Loading...
HomeMy WebLinkAbout94-00 RESOLUTIONRESOLUTION NO. 9/, -nn MICROFILMED A RESOLUTION APPROVING THE PURCHASE OF AN ABANDONED RAILROAD RIGHT-OF-WAY IN THE AMOUNT $50,000 WITH THE INTENT TO BUILD A MULTI -USE TRAIL BETWEEN PRAIRIE STREET AND THE WALTON ART CENTER PARKING LOT. isE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS • Section 1. That the City Council hereby approves the purchase of an abandoned railway right-of-way in the amount of$50,000 with the intent to build a multi -use trail between Prairie Street and the Walton Art Center parking lot. A copy of the apraisal report is attached hereto marked Exhibit "A" and made a part hereof. V*,,) AND APPROVED this 5th day of July , 2000. * APPROVED thy• By: ' Hanna, Mayor 4 .,bac %4 i Heather Woodruff, City Cler • NAME OF FILE: • 4 1. t., gel 00 CROSS REFERENCE: Date Contents of File Initials 74-106 / �70� ////A 91 d 6 6-l/Da r , % m ri,,,, St t ._, .•44 2' tao,J oa JV D) %P,# ri 44 f /,2 -ori ya2*A o�U4 ,,46D/c%iio , ,,-, n%/D,,a% y� —oo .. ", „ \-i %/.�-DD 7,„ �„ G ��9-iv,, S i • PROJECT COUNTY PARCEL # LOCATION FEE OWNER ADDRESS ESTATE APPRAISED • APPRAISAL REPORT FOR CITY OF FAYETTEVILLE 1 EXHIBIT A Complete Summary Appraisal Report Burlington Northcm and Santa Fe Railway Company Railroad Rights -of -Way Washington 765-02030-000, 02030A, 02033, 02033A, 05525, 05525A W of West Si, and S of Mountain St. to Prairie St, Fayetteville Burlington Northcm and Santa Fc Railway Company Various Rights -of -Way, Sec attached legal descriptions Fee Simple AREA OF SUBJECT PROPERTY (Description attached) Permanent Fcc Simple Interest 143,482 Sq. Ft. 143,482 Sq. Ft. ESTIMATED FAIR MARKET VALUE OF THE PROPERTY: Land Improvements Total $ 50,000 $ 0 FAIR MARKET VALUE OF SUBJECT PROPERTY As of the 30th ofMay, 2000 ALLOCATION OF F.M.V. OF SUBJECT PROPERTY Fee Simple Interest 143,482 Sq. Ft. @ $0.35/Sq.Ft. = $ 50,218 Say $ 50,000 ATTACHMENTS: X Certificate of Appraiser X Photographs X Site, H&B Use Narrative X Legal Descriptions X Market Data Approach Survey $50,000 PGu,GEt?•• g Ste $ ;' STATE '`Po ERTIFIED o t GENERAL:' No. CG0202 f?KE.F`�500°� er, Mark E. Risk GAA, #CG0202 °jtttttmnntntnttmtt° Appm ► 1 • pp 'ser, Leslie Manning rn x 2 PROJECT COUNTY PARCEL # LOCATION FEE OWNER ADDRESS ESTATE APPRAISED APPRAISAL REPORT FOR CITY OF FAYETTEVILLE Complete Summary Appraisal Report Burlington Northem and Santa Fe Railway Company Railroad Rights -of -Way Washington 765-02030-000, 02030A, 02033, 02033A, 05525, 05525A W of West St., and S of Mountain St. to Prairie St., Fayetteville Burlington Northern and Santa Fe Railway Company Various Rights -of -Way, See attached legal descriptions Fee Simple AREA OF SUBJECT PROPERTY 143,482 Sq. Ft. (Description attached) Permanent Fee Simple Interest 143,482 Sq. Ft. ESTIMATED FAIR MARKET VALUE OF THE PROPERTY: Land Improvements Total $ 50,000 � 0 FAIR MARKET VALUE OF SUBJECT PROPERTY As of the 30th ofMay, 2000 ALLOCATION OF F.M.V. OF SUBJECT PROPERTY Fee Simple Interest 143,482 Sq. Ft. @ $0.35/Sq.Ft. = $ 50,218 ATTACHMENTS: X Certificate of Appraiser X Photographs X Site, H&B Use Narrative X Legal Descriptions X Market Data Approach Survey Say $ 50,000 $50,000 I hereby certify: CERTIFICATE OF APPRAISER 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. 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. That the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. The City of Fayetteville has initiated this project. That such appraisal has been made in conformity with the appropriate City laws, regulations, and policies and procedures applicable to appraisal of fee simple land acquisitions, right of ways and easements for such purposes; 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, and no personal interest or bias with respect to the parties involved, 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 my analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice and no one provided significant professional assistance to the persons signing this report. That in my opinion the fair -market value of the subject property as of the 30th day of May, 2000, is $50,000 based upon my independent appraisal and the exercise of my professional judgme Date JOB PARCEL `' ?':... ' . CATie9 STr;TE CERTIFIED GENERAL o '•• No. CG020.: o If- /4AwA -'.ture 6 ign ture Burlington Northern and Santa Fe Railway Company Rights -of --Way 765-02030-000, 02030A, 02033, 02033A, 05525, 05525A PICTURES • Subject Site looking North from Prairie