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10. Review Appraisals for Carrico Property . 10 CITY OF r s 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 ' .. (612) 937-1900 1 47 IiP' MEMORANDUM TO: Don Ashworth, City Manager "0 4g`1 1 FROM: Lori Sietsema, Park and Recreation Coordinator DATE: October 17 , 1989 /003 SUBJ: Carrico Property 1 The City recently authorized a second appraisal on the Carrico property. Such was prepared by Harvey Swenson, who valued the 11 acre site at $85 , 000 . The City' s first appraisal valued the prop- erty at $58 , 000 and Mr . Carrico' s appraiser valued it at $330 , 000. 1 The Park and Recreation Commission reviewed the appraisals and, based upon Roger Knutson ' s confidential letter (attached) , felt that the price determination by the Condemnation Commissioner was too risky. Given the large difference between the City' s appraised value and Mr. Carrico' s , they felt that if the price was set at something in the middle, the property would not be affordable. Although the Park and Recreation Commission is committed to ' acquiring park property in the Pheasant Hills/Lake Lucy Highland area, they recommended that the City discontinue pursuance of the entire Carrico property due to its high cost. Staff feels that with the limited amount of undeveloped land in this area, that efforts should be made to acquire a portion of the property through the development process . 1 I 1 I I 1 U/t'ED/TED CHANHASSEN PARK AND RECREATION COMMISSION 1 REGULAR MEETING OCTOBER 10, 1989 II • Vice Chairman Boyt called the meeting to order . MEMBERS PRESENT: Dawne Erhart, Jan Lash, Sue Boyt, Curt Robinson, and Ed 1 Hasek MEMBERS ABSENT: Jim Mady and Larry Schroers ISTAFF PRESENT: Lori Sietsema, Park and Rec Coordinator and Todd Hoffman, Recreation Supervisor . IIAPPROVAL OF MINUTES: Robinson moved, Lash seconded to approve the Minutes of the Park and Recreation Commission meeting dated September 12, 1989 as 1 submitted . All voted in favor except Sue Boyt who abstained and the motion carried. IIREVIEW APPRAISAL FOR CARRICO PROPERTY. Public Present: Carl Carrico Frank Cardarelle IISietsema: Basically you have the information in your packet of the three appraisals that were done. At this point what we need to decide is whether we' re going to make a recommendation to City Council to proceed with I condemnation proceedings or not to. One way or the other . We need to make recommendation. Carl Carrico is in the audience. Do you have any comments that you want to make? IICarl Carrico : I haven' t seen all the appraisals. IISietsema: Well you saw the first one for $58,000.00. Carl Carrico: Yeah but he agreed that wasn' t an appraisal . I haven' t seen the one. ISietsema: The second one came in at $85,000.00. ICarl Carrico: Okay. Sietsema: Jim isn' t going to be here tonight. He asked me to make a I couple comments. Basically he feels we should go for it. There's not other property really available that's going to serve this purpose. It's the luck of the draw as fax as what your condemnation commission is going to consist of but he feels that it's a worthwhile piece to pursue. IErhart: Do we have to, at the time of condemnation then, have the money to purchase it? Sietsema: Yes. Park and Rec Commission Meeting October 10, 1989 - Page 2 Boyt: Will the money be available? i Sietsema: It depends on, we may have to ask the Council to kick in out of the general budget if it were more than what our fund could afford. ' Robinson: My opinion is, I started reading this 85 page document and I got to where it was talking about the price and I quit. My opinion is that it's too expensive and I think we should drop it now. Lash: I'm not real familiar with this whole thing and the whole process but I tried to come up with what I thought would be, I don' t know how this ' court or whatever it is operates, but if they came up with a mid-price between the City' s appraisal and the owner ' s appraisal , you'd come up with about $195,000.00 which is like way more than I guess I 'm comfortable paying so I would agree with Curt to drop it although I 'm wondering if there's the posibility of just acquiring a portion of it and not getting the whole 11 acres. Getting as much as we think we could afford or otherwise back in the packet there' s somewhere they have a real estate picture of another piece. Maybe you guys looked at this. I don' t know but it had Lot 11, Block 1 in Lake Luch Highlands. 2.5 acres. Of course it' s a lot smaller than what we' re looking at but that's $47, 500.00. That wool be something for the neighborhood. . . In all good conscience, I don' t thin I could go for that one. Boyt: Are we discussing the Carrico property and whether or not we want tc' recommend condemnation? Hasek: . . . I think we need a park but I don' t think we need it that bad though. I think just looking over the prices and talking about it with Mark a little bit, first of all the appraisal that they got. . .they' re all in Eden Prairie. We're in Chanhassen. The simple fact is that currently II it is outside the MUSA line and. . .but I don' t see the point in going through the hassle. . .and I don't think we need to let this particular landowner . . . Erhart: I would go along with that. I don' t feel comfortable with the property. I 'd like to earmark something. I realize we don' t have anythin in the area but I 'd like to find another piece of property or a few different pieces of property and where they join in the middle, I'd like t earmark that and at the time of development, ask for those land dedications and we won' t have to pay for something. Get it through dedication at the I time of development. Hasek: I think we can do exactly that if we go across CR 117. Between there and CR 42. Spot a park in there, a decent size park, I think we can ' cover the radius for a neighborhood park in that area. Have a trail down the side of CR 117, if it' s not taken away. A trail on Lake Lucy Blvd. . .so we should have a way to get in there if that doesn't disappear. ' Boyt: I'm not thrilled with the piece of property. I don' t think it' s a wonderful piece of property for a park so I'm not going to recommend condemnation. I Park and Rec Commission Meeting October 10, 1989 - Page 3 i Sietsema: I need a recommendation one way or the other . It ' s ultimately up to the City Council . They authorized the appraisals to be done. Robinson: Based on the opinion of the Commissioners, I would recommend that we drop pursuing the Carrico property. Hasek: Why don' t we extend that just a little bit if we can to. . .we spot another park in another location and have staff investigate that. Make that a part of this so it doesn' t look as though, it doesn' t seem as though we're just dropping the issue because I don't think we are. We' re still ' looking . Is that alright? Robinson: Sure. I think we've got to do that anyway. I don' t think we' re ' going to drop it because we don't want a park there. Sietsema : So the motion was made by Curt to drop pursual of the Carrico property and to continue to look for a neighborhood park property in the area of Lake Lucy Highlands and Pheasant Hills. Hasek: Second . Robinson moved, Hasek seconded that the Park and Recreation Commission ' recommend to drop pursuing the Carrico property and to continue to look for a neighborhood park property in the area of Lake Lucy Highlands and Pheasant Hills. All voted in favor and the motion carried . Carl Carrico: Thank you for making a decision. I 've been fooling with this piece of property since 1971 and I 'm tired of fooling with it. I know the price seems high to everybody but it' s something that I have offers from people that will buy the property for that so I 'm not trying to, I don' t have a mask on or a gun but I appreciate you at least giving , let' s get rid of it. Thank you. PLACEMENT OF ARCHERY RANGE. Hoffman: Two weeks ago I said this was more near and dear to my heart but I have to let you know, Lori did most of the footwork but was nice enough to let me bring the report back to you just to make us look like we're working together here. We sat down with Scott Harri of Van Doren, Hazard and Stallings and Lori asked him to look into a site in both Lake Ann and Lake Susan to see which would be the best potential site. The map was not included in your packet but there's one at your desk there now this evening. The original site we talked about for the most part was behind the barn at Lake Ann. This large of archery range just wouldn't fit in that area and it seemed to be more appropriate in Lake Susan. Larry did stop by today and we drove out there to take a look at the area. That temporary access road does go right through there at the present so you can't see exactly what the lay of the land is but you can get a good idea of how it would look and it does allow for open visibility. There' s I ;.-i . 1 CITY OF i4 1 • i'S , ,_ : 10%\ , ., . 1 , ,,. ki), 40. ... 