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HomeMy WebLinkAbout7 Euer Valley Parcels Agenda Item # Public ► ric Memorandum To: Board of Directors From: Peter Holzmeister Date: April 10, 2007 Subject: Appraisal of Euer Valley Road parcels Why this matter is before the Board: This matter ves value orempl le two Euer the 'Valley of a real estate appraiser to help us establish a fair Road parcels History: The history for this item was set forth in the preceding agenda item. I will not repeat it here. New Information: We have received a proposal from Johnson-Perkins & Associates, Inc, a real estate appraisal firm that has worked proposal for the deDistrit in the past. Attached is a scribfng the service they would brochure describing the firm and a letter p p provide and the fee they would require. As already stated, this firm has worked for us before and their appraisal reports have been detailed and thorough. Recommendation: I recommend that the BoPa cels'1 and 3 for a fetesnottosexceed ociates to appraise the Euer Valley Road Resultant $8,000 as set forth in their letter proposal dated April 3, 2007. JOHNSON�PERKINS & A�s�..CIATES, INC. ___ REAL ESTATE APPRAISERS & CONSULTANT S Main Office:295 Holcomb Avenue,Suite 1 ■Reno,Nevada 89502■Telephone (775) 322-1155 Lake Tahoe Office: P.O.Box t 1430■Zephyr Cove,Nevada 89448•Telephone (775) 588-4787 FAX:Main Office (775) 322-1156■Lake Tahoe Office (775) 588-8295 E-mail:jpareno0 johnsonperkins.com■jpatehoe(fujohnsonperkins.com Cindy Lund Fogel,M,yl Stephen R.Johnson,MAC,SREA Scott Q.Griffin,MAI Reese Perkins,MAI,SRA Daniel B.Oaks,MAI Cynthia Johnson,SRA Karen K.Sanders Denise Jahn Principal Appraiser Emeritus Gilbert G.Wright,Ph.D.,MAI April 3, 2007 Ms. Kathy Neus Truckee Donner Public Utility District 11570 Donner Pass Road P.O. Box 309 Truckee, California 96160 RE: Two Vacant Parcels Along Euer Valley Road in Truckee,Nevada County, California Dear Ms. Neus: This letter is in response to your request for a fee proposal regarding the preparation of a summary appraisal report in connection with two vacant parcels along Euer Valley Road in Truckee,Nevada, California. These parcels are adjacent to the Truckee Donner Public Utility District corporation yard site. These parcels are also owned by the Truckee Donner Public Utility District. It is our understanding that a Boundary Line Adjustment has recently been completed on the two subject properties and the corporate yard parcel, creating three new parcels, which do not yet have Assessor's Parcel Numbers. One of the vacant parcels has industrial zoning, the other has residential zoning. As we understand, the intended use of this appraisal is for your internal purposes as the TDPUD is considering selling the two vacant parcels. The purpose of the appraisal is to estimate the Market Value of the fee simple interest in the two vacant parcels. The intended users of the report are representatives of the TDPUD. Reno■Lake Tahoe 0 1:I ISON~ ETiKINS 'SL /VSG_CIA.T- RFAL ESTATE APPRAISFRS S: CON SULTANTS Page 2 This appraisal report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice. Our fee will be based upon the actual time and expenses incurred to conduct this assignment. Due to the differences in the two properties,we would likely complete two separate appraisals. Based upon a review of the scope of the assignment, our maximum fee will not exceed$4,000 per property, for a total of$8,000. Our invoice for services is due and payable upon receipt of the appraisal report. It should be noted that this fee addresses the cost of preparing the appraisal report only, and does not include allowance for extensive client meetings, meetings with consultants, and meetings with attorneys. The billing for any additional services will also be based upon the actual time and expenses incurred. Our standard non-litigation rates are $200 per hour for principal appraisers and $100 to $125 per hour for associate and senior appraisers. Our firm maintains a strict time accounting system in which each appraiser logs the actual time required and the tasks accomplished. These time slips are maintained by our business manager and are available for your inspection upon request. The ultimate billing will not exceed the parameters set out above without receiving your prior authorization. For any litigation related services, you will be billed at our then prevailing litigation rates. At the present time, our litigation rates are $250 per hour for principal appraisers and between$125 to $175 per hour for the associate and senior appraisers. The appraisal fee set forth above does not include provisions for additional professional services which may be required to complete the appraisal, such as engineering consultants, land planners,building contractors, or others. If additional supporting Reno 0 Lake Tahoe ER1Z1i�1SA SSCCIAT LS. INCo R EAL EST ATE A PPRAI SER S & CON S U LTA NTS Page 3 professional services are required, these costs will be billed in addition to the above appraisal fee. Prior to incurring such expense, your review and authorization will be requested. Based upon a review of our current work schedule and the scope of the proposed assignment, we propose to deliver the appraisal report within 45 to 60 days of your acceptance of this proposal and your authorization to proceed with