e).provides that r '• - Adjustments and Reon uraem>m4 the same ereou may.both a and ',}; be made agailabrOw Thnathebasrc should be.followed •' s P P>u�°. standidTortheuumberzfr&f Orals 'negotiate an acquisitinn,'if the value is. . _ _ 8 requ4ed undei•1bis secfivaia t�ree. _ - Subpart lrReT*iment Housirrg 52588 or less. However. It ehould:be.:. .:. .; noted thaYall a s m tat he::: -- :.?- Only fn. situa6tms 'wbeie.tbiee':' Payments . PF 1, . , comparable replacement,diveAinP ora . :. reviewed in ac;:ordance withI U40V ".' Secdon 21.401 ._Replacement Housing. This includes apprafstds of real.pr•operty ` . sot avaifable (e g. whin ui itieloral housingmarkeidoesmtcontainthree P°ymrstf°rY80-Dayf3omeowner . . .. valued at $2.5= or lesai:ii j-- ;i-:... , comparable dwelliugsJmay the Agency Occupants Section 24.104 :Review of appraisals. - make fewer than three refeaals. .. Semon 24.401(a)(2). The Provision for ThisaectirnrewgrxadsthatAgemies..:, Sec;dar2 ..2tXi -RelocodbaAssistance extending eligibility far a replacement' differ in the authority delegated to the Ad Services housing rgoodpayment beyavd the one year an review appraiser. In eame mass the ' � v period for good mase means that e reviewer establishes the amount of the Sectiaa 24.205(cr(2)(ir•}(G� is intended extension may be grantad.if some event offer to the owner and in other cases the to emphasize that if the comparable beyond the control of the displaced reviewer makes a recommendation replacement dwellings are located is person such as name or life threatening which is acted on at a higher level. It is arses of minority concentration, illness. bad weather preventing the also Within Agency disctetion to decide minority persons should, if possible, also completion of construction of a whether a second review 1s needed if be given opportunities to relocate to replacement dwelling or other like the first review appraiser establishes a replacement dwellings not located in circumstances should cause delays in value different from that in the appraisal such areas. occupying a decent safe, and sanitary replacement dwelling, report or reports an a property. Section 2220! General Before acceptance of an appraisal theSection ion in Price )(4g ) to u review appraiaer must determine that Requirements--Calms; far Relocation The provision is ¢ 1A.4U1(c)[4}(iii) to use the appraiser's docnmentation. Including Ithe current fair market value for valuation data and the analyses of that Section 24207(x) allows an Agency to residential use does not mean the data, demonstrates the Qoundnesa of the make a payment for low cost or Agency most have the property appraiser's opinion of value- The uncomplicated moves without appraised. Any reasonable method for qualificationa of the review appraiser additional documentation. as brag as the arrivIng at the fair market volae may.t�c and the level of explanation of the basis _ payment b llmited to the amomst of the used • • ': -- APPRAISAL REPORT FOR CITY OF FAYMEVILL PROJECT Fayetteville Airport Land & Easement Aaluisition COUNTY Washington JOB 1L 3-05-0020- 11 . Phase 4 rant 15 TRACT . #52 & X53 LOCATION South School Avenue. North of the Drake Field Airport Washington County Arkansas FEE OWNER Kearney National . Inc. and Mill Products ADDRESS 3660 S. School Fayetteville AR 72701 ESTATE APPRAISED _ Fee Simple approximately approximately AREA OF WHOLE 19.42 Acs. PERCENTAGE OF TAKING 83 % (See Remarks) AREA OF AVIGATION ACQUISITION 16.21 Acs. (Legal Description attached) ESTIMATED FAIR MARKET VALUE OF THE PROPERTY: f. Before Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1111 . . . . . . . . . . . . . . . . $ 116.000 Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1 .620.000 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . . . . $ 1 .736.000 After Land [$ 116,000 Less Air Rights]. . . . . . . . . . . . .. . . . . $ 111 .200 Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1 .620.000 Total . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 $ 1 .731 .200 FAIR MARKET VALUE OF ACQUISITION . . . .$ 4. 800 As of 16th day of March , 193 DETERMINATION AND ALLOCATION OF F. M. V. OF ACQUISITION Air Rights: (See Factor Formula) 10. 37 ac. X $6,000 X 6. 82 % . . . . . . . . . . . . . . . $ 4.243 .40 5. 84 ac. X $6,000 X 1. 7190 . . . . . . . . . . . . . . . . $ 599. 18 Land: . . . . . . . . . . . . I . . . . . . . . . . . . . . . . $ 0 Improvements: . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . $ 0 Total Air Rights, Land, Improvements . . . . . . . . . . . . $ 4 .842.58 Damages or Benefits . . . . . . . I . . . . . . . . . . . I . . . I . . . . . . . . . . . $ 0 Total Compensation . . . . . . 1111 . . . . . . . . . . . . . . . . . . . . . . . . . $ 4. 842.58 Say $ 49800 ATTACHMENTS : a X Certificate of Appraiser X Plat pp X Photographs X Neighborhood Data X Zoning, H&B Use & Narrative Apprai er X Tax Assessment Card X General Information X Market Data Approach Da e CERTIFICATE OF APPRAISER I hereby certify: That I have personally inspected the property herein appraised, that I have made a personal field inspection of the comparable sales relied upon in making said appraisal and that I have afforded the property owner the opportunity to accompany me on an inspection of the property. The subject and the comparable sales relied upon in making said appraisal were as represented by the photographs and data contained in said appraisal. That to the best of my knowledge and belief the statements contained in the appraisal herein set forth are true, and the information upon which the opinions expressed therein are based is correct, subject to the limiting conditions therein set forth. That I understand that such appraisal may be used in connection with the acquisition of avigation easements for a project to be undertaken by the City of Fayetteville Municipal Airport. That such appraisal has been made in conformity with the appropriate City laws, regulations, and policies and procedures applicable to appraisal of avigation easements for such purposes; that report has been prepared in accordance with the Order For Acquisition and Relocation Assistance for Airport Development dated May 7, 1981 by the Federal Aviation Administration; that in appraising the value before acquisition , no consideration has been given to increases or decreases in Fair Market Value caused by the public improvement; and that to the best of my knowledge no portion of the value assigned to such property consists of items which are noncompensable under the established law of said City. That neither my employment nor my compensation for making this appraisal and report are in any way contingent upon the values reported herein. That I have no direct or indirect present or contemplated future personal interest in such property or in any benefit from the acquisition of such property appraised. That I have not revealed the findings and results of such appraisal to anyone other than the proper officials of the City of Fayetteville, and I will not do so until so authorized by said City officials, or until I am required to do so by due process of law, or until I am released from this obligation by having publicly testified as to