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 II (612) 937-1900 1 MEMORANDUM 1 TO: Park and Recreation Commission I FROM: Lori Sietsema, Park and Recreation Coordinator DATE: October 4, 1989 1 SUBJ: Carrico Property The City it has received a confidential letter from the attorney' s II office regarding acquisition of the Carrico property. If we wish to acquire this property, a motion is necessary recommending that II the Council initiate condemnation. (Note: The attorney' s letter is a privileged client/attorney 1 document and as such has been marked confidential. Therefore, the Commission is advised not to distribute II the letter. ) I 1 1 I I I 1 1 AM 1 LAW OFFICES I GRANNIS, GRANNIS, FARRELL & KNUTSON DAVID L. GRANNIS- 1874-1961 PROFESSIONAL ASSOCIATION TELECOPIER. DAVID L. GRANNIS,JR. - 1910-1980 POST OFFICE Box 57 (612)455-2359 403 NORWEST BANK BUILDING ELLIOTT B KNETSCH VANCE B. GRANNIS MICHAEL MAYER VANCE B. GAANNIS,JR.* 161 NORTH CONCORD EXCHANGE J PATRICK A.FARRELL SOUTH ST. PAUL, MINNESOTA 55075 DAVID L. GRANNIS,III ROGER N. KNUTSON TELEPHONE(612)455-1661 DAVID L. HARMEYER August 21 , 1989 *ALSO ADMITTED To IPRACTICE IN WISCONSIN CONFIDENTIAL 1 Mr. Don Ashworth Chanhassen City Hall 690 Coulter Drive, Box 147 Chanhassen, Minnesota 55317 RE: Carrico/Franklin State Bank 1 9 .76 Acre Site North of Lake Lucy Road Dear Don: 1 Under separate cover I have sent you Harvey Swenson ' s appraisal of the above property. Because the City 's appraisal is roughly 75% lower than the appraisal obtained by the landowner, I Ido not think negotiating a price will be successful and that condemnation will be necessary. Please let me know if the City wishes to proceed to condemn the property. You should be aware that we could end up paying a lot more than our appraisal says the property is worth. Our appraisal is based upon an assumption that the property could not be brought ' inside the MUSA line and could not be served by public sewer. The landowner' s appraisal assumes that sewer would be available. If the landowner convinces the condemnation commissioners, or ultimately a jury, that the land could be sewered, then the landowner ' s appraisal would be closer to the real value of the property than would our appraisal. 1 Very truly yours, GRAN I PT FARRELL 1 NUTS° , B 1 Roger N. Knutson RNK:srn I .:.� AU G 2 2 1989 1 CITY OF CHANHASSEN Legal Description 1 That part of the Southeast k of the Northeast k of Section 3, Township 116, Range 23, Carver County, Minnesota, described ' as follows: Beginning at a point in the south line of said Southeast k of the Northeast k, distant 330.0 feet (20 rods) West from the Southeast corner of said Southeast k of the Northeast k; thence North 445.50 (6.75 chains); thence North 8 degrees 30 minutes East 259.38 feet (3.93 chains); thence West 1037.52 feet (15.72 chains); thence South 694.32 feet (10.52 chains); thence East 990.0 feet (15.0 chains) to the point of beginning, EXCEPT that part described as follows: Beginning at a point in the west line of said Southeast k of the Northeast k, distant 310.0 feet north from the Southwest corner of said Southeast k of the Northeast k; thence north along the west line of said Southeast k of the Northeast k a distance of 384.32 feet; thence east 376.0 feet to a point 697.24 feet north of the south line of said Southeast k of the Northeast k; thence south parallel with the west line of said Southeast k of the Northeast k a distance of 384.32 feet; thence west to the point of beginning, and EXCEPT that part described as follows: Commencing at the Southeast corner of said Southeast k of the Northeast k; thence west along the south line of said Southeast k of the Northeast k a distance of 330.0 feet to the point of beginning; thence north at a right angle a distance of 260.00 feet; thence west parallel • with the south line of said Southeast k of the Northeast k a distance of 160.00 feet; thence south at a right angle a distance of 260.00 feet to said south line; thence east along said south line a distance of 160.00 feet to the point of beginning. 1 I I I 1 1 TAX DATA IL General Non-Homestead Taxes $604.24 111 Special Assessments $521.76 1 TOTAL $1126.00 Outstanding Special Assessments Lake Lucy Road $1771.87 after' 1989 Pending Assessment Lake Ann intercept or '$1840 1 I ZONING Rural Residential (agrucultural) at the present time. ' To change zoning, the development would have to be approved by the Metropolitian Council and the Chanhassen City Council. I I I I I I I • I 1 1 HIGHEST AND BEST USE The following is the definition of highest and best use. The most profitable likely legal use to which a property can be put. The opinion of such use may be based on the highest and most profitable continuous use to which the property is adapted and needed, or likely to be in demand in the resonably near future. However, elements affecting value which depend upon events or a com- bination of occurrences which, while within the realm of possibility, are not fairly shown to be resonably pro- - bable should be excluded from consideration. Also, if the intended use is dependent upon an uncertain act of another person, the intention cannot be considered. The highest and best use of the subject property is for the development of a single family subdivision. SITE DATA The subject is an irregular shaped parcel of land that has a rolling terrain and is partially wooded and has low land in one portion that is designated as a ponding area. the site is capable of being developed into 20 building sites. No soil test borings were available to the appraiser, however, there are indications that soil corrections are required along Lucy Lake Lane, legally described as Lots 1 & 2, Block 1 & Lots 1 thru 7, block 2. Carrico Addition. This is the proposed plat of 20 lots. It is also assumed that sewer & water will be available to each site. It is assumed that no Easements other than utility Easements exist. I �• i 4 1 !! 1 MARKET DATA LAND SALES The Market also known at the Direct Sales Approach is the only method of appraising the subject property. It reflects the act- ' tions of buyers and sellers both with knowledge of the market and neither being under abnormal pressure to buy or sell. The follow- ing sales reflect a value of Lot sales retail and their develop- ' ment cost. These are listed as follows. See attached. 1 1 1 I /I 1 1 1 1 i 1 1 5 MARKET DATA LAND SALES The following land sales consist of single-family residential ' building sites. Sale No. I ' Address: - 7290 Prairie View Drive, Eden, Prairie, MN. Legal Description: Lot 8, Block 1, Prairie View. PID 10-116-22-24-0023. Zoning: R - Single-family Residential. Buyer: N/A 1 Seller: Bob Carling. Date of Sale: 9/16/88. Lot Size: 100 x 220 = 22,000 S.F. 1 Sale Price: $29,000. Special Assessments: $12,921 ' Percentage Ratio of Special Assessments: 44.5% of sale price. , Information Source: Agent selling property. • Comments This property is located.. on the north side of Valley View Road. 1 • It is on the west side of Prairie View Drive. It is an older neighborhood with lower values which reflects a lower saleprice. - The assessments are new and were assumed by the buyer. No other development costs were available. 1 6 1 1 II i1 MARKET DATA LAND SALES (CON.) Sale No. 2 • 11 Address: 6225 — 6258 Ginger Drive, Eden, Prairie, MN. • ' Legal Description: Lots 1, 3, 4, 5, and 8, Block 2, and Lots 6 and 7 Block 3, Timber Creek North. Buyer: Numerous buyers. Seller: Brace Helgeson. Date of Sale: April 1988 (Approimately) Sale Price: $43,000, $55,000, $54,000, ' $56,000, $63,000, $68,000, and $68,000. Total $407,000. ' Average Sale Pricer $58,142. Special Assessments Range from $15,000 to $20,000 & Development Cost per lot. Average assessment is $17,500 per lot and equals 45 % of sale price. Terms: Cash. Lot Size: Lots vary in size and are irregular—shaped. Information Source: Seller. Comments This subdivision is located East of the subject site and is a new development with vacant lots still for sale. • I I i - I I 7 MARKET DATA LAND SALES (CONT. ) Sale No. 3 Address: Starrwood Circle, Flesher Circle Research Road, and Mitchell Road. Legal Description: Starrwood Addition, Lots 1 — 14, Block 1; Lots 1 — 16, Block 2; Lots 1 — 8, Block 3; Lots 1 — 5. Block 4. Buyer: Numerous buyers. Seller: Lyman Development and II Cardarelle Associates. Date of Sale: January through June of 1988. Total Number of Lots for Sale: 43 & 28 are sold. Terms: Cash. ' Lot Size: Irregular. Information Source: Seller. ' Percentage Ratio of Special Assessments 40.5% of sale price. & Development Cost Comments These lots are high, irregularly shaped, and have a rolling terrain. Many of the lots have a view overlooking Staring Lake and McCoy Lake. The terrain and topography is rolling from north to south. Streets are curving and therefore, create irregular—shaped lots. The land is partially- wooded. 1 1 j 1 8 MARKET DATA LAND SALES (CONT.) Sale No. 4 Address: Blossom Roadway Eden Prairie, MN. Legal Description: Lots 1 — 6, Block 1; Lots 1 — 5, ' Block 2: Lots 1' — 3, Block 3, ' Blossom Ridge 2nd Addition. Buyer: Numerous buyers. ' Seller: G. William Pearson Date of Sale: Within last four months. Sale Price: $44,000 — $55,000. Typical Sale Price: $55,000. Terms: Cash. Lot Size: Irregular—shaped due to two streets extending through subdivision. Percentage Ratio 11 of Special Assessments �0 of sale price. & Development Cost 7.60 1 Information Source: Land surveyor. Comments Rolling terrain and partially wooded neighborhood. homes are in the . $200,000 price range. 