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1g. City Hall Expansion: Purchase of Schneider Park.L 07/17/96 WED 15:10 FAX 612 452 5550 C K S & F 344 CHAMSSEN CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A. Thomae. J. Campbell Roger N. Knutson Thomas M. Scott Oviry G. Fuchs Jaws, It. W ilstun Elliou B. Kno.tsch Sursan Lea Pace Attomeys sit Law (612) 4525000 Fax (612) 452 -5550 Ca 002 Andrei McDowell Pochler Matthew- K. Brl)kI John F. Kelly Miirgyucrirt M. Mcaarron George T. Stephonson ' July 17, 1996 Action by City Adn,iNstfatpt Endorsed L ,-- J)W A Modifie Rejecte Dat __ ' Mr. Don Ashworth Date Submitted to C mo City Manager City of Chanhassen Date Submitted to Comros ' 690 Coulter Drive -7 Box 147 Chanhassen, MN 55317 Re: City of Chanhassen vs. Mithun Enterprises, et al. Dear Mr. Ashworth: This letter is in response to your request for further review of the appraisal of the Mithun parcel on West 78th Street that was performed by the Andrus Agency. My letter to you dated June 19, 1996 included background information on the property acquisition for the City Hall expansion, a copy of the Andrus Agency appraisal and my recommendation that the City agree to purchase the parcel at the Andrus Agency's appraised value. understand that upon review of the I enders p appraisal and my recommendation, the Council questioned the appraised value by Andrus, primarily because the comparable sales used by Andrus to arrive at the appraised value were of property zoned for General Business (i.e. retail) and the subject property is zoned for office /institutional use. The appraised value of the subject property was questioned because property ' zoned for office use is generally less valuable than property, zoned for retail use Thus, you asked me to review the appraisal, my recommendation and the issues ' raised. I agree completely with the Council's observation that property zoned for retail business use is generally more valuable than property zoned for commercial office use. I also agree with the general proposition that using retail zoned property to determine value of office building zoned property is incorrect. However, having said f that, I restate my recommendation that the City agree to purchase the subject property ' Suit4 317 • Eagandale Office Center • 1380 Corporate Center, C Urve • Eagan, MN 55121 07/17/96 WED 15:10 FAX 612 452 5550 C K S & F Mr. Don Ashworth July 17, 1996 Page 2 for the appraised value. My analysis is as follows: 444 CHANHASSEN 0 003 1) The comparable properties used . in the Andrus appraisal all sold one to , two years ago and some upward price adjustment would now be necessary. The ,Andrus appraisal adjusts the price upward for time between 6% and 9%. ' 2) The comparable properties sold at prices between $6.25 and $11.28 per square foot. The appraisal values the subject property at $6.10 per ' square foot. On the 36th page of the Andrus appraisal (copy enclosed) the appraisal makes a 15% to 20% downward adjustment for the difference in zoning. The combination of the time adjustment and the , zoning adjustment indicates that the time adjustment would increase the property to between $6.75 and $11.96 per square foot whereas the downward adjustment for zoning differences reduces the value to between $5.74 and $9.57 per square foot. (I delete comparable No. 5 from these considerations because it is the Perkins site that had such significant soil correction costs and expenses that were allocated between the Perkins and the Target Store that it is very difficult to get an accurate assessment of the true land price.) ' 3) The City purchased the two lots next to the subject parcel in November , 1995 for approximately $6.60 per square foot based on a 1994 appraisal of that property. Those two adjacent lots were also zoned office institutiotaal, the same as the subject. ' 4) This acquisition is to complete the land needed for the City Hall expansion. Other parcels cannot be substituted. Without agreement the ' City can proceed with condemnation. That process will require the City to obtain an appraisal of its own and to go through the court process to complete the acquisition. While the condemnation proceeding. on this , parcel would probably; not be lengthy nor highly expensive, from my experience the probability of acquiring the property at a lower price is small , primarily because the City recentXy paid more for .the neighboring . parcels. the Council's observations regarding R ' In sum, g g the comparable properties in the appraisal arc correct. However, the goal is to acquire the land for City Hall expansion at a reasonable price. Without agreement the only choice is to condemn. i 1 07/17/96 WED 15:11 FAX 612 452 5550 C K S & F CHANHASSEN 1 Mr. Don Ashworth July 17, 1996 1 Page 3 1 In the condemnation process the commissioners who determine compensation will know that this appraisal has already made a 15% to 20% adjustment for the difference in zoning and will also know about what the City paid for the adjacent property with 1 identical zoning. While we, as City Attorneys, are ready and willing to follow any direction the Council gives us and to continue with the condemnation process, I 1 believe it to be in the City's best interest to acquire the property at the appraised value without further cost and expense in litigation. I therefore reiterate my recommendation to the Council in my June 19th letter that it agrees to purchase the 1 property at the appraised value. If the Council wishes us to proceed with condemnation, we will do so immediately. 1 I await your response. If you require anything further, please let me know. 1 Very truly yours, CAMPBELL, KNUTSON, SCOTT 1 & FU'CHS, P.A. 1 By: 1 Gary- G. Fuchs GCxF L 1 Enclosure 0 [a 004 07/17/96 WED 15:11 FAX 612 452 5550 C K S & F -iii CHANHASSEN 0 005 1 LAN S ALT -S ADJUSTMtNT CHART Elements Sale Subject 1 Sale 2 Sale 3 Sate Sale 4 5 Sale Price - $252,000 $702,382 $310,365 $250,000 $300,000 -ge!,cial/oorrections $0 ' 0 so 0 0 Adjusted $252,000 $702,382 $310,365 $2550,000 $3W,000 Unit Size SQF _ 32,075 40,388 6 2.292 _ 411,285 40,000 60,133 Price /SQF - $6.24 $11.28 $7.52 $6.25 54.99 Elements of Comparison (Adjustments) Property Rights Cornreyed 0% 0% 0% 0% 096 Adjusted Price - $6.24 $11.28 $7.52 $6.25 $4.99 Financing Terms - 0% 0% 0% 0% 096 Adjusted Price - $6.24 $11.28 $7.52 $6.25 $4,99 Conditions of $ale 0% 0% 0% 0% 0% Adjusted Price $6.24 $11.28 $7.52 _ $6.25 $4.99 Sale bate - 9% - 6% 6% 8% 6% Adjusted Price $6.80 $11.96 $7.97 $6.75 $5;29 Adjustments for Location - 10% 0% 6% 0% 12°A Physical Characteristics - 0% 0% 4% 0% 0% Other (Lot size, zoning, etc) _ 45% -20% -15% -15% -15% Additive Adjustment (%) - -5% -20% -5% -15% -3% Additive Adjustment (PSOF) - ($0.34) "- $-� _ ($0.40) $1.01 ($0.16) Adjusted Value ( - $6.46 $9.57 _ $7.57 " $5.74 _ $5.13 Mean $6,89 Best of fit Rounded $6,90 Selectivity Rating 0.25 0 0.15 0.45 0,95 Selected Value - 1.61538 0 1.13608708 2.581875 0.7696077 Indicated Value by Weighting $6,10 Rounded $0.10 Note: Adjustments for the first five items in the Adjustment Analysis Grid above are cumulative and must be calculated by multiplying the percentage adjustments, then the last three additive items are netted out after the cummulative adjustments have been applied. Based upon the above adjustments, the estimated current Market Value of the subject is $6.7t] per square foot ( - $6.10 sq, ft.. X 32,075 $1 96,668 ESTIMATED CURRENT MARKET VALUE $195,000 1 � A ' CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A. --- Attorneys at Law ' Thomas J. Campbell (612) 452 -5000 Andrea McDowell Poehler Roger N. Knutson Matthew K. Brokl Thomas M. Scott Fax (612) 452 -5550 John F. Kelly Gary G. Fuchs Marguerite M. McCarron James R. Walston June 19 1996 George T. Stephenson Elliott B. Knetsch Suesan Lea Pace ' CEIVEn JUN 2 0 RECD ' Mr. Don Ashworth QTY OF CHANN City Manager ' City of Chanhassen A r-r 690 Coulter Drive Box 147 •-- �-- --- — ' Chanhassen, MN 55317' c RE: City of Chanhassen/Mithun Enterprises ' Property for Future City Hall Expansion Dear Don: Enclosed herewith please find a letter dated June 4, 1996 from Mithun ' Enterprises and addressed to me regarding the ongoing effort by the City to acquire the remaining parcel on West 78th Street for future expansion of the City Hall. The letter arrived while I was on vacation last week. Enclosed also please find a letter dated May 1, 1996 from me to Ms. Egland regarding the proposed terms of an acquisition of the property by the City. As you can see from the June 4 letter, Ms. Egland, on behalf of Mithun Enterprises, Inc., has indicated that Mithun Enterprises, ' Inc. is willing to sell the land to the City for the appraised value. ' By way of background, several years ago the City authorized condemnation of the property on West 78th Street for the City Hall expansion. Included were three separate lots, one of which is improved with the old bank building. After ' condemnation had started, the City was approached by the bank and requested to hold the condemnation proceedings in abeyance for a period of time because Mithun Enterprises was attempting to sell its banking interest in Chanhassen. It did not want the condemnation process to create a problem for that sale transaction. Following the sale of the bank to the new owners, we negotiated acquisition of ' two of the three lots from the new owner. That acquisition was authorized by the Council and closed quite some time ago. This lot is the remaining lot of the three. It was not sold to the new owners of the bank by Mithun Enterprises because it was held by a different Mithun entity than owned the bank at the time. ' Suite 317 • Eagandale Office Center • 1380 Corporate Center Curve • Eagan, MN 55121 � Mr. Don Ashworth , June 19, 1996 Page 2 ' In an effort to acquire the remaining parcel without expense and without ' adversarial confrontations and court proceedings, Mithun Enterprises was approached to determine if an negotiated sale was possible. I suggested, and Mithun Enterprises ' agreed, that they would have an appraisal done and, if acceptable to them, would agree to sell the property at the appraised value. They agreed to hire the Andrus Agency to conduct that appraisal. I A copy of the appraisal was provided to me some time ago but written confirmation by Mithun Enterprises of their willingness to sell the property at the ' appraised price and upon the terms of a standard real estate transaction had never been given to us. We now have that written confirmation in the enclosed June 4th letter. Based on my review of the appraisal by the Andrus Agency (a copy is enclosed herewith) I believe the appraisal to be fair and reasonable and an accurate indication , of the fair market value of the subject property. I recommend that the Council approve acquisition of the property at the appraised value. I find it unlikely that