such findings. That in my opinion the just compensation for the acquisition as of the 16th day of March , 192L, is $.4.800 based upon my independent appraisal and the exercise of my professional judgment. Date ignature Signature i JOB Project 113-05-0020- 11 TRACT 52 & 53 j. CONTACTED FOR APPRAISAL INSPECTION AND COMMENTS Date: March 10, 1993 Name: Kearney National, Inc. , and Mill Products, (Tom Boyd) Comments: The appraiser contacted the owner of the subject property prior to inspection by mail and by phone. The appraiser discussed the easement over the phone with Tom Boyd, plant manager. The property was physically inspected on March 16, 1993 and Jim Schrum, Maintenance Foreman accompanied the appraiser. TEN-YEAR SALES HISTORY: The current property owners have owned the -subject property in excess of ten years. A portion of the subject property was acquired by the Kearney National, Inc. , from the Fayetteville Chamber of Commerce, Inc. , on or about April 6, 1972, per deed 830-628. The portion of the subject property currently owned by Mill Properties, Inc. acquired the property from Fayekearn Corporation, (an Arkansas corporation) on or about November 21, 1977, per deed 943-968. No other transactions involving other parties have been recorded at the Washington County Courthouse. CHANGES IN PROPERTY SINCE DATE OF PURCHASE: Building of Industrial Plant and other additions METHOD OF APPRAISAL: See The Appraisal Process The appraiser has utilized the Market Data Approach in estimating the value of the subject site before the taking. The appraiser has reviewed the engineering plans provided to him and has noted that the subject site does not penetrate lite horizontal surface over the property. The Cost Approach has been performed to facilitate the appraisal. The Income Approach was not utilized due to the lack of adequate economic rental data on properties such as the subject. The value of avigation easement taking will be valued by utilizing the Factor Formula. Further explanation of the Factor Formula is described later in this report. I I V GENERAL REMARKS: Reference Exhibit A Discussion of the Proposed Easement: The subject property is located in the Runway Approach Zone on the north side of Drake Field . The subject property's proximity to the airport is north of the runway 800' from the Clear Zone Area at the subject's south property line and 1 ,750' at the subject's north property line. The proposed Approach Surface easement extends over the subject property at a slope of 34: 1 rising to the north . The East Transitional Surface easement area extends over an eastern portion of the site and has a slope rising both to the north and to the east at 34: 1 and 7: 1 respectively. There are two existing easements which currently encumber the site. A Clear Zone Easement and a Mals Lighting Easement both of which extend over the western portions of the subject site along the S .School and which are proximal to the Centerline of the Runway Extended, (these will be discussed further). The subject site is a large and irregular shaped tract lying entirely within the Runway Approach and Runway East Transitional Approach Surface areas. The site's location is relatively close to the end of the Runway Clear Zone and consequently results in the surface of the Approach Slope to be located relatively close to the surface of the ground of the subject. The manner in which the subject is situated to the Airport Runway is such that a wide assortment of elevations difference result between the Approach Surface and the subject's ground, as well as the East Transitional Approach Surface and the ground beneath. Seven elevation differences will be averaged in order to arrive at a figure to be used in the Factor Formula for the distance of the Easement above the ground: 1 -2) the two elevation differences at the corners of the west property line, 3-4) the two elevation differences on the north and south lines of the site where the Approach and Transitional Surface areas meet, 5-6) the elevation differences in the East Transitional Approach Surface at the east property line corners, and 7) the point where the elevation difference between the Approach Surface and the subject improvements is the smallest. Five distances will be averaged in order to arrive at a figure to be used in the. Factor Formula for the distance of the subject at a right angle from the Centerline of the Runway Extended: 1 -2) the distances of the west corners from the Centerline, 3-4) the distances of the east corners from the Centerline and , 5) the distance of the southeast corner of tract 53 from the Centerline. Two distances will be average in order to arrive at a figure to be used in the Factor Formula for the distance of the subject from the north boundary of the Clear Zone Area ht the end of the Runway: 1 ) the distance of the south property line where the Centerline of the Runway Extended crosses, 2) the distance of the northwest corner of tract 52 which is along S .School Avenue. L . Discussion of Existing Easements: There are two existing Avigation related easements encumbering the subject property. There is an existing Mals Clear Zone Easement area which extends over a small portion of the site and rises at a slope of 50: 1 , reference Exhibit A. The proximity of this Easement Surface to the ground below is closer than the location of the proposed easement. Therefore, the appraiser will not assess any additional value diminution to the area encumbered by the Mats Lighting Easement as the proposed easement will not cause any further limitations to this portion of the site. Based on calculations performed by the appraiser, the area of the existing Mals Lighting Easement is approximately 3 .21 acres or 16.5 % of the whole. There is also an existing Clear Zone Easement which extends over a portion of the subject site at a slope of 20: 1 . Reference Exhibit A. The proximity of the existing Easement Surface is above the proposed Easement Surface which has a slope of 34: 1 . The addition of the proposed easement will mathematically result in a greater amount of value diminution as it is located closer to the ground than the existing Easement. [For example, at the southwest and northwest property corners the elevation of the Existing Easement is 1 ,291 .25' and 1 ,337.5' respectively, the elevation at the proposed Easement at the same points are 1 ,274.26' and 1 ,301 .5' respectively. A difference of 17' and 36' respectively. The adjustment to the Factor Formula will take this into account.] See the Factor Formula for further explanation. Based on calculations by the appraiser, the area of the existing Clear Zone Easement and Less the area of the existing Mals Lighting Easement is approximately 5JU acres or 30% of the whole. The average distance of the ground below the approach line is approximately 45. 17 . The subject's average distance from the centerline of the runway extended is 715 '. The average distance of the subject from the end of the Clear Zone is approximately 515 '. GENERAL INFORMATION MARKET VALUE DEFINED The American Institute of Real Estate Appraisers defines market value as follows: The most probable price which a property should 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: I . Buyer and seller are typically motivated. 