1 • 1 9 • r MARKET DATA LAND SALES (CONT.) Sale No. 5 11 • Address: Blossom Roadway and Bennett Place, • II Eden Prairie, MN. Legal Description: Lots 1-6, J & L Subdivision, Eden Prairie Acres. Buyer: Numerous buyers. Seller: Cardarelle & Associates, Inc. 1 Date of Sale: 9/16/87, 4/24/87. 4/14/87, 12/3/87. Terms: Cash. ' Lot Sizes: Approximately 100 x 140 each. Sale Price: $35,000, $36,000, $38,500, $39,000. Percentage Ratio ' , of Special Assessments Average for five lots: 55%. & Deveopment Cost Comments • Lot 7 is a double lot improved with an older home and has been excluded from the analysis. Lot 2 has also been excluded since it is not con- sidered an arm's length transaction. These lots have a slighly rolling terrain and are wooded. • • 1 1 • . 1 10 r• II !! . k I IMARKET DATA LAND SALE (CONT. ) Sale No. 6 IIAddress: Wood Duck Lane, Teal Circle, Pintail Circle & Wood Duck Circle IILegal: Phesant Hill 4th Addition •Lot: Block: Sale Price: Date: Buyer: 1 1 1 $31,900 NA NA 3 1 $32,500 1-30-89 Worth Construction II4 1 $37,500 1-30-89 Worth Construction 6 1 $37,900 1-30-89 Worth Construction I 10 1 $36,000 1-30-89 Worth Construction 11 1 $37,900 NA NA 1 2 $31,900 2-22-89 Scotty Builders I. 2 2 $30,900 2-22-89 Scotty Builders 2 3 $35,900 2-22-89 Scotty Builders II8 3 $35,000 2-12-89 Koester Construction 1 3 $35,000 2-27-89 Richard Perkins IINumber of Lots: 11 Total Sale Price: $382,400 Average Sale Price: $34,764 (Rounded $34, 750) ITerms: Same as cash. Lot Sizes: Vary, all are large lots. IISeller: Kinglehutz Construction Company I Development Cost : The development cost amounted to $14,000 per site on the average excluding profit of approximately 10%, II therefore, $34,750x10%= $3,475+$14,000 or $17,475 which represents approx- imately 50% cost per site. Comments ll These sales are to builders and may reflect a slight discount of less profit than 10%, a safe range of cost in my opinion is 45 to 50% per site. ` I r 11 II • • ANALYSIS AND CONCLUSION (CONT.) The estimated cost to develop the lots at 45% reflects a cost of: $322,200. The lots along Lake Lucy Lane and Carrico Lane require soil: correction amount- ing to: $60,000. Total estimated value of land ready for subdivision develop- ment is $333,800. • The following is a break down for acreage and lot cost based on 20 lots. ' $333,800 divided by 9.76 AC = $34,200 per AC $333,800 divided 20 lots = $16,690 rounded to $16,700. Total Estimated Market value of vacant land in its state of condition: THREE HUNDRED THIRTY-THREE THOUSAND EIGHT HUNDRED DOLLARS ($333,800) • 1 1 1 1 1 14 r 1 I ANALYSIS AND CORRELATION In the process of appraising vacant land such as the subject, there are two methods. One is average sales that may not be availabel and difficult to find. The other is lot sales with development cost data available. The second method applied to the subject. No current average sales were available at this time. The terrain, topography soil conditions and development cost have all ' been considered and reflect a total estimated market value of: THREE HUNDRED THIRTY—EIGHT THOUSAND EIGHT HUNDRED ' ($333,800) 1 1 I I 11 • 1 I 1 I f i 15 Comparable Land Sales I .. ,: I IL`v •r.• ,l ��._ Ilf _ ` _\� 1 1 wet I 1 el ...I 1 . �/ 1.1"7-.. '� 1 i� a') \ •M. t s ......_ 'ID +,r.x.a„�� 1•1 + fi�2 ( °1 �r.!;1' \• . \( •.41._14 •.� 11 8* _ i 4,664.4 4 .,,... 1 11.44' ' 1 1 C1/4)46 rms. 3tij l:;^?t ,t r •' t ....°\.O . 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IN 1.!1411 -1 IIl.nrl.le 'i ✓11•...111 1111~ %/ LG n ."�1 L 1A1 liorril- i+1 1,... p T w 11 • t C7 • •N L c7 2 e r• if rt 1.0 11 1,11.,1! 1 -F i+: s f" ® w y�5uble� °•.�� ' \, �•,� a ,, �I:::r +� p11�, • , -ONI i•L 1:115 Xy-�` 117E �5(t}(? .w'• R I i i Ch.nM s.1. -----"--:."c. •\ -\ IA t ri`:_:. 1 _H1 %s;r (( - e )�Y ' 'r1 •��: _� S `r1 Ilnf� 1• -'IA.a..� If] • n►Y,•:,O- I_i) .. � xt .tom • �.' 1 CV I' t • (��/ + ax 2/e• h.eN 7l g r«. t .!1{ Z •` . ; ; '101 1 ' .l Cr L TirrIT•1 ^ �_ 1 >C• D b 4Y O✓ 11 r ' onM L ,V, Iry.i fc i •e/ •wwu i' f. awake �� 11 1 r 1111,. .Y �c•.a ,. tt 6I OW 41411 • I..r• , \ r• I' !f 441.446.L / a !�' Ow l --- ' �`.. /_�J�•lY `N,.w�fi•r, "7 t: � �� .b•rwlgM(�_'% `� ♦ t .w - • ,'/ L. 1111.. I ii i !�L• I r - '✓ice :iw. 6 / .1.^.:r 1 t`', •i 1.•r r1 • [ 11+11 N ....32,....„../.7,-....;)- �, r ry r� / I t-�1 -1.l► .,�= ti_.1- t \C u T •T ,_ ,k.)A ,`i7_ as: j` ..1.:,'�;; ;AL, L. - ( rI 4rir n`;.r �.0 I' I cLL _•'11�.i. 1.-,n `x )51 8 I• r..-.w....•1.1111.0..•IMO. �� 1 I 1 • THIS REPORT k IS SUBJECT TO THE FOLLOWING LIMITING CONDITIONS The legal description furnished me is assumed to be correct. If the exact ' description was not available, an "approximate" legal description will be found in the report, in which case its accuracy should not be relied upon. No responsibility is assumed for matters legal in character. The title is assumed to be marketable, but I have made no'title examination, and items such as deed restrictions or unusual easements not readily apparent have not been taken into consideration in the valuation unless divulged by the client and ' so stated in the report. All existing liens and encumbrances have been dis- regarded, and the property is appraised as though free and clear and under • responsible ownership and competent management unless otherwise stated. Any drawings or sketches are. included to assist the reader in visualizing the property. While every effort is made to maintain accuracy, measurements are sometimes distorted in reproduction, thus these illustrations should not be ' used to obtain exact dimensions. I have made no� §urvey of the property and assume no responsibility' in that regard. Information furnished to me by others, and on which I have replied, is believed to be correct, but I cannot guarantee its accuracy. Possession of this report or a copy thereof does not carry with it the right of publication, nor may it be used or quoted without the consent of the appraiser or the client, and in any event, only with proper qualification. , Testimony as an expert witness or attendance in court because of this appraisal is not required unless arrangements have been previously made. The distribution of total value between land and improvements, or statement of land value alone, applies only under the program of utilization stated in the report. This may be, but is not necessarily, the existing use. The separate valuations for land or buildings must not be used in conjunction ' with any other appraisal as erroneous conclusions could be drawn. Any opinion of value herein stated is the appraiser's best estimate based on. information available at that time and anticipates the use of a real estate broker qualified to dispose of such property. An owner acting for himself may not achieve as high a• figure--all other things being equal. • ' Equipment and improvement items are assumed to be within minimum property requirements. No responsibility will be taken by the appraiser if these do not meet state and local code requirements or not in operating condition, but have been taken into consideration in the appraised value. ' This is only an opinion of value of the property appraised. • 1 i CERTIFICATION I hereby certify that I have no financial interest or bias, either present or contemplated, in the subject property and that neither the employment to make the appraisal nor the compensation is contingent upon the value of the property. I certify that I have personally inspected the property and that according to my belief and knowledge, all statements and information in this report are true and correct, subject to contingencies and limitations stated elsewhere in this report. 1 1 Appraiser _ 3 /- ' 9 1 Date 1 1 1 I , \ 4 TH . i ; ( . I . I •••••.., • N s'N i __I \ • \ I ! I , - _— to e.4.1 . • . 1\ 1 - ---\\ „.”- . . • -.". r---iii.6-3.-.--i r----sta. - • • -I 1-•----rittr--— / ' •1 i vt • ' , 1 i I I I I - ‘ \ .'''' \\i'2 . . \ . .5 1 I iy 1/.79e .1.. c. .. I I 2' i ;.; 1• 1,-3rG so, ! rrrtre:.:3i l # I I .1 //1 1 . t, I - I !I \....\‘...,"\ ‘-..N sl. / ' 1 .. 1 i L--___,-.: :-.7:c. 4::it-•_._:.____..23 I ..' , / , k;:, ,,/./.• - - .• C.., ,r, • _ t C 4' , . • I ".. ,____.-•••:::-;:-7., , \ \\ . • . \ 10 / ' 1 • ir 1 I .f. .II lir \ : \' '''''--,- ...1... - g) ,.„.. I .., s,............. \ ..J.... mar __.i•in.\sgs 1.304,N.11. I . ,•-,,1 4.' • •„•., 1 I I I, i //'. I/ . \• I,I ,...-,,7. 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' --, .1 i • •y i II. i • - k(t , - - -. .. ....11 ,.Li , . , 1 , . • - - - .. V.'47' ,.- .._____ - -4,...... „. , 1 -.... . 1 , : --;:, 4.... .. , . ,...„ . ., „,..,,.i,.., •,_:„.„?..._ .,..,,,, -P •'. a Ai.. , .. " ;••5._--•...--._--,t---.--,_;.--..4-.•-....`•.;-,-*-.---_•-.__.-4.--.-..1,:,*-" _ • .t- .- I•.I.,.•. • • -e.• l i ••.••t,• •,- _i t1-F!-N,,4-_-.•.--.'.,......-. -- ,-.-... ..• :.....--..- • -•.. , . • . • ■ • -4 .— , ,Ill_nia".■?-5.- - A -'' ` ■ 1%1Aiii_:.,,, .4 - -,i -., - 7.- ' 1-''i -.: ... . • 4.4 . .").-... ^ "... •! I --S. . -„........r- , _ ri.a:-.-L-.'.--..:-,.-„,,,i,` --g-r- • : - - . - --41 - ,.... ---.--,•,-_ F..;.. '':':-.'2.14i*—,i.. .1' .11:1 1...-f — . . .--- . —.. II , QUALIFICATIONS OF KENNETH P. LEWIS, S.R.P.A. It ,;, IIProfessional Society of Real Estate Appraisers lksber:;hip IIEducation Courses Carq)leted Principles and 'Techniques - Society of Real Estate Appraisers. Aparineut House Course - Society of Real Estate Appraisers, 1973. Obtained Senior. Residential Appraiser designation in 1968. Obtained Senior Real Property Appraiser designation in 1975. Course I - American institute of Real Estate Appraisers (Basic Principles, Methods & Techniques - Lincoln, NE, 1970). I . Course II - American Institute of Real Estate Appraisers (Urban Properties - St. 