Fort Walton Beach Council agenda — 02-27-2007 workshop agenda — reading text

commercial development within that portion of the subject parcel that runs along Lewis Turner Boulevard. 6 Appraisal Institute, The Dictionary of Real Estate Appraisal, 3rd ed. ( Chicago: Appraisal Institute, 1993) 171.  64 This strip would have a depth of 250 feet. Deducting 60 feet for the access easement required to reach the residential portion of the parcel, about 764. 3 feet front Lewis Turner Boulevard for commercial purposes. Multiplying this by a depth of 250 feet indicates a commercial development strip of about 191, 075 square feet, or :1:4. 39 acres. The remaining portion of the subject parcel, 552,494 square feet, or :1:12. 68 acres, cO,uld be used for residential development. Therefore, the highest and best use of the property as if vacant and available for improvement to its highest and best: use, is considered to be mixed- use with that portion fronting Lewis Turner Boulevard at a depth of 250 feet for commercial development and the remaining portion for residential development. . AS IMPROVED ANALYSIS - The property being appraised is currently improved with a municipal park that includes ball fields and a playground area. This use can be considered to fulfill the consideration for the community needs. However, the definition of Highest and Best Use also calls for consideration of that use that renders the greatest wealth maximization for a given property, as well. Given that we have been asked to determine the market value of the subject property, the maximally productive use holds great weight in an " open market" consideration of the property' s Highest and Best Use. As determined in the proceeding analysis of the Highest and Best Use of the subject parcel, as vacant, the Highest and Best Use of the subject parcel is for mixed- use development. However, an alternative use may be the development of municipal facilities vital to the functioning of the community.  65 LAND VALUE ANALYSIS - SUBJECT PARCEL #2 The property being appraised contains a total land area of approximately 743, 569 square feet (:1:17. 07 acres), and has about 824. 3 feet of frontage along Lewis Turner Boulevard. Deducting a 60-foot easement for access to the rear residential portion, the effective frontage is about 764: 3 feet. The land is level and drainage is good. All utilities are available. Mixed-use development is the highest and best use of the land. More specifically, the front strip of 250 depth should be reserved for commercial use ( 191, 075 square feet, or :1:4. 39 acres) with the remaining ( 552, 494 square feet, or 1 : :12. 68 acres) being for residential development.' Examination of the descriptions and comparative analysis for Parcel # 1 reveals that the similarities between Parcel # 2 and Parcel # 1 are many. Because of these similarities, the unit value estimates for the commercial and residential portions are considered to be applicable to the similar areas of Parcel # 2. We therefore apply the commercial land value indication of $ 10. 50 per square foot to the 191, 075 square feet of the commercial area of Parcel # 2, as well as the residential land value indication of $230, 000 per acre to the :1:12. 68 acres of Parcel 2 as follows on the next page:  66 Estimated Market Value of the Subject' s Commercial Land, As Vacant: 191, 075 SF times $ 10. 50 per SF = $ 2, 006, 288 Rounded to $ 2, 010, 000 Estimated Mar~et Value of the Subject' s Residential Land, As Vacant: 12. 68 Acres times $ 230, 000 per AC = $ 2, 916, 400 Rounded to $ 2, 010, 000 2, 920, 000 Plus Commercial Portion 2. 010. 000 4, 930, 000 ESTIMATED LAND VALUE, PARCEL #2 4, 930, 000  67 LAND LEASE ANALYSIS - SUBJECT PARCEL #2 In order to determine a fair market rent for the subject land, we have first determined an estimate of the market value of the land. In the analysis presented with Parcel # 1, we determined a reasonable expected rate of return to land similar to the subject's to be about 8. 5%. We apply this rate of return to the estimated market value of the subject Parcel # 2 to arrive at a reasonable annual rent for the land. An 8. 5% rate of return and estimated value of $4, 930,000 indicates an annual market rent of $419, 050 for the subject Parcel # 2. ESTIMATED ANNUAL LEASE, PARCEL #2 419, 050  68 PART FOUR: SUBJECT PARCEL #3 - DESCRIPTIONS, ANALYSIS, AND VALUATIONS  69 SUBJECT PARCEL # 3 DESCRIPTION For a better visualization of this narration, please refer to the following pages for exhibits and photographs. PARCEL AREA: 1:11.99 Acres. SHAPE: Rectangular: ' DIMENSIONS: We were only provided with a statement as to the total size of the subject parcel. No surveyor specific legal description of Parcel # 3 was supplied. The only legal description is of the parent parcel, identified as parcel # 26- 1S- 24- 0000- 0001- 0040 by the Okaloosa County Property Appraiser' s office. INGRESSIEGRESS: As shown in the allocation of the land areas for the three parcels, Parcel # 3 is cut off from access and effectively land-locked. To prevent this situation, an important assumption of this appraisal is that easement access to Parcel # 3 will be granted over Parcel # 1.We estimate a 60. foot easement to be sufficient for this access. TOPOGRAPHY: Generally level at road grade. DRAINAGE: Appears adequate. FLOOD DATA: Not located in a flood hazard area. Designated to be located in Zone X according to Flood Insurance Rate Map 12091C0453H, dated December 6; 2002. SOIL COMPOSITION: According to the United States Department of Agriculture Soil Survey of Okaloosa County issued in June 1995, the soil is described as Lakeland sand, 0 to 5 percent slopes. This is further described as an excessively drained soil, poor for cultivated crop use, but moderate for pasture or pine timber growth. The soil is considered well- suited for building development with the only limitation being the possibility of caving in excavated areas.  70 UTILITIES: Connected to water, sanitary sewerage, electricity and telephone service. SITE IMPROVEMENTS: This parcel is improved with a complex of metal and concrete block buildings used by the Fairgrounds Association. The Okaloosa County Property Appraiser states a total area of about 97, 989 square feet for the building improvements. The parcel also contains asphalt drives, poled lighting, and chain-link fencing. As we were asked to appraise the land value only, our appraisal does not include any valuation of the existing improvements. EASEMENTS: No adverse easements noted upon inspection of public documents. ZONING & LAND USE: According to zoning maps, the subject parcel is not zoned. Future Land Use is designated as County," but within the Fort Walton Beach city limits. ENCROACHMENTS: None noted. RESTRICTIONS: 50- foot building height Above Ground Level AGL), as well as a requirement that all electromagnetic radiation devices be coordinated with the Eglin Spectrum Management Office. GENERAL DESCRIPTION: This parcel is larger than typical for the neighborhood but with a rectangular shape that enhances utility. It lacks frontage along any road and would therefore be considered land-locked, as is. An important consideration of our opinion of value for this parcel is the assumption that there will be a 60-foot access easement over the parcel immediately south of the subject ( Parcel # 1). allowing entry from Lewis Turner Boulevard. Topography, drainage, and soil seem to indicate good physical development potentiaL The parcel is restricted through deed restriction to building improvements of not more than 50 feet in height.  71 SUBJECT PARCEL #3 AERIAL PHOTOGRAPH  72 SUBJECT PARCEL #3 PHOTOGRAPHS View of Southern Boundary of Subject Parcel # 3 from across Parcel # 1 View of Building Improvements Located on Parcel # 3  73 PHOTOGRAPHS View of Gated Entrance into Subject Parcel # 3 from Parcel # 1 Interior View of Subject Parcel # 3  74 HIGHEST AND BEST USE - SUBJECT PARCEL #3 A brief definition of the term "highest and best use" would be: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately. supported, financially feasible, and that results in the highest value." 7. Implied within this definition is recognition of the contribution of that . specific use to community environment or to community development goals in addition to wealth maximization. Also implied is that the determination of highest