2 . Both parties are well informed or well advised, and each acting in what he considers his own best interest. 3. A reasonable time is allowed for exposure in the open market. 4. Payment is made in terms of cash in U.S . dollars or in terms of financial arrangements comparable thereto. 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. PURPOSE OF THE APPRAI AL This appraisal is made for the purpose of estimating the Fair Market Value of the subject property acquired by the City of Fayetteville under its right of eminent domain in connection with the Avigation Easement for the Fayetteville Municipal Airport Project. Said acquisition is for the purpose of airspace rights to the airport for safety reasons. The appraisal will include all damages and/or benefits, if any, to the extent that benefits are allowed under state law, to the remaining property as just compensation for the property taken . PROPERTY RIGHTS APPRAISE The property is appraised as though owned in fee simple and unencumbered. A fee simple title is the fullest type of private ownership possible subject to all public limitations including zoning, taxation, and eminent domain; and also subject to private limitations which may exist such as easements and restrictions of record. CONTINGENT AND LEWTING CONDITIONS This property is appraised in fee simple subject to the following limiting conditions: 1 . It is assumed by the appraiser that the maps, construction plans, and/or tract descriptions furnished to him are correct. 2 . It is assumed by the appraiser that the attached deed furnished to him is correct and reflects the fee owner and .all holders of less than fee interests in the property. 3. It is the opinion of the appraiser that information gathered by . him from various sources, including dates, estimates and opinions, which are contained in this report were obtained from sources considered reliable; however, no liability for them can be assumed or guaranteed by this appraiser. 4 . No responsibility for matters legal in character is assumed by your appraiser. All existing liens and encumbrances have been disregarded, and the property is appraised as though free and clear. 5 . The various sketches and exhibits included in this appraisal are placed herein to assist the reader in visualizing the property under appraisal. Your appraiser made no surveys and accepts no responsibility for them. i 6. The appraiser has no present or contemplated future interest in the property appraised; and neither the employment to make the appraisal, nor the compensation for it, is contingent upon the appraised value of the property. THE APPRAISAL PROCESS A professional appraisal begins with a thorough inspection of the property being appraised. This includes a physical inspection of the site and all improvements which have contributory value. It also includes an inspection of the neighborhood and of site improvements which may positively or negatively affect the value of the subject property. And finally, it includes a review of the general area of the subject in order to ascertain any favorable or unfavorable environmental or economic conditions which may exist, such as proximity to markets, poultry operations, noisy highways, and schools, etc. . After a thorough analysis of the subject property, its neighborhood, and its general area, the appraiser then attempts to ascertain a fair market value. Three time tested appraisal approaches or techniques are utilized in the profession in order to develop a value indication. These three approaches are the Market Data Approach , the Cost Approach, and the Income Approach. Each approach is briefly described as follows: The Market Data Approach - Also known as the Sales Comparison Approach is a comparison is of similar, recently sold properties to the subject property. The Cost Approach - Involves estimating the replacement cost new of the improvements, deducting the estimated accrued depreciation, and then adding the market value of the land. The Income Approach - An appraisal method in which the estimated gross income from the subject property is used as a basis for estimating value along with gross rent multipliers derived from the marketplace. Each approach utilizes the various principles of value which exist in the marketplace. These value principles include supply and demand, balance, contribution, conformity, external items, opportunity costs, and utmost - substitution. The principal of substitution states simply that a knowledgeable, prudent purchaser has three alternatives. That is, 1 ) to buy a vacant site and construct a duplicate or similar property without delay (Cost Approach) , 2) to purchase another existing property with equal or similar desirability and utility (Market Data Approach) , or 3) to invest in or acquire a comparably yielding income stream of similar quality, quantity and longevity (Income Approach). All three approaches may not be used in all appraisal assignments depending upon the applicability of the approach to the property being appraised and the scope of the appraisal assignment. After the appraiser applies the applicable approaches to the subject property , he must reconcile the differences in value so indicated. Based upon the appraiser' s experience and judgment, this may involve selecting one of the three approaches which is deemed more reliable or it may involve employing a weighted <average of the three approaches in his final correlation or conclusion of value. 9 PHOTOGRAPHS Subject Site - Front View of the Subject Improvements and Air Above . _ i.. :.::. ... .' :::...I] North Side of Subject Improvements Parting Lot East of the Plant Yeµ fl ..IT .. $i r. i' •I ^KIT if 11 Rurnq Division nnwnun.0 hoc • rn! a. S.c:t }r: rlriif�7 `Fr �. rn.`.l( . �`. J•N Y� Jb' r !i` �" L. r.. JY• VH�1 rF\'�.�1i }A 9' 7 •. /,.r' A • • :. i y,p�'i •�`sefiy�c:•.S �.Ii i._ t.. �! .,y¢.iL�',�';4i .y • .n . ill•• ,.' ' v 90 NEIGHBORHOOD DATA AND ANALYSIS For appraisal purposes, a neighborhood is considered to be a portion of a large community in which there is a homogeneous grouping of inhabitants, buildings, or business enterprises. Inhabitants of a neighborhood usually have a more casual community of interest and a similarity of economic level and cultural background. Neighborhood boundaries may consist of well defined natural or man-made barriers or they may be more or less well defined by a distinct change in land use or in the character of the inhabitants. The subject property is located on South School Avenue in the extreme southern portion of the City of Fayetteville. Neighborhood boundaries could be Greenland to the south, 15th Street to the north, Sunrise Mountain to the west, and the Country Club Mountain to the east. The neighborhood is characterized by small retail/service commercial business properties, some industrial type properties, and lower to middle income single family residences. The area lies within the City of Fayetteville Drake Field land and avigation easement acquisition project. The majority of homesites are older middle to lower income