St. View of the Subject Site looking North toward Rock St. from around South St. area Prairie Street Scene facing West • CONTACTED FOR APPRAISAL INSPECTION AND COMMENTS DATE: May 30, 2000 NAME: City of Fayetteville COMMENTS: The appraisers visually inspected the subject site on the above date. The appraisers obtained the legal descriptions of the subject sites from Crafton and Tull, Engineers. The appraisers were unaccompanied on their inspection of the subject property. GENERAL REMARKS: The subject property consists of (6) contiguous railroad right of way parcels currently owned by The Burlington Northern and Santa Fe Railway Company and located in downtown Fayetteville Generally, the parcels are 100 feet wide and have poor accessibility. The topography includes level to steep sloping characteristics. 3 YR. SALE HISTORY: To the appraiser's knowledge, there have been no transactions affecting the subject properties within the past three years. CHANGES IN PROPERTY SINCE DATE OF PURCHASE: The subject properties are railroad rights of way that are either discontinued railroad lines or rights of way that were never constructed upon METHOD OF APPRAISAL: The appraiser has utilized the Market Data or Sales Comparison Approach to value the subject property. • GENERAL INFORMATION MARKET VALUE DEFINED The Appraisal Foundation 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 unchce stimulus. Implicit in this definition is the consummation of a sale as of a specified dale and the passing of title from seller to buyer under conditions whereby: I. Buyer and seller are typically motivated 2. Both parties are well Wormed 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 properly 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. The intended use of the appraisal is for possible purchase purposes by the City of Fayetteville for the Rails to Trails Project. 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 LIMITING 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 hens and encumbrances have been disregarded, and the property is appraised as though free and clear. 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. • • 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 and swine, industries, 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 descnbed as follows: The Market Data Approach - A comparison is made between the subject property and similar properties, which have sold recently in the market place The Cost Approach - A replacement cost new of the improvements is determined and the applicable amount of depreciation is deducted in order to obtain a value estimate. The Income Approach - Bases a value estimate upon the amount of net income the property can reasonably produce over its expected lifetime. 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. With regards to the subject appraisal, only the Market Data or Sales Comparison Approach is deemed applicable. • SCOPE OF THE APPRAISAL The scope of the appraisal encompasses the necessary research and analysis to prepare a report in accordance with its intended use, the Standards of Professional Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. This appraisal is based upon the information gathered by the appraiser from the public records, other identified sources, and an inspection of the subject property and neighborhood. Data believed to be unreliable was not included in this report nor used as a basis for the value conclusion. The subject property was physically inspected by the appraisers on May 30, 2000. The subject photographs were taken on that date. Area, city, and neighborhood data were based on information in the Real Estate Consultants library and files. The neighborhood section was based upon a physical inspection of the area as well as data from the City of Fayetteville. The subject property data was based upon the physical inspection of the property and information obtained from municipal authorities. In evaluating the highest and best use for the subject property, an analysis was made of data compiled in the steps noted above. In addition, a study of the market in the subject area has been made to help determine the feasibility of future uses. In developing the appraisal approaches to value, market data used were collected from the Real Estate Consultants' office files; other appraisers, Realtors, courthouse records, or persons knowledgeable of the subject property marketplace; and the municipal offices in the Northwest