'llrarns College - St. Paul, MN, 1970). Course XI - American Institute of Real Estate Appraisers I Case Studies in Real Estate Valuation, Part I - Bloomington, IN, 1982 (audited). R/rl-b Seminar. - AIRfA (1986) Appraisal of Land Acquisition - Minn. Dept. of Natural Resources (1986) IExperience UMpi.oyment experience includes two years in the real estate business with a large builder and real estate canpany, involving caunercial, industrial, residential, and subdivision dcvcloprrcut. I Experience in the appraisal field started in 1961 with the B.F. Tonskenrlrer Carpany, the Shenchon-(:oodlund Company, and Chi se-Brackett C:arpany; and since September 1976, owner and operator of Ken Lewis & Associates, Inc., - Independent Peal Estate Appraiser. Clientele - GMAC Mortgage Corp. U.S. West Relocation I Partial List of Knutson Mortgage Co. Coldwell Banker Relocation Institutional, Lomas & Nettleton Merrill Lynch Relocation Governmental, Norwest Mortgage Homequity Non-institutional and AmeriStar Financial Corp. Travelers Relocation Co. II Private Individuals United Mortgage Corp. Commonwealth Relocation U.S. Mortgage Relocation Resources Rothschild Financial Corp. Empire of America 1 Premier Mortgage Corp. ChemExec Relocation Systems Fullerton Financial Corp. Better Homes and Gardens Nationwide Mutual Western Relocation - Old Stone Mortgage Maenner Relocation Twin City Federal Deluxe Check Printers Inc. FBS Mortgage Corp. Cigna Corp. Towle Co. Eastman Kodak Co. I First Union Mortgage U.S. Air Shearson & Lehman Corp. Transfer Service Fleet Mortgage John Deere Co. CRS Financial Service McDonald's Corp. IICFM Mortgage Relocation Resources Veterans Administration (single-family residential, master appraisals, condos, land, etc.) Hennepin County Highway Dept. Minneapolis Cormunity Development Association ' II - Numerous attorneys Private individuals (SFR, multiple-dwelling, industrial buildings, condo projects; office buildings, small and large and cormrercial buildings. Properties range from one-million dollar SFRs to multiple-million dollar income properties.) Andrus Agency, Inc. Minnetonka Business and Professional Center 17809 Hutchins Drive,Minnetonka, MN 55345 MOM Phone 612.474.9443 Fax 612.474.0922 November 21 , 1988 1 Ms. Lori Sietsma Park and Recreation Director Chanhassen City Hall • Chanhassen, Minnesota 55317 Dear Ms. Sietsma: At your request, I have personally inspected an 11 .67 acre parcel of land on Lake Lucy Lane in Chanhassen. I have also reviewed a preliminary layout of the parcel contained in the "Carrico Addition" plat which was revised September 9, 1988 by Cardarelle and Associates, Inc. , Land Surveyors. You asked that I provide you with my estimate of the current 1 fair market value of this parcel. Based upon my investigation, I am of the opinion that on November 21 , 1988, the date of this letter, the subject parcel has a fair market value of: FIFTY EIGHT THOUSAND FIVE HUNDRED DOLLARS $58,500.00 This was a very difficult parcel to evaluate. While it is an 1 attractive parcel that would be reasonably easy to develop and would have appeal to prospective homeowners; it is not within the confines of the Metropolitan Urban Service Area. This, of course means that currently, it cannot be subdivided in the manner proposed in the preliminary plat proposed by Cardarelle and Associates. ' According to the current Chanhassen Zoning map, this parcel as of February 19, 1987, is in a Rural Residential District. The City Code indicates that a one-unit per ten-acre density is required in the zoning district. If I read the code correctly, 2 units could be built on this property unless it can be rezoned. It can only be rezoned if it can first of all be placed inside the MUSA line. 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 I Ms. Lori Sietsma November 21 , 1988 Page 2 I had a long interview with Mr. Carl Burandt at the Metropolitan Council concerning the probability of the ' subject property being put inside the confines of the MUSA line in the near future. His answer was that since Chanhassen has substantial land within the Urban Service Area ' now, he would think the possibilities would be very low. He went on to say, however, that the City Council does have the right to move the MUSA line around. This can be done only by "swapping" some land that is currently within the MUSA line ' for some property that is not so that the area within the MUSA line remains the same. The owner of the subject property, he explained, would have to find an owner willing ' to "swap" and would have to take his case before the Council. I talked with land developers in my efforts to determine the ' development potential of this site and the costs involved. One developer, Mr. Don Peterson, told me of a very attractive 15 acre parcel he was about to purchase in Plymouth. His last minute research revealed that the property was adjacent to, but outside, the MUSA line. He went to the City of Plymouth and was told that there was no way this property could be subdivided into residential lots until the mid 1990 's. His comment was that he would never again consider a property in this situation. Too risky, in his opinion. The City of Chanhassen has been doing some Tax Increment financing in some parts of the City in an effort to encourage development. One might assume from this that the City might be somewhat positive about getting this property within the ' MUSA line confines. Current real estate taxes on property are $572. If homes were built on the 13 lots that are proposed, the taxes based upon 1988 assessments would be in ' the area of $3,500 a home for a total tax potential of at least $45,000. (13 X $3,500) . I have called the Planner's office in Chanhassen to get another opinion regarding the likelihood of the rezoning, but have been unable to get a call back. IIAndrus Agency, Inc. J Real Estate Services for Business Ms. Lori Sietsma November 21 , 1988 Page 3 I have reviewed the sale prices in our files of many single family residential lots in Chanhassen and the surrounding area, and have concluded that the fair market value of the lots proposed in the preliminary plat we have referred to at this time would be approximately $30,000 per lot. In referring to our files and talking with some developers in the area, I have come to the conclusion that the reasonable price for a developer to pay for this site, assuming it could be developed as the preliminary plat specifies, would be 25% of the estimated projected sale price. We have projected a sale price of the lots when completed to average $30,000. 13 lots X $30,000 = $390,000. 25% of $390,000 is $97,500. Because the subject property is not inside the MUSA line and because it is zoned rural residential, there would be a great deal of risk and a lot of work involved for a developer who would purchase it based upon its 13 lot development potential. For this reason, a 15% of projected sales price rather than a 25% of projected sales price factor has been applied. 15% X $390,000 = $58,500.00. A representative from our office spent several hours in the Carver County Assessor's office this week tracing all land sales made in the county in the last two years. We therefore have a good idea what has been paid for acreage sales when the land has been zoned RSF and when it has been zoned RR. We also feel we have enough information to indicate to us what finished single family home sites have been selling for. . In the essence of time and the expense involved, we have not 11 gone into detail regarding comparable sales in this report. If you would like us to do so, I will gladly send some examples of actual sales that helped us to a conclusion regarding the fair market value at this time. This estimate of value required a great deal of research and some assumptions. It was necessary to consider the value if in the MUSA line and value if outside of the MUSA line and the probabilities regarding rezoning. We also had to consider the value of individual lots if completed as plotted. The value conclusion has hopefully taken all of these factors into consideration. L Andrus Agency, Inc. Real Estate Services for Raciness • I Ms. Lori Sietsma November 21 , 1988 Page 4 This should not be considered as an appraisal but rather an opinion of fair market value. An appraisal would involve much more detail and include all of the legal aspects of the property involved. I would be glad to provide you with all of the detail if requested. If this report has not addressed all of your concerns regarding this property, please let me know. I assume no responsibility for matters of legal character affeacting the property. It is assumed that the title of the 1 property is good, free and clear of any liens, encumbrance, and title defects. No survey of the property was made andtherefore, the size of the lot and the boundaries are taken fromrecords believed to be reliable. ' I have no personal interest or bias with respect to the subject property. it is understood that I will not be required to give