ST9801-SY 990510EVALUATION ASSOCIATES
REAL ESTATE ANALYSIS AND CONSULTATION
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
COPPELL ROAD WIDENING AND IMPROVEMENT PROJECT
Property Owner: William F. Ca!lejo, Trustee
Valuation Conclusion:
Whole Property (Land Only)
Proposed Acquisition
Remainder Before Acquisition
Remainder After Acquisition
Loss in Value of Remainder After
$7,300,000
$ 44,112
$7,255,888
$7,255,888
$ -0-
Determination of
Compensation:
Value of Proposed Acquisition Area
Value of Proposed Slope easement
Value of proposed Drainage Easement
Compensation for Improvements
Loss in Value of Remainder After
Temporary Construction Easement
Total Compensation
$27,957
$ 2,895
$13,260
$ -0-
$ -0-
$ 4.862
$48,974
Date of Appraisal:
Location:
Legal Description:
April23,1999
Adjacent to the northwest comer of Sandy Lake Road and Coppell
Road, Coppell, Dallas County, Texas
Being a tract offand out of the John E. Holland Survey, Abstract No.
614, city of Coppell, Dallas County, Texas
Land Size:
Whole Property
Proposed Acquisition Area
Proposed Slope Easement
Proposed Drainage Easement
Proposed Temporary Construction
Easement
130.710 Gross Acres*
0.4936 Acres (21,505 SF)
0.5113 Acres (22,271 SF)
0.2342 Acres (10,200 SF)
0.4293 Acres (18,700 SF)
Zoning:
LI, LightlndustrialDistrict
Highest and Best Use:
As Vacant:
Hold for future mixed commercial and industrial use
* Whole property size derived from review of documents supplied by City of Coppell officials
11615 Forest Central Drive · Suite 205 · Dallas, Texas 75243-3917 · (214) 553-1414 · Fax (214) 553-1615
EVALUATION ASSOCIATES
REAL ESTATE ANALYSIS AND CONSULTATION
May l0, 1999
Mr. Ken C.x~ffin, P.E.
Director of Engineering and Public Works
City of Coppell
P.O. Box 478
Coppell, Texas 75019
Coppert Road Widening and Improvement Project
An appraisal of a proposed 0.4936 acre right of way acquisition, a proposed 0.5113 acre
slope easement, a proposed 0.2342 acre drainage easement, and a proposed .4293 acre
temporary construction easement out of a 130.710 gross acre tract of vacant land situated
adjacent to the northwest corner of Sandy Lake Road and Coppell Road. The parent tract
is legally described as being 130.710 acres out of the John E. Holland Survey, Abstract No.
614, Coppell, Dallas County, Texas.
Dear Mr. Griffin:
At your request, we have conducted the analysis and investigations necessary to derive the value of
the whole property (Land Only) based on the economic conditions which prevailed on the current
valuation date of April 23, 1999. It is understood that the function of the appraisal, and of this
summary of data and analysis employed in that appraisal process, will be used as a basis for
establishing just compensation due to the property owner concerning the intent of the City of Coppell
to acquire the referenced right of way for the widening and improvement of Coppell Road.
This report addresses appraisal guidelines of the International Right of Way Association, the
Appraisal Institute, and is classified as a complete summary report format under the Uniform
Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Foundation.
All herein mentioned value estimates are market oriented and based on the principle of Value in
Exchange rather than Value in Use to a specified owner. These value terms, along with other
appraisal terminology, are defined in the addendure section oftMs report.
Owner Contact
The subject property was inspected from various points of reference on several dates in April with
the date of our last inspection being April 23, 1999, also the valuation date. The property owner
representative, Mr. Eddie Vassallo, was contacted and informed that Evaluation Associates had been
engaged to evaluate the subject whole property and proposed acquisition areas. Also, a letter was
sent asking for pertinent property information. A copy of the letter is included in the addendure of
this report. No verbal nor written reply was received from Mr. Vassallo or the property owner.
Subject Site Description
According to information provided by the client, and field review by Evaluation Associates, the
11615 Forest Central Drive · Suite 205 · Dallas, Texas 75243-3917 · (214) 553-1414 · Fax (214) 553-1615
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Mr. Ken Griffin
May 10, 1999
subject property fronts 2,225.10 feet along the west side of Coppell Road, 636.20 feet along the
southeast side of SH-121 and 696.34 feet along the north side of Sandy Lake Road. SH-121 is a
freeway permitting access to Lewisville to the north, and D/FW Airport and Grapevine to the south.
