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

significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed. 8. 1 Sales Comparison Approach The Sales Comparison Approach was used in this analysis as investors and purchasers of self-use such analysis to make investment decisions. The sales comparison analysis is a good indicator of market preferences as it demonstrates what active participants are offering in the present market. 8. 2 Income Approach The Income Approach was used in this analysis as investors use such analysis in the making of investment decisions relative to the return on invested capital. The potential income developed in this analysis is typically year one of a multi- year lease with cpr adjustments as well as land use restrictions. It should be noted that in a profit driven market environment it is unlikely that the subject parcels would be offered for lease or leased by for profit entity as vacant land. The more 35 r,,~~~~-~. JO} f__' YlpP,~,; pf1,,~[,~ g 1;!,~: ce  Northwest Florida Fair Grounds - Land 8. 3 Value Conclusion Therefore based on the data and analyses developed in this appraisal, we have reconciled to a value estimate of: 8. 3. 1 Market Value The fee simple market value of the subject parcels are: Parcel # 1 $ 4, 504,000 Parcel # 2 $ 6, 401, 000 Parcel # 3 $ 3, 955, 000 8. 3. 2 Lease ( Annual Income) Value Parcel # 1 $ 381, 900 Parcel # 2 $ 542, 800 Parcel # 3 $ 335, 400 As of December 20, 2006; subject to the Limiting Conditions and Assumptions of this appraisal. 8.4 Marketing and Exposure Time A reasonable marketing time is an estimate of the amount of time it might take to sell an interest in real property at its estimated market value during the period immediately after the effective date of the appraisal; the anticipated time required to expose the property to a pool of prospective purchasers and to allow appropriate time for negotiation, the exercise of due diligence, and the consummation of a sale at a price supportable by concurrent market conditions. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate is based on an analysis of past events to occur prior to assuming a competitive and open market Exposure time always presumed is the effective date of the appraisal. The overall concept of reasonable expo- sure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort time is different for various of real types estate and value ranges and under Exposure various market conditions. ( Appraisal Standards Board of the Appraisal Foundation, and Statement on Appraisal Standards No. 6, " Reasonable Exposure time in Real Property Personal Property Market Value Opinions") 37 I/~----. /~ r= i.H_.,----b 9lp P J." '. r/I. 9~ r!sf. 2.g z;; rce  Northwest Florida Fair Grounds - Land Market value estimates imply that an adequate marketing effort and reasonable time for In the case of disposition value, exposure occurred prior to the effective date of the appraisal. the time frame allowed for marketing the property rights is somewhat limited, but the marketing effort is orderlyand adequate. With liquidation value, the time frame for marketing the property rights is so severely limited that an adequate marketing program cannot be implemented. ( The Report ofthe Appraisal Institute Special Task Force on Value Definitions qualifies exposure time in tenus of the three above- mentioned values.) Marketing time differs from exposure time, which is always presumed to precede the effective date of the appraisal. (Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, " Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions" address the 9 detennination of reasonable exposure and marketing time.) Marketing and exposure time is estimated to be twelve to eighteen months. Marketing and exposure time is predicated on the marketing results of similar properties within the subjects' market area. 9 The Dictionarv of Real estate Avvraisal- 4th ed. 2002 Appraisal Institute r-~-- --~ 38 J .- _ f e" _ .. I r-~ f: I---~ lp P '~':; . ce f!;&" r~ 2g ~;  Northwest Florida Fair Grounds - Land 9 Certification Statement I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions and conclusions. I have no present or contemplated future interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. My analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice USP AP). I have made a personal inspection of the property that is the subject ofthis report. No one provided significant professional assistance to me in the development of the conclusions contained in this report. The Appraiser has established sufficient competence to appraise this property through education and experience, in addition to the internal resources of the appraisal firm. My value conclusion and other opinions expressed herein are not based on a requested minimum value, a specific value or approval of a loan. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute and the Institute of Fee Appraisers. es R. Wilton, Ph. D., IF AS tate Certified General Real Estate Appraiser 2288 N!! 39 j;~ 1:. t;~ ji~ 5tpp ?;':;,,~ Tce f!s~-~ g 1;;,  Northwest Florida Fair Grounds - Land 10 Bibliography th Appraisal Institute, The Appraisal of Real Estate, 11 Edition. Chicago 1996 Appraisal Institute, The Dictionary ofReal Estate Appraisal, 4th Edition. Chicago 2002 Marshall & Swift, Marshall & Swift Valuation Service, Los Angles 2006 The Appraisal Foundation, Uniform Standards ofProfessional Appraisal Practice, Washington DC 2006 40 r~ (-'~ -----.; J w J-------> /..... irJ . a- I ~ .. ,-=-- t. f2tpp l~~,~,'! t~-~( rce z;, f!,  Northwest Florida Fair Grounds - Land 11. 1 Site Drawing NORTHWI!51'PLORlDA FAIRGROUNDS EXISTING IMPROVEMENTS r'- .-.- .~.-.-.~.- .-,-.- ........- .......- I~ ._,:::-~~.---.~ ,-.-.- '-'-'-Ji ,- ,-. i: wi i i ;, U.L IkJYI!IUaUINT om' i i ,.!...- 1. I i if CXJUNTY ic':s l;:'= UNPL&: