HomeMy WebLinkAboutReal Estate Appraisal Report - 1985(Easement #24) RA♦
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REAL ESTATE
APPRAISAL REPORT
EASEMENT of 24
1115 WILLOW DRIVE SOUTH
ORONO, MN
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APPRAISAL ASSOCIATES
ReQ1 Estate Appraisersand Consultants
� P.O. Box 56, Hamel, Minnesotoa 55340/Telephone (612).478-6068
sct
September 26, 2985
Mr. John Gerhardson
Public Works Supervisor
City of Orono
P. 0. Box 66
Crystal Bay, MN 55134`3
Pe: 1.l1..` Willow Drive
Orono, MN
Dear Mr. Gerhardson:
At your request I inspected the above--referenced property on
11 September 1985 for the 1rurpose of determining what damage theri-I
may be to the value of the property as a result of a partial taking
of land from the site. The taking will be a 7 . 5 ' wide 290' long
permanent easement for the purpose of installing a public sewer.-
system in the city. In addition -to--'the .p-ermanent taking, the city
also regjires a temporary easement over 10' of ground adjacent t.o
the permanent taking.
I have determined that the taking will cause a loss in value to
the property in the amount of $2,020. In addition., the temporary
easement for pur..,oses of construction is valued at 10% of the
value of ¢'re la-rid only or $87 .
W"f'TAjti i `:l'�IQLT;:; ,,tit► t'� HUNDRI"D SEVEN DOLLARS--
— methods of arriving at this value is shown elsewhere in this
report. It is my opinion that there is no permanent damage to the
.roperty nor is there a loss in utility. It is assumed that the
port-ton of t?"rc 1.^S` in value which covers removal of the trees in
the easer_:ent area:t will be used to replace those plants and trees
with like specimens in the future_
The appraiser considers the value of the loss to the property and
then views the taking as to whether it seriously affects the over-
all value of the remainder. If the appraiser finds future loss
in -u-tility, then that future loss is considered in the caps.-t nutation.
I find no such loss in the future and, therefore, conclude only the
amount described above. The damages are divided as follows :
2,7.75 S .F. @ 0.40 P.S.F. $ 870
Trees & Shrubs 250
Maple Tree 900
Temporary Easement 87
$2,107
Mr. John Gerhardson
September 26, 1955
Page 2
If you have any questions concerning the methods or •valuations
found, please call me.
Sincerely ,
John C. Farrell, CRA
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TABLE OF CONTENTS
Introduction
Title Page
Leiter of Transmittal
'�able of Contents 1
Purpose and Definition
P o er_ ty Description
Description of the Site 3
Description of the Improvements 4
Description of the Taking . 5-6
Legal Data and Public Records 7
Photographs of the Proposed Taking 8
Value Analysis
Loss in Value Analysis 9-10
Correlation and Final Conclusion 11.
Certification
Assumptions & Limiting Conditions 12
Certificate of the Appraisal 13
Appraiser' s Qualifications 14
Addendum
Location Map Exhibit A
City of Orono Sewer Project Map Exhibit B
Easement Plan Exhibit C
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PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to estimate the fair
market value of the subject property as if free and clear
of all liens and encumbrances.
t`.E�INITION OF MARKET VAT..U'F
Market value has `Deen defined as follows :
1. The most reasonable price estimated in terms of
money which a property is expected to bring if
exposed for sale in the open market , allowing a
reasonable time to find a purchaser who buys 0.0h
knowledge of all the uses to which it is adapted
and for which it is capable of being used..
2 . Frequently , it is referred to as the price at
which a willing seller would sell and a willing
buyer would buy, neither being under abnormal
pressure.
z. It is the price expectable if a reasonable time
is allowed to find a purchaser and if beth seller
and prospective buyer are fully informed.
The essential difference between market price and market
value as defined above lies in the premises of intelligence,
knowledge, and willingness , all of . which are contemplated
in market value but not in market price. Stated differently,
at any given moment of time, market value connotes what a
property is actually worth, and market price what it may be
sold for.
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P'ROP'ERTY DESCRIPTION'
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DESCRIPTION OF THE SITE
The site is located on the south side of Willow Drive. The dimen-
sions of the site are 170' x 340' x 170' x 290' . Zoning for the
site is Single Family Residential use. The present use conforms
to the zoning requirements. The site is served by public electric
service and public gas service. Access from the site onto Willow
Drive is from a blacktop surfaced driveway.
