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

e., that the and best use results from the appraiser' s judgment and analytical skill, i~ use determined represents an opinion, not a fact. The Highest and Best Use section of this report is the pivotal point in the appraisal process. All previous data is used to test in four criteria, as stated in the definition: ( 1) legally permitted, ( 2) physically possible, ( 3) economically feasible, and, ( 4) maximally productive. The property being appraised includes : i: l1.99 acres of land area, or approximately 522, 284 square feet. It. is not zoned, but has a future land use designated as " county," and is located in an area where the prevalent uses are commercial along the most highly trafficked roadways and residential off of these same major roadways. AS VACANT ANALYSIS - Given the appraisal problem, we' consider the land as though it were vacant and available to be developed to its highest and best use. The first criteria of legally permitted allows for a variety of uses. The property is not currently zoned, but has a future land use of " county." With this being the case, it is conceivable that any number of uses could be allowed for the land. With no specifically defined zoning guidelines, all legally permitted possibilities are considered possible. The second criteria concerns whether the legal uses are physically possible. In this we can consider all possible uses. The site is generally level, will be assumed 7 Appraisal Institute, The Dictiona.ry of Real Estate Appraisal, 3rd ed. ( Chicago: Appraisal Institute, 1993) 171.  75 to have adequate access to public roads, and its shape and size are not detriments to development. Many commercial and industrial uses are physically possible. Additionally, a residential subdivision use is not beyond possibility for the subject parcel.We conclude that the physically possible uses of the parcel are many: The third criteria of economically feasible considers whether the. legally permissible and physically possible uses are financially feasible at this location and. under current market conditions. In our opinion, there are limited number of uses that can be considered financially feasible for the subject parcel. Typical retail and service commercial development requires ease of access and visibility. The subject parcel is considered to be too distant from a major roadway to be considered for a general commercial use depending on exposure to passing traffic. This exposure is less important, however, for heavy commercial operations similar to those uses found in the nearby S & P Industrial Park, indicating a possible industrial park use for the subject parceL A residential use of the subject parcel, especially given the dwindling supply of vacant home site within the subject neighborhood, could be considered an economically feasible use of the subject property. The ,final criteria is that use or those uses that will be maximally productive. While there is still some land available within the nearby S & P Industrial Park, this land is limited. New areas of potential residential development are also severely limited in the Fort Walton Beach area. It is our opinion that while either of these two uses are feasible, the most productive would be for new residential construction. 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 residentiaL AS IMPROVED ANALYSIS - The property being apraised.is currently improved with a complex of buildings used by the Fair Association. While this use generates some rental income, the highest and best use of the property is for residential development.  76 LAND VALUE ANALYSIS - SUBJECT PARCEL #3 The property being appraised contains a total land area of approximately 1:11.99 acres, but without access to a public roadway. An important assumption of our opinion of market value for the subject Parcel # 3 is that it will have access to Lewis Turner Boulevard via a 60-foot easement across Parcel # 1. The land is level a~ d drainage is good. All utilities are available. Residential development is the highest and best use of the land. Examination of the descriptions and comparative analysis for the residential portion of Parcel # 1 reveals that the similarities between it and Parcel #3 are many. Because of these similarities, the unit value estimate for the residential portion is considered to be applicable to Parcel # 3. We therefore apply the residential land value indication of $230, 000 per acre to the :1:11.99 acres of Parcel # 3 as follows: Estimated Market Value of the Subject' s Land, As Vacant: 1:11.99 Acres times $ 230,000 per AC = $ 2, 757, 700 Rounded to $ 2, 010, 000 2, 760, 000 ESTIMATED LAND VALUE, PARCEL #3 2, 760, 000  77 LAND LEASE ANALYSIS - SUBJECT PARCEL #3 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 # 3 to arrive at a reasonable annual rent for the land. An 8. 5% rate of return and estimated value of $2, 760, 000 indicates an annual market rent of $234,600 for the subject Parcel # 3. ESTIMATED ANNUAL LEASE, PARCEL #3 234, 600  79 CERTIFICATE OF APPRAISAL The undersigned does hereby certify that, except as otherwise noted in this appraisal report: 1) I have no present or contemplated future interest in the real estate that is the subject of this appraisal report. 2) I have no personal interest or bias with respect to the subject matter of this appraisal report or the parties involved. 3) To the best of my knowledge and belief the statements of fact contained in this appraisal report, upon which the analysis, opinions and conclusions expressed herein are based, are true and correct. 4) This appraisal report sets forth all of the limiting conditions ( imposed by the term of my assignment or by the undersigned) affecting the analysis, opinions and conclusions contained in this report. 5) This appraisal report has been made in conformity with and is subject to the requirements of the Code of Ethics and Standards of Professional Practice of the Appraisal Institute. 6) The property has been personally inspected by the undersigned. Helping with the research and analysis was an associate, Stephen McKenney, Florida State Trainee Real appraisal Estate Appraiser # RI8246. Full responsibility for the analysis, conclusions and opinions concerning real estate that are set forth in the appraisal report is that of the undersigned. 7) As of the date of this report, I, M. Eugene Presley, have completed the requirements under the continuing education program of the Appraisal Institute. 8) The subjects of this appraisal report are identified as three defmed parcels that are parts of parent parcels # 26- 1S- 24- 0000- 0001- 0040 & # 26- 1S- 24- 0000- 0001- 0030, Okaloosa County, Florida. 9) This appraisal assignment was not based on a requested minimum valuation nor a Beach, specific valuation. The only intended users are representatives of the City of Panama City Florida, with the onlyintended use the use of the report in the negotiation and acquisition of being the part to be acquired by the City. 4 M. Eugene Presley, MAl, BRA State- Certified General Real Estate Appraiser OOOO;iO~ I{\ I .~i __./ j' l'-- i \/ '----.-, 1 j i st~ hen E. McKenney State. Registered Trainee Real Estate Appr iser RI8246  80 ASSUMPTIONS AND LIMITING CONDITIONS: 1. This is a Self-Contained Appraisal Report which is intended to comply with the reporting requirements set forth under Standards Rule 2- 2( a) of the Uniform Standards of Professional Appraisal Practice for a Self-Contained Appraisal Report. As such, it includes full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser' s opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained. in the appraiser' s file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report. 2. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report. 3. The property is appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report. 4. Responsible ownership and competent property management are assumed unless otherwise stated in this report. 5. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 6. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No