Arkansas area. After assembling and analyzing the data defined in this scope of the appraisal, a final estimate of market value was made. • 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 boundanes 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 in downtown Fayetteville Neighborhood boundaries could be University Ave. to the west, Dickson St. to the north, S. School Ave. to the east, and 6th St. to the south. Mainly older, residential dwellings on city lots characterize the subject neighborhood. This area of Fayetteville is a mature neighborhood located on the south side of the Fayetteville square Property values appear to be stable at this time. The neighborhood is in the Fayetteville School System. Jefferson Elementary School. The neighborhood is provided police and fire protection from the City of Fayetteville. Municipal water and sewer is available to most of the neighborhood, and is supplied by the City of Fayetteville. Electrical service is available to all of the neighborhood, and is supplied by SWEPCO. Natural gas is also available to most the neighborhood, and is supplied by Arkansas Western Gas Company. Prairie St, Mountain St., Rock St., South St., Gregg Ave. and West St. provide access to and from the immediate area of the subject. DESCRIPTION OF THE SUBJECT PROPERTY Site The subject property under appraisement consists of (6) irregular-shaped parcels of various sizes. See attached legal descriptions for individual dimensions. The total site contains approximately 143,482 Sq. Ft. or 3.29 Acres. The extreme southern boundary of the site has direct access from Prairie St.. The northern boundary includes an unimproved portion of Mountain St. Drainage appeared to be adequate upon inspection. The site is generally 100 feet wide and has steep sloping characteristics in many areas with poor access and visibility. The site is presently encumbered with regular utility easements and all utilities are available to the site. The subject site lies within the City Limits of Fayetteville, and has a combination of Industrial (1-1) and Residential Office (R-0) zoning. Improvements None LEGAL DESCRIPTION See Attached Legal Descriptions HIGHEST AND BEST USE 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 as follows: The subject property is currently unimproved. The site is located in an area comprised primarily of residential dwellings and offices. Research indicates that most of the railroad rights of way ownership transfers in recent years have been purchases made by adjoining property owners. Due to its poor topography and access, it is the opinion of the appraiser that the subject's highest and best use would be as plottage with adjoining property. • MARKET DATA APPROACH 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 companson 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 an extensive search for recent sales of railroad right of way land in the vicinity of the subject property, which would be considered comparable to the subject land. These sales are included in this report. After analysis of the R -O -W land sales, the comparable sales reflect a value range of $0.06/Sq.Ft. to $2.21/Sq.Ft. This is a significant range due to differences in location, size, and land utility All sales were purchased by adjoining landowners for assembledge. These sales are considered very good indicators of the subject's value. It is the appraiser's opinion that the subject's land value would fall within the lower section of this value spectrum due do its size, zoning, land characteristics, location, and other characteristics. Based upon the above sales and analysis thereof, and after adjustments are made for differences in size, location, terrain, availability of utilities, access, zoning 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: Fee Simple Land Value Approx. 143,482 Sq. Ft. @ $0.35/SF = $50,218 Say $50,000 Comparable Market Data) RIA NITR[D IT d\Tn.L. FAYCT ]IXWCS AT LOWER • COMPARABLE LAND SALES LAND SALE #1 Grantor: Grantee: Location: Legal Description: Date of Sale: Reported Consideration: Site Characteristics: Size: Improvements: Zoning: Remarks: Indicated Price: • The Burlington Northern and Santa Fe Railway Co. Filbeck, Kim West 6th St., Fayetteville All that portion of The Burlington Northern and Santa Fe Railway Company's property at Fayetteville, Arkansas 72701, located on the Ft. Smith, Arkansas to Monett, Missouri Branch Line, now discontinued, located upon, over and across part of Block 21 of Ferguson's Addition to the City of Fayetteville, Arkansas. 