homes which show average pride of ownership. The majority of the homesites area characterized by wooded hillside tracts on paved streets. The neighborhood is supplied police and fire protection by the City of Fayetteville. Municipal water is available to most portions of the neighborhood by the City of Fayetteville. Electrical service is available to all the neighborhood. Natural gas is also available to most portions of the neighborhood. Most portions of the area are served by municipal sewer. Access to and from the neighborhood is provided by South School Ave. from the north and south, and Hwy. 71 bypass from the north. Property values in the area are stable to declining, the growth rate is only moderate to declining, the predominate occupancy for residential homes in the area is a mixture of owner occupied and tenant occupied, the general appearance of properties in the area is fair to average and the appeal to the market for this area is fair to average. No other unfavorable factors were noted upon inspection of the neighborhood. • Ad DESCRIPTION OF TIIE SUBJECT PROPERTY BEFORE THE TAKING -I SITE The subject site is a irregular shaped parcel containing approximately 19.42 acres as described by the legal descriptions written by the engineers and then provided to the appraiser. The site has access from South School Avenue on its west side. South School Avenue is a four lane paved highway with a center turn lane. The site is an open site which is level and at road grade. The site has approximately 1150' of frontage on S. School Ave. Drainage appeared adequate upon inspection. The site has access to public water, electricity, natural gas, and sewer service. 1 ; IJY 1 1 Y:I :_;_ Y_:�i1- - �1►f19 The partial taking is a permanent non -possessing property interest in airspace over a land parcel or portion of land. The subject easement includes the whole site (19.42 acres as described by the engineers). The easement covers 100% of the subject, (see General Remarks). The avigation easement is for the use and benefit of the public, as easement and right-of-way, appurtenant to Drake Field Municipal Airport for the unobstructed use and passage of all types of aircraft in and through the air space above the property above an imaginary plane over the property. The subject property lies in the Approach Surface and East Transitional Approach Surface of the Runway Protection Zone. Theproperty site and improvements lie below the horizontal surface and only a single tree penetrates into this surface zone. I J Type: Class C Industrial building Age: 39 Years & 24 Years Size: 137,900 sq. ft. Exterior Walls: Concrete block and metal, 22' sidewalls in warehouse Roof Material: 2" styrofoam, fiberboard and rubber sheet over metal decking Foundation:. 4"-6" reinforced poured concrete Frame: Steel Windows: Single pane metal sash hopper type Insulation: Metal double sided, II" styrofoam in warehouse ceiling Heat: Gas space heaters in production area, infra -red tube heaters (11) and warehouse gas furnace. Central heat in engineering lab and office area Cool: Electric air conditioning system, roof mounted. Central air in engineering lab; Ceiling hung fans and exhaust fans in manfacturing area Floors: Vinyl tile in reception area, concrete in work area, vinyl in break area Interior Walls: Partitioned concrete block & wood studs. Wood panelling in office Ceilings: Dropped acoustic tile in office area, 12' Electrical: 230 volt 3 -phase in warehouse, 208 volt 3 -phase in other Dropped and recessed flourescent. Some track lighting Plumbing: Office area - Men's - (2) stalls, (3) urinals, (3) sinks Women's - (4) stalls, (4) sinks Production area - (4) restrooms - (12) stalls, (4) urinals, (9) sinks (4) drinking fountains, Recirculating water system with cooling Quality of Construction: Average Condition of Improvements: Average Estimated Remaining Economic Life: 20-25 years Other Improvements: (3) loading docks, (6) overhead doors, (2) air compressors, Water cooling system, Asphalt drive behind building, Security fencing (6' chan link feence, 3 -strand barbed wire), Sprinkler system, Asphalt parking lot, Concrete sidewalk - .9. BT' 4' C BB' x00' too• 301' BUILDING PLAN an. I. V ;r .1 i►11 1 .`��i1.Y�l By "Highest and Best Use" is meant the most likely and profitable use to which a property can be put. It is sometimes called the most profitable or optimum use. It is that use which, at the time of the appraisal, would most likely produce the greatest net return in money or amenities. The appraiser has analyzed the highest and best use of the subject property before and after the taking as follows: Before the Taking The subject property is currently an improved parcel of land utilized for light industrial purposes and is zoned for light industrial uses (1-1). Under the current zoning, commercial and industrial, as well as agricultural and limited residential land uses may be utilized on the site. All utilities are available for industrial uses. Adjacent property uses include: industrial zoned property to the north, south, east and west across S.School Ave. Along South School and to the south are several other industrial facilities similar to the subject. The major influences of the area near the subject and along South School Avenue is commercial and industrial uses with good access to S. School and the airport to the south. Its the opinion of the appraiser that the highest and best use of the subject site as vacant and improved is its present use as an industrial use benefiting from the proximity to S. School Avenue and the Drake Field airport. After the avigation easement has been given the subject will be essentially in the same position it was prior to the taking, aside from being somewhat limited on expanding any permanent structures into the easement area above the site and within the boundaries of the easement. As indicated previously, the average distance between the ground and the horizontal surface elevation is approximately 72 feet with the lowest point of the horizontal surface being 50 feet above the southwest comer of the property. It is the opinion of the appraiser that this distance is adequate for the construction of typical commercial/industrial as well as residential improvements. Therefore, the subject's highest and best use as vacant after the taking will also be for a commercial/industrial uses requiring good access and benefit from a close proximity to the airport and major roadways. rJ E DISCUSSION OF SEVERANCE DAMAGE Where there is a partial taking of property, such as the case of the subject property, any loss in value of the remaining property caused by the partial taking is known as severance damage. The American Institute of Real Estate Appraisers defines severance damages as follows: It is the diminution of the market value of the remainder area, in the case of a partial taking, which arises (a) by reason of the taking (severance), and/or (b) the construction of the improvement in the manner proposed. Severance damages are compensable to the property owner if a decline in value is attributable to the partial taking. In the case of the subject property, the partial taking is an avigation