The site is level at street grade with adequaT drainage provified
for flow of rainwater and runoff away from the home on the site.
The view to the front is overage for the area. The rear yard is
shielded from adjoining property by mature softwood trees and low
shrubbery. There is no indication that the site is adversely
affected by encroachments or unrecorded easements.
The site has 170' of frontage along Willow Drive South. The site
is not typical in the area due to various platted lots in the
subdivision. There are various types and sizes of plantings and
trees on the site. The east line has the most variety of
plantings which are in different stages of condition of life
expectancy.
The proposed permanent taking and temporary easement is lcoated on
the east side of the property adjacent, of 1145 Willow Drive.
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DESCRIPTION OF THE IMPROVEMENTS
The site is developed with a split foyer detached residence con-
taining 1663 square feet of finished area on two levels. The
condition of the improvements is average for its age with no
major repairs required. Regular maintenance is evident through-
out the home and all ;utility service units are in good to
average condition . Vri.Pre is no evidence that the lower level
has suffered front water seepage over the past years.
A summary of consturction detail follows:
Age 1965
Foundation: Concrete Block
Exterior Walls : Wood Siding
Roof Material : Asphalt Shingles
Basement: Partial enclosed basement with one room finished. The
east side of the basement level is utilized for a tuck-
under garage for two cars.
Rooms : 7 rooms , 3 bedrooms , 1� baths, 2 fireplaces , : screened
porch. Gas forced warm air heat.
Condition: Average for the age of the property.
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DESCRIPTION OF THE TAKING
The City of Orono, in order that installation of the municipal
sewer line may go forward, requires a permanent easement for
utility purposes over , ender, and across the southeasterly 7 . 5'
of the appraised property. In addition, a temporary easement over,
under, and across the northwesterly 10' of the southeasterly 17 .5 '
of the appraised property, This taking is determined to be for
the public. good.
The taking consists of the permanent 7 . 5' along the southeasterly
line of the proeprty whose address is 1115 Willow Drive. This
line is approximately J.90' from the Willow Drive South point to the
southwesterly corner of the lot. The area comprises approximately
2,175 square feet. The temporary construction easement comprises
2 ,900 square feet along the same line.
The land in consideration is on the lot line between the subject
and 1145 Willow Drive. The area contains various trees up to a
diameter .of 12" and different species of low brush and shrubbery
which is not cultivated or. trimmed. The area on which the tempor-
ary easement- is proposed has various growLh. Most of the trees
are in varying stages of disease or life limit.
In addition to the line of uncultivated trees. and brush, there is
a large maple tree at the southwest end of the property that wil.1.
be removed during the consturction process. This tree is valued
separate from the easterly trees along the property line with
114.5 Willow Drive.
The legal description of the permanent taking fol.-l-ows :
That part of Section 10, Township 117, Range 23: Commencing at a
point in west line of NE4 of NW4 distance 395 feet 10 inches
north from SW corner thereof; thence south 35° 45' east a distance
of 1 , 298. 90 feet to actual point of beginning; thence continuing
southeasterly along said bearing line 160 feet; thence south-
westerly at right angles to the intersection with a line running
from a point in northwesterly line of GN RR right-of-way distance
59.40 feet southwesterly along said right-of-way line from its
intersection with north line of SA to a point in west line of
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Gov' t. Lot 6 distance 492.36 feet south from NW corner thereof;
thence northwesterly along said line to its intersection with a
line running southwesterly at right angles from point of be-
ginning; thence northeasterly to beginning.
A permanent easement for utility purposes over, under and across
the southeasterly 7.5 feet of the above described parcel.
A description of the temporary easement follows :
That part of Section 10, Township 117, Range 23: Commencing at a
point in west line of NE4 of NWk distance 395 feet 10 inches
north from SW corner thereof, thence south 35° 45' east a distance
of 1,398.90 feet to actual point of beginning; thence continuing
southeasterly along said bearing line 160 feet; thence
southwesterly at right angles to the intersection with a line
running from a point in northwesterly line of GN RR right-of-way
distance of 59.40 feet southwesterly along said right-of-way line
from its intersection with north line of SW-',, to a point in west
line of Gov' t. Lot 6 distance 492.36 feet south from NW corner
thereof; thence northwesterly along said line to its intersection
with a line running southwesterly at right angles from point of
beginning ; thence northeasterly to beginning.