Coppell Road is currently a two lane asphalt paved street. Based on the Coppell Future Land Use
Plan it is designated as a two lane collector street. Sandy Lake Road is a two lane asphattie paved
east-west street. It serves as the only continuous east-west arterial through the City. Upon
improvement, it is designated as a minor, 4-lane arterial. Review of a metes and bounds description
attached to a special warranty deed indicates the subject parent tract contains 130,710 gross acres.
The deed notes 0,40 acres is contained within Sandy Lake Road (Thweatt Road) and 1.124 acres is
within Coppell Road, thus the net acreage totals 129.186 acres. It appears the City would have
prescriptive rights to the areas currently in the public street. As such, the subject property is
considered a 129.186 acres tract and is evaluated on that basis. All public utilities are available to the
subject property.
Topographical features include a generally level terrain. A review of available Federal Emergency
Management Agency (FEMA) maps indicates the subject property is not located within a designated
flood hazard. Several easements were noted on the property. County abstract maps note a 15 foot
wide water line easement which extends in a north-south direction through the property. In addition,
a Lone Star Gas Company easement bisects the subject property in a northwest-southeast direction.
An overhead electric power line extends parallel to Coppell ~oad. Also, during the research of this
assignment it was noted that the subject property is located within a D/FW International Airport
sound zone. Given the proximity to residential uses (on the east side of Coppell Road), investigations
were made to whether residential uses would be permitted on the subject property. Due to the D/FW
approach/departure tracks, efforts are made to minimize incompatibilities with aviation related noise.
Therefore, it does not appear likely residential uses would be permitted on the subject property.
There were no other noted or observed easements, encroachments or other special hazards that might
effect the marketability or utility of the subject parent tract.
Zoning
Based on our review of the City of Coppell Zoning Map, the subject property is zoned LI, Light
Industrial District. The City requires and maintains certain building and site requirements in this
district, a copy of which has been retained in the file. The district is intended to provide for
commercial and light industrial uses. It was noted during a review ofthe zoning regulations that this
district is cumulative. That is, uses in lower districts (more restrictive districts such as office and
retail) are permitted in the LI district as are light industrial uses. The subject property appears to
comply with the LI regulations, both before and after the proposed acquisition.
Highest and Best Use
The highest and best use is that use which will provide the greatest net return to the owner of the land
within applicable physical, legal and financial market acceptance constraints. These criteria are
usually considered and tested sequentially; i.e., a use may be financially feasible, but this is irrelevant
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Mr. Ken Griffin
May 10, 1999
flit is physically impossible or legally prohibited. Highest and Best Use is defined in The Appraisal
of Real Estate, 1 lth Edition, published by the Appraisal Institute as being:
"the reasonably probable and legal use of vacant land or improved property, which is
physically possible, appropriately supported, financially feasible, and that results in the highest
value."
Physical factors include physical characteristics of the site such as shape, size, topography, ingress
and egress. The subject property encompasses approximately 129 acres. The tract has adequate size,
shape, ingress and egress. Visibility and exposure is to Sandy Lake Road, Coppell Road and SH- 121.
All utility services are available in the tract. The topography of the tract is generally level. The
physical features of the subject parent tract indicate support for a variety of uses.
The legal limits in this case are determined by the zoning ordinance. As previously discussed, the
subject property is designated Light Industrial which is a cumulative designation permitting a variety
of commercial and light industrial uses. The frontage, visibility and accessibility to SH-121 indicates
uses which require/benefit from this attributes is suitable for this portion of the subject property.
Presently, warehouses and office buildings are scattered along SH-121. These type of uses are
compatible with the LI designation and would be appropriate for the subject property. No sales were
found for single users of trac, s in the 130 acre size range. Therefore, it appears likely that further
development would be required. That is, utility infrastructure and streets would be constructed for
subdivision into smaller sites.
An analysis of financial factors would include determining uses which produce a market accepted rate
of return based on the risks involved. Research found few large acreage tracts like the subject
property in this market area. Sales found in the immediate area generally ranged from 5 to 20 acres.
There appears to be ample supply of developed sites; thus it is unlikely that the subject property
would be subdivided until greater demand was demonstrated or less supply was available.
Highest and Best Use Conclusion
The highest and best use of the whole subject property is for future mixed commercial and light
industrial development.
Valuation Approach
Since the subject tract is vacant, the most realistic approach to value is through the direct comparison
of land sales. Several sale transactions were analyzed and adjustments were made to compensate for
differing influences on value. A detailed summary of those sales considered most representative of
the current market, and the conclusions derived from our analysis, have been included in this report.
