Fort Walton Beach Council agenda — 05-10-05 — reading text

personal knowledge of the real estate market. As the review appraiser, I am familiar with the market area. I have made a field review of the subject property but not the comparable sale properties used in the appraisal report. ESTATE APPRAISED The estate to be appraised is all the rights, title, and interest in and to 42. 57 acres of land belonging to the United States. Any outstanding rights, encumbrances, or unauthorized occupancies will be identified. A Specific Purpose Report has been included that reflects condition of title: Right- of-way easement in favor of the Florida State Road Department as set forth in that certain instrument dated August 19, 1969 and recorded September 19, 1969 in Official Records Book 550, Page 204, of the Public Records ofOkaloosa County, Florida. Pennanent easement in favor ofOkaloosa County, a political subdivision of the State of Florida, dated September 1, 1971 and recorded September 21, 1971 in Official Records Book 625, Page 33, of the Public Records ofOkaloosa County, Florida. Subjectto right- of-way of Lewis Turner Blvd. (S. R. 189) as shown on Property Appraiser' s Map. COMPLIANCE WITH PL91- 646 In compliance with Public Law 91- 646, the appraiser invited the landowner, US Forest Service, to accompany him on the inspection of the property. The landowner declined the invitation, the property was inspected by a walking tour on November 28, 2005. PROPERTY DATA SUMMARY Area and Local Data: City of Fort Walton Beach lies in Okaloosa County, Florida. The Okaloosa County is located along the Gulf Coast approximately 40 miles east of Pensacola and 110 miles west of Tallahassee, the State Capitol of Florida. The world' s largest military reservation, Eglin AFB and Hurlburt Field, and some of the world' s most beautiful beaches are 3 Forest Supervisor, NFs in FI Appraisal Review, Okaloosa aty Fair Grounds and Ball Park Tracts A-943 & A- 944 located in Okaloosa County. growth and a higher than average median A steady population income, due mainly to the military base and tourism, has resulted in a steady rise in the residential and commercial real estate market. The real estate growth in Okaloosa County is predicted to continue in to the foreseeable future. Property Data: The 42. 57 acre subject tract is composed of two adjacent parcels: Tract A- 943 and Tract A-944. The subject tract is to be sold in three phases. Tract A- 943 is a 30. 14 acre irregular shaped parcel located in the northwest area of Ft. Walton Beach, FL. It lies on the north side of Lewis Turner Boulevard, across from the Ft. Walton Beach Golf Course, in an unincorporated area of Okaloosa County and is adjacent to the Ft. Walton Beach City limit. The parcel has 894 ft. of frontage on a four lane divided highway and is served by public water, electricity, telephone and sewer service. The entire parcel is level, 100% outside the 500 year flood zone with grass vegetation and improved with County Fair Association buildings. It is currently under an annual special use pennit to the Okaloosa County Fair Association. The adjoining land uses are: Eglin AFB to the north and east, Ft. Walton Beach Golf Course to the south and low density residential subdivisions with strip commercial uses to the west. The back 22. 82 acre portion is Phase # 1. The front 7. 32 acre portion, with highway frontage, is Phase # 3. Tract A- 944 is a 12.43 acre irregular shaped parcel located in the northwest area of Ft. Walton Beach, FL on the north side of Lewis Turner Boulevard, across from the Ft. Walton Beach Golf Course, in an incorporated area of Okaloosa County within the Ft. Walton Beach City limits. The parcel has 824 ft. of frontage on a four lane, divided highway, and is served by public water, electricity, telephone and sewer service. The entire parcel is level, 100% outside the 500 year flood zone with grass vegetation and improved with The City of Fort Walton Beach ball fields. It is currently under an annual special use pennit to the City of Fort Walton Beach. The adjoining land uses are: Eglin AFB to the north and east, Ft. Walton Beach Golf Course to the south and low density residential subdivisions with strip commercial uses to the west. The entire parcel is Phase # 2. HIGHEST AND BEST USE In arriving at an opinion of Highest and Best Use, the appraisers applied the four tests oflegally pennissible, physically possible, financially feasible, and maximally productive for the vacant subject tract as if in private ownership. Presently, the Federally owned subject tract is not zoned but has a land use designation of Public Land, a broad category which encompasses educational use, public buildings and grounds, other public facilities and lands owned by public entities. However, if the property were to go to private ownership, the new owner would have to apply for a classification change. The process could take from 6 weeks to 6 months, with nominal expenses. After coordinating with the Okaloosa County Land Planning Office and the State Department of Community Affairs, and considering the present neighborhood land uses, the appraiser reasoned the most probable reclassification would be to a mixed use of low to medium density residential with a limited amount of commercial/retail use on the road frontage. 4 Forest Supervisor, NFs in FL Appraisal Review, Okaloosa . 