easement whose proposed use is for overhead clearance for air traffic flying into and out of the Drake Field Airport. The appraiser has reviewed the regulations regarding height restrictions for Industrial (1-1) zonings. With regards to the "setbacks" from the street, under 1-1 zoning, any structure must be at least 25' from the street. At a point 25' west of the east line or boundary with S. School Ave., the property has a maximum of approximately 12' of vertical area to build at the southwest corner of the site. DISCUSSION OF ENHANCED VALUE OR SPECIAL BENEFIT In some eminent domain cases which result in partial takings, the remaining property may actually increase in value as a result of some improvement made by the condemning authority. In these cases the remaining property is considered to receive an Enhanced Value or Special Benefit. Thus, if the condemning authority takes a portion of a property for an improvement and this improvement actually increases the value of the remaining land, the amount of just compensation will be reduced by the value of the special benefit. It is the appraiser's opinion that the future value of the remaining subject property will not be enhanced by the taking (Avigation Easement). •1. S : t ; u 1 The purpose of an avigation easement appraisal is to estimate the market value of an easement for flight by aircraft over a property lying within the Runway Approach Zone. In the case of the subject property, finding evidence from the market which indicates damages from the effects of avigation easements over real estate is not possible due to the long time existence of the Drake Field Airport in its present location. Additionally, the market values of the real estate surrounding the airport have long since adjusted to reflect the appeal of this area close to the airport. Therefore, in order to quantify the value of the air rights over the subject properties, the appraiser will analyze three relevant proximal distances of the properties' from the airport. The analysis involves three dimensions; 1) the distance from the end of the runway to the property, 2) the distance at a right angle of the Runway Centerline Extended to the property, and 3) the distance of the property below the Approach and/or the Transitional Surfaces. The two elements which carry the greatest weight and thereby the greatest loss in value are the distance of the subject below the Approach/Transitional Surface and its distance from the center line of the Runway Extended. For example, the closer a property is to the end of the runway, centerline of the runway and/or the approach zone, the greater amount of damage should occur. Conversely, the further a property is from the end of the runway, centerline and approach zone the less amount of damage will occur. In estimating the relative damage sustained to the property by each component, 2% relative damage is given to the distance of the property from the end of the Runway, 3% relative damage is given to the distance of the property from the Center Line Extended and 5% relative damageis given to the distance which the property lies below the Approach/Transitional Surface. The largest relative damage is assigned to the distance between the ground and the Approach/Transitional Surface in recognition of the fact that 1) this is the most hazardous of the three dimensions, 2) this is the most limiting variable to the property's potential, and 3) the continual right of the Grantee to prevent the erection of structures or growth of trees into the Approach Surface, and the right to remove or light any such objects, along with the right of ingress and egress over the property. Eacli damage percentage is relative to the subject's location within the zones, eg. if the length of the Runway Approach Surface is 5,130' (100%) and the property is 1,000' from the end of the runway (19.5%), the relative damage to the property is calculated by subtracting the relative distance from the total distance possible, (100% - 19.5% = 80.5%). Thus, 80.5% of the total damage sustained to the property will be the result of the distance from the end of the runway. The above distance variables are compared to the total possible distances or boundaries of the clear zone. These distances or boundaries are as follows: 1) Total distance of Clear Zone is 5,130.6' 2) Total potential distance from the center line of the runway at a right angle ranges from approximately 1,300'-1,550' due to the decreasing width of the clear zone as extends from the runway. 3) Total potential distance of elevation of approach surface above the end of runway elevation is approximately 150'. After the calculation of the relative damages for each component, they will be added together to arrive at the factor which represents the collective damage sustained to the property by the avigation easement. This number represents the percentage loss in value to the property, as well as the value of the easement purchased. The advantages of the utilizing the Factor Formula rather than the Market Data Approach are that every parcel of property is kept relative to all others, and the appraisers will have considered all factors contributing to the loss in value due to the taking of the easement. Where as the Market Data Approach would distort the valuation process by taking several sales and trying to relate them to a particular property, and taking other sales and relating them to another property, and possibly being completely out of line. The Factor Formula is calculated the same way for each parcel and then multiplied by the Market Value of the subject land before the easement taking. 4. Those properties, and portions thereof, which are presently encumbered by the existing Clear Zone Easements will not receive full value as indicated by the Factor Formula. The appraisers have analyzed both the existing and the proposed easements and have separated those portions of the subject property which are affected by these easements. The appraisers have also determined the approximate increase in airspace which will be encumbered by the proposed easement over and above what was presently encumbered. This elevation or distance was then compared to the total horizontal surface elevation. It was determined from this analysis that the existing easement contributes approximately 75% of the appropriate air space and that the proposed easement will encompass an additional 25% of the appropriate air space. Consequently, the appraiser will use only 25% of the indicated factor formula for those portions of the subject presently encumbered by the existing clear zone easement. Furthermore, those portions of the subject property not presently encumbered will receive 100% of the value indicated by the Factor Formula. Those properties, and portions thereof, which are presently encumbered by the existing Mals Lighting Easement will not receive additional compensation for the area of the Mals Lighting Easement. The Mals Lighting Easement Surface is present over certain property which are close in proximity to the Runway and rises at a slope of 50:1. The location of this Easement Surface is below the proposed Approach Surface. -J Factor Formula Cont'd The subject property sustains the following damage under the Factor Formula. 