Conclusion
Our research has included an investigation of market and neighborhood trends which are believed to
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Mr. Ken Griffin
May 10, 1999
influence the value of the subject property. Based upon our analyses and interpretation of the data,
the Market Value of the subject property as of April 23, 1999, is estimated to be:
FORTY EIGHT THOUSAND NINE HUNDRED SEVENTY FOUR DOLLARS
($48,974)
The following narrative report sets forth a description of the subject property along with maps,
photographs and other exhibits. The report has been prepared in accordance with the Code of Ethics
and Professional Conduct promulgated by the Appraisal Institute and the International Right of Way
Association. The report is subject to the Assumptions and Limiting Conditions included in the
Addendum.
This report was prepared by James W. Cullar, Jr. and Richard N. Baker, both representing the firm
Evaluation Associates, and deriving the analysis and value estimate conclusion. The undersigned
assumes responsibility for any required testimony.
If you have any questions, please call us.
Respectfully submitted,
EVALUATION ASSOCIATES
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PHOTOG RAPHS OF SUBJECT PROPERTY
View of the subject from SH -121 service road
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View of the subject property from Coppell Road
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SUBJECT WHOLE PROPERTY PLAT MAP
2498.2
SSg°44'e
nggo53'w
1275.26
.~'4s',, sggo42.w
227.74 ,e
696.34
Sandy Lake P, oad
Evaluation Associates
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APPRAISAL PROCEDURE
The estimation of Market Value of a property that is being appraised is accomplished by the
comparison and analysis of as many techniques as are appropriate. Three approaches are generally
used to produce value indications for improved properties while only one (the Sales Comparison
Approach) is normally employed in analyzing an unimproved property.
COST APPROACH The value indication by this approach is accomplished by determining
the Reproduction (or Replacement) Cost New of the improvements less accrued depreciation
from all causes to which the value ofthe land (estimated by comparison) is added.
SALES COMPARISON APPROACH The comparison of similar properties that have sold
in the marketplace is used to produce an indication of value. The comparison may either be
direct or indirect by commonly accepted units or elements of comparison.
INCOME APPROACH This approach to value is applicable to properties capable of
producing a net income stream. The net income is translated into a value indication through
capitalization.
The strengths and weaknesses of each approach employed are weighed in the final analysis.
The approach or approaches offering the greatest quantity and quality of supporting data are typically
given most consideration and the final value is then correlated.
As noted, the subject property is vacant. That being the case, only the Sales Comparison
Approach is employed in this instance.
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LAND VALUATION
A reliable value indication for the subject tract is provided by an analysis and comparison of
sites that have sold in the marketplace. Many factors influence the price of land. The selected sales
are analyzed with respect to real property fights conveyed, financing terms, conditions of sale, market
conditions, location and physical characteristics.
A transaction price is always predicated on the real property interest conveyed. The revenue
generating potential of a property can be limited by the terms of existing leases.
The purchase price can be influenced by financing terms. Non-market financing terms must
be considered to determine the cash equivalent price.
Adjustments for conditions of sale usually reflect the motivations of the buyer(s) and the
seller(s). Circumstances such as assemblage sales are considered in this analysis.
Market conditions sometimes change over time and past sales must be analyzed to determine
the velocity and direction of change between the sale date and the appraisal date.
The analysis of location includes the comparison of trade or market area, proximity and
accessibility to major thoroughfares and exposure and accessibility to traffic.
The analysis of physical characteristics would include zoning, topography, frontage, depth,
shape, proximity to public utilities and other factors influencing the utility or use.
The following sales best represent the current market value of the subject property.
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LAND VALUATION SUMMARY
Land Sale No. 1
Location:
Grantor:
Grantee:
Legal Description:
Date of Sale:
Site Data:
Size:
Zoning:
Utilities:
Frontage:
Shape:
Topography:
Easements:
Improvements:
Intended Use:
Consideration:
Financing:
Comments:
Mapsco # 1A-H
NWC of Vista Ridge Boulevard and Lake Vista Drive, Lewisville
Crescent Real Estate Equities, LP
ART Walker Cummings, Inc.
A-1402, A-506, A-466, A-52 and A-144
September 09, 1998 Volume/Page: 98/81829
159.6000 Acres
LI, Light Industrial District
All available
Along various streets
Irregular
Level
None detrimental noted
None
Investment
$15,600,000 or $2.24/SF
All cash to seller
Purchase is of several contiguous
Development.
tracts in the Vista Ridge
F: 64741
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1AND VAL UA TION SUMMAR Y
Land Sale No. 2
Location:
Grantor:
Grantee:
Legal Description:
Date of Sale:
Site Data:
Size:
Zoning:
Utilities:
Frontage:
Shape:
Topography:
Easements:
Improvements:
Intended Use:
Consideration:
Financing:
Comments:
Mapsco # 1A-E
SWC of Denton Tap Road and SH-121, Lewisville
American Realty Trust, Inc.
