Okaloosa County BOCC — November 5, 2013 — Presley-McKenney & Assoc. Appraisal of Portion of Parcel 12 at Bob Sikes Industrial Airpark — reading text

ALONG SAID EASTESLY RiGHT-CF—war UNE, FoR & DISTANCE OF 224.95 FEET To THE FONT GF BEGINNING. SA PARCEL CONTANING 6.0027 ACRES. MORE 9% LESS. Future Land Use & Zoning—According to information provided by the Okaloosa County Geographic Information System (GIS), the subject parcel is located in an area having Future Land Use (FLU) of Industrial (I) and zoning of I-2, Airport Industrial Park District, per Okaloosa County. The FLU of Industrial projects “[t]o provide areas for creation, continuation, or expansion of those business enterprises engaged in the production, manufacture, and distribution of goods and products,” as defined on page 2.1.15 of the Okaloosa County Comprehensive Plan. This area is within the Urban Development area boundaries. The Airport Industrial Park District zoning is defined per the Okaloosa County Land Development Code “to provide areas specifically for public airport operations, related facilities, and airport-compatible business and industrial operations, facilities, and activities.” +/-6.9 Acres Vacant Land, Bob Sikes Industrial Park, Crestview, Florida Assessments & Taxes—According to the Okaloosa County Property Appraiser’s office, the subject’s parent property is identified as tax parcel #03-3N- 23-0000-0001-0000 and is assessed at $641,703. This assessment is allocated entirely to the land. Described as having about 163 acres, this assessment equates to about $3,937 per acre. As it is owned by the county, this property has no real estate taxes associated with it. SURVEY VIEW OF SUBJECT lp aq = WV TITS PORTIO® OF \ + , \ ‘ y hb i al \ fin @ a bape ie. AR CEL 2 saot8 Vem | i] ha a " JQ eer one gegus29"4 - sodkietn) | votes uxt me, Rei i te iN \ ES i { | | l | i Ww |¢ 05°20", : | ' Va UL ibes0 t | 1 daa ee H \ { h 8% omy ; ; sveal | ‘ ; i | j i me : somes eer \ ' tobe E> Penaenite i ty ayes ; Ff ji yalalig ! iP aa. ‘ vont Fe OL VBE ou . oe ‘ | 8 hand 58 ‘mo “ i i | VV hAh dy ment oe ES tae, PORT: OF \ 4 ' ni \ PARCEL 12 | h oA ey a , f pier) (VACANT & WOODED) “ | ¥ whe Fe Oo : | ‘ mse «mig "y oan _ lao | ot we A N oa CaN ao ; ‘ ee \\ iererihag A ee ON S| - ; \ yak) Sead o % an ar eri Eo * HOM THER URNS ROMTIOPAWAY UNE 397.1914 SRE waeto70'w — 6a vat) aay, at} TABLE sar T LI ADORA TEAL way HG0" River -OF-waAy) sun Subject Description—Referencing the survey, maps, and photographs herein, the subject property is shown as a mostly regular-shaped parcel of vacant land having frontage along the north and east sides of Adora Teal Way, described by survey as having an area of 6.9027 acres, more or less. The land is downward sloping from west to east, but generally level with road grade. No wetlands, adverse, or hazardous conditions were noted during our inspection of the site or public documents. A title abstract has not been +/-6.9 Acres Vacant Land, Bob Sikes Industrial Park, Crestview, Florida furnished, and we are not aware of any easements, encroachments, or prior reservations applicable to this property. Adora Teal Way is a two-lane, asphalt- paved road. According to FIRM Flood Map #12091C0170H, dated December 6, 2002, the subject property appears to be located within Flood Zone X, an area that is determined to be outside of the 100- and 500-year floodplains. AERIAL PHOTOGRAPH +/-6.9 Acres Vacant Land, Bob Sikes Industrial Park, Crestview, Florida SUBJECT PHOTOGRAPHS View of Subject from Adjacent Parcel to the North View of Subject Southern Boundary +/-6.9 Acres Vacant Land, Bob Sikes Industrial Park, Crestview, Florida SUBJECT PHOTOGRAPHS View of Adora Teal Way, Facing South with Subject to Left View of Adora Teal Way, Facing North from Previous Point +/-6.9 Acres Vacant Land, Bob Sikes Industrial Park, Crestview, Florida SUBJECT PHOTOGRAPHS View of Adora Teal Way, Facing West with Subject to Right +/-6.9 Acres Vacant Land, Bob Sikes Industrial Park, Crestview, Florida Market Discussion—The subject property is a vacant parcel of land within the Bob Sikes Industrial Park and Bob Sikes Airport Area of Influence. This designated industrial-use area provides land for heavy commercial/industrial uses. According to the FLU, uses of the land are to be primarily associated with the needs of the airport. This designation for providing only for the needs of the airport neglects the realty that the airport is not yet large enough for full use of the land around it. It seems that in lieu of future demand growth for airport services, the public oversight of development within this industrial park is receptive to interim industrial uses more attuned to the immediate needs of the greater community. The market area is fairly restricted in size, comprising a radius centered on the airport’s airstrip, as shown in the aerial photograph below. This area has FLU primed for airport service-related industry and/or businesses related to aeronautics. Demand for properties similar to the subject is driven by demand for use of the airfield. Our research shows that the subject market area has many competing properties vacant and available for sale. There are several properties that have been developed with building improvements, but that now sit empty, advertised as being available for lease or purchase. About 65% of land fronting either Adora Teal Way or John Givens Road is vacant. Comparing supply to demand, the subject property is competing in a market saturated with available similar real estate. +/-6.9 Acres Vacant Land, Bob Sikes Industrial Park, Crestview, Florida HIGHEST AND BEST USE: A brief definition of the term “highest and best use” would be: “The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, and financially feasible and that results in the highest value.”3 Implied within this definition is recognition of the contribution of that specific use to community environment or to community development goals in addition to wealth