HomeMy WebLinkAboutOrdinance 3748 T FILED FOR RECORD
194 AN 3 PM 1 01
WASHINGTON CO AR
A . KOLLMEYER
ORDINANCE NO. 3748
AN ORDINANCE AUTHORIZING EMINENT DOMAIN
PROCEEDINGS FOR THE CITY TO OBTAIN A TRACT OF
LAND, FROM STANDARD REGISTER, 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 Tract
#50, owned by Standard Register, 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.
Section 2. The City Council hereby determines that the immediate acquisition of the
above-described property for the Airport Federal Acquisition Project is necessary for runway
approach and transitional area protection/obstruction removal and is essential for the public
health, safety and welfare. Therefore, an emergency is hereby declared to exist and this
ordinance being necessary for the public health, safety and welfare shall be in full force and
effect from and after its passage and approval .
PASSED AND APPROVED this 21st day of December 1993 .
APPROVED:
By: /io/G
Fred Hanna, Mayor
ATTEST:
By: J
erry 1L. Thomas, City Clerk
i
94000165
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CERTIFICATE OF RECORD
State of Arkansas SS
City of Fayetteville
I, Sherry Thomas, City Clerk and Ex-
Officio recorder for the City of
Fayetteville, do herehY certify that the
annexed or f&reusing is of record in mY
office and the sa.,ie appears in
Ordinance & Resolution bryok Xat
page L•aac and
sealt- sTii , I _day ofy$ � rc nt� �✓
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e �
Exhibit "A"
A part of the Southwest Quarter (SW 'k) of the Northwest Quarter (NW '/a ) and
a part of the Northwest Quarter (NW 'k) of the Southwest Quarter (SW 'k) of
Section 33, Township 16 North, Range 30 West, being more particularly
described as follows: commencing at the Northwest corner of the Southwest
Quarter (SW '/a ) of the Northwest Quarter (NW 'b ) of said section 33 ; thence South
88 " 17 ' 12" East - 28 .21 feet to the East right-of-way line of the Arkansas and
Missouri Railroad; thence, along the Railroad right-of-way, South 09016' 15 " East
- 726.04 feet to the point of beginning; thence, leaving the Railroad right-of-way,
South 890 11 '33 East - 705 .01 feet; thence South 00048'27 " West - 250.00 feet;
thence South 89 " 11 '33 " East - 403 .63 feet to the West right-of-way line of U .S .
Highway No. 71 ; thence Southeasterly, along the Highway right-of-way in a
curve to the right, an arc distance of 251 .99 feet, said curve also having a radius
of 5689.58 feet and a chord of South 02013'39" West - 251 .97 feet; thence South
03 "29'47 " West - 966.43 feet; thence North 86 '30' l 3 " West - 10.00 feet; thence
South 03029'47" West - 469. 17 feet to the South line of the Northwest Quarter
(NW 'A) of the Southwest Quarter (SW 'A) of said Section 33; thence leaving the
Highway right-of-way and continuing along the sixteenth section line, North
88 11 '39" West - 683 .27 feet to the East right-of-way line of the Arkansas and
Missouri Railroad; thence, along the Railroad right-of-way, North 09 " 16' 15 "
West - 1953 .69 feet to the point of beginning, containing 37 .77 acres, more or
less, Washington County, Arkansas.
94000166
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s':c-. . —J in my o;iicc
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1: 1 ';. :. : : -=C:, I have hereunto
set n:p hcr.0 c.4U c(Suad the seal of said
Cccrt o.: t:•o c'oto indicated horoom
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STATE OF ARKANSAS
u.
ORDINANCE NO. 3748 I J Exhibk 'A' County of Washington
AN ORDINANCE AUTHOR- A part of the Southwest
IZING EMINENT DOMAIN , Quarter (SW1 /4) of the
PROCEEDINGS FOR THE Northwest Quarter (NW1/4) I, t- � r k hereby cer-
CITY TO OBTAIN Aland apart of
the Northwest' tify that I am the publisher of HE NORTHWEST ARKANSAS TIMES, a daily
TRACT OF LAND, FROM pua rtar (NW1 /4) of the
STANDARD REGISTER, 1 Southwest Quarter (SW1/4) newspaper having a second class mailing privilege, and being not less than four pages of
FOR U THE AIRPORT LAND I of Section Township e- five columns each, published at a fixed place of business and at a fixed (daily) intervals
ACQUISITION PROJECT IN North, Rangea 30 West, 16
CONJUNCTION WITH THE ;ng more particularly de- continuously in the City of Fayetteville, County of Washington, Arkansas for more than
OBSTRUCTION LIGHTING scribed
as t the
Northwest'tcoin-
ncin
AND REMOVAL PROJECT, scg a period of twelve months, circulated and distributed from an established place of business
No
c6mer of the Southwest to subscribers and readers generally of all classes in the City and County for a definite price
BE R ORDAINED BY THE Quarter (SWI /4) of the
CITY COUNCIL OF THE Northwest Quarter (NWl/4) for each copy, or a fixed price per annum, which price was fixed at what is considered the
CITY OF FAYETTEVILLE, of said Section 33; thence value of the publication, based upon the news value and service value it contains, that at
ARKANSAS: South 88'17 ' 12 " East - least fifty percent of the subscribers thereto have aid cash for their subscriptions to the
28.21 feet to the East right- y Pe paid P
.Section 1. That the City of-way line of the Arkansas newspaper or its agents or through recognized news dealers over a period of at least six
authorized and di- and Missouri Railroad:
rect$ the City Attorney of thence, along the Railroad months; and that the said newspaper publishes an average of more than forty percent news
reels t
the City of Fayetteville. Ark- right - of - way , South macer.
