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

the range. 42. 57 Acres X $90, 000 per acre = $ 3, 831, 300. 00 42. 57 Acres X $100, 000 per acre = $ 4,257, 000. 00 Indicated value by sales Comparison Approach = $ 4, 000, 000. 00 Final Lump Sum Value = $ 4, 000,000.00 The per acre value of$ 93, 963. 00 will apply to a subject acreage of38 to 47 acres. Allocation of Value Phase/ Tract 1 @ 22. 82 Acres of Backland = $ 1, 000,000. 00 Phase/ Tract 2 @ 12.43 Acres of Highway Frontage = $ 750, 000. 00 1, 6 Forest Supervisor, NFs in FL Appraisal Review, Okaloosa Jlty Fair Grounds and Ball Park Tracts A- 943 & A- 944 Phase/ Tract 3 @ 7. 32 Acres of Highway Frontage = $ 1.250. 000.00 Total Value of 42. 57 Acres = $ 4, 000, 000. 00 The three tract value differences were based mainly on the effect of highway frontage and size. COMMENTS The assignment is to estimate the lump sum and per acre value of a 42. 57 acre residential/commercial use vacant tract that is composed of two contiguous parcels. The assignment also includes estimating the component values of a three phase sale of the subject property over a three year period. The subject tract is located in Okaloosa County, Florida in a market of rising demand for residential and commercial tracts. The mixed use subject tract is relatively large and has extensive frontage on a 4 lane divided highway. The appraiser has done a good job of analyzing the subject for its Highest and Best Use and larger parcel detennination. He has made an exhaustive search in the subject market for comparable sales within the subject's market area, but found few large size comparable sales. The overall level of sale analysis and adjustment was sufficient for the appraisal assignment. The report complies with the Uniform Appraisal Standards for Federal Land Acquisitions and the Uniform Standards ofProfessional Appraisal Practice and adequately supports the estimate of value. The term " fee simple estate" on page 28 should be deleted. The estimated lump sum value of $4, 000, 000. 00, $ 93, 963. 00 per acre, for the 42. 57 acre Okaloosa County Tract A- 943/ A-944 is recommended for approved. 7 Forest Supervisor, NFs in FI Appraisal Review, Okaloosa llty Fair Grounds and Ball Park Tracts A-943 & A- 944 REVIEWER' S ASSUMPTIONS AND LIMITING CONDITIONS I. The Appraisal Review Memorandum attached is based on infonnation and data contained in the appraisal report, which is the subject of the review. Data and infonnation from other sources may be considered. If so, they are identified and noted as such. It is assumed that such data and infonnation are factual and accurate. 2. The REVIEWER reserves the right to consider any new or additional data or infonnation, which may subsequently become available. 3. Unless otherwise stated, all assumptions and limiting conditions in the appraisal report, which is the subject of this appraisal review, are also conditions of this review. 4. As the REVIEWER, I reserve the right to request the appraiser to re- examine the appraisal of the subject property in the event the estate appraised in this appraisal report differs from the estate description in any subsequent option or proposed deed of conveyance. REVIEWER' S CERTIFICA nON I, the undersigned, certify that to the best of my knowledge and belief; 1. The statements of facts contained in the review process are true and correct; 2. The reported analysis, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report, and are my personal, unbiased professional analysis, opinions, and conclusions; 3. I have no present or prospective interest in the property that is the subject of this review report and no personal interest or bias with respect to the parties involved; 4. The compensation received by me for the review is not contingent on the analysis, opinions, or conclusions reached or reported; 5. The appraisal review was made and the review report prepared in conformity with the Unifonn Appraisal Standards for Federal Land Acquisitions; 6. The appraisal review was made and the review report prepared in conformity with the Appraisal Foundation' s Unifonn Standards of Professional Appraisal Practice, except to the extent that the Unifonn Appraisal Standards for F ederalland Acquisitions required invocation of USP AP' s Jurisdictional Exception Rule, as described in Section D- 1 of the Unifonn Appraisal Standards for Federal Land Acquisitions; 6. The review appraiser has made a personal inspection of the property that was the subject of the appraisal report but not the comparable sales cited in the appraisal report. 7. No one provided significant professional assistance to the review appraiser. ( If professional assistance was provided to the review appraiser, the name of the individual( s) providing such assistance must be stated. This requirement includes both professional appraisal review assistance and providers of subsidiary assistance, e. g, planning or permitting consultants, engineers, cost estimators, timber experts, mineral experts.) IS/ George D. Gleim December 27, 2004 George D. Gleim Date Qualified Review Appraiser STATE- CERT. GEN. APPR. RZ- OOOI049 8  United States Forest North 4400 Unicoi Drive @) Department of Agriculture Service Zone Lands P. O. Box 7 Unicoi, TN 37692 423/735- 1500 File Code: 5410/ 5420 Date: February 15, 2005 Route To: Subject: United States of America Tracts 943 and 944 ( 42. 