the City would be able to obtain the property at any lesser value if it pursued ' condemnation proceedings, hired its own appraiser and actually went through the condemnation process. I think it would be much more expensive for the City to do SO. , Please place the matter on the Council agenda for Council's review. Again, I ' recommend the Council approve the acquisition at the appraised value of $195,000.00 and pursuant to the terms as set forth in my May 1, 1996 letter. In addition, I suggest that the $1,450.00 appraisal cost be split between the parties. , As always, if you or any member of the Council requires additional information or has any questions about this matter, please feel free to contact me. ' Very truly yours, ' CAMPBELL, UTSON, S T & FUCHS, P. , By: GGF:cjh U I I Enclosure I I MITHUN ENTERPRISES, INC. 900 East Wayzata Boulevard, Suite 130, Wayzata, Minnesota 55391 Tel. (612) 473 -6422 I June 4, 1996 ' Mr. Gary Fuchs Campbell, Knutson, Scott & Fuchs, P.A. ' Eagandale Office Center, Suite 317 1380 Corporate Center Curve Eagan, MN 55121 I Re: City of Chanhassen / Mithun Enterprises,- Inc. Dear Mr. Fuchs: As you know, the City of Chanhassen issued a notice of pending condemnation on Lot 1, Block 2, Schneider Park in 1993. Since that time the City has not proceeded with condemnation of the Lot. In January 1996, you inquired whether we would be willing to sell or otherwise transfer the property to the City without going through the condemnation proceeding. ' When we indicated our willingness to p roceed with a transfer without g oing thro a g P g g g ' condemnation, you asked us to have the property appraised. A copy of the Andrus Agency appraisal valuing the property at $195,000 was provided to you. ' We would prefer not to sell the property, but since the City has started condemnation proceedings we feel compelled to reach an agreement with the City for an amicable transfer. Accordingly, we are willing to transfer the property to the City for the appraised amount of ' $195,000 (pursuant to a "standard" commercial real estate transaction as outlined in your May, 1, 1996 letter) plus the $1,450 cost of the appraisal. ' In addition, we concur with your suggestion that the property be transferred by stipulated settlement in condemnation proceeding. ' I trust that I have responded to all of your inquiries regarding the transfer and that you will bring the matter to the City Council as soon as possible so that we can complete the transfer. If, however, you have any further questions, or if there is anything I can do to conclude this matter, ' please call me at 473 -1295. Sincerely, ri . gland CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A. Attorneys at Law Thomas J. Campbell Roger N. Knutson Thomas M. Scott Gary G. Fuchs James R. Walston Elliott B. Knetsch Suesan Lea Pace (612) 452 -5000 Fax (612) 452 -5550 May 1, 1996 Andrea McDowell Poehler Matthew K. Brokl John F. Kelly Marguerite M. McCarron George T. Stephenson Ms. Lori M. Eglund Mithun Enterprises, Inc. Norwest Bank Building Suite 130 900 East Wayzata Boulevard Wayzata, Minnesota 55391 Re: City of Chanhassen/Mithun Enterprises, Inc. Dear Ms. Eglund: Thank you for sending me the copy of Mr. Andrus' appraisal of Lot 1, Block 2, Schneider Park. I have sent a copy to the City for review and consideration. I have also discussed the appraisal with City staff. It is my intention to obtain review and comment from a couple of staff members and then present the matter to the City Council. However, prior to presenting the matter to the Council, I would like to verify that I understand the position of Mithun Enterprises. It is my understanding that your client is willing to sell /transfer ownership of the subject parcel for $195,000.00 pursuant to a "standard" commercial real estate transaction; that is, 1996 real estate taxes would be pro rated to the date of transfer, special assessments would be deducted from the sale price or paid by Mithun, deed tax would be paid by Mithun, and recording fees and closing costs would be paid by the City. Since the subject property is already the subject of a pending condemnation proceeding, it is possible to effect transfer of the property within that proceeding and payment of some of the costs becomes unnecessary. Mithun would not pay deed tax, there would be no closing costs and only one document would need to be recorded. The tax proration and the special assessments would still be reflected in the final purchase price. I suggest that transferring the property by stipulated settlement in the condemnation proceeding is more efficient and less costly to both parties. I request that you send me a letter verifying or clarifying all of the above points Suite 317 • Eagandale Office Center • 1380 Corporate Center Curve • Eagan, MN 55121 Ms. Lori M. Eglund May 1, 1996 Page 2 and any other items that would require agreement by the Council to close the transaction. Once I receive your written position, I will go to the Council with the matter. In the meantime if you have any questions, please feel free to call me. Your courtesies and cooperation are appreciated. Very truly yours, CAMPBELL, KNUTSON, SCOTT &F GGF:cjh Enclosure cc: Mr. Don Ashworth i Real Estate Appraisal UNDEVELOPED COMMERCIAL SITE N.E. Corner. Kerber Blvd. and W. 78th St. Chanhassen, Minnesota PREPARED FOR Mithun Enterprises 900 East Wayzata Boulevard Wayzata, Minnesota As Of February 20, 1996 Prepared By NELSON ANDRUS, I.F.A.S. ANDRUS AGENCY MINNETONKA BUSINESS AND PROFESSIONAL BUILDING 17809 HUTCHINS DRIVE MINNETONKA, MINNESOTA 55345 Minnesota Certified Federal General License #4000065 Andrus Agency, Inc. Consultants & Appraisers Specializing in the area of Commercial & Industrial Real Estate ' Andrus Agency, Inc. ' Minnetonka Business and Professional Center 17809 Hutchins Drive, Minnetonka, MN 55345 Phone 612.474.9443 1 ' February 29, 1996 ' Ms. Lori Egland Mithun Enterprises 900 East Wayzata Boulevard ' Suite 130 Wayzata, MN. 55391 ' RE: Estimate of Current Market Value Lot 1, Block 2, Schneider Park Chanhassen, Minnesota Dear Ms. Egland: ' Pursuant to your request, I have ersonall inspected the undeveloped land P Y P P identified above. The purpose of my inspection being to complete an appraisal ' report estimating the current market value of said site as of February 20, 1996. This appraisal is made in accordance with the Uniform Standards of Professional ' Appraisal Practice as adopted by the Appraisal Standards Board. My analysis of all of the discoverable factors affecting the market value of the ' Fee Simple Interest of this property indicates that the market value as of February 20, 1996 was: ONE HUNDRED NINETY FIVE THOUSAND DOLLARS ($195,000) This transmittal letter is followed by the Certification of this appraisal and the ' narrative appraisal report further describing the subject property and containing the reasoning and the pertinent data leading to the above estimate of value. ' Your attention is directed to the "General Underlying Assumptions" and "Limiting Conditions" which are considered usual for this type of assignment. They have been included at the beginning of the report. - Real Estate Services for Business Individual Membership, Society of Industrial & Office Realtors • Certified Commercial & Investment Membership • National Association of Realtors Minneapolis Commercial Multiple Listing Service • Independent Fee Appraisers Association I Ms. Lori Egland February 29, 1996 Page 2 This report consists of This letter which identifies the property and summarizes the results of the investigation. A summary of facts about the property. A narrative section which contains the valuation study, the highest and best use discussion, and conclusion of value. Exhibits and addenda This appraisal conforms with the Uniform Standards of Professional Appraisal Practice as adopted by the Appraisal Standards Board. Enclosed are two copies of the report. Thank you for this opportunity to be of service. If you have any questions regarding any of the information, approaches to value, or conclusions contained in the report; I hope that you will call me. Respectfully submitted: N Ison L. Andrus, IFAS Minnesota Certified Federal General License #4000065 1 Andrus Agency, Inc. Consultants & Appraisers Specializing in the area of Commercial & Industrial Real Estate CERTIFICATE OF APPRAISAL I Certify that, to the best of my knowledge and belief, the statements of fact contained in this report are true and correct. The appraised proposed property is identified as Lot 1, Block 2, Schneider Park in Chanhassen, Minnesota. The reported analyses, opinions, and conclusions limited only by the reported assumptions and limiting conditions are my personal, professional analyses, opinions, and conclusions. I have no present or contemplated interest in the subject property, and I have no personal interest or bias with respect to the parties involved. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. My compensation is not contingent upon the reporting of a pre - determined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice, as well as the Code of Ethics and Standards of Professional Conduct of the National Association of Independent Fee Appraisers 'J I certify that 1 am, based upon my experience and training, competent to estimate the value of the subject property. I have made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to me. hold a Senior designation in the National Association of Independent Fee Appraisers. This organization has a mandatory program of continuing education for designated members. I am certified under this program through December 31, 1996. 1 have met all of the requirements of the continuing education program of the State of Minnesota as a Certified State /Federal General Appraiser. My license #4000065 expires August 31, 1996. I hereby certify that based upon the information available to me, the analysis of the data contained herein; and the plans given me, I have estimated the subject's market value assuming completion as of this date to be: $195,000 Date r Nelson L. Andrus Certified Federal General License #4000065 Anrlr»e Arsnnw Tint- Consultants & Appraisers Specializing in the area of Commercial & Industrial Real Estate 0 TABLE OF CONTENTS Page General Underlying Assumptions ........................................ ..............................1 ExecutiveSummary ............................................................. ..............................4 Photographs of Property ...........:......................................... ..............................5 GeneralData ....................................................................... ..............................8 ImportantDefinitions ........................................................... .............................10 Market Value Fee Simple Estate or Interest Leased Fee Estate Highest and Best Use Minnesota and the Metropolitan Area ................................ .............................12 AreaMaps .......................................................................... .............................18 Chanhassen and The Neighborhood .................... ............................... .......20 PropertyDescription .......................................................... .............................23 Highestand Best Use ........................................:............... .............................24 TheValuation Process ...................................................... .............................26 LandValue ......................................................................... .............................28 Conclusion......................................................................... .............................36 Exhibits............................................................................ ...........................:... 37 Plat Map Zoning Map Community Profile Growth Charts Appraiser's Qualifications Appraisal License Anrlr»c Aapnr•v Inv - - - - -- -- -- a --- — ✓ - - - -- Consultants & Appraisers Specializing in the area of Commercial & Industrial Real Estate iJ n C GENERAL UNDERLYING ASSUMPTIONS Legal Matters: The legal description used in this report is assumed to be correct, but it may not necessarily have been confirmed by survey. No responsibility is assumed in connection with a survey or for encroachments or overlapping or other discrepancies that might be revealed thereby. Any sketches included in this report are only for the purpose of aiding the reader in visualizing the property and are not necessarily a result of a survey. No responsibility is assumed for an opinion of legal nature, such as to ownership of the property or condition of the title. This appraisal assumes the title to the property to be marketable; that, unless stated to the contrary, the property is appraised as an unencumbered fee which is not used in violation of acceptable ordinances, statutes, or other governmental regulations. Unapparent Conditions: This appraisal assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. I am not an expert in determining the presence or absence of hazardous substances, defined as all hazardous or toxic materials, waste pollutants, or contaminants (including, but not limited to, asbestos, PCB, UFFI, or other raw materials or chemicals) used in construction or otherwise present on the property. No responsibility is assumed by me for the studies or analysis which would be required to conclude the presence or absence of such substances or for loss as a result of the presence of such substances. The value estimate is based on the assumption that the subject property is not so affected. Information and Data: Information, estimates, and opinions furnished to this appraiser and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However; no responsibility for accuracy of such items furnished the appraiser can be assumed by me. All mortgages, liens, encumbrances, and servitude's have been disregarded. unless so specified within the appraisal report. Responsible ownership and competent management are assumed. GENERAL UNDERLYING ASSUMPTIONS (continued) Zoning and Licenses: It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconforming use has been stated, defined, and considered in the valuation. It is assumed that the subject property complies with all applicable federal, state, and local environmental regulations and laws unless non - compliance is stated, defined, and considered in the valuation. No warranty has been made regarding the exact location or capacities of public utility system. It is assumed that all licenses, consents, or other legislativ e authority from local, state, or national governmental or organization have been, or can be, obtained or renewed for the value estimate contained in the report is based. GENERAL LIMITING CONDITIONS or administrative private entity or , any use on which will not be required to give testimony or appear in court due to preparing the appraisal with references to the subject property in question, unless prior arrangements have been made. Possession of this report does not carry with it the right of publication. Out -of- context quoting from or partial reprinting of this report is not is not authorized. Further, neither all nor any part of this appraisal report shall be disseminated to the general pubic by the use of media for public communication without my prior written consent. No environmental or concurrency impact studies were either requested or made in conjunction with this appraisal report. I thereby reserve the right to alter, amend, revise, or rescind any of the value opinions based upon any subsequent environmental or concurrency impact studies, research, or investigation. An appraisal related to an estate in land that is less than the whole fee simple estate applies only to the fractional interest involved. The value of this fractional interest plus the value of all other fractional interests may or may not equal the value of the entire fee simple estate considered as a whole. The function of this report is not for use in conjunction with a syndication of real property. This report cannot be used for said purpose and therefore, any use of this report relating to syndication activities is strictly prohibited and unauthorized. E u GENERAL LIMITING CONDITIONS (continued) If such an unauthorized use of this report takes place, it is understood and agreed that the Andrus Agency has no liability to the client and /or third parties. Acceptance of and /or use of this appraisal report constitutes acceptance of the foregoing general Underlying Assumptions and General Limiting Conditions. The appraiser's duties, pursuant to the employment to make the appraisal, is complete upon delivery and acceptance of the appraisal report. However; any corrections or errors should be called to my attention within 60 days of the delivery of the report. 3 f EXECUTIVE SUMMARY Property Undeveloped land on west 78th Street in downtown Type Chanhassen. Property Northeast corner of intersection of West 78th Street Location and Kerber Boulevard, Chanhassen. Record Mithun Enterprises Owner Date of February 20, 1996 Inspection Rights Fee simple estate Appraised Site Data 32,075 square feet +/- (167.65 feet front on 78th Street. 187.78 feet front on Kerber Boulevard.) Improvements Property is unimproved. Utilities Municipal utilities are in both Kerber Boulevard and West 78th Street. Zoning 0 -I, Office and Institutional District. Legal Lot 1, Block 2, Schneider Park Description Highest and Office or institutional use as per the zoning code. Best Use Purpose of Appraisal To estimate the fair market value of the subject property in order to form the basis of determining just compensation because of proposed acquisition of the property by the city of Chanhassen.. SUMMARY OF VALUATION ANALYSIS AS OF FEBRUARY 20, 1996 $195,000 2 7' EIJI P 9 I WvF" all SIR s - ^tii - ....r•: -tea rd�.f . . ., 'Y �.; „ } w• � o y°'j j y��3 %' "tii'r �"t�,yn+¢ r 4 7 1 y - . 85 W. •J:�. 0 7 Looking west across neighboring property at subject site. Byerly complex is on the right. f GENERAL DATA Property History In October of 1985, Lots 2 and 3 in Schneider Park were purchased by a bank holding company in which Mithun Enterprises was involved. This purchase included the Chanhassen State Bank building. Lot 1, the subject property, was purchased separately at the same time by Mithun Enterprises and has been owned by that entity ever since Scope of the Appraisal The scope of the appraisal requires compliance with the Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board of the Appraisal Foundation. The standards contain binding requirements and specific guidelines that deal with the procedures to be followed in developing an appraisal, analysis, or opinion. These uniform standards set the requirements to communicate my analyses, opinions, and conclusions in a manner that will be meaningful and not misleading in the marketplace. A narrative appraisal report on the subject property has been prepared. Property data such as size, location, and zoning are considered in this report. Market data, including land sales and supply and demand have been researched, analyzed, and presented. This data is used to consider the highest and best use of the subject property and to estimate the market value. The information necessary to arrive at the value is considered in this report. The market data has been collected, confirmed, and analyzed. Comparable sales were chosen for their similar highest and best uses as outlined within the report. All sales were analyzed and compared to the subject property based on their similarities and dissimilarities. Tax Information Legal Address: No official address Chanhassen, Minnesota P. I. D. #: 25 775 0030 Owner of Record: Mithun Enterprises Assessed Value $58,000 1995 Taxes $8262.00 - Spec. Assess. Inc. $4,313.40 Assessment Balance Approximately $15,000 0 1 Ll 0 GENERAL DATA (Continued) Estimated Marketing Time The subject property is located on downtown Chanhassen's main thoroughfare. Real estate activity in the immediate area has been heated in recent years. There now is virtually no property available on 78th Street for several blocks. The aerial photograph located in the Neighborhood section of this report clearly identifies the location and the surrounding properties. Based upon recent property acquisitions in the immediate area and the subsequent development; we would estimated a marketing time of 6 months. f f IMPORTANT DEFINITIONS Definition of Market Value: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specific date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well- informed or well- advised, and acting in what they consider their own best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Market Value Comments: This definition was taken from the department of the Treasury, Office of the Comptroller of the Currency, 12CFR Part 34, dated August 24,1990. This definition is the same for six of the federal banking agencies (Federal Reserve System, Comptroller of the Currency, Federal Deposit Insurance Corporation, Resolution Trust Corporation, Office of Thrift Supervision, and National Credit Union Administration.) The factors of utility, scarcity, desire, and effective purchasing power are apparent in the definition. The implication that buyer and seller are working under equal pressure is seldom completely true, although typical motivation for each does imply a reasonable balance for a market value transaction. Market prices do not necessarily follow all of these concepts and are often affected by salesmanship and the urgency and need of the buyer and /or seller. The central difference