ansation. to initiate legal ac-he feet t 15 ' East - 728.04
tion, in order to obtain the teat to the point of begin-
property known as Tract nine: thence, leaving the I further certify that the legal notice hereto attached in the matter of
a50. owned by StandardRailroad right-of-way, South
'Register, needed for theion feet ;89611P
thence
- out nn(f , Mn�/ INA
Airport Land Acquisition feat : thence South l l' �7Jf1 /,u
;Project s conjunction with feet; -27"then West ' 250.00
the Obstruction Lighting . feat: thence 89'11 '33" East I
and Removal Project. on - 403.63 feet to the West was published in the regular daily issue of said newspaper for
the property described right-of-way of line of U.S.
below: Highway No. 71 ; thence consecutive insertions as follows:
Sea Exhibit "A", attached Southeasterly, along the
hereto and made a part Highway right-of-way in a n I I,
hereof. curve to the right, an arc The first insertion on the 1IAACPA -/i-• day of 19�
distance of 251 .99 feet.
Section 2. The City Coun- said curve also having a ra-
cu hereby determines that dies of 5689.58 feet and a the second insertion on the day of 19
the immediate acquisition chord of South 02.13'39"
of the above-described West - 251 .97 feet: thence
property for the Airport South 03.29'47 •• West - the third insertion on the day of 19
Federal Acquisition Project 966.43 feet; thence North
is necessary for runway ap. 86.30'13" West. - 10.00
proach and transitional area f a a t : thence south and the fourth insertion on the
protection/obstruction re- 03'29.47" West 469.17 feet day Of 19
moval and is essential for to the South line of the
the public health, an
Northwest Quarter (NW1/4)
and welfare. Therefore. en of the Southwest Quarter pp pL �v
emergency is hereby dee (SWI/4) of said Section 33: R E C E I V E U
fared to exist and this ordi- thence leaving the Highway
nonce being necessary for rightof-way and continuing
the public health. safety along the sixteenth section
Publisher / General Manager
and welfare shell be in full line. North et to
Wast JAN 07 I3 !14 g
force and effect passage
and - ht-of- teat to the East J
after its pe ssape antl ansae -and line of the Ark-
PASSED AND APPROVED road; thence. along the Missouri Rall-. FINANCE DEPT.
this 21st day of December.
1993.
APPROVED: road right-of-way, North
APPROVED: 09'16'15" West - 1953.69
8y: Fred Hanna, Mayor
ATTEST: feet to the point of begin-
By: Sherry L. Thomas acre containing in0 less .
7 . 77
City Clerk acres , more or less .
Washington County .
-- Arkansas.
Swom to and subscribed before me on this n5r I day of
`
\., 1 t uCri' 19 "( l
(Notary Public
My Commission Expires:
ng - oi -o �
Fees for Printing $
Cost of Proof $
Total $ 1 foo-4S
G
MICROFILMED
8994 Federal -Register / Vol. 54, No. 40 / Thursday, *March 2, 1989 / Rtiles and Regulations
construction purposes before making commonly accepted professional shall not be based on the amount of the
payment available,to an owner. appraisal practices. When sufficient . ,, valuation.-No appraiser shalt ect'aaa
(k) Uneconomic remnant. If the market sales data are available to : : negotiator for real property which'that
acquisition of onlya.portion of a rellabl su ort the teirmarket value for
property wouldleeve .the owner with an the specific port the f problem v person hes appraised, except that the
uneconomic remnant, the Agency may permit the same person to
. gencyshali encountered, the Agency, at its both appraise and negotiate an
offer :to acquire-the uneconomic remnant discretion, may require only the market acquisition where the valise of the
along with the portion of,the: property approach. If more than.one-approach is -acquisition is $2,500; ar'fess.
needed for the project„(See §.242(w).) utilized there shall be an analysis and
(1) Inverse_condemnation. If the reconciliation of approaches to value 124.104 : Rove#o}.epp-rataab: -` .