Today 121 Business Park, LP
A-1274
April 22, 1998 Volume/Page: 98/3 1945
78.4450 Acres
A, Agricultural District
All available
Along Denton Tap Rd and SH-121
Triangular
Rolling
None detrimental noted
None
Investment
$6,800,000 or $1.99/SF
All cash to seller
Property was purchased in November 1996 for $3,600,000. This
represents a re-sale and an appreciation rate of 89% during the
approximate 18 month holding period.
F: 64704
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F: 64794
Land Sale No. 3
Location:
Grantor:
Grantee:
Legal Description:
Date of Sale:
Site Data:
Size:
Zoning:
Utilities:
Frontage:
Shape:
Topography:
Easements:
Improvements:
Intended Use:
Consideration:
Financing:
Comments:
LAND VALUATION SUMMARY
Mapsco # 1-T
NWC of Royal Lane and North Point Drive, Coppert
T/E NorthPoint Partners
Primera Coppell Properties IH
A-968
December 15, 1997 Volume/Page: 97242/2647
16.5880 Acres
LI, Light Industrial District
All available
515 feet on Royal and 1,312 feet on Northpoint
Rectangular
Level
None detrimental noted
None
Distribution warehouse
$1,698,046 or $2.34/SF
All cash to seller
N/A
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LAND VALUATION SUMMARY
Land Offering No.
Location:
Broker:
Legal Description:
Date of Offering:
Site Data:
Size:
Zoning:
Utilities:
Frontage:
Shape:
Topography:
Easements:
Improvements:
Intended Use:
Asking Price:
Financing:
Comments:
A Mapsco # 1-U
SWC of Sandy Lake Road and State
Dan Luby w/ECOM Real Estate
N/A
May 01, 1999
99.0000 Acres
H, Light Industrial District
All available
Along Sandy Lake and State
Rectangular
Level
None detrimental noted
None
For Sale
$4,950,000 or $1.15/SF
All cash to seller
Parent tract contained 214 acres. Grantor sold approximately 115
acres to City of Coppell for $23,000/AC.
F: 64789
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Subject Property
Sale I
Sale 2
Sale 3
Listing A
Land Sales Map
I inch = 0.80 mile
bb in Feet
m
Evdu~tion Asso~l~
Ma~COI~gNMN~CO, I~.LCR$5014
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LAND VALUATION SUMMARY
LAND VALUATION SUMMARY
The subject whole property is located in northwestern portion of Coppell. The following sales
are very similar to the subject whole property in many respects, however there are some differences.
Such differences make it necessary to apply adjustments to the sale properties in order to reconcile
the affect of these features on Market Value.
I"
saleNo.:~
1
2
3
A
SUBIECT
RECAPITULATION OF SALES DATA
9/98 159.6 LI $2.24
4/98 78.4450 LI $1.99
12/97 16.5880 LI $2.34
5/99 99 LI $1.15
.:ii
4/99
129.186
The above table capsulizes the data presented on the preceding pages. The chart that follows
after this section, uses the sales price per square foot as a unit of comparison. The sales are analyzed
and compared with the subject parent tract for similarities and differences. The elements considered
to be inferior to the subject property are adjusted upward while the superior qualities of the
competitive sales are adjusted downward. Adjustments have been based on the appraisers
observations of physically and economically oriented differences in each competitive sale. The
amount of adjustment is determined by the extent to which the sale varies from the subject whole
property. The adjustment process compensates for the difference between the competitive sale and
subject and provides an indication of value for the subject whole property.
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LAND VALUATION SUMMARY
Analysis and Correlation
The preceding summary chart displays three land sales for comparison to the subject whole
property/parent tract. A reliable value indication for the subject land is provided by an analysis and
comparison to other vacant land that have recently sold in the marketplace. This market derived sales
data has been used to abstract and analyze property features that affect sales price. Rights conveyed,
financing terms, conditions of sale, location, market conditions and physical characteristics were
factors considered to determine which influences price in the subject market area.
Rights Conveyed
The market value fee simple interest in the subject whole property is being sought in this
analysis. During the sales verification process, it was determined that there were no existing leases
on any of the sale properties, thus indicating that fee simple interest was transferred in each
transaction. Therefore, no adjustment is applied to any of the sales for this factor.