between market price and market value lie in the premise of knowledge. and willingness both of which are contemplated in market.. value but not in market price. At any given time, market value denotes what -a property is actually worth under certain specified conditions, while market price denotes the actual sale price. l 10 1 IMPORTANT DEFINITIONS (continued) ' Probability of Value Change: The market value of the property appraised in this report is estimated as of the aforementioned date. Constantly changing ' economic, social, political, and physical conditions have varying effects upon real property values. Even after the passage of a relatively short period of time, property values may change substantially and require a review of the appraisal ' and recertification. Definition of a Fee Simple Estate or Interest Fee simple estate is the absolute ownership unencumbered by any other interest or estate subject only to the four powers of government. These four powers are: ' 1. Eminent Domain 2. Escheat ' 3. Police Power 4. Taxation Definition of Highest and Best Use: Highest and Best Use may be defined as: The reasonably probable and legal ' use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria that highest and best use must meet are: 1. Legal permissibility 2. Physical possibility 3. Financial feasibility ' 4. Maximum profitability The highest and best use of both land as though vacant and property as improved must meet the above mentioned criteria. These criteria are usually considered sequentially; a use may be physically possible, but it is irrelevant if it ' is feasibly impossible or legally prohibited. Only when there is a reasonable possibility that one of the prior, unacceptable conditions can be changed is it appropriate to proceed with the analysis. ' Also implied, is that the estimation of highest and best use results from judgment and analytical skill. The use concluded from analysis, in other words, represents ' an opinion, not a fact to be found. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of most probable selling price (market value), another appropriate term to reflect ' highest and best use would be most probable use. In the context of investment value, an alternative term would be most profitable use. ' 11 MINNESOTA AND THE METROPOLITAN AREA Between 1980 and 1990, Minnesota's population grew significantly faster than any other midwestern state. Relatively low net out - migration, a low death rate, a moderate birth rate, and increasing minority populations have all contributed to the state's population increase. Minnesotans have a higher disposable income than the national average. Households in the state are more concentrated among the middle to upper income groups than at the national level. Per capita incomes in 1990 averaged $18,731. The greatest sources of personal income were generated in the manufacturing and service sectors of the economy. Manufacturing makes a greater relative contribution to the economy of the state than observed at the national level. Agriculture, forestry products, printing and publishing, and computer and other high technology industries are the major employers in the state of Minnesota. Manufacturers of computers and industrial machinery provide one of every five jobs in Minnesota manufacturing. Minnesota's high school graduation rate is first in the nation. 90.9 percent of all high school seniors in Minnesota graduated in 1989, far above the national average of 71.1 percent. Minnesota ranks fifth in the nation in the number of Fortune 500 companies per 1 million residents. Most of these large companies are high technology applications and leaders in national and international manufacturing, banking, transportation, insurance, and food distribution. A recent survey by a national business magazine, "City and State ", ranks Minnesota fifth when it comes to protecting the environment. Minnesota earned top five honors because of its "long history of commitment to the environment." METROPOLITAN AREA The seven county metropolitan area is centered generally at the confluence of. the Mississippi and Minnesota Rivers in Southeastern Minnesota. It is Minnesota's most heavily concentrated urban area. Recent census information indicates that 52% of Minnesota's population live in the seven county metro area. Geography and transportation have been significant factors influencing the development of the Twin Cities Metropolitan Area (TCMA) as a distribution center of national importance. The TCMA is the hub of a trade area covering portions of six states and Canada, with seven to eight million people. - 12 1 1 1 1 1 1 1 METROPOLITAN AREA (Continued) An area wide governing board, called the Metropolitan Council, is responsible for handling problems affecting the entire area, and coordinates orderly growth through agencies. such as the Metropolitan Transit Authority and the Metropolitan Sanitary Sewer District. Demographics (1990 Census) Population (Minnesota largest cities) Minneapolis St. Paul Bloomington Area Growth 1970 1980 1990 Employment Total employment Unemployment Unemployment rate 368,383 272,235 86,335 1,872,612 1,985,873 2,288,721 1,282,444 41,900 2.9% ' Economic and Business Climate ' The Twin Cities were settled in the late 1800's as an agribusiness and lumbering center serving the upper midwest. Companies such as Cargill, International Multifoods, General Mills, Peavey Milling, Farmer's Union Central Exchange, ' and Land O' Lakes, all headquartered in the Twin Cities, have created an agribusiness industry of International repute. ' Currently, the Metropolitan Area has a strong and well- diversified industrial and business base. There are an unusual number of large companies with headquarters in the Twin Cities. These companies include: 3M Company, Honeywell, Bemis, the Carlson Companies, Deluxe Check, H.B. Fuller, Dayton Hudson, Medtronic, and Northwest Airlines. In all, there are 35 Fortune 500 and Service 500 Companies headquartered in the Twin Cities. 13 METROPOLITAN AREA (Continued) The Twin Cities are the financial center of the Upper Midwest. The Ninth ' Federal Reserve district Headquarters is located in Minneapolis. The Twin Cities are the home of two of the 25 largest national commercial banking ' companies (First Bank, N.A. and Norwest Bank, N.A.), three of the 50 largest national life insurance companies (Northwestern National Life, IDS Life, and Minnesota Mutual Life), and two of the five largest diversified financial , corporations (IDS/ American Express and The St. Paul Companies). Medical technology and the computer business are two other industries that ' have developed a strong base in the Twin Cites. In the 1950's when computer technology was in its infancy, the Twin Cities were fortunate to have several ' entrepreneurs in these areas. Many of these companies have expanded into international markets. Control Data, Medtronic, St. Jude Medical and Cray Research are examples. ' The Twin Cities are a strong retail center. The Minneapolis -St. Paul MSA, while sixteenth in population, ranked seventh in per capita retail sales according to ' Market Source, a publication of The Appraisal Institute. There is no competing major retail center between Chicago and the West Coast. The downtown areas are progressive and boast of several national retail stores. Shopping centers include 5 Super regional Centers with gross leaseable space , in excess of 800,000 square feet each. In August of 1992, the Mall of America billed as the largest shopping mall in the nation, opened in Bloomington. The Mall of America, built at a cost of $625 million, consists of close to 400 shops I and restaurants in 4.2 million square feet. The region's per capita income has been consistently higher than the national ' average. The Twin Cities Economy in Profile produced by the Research Division of the Metropolitan Council indicates that the region's figure has ranged from 15 to 18 percent higher than the national figure. The region ranked fifth in per capita income among the 25 largest metropolitan areas. No major employers or type of employment dominates the area. Agriculture provides a rich base to the economy of the region. Other major employment groups include computer and high technology businesses, manufacturing, ' graphic arts, medical and educational institutions, insurance, and the biggest of all, government. According to th - i6- Minnesota Labor Market Review which is published quarterly by the Research and Statistics Office of the Minnesota ' Department of Jobs and Training; the Unemployment rate in Minnesota is consistently 1.5% below the national average. I 14 I METROPOLITAN AREA (Continued) ' According to Corporate Report magazine, which is published in the Twin Cities. TCMA employees have one of the nation's lowest absentee records. Their credit ratings are among the highest in the nation. Transportation The Twin Cities are a regional transportation center for the five -state Upper ' Midwest area. The International Airport is a modern facility located within 15 minutes of both downtown areas. On weekdays, passenger planes fly approximately 450 scheduled domestic flights and three scheduled international lights. In 1990, the airport served nearly 17 million passengers and handled 163,000 tons of cargo. Passenger service needs are met by Twin Cities based ' Northwest airlines as well as from 7 other major airlines and four regional and commuter lines. ' The Twin Cities are at the head of commercial navigation on the Mississippi River. Fourteen barge lines are located here. A $33,000,000 project was completed in 1963 that extended navigation to the cities. This system provides access to the central continental river system, to Pennsylvania on the East, Nebraska on the West, and Louisiana and the Caribbean to the South. ' Railroad transportation is not what it used to be in the Twin Cities. At one time Burlington Northern and the Milwaukee Soo Line were headquartered here. The ' Twin Cities are the Upper Midwest trucking center. Several large trucking firms serve the area providing overnight service to other mid - nation cities and four or five day service to coastal markets. ' The Twin Cities have a well organized vehicular transportation system. Included in this highway network are Interstate Highway #35 that runs North & South through the Twin Cities extending from Duluth, Minnesota to Texas; and Interstate #94 that runs East & West from Chicago to the West Coast. Employment Information Employment in the metropolitan area has increased annually over the past 17 years. Except for the recession years of 1982 and 1983, the unemployment rate overall in the metropolitan area had remained below 5 percent. One out of every ' four jobs is in manufacturing. The Twin Cities rank second in the nation in the percent of jobs in "non- electrical machinery" category, which includes