testimony or appear in couart by reason of this estimate of value, unless prior arrangements are made. I thank you for this opportunity to be of service. Sincerely: Ca-zdg-Q-/-rd)e-(- ' Bud Andrus II 1 1 I Andrus Agency, Inc. Real Estate Services for Business 1 11 11 IF APPRAISAL OF ' CARRICD/F ANKLIN STATE BALK 1 9.76 ACRE SITE WIRTH OF LAKE LUCY LANE CHANHASSEN, MINNESOTA PREPARED FOR I MR. DON ASHWORTH, CITY MANAGER CITY OF CHANHASSEN I/ 609 COULTER DRIVE ' CHANHASSEN, MNNESOTA 55317 ' t ' DATE OF APPRAISAL JULY 13, 1989 1 OUR FILE NUMBER 89470 u MAC 11- h Sl {U:i 1,4 E51_ If HARVEY G. SWENSON, M.A.I. REAL ESTATE APPRAISER/CONSULTANT 6100 GREEN VALLEY DRIVE MINNEAPOLIS,MINNESOTA 55438 (612)830-9003 July 21, 1989 Mr. Don Ashworth, City Manager g City of Chanhassen 690 Coulter Drive Chanhassen, Minnesota 55317 RE: Carrico/Franklin State Bank 9.76 Acre Site North of Lake Lucy Lane Chanhassen, Minnesota Dear Mr. Ashworth: At the request of Mr. Roger Knutson, City Attorney, an appraisal of this real estate has been completed after a personal viewing of the property. As of July 13, 1989, it is my opinion that the subject property has a ircurrent "as is" market value of: EIQrr --FIVE TEIOUSAND DOLLARS $ 85,000 This estimate of current market value reflects the fact that this land is located just outside the Metropolitan Urban Service Area (MUSA) as defined by the Twin Cities Metropolitan Council and therefore will not be Iserved by municipal sewer and water until after the year 2000, even though it is within the City of Chanhassen's MUSA line. According to Mr. Paul Baltzerson of the Metropolitan Council staff the only way the subject property could be served by municipal services prior to the year 2000 would be to provide for an exchange of comparable acreage currently located inside the Met Council's MUSA line. I I I II MA% 1 f Page 2 II Mr. Ashworth 1 11 Because of the highly speculative nature of an owner of the subject property i accomplishing such an exchange, the current market value of the subject II will be based on the existing situation. The subject property could be developed with one dwelling unit served by private water and sewer, or held I for future subdivision after the year 2000, or a cambination of both. Reasonable care has been exercised in verifying the factual data set forth 1 in the report and is judged and assumed to be reliable. This appraisal is made II subject to certain assumptions and limiting conditions which are submitted in the following report. I The attached report identifies and describes the real estate, presents the I market data considered, and outlines the valuation analyses and methods used in ' arriving at this conclusion of market value. Sincerely, I 1 i 1 4'./ 4, / Harvey G. - on G MAI, RM on, L I pGS/jkg LEnclosures II L II L 1 1_ 1 I 1 1 _ 1 If . IITABLE OF CONTENTS IIPage No. PHOTOGRAPHIC VIEW OF SUBJECT 1-2 11 KNOWN HISTORY OF SUBJECT PROPERTY 3 2OPOGRAPHY MAP 4 IIPROPERTY RIGHTS APPRAISED 5 11 PURPOSE OF APPRAISAL 5 DEFINITION OF MARKET VALUE 5 ilMETROPOLITAN AREA 6-7 THE CITY AND NEIGHBORHOOD 8-10 ilLAND USE MAP 11 PHOTOGRAPH VIEWS 12-13 SITE DESCRIPTION 14-15 IIPLAT MAP 16 ZONING MAP 17 11 REAL ESTATE TAXES 18 s ESTIMATED HIGHEST AND BEST USE, OR OPTIMUM USE OF SUBJECT PROPERTY 19 ilVALUATION METHODS 19 ilMARKET APPROACH 20-23 LAND VALUE ESTIMATE 24-25 APPRAISER'S CERTIFICATION 26 CONTINGENT AND LIMITING CONDITIONS 27 APPRAISING/CONSULTING QUALIFICATIONS OF HARVEY G. SWENSON 28 11 I 11 11 . _________ _ • _ O - IQ ,, ;1,. y 1. = M1 ,•-a r•.....0.1,r,-, G if9T440 • t.$ "Rt e' ...... ."aw nr ��,,rr_ Irr•'S� woo 1 sib +Jt` •y t'+.,�+ (S *rs T M ' _ .. 'haa s. 'i,� v '..%,,,,-;7,...;:,..___,'! _ .. it t 4 ' ryu :V4-2:-.'l,{>• • •.' d 7" •re-1 r �r.•f r;t I Y '0',,,,o. � �7 t -� PANORAMIC VIEW LOOKING NORTHEASTERLY ACROSS SUBJECT PROPERTY FROM LAKE LUCY LANE. WETLAND PORTION OF SUBJECT PROPERTY IN FOREGROUND WITH HIGHER WOODED PORTION IN BACKGROUND. • — iii ii. OM ii. ME Mii iiii Iii. MIN ii. MIN Mill E NM NM - OW iillir NW stir- Now — — — IMF INF 11114 Mil MEI Mk MIll NA Mil MIM14 . O5 ( b1H y 1. ii.• . .. :4 0.4 ,..04,44000,4"..411;6:3:".st!. 4.0100wpw:: 4 ' • . it. ;le...". ' ',',:1'4:'. ' ' A. •I .�'•.re ..r..yr.,�, _ Kra - `°'rte. ....__- -__ - 7N21.�.nrtw,r„�{ ., +� VIEW IJOOKING NORTH AT SOUTHEAST CORNER OF SUBJECT PROPERTY FROM INTERSECTION OF LAKE LUCY ROAD AND LAKE LUCY LANE. OLDER HOUSE ON RIGHT SIDE IS EXCEPTION FROM THE SUBJECT PROPERTY I 3 11 I II KNOWN HISiuRY OF THE SUBJECT Pte' reports that lic records indicates I The Carver County Recorder's office po public Ithat: II 1. The subject property was purchased by Carl C. Carrico from James H. and Cecelia Palmer on October 21, 1977 at the following Contract for Deed 1 price/terms: I $ 6,000 cash down payment $ 6,000 payable 3/1/78 I $ 5,000 payable 3/1/79 I $ 5,000 plus accrued interest @ 8% payable 3/1/80 ' $22,000 Total Price 2. $50,000 mortgage dated December 23, 1980 to Carl C. Carrico from I Franklin State Bank, Franklin Minnesota filed as Document 50254. 3. Sheriffs Certificate filed 4/27/82 as Document 54837. Franklin State I Bank now shown as fee owner. I '- On December 12, 1988 the City of Chanhassen Planning Department received a preliminary layout for the subject property proposing a 13 lot residential 1. development along proposed Carrico Lane running from Lake Lucy Lane north to Wood Duck Lane. 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Fee simple interest is defined as I- follows: II "An absolute fee; a fee without limitations to any particular class of heirs or restrictions, but subject to II the limitations of eminent domain, escheat, police power and taxation. An inheritable estate." I I- PURPOSE OF THE APPRAISAL I The purpose of this appraisal is to estimate the market value, "as is", of II this real estate as defined in the following definition of Market Value. 4 DEFINITION OF MARKET VAIDE r t The most probable price which a property should bring in a competitive and j open market under all conditions requisite to a fair sale, the buyer and II seller, each acting prudently, knowledgeably and assuming the price is not i_ affected by undue stimulus. Implicit in this definition is the consummation of II a sale as of a specified 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 each acting in what I he considers his own best interest; 3. a reasonable time is allowed for exposure in the open market; I 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and I 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions I granted by anyone associated with the sale. L II I II 1 6 THE METROPOLIMN AREA 11 The Minneapolis-St. Paul, Minnesota Metropolitan Area, also known as the "Twin Cities Metropolitan Area", constitutes the Regional setting for the subject property. This 16th largest metropolitan area in the nation is made up of seven counties having a combined population of more than two million 11 persons. This Twin Cities Metro Area has approximately half the total population of the entire State of Minnesota and has experienced the following growth since 1960. Date Population Estimate 1960 1,525,297 1970 1,874,400 1980 ' 2,027,700 1988 2,200,321 The Metro Area continues to increase in population however, the rate of growth has moderated over the past several years. The Metropolitan Council of the Twin Cities Area, a metropolitan area wide planning, advisory and coordinating agency, was formed in 1967 by the Minnesota Legislature, and was the first such metropolitan agency established nationally. The Council is made up of 17 members appointed by the governor, with senate approval. The Council's purpose is to coordinate the planning of the seven metropolitan counties and the various municipal governmental bodies within its jurisdiction. Situated in East-Central Minnesota, just west of the Wisconsin State line, the Twin Cities Metropolitan Area has a diverse economic base. Originally 'settled as a hydropowered flour milling center along the banks of the Mississippi River, it still has one of the world's larger cash grain markets and one of the principal grain exchanges in the Country. Since the end of World War II, the Twin Cities area has become a leading technical and electronic instrument producing center. Some of the major employers in the area are Honeywell, Inc., Minnesota Mining and Manufacturing, General Mills, Pillsbury Company, Control Data Corporation and International Business Machines. 1 Li 7 ' II 3 3 nE METROPOLITAN AREA CCNT'D It is a major financial center for the Upper Midwest as well as the State's center of government and education. Minneapolis is the headquarters for the Ninth District Federal Reserve Bank, while St. Paul is the Capital City for the State of Minnesota. The University of Minnesota main campus straddles both # banks of the Mississippi River, just east of downtown Minneapolis, with the ' agriculture campus located in St. Paul. The Twin Cities area is the transportation and distribution center of the Upper Midwest, and is the crossroads of Interstate Highways 94 and 35. The Interstate Highway system also rings the Metropolitan Area with the I-494/694 freeway system. The Metro Area is currently reviewing various proposals for a future light rail transit (LRT) mass transit system. Traditionally, Minneapolis and St. Paul were a railroad transportation and distribution hub ' and also are at the head of navigation on the Mississippi River. Both national and international airline service is provided at the Twin Cities International ' Airport, located midway between Minneapolis and St. Paul on the south side of the Twin Cities, along I-494. The Twin Cities Metropolitan Area may be characterized as a relatively stable, economically diverse and generally progressive metropolitan area. L ' r 8 I THE CITY AND NEIGHBORHOOD CITY The subject property is located in the City of Chanhassen, a third tier southwesterly suburban community of Minneapolis lying between Lake Minnetonka and the Minnesota River. 