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

t'I f--- ~~-- Eh "--~"". / it r.tp P,~~,~ f! f~ rce g/;!;  Northwest Florida Fair Grounds - Land 1. 2 Appraisal Specifics 1. 2. 1 Appraisal Purpose The purpose of this appraisal is to estimate the fair market value and the lease income value of each parcel of the subject property. 1. 2. 2 Intended Use The intended use ofthis appraisal is for future land use planning by the City of Fort Walton Beach. 1. 2. 3 Intended User(s) This appraisal is intended for the use of the City of Fort Walton Beach, no other users are intended by the appraiser. 1. 2. 4 Market Value Definition 1. 2.4. 1 Fair Market Value 1. In appraisal, a concept that was developed in the 1970s to address specific concerns that have since been satisfied by the evolution of the market value concept in the 1980s. ( The Report ofthe Special Task Force on Value Definitions, June 1992.) 2. In accounting, a term related to the appraisal concept of market value. ( Advisory fair value Opinion 8 of the Uniform Standards of Professional Appraisal Practice addresses 1 and market value in real property appraisals.) 1. 2.4. 2 Market Value The definition of "Market Value", as defined by the Office of the Comptroller of Currency OCC) under 12 CFR, Part 34, Subpart C- Appraisals, 34.42 Definitions, the Board of Governors of the Federal Reserve System ( FRS) and the Federal Deposit Insurance Standards of Corporation in compliance with Title XI of FIRREA, as well as by the Uniform as follows. Appraisal Practice as promulgated by the Appraisal Foundation, is Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyerand seller each and knowledgeably, and assuming the acting prudently price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby, 1. Buyer and seller are typically motivated; 1 The Dictionary of Real Estate Appraisal 2 J"tl'f-- S;r~ ZIpP,~2p~ f!~~ g1f.rce  Northwest Florida Fair Grounds - Land 2. Both parties are will infonned or well advised, and acting in what they consider their own best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in tenns of cash in U.S. dollars or in tenns of financial arrangements comparable thereto; and 5. The price represents the nonnal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1. 2.4. 3 Market Rent The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the specified lease agreement including term, rental adjustment and revaluation, pennitted uses, use restrictions, and expense obligations; the lessee and lessor each acting prudently and knowledgeably, and assuming consummation of a lease contract as of a specified date and the passing of the leasehold from lessor to lessee under conditions whereby: Lessee and lessor are typically motivated. Both parties are well infonned or well advised, and acting in what they consider their best interests. A reasonable time is allowed for exposure in the open market. The rent payment is made in tenns of cash in United States dollars, and is expressed as an amount per time period consistent with the payment schedule of the lease contract. The rental amount represents the nonnal consideration for the property leased unaffected by special fees or concessions granted by anyone associated with the transacti on. 2 1. 2. 5 Three-Year Sale History Parcels # 1 and # 3 have no recorded sales infonnation for the past 3 years. Parcel # 2 was purchased by the City of Fort Walton Beach on , 10/26/ 2005 from the United States of America for a nominal sum of$ 100; ORB/P 2663/ 4937. 1. 2. 6 Current Listing/ Pending Contracts The subject property is not currently listed for sale, nor to the appraisers' knowledge have any pending contract for sale or lease. 2 The Dictionary of Real Estate Appraisal 3 rt~J/f;jiJ;~ t:}.. f;k,'! tr,r?,( YLpP,~ ~: 7:lfTC e  Northwest Florida Fair Grounds - Land Parcels # 1 and # 3 are presently tenanted by the Northwest Florida Fairgrounds on a short tenn use agreement. 2 Appraisal Scope of Work According to the Unifonn Standards of Professional Appraisal Practice, it is the appraisers' responsibility to detennine the appropriate scope of work. USP AP defines the scope of work as: The amount and type of infonnation researched and the analysis applied in an assignment. Scope of work includes, but is not limited to, the following: the degree to which the property is inspected or identified; the extent of research into physical or economic factors that could affect the property; the extent of data research; and the type and extent of analysis applied to arrive at opinions or conclusions.3 2. 1 Problem Identification The problem to be addressed in this analysis is the development of an opinion of market value for each of the three identified parcels of "as if vacant" land and to an develop opinion of market rent for each of the identified parcels " as if vacant". 2. 2 Statement of Work Property Identification and The subject has been identified and inspected by the Inspection: appraiser( s) as follows: A complete inspection of the subject land parcel was made, and photographs were taken Property is identified consistent with the property drawing located on page 42 of this report. Analysis of Physical All pertinent physical factors were analyzed. Factors: Analysis of Economic All pertinent economic factors were analyzed. Factors: 3 Uniform Standards of Professional Appraisal Practice, Page J 2 S---------..' ,,,,./......... 4 rrl~~.~ 5Ltp P'~~fi,~!:~( f:1!:. rce  Northwest Florida Fair Grounds - Land The Extent of Data The appraiser( s) maintain a current and comprehensive Research: database of real property sales and listings for the Fort Walton Beach market area. In addition to market data developed in the course of previous appraisal work and retained in the appraiser( s) work files, other sources of infonnation include: Public Record Zoning Maps Comprehensive Plan Regional MLS Where warranted, market data has been confinned by a party to the transaction, or other reliable source. The Type and Extent of Cost Approach: This approach is not applicable to the Analysis: valuation of unimproved land and has not been developed. Sales Comparison Approach: This approach is applicable, necessary and has been fully developed to ascertain market value ofthe parcels under study. Market Rent Analysis: This approach is similar to the sales comparison approach but the subject of the analysis is rent rather than sales. This approach is not applicable to the valuation of the subject parcels as recent market land leases have been between governmental agencies and are not leased at market rent. Income Approach: This approach is applicable, necessary and has been fully developed to determine