Okaloosa County BOCC — April 15, 2014 — Foy Shaw Road Project SJPA_Sig Resolution_Appraisals_Land Purchase Agreement Letter — reading text

surveyor. This appraisal assumes no encroachment or easements that would adversely affect the value of the subject property. The appraisers were provided with a recent boundary survey by the client. A copy of the survey is included in the addenda. Ingress/Egress: Access to the subject parent tract is via Ford Street, an 8' wide gravel/dirt road. Flood Risk: [ FEMA Map Panel | Map Area Dated | Flood Zone 120173 0170H | Okaloosa County Dec. 6, 2002 “XK” & “A” “A 100-year flood is a flood that has a 1-percent chance of being equaled or exceeded in any given year. A base flood may also be referred to as a 100-year storm and the area inundated during the base flood is sometimes called the 100-year flood plain. From the FEMA Web Site: The term "100-year flood" is misleading. It is not the flood that will occur once every 100 years. Rather, it is the flood elevation that has a 1- percent chance of being equaled or exceeded each year. Thus, the 100-year flood could occur more than once ina relatively short period of time. The 100-year flood, which is the standard used by most Federal and state agencies, is used by the National Flood Insurance Program (NFIP) as the standard for flood plain management and to determine the need for flood insurance. A structure located within a special flood hazard area shown on an NFIP map has a 26 percent chance of suffering flood damage during the term of a 30-year mortgage. 8 Soil Conservation Service, United States Department of Agriculture, Soil Survey of Okaloosa County, Florida. Page 12 3.07 + Acres, - Industrial Land, Foy Shaw Road Project Crestview, Okaloosa County, FL H&A 140023 Site Improvements: Improvements: Zoning and Concurrency: Assessed Value and Ad Valorem Zones B, C, and X are the flood insurance rate zones that correspond to areas outside the 100-year flood plains, areas of 100-year sheet flow flooding where average depths are less than | foot, areas of 100-year stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 100-year flood by levees. No BFEs or depths are shown within this zone.” The unshaded Zone “X” on the map applicable to the subject is further identified as “Areas determined to be outside the 500-year flood plain.” Zone VE is the flood insurance rate zone that corresponds to the 100-year coastal flood plains that have additional hazards associated with storm waves. BFEs derived from the detailed hydraulic analyses are shown at selected intervals within this zone. Mandatory flood insurance purchase requirements apply. Zones AE and A1-A30 are the flood insurance rate zones that correspond to the 100-year flood plains that are determined in the Flood Insurance Study by detailed methods. In most instances, Base Flood Elevations derived from the detailed hydraulic analyses are shown at selected intervals within this zone. Mandatory flood insurance purchase requirements apply. COBRA - Coastal Barrier Resource Act. No Federally funded flood insurance in places marked \\\\\\\\\ on flood maps.” 8' wide private dirt drive, electric (overhead), septic, 2-frame sheds. The existing structures are outside the take area and given no consideration in the final analysis. 2-mobile homes. The existing structures are outside the take area and given no consideration in the final analysis. The subject parent tract zoning is (J-2) Industrial and future land use is designated as Industrial (I) by Okaloosa County. These areas are devoted exclusively to industrial development, allowing a mix of heavy and light industry, storage, distribution and other industrial activities. The parent tract is within the Bob Sikes Airport ‘Area of Influence’ with corresponding construction standards for structure reinforcement and noise abatement. Okaloosa County planning staff indicated the current mobile homes are a legal non-conforming use. Subsequent development would be subject to industrial zoning criteria. Copies of the Okaloosa County tax records are included in the addenda, taxes are due. The assessment and taxes woes are typical of the area and have no significant efiect on market value. History: The appraisers are not aware of any additional transfers, sale or marketing activity on the subject within the past three years. Current Use: The subject parent tract is currently an improved residential homestead. Adjacent Use: Adjacent and nearby uses include vacant industrial land and residential properties. Demographic and Economic Analysis The City of Crestview, Florida demographic and economic analysis is included in the addenda of this report. Note that Crestview is the county seat of Okaloosa County. It is also a bedroom community for the Eglin AFB complex, assigned units and supporting civilian personnel. The area has experienced rapid growth in recent years with the reassignment of the Army 7" Special Forces Group to a new facility a short distance south of the Shoal River. 3.07 + Acres, - Industrial Land, Foy Shaw Road Project Page 13 Crestview, Okaloosa County, FL H&A 140023 EIGHEST AND BEST USE "As Vacant” - PRIOR TO ‘TAKING’ Discussion The highest and best use recognizes the most probable use for the property ‘as vacant’ prior to eminent domain taking given the current market for industrial property and recent development activity in the market area. Legally Permissible: The subject property’s current zoning is Industrial (I-2) per Okaloosa County. Use of the subject property fer industrial development is legally permitted. Physically Possible: The subject property is sloping, moderately drained, and at or near road grade. Soil and subsoil conditions nearby appear compatible with industrial development. All infrastructure and utilities needed for industrial use are presently at the site. The size and dimensions of the site are sufficient to allow a wide variety of legally permissible uses. The shape of the site is