A temporary construction easement over, under and across the
northwesterly 10 feet of the southeasterly 17 .5 feet of the above
described parcel.
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LEGAL DATA AND PUBLIC RECORDS
Legal Description: That part of Government Lot 6, Section 10,
Township 117 North, Range 23, West of the 5th Principal Meridian,
described as follows: Commencing at a point 396 feet North of the
Southwest corner of the Northeast 1/4 of the Northwest 1/4 of said
Section 10; thence Sar)th 35 degrees 45 min-utes East a dis tzirice of
`g , �, feet:. to the actual Cc.in�t of bcgis.n;.ng of the pr pc_•rty being
J.described: thence continuing along sai.�:I I.i.ne 160 facet; hence
deflecting right 90 degrees to a line drawn Nor t. w4stf.rly from a
point on thb Northwesterly boundary of the t ght-of-wuy of the
Minnetonka Branch of the Great Northern, Iailway formerly the St.
Pauly-Minneapolis and Manitoba Railway a distance of 90/100th
chains South of the East and West 1/4 section line of said Section
492 .36 feet South of the Northwest corner thereof; thence
Southwesterly throught he point of beginning and perpendicular to
Northeasterly along said line to the point.. of beginning, except the
Southwesterly 20 feet therof deeded to. the Village of Orono for
road purposes .
Tax I.D. Number: 10-117-23-24-0017
Zoning: Single Family Residential
Taxpayer: Willian J. Keegan
Fee Owner: Mary Ann Olson Genson and Benjamin Genson
Assesor: s Records : Market Value Et7 , � 00.00
Real Estate Taxes 631.09
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VALUE ANALYSIS
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LOSS IN VALUE ANALYSIS
The value of the taking is determined by the loss in value of the
actual real estate relinquished. The loss of the trees and
shrubs along the line is more difficult to analyze due to the
location along the line and the exact location of those trees
on the subject property or on the adjoining site.
There is one large maple tree on the southwest corner of the
property that deserves separate consideration. Based on data
supplied by the Council of Tree and Landscape Appraisers, it is
determined that the value of this specimen is $900.
The trees offer some wind protection from the south but do not
influence energy costs. The strip of land is not currently
utilized for either driveway purposes or other access. The value
of _the trees is estimated at $250 for--- the trees between 1115
Willow Drive and 1145 Willow Drive and $900 for the Large maple.
The diminution in value is limited to the permanent taking of
2,175 square feet. The value of this land is estimated based on
sales of similar sites in the area with similar amenities. The
value of similar lands for construction of single family resi-
dential housing units runs from 0.35 per square foot to 0.60
per square foot. The higher values are in the newer subdivisions
and typically contain smaller cites thant he subject . It is
reasonable, to estimate the value of the subject site at 0.40
per square foot .
As a part of the process of determining the value of the taking,
it is normal to consider if there is any loss in future use of
the land as a result of the taking. After considering the loca-
tion of the parcel to be acquired, its present and future impact
on the value of the parcel as a whole, it is not deemed to be of
considerable impact on the value of the entire parcel now or in
the future. Therefore, no ."severance damage" is considered in
the loss of the land for the permanent easement. This is a
"partial" taking and will not adversely affect the remainder
part of the property. Following is a computation of the value
of the taking:
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Market Value "before" $659000
Value of Taking 870
Less Value of Trees & Shrubs 1 , 150
Value of Remainder as part
of larger parcel "after 622800
Less Market Value of
remainder after taking
and construction of
proposed improvements 62,800
Severance Damage 0
Value of Taking $ 29020
Temporary Easement 87
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CORRELATION AND FINAL CONCLUSION
The proposed partial taking of land for a permanent easement and
a temporary easement for construction purposes consists of two
parcels. The permanent taking includes 7.5' x 290' along the
southeasterly boundary of the property. The temporary easement
is along the northeasterly side of the permanent easement and is
10' x 290' . The taking is from the southerly corner of the
property as it ad,joirt:� willow Drive South. Based on an inspection
of the site, there is no indication that the taking will adverse-Ly
affect the utility of the property nor its overall value after
the taking.