the assignment. Unexpected delays over which these appraisers have no control may also affect the delivery date. This firm will require the client to provide all information and documentation which he or she may have relative to previous purchases, listings, or offers involving the subject property. Our firm will also require copies of any engineering studies, environmental assessments, or other material information that could affect the value of the subject property. We also request a copy of the Boundary Line Adjustment map, new parcel map and any other supporting documentation. All appraisal services provided by this firm will be developed and prepared in conformity with, and subject to, the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute as well as the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Foundation. Enclosed is a copy of our Standard Assumptions and Limiting Conditions for your review. These Standard Assumptions and Limiting Conditions will be made a part of your appraisal. The acceptance of the proposal indicates your acceptance and concurrence with the Standard Assumptions and Limiting Conditions under which your assignment will be prepared. The appraisal fee and estimated completion date as set forth herein is valid for ten calendar days from the date of this engagement letter. After this time period, our firm can no Reno 0 Lake Tahoe ch-!-aSGN- Et XII"IS SSGCIAT S, t �C — w _ R E. A L F S T A T F APPRAISERS S CONSULTANTS Page 4 longer guarantee the amount of the fee nor the anticipated delivery date. Should the above meet with your approval,please signify by signing, dating and returning one copy of this proposal to us. We appreciate being considered for this assignment. If you have any additional questions,please contact us. Respectfully submitted, 5 Stephen R. Johnson, MAT;SREA California Certified General Appraiser License#AG007& 8 Karen K. Sanders Nevada Certified General Appraiser License# A.0004704-CG ACKNOWLEDGED AND ACCEPTED: Name Title Date Enclosures Reno!Lake Tahoe — �OHNSON-PERKINS & ASSOCIATES, INC. I: LAi. F S T A T F APrI: AISFRti & C 0 N � ULTANTS STANDARD ASSUMPTIONS AND LIMITING CONDITIONS i The acceptance of this appraisal assignment and the completion of the appraisal report submitted herewith are contingent upon the following assumptions and limiting conditions. LIMITS OF LIABILITY The liability of Johnson-Perkins&Associates,Inc. and its employees and associates is limited to the client only and to the fee actually received by the appraisal firm. There is no accountability,obligation,or liability to any third party. If the appraisal report is disseminated to anyone other than the client,the client shall make such party or parties aware of all limiting conditions and assumptions affecting the appraisal assignment. Neither the appraisers nor the �I appraisal firm is in any way to be responsible for any costs incurred to discover or correct any physical,financial and/or legal deficiencies of any type present in the subject property. In the case of limited partnerships or syndication offerings or stock offerings in real estate,the client agrees that in the event of a law suit brought by a lender,a partner or part owner in any form of ownership, a tenant or any other party,the client will hold the appraiser(s)and the appraisal firm completely harmless in such action with respect to any and all awards or settlements of any type in such law suits. COPIES,PUBLICATION,DISTRIBUTION AND USE OF REPORT Possession of this report or any copy thereof does not carry with it the right of publication, nor may it be used for any purpose or any function other than its intended use,as stated in the body of the report. The appraisal fee represents compensation only for the analytical services provided by the appraiser(s). The appraisal report remains the property of the appraisal firm, though it may be used by the client in accord with these assumptions and limiting conditions. The Bylaws and Regulations of the Appraisal Institute require each Member and Candidate to control the use and distribution of each appraisal report signed by such Member or Candidate. Except as hereinafter provided,the client may distribute copies of this appraisal report in its entirety to such third parties as he may select. However,selected portions of this appraisal report shall not be given to third parties without the prior written consent of those signing the appraisal report. Neither all nor any part of this appraisal report shall be g g disseminated to the general public by use of advertising media,public relations media,news media, sales media,or other media for public communication without the prior written consent of the appraisal firm. This appraisal is to be used only in its entirety,and no part is to be used without the whole report. j All conclusions and opinions concerning the analysis as set forth in the report were prepared by the appraiser(s)whose signature(s)appears on the appraisal report,unless it is indicated that one or more of the appraisers was acting as 'Review Appraiser." No change of any item in the report shall be made by anyone other than the appraiser(s). The appraiser(s)and the appraisal firm shall bear no responsibility for any such unauthorized changes. i Reno m Lnkr - �OHNSON-PERKINS & ASSOCIATES, INC. RhA L