the 1 computer industry. Minnesota ranks sixth among the states in growth of high - tech jobs. 15 METROPOLITAN AREA (Continued) Education A recent national study by the Department of Health, Education, and Welfare ranks Minnesota at the top as far as number of years in school and literacy are concerned, and the state's high school students have consistently out performed their U.S. counterparts on the Scholastic Aptitude Test and the American College Test. Recent information released by the Metropolitan Council, of people twenty -five years old or older in the Metropolitan area, eighty percent are high school graduates and 22% have sixteen years of education or more. More than 50,000 full time undergraduate students are enrolled at the University of Minnesota, which is the fourth largest land grant college in the country. It is a major research institution. Former Minnesota students and faculty have been awarded twelve Nobel Prizes for physics, Medicine, chemistry, economics, and peace. In addition to the University of Minnesota, there are twelve four -year colleges, six community colleges, nine technical institutes and several proprietary technical and trade schools in the Metropolitan area. Culture and Recreation Nearly 1,300 arts organizations thrive throughout the state. In the Twin Cities there are approximately 100 repertory and dinner theaters, 135 art galleries, 25 museums, 9 dance companies, and 21 music companies. Some of the larger organizations include the world famous Guthrie Theater; Orchestra Hall in Minneapolis, home of the Minnesota Orchestra; the Walker Art Center; the Minneapolis Institute of Arts; and the new Ordway Music Theater in St. Paul, home of the Minnesota Opera Company and the St. Paul, Chamber Orchestra. Other Theaters include the Old Log Theater, the Cricket Theater, the Children's Theater, and the Chanhassen Dinner Theaters. The New York Times has said that outside of New York, the Twin Cities is the finest cultural scene in America. The Twin Cities is an organized sports Mecca. Professional teams in the major leagues include football, 1, basketball, and baseball. The University of Minnesota competes in the Big Ten Conference and has over 20 sports teams performing. Many of the smaller institutions of higher learning also have several teams. In 1991 -1992; the Twin Cities hosted the International Special Olympics, the Super Bowl, the World Series, the National Open Golf Tournament, the National Collegiate Athletic Association "Final Four" in basketball, the Davis Cup Tennis 16 0 n METROPOLITAN AREA (Continued) ' Series, and many other national and international athletic events. It was without question the dominant sports community in the country for this period. As far as facilities are concerned; the 62,000 seat Hubert H. Humphrey Metrodome in downtown Minneapolis guarantees warm football and cool ' baseball inside its climate controlled "Dome ". Construction was recently completed on the Target Center that houses the Minnesota Timberwolves Basketball team. Many nationally prominent entertainers also perform in these facilities. Other recreational facilities which operate both seasonally and year round include Canterbury Downs, a pari- mutuel race track; Valleyfair Amusement park; the Minnesota Zoo; the Renaissance Festival; historic Fort Snelling; and one of ' the largest omnitheaters in the world at the St. Paul Science Museum; and more recently, a number of gambling casinos. The Park System has consistently won national awards. There are hundreds of miles of walking and biking paths including paths around several of the metropolitan lakes and several wilderness trails. ' There are many neighborhood parks. Several golf courses, both private and public. There are many lakes in the seven county area, many with beaches, and ' all with public access. The largest is Lake Minnetonka which is known worldwide. Hennepin County Park in Carver County contains over 2,500 acres. ' Local parks provide approximately 30,000 acres of park land. The regional park system represents approximately 47,000 acres of land acquired by counties, ' special park districts, and cities. State parks in the Metropolitan area total about 4,800 acres. The Carlos Avery Wildlife Management Area totals 26,000 acres. About 9,500 acres are expected to be acquired for the Minnesota Valley National Wildlife Refuse and Recreational Area. ' Conclusion The Metropolitan Area has a history of continuous growth. By the year 2000, the ' Metropolitan Council projects the seven county metropolitan population to be 2.3 million persons. With its diverse and expanding business base, the Twin Cities should continue to be a major regional industrial, commercial, financial, cultural ' and educational center of the Upper Midwest. i 1 17 ' MINNESOTA 1 2 3 4 5 6 7 B 9 1 10 11 12 13 14 / ANOKA O SM. • GM - � . . 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The City contains 23.13 square miles. Chanhassen is served by State Highways #212, #169, #7, #41, #101, and #5. State Highway #5 runs east/west through the community near the "downtown" area and connects the southwestern area of the state with the twin cities. Four lanes were completed from Interstate #494 to Powers Boulevard on the west edge of the downtown area in 1991. The other above mentioned highways cross the community at one end or another. Chanhassen's growth in the last 25 years is.dramatic. 1980 census 1990 census April, 1996 estimate 6,359 11,732 17,021 478 residential building permits were issued in 1995. Indications are that 1996 will see similar growth. There are now in excess of 3,500 people employed in Chanhassen. The Milwaukee /Soo Line railroad runs through Chanhassen. Flying Cloud Airport is a small but active airport in Eden Prairie that is less than 5 minutes from Chanhassen. Chanhassen has 7 lakes, a 340 acre University of Minnesota Landscape Arboretum, Lake Minnewashta Regional Park, Carver County Park Reserve, and Lake Ann Park. There is one golf course in Chanhassen and several in close proximity. The Chanhassen Dinner Theater is a nationally famous theater restaurant that attracts people from the entire upper midwest. The city is close enough to the cities to provide easy access to a wide variety of cultural activities. The Chanhassen Housing and Redevelopment Authority has been extremely active in recent years. Through Tax Increment financing and other incentive programs, commercial and industrial development have flourished. A decision was made several years ago to develop the small commercial area at the junction of Highway #101 and Highway #5 into Chanhassen's "Downtown ". Roads have been upgraded and re-routed. The first downtown development was the completion of a small neighborhood shopping center in 1990. An office /professional building was completed in 1991. The aerial photograph facing the next page shows what has happened since that time. 21 0 I� I I I CHANHASSEN AND THE NEIGHBORHOOD (Continued) Recent developments include a neighborhood center, a 65,000 square foot Byerly's food store and restaurant, a Target discount center, three restaurants, five banks, a new Country Suites motel, and other retail businesses. The Chanhassen Lakes Business Park has been the main location for industrial development. This park has 330 acres of land. Industrial development is now taking place on the fringes of the park. At latest count over 3,000 people are full time employees of companies located in the Park. Buildings total well over 1 million square feet. Large recent industrial projects include a 330,000 square foot building for Rosemount Engineering, a 175,000 square foot croissant plant for McGlynn bakeries, and a new headquarters building for Empak. With the expansion of the Municipal Services perimeter, new industrial development can be expected in other areas along Highway #5. Some Chanhassen children attend the Chaska public schools. Others are a part of the Minnetonka school district. An elementary school and a middle school are located in Chanhassen as is St. Hubert's Catholic elementary school. Construction was recently completed on a new public school building two miles west of the downtown area. Chanhassen's growth has exceeded all predictions. With Eden Prairie to the ' east reaching the point where there is very little land remaining for development, the city will continue to be in an active growth mode for some time to come. West 78th Street is almost fully developed now. Commercial development of a ' major scale is being planned south of the downtown area along Highway #5. 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Jil. �"'`" --. 3 fi� `�, �' -.. f [�- a'��` \ \V�`�'t!��lt ��•.. `♦ 4." � , 'r',. •t,, -. � i ��Lr�rtmG.� - ... aw. �.!n-'Y j `.'�t:. � \ J .,�^K,;� < ;1�� \�tl \`��`y�»",fy`w��, -.i .�'e.r'G`" rf �,.� r 1 r � . .r.L ,., , ar, 'c .:i•'�' { ' ^ g 4.��q:} "; +:, � /.'T�l `� ] rk 1 � Nuw . v �W. �.T .� -. S. �✓ ', ? Z �r i - �� Y .yY ter♦. 4 : ♦� -*� • T'• _ f �'. T ' u -vi y ♦,: ,/� � � J�+t•�r � 'a ' r " L " tf't°' - s:s jf � =i. IN ��-f' _ _ - - ..:5....i`s n•G�� t'� ' .+{fi .Y w•r ��.. ra ��i� f � { C i ,1. � 'tf'3_. -, ice( _' "��57 .y. ^.74_ - � • �/r� .r+• '"'xF'.. rte...,. �`+ ra Orr: ' / l ":A"}_ 4r °f �• q � t P _/. C'.f ti l.'I ',. y f' t - J 'ri "'�•P� , �� . � I �.. . • '" JJ��a � , h l.11!SIIIII .• �.• .� ,_ .. .. C . k 1 - s 'Cti". Orl 4, �xa+i. . Y 1 .. ,•� 3 �v `♦ •, fit+ l /�' " ''.1 Y N � 4�tlA.. {x• ."'P �� _ �r �� • \ + J � J i .:.., � -,. ( � � A �. !r ,.. � ��r ate, -_ S, '4 SOME NEIGHBORHOOD FEATURES The aerial photograph on the facing page was taken last October. It clearly shows the strategic location of the subject site and the growth of the downtown area. The photograph looks north with Lotus Lake at the top of the picture. At the bottom of the photograph, industrial buildings that are south of Highway #5 are shown. Properties of interest include: 1. Wendy's restaurant which is located on the site of Comparable Sale #1. 2. Richfield State Bank building with banking offices and drive in facility on first floor. Rental office space on the second floor. This is on the site of Comparable Sale #2. 3. Boston Market Restaurant. Recently opened. This is on the site of Comparable Sale #3. 4. Small multi- tenant retail building. Located on the site of Comparable Sale #4 5. Perkins restaurant. Comparable Sale #5. 1 This recently completed facility is on the site of 6. Byerly's store and adjacent retail businesses which include a bottle shop, restaurant, Paper Warehouse, barber shop, sports equipment shop, and Kinko's printing business. 7. Target discount store. 8. Market Square neighborhood shopping center. Occupants include a grocery store, drug store, hardware store, and restaurants. 9. City Administrative offices and library. 10. Country Suites Motel. 11. Chanhassen Dinner Theater complex which includes retail businesses, office space, and the theater. 