11 The majority of the City of Chanhassen is in Carver County. A small area of the extreme easterly portion - lying either side of Highway 5 - is within Hennepin County. Chanhassen is currently experiencing a good rate of population growth. The I 1988 population was estimated at 8,481 persons, up 33% fraan the 1980 census population of 6,351 persons. This recent growth is due to the continuing 11 residential expansion in the southwest section of the Metropolitan Area, through Eden Prairie from the east. The recent residential development has been taking place mainly in the northerly and easterly areas of Chanhassen, adjacent to Highway 7, Highway 101, and Highway 5. Highway 5 is a heavily-traveled roadway from Chanhassen east of Highway 5 to I-494, located four miles from the easterly City limits. The stretch of Highway 5 from Prairie Center Drive west to Wallace Road was recently upgraded to four lanes and the portion from Wallace Road west to just past Eden Prairie Road (County Road 4) is to follow. The section of Highway 5 west of Eden Prairie Road to County Road 17 (Powers Boulevard) in Chanhassen has been moved up and is now tentatively slated for 1989-1990 construction. Regional shopping is located four (4) miles east of Chanhassen at the Eden IPrairie Mall. The Minneapolis/St. Paul International Airport is located seventeen (17) miles east of the easterly border of Chanhassen via Highway 5 and Interstate Highway 494. While automobile is the main mode of transportation for Chanhassen I residents, public bus transportation of Eden Prairie Center, Downtown Minneapolis and other destinations is provided by Southwest Metro bus service operating Monday through Friday. The City of Chanhassen, formed in 1967 by a merger between the Village of Chanhassen and its surrounding township, now has a Council Manager form of city government. The northern area of Chanhassen is within the Minnetonka School District 276 and the southern portion is served by Chaska School District 112. I St. Hubert's Catholic School is located in Highway 101 and West 78th Street in Downtown Chanhassen. r 1 THE CITY AND NEIGHBORHOOD camp 1 CITY CONT'D I A major entertainment facility, the Chanhassen Dinner Theatres, is also located along the main downtown street (West 78th Street) just west of Highway II 101 (Great Plains Boulevard). Opened in 1968, this is the only theatre in the nation with four professional dinner theatres under one roof. It is the I largest privately-owned food service operation in Minnesota, and ranks 19th nationally. The Chanhassen Dinner Theatres is a major employment source for II the City, providing an estimated 335 jobs. i Other major employers are United mailing, CPT Corporation, The Press, I 1 Instant Web and other local industries located in the Chanhassen Lakes Business Park and along Highway 5. II I Commercial development, which expands to serve a growing residential base, has been fairly modest over the past few years. Future commercial development in Chanhassen should expand in proportion to the City's population growth. I Several parcels of undeveloped commercially-zoned land are available for future 4 commercial developments. II Downtown Chanhassen is currently undergoing a redevelopment program. In 1987-88 road changes and new water and sewer and storm sewer improvements were I '_ constructed. Several new buildings are planned to be constructed. The first, Town Square Center an 18,000 square foot strip retail center was completed in 1 1988. I NEIGHBORHOOD II The subject property is located in the north central portion of the City of Chanhassen between Powers Boulevard (County Road 17) and Galpin Boulevard II(County Road 117) along the north side of Lake Lucy Lane where it intersects with Lake Lucy Road. The subject property is just outside the Metropolitan Urban Service Area II (MUSA) line as defined by the Twin City Metropolitan Council and therefore will not be served by public sewer and water until after the year 2000. (See City I of Chanhassen 2000 Lane Use Plan on the following page). II L I 10 THE c:l rY AND NEIGHBORHOOD oar n NEIGHBORHOOD CXk1T'D Pheasant Hill, a newer single family residential subdivision inside the MUSA line and served by municipal water and sewer is located immediately north of the subject property. Fully improved lots are valued at $29,900 to 37,900, with total completed hone values in the $125,000 to $200,000 range. Lake Lucy Highlands, a large lot residential subdivision located outside the MUSA line and not served private water and sewer systems is located to the south of the subject property across Lake Lucy Lane. f 11 111 •�1� • 1 `.. --7.....„ [ p4GMMp r'w!` �1ri' I. 'I,.Ls T ` -.. \ .0-.- ,LAKE — __ 1 • I ti, .. ,./J.111;.- .3::::"..'..;4::::':.*:1:.i.:ii.".:;.::::',1,::;1:.-;,,,"";.,...,_--_----_--_-_"-__-_-2 ::::,.-..-:...,.,.....t...,:k:;.:..iii.iiii.j...1-'"..::::"*"..:..,..,:... .111.;.$11.,:ff...1 .;1, :721. . i A /■•4/ ••/% N i.,., ).,; it 1 I ` * : ::,.;a: :;`!"�' i, i; :, ,7\. `;._\ .t :, . ft, . is j ,�1 1•', '•`1 - 1-� `•t• ',• •i ab9, -. J� (•� s.�t •",00171.- :. t_'- .i j�,a,] r C. .:' '-t 1-t1 :-‘ ‘:..,,-'.:;‘-‘,--.1%v . .. .yi:; •' c : �i th ,t,•'fi-• .:w � ' ) • , c :'i'•. .ITC , g.;)>4 ■, ... ` i! i > f 11 PM - IYl t• 11 i � '1'.,!• ,• i•�;,` , i 'r. .. .1 . 'As.., . .. . :6j LAKE LUCY �'1T�• 1 fil t\ \ititi••`+i • � 1 I:..•4::.A' 1$4:...7..•..,1..;.....•.•'..: glii--,„Iv e I I°I IF Li-- _ 1 LAKE ANN r ` �j: a .i.(i....,. I \ i . - • %).).*1-. ;.%.• iil•s • City Of • , .t • ) )n\.• CHANHASSEN � • •• >::. r V•'y ill ---- 1990 Land Use Plan ,' ',T;_,'•;'.,,;. ❖.••.❖.:►.•... • .•. 14- i n Residential Rural Density :,-4.,„4::::::4,1‘,,,, ' --- i . I I I k. 1 kwnirm-« m: , a, ..._ IJ /f. 3 •I dt h a�tfi4F- '. a r 1 r sj 3MN r -t.4 "il1� i . *? ' Ifili,s,,____._ k NEW HOMES ALONG WOOD DUCK LANE IN PHEASANT HILL FOURTH ADDITION JUST NORTH OF SUBJECT PROPERTY. i , ffi K k• i -kr x y� V;`tom "* : -4 ' .pia,._ _ 'A) :�:4.• r ill . , - - 1, i - �...:r .r•.' :- [I , -,"*" _ ,._ — __, VIEW LOOKING WESTERLY ALONG WOOD DUCK LANE. SUBJECT PROPERTY ON LEFT IN BACKGROUND. Views� ( Photograph I ' 1 I I I I I 1 I _ I - '\..r r� 1 1 '° s ►+ice' ' I LOT 11, BLOCK 1, LAKE LUCY HIGHALNDS ACROSS LAKE LUCY LANE FROM SUBJECT II PROPERTY. THIS 2.52 ACRE SITE FOR SALE AT $47,500. 1 I I.... Iv\ e. , . 1,,,,k, . A, ,, I , ,a,, ,-rr.:,- m �+'a ra - -- ' r-,---,4!„r-,;{ 4 r i, , L r- , II TIMBERPEG HOME BUILT ON LOT 1, BLOCK 2, LAKE LUCY HIGHLANDS SOUTH OF SUBJECT II PROPERTY ACROSS LAKE LUCY ROAD. THIS 2.45 ACRE SITE SOLD FOR $27,500 IN 1987. Views I ( Photograph � I/ ' 14 STIE DESCRIPTION LAND AREA: 11.67 acres based on a 1988 survey of the subject property. This is the gross land area including a portion of Lake Lucy Lane, with the subject property reportedly having a net area closer of 9.76 acres after Ideducting the portion in the Lake Lucy Lane right-of-way. ZONING: RR - Rural Residential District. This zoning is 11 intended for large lot developments. The new Chanhassen Zoning Ordinance adopted December 15, 1986 requires a minimum lot area of 2.5 acres, with the further provision that rural lot building be limited to one dwelling unit per 10 acres. The subject /I site, under this provision would be limited to a single building site at this time. WATER & SEWER: The subject is located just outside the Metro Council Metropolitan Urban Service Area (MUSA) line and therefore is not served by public sewer or water, and isn't expected to be so served until the year 2000, even though it is located within the City of Chanhassen's MUSA line as indicated on the 1990 Land Use Plan and water and sewer are situated in the Pheasant Hill Subdivision to the north. An 18" water main was installed in Lake Lucy Road between Galpin and Powers Boulevard in the Spring of 1989. No sanitary sewer is proposed for Lake Lucy Road or Lane because of MUSA line restrictions, according to the City Engineer, Mr. Gary Warren. I 11 I 1 15 1 1 1 SITE DESCRIPTION CCNT'D PHYSICAL FEATURES: The subject site is irregular in shape having an 1 extensive frontage along the north side of Lake Lucy Road. There is a 4+ acre wetlands area in 1 the southwest portion of the subject property. I- The remaining acreage consists of a higher rolling 1 wooded area. UTILITIES: The subject site could be served by electricity 1 provided by Northern States Power Company, 1 telephone service by Northwestern Bell, and with 1 natural gas from Minneagasco. 