Letter from Universal Valuation Services to Dan Cook of Pemtom 5-13-05
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Universal
Valuation
Services,
Inc.
Appraisers / Consultants
www.UniversaIValuationServices.com
2
Appraiser's File No.: 25019
Mr. Daniel Cook
c/o pemtom Land Company
7597 Anagram Drive
Eden Prairie, Mn. 55344
/
RE: Loss in value resulting from
Acquisition of Water Treatment Site
on Jerome Carlson Property from
proposed Lake Harrison Subdivision
May 13, 2005
Dear Mr. Cook,
Per your request, I am submitting a limited appraisal in a self
contained appraisal report format of the above referenced property.
The purpose of this appraisal is to estimate the loss in market
value resulting from the City of Chanhassen acquiring a portion of
the property for a water treatment facility ~ite. The appraisal is
limited for two reasons: 1) only a "before" and "afte~H t~e taking
analysis of the proposed subdivision is used to represent the
highest and best use of the property, 2) the existing improvements
are not valued.
A subdivision is the highest and best use of the land. The property
is valued under two conditions: 1) As a subdivision containing 52
residential lots before the water treatment site is acquired and 2)
as a subdivision ,containing 38 residential lots after the water
treatment plant -is in place. The difference between t~e two final
values is the estimate of v~lue lost as a result of the acquisition
from this site. Requirements imposed by the City of Chanhassen for
the placement of this water treatment site, and the effect it has
on the remaining lots, is also considered in the valuatiQil process.
UNIVERSAL VALUAnON SERVICES
287 Marschall Road, Suite 201A, Shakopee, MN 55379
Voice; (952) 445-9100 Fax:' (952) 445-9101
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The attached report does not value the land as one vacant parcel.
Valuing the property as one vacant parcel is NOT its highest and
best use, and is therefore not considered. This report presents the
findings, analyses and conclusions of this appraisal and fully
identifies the parcel to be encumbered by the water treatment plant
site.
Based upon the appraiser's inspection of the subject parcel along
with careful consideration of the many factors influencing market
value, the loss in market value to the subject property as a result
of .the proposed water treatment facility site acquisition was
valued as of May 9, 2005. The difference in the two values is
shown below:
Value of Subdivision Before Site Acquisition:
Value of Subdivision After Site Acquisition:
Loss in Value resulting from Site Acquisition:
$10,343,000
$ 6,436,000
$ 3,907,000
Three Million Nine Hundred Seven Thousand Dollars
The above value is subject to a competent inspection for the
contamination of the property for hazardous materials or other
dangerous substances whiCh may be found on, within or around the
parc:-.::l. .To the appraiser's knowledge, no such conditions currently
exist. However, should such materials, minerals or gases be found
present, the appraiser reserves the right to reevaluate the
estimated value subject to these conditions.
Descriptions of the property appraised, together with explanations
of the appraisal procedures used, are presented in this report.
The estimated market value is subject to the definitions of value,
the Assumptions and Limiting Conditions, and the Certification
contained within the attached report.
If you have any questions regarding this report, or the information
contained herein, please contact the appraiser at your convenience.
Respectfully,
UNIVERSAL VALUATION SERVICES, INC.
Richard G. Marks (MAl)
UNIVERSAl VALUATlON SERVICES
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Appraisal of:
Purpose:
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Partial Legal:
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Subdivision:
For:
Appraiser:
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6950 Galpin Blvd., Chanhassen, Mo.
Estimate value loss from Water Treatment
Site a~quisition from Subdivision of
Carlson Property by City of Chanhassen
Pt. of the SW 1/4 of S. 3, T. 116, R. 23 E.
Carver Co., MIl.
Lake Harrison (Carlson Property)
Pemtom Land Company
Richard G. Marks (MAl)
UNIVERSAL VALUATION SERVICES
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Form 8283 (Rev. 10-98)
Name(s) shown 00 yourlncolllll1a.x r.turn
page 2
identifying '_'f
o LI 6
Sadlon 8 - Ap,ralal Summary - U&tln tIJis section only iIemS (or tIfOUIlsofsimllarilems)for whiIlb you clained a dedllCtlon ofmor.
tttao $5.000 per 18m or group. ExcDPtlOD. Report conlributlolls of cerlain publicly traded securities only in Section A-
If you donated art, you may have to attach Ihe complete appraisal. See the Note In Part I below.
I Part I IlnfonutlOIl 01 Doaated Prop.", - To be oompleted by the _ayer andIor lIIIpraiser.
