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Patchin Messner Dodd & Brumm MemoCity of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 2 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Sketch of Prairie Style Building City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 3 PATCHIN MESSNER DODD & BRUMM Valuation Counselors CHASKA SUBJECT AERIAL N City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 4 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Water Treatment Facilities in Surrounding Municipalities Our research revealed water treatment facilities in residential neighborhoods in the cities of Chaska, Savage, Plymouth, Victoria, Edina and Eagan. As previously described, we researched sales of residential property in close proximity to these water treatment facilities in other municipalities, in order to compare those sales to sales of properties in the same neighborhood that are more distant from the water treatment facilities. These comparisons are completed in order to determine if there is a measurable decrease in value to those properties adjacent, or in close proximity, to water treatment facilities. Chaska Following is a photograph of the existing Chaska facility. As illustrated on the aerial on the following page, this water treatment facility is located in a residential neighborhood, and is also adjacent to an additional municipal building. The only sale proximate to the treatment facility was lender-owned, so we were unable to do a comparison in the Chaska area. In addition to the aerial located on the following page, a half-section map is located on page 6, which depicts the sales search area. Chaska City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 5 PATCHIN MESSNER DODD & BRUMM Valuation Counselors CHASKA SUBJECT AERIAL N SU B J EC T City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 7 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Water Treatment Facilities in Surrounding Municipalities Savage Following is a photograph of the existing Savage facility. As illustrated on the aerial on the following page, this water treatment facility is located in a residential neighborhood. After searching the area summarized on the half-section map on page 9, one listing was found proximate to the treatment facility, and an additional 13 sales were found in the neighboring area. Although Sale 4 is also proximate to the water treatment facility, this sale is not located on the same roadway, and does not have primary visibility to the facility. The sales are summarized in grid format on page 10 and, after adjusting all sales for market conditions to September 2, 2016, there is no discernible reduction in value due to being located near the water treatment facility. Savage City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 8 PATCHIN MESSNER DODD & BRUMM Valuation Counselors SAVAGE SUBJECT AERIAL N SU B J EC T City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 10 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Water Treatment Facilities in Surrounding Municipalities Savage Date Land Finished Sale Sale Price Adj. of Sale Size SF Price for Mkt. Cond. 1 8124 Foxberry Bay Active 0.40 AC 3,444 $445,000 $445,000 Averages 0.40 AC 3,444 $445,000 $445,000 Sales Further from Water Treatment Plant 2 13683 Ashcroft Alcove Pending 0.37 AC 3,240 $374,900 $374,900 3 8135 Foxberry Bay May-16 0.38 AC 3,201 $384,900 $390,593 4 8225 Carriage Hill Road Sep-15 0.25 AC 3,008 $405,000 $421,420 5 13424 Foxberry Road Aug-15 0.40 AC 3,091 $379,069 $395,476 6 8693 Carriage Hill Draw Jul-15 0.35 AC 3,312 $405,000 $423,639 7 8645 Carriage Hill Court Jul-15 0.30 AC 3,024 $375,500 $392,781 8 13460 Foxberry Road Jun-15 0.26 AC 3,180 $359,000 $376,506 9 8661 Carriage Hill Road May-15 0.31 AC 3,090 $360,900 $379,487 10 8236 Carriage Hill Road Jan-15 0.32 AC 3,154 $328,000 $348,487 11 8143 Foxberry Bay Jan-15 0.31 AC 3,600 $403,000 $428,172 12 8131 Foxberry Bay Dec-14 0.27 AC 2,951 $333,000 $355,569 13 8600 Carriage Hill Road Jul-14 0.36 AC 3,496 $350,637 $383,716 14 8673 Carriage Hill Road May-14 0.29 AC 3,124 $369,000 $407,733 Averages Apr-15 0.32 AC 3,190 $371,377 $390,652 Savage Improved Sale Sales Near Water Treatment Plant City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 11 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Water Treatment Facilities in Surrounding Municipalities Plymouth Following is a photograph of the existing Plymouth facility. As illustrated on the aerial on the following page, this water treatment facility is located in a residential neighborhood. After searching the area summarized on the half-section map on page 13, two sales were found proximate to the treatment facility, and an additional six sales were found in the neighboring area. The sales are summarized in grid format on page 14 and, after adjusting all sales for market conditions to September 2, 2016, there is no discernible reduction in value due to being located near the water treatment facility. Plymouth City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 12 PATCHIN MESSNER DODD & BRUMM Valuation Counselors PLYMOUTH SUBJECT AERIAL N SU B J EC T City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 14 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Water Treatment Facilities in Surrounding Municipalities Plymouth Date Land Finished Sale Sale Price Adj. of Sale Size SF Price for Mkt. Cond. 1 11300 42nd Place N. Sep-15 0.40 AC 3,304 $407,000 $417,515 2 11310 42nd Place N. Jun-15 0.28 AC 3,137 $399,900 $409,213 Averages Jul-15 0.34 AC 3,221 $403,450 $413,364 Sales Further from Water Treatment Plant 3 11440 42nd Avenue N. Aug-16 0.50 AC 3,022 $390,000 $391,425 4 11570 42nd Place N. May-16 0.30 AC 3,461 $427,150 $433,393 5 4265 Deerwood Lane N. Oct-14 0.31 AC 3,118 $414,810 $426,444 6 11455 42nd Avenue N. Oct-14 0.26 AC 2,742 $374,662 $385,170 7 11450 42nd Avenue N. Sep-14 0.48 AC 3,257 $394,900 $407,160 8 4275 Cottonwood Lane N. Feb-14 0.28 AC 2,609 $406,000 $427,134 Averages Apr-15 0.36 AC 3,035 $401,254 $411,788 Plymouth Improved Sale Sales Near Water Treatment Plant City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 15 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Water Treatment Facilities in Surrounding Municipalities Victoria Following is a photograph of the existing Victoria facility. As illustrated on the aerial on the following page, this water treatment facility is located in a residential neighborhood, and is also adjacent to a municipal fire station. There were no sales from January 2014 to the present that were adjacent or in close proximity to the water treatment facility. In addition to the aerial located on the following page, half-section maps are located on pages 17 and 18, which depict the sales search area. Victoria City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 16 PATCHIN MESSNER DODD & BRUMM Valuation Counselors VICTORIA SUBJECT AERIAL N SU B J EC T City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 19 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Water Treatment Facilities in Surrounding Municipalities Edina Following is a photograph of the existing Edina facility. As illustrated on the aerial on the following page, this water treatment facility is located in a residential neighborhood. After searching the area summarized on the half-section map on page 21, four sales were found proximate to the treatment facility, and an additional 18 sales were found in the neighboring area. The sales are summarized in grid format on page 22 and, after adjusting all sales for market conditions to September 2, 2016, there is no discernible reduction in value due to being located near the water treatment facility. Edina City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 20 PATCHIN MESSNER DODD & BRUMM Valuation Counselors EDINA SUBJECT AERIAL N SU B J EC T City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 22 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Water Treatment Facilities in Surrounding Municipalities Edina Date Land Finished Sale Sale Price Adj. of Sale Size SF Price for Mkt. Cond. 1 301 Monroe Avenue S. Pending 0.18 AC 1,680 $265,000 $265,000 2 312 VanBuren Avenue S. Jul-16 0.15 AC 1,238 $205,000 $206,133 3 303 Monroe Avenue S. Jul-16 0.17 AC 1,668 $262,150 $263,599 