1) 515'/ 5130.6' = 10.0% of value complement 90.0% loss X 2% = 1.80 2) 715'/ 1450' = 49.3% of value complement 50.7% loss X 3% = 1.52 3) 45.17/ 150' = 30.1% of value complement 69.9 loss X 5 % = 3.50 = 6.82% Application of the Factor Formula: Zone A:................... Area of Whole Property Zone B:................... Area of Property Encumbered by Proposed Easement (Expressed both as a Percentage and a Whole Number) Zone C:................... Area of Proposed Easement Not Presently _ Encumbered by Existing Clear Zone Easement Zone D:................... Area of Proposed Easement Presently Encumbered by Existing Clear Zone Easement less the Mals Lighting Easement (See General Remarks) Zone E:................... Area Encumbered by the Mals Lighting Easement (See General Remarks) The end goal of this application is to estimate the value of the easement on Zone C, Zone D, and the Total of both which is the Value of the Proposed Easement based on the Factor Formula 1) Zone A x Zone B = Area of Whole Easement 19.42 Acres x 100% = 19.42 Acres 2) 3) 4) 51 Zone B - Zone D - 19.42 ac. - 5.84 ac. - Zone C X 10.37 ac. X Zone D X 5.84 ac. X Value Zone C + $4,243.40 + Market Value X Per 'Acre $ 6,000 X Market Value X Per Acre $ 6,000 X Value Zone D $599.18 Zone E _ 3.21 ac. _ Full = Factor Formula 6.82% _ 25% of = Factor Formula 1.71% _ Zone C 10.37 ac. Value of Zone C Easement $4,243.40 $599.18 Calculations for #34 will be transferred to the front page in the Determination and Allocation of F.M.V. of Acquisition section. MARKET DATA APPROACH (LAND ONLY) ANALYSIS OF THE MARKET DATA AND CONCLUSION OF VALUE The Market Data Approach is an attempt to measure the reaction of typical buyers and sellers in the market. In this approach a direct comparison is made between the property being appraised and comparable properties which have sold recently. The value of the property being appraised is inferred from the selling prices of comparable properties. To be "comparable," a property need not be identical to the subject. The word "comparable" is used in its ordinary sense, meaning something which is capable of being compared with or worthy of comparison. The appraiser has conducted a search for recent land sales in the vicinity of the subject property which could be considered comparable to the subject. The attached four sales were deemed comparable to the subject property. After analysis of these land sales, these sales reflect a value range of $4,454 to $16,024/Acre. The values indicated by dollar per acre suggest a wide range of values which is due to several of the sales smaller size. It is the appraiser's opinion that the subject's value would fall with in the mid section of the dollar per acre range due to its large size and utility for industrial use in this location. Based upon the above sales and analysis thereof, and after adjustments are made for differences in size, location, terrain, zoning, availability of utilities, access and other economic factors, it is the opinion of this appraiser that the Fair Market Value of the subject property as of the date of this appraisal is as follows: 19.42 Acres @ $ 6,000/Ac. _ $116,520 Say $116,000 Value Before the Taking: Land: $ 116,000 Imps*: $1,620000 Total: $1,736,000 Value After the Taking: Land: $ 111,200 Imps*: $1.620.000 Total: $1,731,200 Value of the Partial Taking: $ 4,800 * See Cost Approach for Valuation of the Subject Improvements .. i'. I. '• • Lrn.11.1 v✓ leveuno \ ¢ a [�?osri I nUCI wUVomwa :+/ p I ln... 111+111 \� • r U 1 • a J 2 a ++•,%•'•I.11 }_ r Comparable Land Sales "<'M ;"w 65/VpE T.YOf�i Q a ) E Sf A N S A S: = n fur 1 t a E z TE AYE TEl E F I VERSE SIDE FOR•I[ J L• q = 'Y"'w•r'• In Q't u FNLA r..EMf 111 - U. Oln1 '' 'S Qn r' 'n ' _ �nIBY yY 11 J nQa LHI CTMFUS ¢ inn 1 •.it Iyt r:nmh in In •.amlwn m ] O 1, S p > < I 1 J 2 E DICKSON •1 I J+ h :r.'IIINI M pp., W ;1111 Y,SIN/ 1 O u Jb O R a E . M1 1_ bD p yY tJ fr el a / > ; L •I i.ii i1 1 - ••• • .0 . = 1 O Q • Z E . SynING 0 I ) J i ] nlnr...f Ylur.I,d1 • -al l..• 'WI 1 • 1 Ei SM1 NG • ] Q 5AEy p F + ) u Y •t4 e'Y ( rllrlhndrtl rl«nnlbll tMInDOM ranJ.In r J o Mfn lO WIT < i ≥ i l 'Y • Ya I•!. 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PSI � IwAN h,E _ llr( :1 O 6 nd sale Z 3 " All .C.•ulhnpr a.w F 1!1111 SI �6 La 1}q ! • r pl r �h•Irl -I 1. q Shllppirp wL' 41111216 - - E.}III,, D 1 inl > U / } - \.. M MD1191 P111ruA a NI ! Up y.''chin.. 'IS ' Tyl. U i NM'l vrrL \n 11 vrA1N 3 . . .. G s 1. • 1 0th P T ISIu if 6 \L`` (1%E'\\ D 6) .• • / Y, ' NIINHnag1111 1 p $ 1 To s Sr111NliS u 265ii 1 fwc ° nlxa qd `Sal �' /wr nL ¢ Iona ; I� a Sate '1 1 n n pit, a,r1Nn Wr O "r 3 PIIUN U // 11 • a Q ( 1 Cal./n 1 •• .Cn SI I O •.1 •.• Y hm. U' 1 \ a� N i Ig10• Q J i 0 1 M1 Olw [1 11111�, 114 :I O I n11114 1n O. .3. w 24111 s1 •� _ •---.—• ,--_-•--.--.---_ - n 1- `_ _ I 1 r ) IV )rr Vl 1 i n 156 \. •• J Combs h o ^N 1 261 $ FAYETTEVILLE 55 park ILIq ( iZ • [Y� 1, INDUSTRIALS I )v i il+` , J PARK f L__ > I,Jf•'YL ` A..,< ` tsl // OMMERCE �♦ ? Lands, S P1 2 ' j ae 4 e e1J (r $ Q r cnr lnn'(i_- • ------------ a) V / fl IJr lIM T ,_,_1 N ' ,[� °4 ij'II1pU.I- JI 4r1. 1n1`Vn a •' fAYfT!'EV/LLf `, i 9N , ° ;:.00014iYCLUS ' l° n SI S. rvt nn -ii,, I fulls i PnIL/r• M � . � I s Y.rj•Np /'. 1l1: 11 1 I i'1:1� J II ! M ENLAND rl 1.11 µl ;JlAL J ,I r anal i ILFCOURSE I I I � 1 'iWrn ak, LAKE WILSON PARK 111 M TY PROPERTY I i I .% LAND SALE #1 Grantor: Grantee: Location: Legal: Date of Sale: Recorded: Consideration: Size: Improvements: Zoning: Indicated Price: LAND SALE k2 Grantor: Grantee: Location: Legal: Date of Sale: Recorded: Consideration: Size: Improvements: Zoning: Indicated Price: LAND SALE #3 Grantor: Grantee: Date: Legal: Land Size: Improvements: Sales Price: Remarks: LAND SALE N4 Grantor: Grantee: Date: Legal: Land Size: Improvements: Sales Price: Remarks: Mexican Fayetteville Development Foundation Mostare Manufacturing Corporation Fayetteville Industrial Park - West Lots 8 & 9, Final plat of Fayetteville Industrial - West April 15, 1988 Book: 1266 Page: 231 $ 457,000 28.52 Acres None (I-1) Light Industrial $ 16,024/Acre M.C.W.W Corporation Hanna, Burt; Hanna, Thad Corner of Highway 16 and Armstrong Street Pt. of the NE/4, SE/4, Section 22, T16N, R30W October 22, 1992 Book: 92 Page:54634 $ 102,000 22 Acres None (I-1) Light Industrial $ 4,636/Acre MCWW Corp. Bert Hanna 10/18/91 Pt. NE, SE, Sec.22, T16N, R30W. 8.8 Acres None $40,000 Located on 15th Street in southern Fayetteville. Zoned Industrial. 3 Acres in the flood plain. All clear level land with approximately 300' of frontage. Cash Sale. Book: 1438 Page: 031 Indicated Price; $133/Front Foot, $.10/sq.ft., $4,545/Acre FDIC/Northwest National Bank Robert Owen McBride 9/16/92 Pt. NI/2, SW, Sec.28, T16N, R30W. 7.54 ac. None $44,000 or $5,836/ac Recorded 92-48027. Zoned Industrial. Located south of Original Plant. 