Appraisal Cover Letter 11-02-2010November 2, 2010
Mr. Severin H. Peterson, Jr.
Chief Manager
Peterson - Jacques Farm Land Company, LLC
15900 Flying Cloud Drive
Eden Prairie, MN 55347
RE: SUMMARY APPRAISAL REPORT OF THE 18.04 ACRES OF VACANT LAND
LOCATED WITHIN OUTLOTS A AND B OF THE PIONEER PASS SUBDIVISION IN
CHANHASSEN, MINNESOTA
Dear Mr. Peterson:
As requested by you, we are providing you with a summary appraisal of the above - referenced
property to arrive at a supportable estimate of the market value of the fee simple interest in the
subject property.
This Summary Appraisal Report is intended to comply with the reporting requirements set forth
under Standards Rule 2 -2(b) of the Uniform Standards of Professional Appraisal Practice for a
Summary Report., As such, it presents discussions of the data, reasoning, and analyses that were
used in the appraisal process to develop the appraiser's opinion of value. Most of the supporting
documentation concerning the data, reasoning, and analyses is included herein, with other resource
information retained in the appraiser's file. This appraisal report has been written for the intended
use of our clients, Mr. Severin H. Peterson and Peterson - Jacques Farm Land Company, LLC, for
purpose of estimating the market value of the donation of land to the city of Chanhassen.
The depth of discussion contained in this report is specific to the needs of this client and for the
intended use only. Hosch Appraisal & Consulting, Inc. is not responsible for the unauthorized or
improper use of this report. We have made a complete inspection of the subject property and have
fully identified the real estate in our written report. Additional supporting information may also be
supplied within the Addenda of this report.
After careful consideration of the many factors influencing value, it is our opinion that the subject
property has an estimated market value, as of the October 31, 2010, of:
FIVE HUNDRED FORTY THOUSAND DOLLARS---- - - - - -- $540,000
Broadlva y Place Fast. Suite 201
343 Broad lv;I l% St. <'W_`
,1linfleapo is. ,M,N >5413
Phone 6121.331 -16SS Fax 012'_331 -1004
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PRELIMINARY DRAFT
Mr. Severin H. Peterson
November 2, 2010
Page Two
This appraisal does not include personal property, equipment, fixtures, or intangible items that are
not real property nor does this appraisal take into consideration any going concern value created by
either the buying or selling party.
It is our opinion that a reasonable exposure time of up to 12 months is appropriate for the subject
property at our estimated market value. Please refer to the Reasonable Exposure Time section of
this appraisal for details.
This report is written with the intent of meeting the reporting requirements of the Uniform Standards
of Professional Appraisal Practice, 2010 -2011 Edition (effective January 1, 2010). This appraisal
has also been prepared in conformity with the requirements of the Code of Professional Ethics &
Standards of Professional Appraisal Practice of the Appraisal Institute.
The undersigned appraisers certify that they have personally inspected the subject site and have
investigated information believed to be pertinent to the valuation of the property, and to the best of
their knowledge and belief the statements and opinions expressed herein are correct and reasonable,
subject to the limiting conditions set forth herein.
Very truly yours,
HOSCH APPRAISAL & CONSULTING, INC.
Certified to this 2nd day
of November, 2010
Nathan J. Brooberg
Senior Appraiser
Certified General Real Property Appraiser
Minnesota License #20249946
Stephen T. Hosch, MAI
President
Certified General Real Property Appraiser
Minnesota License #4002903