ESTATE APPRAISERS CONti JLTA NI CONFIDENTIALITY Except as provided for subsequently,neither the appraiser(s)nor the appraisal firm may divulge the analyses,opinions or conclusions developed in the appraisal report,nor may they give a copy of the report to anyone other than the client or his designee as specified in writing. However,this condition does not apply to any requests made by the Appraisal Institute for purposes of confidential ethics enforcement. Also,this condition does not apply to any order or request issued by a court of law or any other body with the power of subpoena. INFORMATION SUPPLIED BY OTHERS Information(including projections of income and expenses)provided by informed local sources,such as government agencies,financial institutions,Realtors,buyers,sellers,property owners,bookkeepers, accountants,attorneys,and others is assumed to be true,correct and reliable. No responsibility for the accuracy of such information is assumed by the appraiser. Neither the appraiser(s)nor the appraisal firm is liable for any information or the work product provided by subcontractors. The client and others utilizing the appraisal report are advised that some of the individuals associated with Johnson-Perkins&Associates,Inc. are independent contractors and may sign the appraisal report in that capacity. The comparable data relied upon in this report has been confirmed with one or more parties familiar with the transaction or from affidavit or other sources thought reasonable. To the best of our judgment and knowledge,all such information is considered appropriate for inclusion. In some instances,an impractical and uneconomic expenditure of time would be required in attempting to furnish absolutely unimpeachable verification. The value conclusions set forth in the appraisal report are subject to the accuracy of said data. It is suggested that the client consider independent verification as a prerequisite to any transaction involving a sale, a lease or any other commitment of funds with respect to the subject property. TESTIMONY,CONSULTATION,COMPLETION OF CONTRACT FOR APPRAISAL SERVICE The contract for each appraisal,consultation or analytical service is fulfilled and the total fee is payable upon completion of the report. The appraisers(s)or those assisting in the preparation of the report will not be asked or required to give testimony in court or in any other hearing as a result of having prepared the appraisal,either in full or in part,except under separate and special arrangements at an additional fee. If testimony or a deposition is required because of any subpoena,the client shall be responsible for any additional time, fees and charges,regardless of the issuing party. Neither the appraiser(s)nor those assisting in the preparation of the report is required to engage in post-appraisal consultation with the client or other third parties,except under a separate and special arrangement and at an additional fee. I EXHIBITS AND PHYSICAL DESCRIPTIONS It is assumed that the improvements and the utilization of the land are within the boundaries of the property lines of the property described in the report and that there is no encroachment or trespass unless noted otherwise within the report. No survey of the property has been made by the appraiser(s) and no responsibility is assumed in connection with such matters. Any maps,plats,or drawings reproduced and included in the report are there to assist the reader in visualizing the property and are not necessarily drawn to scale. The reliability of the information contained on any such map or drawing is assumed accurate by the appraiser and is not guaranteed to be correct. I i I Rrno 0 Lake Tahuc JOHNSON~PERKINS & ASSOCIATES, INC. REAL ESTATI- A P P R AISV1, S C0NSI- LTANTS TITLE,LEGAL DESCRIPTIONS,AND OTHER LEGAL MATTERS F No responsibility is assumed by the appraiser(s)or the appraisal firm for matters legal in character or nature. No opinion is rendered as to the status of title to any property. The title is presumed to be good and merchantable. The property is appraised as if free and clear,unless otherwise stated in the appraisal report. The legal description,as furnished by the client,his designee or as derived by the appraiser(s),is assumed to be correct as reported. The appraisal is not to be construed as giving advice concerning liens,title status,or legal marketability of the subject property. ENGINEERING,STRUCTURAL,MECHANICAL,ARCHITECTURAL CONDITIONS This appraisal should not be construed as a report on the physical items that are a part of any property described in the appraisal report. Although the appraisal may contain information about these physical items(including their adequacy and/or condition),it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed report on these physical items. The appraiser(s)is not a construction, engineering,or architectural expert,and any opinion given on these matters in this report should be considered tentative in nature and is subject to modification upon receipt of additional information from appropriate experts. The client is advised to seek appropriate expert opinion before committing any funds to the property described in the appraisal report. Any statement in the appraisal regarding the observed condition of the foundation,roof, exterior walls, interior