4 C1\eCI< ~e ofproplltly.
D Art" (contllulion of $20.000 or more) [Xl Real ESIate 0 Gems/Jewelry 0 Slamp ColIecliollS
o Art" (contrlJutIon otless 1hao $20,000) 0 ColD Collections 0 Books D 0lIIer
* Art Includes palntlmls. scu\p!Vres, waten:olors, Prints. draW\Ogs. ceramtcs. anllque tumitUre, dec;(ntive If1$, tel4lIeS. carpets. silVer. ran man~ts,
h1slorical RI8l'iKnb"and Other smllr llb_.
MOlt: 1f)'OUt' tohlIllIt contribution deduction was $20,000 or more, )'011 must attach e complete copy of the signed appraisaL See lt1:1t.nJction$.
Ii (a) De~ of cblated propertv (If you need (II) U1qft)1e P.r=:s donated, 'II: a brlefsUllllllllYof (Cl&~
more SIIl"- attach a separ.dI mtemenl) the oven' p condition at time of1l1e gift
A 1T.2\.Nn
B
C
0
\dl Dabl aoqui'ed (I) How acquired (t) Dlmar's cost or (0) For bargain _ See inItJ ~llIlo..
y donor (mo., yr.) by donor adjusted basis enlel' amount received (II)Amountclaimed asa (II Averars traall!t price
deduction o securlleS
A 05/A'1 P
B
C
D
I Part II mlld- In Part I abow 1hal the i as hlNhI a vaIlle of f.l;OO or less. See 1nsIrOO1Io1IS.
I declare 1I\altli8101Io.g lem(s) incIudtd In Part I above has to the best of my knowledllund belief an appraised _Ioe of not more II1an S500 (per Iem). Enter
Idllllllfylng IetIer from Part I and desatJe the specific \fem. See 1ns1tUClions. ~
fJ:~'I~I'::~~~~=:'lser Date ~
I dedare MI.. nat lhedonor.the _. a~to"lraI18IIllIoIIln \III1k:htl1e dllIler___lhepllllMlty. empIayo4 by, or l8l8ledto llIIYGf...ilreaoinO..- or 1IIlIlriecI1o..,y~
who;"....... to lIlY Gflhoofaro>galng....-. Md, 1I~ UOIIlCI by "'dllIlOI'. --. or ~ lolhetnll8dGn, IporMmod"'lIIlljorIty of lIlY ~ ciIrlntJ llIY IIX..... ror otIwll'll'lOAL
NtIo,I~ lhIll hold myIOlIfClll\ lotl1e...-.... .........._per1amI ~ClI\.r...-..-;_tlatb_GflllY qulIIIIcaIIOll$- -"ed 1Iltl1e~11lll ~to_
IIPPI1IAIa Gftl1etypa Gf~bIirlgvalUlld.lilllfll't .......lIPfInIs8I...._1lDI ~ClI\ .,.........oIlhe llpJnIsIIdllftlPlll\y Yillua. FuIlI1wmOl9.1 ~dtlat.fala....r""GlIent
~ vllheprapar\l_" __In .....-___ or"""......... _I1ll\YIUb]lCt 1IIlI1lllll8 PnllY__secI1GII O7Ot{lt(llldll1g-lIbIItnCI" uroaot_/1OIlt
ct laX ftablllty). llllllrm _I bllWllOl_l>lInd tam "'---*'-ClfW&llmon)l by'" tlhcI<< ofPrICll\le.
Sign
Here star1IlIn ~
~__~_or8Ul\ll"",)
1llle
LR:AD
Qlyor_..... _ZlPo,oda
20
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. Ratfbf:; Donee AcIlnlNtedgmnt - To be complellld by 1I1e cIlariIable organlzatlon.
This d1ar1lab1e organtlaUon adllIOWIedges Ilat It Is a qualified organlzation under section 17O(c) and that It received Ihe donated
Pfnper1Y as described In Seclim B, Part I, above 011 ~
paIa}
FlJ1hermore, this organIta1lOn atftmS that it the event I sells., exc\Ianoes. or otherwise disposes of the pfOll(ll1V described 10 Section B, Part I
(or any portion thereot) wiIhIn 2yearsafter1he date of recQlt, itwlR lie Fom 8182, Donee IllformatiOn Return. wltb1l\e IRS and Dive Ihe
dooor . copy of that tonn. This adcnOWl8dgmant does not repf8Selrt agreement .1118 claimed fair lJIIIl'ket \IlIlUe.
Does the mganlza1iol1 in1llnd to use 1he property for an unrelatlld use? .......................................................................................~ 0 Yes 0 No
Name of charl1ab1e organizatIOn (dOnee) Employer Ideatlfica1iOllall1llber
Address (nuDler, street, IIId roDm or sulle 1lO.)
en, or town, state, and ZIP code
Authorized signature
TItle
Data
41~ 01031-'l5