390' Frontage on S.School. All utilities available. Verified by Agent. Indicated price of $112.82/Front Foot, $.13/sq.ft., $5,836/Acre. Sale// Dali $/Acre 1 4/88 28.52ac. $457,000 $16 024/ac. 2 10/92 22ac. $102,000 $ 4,636/ac. 3 10/91 8.8ac. $40,000 $ 4,545/ac. 4 9/92 7.54ac. $44,000 $ 5,836/ac. J THE COST APPROACH The Cost Approach is based upon the principle of substitution which states that: "A purchaser will not pay more for an existing property than the cost to reproduce it in the current market & in a similar location." The Cost Approach is particularly applicable when the subject improvements are new or relatively new and represent the highest & best use of the land; and also when the subject improvements are unique or special purpose improvements for which there exists few if any comparable properties in the market. The Cost Approach for commercial buildings such as the subject property indicates a value estimate as follows: 1) Reproduction or Replacement Costs of all existing improvements based upon current labor & material costs is estimated. 2) Any depreciation due to physical, functional or external inadequacies is deducted from the cost estimate. 3) The estimated value of the land is then added to the depreciated cost to obtain a total value estimate for the subject property. The traditional method of determining the value of land is by comparing the subject site to comparable properties which have sold recently. The following land sales have been researched and analyzed and are used as the basis for determining the subject's land value. ESTIMATED CONSTRUCTION COST OF THE SUBJECT IMPROVEMENTS The following cost estimates were prepared by the appraiser from data in his files regarding local building costs and discussions with local building contractors. These costs were compiled with the assistance of the Marshall & Swift Valuation Service and checked where possible with local contractors and suppliers. Depreciation estimated is based on observed deterioration, age, functional shortcomings if any, and other economic factors. COST ESTIMATE - KEARNEY MANUFACTURING PLANT Class: Quality: Condition: Effective Age: Number of Stories: Average Story Height: Floor Area: "C" & "S" Average Average 15-25 yrs. One 16-22' 137,900 sq.ft. n Original Structure Calculator Square Foot Cost $24.95 Heating & Cooling Refinement + .61 Sprinkler System 1.06 Refined Square Foot Cost $26.62 Story Height Multiplier 1.041 Floor Area -Perimeter Multiplier .887 Current Cost Multiplier 1.000 Local Cost Multiplier .840 Basic Square Foot Cost $20.65 108,100Sq.ft. @ $20.65/Sq.ft. _ $2,232,265 Office/Cafeteria Finish 9,958 sq.ft. @ 20.00/sq.ft. = 199.160 Total Cost New of Original Structure = $2,431,425 Less Depreciation: _ Physical (20/40 = 50%) $1,215,713 Functional ( 0 ) 0 External ( 0 ) 0 Total Depreciation $1,215,713 ($1.215.713) Depreciated Value of Original Structure $1.215.712 frkt1qIjtwsffiJ11 (Oil Calculator Square Foot Cost $18.46 Sprinkler System 1.06 Refined Square Foot Cost $19.52 Story Height Multiplier 1.181 Floor Area -Perimeter Multiplier .935 Current Cost Multiplier .990 Local Cost Multiplier .840 Basic Square Foot Cost $17.92 29,800 Sq.ft. @ $17.92/Sq.ft. _ $ 534,016 Total Cost New of Warehouse Addition = $ 534,016 Less Depreciation: Physical (15/40 = 38%) $ 202,096 Functional (0) 0 External (0) Total Depreciation $ 202,096 ($ 202.096) Depreciated Value of Warehouse Addition 331.920 Miscellaneous Improvements Loading Dock 600 sq.ft. @ $11.45 = $ 6,870 Overhead Doors (6) @ $ 1,600 = $ 9,600 Air Compressors (2) @ $15,000 = $ 30,000 Security Fencing Apr. 1,978' @ $7.82 = $ 15,468 Asphalt Parking Lot Apr.25,100 sq.ft. @ $1.50 = $ 37,650 Concrete Sidewalks Apr. 7,200 sq.ft. © $2.25 = $ 16,200 Total Cost New of Miscellaneous Improvements $ 115,788 Less Depreciation Physical (15/40 = 38%) $43,999 Functional ( 0 ) 0 External (0) 0 Total Depreciation $43,099 ($ 43.999) Depreciated Value of Miscellaneous Improvements $ 71,789 Depreciated Value of the Original Structure $1,215,712 Depreciated Value of the Warehouse Addition $ 331,920 Depreciated Value of the Miscellaneous Improvements 71.789 Total $1,619,421 Total Depreciated Value of Kearney Manufacturing Plant $1,619,421 Say $1,620,000 Jr [VIII) DISTRICT I-1. HEAVY COMMERCIAL AND LIGHT INDUSTRIAL [A] Purposes The heavy commercial district is designed primarily to accommodate certain commercial and light industrial uses which are compatible with one another but are inappropriate in other commercial or industrial districts. The light industrial district is designed to group together a wide range of industrial uses, which do not produce objectionable environmental influences in their operation and appearance. The regulations of this district are intended to provide a degree of compatibility between uses permitted in this district and those in nearby residential districts. [B] Uses Permitted Unit I - City-wide uses by right Unit 3 - Public protection and utility facilities Unit 4 - Cultural and recreational facilities Unit 6 - Agriculture Unit 12- Offices, studios and related services Unit 13- Eating places Unit 17- Trades and services Unit 18- Gas service stations and drive-in restaurants Unit 21- Warehousing and wholesale Unit 22- Manufacturing Unit 25- Professional offices Unit 27- Wholesale bulk petroleum storage facilities with underground storage tanks (Ord. No. 2098,ssl,4-15-75; Ord. No. 2140,ssl,8-19-75; Ord. No. 2298,ssl,12-21-76; Ord. No. 2430,ssl,3-21-78) [C] Uses Permissible on Appeal to the Planning Commission Unit 2 - City-wide uses by conditional use permit Unit 19- Commercial recreation Unit 20- Commercial recreation - Large sites Unit 28- Center for collecting recyclable materials (Ord.No. 2298,ss2,12-21-76; Ord. No. 2351,ss5,6-21-77) [D] Bulk and Area Regulations Setback lines shall meet the following minimum requirements: From street R -O -W (when adjoining A or R districts)............................50feet From street R -O -W (when adjoining C,I,F,or P districts)..... . . . . . . . . . . . . . . .. . . . . . .25 feet Side (when adjoining A or R districts)...... .50 feet Side (when adjoining C,I,F,or P distracts)..... . . ... . . . ... . .... . .. . . . 10 feet Rear (when adjoining A or R districts).......25 feet Rear (when adjoining C,I,F,or P districts)...10 feet (Ord. No. 2516,ssl,4-3-79) [E] Reserved. (Ord. No. 2516,ss2,4-3-79) [F] Height Regulations There shall be no maximum height limits in I-1 District, provided, however, that any building which exceeds the height of 25 feet shall be set back from any boundary line of any Residential District a distance of one foot factor each foot of height in excess of 25 feet. It-fr-., 1I)/ I Ill; Ii, �,��I! Illii�l� I/II Via^ Is �I�!�il� a 'I IR h 3 i { I Ali III I I j / I 'rYrvr I � Ii aaW ' I I k }�{y"Laid 11 � I i. Ii ' ♦r rr Itla[d I 1 I. I ICI `I �- al WI .__G �l.•+rr'w:rr 1, o '9 gI ( II o I. ;, ... 2�2 yWOyO li _ _ _�� 1l I e z _6y, IF— I I I. 1 n'YMYr �. NI te III 1 0l — _�� N• I bl h _ 3 _ -� y T �F,:� I I �I \__)t I' ( I{ ,rye i tI Iz'scsz _ _ 3r�_ I 010*1 - MJU 3JVJa(1s WINOZI&ON I I Al %;NOTTOSALE'`I I (.001 -.1 +Jw O✓JIl Y3. I C'9foe I' \ r—tl a 1 ( 1 I 'Ir I I I d IW III Id � r' -• :., _ _ ry' Via& �I )— ` I Ill Iff ' ,� I I. I rfy,,.vr i, r I �t�` I r - II _ I _ I 1, 4 rfw- __ J 01 f Ni I _ I-1 tI ;j�}, � _ _ _�_ __ __ Lel !' I rz1` I 0 0*1 - 1313 means means 7rJNOZIHDH —� ff :;NOT TO SCALE'-- I / I II I I II W o gI bM yQ W V it i , N s1 a N. bI gl 1 II (.Wi - _1 : 3 -fl s W3UYH 1 I - a 100L ¢ V 0 0 z 4O 1 J m O LL W < St CO • C a p Si oao .