57 acres, more or less) Okaloosa County, FL To: Forest Supervisor, National Forests in Florida Jonathan P. Brown, MAl, Florida Certified General Real Property Appraiser with Boutin Brown Realty Advisors, Inc., of Tallahassee, Florida; prepared the appraisal report for the above case under a contract with the U. S. Forest Service. The purpose ofthe appraisal is to estimate the market value of the real property herein described. The estimate of market value will be used by the U.S. Forest Service in disposal of the subject property via the Florida National Forest Land Management Act of2003. The client is the U.S. Forest Service. The intended user of the appraisal report is the U.S. Forest Service. The date of value is November 28, 2005 and the date of the report is December 7, 2004. George D. Gleim, Forest Service Qualified Review Appraiser ( QRA), prepared the formal appraisal review recommending the approval of the appraisal report for Agency use. The client in this review process is the U. S. Forest Service. The review report is intended for the sole use of the U. S. Forest Service. Use of this review report by others, for any purpose, is not intended. The purpose of this review is: to develop an opinion as to the completeness of the material under review, given the scope of the work applicable in the assignment; to develop an opinion as to the adequacy and relevance of the data and the propriety of any adjustment to the data, given the scope of the work applicable in the assignment; to develop an opinion as to the appropriateness of the appraisal methods and techniques used, given the scope of the work applicable in the assignment, and develop the reasons for any disagreements; and to develop an opinion as to the reasonableness and appropriateness of the analyses, opinions, and conclusions, given the scope of work applicable in the assignment, and develop the reasons for any disagreement. I have examined the appraisal report to insure that the appraisal methods and techniques used by the appraiser comply with the Uniform Standards ofProfessional Appraisal Practice, the Uniform Appraisal Standards for Federal Land Acquisitions, and applicable Agency specifications. m Caring for the Land and Serving People Printed on Recycled Paper '-, I'!!! Forest Supervisor, NFs in FL United States of America Tracts 943 and 944 ( 42, 57 acres, more or less) Okaloosa County, FL It is within the scope of my assignment to act on behalf of the client to interact with the appraiser to ensure that any deficiency is appropriately corrected by the appraiser, and if necessary, to make corrections to cure a deficiency, expressing the result as my own opinion of value, developed within the same scope of work as was applicable in the original assignment. This review does not set forth an independent opinion of value. I received the appraisal report along with Gleim' s initial review on December 14, 2004. After reading the I contacted George to discuss the report. The majority of my comments were report, minor in nature dealing with terminology and reporting requirements of the Uniform Appraisal Standards for Federal Land Acquisitions and the Uniform Standards ofProfessional Appraisal Practice. The weakness with the report was the allocation section. This section of the report lacked sufficient documentation to allow the reader to follow the appraiser' s logic and reasoning. There were no mathematical errors noted in the report. The report, along with Gleim' s review and my comments were returned to the appraiser on December 20, 2004. The report was revised and re- submitted for review. On December 27, 2004, Gleim submitted his review recommending the appraisal be approved for Agency use. It should be noted that George Gleim retired from Federal service on January 3, 2005. On January 26, 2005, afterreading the revised report and Gleim' s review, I returned the report to the failed to appraiser for additional revisions. It appeared that the appraiser had overlooked and/ or address several items that were documented in the initial review. The report was re- submitted for review on February 9, 2005. the Having read the report again, I contacted the appraiser on February 14, 2005 to discuss for the weakness is report. The allocation section of the report is still weak. The primary reason the lack of market data in the subject' s market area. The appraiser was forced to rely on market data that he had on file from areas throughout the Florida panhandle. It should be noted that the allocation process is not an appraisal of the three phases ( parcels) but an allocation of the appraised value to the three phases. Given the information, it is my