1ty Fair Grounds and Ball Park Tracts A- 943 & A- 944 The Eglin AFB expressed their desire to have certain restrictions placed on the property should it be offered for sale: Structure height limitations and radio frequency limitations. The appraiser feels these restrictions will have no adverse impact on the subject property since they are already in effect by current zoning restrictions. The County plans to use a tract just north of the subject as a waste water treatment facility, RIDS. The RIDS ( Rapid Infiltration System) disperses the treated water via underground pipes. It will have a 250 foot buffer of planted pine trees. The Okaloosa County Publics Works Director stated there are no reports of any adverse effects to development with in close proximity to the field. With reference to the reports and the existing buffer, the appraiser concluded the RIDS will have no measurable impact on the subject property. Based on the appraiser' s parent tract analysis, the Subject Tract was determined to be the Parent Tract. VALUATION In estimating the fair market value of the subject property, the appraisers considered the three approaches to value. However, the income capitalization approach and cost approach were considered not applicable and were not developed in the report. Thus, in estimating the market value of the subject the appraiser developed the sales comparison approach. The appraiser considered the following elements of value: property rights conveyed, financing terms, conditions of sale, market conditions, location, zoninglcomp plan, residential densities, intended use and physical characteristics. Physical characteristics include size/ shape, frontage, topography ( lOO- year flood zone) and wetlands/ non- useable area. The unit of access/ comparison is dollars per acre. Sales Analvsis: The appraisers considered four, vacant residential development or residential/ commercial mixed use tracts. All the sales are in the same or similar market as the subject and have zoning and land use designations that are similar to the Subject' s Highest and Best Use. The sales range in size from 8.01 to 79. 05 acres, in date of sale from May 2002 to May 2004, and in unadjusted sale price from $ 83, 864/ acre to $ 22l, 571/acre. All of the sales conveyed all property rights and the financing terms were cash or equivalent to cash. The appraisers adjusted the sales in a qualitative manner using +, -, or = adjustments. The adjusted prices resulted in a $ 83, 864/ acre to 228, 571/acre range. Vacant Land Sales 1. A January 2003 residential land sale located approximately 5 miles southwest of the subject within Fort Walton Beach City Limits. The 9. 62 ac residential tract has a medium to high density residential use and sold for $135, 135/ ac. The tract has 594 feet of frontage on a on a 4 lane divided highway. This sale is superior to the subject in size and intended use and inferior in time. Over all it is considered superior to the subject. 5 Forest Supervisor, NFs in FL Appraisal Review, Okaloosa <. ty Fair Grounds and Ball Park Tracts A- 943 & A- 944 2. A May 2002 residential land sale located approximately 2. 5 miles southwest of the subject within Fort Walton Beach City Limits. The 8. 01 ac residential tract has a 41 unit single family residential subdivision use and sold for $109, 557/ ac. The tract has 60 feet of frontage on a 2 lane paved road, with an easement to the tract. This sale is superior to the subject in size and zoning (no reclassification needed) and inferior in time, access and intended use. Over all it is considered superior to the subject. 3. A May 2004 residential land sale located approximately 40 miles southeast of the subject within western Panama City Beach City Limits. The 14. 00 ac residential tract has a 80 unit single family residential subdivision use and sold for $228, 571/ac. The tract has frontage on a 4 lane divided highway. This sale is superior to the subject in location, size and zoning ( no reclassification needed) and inferior in time and intended use. Over all it is considered superior to the subject. 4. An October 2003 residential land sale located approximately 40 miles southeast of the subject within Panama City Beach City Limits. The 79. 05 ac tract is a three contiguous parcel assembled sale. It has a zoning of Mixed Use and an intended use of 180 SFR homes, 40 condominium units and 100, 000 sq ft of commercial space. It sold for 83, 864/ ac. The tract has frontage on a 2 lane and a 4 lane highway. This sale is superior to the subject in location and zoning ( no reclassification needed) and inferior in time, size and wetland ( 9%). Over all it is considered inferior to the subject. The qualitative adjusted sales indicated a range of $83, 864/ ac to $ 228, 57l/ ac. The appraiser felt Sale # 1 was superior to the subject mainly due to smaller size and the high density residential intended use. He felt Sale # 3 was superior to the subject mainly due to the Panama City Beach location and smaller size. Sale # 2, at $ 109, 557 /acre, was slightly superior to the subject mainly 4, at $ 83, 864/ ac, was slightly inferior to the subject mainly due to the due to smaller size. Sale # larger size. After analyzing the four comparable sales and adjusting each for their differences to the subject, the appraiser placed primary consideration on Sales 2 and 4, indicating an adjusted 4, 257, 000.00 respectively. The range of $90, 000 to $ 100, 000 per acre, $ 3, 831, 300. 00 and $ appraiser felt the value range adjusted bracketed the subject, rendering a value conclusion toward the middle of