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BETTENDORF ROHRER KNOCHE WALL,INC. <br /> HIGHEST AND BEST USE <br /> ' Highest and Best Use Definition: Highest and best use, as defined in Real Estate Appraisal <br /> Terminology, edited by Byrl Boyce, Ph.D. revised edition, Cambridge, MA; Bellinger Publishing, <br /> copyright 1984, pages 126-127, is: <br /> "That reasonable and probable use that will support the <br /> highest present value, as defined, as of the effective <br /> date of the appraisal. <br /> Alternatively, that use, from among reasonably probable <br /> and legal alternative uses, found to be physically <br /> ' possible, appropriately supported, financially feasible, <br /> and which results in the highest land value. <br /> 111 The analysis of the subject property assumes that the site is vacant and available for <br /> development. The purpose of the "as vacant" analysis is to determine the optimum <br /> ' improvement for the site, subject to the four criteria of physically possible, legally permissible, <br /> financially feasible, and maximally productive. <br /> ' The "as vacant" highest and best use must be considered in relation to its existing use and all <br /> potential uses. It is possible that the highest and best use of a site may be to refrain from <br /> development until there is a change in market conditions. The value of the land is to be <br /> consistent with the concluded "as vacant" highest and best use, which is a fundamental concept <br /> of the Cost Approach. Comparable land sales should have the same or a similar highest and <br /> best use. <br /> ' Highest and Best Use Discussion: Orono is a residential community, with limited commercial <br /> or multi-family development. Area development patterns are strongly influenced by Lake <br /> Minnetonka. Correspondingly, the neighborhood of the subject property is characterized by a <br /> wide range of home values, condition and construction quality. Forest Lake, which connects by <br /> channel to Lake Minnetonka, is less than one block east of the subject property. The zoning of <br /> the subject property permits only single family residences, which is in character with the area. <br /> 1 <br /> 31 <br />