Agency Intends to acquire any interest that are sufficient to support the ..The Agency shall have an appraisal
in real property by exercise of the power appraiser's opinion of value. review process and. at a minimum; ..
of eminent domain, it shall institute (4) A description of comparable sales, (a) A qualified reviewing appraiser
formal condemnation proceedings and including a description of all relevant shall examine all appraisals to assure
not intentionally make it necessary for physical, legal, and economic fedora that they meet applicable appraisal
the owner to institute legal proceedings such es parties to the transaction, requirements and shall, prior to
to prove the fact of the taking of the real source and method of financing, and acceptance, seek necessary corrections
property. verification by a party involved in the or revisions.
(m) Fair rental. If the Agency permits transaction.
a former owner or tenant to occupy the (5) A'atatementof the value of the real (b) If the reviewing appraiser is
real property'aRer acquisition for a property to be acquired and, foreartial able to approve or recommend
short term or a period subject to acquisition,' a statement of the value of ba is for of an
tn isiial i at adequate
e offer termination by the, Agency on short the damages and benefits, if any, to the
nodce. lhe rent shall not exceed the fair remaining real property, where of just compensation, and it is
market rent for such occupancy. appropriate. determined that itis not practical to
e obi an additional, ay develop
appraisal, the
§ 24.103 Criteria for,approeals. (a) The effective date of valuation reviewing ePPraiaer m
date of appraisal, signature, and
(a) Standards of oppraisol. The format certification of the appraiser. appraisal documentation in accordance
and level of documentation for an (b) lnflu¢nce of the project on just with § 25.103 to support an approved or
appraisal depend on the complexity of compensation. To the extentermined recommended value.
the appraisal problem. The Agency shall by applicable law, the appraiser shall (c) The review appraiser's
develop minimum standards for disregard an decrease or increase in certification of the recommended or
and commonly ac
appraisals myconsistentccepp with established the fagir'market value of the real property approved value of the property shall be
ted appraisal caused by the project for which the set forth in a signed statement which
practice for those acquisitions which, by property is to be acquired, or by the identifies the appraisal reports reviewed
virtue of their low value or simplicity, do likelihood that the property would be and explains the basis for such
not require the in-depth analysis and acquired for the project, other than that recommendation or approval. Any
presentation necessary in a detailed due to physical deterioration within the damages or benefits to any remaining
ppraisal. A detailed appraisal shall be reasonable control of the owner. property shell also be identified in the
prepared for all other acquisitions. A (c) Owner retention of improvements. statement.
detailed appraisal shall reflect If the owner of a real property
nationally recognized appraisal improvement is permitted to retain itfor f 24.105 Acquisition of tenant-awned
standards, including to the extent removal from the project site, the Improvements.
appropriate, the Uniform Appraisal amount to be offered for the interest in (a) Acquisition of improvements.
Standards for Federal Land Acquisition. the real property.to be acquired shall be When acquiring any interest in real
An appraisal must contain sufficient not less than the difference between the property, the Agency shall offer to
documentation. Including valuation data amount determined to be just acquire at least an equal interest in all
and the appraiser's analysis of that data, compensation for the owner's entire buildings, structures, or other
to support his or her opinion of value. At interest in the real property and the Improvements located upon the real
a minimum, a detailed appraisal shall salvage value,(defined at § 24.2(s)) of property to be acquired which it
contain the following items: the retained improvement I requires to be removed or which it
(1) The purpose and/or the function of (d) Qualifications of appraisers. The determines will be adversely affected by
the appraisal, a definitionmf the estate Agency shall establish criteria for the use to which such real property will
being appraised, and a statement of the determining the minimum qualifications be put This shall include any
assumptions and limiting conditions of appraisers. Appraiser qualifications improvement of a tenant-owner who has
affecting the appraisal. shall be consistent with the level of the right or obligation to remove the
(2) An adequate description of the difficulty of the appraisal assignment improvement at the expiration of the
physical characteristics of the property The Agency shall review the experience, lease term
being appraised (and, in the case of a education, training, and other (b) Improvements considered to be
partial acquisition, an adequate qualifications of appraisers, including real property. Any building, structure, or
description of the remaining property), a review appraisers, and utilize only those other improvement, which would be
statement of the known and observed determined to be qualified. considered to be real property if owned
encumbrances, If any, title information, (e) Conflict of interest No appraiser by the owner of the real property on
Iota tion, zoning, present use, an or review appraiser shall have any which it is located, shall be considered
analysis of highest and best use, and at interest, direct or indirect in the real to be reel property for purposes of this
least a 5-year sales history of the property being appraised for the Agency Subpart.