1 IDENTITY/VISIBILITY: The subject site has very good identity/visibility fran Lake Lucy Land/Lake Lucy Road. 1 ACCESSIBILITY: The subject site has good accessibility fran these II hard surfaced streets along the southerly border. I I I_ 1 I 1 I 1 I II I 1 IL 20 1 ' _ °� ' 134.5 . . . , 1 1�0 -p 120 M II 14 15 16 n$ as , k ' 4i CI n I EC I . EVE k t._ su.s la r R 4 63RD, a • O.. • - ! g�. ; 54 i . :.",..... 1 . 1 . , •.111tli 5 I j` , ,. 2 . 4 N. a . .. . . . .t 1 1.\...6.... 12.HERLSATN'T. cit.. • rT, ho 3 ESTATE ;".f I bo/pill .: „ ,, ,, I I 10 tiply, ,IQ _ rE4t�, 12 S fp 1- ." %�. CIRC�F, V X00 •.,< d ,4(.0 I . 4, '4 4 i!,: : .i.; ';'-' . ';,,9 . 4 4) pi rn i • .. 0 Ii1ii !øP4acI.. , t o� c Oc , ,114E , sANT.,I Cr co co 37o.. DI 0 W, l i 15 72C ! , ' ' , 1 . • `4 ° 1R N N ad h , ' • • .,. . .) . .• , 0,... ..• DAVID L HUGHES '' 3 m ro m Q DOC. et003 :i q • I - . 1 : V' L • i- • •, ., n ,. . .CARS C. C.4RRIC, '•... � , u ilk 147, ,c, •. ';• s• PHILIP 0 MATHIOWETZ O` " .- .. . 00C. NO. 71364 r4 ._� } h ' ' il ,, 0 ibo"' ", so zu N ' io q i ;'fi 1'•.n r,_ . 1 i ... "JQ 0. N YA N. • LANE .. ---- 446 I �j 1. i6 4� ' !To . 1 /0_ a ( Plat Map I • 1 -, / 1f. _ . I . - i 3 iiir � � ,,, r „* ,-mi�■� . ��1-� ' `'.... 4 .v4� ,..11 fir airte 1 IWO& tai lii �` . ' ' ail Mimi l �� r m kAI: st 1 .p NI A i r' . . . . el I 0 '. s"ci- - fir.2 ■ 1 ! 1 W. $l TM ST E t . II RR lim rimpu 1 .„ ., ) y\ Sown 1 ' 1� , --- __!,;,AKE a IF S .• A LAKE LUCY E� l .��` 1 IMPRISON . . �p, - 0111E E&lin RIP a j Wii ■L 1111 I_ ,� - I . asiiiiii 1 .. si i_ 0 -�" 1 1 LAKE ANN 1 4 Il 41 1 L. M„ ; ,Iii . RD I 1 I L fc*-. L -=--: - .--- - : : 1 1 ( zoningMap ) i I 18 REAL ESTATE TARES PROPERTY ID NUMBER: 25-0033300 ASSESSOR'S 1989 MARKET VALUE: Land $ 32,000 Building None ' Total $ 32,000 REAL ESTATE TAXES General Tax $ 604.24 PAYABLE IN 1989: Special Assessments 521.76 Total $1,126.00 UNPAID SPECIAL ASSESSMENTS: Street assessment $1,771.87 balance remaining after 1989 taxes. 11 PENDING ASSESSMENT: Lake Ann Sewer Interceptor $1,840.00 (estimate) To be levied in 1989 or 1990, but deferred until after the year 2000 because property is outside MUSA line. I it I I I I I I 19 1 1 II ESTIMATED HIGHEST AND REST, OR OPTIMUM! USE OF THE S[]BJEC-T PROPERTY s II DEFINITION The optimum use, or also referred to as the highest and best use is defined as the most profitable likely use, within the realm of reasonable probability, I to which a property can be put or adapted, and for which there is a current r 4 market. I The basic criteria is that the use or uses selected must be: 1 o physically possible, II o economically feasible, 3 o legally permissible, and I 3 o environmentally compatible. 1 1 i ESTIMATED OPTIMUM USE OF THE SITE 4 Because the subject property is located outside the Metro Council MUSA line, II the current highest and best use would be for use as a single residential 1 building site with the land planned in such a way as to enable one to do II srtlividing in ten years or so when public water and sewer might I become available to the site through the lifting of MUSA line restrictions, which reportedly will be after the year 2000. II i II VALUATION METHODS i_ . II The value of the subject property will be estimated by use of a combination iSales Comparison, also known as the Market Approach to value and the Land II Development Method. The Land Development Method of value reflects an I approximate land holding period of ten years before development of the site would occur, reflecting the Metropolitan Council's MUSA line restricting II I feature. L II II 1 II 1 li • 20 iiMARK P APPROACH CXWP'D liIn order to estimate the current gross sales prices of the proposed 13 lots of the preliminary plat of the subject property, recent sales of lots in nearby subdivision have been considered. ii ___, .. - . . . , li f'• ,,,,0,:' „, 6 -7,-- ; 6 6 I, 0 H '. KEA■4::::rirainiii 4,.,..... 12 S. )-i. r , I a : -s 1 p !T E lIjIOt f ,, J K a • 'SIP CIE P`a6NEC �t I It II°411? !L t T e �4E4,4hr I !!SANT i 1-2 - ` CIR • LENVILLA ESTATES It s s e pPIJE ip, I �.wf $I •U1EOT ! T II s 12/gp � • v c i' O^CUy r Y 2 f �- �as s • / =I PARTRIDGE CIR. • E S ,r C ''"'N 6 I f 11,. f o�r�or cHTLI ° z O© Q . , f.y f v I C:._:Cti i 44.4,.. 4 0. „p>. ‘ 4'/ay<4, <6 P e i” . „ i I -..:f..I il The abutting subdivision to the north of the subject property, Pheasant Hill Fourth Addition is selling lots in the low to mid $30,000 price range, with a high of $37,900. Hard development costs, according to the sales agent il Klinglehutz-Cravens, Inc., are approximately $15,000 per lot for municipal water, sewer, streets etc. for this subdivision within the MtJSA line. il , il i w Ir 21 II 1 MARKET APPROACH XNT'D LAKE LUCY HIGHLANDS ■� Irus , •- \ 1 f ______, ,,,.,,,.,..,.,..,,,.... iks 44-:,-1 IL Li.....:-...,::::_ --- f ?Va-k:q."N, i-.. 4)1-------._ __________ _ .z3 0oo.o,St �z � 6.3 a $25��o0l 0 - f 4 ♦ f j Y.56a 4f 1 1 ,-r SOLD i` is j `i 2 ac s i s ii e.:1 1 =35,000.00 , .►'°� ;` U $29,0000.1: 1 xtiuet I `f `^$25,009.+e A 7.82 ac 4'' • $30,000.0 �� 47 ac *. 2.45 i. 1 I ;0 , ' j4 00.0 N:i,$237,000-013 r $55,000.00,, f f45 900.0 '� °�P $37,500•1'. ° li a! I 4,41.;-2.50 I s • $35,000.' 2.47 ac 2.50 act 4.34 ac ac ,�37.50Q.+ :. sm.!, .,+,• +. ' «... ; s , s .60,000.+. 1'.'- . b—.4%‘--.. "`� 1.'...::: 4.S.A 4.42�� ' ,, 1 $28.000.+ri 3.9_92,74',,(\c, OLO '' t; 2.23 a ../ w 2 I-. i.43 ac• I t 1 i' ti,,I 539,200.0' ''' $49,900.001 i;1 i 4 . • _,Y,-- -� �--- '� "� '�` -'.,i • 3.05 air 6122 ac 1 Ili ..' r�: .+r�uc,ci ft12y`c*.. , A• ' ' % "_.r.: . '4%.,,,, .. I I li i r '. ==�' i — -:f — ourwt� $59,900.00 �\ 1. 1 I ! i ;,1t'',ec t 10.07 ac ;? I ICI camm F J,c � II I II Lake Lucy Highlands, a large lot (2.5 to 10 acres+/- lots) subdivision located south of the subject property across Lake Lucy Lane/Road from the II subject property is located outside the MUSA line and was platted prior to the 1986 zoning ordinance whereby 2.5 acre lots were allowed to be developed in rural areas, compared to the current 10 acre requirement. This subdivision has II L private water and sewer. Lot 11, Block 1, immediately across Lake Lucy Lane fran the subject property is a 2.52 acre site that previously sold for $25,000 I or $9,920 per acre about three years ago. It is currently listed for sale at $47,500 or equal to $18,849 per acre. Lot 1, Block 2 was purchased by Bob II Buris for construction of a Timberpeg home in 1987. This 2.45 acre site sold I for $27,500 or equal to $11,224 per acre. Lot 5, Block 2, a 10.07 acre lot II fronting on Lake Lucy sold for $63,300 or $6,286 per acre. 1 II I II t i JIM r . 22 MARKET APPS CCUT'D t'EtIM/NARY i aT Op: CR &k PUN i �r�, .li1.I Swi L�w,O � c� 11 1111 ,��I iVi 1, 7• Ltzi, p tv i,OV.A/i W. 1 '4:.14,r,pil kt1 ttlah c\\ . ' i l i _4/'i %\i...t.25" -T-_:_-_, 1-1.1 1 A ).11:1' .1:I i ----" 4. ..... ^NI . s �' ,/ 40 7r I i• ! Il Id °�� r r�r - . 1nh .11 ,tF'Q illii li ...___.ti ._..�! ,,� -4- .4OKI IU1 1 ; .) III y_ ,, .s .� 1.j li —_--21>, A 9 I I -rte .,,n.n._•••.ir:_ -- '"-'aui q 'i.ilor ! IIOMRitirrt101 Nttld nl\1! r"II�' 1• I� I1 wu S1 WIW 7OMII1 YM I.w •u+snn Creek Run, a 4.7 acre site was purchased by Robert Engstrom and Associates from Donald Bastiansen in the Summer of 1987 for $73,000 or equal to $15,532 per acre or $7,300 per lot for raw land for the 10 lot subdivision. il Development costs averaged about $13,000 per lot. These wooded lots valued in the high $30,000 to high $40,000 range and averaged $45,600 per lot. This if subdivision is a short distance east and north of the subject property at 62nd and Yosemite Avenue and is within the MUSA line. I 1 I i ' i 23 , 14MCET APPROACH CC TP'D I I - . \ Til v I 12 L A _ � r : M�1: _ � er:;1' •"1;le-N I Ill i 11111111CN� • .• t,,.�, AIM' 11. 1, . ��4.ign 11► 4111 MP -` •�fR` `•V(4•T r''3 4 R Oki St.T.7 •� 1 4 ke Lyric,ltd e 7:: . A AE illig 1111 = ._ii:: =_ 1111�� Q`"R 1 I IllailigliM\ • ‘01; 41.4 a at eu . 4 VISIT;15 CA 0 7 tOISEuiA�• ..00 i I I_ 1 Lots in Saddlebrook between Kerber Boulevard and Powers Boulevard are I_ selling in the $28,900 to $38,900 range for approximately 15,000 square foot I lots. Total lot development costs were over $14,000 per lot consisting of I_ $2,154 per lot for trunk sewer and water and Kerber Boulevard assessed by the City and over $12,000 per lot for interior streets and water and sewer laterals I paid by the developer. I I 1 E II 24 LAND METE= VAIIAT.I(N ANALYSIS ' In applying a Land Development Method of value to the subject property, the estimated gross sales prices of the 13 lots that potentially could be developed on the subject property will first be estimated based on current lot prices/values of comparable lots. From the total of the gross selling prices of the lots the estimated development costs such as platting, grading, construction of water, sewer, gas and electric lines, streets, storm sewer, and curb and gutter will be deducted. These development costs are also based on current costs of similar subdivisions. Also, an appropriate allowance for the land developer's overhead and profit will be deducted. Necessary overhead costs include such things as interest costs and marketing/selling costs. Establishing current selling prices for the lots and deducting all development costs and land developers overhead and profit, results in a net current value of the land if ready and available for current development. Because the subject property is restricted from development for what appears to be at least 10 years because it is outside the Metropolitan Council's MUSA line, appropriate adjustments must be made in today's calculations in order to reflect anticipated increases in both selling prices of the lots and ' development costs 10 years in the future. Finally, that future projected land value must be discounted to properly reflect what a buyer would pay for the land today, knowing that is must in all probability be held for at least 10 years before it may be developed and land development profit generated. For this 10 year holding time period, increased lot values and development costs will be projected to increase at a rate of 5% compounded annually. Holding costs for this ten year term will be estimated at a compounded annual discount rate of 10%. Based on these assumptions, following are the calculations leading to the current land value for the subject property. 