walls,floors,heating system,plumbing,insulation,electrical service, all mechanicals, and all matters relating to construction is based on a casual inspection only. Unless otherwise noted in the appraisal report,no detailed inspection was made. For instance, the appraiser is not an expert on heating systems,and no attempt was made to inspect the interior of the furnace. The structures were not investigated for building code violations,and it is assumed that all buildings meet the applicable building code requirements unless stated otherwise in the report. Such items as conditions behind walls, above ceilings,behind locked doors,under the floor,or under the ground are not exposed to casual view and,therefore,were not inspected,unless specifically so stated in the appraisal. The existence of insulation,if any is mentioned,was discovered through conversations with others and/or circumstantial evidence. Since it is not exposed to view,the accuracy i of any statements regarding insulation cannot be guaranteed. i Because no detailed inspection was made,and because such knowledge goes beyond the scope of this appraisal, any comments on observed conditions given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically,no guarantee is given as to the adequacy or condition of the foundation,roof,exterior walls,interior walls,floors,heating systems,air conditioning systems,plumbing,electrical service, insulation,or any other detailed construction matters. If any interested party is concerned about the existence,condition,or adequacy of any particular item,we would strongly suggest that a mechanical and/or structural inspection be made by a qualified and licensed contractor, a civil or structural engineer, an architect or other experts. This appraisal report is based on the assumption that there are no hidden,unapparent or apparent conditions on the property site or improvements which would materially alter the value as reported. No responsibility is assumed for any such conditions or for any expertise or engineering to discover them. All mechanical components are assumed to be in operable condition and standard for the properties of the subject type. Conditions of heating,cooling,ventilating,electrical and plumbing equipment are considered to be commensurate with the condition of the balance of the improvements unless otherwise stated. No judgment is made in f the appraisal as to the adequacy of insulation,the type of insulation,or the energy efficiency of the improvements or equipment which is assumed to be standard for the subject's age, type and condition. Rrno 0 L e Tihoc JOHNSON-PERKINS & AssocIATES, INC. _R GA L ESTATE A 1, PA A 1 SER> CON ' IU L1' ANT :� TOXIC MATERIALS AND HAZARDS Unless otherwise stated in the appraisal report,no attempt has been made to identify or report any toxic materials and/or conditions such as asbestos,urea-formaldehyde foam insulation,or soils or ground water contamination on any land or improvements described in the appraisal report. Before committing funds to any property,it is strongly advised that appropriate experts be employed to inspect both land and improvements for the existence of such toxic materials and/or conditions. If any toxic materials and/or conditions are present on the property,the value of the property may be adversely affected and a re-appraisal at an additional cost may be necessary to estimate the effects of such circumstances. SOILS,SUB-SOILS,AND POTENTIAL HAZARDS It is assumed that there are no hidden or unapparent conditions of the soils or sub-soil which would render the subject property more or less valuable than reported in the appraisal. No engineering or percolation tests were made and no liability is assumed for soil conditions. Unless otherwise noted,sub-surface rights(mineral and oil)were not considered in making this appraisal. Unless otherwise noted,the land and the soil in the area being appraised appeared to be firm,but no investigation has been made to determine whether or not any detrimental sub- soil conditions exist. Neither the appraiser(s)nor the appraisal firm is liable for any problems arising from soil conditions. These appraisers strongly advise that,before any funds are committed to a property,the advice of appropriate experts be sought. i If the appraiser(s)has not been supplied with a termite inspection report, survey or occupancy permit,no responsibility is assumed and no representation is made for any costs associated with obtaining same or for any deficiencies discovered before or after they are obtained. Neither the appraiser(s)nor the appraisal firm assumes responsibility for any costs or for any consequences arising from the need or lack of need for flood hazard insurance. An Agent for the Federal Flood Insurance Program should be contacted to determine the actual need for flood hazard insurance. I LEGALITY OF USE This appraisal report assumes that there is full compliance with all applicable federal,state and local environmental regulations and laws,unless non-compliance is stated,defined and considered in the appraisal report. It is assumed that all applicable zoning and use regulations and restrictions have been complied with,unless a non-conformity has been stated,defined and considered in the appraisal report. It is assumed that all required licenses,consents,or other