12. Small multi- tenant office building. 13. Intersection of Kerber Boulevard (Running north /south) and W. 78th Street._ 14. This 40,000 square foot site will soon be developed with the construction of an 8,000 square foot retail building that will include a Redmond hair salon and a bagel shop. Developers put land into the development cost at $6 a square foot. 23 PROPERTY DESCRIPTION SUMMARIZED LAND FEATURES Location Northeast corner of intersection of West 78th Street and Kerber Boulevard Chaska, Minnesota Land Area 32,075 square feet +/- .736 acres Frontage 167.65 front feet on West 78th Street (facing south) 187.78 front feet on Kerber Boulevard (facing west) Access Excellent access and visibility Topography Level site. Soils Soils appear to be adequate. I am not an expert on soil conditions, and would suggest a Phase 1 environmental study be required by any party anticipating an ownership interest.. Utilities Municipal utilities are all available. Street Surface Bituminous surface to commercial standards on both Wes 78th Street and Kerber Boulevard. Curb and Gutter 6" Concrete curb and gutter on all streets. Sidewalks None Zoning OI, Office and Institutional District Flood Zone Community Panel #270051 005 B Map revised: July 2, 1979 Zone C, area of minimal flooding 24 � 'I Li f HIGHEST AND BEST USE ' The definition for highest and best use is included at the beginning of the report 9 9 9 P in the Important Definitions section. The physical characteristics of the land such as size, shape, location, and topography have been considered. In addition, the analysis has included the surrounding developments, existing zoning, access to major transportation routes, availability of utilities, current trends, and demand for property of this type in the market. The land value is based upon the premise of the highest and best use "as though vacant ". There are four tests which are taken into consideration in developing an opinion of highest and best use. These tests include an examination of those uses that are: 1. Physically possible. 2. Legally permissible. 3. Financially feasible. 4. Maximally productive. I Possible Physically e P s I The subject property is a level site. It consists of 32,075 square feet which is an ' ideal size for small office or free standing retail development. Buildings have been built in every direction from it, so one must assume that the soils can support commercial construction. ' Legally Permissible It is zoned 01, office institutional. "The intent of the 01 zoning district is to provide for public or quasi - public nonprofit uses and professional business and administrative offices." Permitted uses include: Schools Public Buildings Churches Post.Office ' Fire Station Library Museum Health services /hospitals Nursing homes Community Center ' Public recreational facilities Utility Services Professional, business, and administrative offices ' Funeral Homes Financially Feasible ' The most probable use, under the current ownership, would be as an office or professional building. There is at this time, one three year old office building on ' west 78th street, 3 blocks east of the subject property. A similar building is under construction adjacent to it. Directly across 78th street, a 2 story office 1 25 f HIGHEST AND BEST USE (Continued) building which includes a Richfield Bank branch bank and drive -in facility. Office space for lease has been advertised in this building. It is my understanding that it is now fully leased. Brokers in the community tell me that there is a demand for "downtown" office space. The developers of the office buildings 3 blocks east indicate that attainable rents are capable of supporting debt service and providing a return on investment. Maximally Productive A retail use would undoubtedly be the maximally productive use. This is highly improbable because of the Office and Institutional zoning that has been placed upon the site. Although 01 zoning perameters call for several possible uses; it is this appraiser's opinion that the most probable use and the maximally productive use would be as an office building site. The proximity to the City Administrative Offices, Library, Fire Station, Post Office, and Elementary School suggest a quasi - governmental use. While not the most productive, development of the site to tie in with the current governmental uses would be in the best interests of the City of Chanhassen. Should private interests develop the property in an effort to secure maximum return from it, the City would have lost an important expansion possibility on its main thoroughfare which it has worked long and hard to develop. Highest and Best Use As Though Vacant Land Office or quasi governmental use, as zoned. r 26 [I 7 fl 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VALUATION SECTION 27 THE APPRAISAL PROCESS The Market Data approach is considered b appraisers to be the only tru valid , pp Y pp Y Y method of estimated the value of raw land. In those rare areas where land ' leases are prevalent, the Income approach is also sometimes applied. For our purposes, the Market Data approach has been the sole approach. This approach is essential in almost every appraisal. The application of this ' approach produces an estimate of value of a property by comparing it with similar properties of the same type and class which have been sold recently or ' are currently offered for sale in the same or competing areas. The comparative processes used in determining the degree of comparability between two properties involves judgment as to their similarity with respect to many value factors such as location, zoning, and highest and best use. The sale price of those properties deemed most comparable tends to set the range in which the subject property will fall. Further consideration of the comparative data will ' indicate to the appraiser a figure representing the value of the subject property. In analyzing the comparable sales in this approach, the object is to identify major ' similarities and differences in the sold properties and in the subject property. These differences are quantified and adjusted to create hypothetical substitutes for the subject. The measure of value in this instance is the price per square ' foot. As was mentioned earlier, the real estate activity along the 78th Street corridor r in Chanhassen has been extremely brisk in recent years. Already one of the fastest growing suburban cities in the seven county metropolitan area, with an , unusually sound industrial base, Chanhassen as seen exceptional retail and residential growth in the last 36 months. A major neighborhood center was completed in 1993 in the downtown area. 1994 and 1995 saw the openings of ' two of the twin cities' most prominent retail businesses; a Target store and a Byerly's upscale grocery super store with a restaurant and bottle shop. These "anchor" retailers account for well over 100,000 square feet of new retail space, and they are both within one block of the subject property. The question of zoning has been addressed. Most of our comparable sales ' information comes from sales made in the General Business zone. The subject property, while once zoned Central Business, is now in an Office and Institutional District. This zoning is relatively all- inclusive, but it does except , retail uses. One multi -story office building has been built in an 0 -1 district two ; blocks to the east of the subject property, and another similar building is under construction next to it. These buildings are part of a city backed project. Thus, , no land sale information is available. 28 1 i • MARKET DATA APPROACH (continued) i "The intent of the OI zoning district is to provide for public or quasi - public nonprofit uses and professional business and administrative offices." Permitted uses include: Schools Public Buildings Churches Post Office i Fire Station Library Museum Health services /hospitals ' Nursing homes Community Center Public recreational facilities Utility Services Professional, business, and administrative offices Funeral Homes A review of known sales in Bloomington and Edina indicates that there is little difference in the price of land that is zoned for office and related uses and general commercial zoned properties. Because of the location ' of the subject property, this is particularly true. This has to be one of downtown Chanhassen's prime sites as far as access, visibility, and surrounding properties are concerned. ' A summary of each of the comparable sales and our adjustments can be found on the following pages. These adjustments are not intended to be an accurate, scientific process that exactly identifies and quantifies the value attributes of the sales and the subject. They do reflect this appraiser's opinion and speculations regarding what are believed to be reasonable explanations for the price i variations. The adjusted sales prices lead to a reasonable and supportable conclusion of value. Categories of adjustment and the weighting rationale follow: ' There are no similar properties on the market. We followed up on a for sale sign immediately across W. 78th Street. Brad Johnson at Lotus Realty told us that an ' 8,000 square foot building is being planned for the 40,000 square foot site. He indicated that in determining project costs, the land value was figured at $66 a square foot. VALUE DETERMINANTS Sale Dates on which the comparable properties were sold have been noted. In the last three years, Chanhassen has been the scene of exceptional commercial i development along 78th Street. Prices have escalated. These escalating prices together with the inflationary rate of slightly over 3 %, have in this appraiser's opinion, meant an increase in value of 6 %. 1 29 LAND VALUE (Continued) Location is naturally a critical factor in determining the value of an unimproved site. An adjustment is made to reflect the locational attributes of the subject property compared to the comparable land sales being used. Neighborhood trends, vicinity to transportation, neighboring properties, and community factors are all considerations. Site Characteristics such as topography, shape, soil conditions, accessibility, site size, and available amenities can add or detract from the value of a site being developed for industrial use. Adjustments were made to reflect these characteristics. Land Size plays a role in pricing. Typically, the larger the parcel, the lower the price. Utilities available are another value determinant. Sales Conditions such as financing are important in a real estate transaction. In some cases, properties are purchased with minimal equity or at lower than market interest rates. Prices are generally inflated when this type of financing is offered. A sale in which the owner is in distress can also affect a sale differently than a normal sale might. In these cases, the price of the subject property is adjusted downward. On the pages following, the reader will find 5 comparable land sales all within 3 blocks of the subject property, all having taken place within the last two years. They are analyzed individually. This is followed by an adjustment form in which each of the comparable sales have been compared to the subject property in the areas described on the previous pages and weighted as to their comparability. ANALYSIS OF LAND SALES The mean adjusted sale price according to the chart following the comparable sales information is $6.90 a square foot. In weighing each of the comparable sales, the Richfield Bank sale has been eliminated because it is unusually high and in this appraiser's opinion, does not represent the true market. Comparable sale.