HomeMy WebLinkAboutOrdinance 3747 LD
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ORDINANCE NO. 3747 m z 3 rn
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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
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• � 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
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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.