4 309 Monroe Avenue S. May-15 0.19 AC 1,848 $258,000 $260,852 Averages Feb-16 0.17 AC 1,609 $247,538 $248,896 Sales Further from Water Treatment Plant 5 6655 2nd Street S. Pending 0.21 AC 1,899 $235,000 $235,000 6 417 Monroe Avenue S. Active 0.19 AC 1,516 $275,000 $275,000 7 418 VanBuren Avenue S. Aug-16 0.19 AC 1,800 $270,000 $270,746 8 409 Jackson Avenue S. Aug-16 0.19 AC 1,130 $214,000 $214,591 9 400 VanBuren Avenue S. Aug-16 0.14 AC 1,688 $264,500 $265,231 10 423 Monroe Avenue S. Aug-16 0.20 AC 1,753 $285,300 $286,089 11 419 Madison Avenue S. Jul-16 0.15 AC 1,248 $228,228 $229,490 12 404 Monroe Avenue S. Apr-16 0.19 AC 1,510 $233,900 $237,132 13 418 VanBuren Avenue S. Aug-15 0.19 AC 1,800 $232,000 $237,272 14 422 VanBuren Avenue S. Jul-15 0.19 AC 1,474 $211,000 $215,821 15 420 Jackson Avenue S. May-15 0.18 AC 1,446 $242,740 $248,346 16 404 VanBuren Avenue S. Nov-14 0.14 AC 1,620 $205,000 $211,243 17 417 Monroe Avenue S. Sep-14 0.19 AC 1,516 $224,070 $232,432 18 405 Madison Avenue S. Sep-14 0.14 AC 1,200 $230,000 $238,584 19 409 VanBuren Avenue S. Jul-14 0.24 AC 1,607 $270,000 $281,931 20 401 Madison Avenue S. Jul-14 0.13 AC 1,856 $226,883 $236,909 21 424 Harrison Avenue S. Jun-14 0.14 AC 1,650 $230,080 $241,037 22 303 VanBuren Avenue S. Mar-14 0.17 AC 1,646 $212,850 $289,985 Averages Jun-15 0.18 AC 1,576 $238,364 $247,047 Edina Improved Sale Sales Near Water Treatment Plant City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 23 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Water Treatment Facilities in Surrounding Municipalities Eagan Following is a photograph of the existing Eagan facility. As illustrated on the aerial on the following page, this water treatment facility is located in a residential neighborhood. After searching the area summarized on the half-section map on page 25, one sale was found proximate to the treatment facility, and an additional 12 sales were found in the neighboring area. The sales are summarized in grid format on page 26 and, after adjusting all sales for market conditions to September 2, 2016, the average price of the sales less proximate to the water treatment facility is slightly higher than the sale price of the property that sold nearest the facility. However, it is noted that the water treatment facility in Eagan is part of a large municipal complex, and it is not possible to discern whether or not the slight difference in sale prices is due to the location of the water treatment facility. Eagan City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 24 PATCHIN MESSNER DODD & BRUMM Valuation Counselors EAGAN SUBJECT AERIAL N SU B J EC T City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 26 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Water Treatment Facilities in Surrounding Municipalities Eagan Date Land Finished Sale Sale Price Adj. of Sale Size SF Price for Mkt. Cond. 1 3489 Saint Charles Place Apr-16 0.21 AC 1,992 $247,000 $251,545 Averages Apr-16 0.21 AC 1,992 $247,000 $251,545 Sales Further from Water Treatment Plant 2 1597 Boardwalk Jul-16 0.21 AC 2,032 $274,850 $276,873 3 3491 Coachman Road May-16 0.21 AC 1,895 $262,000 $265,857 4 1588 Pacific Avenue May-16 0.33 AC 1,780 $260,000 $263,827 5 3494 Coachman Road Apr-16 0.47 AC 1,800 $272,500 $277,514 6 1580 Pacific Avenue Dec-15 0.25 AC 1,600 $217,500 $224,337 7 3514 Coachman Road Jul-15 0.35 AC 1,560 $230,100 $239,626 8 1669 Boardwalk Jul-15 0.23 AC 1,856 $270,000 $281,177 9 3576 Baltic Avenue Jan-15 0.29 AC 1,857 $229,800 $242,061 10 3578 Coachman Road Oct-14 0.20 AC 1,860 $219,900 $234,567 11 3506 Coachman Road Sep-14 0.79 AC 1,600 $217,000 $232,438 12 3486 Coachman Road Jun-14 0.40 AC 2,000 $242,000 $262,446 13 1665 Boardwalk May-14 0.20 AC 1,750 $238,000 $259,166 Averages Jun-15 0.33 AC 1,799 $244,471 $254,991 Eagan Improved Sale Sales Near Water Treatment Plant City of Chanhassen Proposed West Water Filtration Plant September 6, 2016 Page 27 PATCHIN MESSNER DODD & BRUMM Valuation Counselors Summary The data summarized in this memorandum suggest that there is no discernible decrease in value to properties located in close proximity to a water treatment facility.