# :4, because of its location and comparability, has been given the most weight. The subject property has been adjusted 15% downward because of the zoning difference. The adjusted price per square foot is $6.10. $6.10 X 32,075 square feet = $195,000 (Rounded) ESTIMATED CURRENT MARKET VALUE $195,000 f' I� L 30 I � LAND COMPARABLE SALE #1 ' 7820 Market Boulevard Chanhassen 1 t 9 i o !' PLAT Date of Sale Seller Buyer Zoning Land Area Price Price Per Square Foot Terms of Sale LOCATION August 1994, closing date Lotus Realty Services, Inc. Wendy's International, Inc. BG- General Business 40,388 sq. ft. $252,000 $6.24 Cash Comments: This is one of four free standing sites at the north end of the Market Square neighborhood shopping center. It is one site removed from West 78th Street. Access from Market Drive. It has approximately 8,000 more square feet than the subject. LAND COMPARABLE SALE #2 Southwest Corner of 78th Street and Kerber Boulevard Chanhassen PLAT LOCATION Date of Sale Closed 3/24/95 Seller B.C. Burdick Buyer Richfield State Agency, Inc. Zoning Planned Unit Development Land Area 62,291 square feet Price $702,382 Price Per Square Foot $11.28 Terms of Sale Cash sale, buyer assumed special assessments of $48,327 which were included -in sale price. Comments: There is now a bank building on property. Second floor contains leased general office space. This site is immediately east of the Target store on the southwest corner of Kerber Boulevard and 78th Street. Subject property is on the northeast corner of Kerber Boulevard and 78th Street. An additional $25,000 paid by buyer for grading makes price actually $12.26 per foot. Site size is almost twice that of subject. 0 LAND COMPARABLE SALE #3 963 West 78th Street Chanhassen J I •' ountnti ` ��'•�, k�ST.� i pp ' �� '-'�•• f,ii '�� /J7 ' \. (• 1. rte. ( �t! f ;{ � �� .� 71 , �., ` l fr -1 • ►M1M rr.[.fss l 1 ��'i 1 .-.. L. I StgTf. .� tM yrCy "'•� flikuJIM t u A ttn a a•uwssW7 ! Y s O W s. PLAT Date of Sale Seller Buyer Zoning Land Area Price Price Per Square Foot Terms of Sale LOCATION Closed, 4/26/95 BC Real Estate Investment, Inc. Ryan Construction Co. of Minnesota Planned Unit Development 41,265 square feet $310,365 $7.52 Cash Comments: This site is immediately west of the Target store. A Boston Market restaurant recently opened on the property. This is one of three adjoining restaurant sites that will share access through reciprocal easements. A Perkins restaurant is also up and running next door. Soil correction costs of $120,000 + were paid for through Tax Increment financing. One block west of subject on south side of 78th Street. LAND COMPARABLE SALE #4 S.W. corner of Market Drive & W. 78th St. Chanhassen -WEST TOTH F _ artier • M S p 2 3 �_ 4 Ilw� +. ,'• C t U W Q� ' C OUTLOT A p PAUL} • m _ OITLOT C ' 2 / A/ PLAT LOCATION Date of Sale November, 1994 Seller Herbert Bloomberg Buyer Market Square Associates Zoning BG- General Business Land Area 40,000 square feet +/- Price $250,000 Price Per Square Foot $6.25 Terms of Sale Cash Comments: This property is immediately adjacent to the north of comparable sale #1. It has frontage on West 78th Street. This is across 78th Street and less than 500 feet east of subject property. Building on property includes a real estate office and some small service businesses. 1 1 1 1 0 LAND COMPARABLE SALE #5 951 West 78th Street Chanhassen PLAT Date of Sale Seller Buyer Zoning Land Area Price Price Per Square Foot Terms of Sale LOCATION Closed on 4/26/95 Ryan Construction Co. of Minnesota Perkins Restaurants Operating Co. L. P. Planned Unit Development 60,133 sq. ft. $300,000 $4.99 Cash Comments: One of three restaurant sites just west of Target store. Access to west 78th Street is subject to reciprocal easements with neighboring sites. The three sites required soil correction in excess of $120,000. Correction costs were paid through Tax Increment financing. Perkins restaurant recently opened on site. Location is inferior to that of subject. f LAND SALES ADJUSTMENT CHART Note: Adjustments for the first five items in the Adjustment Analysis Grid above are cumulative and must be calculated by multiplying the percentage adjustments, then the last three additive items are netted out after the cummulative adjustments have been applied. Based upon the above adjustments, the estimated current Market Value of the subject is $6.10 per square foot $6.10 sq. ft.. X 32,075 $195,658 ESTIMATED CURRENT MARKET VALUE $195,000 1 I Sale Sale Sale Sale Sale Elements Subject 1 2 3 4. 5 Sale Price - $252,000 $702,382 $310,365 $250,000 $300,000 Special/corrections - $0 0 $0 0 0 Adjusted $252,000 $702,382 $310,365 $250,000 $300,000 Unit Size SQF 32,075 40,388 62,291 41,265 40,000 60,133 Price /SQF - $6.24 $11.28 $7.52 $6.25 $4.99 Elements of Comparison (Adjustments) Property Rights Conveyed - 0% 0% 0% 0% 0% Adjusted Price - $6.24 $11.28 $7.52 $6.25 $4.99 Financing Terms - 0% 0% 0% 0% 0% Adjusted Price - $6.24 $11.28 $7.52 $6.25 $4.99 Conditions of Sale - 0% 0% 0% 0% 0% Adjusted Price - $6.24 $11.28 $7.52 $6.25 $4.99 Sale Date - 9% 6% 6% 8% 6% Adjusted Price - $6.80 $11.96 $7.97 $6.75 $5.29 Adjustments for Location - 10% 0% 6% 0% 12% Physical Characteristics - 0% 0% 4% 0% 0% Other (Lot size, zoning, etc) - -15% -20% -15% -15% -15% Additive Adjustment ( %) - -5% -20% -5% -15% -3% Additive Adjustment (PSQF) - ($0.34) ($2.39) ($0.40) ($1.01) ($0.16) Adjusted Value (PSQF) - $6.46 $9.57 $7.57 $5.74 $5.13 Mean $6.89 Rounded $6.90 Best of fit Selectivitq Rating - 0.25 0 0.15 0.45 0.15 Selected Value - 1.61538 0 1.13608708 2.581875 0.7696077 Indicated Value by Weighting $6.10 Rounded $6.10 Note: Adjustments for the first five items in the Adjustment Analysis Grid above are cumulative and must be calculated by multiplying the percentage adjustments, then the last three additive items are netted out after the cummulative adjustments have been applied. Based upon the above adjustments, the estimated current Market Value of the subject is $6.10 per square foot $6.10 sq. ft.. X 32,075 $195,658 ESTIMATED CURRENT MARKET VALUE $195,000 1 I Il CONCLUSION The subject property enjoys a prominent corner location on Chanhassen 's main downtown thoroughfare. It is at a signaled intersection. Immediately west across Kerber Boulevard is the new Byerly's retail complex. Across West 78th Street to the south is the Market Square neighborhood shopping center. Diagonally southwest at the Kerber Boulevard/West 78th Street intersection is the new Richfield Bank building. Across Coulter Boulevard to the north is the City Administrative building and Library. It is the only remaining site along West I 78th Street in the downtown area. Downtown Chanhassen has been the scene of dynamic growth and development in the last three years. 5 recent land sales were reviewed. It was concluded from the adjustment chart that the value per square foot is $ 6.10. To confirm this conclusion, we talked with Mr. Brad Johnson regarding the site immediately across 78th Street that is soon to be developed into an 8,000 square foot retail building. He indicated that the land was put into the project at $6 a square foot. Based upon the application of the Market Data approach to value, we would conclude that the subject property has a current market value as defined earlier in this report of: $195,000 1 37 EXHIBITS Plat Map .Zoning Map Community Profile Growth Charts Appraiser's Qualifications Appraisal License • . f a J qQ KI e • _ ] Q a P A � AODI ION � — ::.� _.._ q ��•• M1 • ISIRIT04A o ` Apo t a ] • 1 ' v U i J Q. N s f� \{ n a • • , ° w ' t Z� PA a ° N • �j e 1 + 2 «F•t ] 1 0[t ` 1 SANTA • I FE ° 1 f E} to ►it f !] rur ar am w J f4 • ! a ° N ° �� • t ti W y1 • I r• ° +. ]. t a . f ^ r I t •p • a • r ai w P• �a. r f f 7 t J irw, ••w ; tl r = • 'J h 2 ? \I ] M. T•TN Sr. 1 1 1• l { I rt + a a a I j • Ia a , I I •-. _ H Sf i ...,r , •� • G a o I. �. as r ] a t IIT JA �� •j {��7 a 110' � ] ...'e wq.ww�.ciwia'm _•. Iw a a ■Q a t q = •'•` ! �� r a � • o� yti. 1 w r a a Z T � j( !t ii • a 3 ? l y 1 N • ) qV • g + O • a M • j�www �+ :i r � � •r * I - 1 Q 9• ' •�. ° + u f - a� f N a ] fr aL 777X. r D. " r ''d`• ,., r Or Ff •Ittaaa su. f • • • •`•) a f • 1 t S f • 1 _ ; • • r • ` M r a N q f • = S +y �• ;•�• s Q / �. a}y •. ••:i +J f • hr • T f CHAN. VIEW `• to if 3 `i• i •�� Q O w E 1 u • ° I a 7 • f ; + t • f • r �i - ' it 4. crAM. f f r MAITaCE a•EM : • • ' • I t = r (: SCHN IOER 1 t a C r i wlwE T c G`� •''e s 4 '� • s. r I r u r NAN. VIEW a cc a y t •j 1`, ►V ` • .' �.• ? . rrr. . A Aoo • S •••« . • • . •• r. r,.•r• , , SrWiN p _ C Mw • r I r N q t • I • • v_ lit. �r.Iw t� I � fr.NW3Ai C ♦ W . � .,1�� .. -- .....� 04a00A ACC; -7l7l1 r l t :'.rr'. • / �'. 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I. y. .-� f •'�:11WL1.1/4.i , i• •'' R S F r 1 I ._r [�'•AAqq � , =- 1112�(.p!t�, '�I /`r PARR' ' •� et AMC 0 ... .,.1 LFi .�'. w�� ;••tr • v ARR• r•ti ;_.�: RttOC RD R LAKE LUCY r+ 1 L 07US 1 .�• '�� -- �L ��:• � i -: fir. - ....._... 1 r � •y. " Sy RF p D E DO b ''ca:r:s •�� •�' : Y�, RD S NEADOw a ? „4-�I ';, LAKE -!•; •.�2' LAKE ANN ! GRE RK t'v �'� ;L. ;',; { � �t ! ' �✓i ` ;'i J. ` •4 f 1, ` \ • a.�- - I _ P40C PUD / AK ANN ~r1p'%�•- ;• M _ E_ ;; F o i R I•} �' _ 2 I-OF 1� I `�' 11111111- S4V3A^* •� ` ... - •nom "ti - P SPOG ?� ..s•+•./ �� p �r1L• ;. '� s � • '. • t�; 0B PARC L AK£ SG'SAN J `7 - 7,� \ ► — RD.. .,..;� F_ /L II SN LAKE NE - RUD -R. 1 1 1 1 1 1 1 1 1 1 1 1 1 . CITY OF CHANHASSEN LOCATION County Carvw PAQIon 11 Distance from M•inneapoifs /St PSJ 17 ndW* SW Distance from Duluth 175 nrltee SW Senate district 35 i 36 House district 358 i 36A POPULATION Area 1960 Census 1870 Census 1980 Census 1890 Census Estimate City 3,411 4,878 8 11,732 Corp. Headquarters County 21,358 28,331 37,046 47,915 380 MSA' 1,535,297 1,874,612 1.885 2,464,124 Available in Labor Force 1 Scum* d Four- d.• a... lj« r—.