rectangular which does not limit utility. Transportation of construction materials or labor to the site is estimated to be relatively simple due to the central location of the site within the overall market. Access to the site is average. Therefore, all of the legal uses are physically possible to some extent. Financially Feasible: | Demand for industrial properties is market driven and is influenced by surrounding land uses. We anticipate that the most probable use of the site would be industrial development (light industrial manufacturing, storage or distribution type uses) due to its location in close proximity to Bob Sikes Airport. Development of the site with light industrial type use which is complimentary to the surrounding land uses would represent the most likely financially feasible option. However, the current market conditions and development activity indicate that development of the site would not be economically feasible at this time. This is evidenced by a large supply of active listings, an increase in expired listings, lack of new construction and continued downward listing price adjustments. Therefore, speculative investment for commercial/industrial development is considered to be a financially feasible use. Maximally Productive Analysis of surrounding properties, historical sales of other similar tracts indicate industrial use would be the maximally productive use of the site. However, the use which results in the maximum profitability of the site is beyond the scope of this assignment. The owner/investor/user as the recipients of the property’s productivity greatly determines what the use should be. The use determination for the subject should conform to the neighborhood trends and be consistent with existing iand uses. Speculative investment for future commercial/industrial development is considered to be a financially feasible use. CONCLUSION OF HIGHEST AND BEST USE, “As Vacant” - PRIOR TO ‘TAKING’ Speculative investment for future industrial development is considered to be the highest and best use “As Vacant” as this use provides a higher return to the underlying land than any other use analyzed. 3.07 + Acres, - Industrial Land, Foy Shaw Road Project Page 14 Crestview, Okaicosa County, FL H&A 140023 HIGHEST AND BEST USE “As Vacant" - AFTER ‘TAKING’ Discussion The highest and best use recognizes the most probable use for the property ‘As Vacant’ after eminent domain taking given the current market for industrial property and recent development activity in the market area. Legally Permaissible: The subject property’s current zoning is Industrial (1-2) per Okaloosa County. Use of the subject property for industrial development is legally permitted. Physically Possible: The subject property is sloping, moderately drained, and at or near road grade. Soil and subsoil conditions nearby appear compatible with industrial development. All infrastructure and utilities needed for industrial use are presently at the site. The size and dimensions of the site are sufficient to allow a wide variety of legally permissible uses. The shape of the site is rectangular which does not limit utility. Transportation of construction materials or labor to the site is estimated to be relatively simple due to the central location of the site within the overall market. Access to the site is average. Therefore, alll of the legal uses are physically possible to some extent. Financially Feasible: | Demand for industrial properties is market driven and is influenced by surrounding land uses. We anticipate that the most probable use of the site would be industrial development (light industrial manufacturing, storage or distribution type uses) due to its location in close proximity to Bob Sikes Airport. Development of the site with light industrial type use which is complimentary to the surrounding land uses would represent the most likely financially feasible option. However, the current market conditions and development activity indicate that development of the site would not be economically feasible at this time. This is evidenced by a large supply of active listings, an increase in expired listings, lack of new construction and continued downward listing price adjustments. Therefore, speculative investment for commercial/industrial development is considered to be a financially feasible tase. Maximally Productive Analysis of surrounding properties, historical sales of other similar tracts indicate industrial use would be the maximally productive use of the site, even after the domain taking. However, the use which results in the maximum profitability of the site is beyond the scope of this assignment. The owner/investor/user as the recipients of the property’s productivity greatly determines what the use should be. The use determination for the subject should conform to the neighborhood trends and be consistent with existing land uses. Speculative investment for future commercial/industrial development is considered to be a financially feasible use. CONCLUSION OF HIGHEST AND BEST USE, “As Vacant” - AFTER ‘TAKING’ Speculative investment for future industrial development is considered to be the highest and best use “As Vacant” as this use provides a higher return to the underlying land than any other use analyzed. 3.07 + Acres, - Industrial Land, Foy Shaw Road Project Page 15 Crestview, Okaloosa County, FL H&A 140023 SUMMARY OF ANALYSIS AND VALUATION Land valuation via Sales Comparison Analysis involves direct comparisons of the subject property to similar properties that have sold in the marketplace to derive 4 comparative value indication for the subject property “as though vacant”, as of the effective date of value. This approach is also called the "direct sales comparison approach", or the "market approach", and tends to be the most reliable approach for estimating the value of vacant land or sites available for development. Other methods of estimating the vaiue of land are available. Allocation,