10/29/98 $8,000 Narrow, level to steep sloping parcel with 25.31' road frontage on 6th Street (Hwy. 62). Appx. 3,614 Sq. Ft. or 0.08 Acres None C-2 - Commercial Thoroughfare Narrow parcel purchased by adjoining property owner. Site has little road frontage and minimal access. $2.21/Sq. Ft. r • LAND SALE #2 Grantor: Burlington Northern Railroad Company Grantee: G. Denele Campbell Location: East of Gregg Ave., running north to south from W. Meadow St. to W. Center St. Legal Description: A 100.0 foot wide strip of land situated in the West half of Block 21 of the Original Plat of the City of Fayetteville, Washington County, Arkansas together with portions of Gregg Avenue, West Center Street and West Meadow Street, being 50.0 feet wide on each side of the hereinafter described old Pacific and Great Eastern Railway Main Track centerline, as originally located and constructed, bounded on the North by the centerline of said West Meadow Street and bounded on the South by the centerline of West Center Street. Date of Sale: 01/26/96 Reported Consideration: $18,000 Site Characteristics: Narrow, level to steep sloping parcel Size: Approx. 37,238 Sq. Ft., or 0.85 Acres Improvements: None Zoning: R-0 — Residential Office Remarks: Railroad right-of-way parcel purchased by adjoining owner. Indicated Price: $0.48/Sq.Ft. LAND SALE #3 • Grantor: Burlington Northern and Santa Fe Railway Company Grantee: ANT, LLC Legal: Pt. SE 1/4, SE 1/4, Section 20, T16N, R3OW Date of Sale: 02/24/98 Sales Price: $26,000 Location: East of Vale Ave. and West of S. Garland Ave. and North of Cato Springs Rd. Size: Approx. 126,760 Sq. Ft., or 2.91 Acres Zoning: I-1 —Heavy Commercial, Light Industrial Improvements: None Remarks: Level to sloping parcel located in industrial area of Fayetteville. Indicated Value: $0.21/Sq.Ft. LAND SALE #4 • Grantor: Burlington Northern and Santa Fe Railway Company Grantee: Terry L. & Carolyn E Peterson Legal: All that portion of The Burlington Northern and Santa Fe Railway Company's 100.0 foot wide right of way, now discontinued, being 50.0 feet wide on each side of the former S. Louis -San Francisco Railway Company's Muskogee Subdivision Main Track centerline, as onginally located and constructed upon, over and across Block 22 of the Original Town of Fayetteville, Arkansas, and the South half of West Center Street, according to the recorded plat of Fayetteville, Washington County, Arkansas, bounded between the centerline of West Center Street and the North line of West Mountain Street, according to said plat. Date of Sale: 04/23/97 Sales Price: $16,500 Location: 545 W. Center St., Fayetteville Size: Approx. 10,700 Sq. Ft., or 0.25 Acres Zoning: C-3 - Commercial Improvements: None Remarks: Railroad right-of-way purchased by the adjacent property owner. Indicated Price: $1.54/Sq.Ft. • • LAND SALE #5 Grantor: Burlington Northern and Santa Fe Railway Company Grantee: James H. Stewart and Charles W. Stewart Legal: The Northerly 50 feet of the Burlington Northern and Santa Fe Railway Company's 100 foot wide Fayetteville to Pettigrew, Arkansas Branch Line right of way, now discontinued, located upon, over and across the North Half of the Southwest Quarter of the Southeast Quarter of Section 21, Township 16 North, Range 30 West of the 5th Principal Meridian, Washington County, Arkansas, bounded on the East by the East line of said North Half of the Southwest Quarter of the Southeast Quarter and bounded on the Westerly side by the centerline of State Highway No. 71; also The Southerly 50 feet of said Railway Company's 100 foot wide Branch Line right of way in said North Half of the Southwest Quarter of the Southeast Quarter of Section 21, bounded on the East by the East line of said North Half of the Southwest Quarter of the Southeast Quarter and bounded on the Westerly side by a line extending North 08 degrees, 31 minutes East from a point on the Southerly line of said 100 foot wide Branch Line right of way distant 318 feet Westerly from the East line of said North Half of the Southwest Quarter of the Southeast Quarter. Date of Sale: 11/03/97 Sales Price: $3,000 Location: East of Hwy. 71B and North of 19th Street. Size: Approx. 46,609 Sq. Ft. or 1.07 Acres Zoning: C-2 — Commercial Thoroughfare Improvements: None Remarks: Located in south Fayetteville with Hwy. 71 frontage on S.School St. Purchased by adjoining property owner. Indicated Value: $0.06/sq.ft.