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HomeMy WebLinkAboutReal Estate Appraisal Report - 1985(Easement #24) RA♦ Q s Q r W E � s � cl REAL ESTATE APPRAISAL REPORT EASEMENT of 24 1115 WILLOW DRIVE SOUTH ORONO, MN @- - 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 JCF/mab �QQw���E ss ;s O0 , 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 -1- � W E N s► s �i sOC%W 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. -2- P'ROP'ERTY DESCRIPTION' QORAe'O"'Of 7N sOCIWt 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. -3- Q:ORA � WE N s► s �i soc�o►�c 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. -4- ec, N �sOP 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 -5- 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. -6- � w�S a&S %CIN 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 -7- AI- - - •. - - - - tea-: _ _ At ''x -� 1 `.cam •�wes- ._ _ -..+$� _ Ar �„• -f sem... VALUE ANALYSIS QIRAM � wE N S► s �fl sOCIO� 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: -9- 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 -10- QRa�s� TWO � �sOcl 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- -11- CERTIFICATION QQRN�s9 w+E b �► S �l VOelP�c 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. -12- QQ��s9 S 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 -13- QQRN�s9 � W s N 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) -14- ._..ADDENDUM _ ,---- - _ H r Bulnr 1011TH A _— —Z — 11 c Ride 65 A N K A•% I e•rH AVL H. I 7TH 9T� I 9 Sir All Park a -.,•_;-. I :_ ..'-' 1 .:•`: ., x Slake � Yivndz ll eld I Corcoran Maoie Gave 10it ' . f - , A I i JU-� , ," Y Fridley a I Cori• 1 I f !.Voss l k ----- --- -------------r� z - --- 1>.D wE H -1-� _ (enter I�+1•-� -B` '--'-s _ �•-. ~ .;• �"iJ,Jrettair"'��..� �� _ 4c �illto CHe ghti a c 15 HemelOysu 1 . . �� i= Mu. 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