06-10-1985 Council Packet - Laserfiche WebLink

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N EWCOM BE & HANSEN APPRAISALS, INC. M I N N F A P 0 L: S /.1 1 N N F S T A 5- 4 U 1 #18479 -3- Estimated Market Value Before and After Assessments: In viewing the property, in estimating its market value as if placed on the open market, it is my opinion that the property, in its present condition, with a private sewage disposal system, would have an overall market value of approximately $15.00 per sgjare foot of gross building area above grade or: 23,538 sf. x $15.00 psf. = $353,070 Estimated Market Value Before Sewer Improvements: $350,000 Estimated Mao et Value After Sewer Improvements: Given the circumstances that the ,roperty is to be improved with public sewer, the most optimistic difference in value to the property would be approximately 10% increase in value which would be calculated as fellows: $350,000 x 1.10 = $385,J00 Estimated Value After Sewer Replacement: $385,000 Conclusion of Value 0iscu,sion The differential in value to the property is equal to approximately $35,000, which is basically quite minimal, however a purchaser contemplating the purchase of this property in a before and after situation would bL looking at the cost of connection, and the onrling and future payments for sewer usage, thereby increasing the cost of operations in the property. The cost of sewer rental or payment, exclusive of assessments, would have to be considered into perpetuity whereas the cost for maintaining the existing septic systems could be maintained on a sinking fund basis as or near the same cost of operation.