maximization. Also implied is that the determination of highest and best use results from the appraiser’s judgment and analytical skill, i.e., that the use determined represents an opinion, not a fact. The Highest and Best Use is determined using all previous data to test in four criteria, as stated in the definition: (1) legally permitted, (2) physically possible, (3) economically feasible, and (4) maximally productive. Highest and Best Use, As Though Vacant—Given the size of the subject parcel and its location within the Bob Sikes Industrial Park/Airport Area of Influence, a heavy commercial or industrial use, taking advantage of the nearby airstrip for transportation, is considered to be the highest and best use of the property. Highest and Best Use, As Improved—N/A. VALUATION: Land Valuation—From a search of the market, three sales were selected for comparison. A data sheet for each is included in the addendum with a summary as follows: Land Sales Grid Sale Location Sale Date Parcel Size Price/AC 1 Bob Sikes IP, N of Subject 12/2013 +/-12.245 AC $25,316 2 Hwy 90 E, S of Subject 9/2013 +/-16.71 AC $14,351* 3 5692 John Givens Road 12/2012 +/-11.40 AC $17,544** *Because of wetlands, effective buildable area of parcel is approximately 8.71 acres. **Property includes 11,200-SF warehouse and other site improvements with contributing value of about $300,000. $200,000 is allocated to land from total purchase price of $500,000. 3Appraisal Institute, The Appraisal of Real Estate, 12th ed. (Chicago: Appraisal Institute, 2001), 305. +/-6.9 Acres Vacant Land, Bob Sikes Industrial Park, Crestview, Florida Market Analysis: Adjustment Grid for Comparable Sales Subject Sale #1 Sale #2 Sale #3 Sales $/AC $25,316 $14,351 $17,544 Property Fee simple Fee simple Fee simple Fee simple Rights Financing Cash or Equiv. Cash or Equiv. Cash or Equiv. Cash or Equiv. Conditions Arm’s length Arm’s length Arm's length Arm’s length of Sale Buyer None None None None Expend. $25,316 $14,351 $17,544 Market Dec 2013 Dec 2013 Sept 2013 Dec 2012 Conditions $25,316 $14,351 $17,544 Location Adora Teal Way Adora Teal Way Hwy 90 E John Givens Rd $1,435 -$877 Site Size +/-6.9027 +/-12.245 +/-16.71 +/-11.40 AC) (+/-8.71 effective) Shape Regular Regular Regular Regular Vegetation Fully Wooded Clear Fully Wooded 70% Wooded -$4,900 -$1,470 Topo- Slight sloping Slight sloping Sloping Sloping graphy +$718 +$877 Total -$4,900 $717 -$1,470 Adjust. Adj. $/SF $20,416 $13,634 $16,074 The sales represent transactions completed within the last year involving properties within the Bob Sikes Airport Area of Influence. The first two comparable properties involve vacant land while the third sale involves an improved property, but with fairly simple allocation between improvements and land for the sale price. Sale One involves the parcel of land that adjoins the subject property to the north. This sale is contracted to close in December and represent the most recent transaction available. The difference between the subject and this adjacent parcel is that the subject is fully wooded while the comparable +/-6.9 Acres Vacant Land, Bob Sikes Industrial Park, Crestview, Florida is completely cleared. It is our understanding that several quotes have been obtained to clear the subject property and that these quotes are $4,400/AC, $4,800/AC, and $5,500/AC. At first glance these quotes seem higher than would be typical for clearing acreage, but an important consideration is that with the proximity to the airstrip the vegetation cannot be burned on-site and instead must be removed from the subject site for disposal, creating the additional cost. Comparable Two is the September sale of 16.71 acres of land located along the south side of U.S. Highway 90, or James Lee Boulevard, almost directly across from the intersection of Fairchild Road with U.S. Highway 90. From a conversation with the seller’s agent involved with the sale, we are aware that the property includes about eight acres that are considered unbuildable, leaving about 8.71 acres of effective land area. A portion of the property is crossed by a stream and other parts have significant sloping. According to the agent for the sale, the property had been listed for well over three years by the seller, Coastal Bank & Trust of Florida, and the sale represents an arm’s length transaction. With good exposure along well- trafficked James Lee Boulevard/US Hwy 90, this property is considered to be superior to the subject for location. A small adjustment is made to account for the subject’s slightly superior topography. Sale Three involves a property located on John Givens Road purchased last December for $500,000. This property includes 11.4 acres of land with an 11,200-square foot storage warehouse and site improvements. Based on an analysis of the warehouse with Marshall Valuation Service, a replacement cost of $37.20 per square foot is estimated, resulting in $416,640 for the building, as new. With the building being 14 years old and an economic life (new) estimated as 40 years, depreciation is at 35%, or $145,824. The resulting estimate of replacement cost of the warehouse is $270,816, rounded to $271,000. With consideration to the other site improvements that include gravel, some pavement, fencing, and a gate, the estimated contributing value of the improvements to the property is about $300,000. With the sale transacting at $500,000, deducting $300,000 for the improvements, $200,000 is allocated as the value of the land. Given 11.4 acres, this translates to $17,544 per acre. This property is slightly superior to the subject for location along John Givens Road. It is also partially cleared. Finally, the subject is slightly superior for topography. +/-6.9 Acres Vacant Land, Bob Sikes Industrial Park, Crestview, Florida Following adjustments, the comparables show a range from $13,634 to $20,416 per acre for the subject. With most weight to the two land-only transactions, it is our opinion that the