1 25 . 1 II I?ND DEVELIZIPMENT METHOD VALUATICN ANALYSIS C NT'D Subdivision Analysis, 10 year deferred: II 4- 1989 5% Factor 1999 1 13 lots x $35,000 average price = $455,000 (100%) X 1.48 $673,400 (100%) II 13 lots x $15,000 development costs (195,000) (43%) X 1.48 (288,600) (43%) 1 Allowance for Develop O.H. & profit (113,750) (25%) X 1.48 (168,3501 (25%) II Land value if available for II current subdivision $146,250 (32%) X 1.48 $216,450 (32%) Less 10% compounded interest I 3 discount for 10 years X .3855 Present value of the subject property 1 available for development in 10 years $ Say 83,441 II i OONCLUSION 1 The Land Development Approach indicates the at the subject property if available for immediate development would have a current market value of II approximately $146,250 or say, $150,000. This is equal to $11,538 per lot raw I land value for each of the 13 proposed single family lots, or $15,369 per acre. II Because it is outside the MUSA line, the subject property is not available i_ for immediate development, and has been projected for development ten years II into the future. Discounting the projected land value of $216,450 ten years in 7 the future, to today's present value, indicates a present land value for the subject property of $85,000, or equal to $6,538 per lot or $8,709 per acre. I The difference between the estimated land value of $150,000 if the subject property were available for immediate development, and the present value II reflecting a 10 year holding period of $85,000, is because can informed buyer of the subject property today would anticipate holding costs (interest on their II$85,000 purchase plus real estate taxes and insurance) exceeding net value increases over a ten year holding period. II .,_ Cbrrent Present Land Value Estimate $ 85,000 II L II 1 — II 1r26 IFAPPRAISER'S CERTIFICATION IP The undersigned does hereby certify that, except as otherwise noted in this appraisal repor .t . 1 . I have no resen p t or contemplated future interest in the real estate that is the subject of this appraisal report M or in the parties involved. 2 . I have no personal interest or bias with respect to the If subject matter of this appraisal report or the parties involved. 3. To the best of my knowledge and belief, the statements of IF fact contained in the appraisal report, upon which the analysis, opinions, and conclusions expressed herein are based, are true and correct. If 4. This appraisal report sets forth all of the limiting conditions ( imposed by the terms of my assignment or by li the undersigned) , affecting the analysis, opinions and conclusions contained in this report . 5 . This appraisal report has been made in conformity with and III is subject to the requirements of the Code of Professional Ethics and standards of Professional Conduct of the American Institute of Real Estate Appraisers of the National Association of Realtors . I6 . No one other than the undersigned prepared the analysis, conclusions, and opinions concerning real estate that are li set forth in this appraisal report. II 7 . I have viewed the property which is the subject of this appraisal . 8 . The American Institute of Real Estate Appraisers conducts i _ a voluntary program of continuing education for its designated members . MAIs and RMs who meet the minimum standards of this program are awarded periodic educational il certification. I am currently certified under the AIREA voluntary continuing education program. Harvey G.' wenson, MAI ill Ll I I 27 3 a rn AND LIMITING CONDITIONS I cn • 1 This appraisal was made subject to the following: I — 1. No responsibility is assumed for matters legal in character, nor is any opinion rendered as to title, which is assumed to be good and marketable. Any existing liens or encumbrances have been disregarded and the property is appraised as II free and clear and under competent management. 2. Disclosure of contents of this report is governed by the By-Laws and Regulations of the American Institute of Real Estate Appraisers. II 1 i Neither all nor part of the contents of this report (especially any conclusions II as to value, the identity of the appraiser or firm with Real Estate Appraisers or to the MAI designation), shall be disseminated to the public through advertising media, public relations media, news media, sales media, or any other II public means of communications without the prior written consent and approval of the undersigned. 5 i 3. This appraisal is made assuming that all public improvements of any kind II affecting this property appraised and any special assessments related thereto I are fully paid for unless otherwise specifically set forth in the report. 1 4. In this report, the distribution of the total valuation between land and II improvements applies only under an existing program of utilization. The I separate valuation for land and building must not be used in conjunction with any other appraisal and are invalid if so used. I • 5. This appraisal assumes a sound national economy, competent management and continuous promotion of all demand generators, and proper maintenance of the property. II I 1 6. No right to expert testimony is given except by special arrangement and consent. II 7. The legal description secured from the owner and from public records or surveys furnished us is assumed to be correct. Any sketches or surveys included in the 1 report are added to assist the reader in visualizing the property and assume no II responsibility in relation to such matters, or easements, encroachments or other legal/survey aspects. 8. This appraisal assumes that this project meets all zoning requirements and all II _ building codes local, state and national, as they apply, including safety and health standards. No hazardous materials such as asbestos, PCB's or other hazardous sustances are assumed to be included in any building(s) or the site I unless specifically reported to be in existance and so reported to the appraiser 1 by an engineering report supplied to the appraiser and included in the appraisal report. I 1 9. Unless specifically included in this report, no soil tests have been made available to the appraiser. It is assumed that soil conditions are suitable for II the existing and/or proposed development and also that the site contains no hazardous wastes and/or petroleum products or other contaminants. _- 10. No engineering reports have been made available to the appraiser. It is assumed II that all underground services are functional and in good working condition. I I II f QUALIFICATIONS OF HARVEY G. SWENSON 28 APPRAISAL E ERIENCE I1963-68 A.D. Strong Company, Minneapolis, Minnesota Real Estate Appraiser I1 1968-77 Mortgage Associates, Inc., Twin Cities Branch, Minneapolis, Minnesota Assistant Vice President, Commercial Loan Division I1 1978-79 The Highland Financial Group, Inc., Minneapolis, Minnesota Vice President, Real Estate Services I1979-84 Harvey G. Swenson, MAI/Green Valley Financial Minneapolis, Minnesota Real Estate Appraising and Consulting, Development, 111 Financing, Leasing and Sales 1985-1987 Swenson, Bjorklund & Associates, Inc., Minneapolis, Minnesota Real Estate Appraisers/Consultants I 1 1987-Present Harvey G. Swenson, MAI, RM, Real Estate Appraiser/Consultant Minneapolis, Minnesota EDUCATION Bachelor of Arts Degree, Economics, University of Minnesota, 1961. University of Minnesota Extension Division Courses in Real Estate Appraising, Financing, Brokerage, and Law, 1963-65. American Institute of Real Estate Appraisers, Course I (Principles) 1965, Course II (Urban Properties) 1966, Course IV (Capitalization) 1971, and Capitalization Theory and Techniques (Parts A and B) 1984, and Litigation Valuation, 1987. Mortgage Bankers Association of America, Case-Study Seminar on Income Property Financing, Michigan State University, 1968. Mortgage Bankers Association of America, Advanced Case-Study Seminar on Income Property Financing, Michigan State University, 1969. Various continuing education courses and seminars. Currently certified under the AIREA voluntary continuing education program. PROFESSIONAL ASSOCIATION Member, American Institute of Real Estate Appraisers (MAI), Certificate #5592. Residential Member, American Institute of Real Estate Appraisers (RM), Certificate #156. Associate Member, Greater Minneapolis Area Board of Realtors Licensed Real Estate Broker, State of Minnesota. I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 I