property. that would in an we conflict with the
Y Y (c) Appraisal and establishment of
(3) All relevant and reliable preparation or review of the appraisal. fust compensation (or tenant-owned
approaches to value consistent with Compensation for making an appraisal improvements. just compensation for a
APPRAISAL REPORT
FOR
CITY OF FAYETTEVILLE
PROJECT Fayetteville Airport Land & Easement Acquisition
COUNTY Washington
JOB # 3-05-0020-11 . Phase 4 . Grant 15 . TRACT #50
LOCATION South School Avenue. North of the Drake Field Airport
Washington County. Arkansas
FEE OWNER Standard Register Company
ADDRESS 3655 S . School. Fayetteville AR 72701
ESTATE APPRAISED Fee Simple
approximately approximately
AREA OF WHOLE 38. 82 Acs. PERCENTAGE OF TAKING 93 % (See Remarks)
AREA OF AVIGATION ACQUISITION 36.02 Acs.
(Legal Description attached)
ESTIMATED FAIR MARKET VALUE OF THE PROPERTY:
Before
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 194.000
Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.050.000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.244.000
After
Land [$ 194,000 Less Air Rights] . . . . . . . . . . . . . . . . . . $ 188 .500
Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2 .050.000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2 .238.500
FAIR MARKET VALUE OF ACQUISITION . . . . $ 5 .500
As of 16th day of March , 19-23
DETERMINATION AND ALLOCATION OF F.M.V. OF ACQUISITION
Air Rights: (See Factor Formula)
11. 94 ac. X $ 5, 000 X 6. 12 % . . . . . . . . . . . . . . . $ 3 .653 .64
24. 08 ac. X $ 5, 000 X 1. 53 % . . . . . . . . . . . 4 . . . $ 1 . 842. 12
Land: . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0
Improvements: . . . 4 . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0
Total Air Rights, Land, Improvements . . . . . . . . . . . . $ 5 .495 .76
Damages or Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0
Total Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5 .495 .76
Say $ 5,500
ATTACHMENTS :
X Certificate of Appraiser lG
X Plat
X Photographs i �,4C�
X Neighborhood Data Gt/1 Gz
X Zoning, H&B Use & Narrative Appraiser
X Tax Assessment Card
X General Information
X Market Data Approach Date
GENERAL REMARKS:
Discussion of the Proposed Easement: Reference Exhibit A
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 825' from the Clear Zone Area at the subject's
southeast property comer and approximately 2,700' at the subject's north property line. The site is irregular shaped
and does not lie square to the airport. 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 a small area of the
western 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 eastern 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 later).
The subject site is a large and irregular shaped tract lying entirely within the Runway Approach and to a
small extent in the 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.
Nine 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 comers of the east
property line along S.School, 3-4) the two elevation differences on the northern most property line, 5-6) the point
on the south property line where the East Transitional Slope begins and the point on the west property line where
the East Transitional Slope begins, 7) the elevation difference at the southwest comer of the site within the East
Transitional Approach area, 8-9) two elevation differences of the Approach Surface over the southeast and Water
Tank at the northwest comers of the subject building.
Six 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
southeast and northeast comers along S.School from the Centerline, 34) the distances of the western comers from
the Centerline and, 5-6) the distance of the northeast and southwest comers of the subject building. The average
will be low which results from the Centerline of the Runway running through the subject site and several comers
being equal to zero. That is to say, a site cannot be located on both sides of the Centerline Extended without some
comers being equal to zero. In the case of the subject, which it is located west of S.School, the measurements will
be analyzed as though the property is west of the Centerline Extended. Points east of the Centerline are considered
zero.
Two distances will be averaged 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 at the end of the Runway: 1) the distance
of the southeast property comer and, 2) the distance of the northern most property line.
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 Mals 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 2_80 acres or 7.2 % of the whole.
There is also an existing Clear Zone Easement which extends over a large 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 northeast property comer and the point on the east line at the end of the Mals Lighting Easement, the
elevation of the Existing Easement is 1 ,373.75' and 1 ,330' respectively, the elevation at the proposed Easement at
the same points are 1 ,322' and 1 ,297' respectively. A difference of 51 .75' and 33' 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 24_08 acres or 62 % of the whole.
The average distance of the ground below the approach line is approximately 48. 05' . The subject's average distance
from the centerline of the runway extended is 717'. The average distance of the subject from the end of the Clear
Zone is approximately 1,837.5 '.
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:
1 . 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 APPRAISAL
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 APPRAISED
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 LMTING 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 .
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.
PHOTOGRAPHS
1ect ite - Front Viewof the Subject / Air Above
r 4i
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North Side of Su ect Improvements an P ane in sement Area
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Front1 Northeast Comer 1the Su / ect
PHOTOGRAPHS
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Southern Portion of the Improvements - Looking North
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Southern Portion of Improvements and Land area
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Western portion (Rear) of the Subject Site and Improvements - Looking South