- .. - -•- ,. ,_ 4.6% E Electronic Assembler 1 INDUSTRY Major Employers Products /Services Employees Union % In Union Rosemount, Inc. Precision Instrument 1 Employed a a Job Title p McGlynn Bakeries Corp. Headquarters 530 Tool and Die Maker 1 15.00 Bloomberg Companies Dinner Theatre 380 Actors Eq 45 United Mailing Mailing/Pre -Sort 378 Available in Labor Force 1 1,420,183 W Data Sery Computer Software 350 4.6% E Electronic Assembler 1 The Press Printing 295 Punching Machine Setter, Oper. 1 11.23 Empak Electronics Mfgr. 295 9.72 Instant Web Commercial Printing 270 Redmond Products Hair Care Products 250 Ver- Sa -Til Contract Mach. Shop 200 M A Gedney Company Pickles 3 Dressings 150 Local 288 74 ABC /Lyman Lumber Millwork/Distr. 140 Local 221 g0 Victory Envelope Mfg./Print Envelopes 140 . EMPLOYMENT* Employment Data M Manufactsuing Occupstlons In At" Type of N Number O Occupation M Median Wage Employment E Employed a a Job Title p per Hour Manufacturing 2 257,600 T Tool and Die Maker 1 15.00 Non- Manufacturing 1 1,108,300 M Machinist 1 13.50 Tots! Employment C 1,366,100 A Combination Machine Tod Oper. 1 12.00 Available in Labor Force 1 1,420,183 W Welder & Cutter 1 11.71 Annual Average Unemployment 4 4.6% E Electronic Assembler 1 10.73 Punching Machine Setter, Oper. 1 11.23 Secretary, Exc. Legal/Medical 9 9.72 Bookkeeping and Accounting 8 8.89 IN WCNpdbnal Oda: logo LAIWAttOta Sully. Labor Survey 1JOlt: 1001 annul M� ry na. � a Salary an�yrrat * WlmponNan Stowict at l M iVry The Mhwsesota Department of Trade and Eoonamk Deve&nw3 t Chanhassen -2 TRANSPORTATION RAIL SEWER SERVICE Rail Unes Soo Line Airport is Frequency avaAable 5 days per weetk as Distance to Airport 10 Mies required Air Firelght yes Reciprocal Switching no Distance to Freight 10 miles Distance to Main Line through city Ser&ss: PiDDy-Back Service no Commer W yes Passenger Service no Charter yes Jet yes Nearest Flying Cloud Airport, 3,599 TRUCK Truck Unes 24 headquartered in metro y; (ml++rmpous /st. Paul area; over 100 airs! etas � carr;ws' Terminals 60• Airlines 10 NaY lkn; 6 local/ Electric Utility REA ngi WW; 10 air cargo; charter caries• Navigational Aids cell FAA aids for Irrtemational BUS Bus Service Jefferson, Foul - plus any value over $100,000 times 4.75 %. 8tu�nd, intra City Bus Southwest Metro Transit Runway 10,000 het oon #We Distance to CBD - WATER HIGHWAYS Navigable Water no Interstate Highways 5 miles to 1.494 Depth Federal Highways #169, 0212 State Highways #5, #101, #41, #7 Load Umhe 9 ton �wMeeeUUn A,.a stia.ura 1 1 1 1 1 1 GOVERNMENT Structure SEWER SERVICE COMMERCIAL/INDUSTRIALTAXES Organization manager council Ref��Prvice private Municipal Rats 25. 364% Total Tapwater Hardness 308 ppm Minnesota real estate taxes are based on market value, construed 0 40 (volunteer) County Rate 40.4b6% 0 0 0 0 to be the price that a willing buyer would pay to a willing salter in a City School Rate 62.658% TELEPHONE SERVICE Telephone Service U S West Communications free market. Tax capacity times the tax rate squats property taxes. ELECTRIC POWER Misoelianeous Rate 4.358% Company Telephone 612/474 -i881 Tax capacity is the value of the property under $100,000 times 3.1% Electric Utility REA Total Fate 132866% plus any value over $100,000 times 4.75 %. GOVERNMENT Structure SEWER SERVICE Emplayrnsint Organization manager council Ref��Prvice private Pumping Capacity 4,450 pal /min Regular Employees Part Time Employees Total Tapwater Hardness 308 ppm Fire Department Police 0 40 (volunteer) Budget $$3,400,000 Industrial Plans Approved by Planning Commission and Sheriff 0 0 0 0 City Council City 48 5 Insurance Rating 6 TELEPHONE SERVICE Telephone Service U S West Communications O1K 25 ,000; $6.50 minimum WATER SERVICE SEWER SERVICE Municipal Water Source wells Storage Capacity 3,800,000 cal, Sewer Santa Metropn Waste Control Pumping Capacity 4,450 pal /min ComirrJealon Capacity of Treatment Plant • Total Tapwater Hardness 308 ppm Average Demand - Average Demand 1,200,000 gal /day Peak Demand - Peak Demand 2,500,000 gal /day Sewer Use Charge $240 per thousand; minimum industrial Water Rate $1.10 per thousand up in 512.00. 25,000; $1.30 per thousand TELEPHONE SERVICE Telephone Service U S West Communications O1K 25 ,000; $6.50 minimum ELECTRIC POWER 04 SERVICE Electric Utility Northern Stme power Company Telephone 612/474 -i881 Gas Service Minnegasoo Telephone 612/372.49M Electric Utility REA Telephone $12/492 -2313 II 11 COMMUNITY SERVICES ' Chanhassen - 3 ACCOMMODATIONS* Hotels 0 Rooms 0 Motels 2 Motel Units 72 MEDICAL SERVICES Hospital Beds 9,683* Nursing Home Beds 18,962* Doctors 8,688* Dentists 1,742* Nearest Hospital Shakopee, S miles; 31 In metro YM PLACES OF WORSHIP Protestant 3 Catholic 1 Jewish 0 Other 1 MEDI (MEETING SPACE Newspapers - Daily 3* Weekly 68* Radio Stations - AM 23* FM 20* Meeting Facilities 8 Capacity of Three Largest 500, 250, 200 :221 1 C I /Mtok and 24.022 room* BANKING /FINANCE Financial Institutions and Deposits Chanhassen Stabs Bank $18 selilton; 101 oommerclal banks; 62 savings and loan branch of ice&, 3 home oMfoss* MAIL SERVICE Past Of&» (Class) Arst Express Mali Service yes RETAIL SALES Retail Saba in County $159,338,111 (19") $172,876,323 (1989) $196,791,434 (1990) Retail Sales In City $90,443,140 (1990) Per Capita hoome $18,902 (1989) COMMUNITY ACTIVITIES Facilities /Festivals Chanhassen Dinner Theatre, U of M Landscape Arboretum and attractions associated with a metro area of 2 million population Including major Service Organizations pro or o sports. 6 m►aj organization EDUCATION Facts and Facilities Coldest/Hottest Months Prof" of Schools Coldest Month Hottest Month Pupil to Teacher Ratios: Month Janwry July Average Annual Snowfall 42 Inches Moan Daly Maximum (deg. F) ZZ i3 Average Annual Precipitation 24 Inches Dementary 228/1 High School 23.9/1 Number Enrollment Grades Included High School Graduates Elementary 1 458 K -5 Going to College . College Graduates - Junior High 1 697 6-8 Nearest Technical College Six Metropolitan Area Senior High 1 1,090 9-12 Technical Colleges TC Specialty Wlde variety of courses, Parochial 1 150 14 oontact Ntr or TC for listings Distance to Technical College 15 miles 0 0 0 Nearest Commmunity College 4 In metro arw Distance to Community College 15 mites Nearest University 17 00149e6 and unlverstties* Distance to University 15 miles *1Lf.nw jo.. A— R...:...�. CLIMATE Facts and Figures Coldest/Hottest Months Number of Days Between Coldest Month Hottest Month Killing Frosts 167 Number of Days Above 90 deg. 14 Month Janwry July Average Annual Snowfall 42 Inches Moan Daly Maximum (deg. F) ZZ i3 Average Annual Precipitation 24 Inches Moan Daily Minimum (dog. F) 2 60 r 1' 111 111 Population In Chanhassen grew from 4,879 In 1970 to about 13,000 In 1992. Some projections put population growth at nearly 30,000 for 2010. Employment opportunities have grown tremendously over the years. Then were - under 1,000 ,jobs in the city limits In 1970 and there an roughly 6,000 now. f QUALIFICATIONS OF NELSON L. ANDRUS Licenses CERTIFIED FEDERAL GENERAL license which certifies me to appraise all types of real property regardless of complexity or value. Minnesota License #4000065 Formal Education BA. Degree from Cornell College Post Graduate work at University of Iowa ' Professional Affiliations and Designations National Association of Independent Fee Appraisers Senior Designation. Currently certified through 1996. Minneapolis Board of Realtors Former Director, Officer, and Committee Chairman. Former Chairman of Multiple Listing Service Former Board Member of Commercial and Industrial Exchange Minnesota and National Association of Realtors Appraisal Section Member ' Instructor of Industrial Real Estate Course Certified Commercial and Investment Designee Minnesota Association of Professional Appraisers ' Appraisal Data Network Former President of the Mid - Continent Chapter and member of National Appraisal Committee, Society of Industrial and Office Realtors. Professional Experience and Education Real Estate Appraiser and Broker in Twin Cities since 1957. Over 23 years of experience in ' Commercial and Industrial Real Estate Appraisal Education includes: Professional Standards of Appraisal Practice Income Property Appraising, Courses I and II ' Cost Approach to Commercial Real Estate Industrial Real Estate, Courses I and II (80 hours) Investment Real Estate, courses I, II, and 111 (120 hours) Financial Analysis Principles and Practices of Environmental Risk Screening and Reporting Capitalization Theory and Techniques Annual Industrial and Office update seminars sponsored by National Association of Industrial and Office parks and Minnesota Shopping Center Association Appraisal Experience Experience includes appraising and financial analysis of many types of real estate including: Office/Production facilities Shopping Centers Super Markets Restaurants Office Buildings Medical/Dental Buildings Post Offices Motels Apartment Buildings ' Warehouses Office /Showrooms Industrial Parks Free Standing Retail Bldgs. Service Stations Auto Repair Facilities Banks Churches Land Development Golf Courses Recreational Facilities Schools i Clients Since advent of FIRREA, bulk of business has been with LENDING INSTITUTIONS and GOVERNMENTAL AGENCIES. t GOVERNMENTAL AGENCIES Resolution Trust Corporation U.S. Department of Housing and Urban Development Minnesota Department of Transportation Court Appointed Commissioner In both Hennepin and Carver Counties City of Chanhassen City of Chaska City of Minnetonka City of Eden Prairie Carver County City of Shorewood City of Tonka Bay City of Waconia Minnetonka School District City of Watertown Orono School District Watertown /Mayer School District FINANCIAL INSTITUTIONS Norwest Bank State Bank of Young America First Bank Virginia Surety Company Century Bank Marquette Banks Security State Bank First National Bank of Waconia First National of International Fails First State Bank of Excelsior First Minnetonka City Bank First National Bank of Chaska AmeriBank 1st National Bank of Wayzata Citizens State Bank Richfield State Bank Zapp Bank of St. Cloud Nicollet State Bank Long Lake State Bank Several others LOCAL BUSINESSES (Partial List) Northern States Power Company Nordic Track Westinghouse Corporation Super Value Stores Eaton Corporation Lyman Lumber Company Ridgeview Medical Center United Telephone Company American Linen Company American Crystal Sugar American Telephone and Telegraph Burger King Corporation MTS Osmonics, Inc. M.A. Gedney Company Cenex Cooperatives 0 r 17 -1 STATE OF MINNESOTA DEPARTMENT OF COMMERCE 133 East Seventh St St Paul, MN 55101 (612)296 -6319 APPRAISER LICENSE ID#l4000065 C'ERT GENERAL REAL PROP Expires: 8/31/96 30 Ilrs CE due by 8/31/96 NELSON L ANDRUS 14601 ATRIUM WAY 326 MINNETONKA, MN 55345 -0000 1 u STATE OF MN DEPT. OF COMMERCE 133 Ead Sevcrrllt St St. Paul, MN 55101 (612) 296.6319 APPRAISER LICENSE 1104000065 CERT GENERAL REAL PROP Expires: SA 1196 30 Hrs CE due by 8131196 NELSON I. ANDRUS DBA= ANDRUS AGENCY 17809 IlUTCHINS DR MINNETONKA, MN 55345 -0000