The appraiser has elected to value both the permanent easement
and the trees that will be affected as one valuation. The
temporary easement is treated separately. The theory for this
valuation method is derived from the writings of various authors
published in the third edition of "Encyclopedia of Real Estate
Appraising" and the "Guide for Establishing Values of Trees and
Other Plants" published by the Council of Tree and Landscape
Appraisers. Both of these publications are widely used and
referred to in the appraisal profession for the valuation of
partial takings with plantings as part of the taking.
On the basis of my examination of the property and the documents
prepared by the City of Orono including drawings of the proposed
taking, experience in the valuation of real estate in the area
of the subject, and examination of the public records , it is my
opinion• that the value of the partial taking is $2,020 with an
addition $87 for the temporary construction easement. There is
no evidence that "severance damage" is part of this taking.
-TWO THOUSAND ONE HUNDRED SEVEN DOLLARS-
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CERTIFICATION
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ASSUMPTIONS AND LIMITING CONDITIONS
We assume no responsibility for matters legal in character
nor do we render any opinion as to the title which is as-
sumed to be good. All existing liens and encumbrances have
been disregarded unless specifically identified. The property
is appraised as though free and clear, under responsible owner-
ship and competent mana.;ement.
The sketch in this report is included to assist the reader
in visualizing the property. We have made no survey of the
property and assume no responsibility in connection with
such matters . The legal description and/or survey furnished
us is assumed to be correct.
We believe to be reliable the information identified in this
report as being furnished taus by others , but assume no
responsibility for its accuracy.
Possession of this report or a copy thereof does not carry
with it the right of publication, nor may it be used for any
purpose by any but the applicant without the previous consent
of the appraiser or the applicant in writing, and in any
event only with proper qualification.
We are not required to give testimony or attendance in court
by reason of this appraisal with reference to the property
in question unless arrangements have been previously made
therefor.
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s0c%W CERTIFICATE OF APPRAISAL
The undersigned does hereby certify as follows :
a) I have inspected the property.
b) I have no present or contemplated future interest in
the real estate that is the subject matter of this
appraisal reDort or the parties int-01ved.
c) I have no personal interest or bids with respect to
the subject matter of this appraisal report of the
parties involved.
d) To the best of my knowledge and belief , the statements
of fact contained in this appraisal report, upon which
the analyses , opinions and conclusions expressed herein
are based, are true and correct.
e) This appraisal report sets forth all of the limiting
conditions (imposed by the terms of my assignment or
by the undersigned) affecting the analyses , opinions
and conclusions contained in this report.
f) This appraisal report has been made in conformity with
and is subject to the requirements of the Code of Pro-
fessional Ethics and Standards of Professional Conduct
of the Society of Real Estate Appraisers .
g) No one other than the undersigned prepared the analyses,
conclusions and opinions concerning real estate that
are set forth in this appraisal report.
n) The real property which is the subject of this appraisal
report was valued as of 11 September 1985 for
$ 2,020.00
APPRAISAL ASSOCIATES
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QUALIFICATIONS OF JOHN C. FARRELL, CRA
EDUCATION
New York State University - Accounting and Marketing
Rutgers University - Principles of Real Estate Law
Rutgers Ul iversity - Marketing and Advertising
Societe of real Es?:ate. Appraisers Course 101
Minnesot;x ,deal Estate to Law
Farm arid Land Ins_i tute Appraisal Course - Agricultural Valuation
AIREA Seminar - Coin g Concern Valuation
EXPERIENCE
Site Use Appraisals - Mobil Oil Company
Cost Analysis and Project Planning - General Electric Company
New Business Acquisitions - 3M Company
Real Estate Planning - Specialty Development Company
Land Purchasing for Resale & Development - Product Consultants, Inc.
PROFESSIONAL MEMBERSHIPS
Society -of Real Estate Appraisers
Farm and Land Institute
National Association of Review Appraisers
APPRAISAL EXPERIENCE
Appraisal Review
Residential Appraisals
Commercial Property
Investment Property
Condemnations
Mortgage Appraisals
Agricultural Investments Consultant
DESIGNATIONS
Certified Review Appraiser (CRA)
Certified Appraiser Dept. HUD
State of Minnesota approved:
a. Department of Natural Resources
b. Department of Transportation
C. General Services
Minnesota Housing Finance Agency (MHFA)
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