� W F I< O 10 U 0 • H I C U a -1 Q N N 1 N O 1 W N p u u '''1 C w ao a�i 3 0 N N 41 N z O NZ 0 ~ I It ni W -H z w J w Q z a 0 A 8 0 > O s m Y 1 a r W r.l d r o •� W 8' � ��• I I I � I r.. Z W N (• ~•� (: O g J gg g m i a g o o` U ui 1 F inoQ 4 W 'f - Vl -i b m m W qFMfl ; o IIIll ice. a -'-7.. N Q i.r • Y U W J. FF {4 yl V 1 ] R W Q �1• 6 j LL i.: is J 9,. I' LL 1 f:R r.• h 11111 {J 2a ° W o a d• W a Z ≤ 2 y� C ° _ I I 1 a I < a 0 _. / . 765-1 5533-000 C COMMERCIAL/INDUSTRIAL REAL ESTATE RECORD EJRRECORITANOOESCRIPTION NO Or CARDS ... NO 1485 8:p q ;.: BEER& 1,' i Kearney National Inc. YEAR 1985 APPRAISAL Tint Pt SW NE SW 33-16-30, 10 Ac. LAND I �(3 NW SE SW & NE SW SW lying East of '� �� !) I,� N.S. Hwy 71 Fay Oullots lmLDINOS I/(/( I / L TOTAL 00 3 q/J Sect _— two — Ong - I' AO[OY[NT WYEY T EIS _ Lot is __-- LAND DLDOI N_ N ____- .. TOPAI --------- YEAR Aaan Washington Fayetteville -.--- LAND -' City ___--__ LLIXp TOT Al ,I,fl ',....:.eQy. uEN AE TA.: Dnle Auq,Nl PURPOSE OATEOE SALE AMOUNT DATE OF SALE AYDVNI YEAR LAND BLOCS OwNUSwPRECORD ,I II ...... O'L'`'PL 0 REMM TIONy ]A nA1r rm TAPE DlwalD(nUN AI, •'• REYMAE VALUE lv COST A ACN Yon VAL U! EY wCg1! APPROACH VALUE ST COV SUL[ SALES LAND FINAL ESTIMATE 0/ YAIU sIDOs oLL mw• nun rw01R DAVE r r PRICE Deer" ACTUAL .. -- - PER CENT F F. PRICE SUS TOTAL CORNER L "An /yL INTL ADnnm[Nr rol4 - �Sj •� , DItlRICT TR[MO .. ' [TP[ET, '''I .'re-• TOTAL ' OTD.ITIE rD'� ,. . •' RDrwD YEAR coTlcRne STATIC . AS�ALT /taw _nuuwr _ALL •L YNIOM SL NO _.. TEAU �DOM -_oy SLOG! NEW _GRAn( -RDDDI' - PO RMe-_ELECTRC aims " nICLININO -CHA _RDUWO .. OLD -. O,Rt -EtAT -POOR wA Tt" IOTAI -NONE -EEwER 13 F W 0' U ' J a if S ,Io V T If s u N+ s O C o O i°a r O S. ^ d j O0 co«s D O M `c N r C 0 N 0 CA In f n 3 c m z O o C I m u N n $ p. O i O a y r • III x • x • 1 (a Q ti G1 N 'I a 0 N r C L N C L .AM • .: • . !y. ♦ Y V O1 M♦ Y V. O• N• Y .I - O ✓• Y V- iiuiwmfluih N; Ld3 eR a w y N D = • C B B n O B i!UEI!! : 8 i C V♦ Y V O ♦ f .. .1 V• Y V. U O v. V" V" � 7 fl to i g N o rD V .. • ., • Y Y . O n + • V • Ygg Y O • \ .. . V ♦ .{ pV gg. FN •7SEq"a$ti 01' G a S �4 a R€ C F � • %� e .. = - - : � �QY Y � Q n I N T• 2�� S � • B '" 4 R^ j� 1 3 � Y ] • ¢iNsa v m fi Y u N l a N+ O 10 P V P P> N N+ OI ^ I] V p r j 0 N- P C D •... n O m OI O O 71 T o 41 O C T d a ,, . 0 J a fll J N 1,1 T p In N ^ I a 3 I O O oo°o va3 s ° o y J J J N N N N FILED FOR F-;ECIRn '72 APR -G A1110: 1+9 1'IASNINOTON COUNTY ARKANSAS ALMA K•ULC,1f YFN CIRCUli CLL':Ic WARRANTY DEED (CORPORATION) KNOW ALL MEN BY THESE PRESENTS: i., Ji 5'-; 10313496/ That the Fayetteville Chamber of Commerce, Inc,, a corporation, duly organized and doing business under the laws of Arkansas, in consideration of Sixteen Thousand Dollars ($16,000.00) paid by Kearney National, Inc.; does grant, sell, and convey unto Kearney National, Inc., and unto its successors and assigns forever, the following described land, situate in the County of Washington, State of Arkansas, £0 -wit: All that part of the Southwest quarter of the Northeast quarter of the Southwest quarter; the Northwest quarter of the Southeast quarter of the Southwest quarter; and the Northeast quarter of the Southwest quarter of the Southwest quarter; all in Section 33, Township 16 North, of Range 30 West of the 5th P.M. lying east of the east right-of-way line of U.S. Highway No. 71, containing 20 acres, more or less. THIS DEED. IS GIVEN TO REPLACE A DEED DATED JANUARY 6, 1969, FROM FAYETTEVILLE CHAMBER OF COMMERCE, INC., TO KEARNEY NATIONAL, INC., WHICH SAID DEED WAS DELIVERED TO KEARNEY NATIONAL, INC., BUT WHICH SAID DEED WAS LOST, MISPLACED, OR DESTROYED PRIOR TO RECORDATION.' TO HAVE AND TO HOLD together with all the rights and appurtenances thereto, unto Kearney National, Inc., its successors and assigns, forever. AND, the Fayetteville Chamber of Commerce, Inc., does hereby bind itself, its successors and assigns to warrant and defend title thereto unto Kearney National, Inc., its successors and assigns against all claims. IN WITNESS WHEREOF, the Fayetteville Chamber of Commerce, Inc., .has caused, this instrument to be signed by its president, and its seal affixed this 1 day of 1972 I Qnn e') O •0 QUITCLAIM DEED KNOW ALL MEN BY THESE PRESENTS: That Fayekearn Corporation, an Arkansas corporation having an address c/o Merrill Lynch, Pierce, Fenner & Smith Incorporated, One Liberty Plaza, 165 Broadway, New York, New York 10006 for and in consideration of the sum of ten thousand ($10,000.00) dollars, does hereby grant, sell and quitclaim unto Mill Properties, Inc., an Arkansas corporation having an office at 230 Park Avenue, New York, New York 10017, its successors and assigns forever, the following lands located in the County of Washington, State of Arkansas, to wit: II 60 The South half of the North half of the Northeast quarter of the South- west quarter of Section Thirty-three (33), Township Sixteen (16) North, Range Thirty (30) West of the 5th P.M., containing Ten (10) Acres, more._r- ;3 ti or less, less that portion thereof located in U.S. Highway 71, which •� bounds the property on the West, and r ` .N a County Road, which bounds theprop -;�z n T1 r, erty on the East. c I ' SUBJECT TO: all taxes and assessments; leases, assignmefts•, i mortgages, deeds of trust, easements, restrictions, reserves tions, rights, rights -of -way and other encumbrances either of record or known to grantee; zoning ordinances or statutes and building, use and occupancy restrictions of public record; and any state of facts as may be revealed by an accurate survey of the premises. To have and to hold the same unto the said Mill Proper- ties, Inc. and unto its successors and assigns forever, with all appurtenances thereunto belonging. IN WITNESS WHEREOF, Fayekearn Corporation has caused this Quitclaim Deed to be executed and its corporate seal to be affixed by its duly authorized officers, as of the 31sT -•day of October, 1977• ,:•s iii S. • .c..* RPO?.,,o SEAL• ��;�;>-:: 1062 y:= c, •1> ' ..!... [�oxporate .. i" Attest Fayekearn Corporation James Price, Vice- President Seal] CLc. yc /. ecretary Mail future tax statements to: Mrs. Wynne Ahlgren Room 659 230 Park Avenue New York, New York 10017 • This instrument was prepared by: Henry W. Trimble, TII Brown, Wood, Mitchell, Ivey & Petty, Esqs. 1 Liberty Plaza New York, New York •111 ( i1 `m /, r IT N♦ \ u J' / � 1 4 1 1 rt rrsol s _[ B' _ - 2 / c a / r / 1 1471 i 44 ` P14 N •W iJ (%I6 3T a //2 II W 0 / i'ET1 n l \ II SKELTON VN 2" SWEET a ' • a i •.:.:. lip— — ...--_—•i .11'31` '.i''.>� •i !2 SJ 1 III •: . WIIIII Ofd ST. Ill or /7 jj ~ ': SUNRISE 21/'•MOUNTAIN RI). 1i a (PVT///f:•••••••• . . . . ..i••.) 1 l .d: ��P� m 1 1i m {/ t•.. 1 0l e. / �1 t \ W N W JJOOW I. •.. //0.'11' \\ I • 1 1'. , 7 . . ••,I:;'i BAILEY C• ORIVE 8" !'a '. SNOnT SIT C;.........:... I FAVETIE VILLt DIXON = = II IDRAKE Li L, z FIELD [ Ji GREENLAND NI •• •1 I cH' \ E I. ' r� I : ivrow I ENLAND I, W � 1 SOO w 1 ■ 4-r. Y. • l , 1., ; J 16 e 1 IIT 3 4L .I II a II Ii �?I :.I FAYETTEVILLE '.. DRAKE "1 FIELD .11 CT �.a ;:I