legislative or administrative authority from any I local,state or national government,private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. COMPONENT VALUES 'I If the total property value set forth in this report is distributed between land and improvements, this distribution applied only under the existing program of utilization as set i forth in the appraisal. The separate valuations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. P.eru�■Like TAI-we - OHNSON-PERKINS & ASSOCLXTES, INC. J R EA I, 1. STATE A P P R A t NSULI- ANTS � — I AUXILIARY AND RELATED STUDIES No environmental or impact studies, special market studies or analyses,special highest and best use studies or feasibility studies have been requested or made by the appraiser(s)unless otherwise specified in an agreement for services and so stated in the appraisal report. f DOLLAR VALUES AND PURCHASING POWER The estimated market value set forth in the appraisal report and any cost figures utilized are applicable only as of the date of valuation of the appraisal report. All dollar amounts are based on the purchasing power and price of the dollar as of the date of value estimates. i VALUE CHANGE,DYNAMIC MARKET,ALTERATION OF ESTIMATE BY APPRAISER All values shown in the appraisal report are projections based on our analysis as of the date of valuation of the appraisal. These values may not be valid in other time periods or as conditions change. Projected mathematical models set forth in the appraisal are based on estimates and assumptions which are inherently subject to uncertainty and variations related to exposure,time,promotional effort,terms, motivation,and other conditions. The appraiser(s)does not represent these models as indicative of results that will actually be achieved. The value estimates consider the productivity and relative attractiveness of a property only as of the date of valuation set forth in the report. In cases of appraisals involving the capitalization of income benefits,the estimate of market value, i investment value or value in use is a reflection of such benefits and of the appraiser's interpretation of income,yields and other factors derived from general and specific client and market information. Such estimates are as of the date of valuation of the report. They are subject to change as market conditions change. This appraisal is an estimate of value based on analysis of information known to us at the time the appraisal was made. The appraiser(s)does not assume any responsibility for incorrect analysis because of incorrect or incomplete information. If new information of significance comes to light,the value given in this report is subject to change without notice. The appraisal report itself and the value estimates set forth therein are subject to change if either the physical or legal entity or the terms of financing are different from what is set forth in the report. EXCLUSIONS Furnishings,equipment,other personal property and value associated with a specific business operation are excluded from the value estimate set forth in the report unless otherwise indicated. Only the real estate is included in the value estimates set forth in the report unless I otherwise stated. PROPOSED IMPROVEMENTS,CONDITIONED VALUE It is assumed in the appraisal report that all proposed improvements and/or repairs,either on-site or off-site, are completed in a good and workmanlike manner in accord with plans, specifications or other information supplied to these appraisers and set forth in the appraisal report. In the case of proposed construction,the appraisal is subject to change upon inspection of the property after construction is completed. The estimate of market value is as of the date specified in the report. Unless otherwise stated,the assumption is made that all improvements I f Reno■ Lake Tih�wr JOHNSON-PERKINS & ASSOCIATES, INC. _ R F A L ESTA I F A Pf RA I � LF � � C�)NLTAN T and/or repairs have been completed according to the plans and that the property is operating at I levels projected in the report. I MANAGEMENT OF PROPERTY It is assumed that the property which is the subject of the appraisal report will be under typically prudent and competent management which is neither inefficient nor superefficient. I FEE I� The fee for any appraisal report,consultation,feasibility or other study is for services rendered and, unless otherwise stated in the service agreement,is not solely based upon the time spent on any assignment. CHANGES AND MODIFICATIONS The appraiser(s)reserves the right to alter statements, analyses,conclusions, or any value estimates in the appraisal if any new facts pertinent to the appraisal process are discovered ` which were unknown when the appraisal report was prepared. I i l I II I I i I I I I i i i i J Rune■Like Uwe OHNSON~PERKINS & ASSOCIATES, INC. 1 EA L ESTATE A 11PRA ISER 5 _ c 0 N S I, LTP. `: T � i The acceptance and/or use of the Appraisal Report by the client or any third party constitutes acceptance of the Assumptions and Limiting Conditions set forth in i the preceding paragraphs. The appraiser's liability extends only to the specified client, not to subsequent parties or users. The appraiser's liability is limited to the amount of the fee received for the services rendered. I I i I I I i i i i i I I i i I A I i Rene■Lakc T-thou