Financing Terms
The adjustment for financing considers the effect that seller financing has on the purchase
price of a property. Below market interest rates are typically reflected in higher prices per unit. The
adjustment for financing is estimated by comparing the financing terms with the terms readily
available, as of the sale date, from disinterested parties. All of the sales were cash transactions and
require no adjustment.
Conditions of Sale
Adjustments for conditions of sale usually reflect the motivations of the buyer and seller or
any unusual concessions by either party to the transaction. All of the sales were purchased for owner
use and/or speculative investment purposes. No adjustment for this factor is applied.
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LAND VALUATION SUMMARY
Market Conditions
The sales occurred over an approximate 2.5 year period prior to the valuation date (May
1999). The sales did not provide substantive evidence on which to base a time/market conditions
adjustment, Review of Sale No. 2 notes a reference to an 89% increase in price from November 1996
to April 1998. There is no indication however, that the market has continued to increase in price at
that rate, or any other specific rate, during the 2.5 year term of the herein stated database.
Location
The subject property fronts SH-121, a major thoroughfare in Tarrant County, and Coppell
Road and Sandy Lake Road. Residential uses are situated to the east and the area to the north, south
and west is largely vacant. Recent development in the immediate area includes a 5 story office
building which is positioned at the comer of Corporate and SH-121. There have been several
office/warehouse/distribution facilities constructed along the southwest side of SH-121. In addition,
industrial facilities have been constructed to the south in Freeport North Industrial Park.
Sale No. 1 is comprised to various sites within the Vista Ridge development. Vista Ridge
Mall is located at the intersection of EVI~3040 and IH-35E. Given the proximity to the mall, this sale
property is rated superior to the subject location and a downward adjustment is applied.
Sale No. 2 benefits from excellent exposure to SH-121 and Denton Tap Road. The visibility
and access to these major thoroughfares causes this sale property to be rated superior to the subject
whole property. A downward adjustment is applied.
Sale No. 3 is a comer tract within the Freeport North Industrial Park. It has frontage on
secondary street on Royal and Northpoint. In terms of location, this sale is rated inferior. An
upward adjustment is applied.
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LAND VAL UA TION SUMMAR Y
Physical Features
The terrain of the subject whole property is generally level and a full array of utilities is
available to the tract. The property is zoned LI, Light Industrial District which permits a variety of
uses - both commercial and industrial. Given the size of the tract, it is anticipated that additional
development would be required, i.e. - platting, construction of interior street, extension of utilities
through the tract, etc. Sale No. 2 is similar to the subject property in this respect. Sale Nos. 1 and
3 are finished sites, ready for immediate development/use. A downward adjustment has been applied.
The following table summarizes the adjustment process.
coi,..,o.. :....I:': Si,e~o.', :'1 si,i~i:i.'.:l,! s~,;:~O2:~ .'i
SP/SF $2.24 $1.99 $2.34
Rights Conveyed Fee simple Fee simple Fee simple
Financing Cash Cash Cash
Conditions of Sale Market Market Market
Market Conditions Similar Similar Similar
Adjusted Price $2.24 $1.99 $2.34
Location Sul~or Superior Inferior
Physical futures Superior Similar Superior
Net Adjustment -40% -35% -35%
Indicated Value $1.35 $1.29 $1.52
After adjustments were made to the sale properties, this approach produced a relatively
narrow range of indicators. Also given consideration is Listing A. This property is in proximity to
the subject tract, fronting both Sandy Lake Road and State. This property encompasses
approximately 99 acres and is listed for $50,000/AC or $1.15/SF. The broker stated that offers had
been received for $40,000 per acre. In view of these indicators, the Market Value of the subject
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LAND VALUATION SUMMARY
parent tract is estimated to be:
129.186 AC x $1.30/SF = $7,315,545
Rounded to: $7,300,000
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CORRELATION AND CONCLUSION
The subject property is valued as an unimproved tract offand. Therefore it was not necessary
to separately evaluate any buildings. There was no construction cost or accrued deprecation to
analyze. In this appraisal situation, the Cost Approach was not considered applicable.
Also, since there is no trend toward land leases in the area and there is no existing or feasible
activity to generate reliable and consistent rental or lease income attributable to the land, the Income
Approach to estimate value was not utilized.
The Sales Comparison Approach analyzes trends of buyers and sellers from the analysis of
competitive land sales. A set of data was selected for comparison with the subject property. Rights
conveyed, financing terms, conditions of sale, location, market conditions and physical characteristics
were factors analyzed to determine the influence on price in this market area. Each sale was
inspected, analyzed and compared with the subject property.
The Sales Comparison Approach produced the oniy reliable and supportable indication of
market value for the subject property. Therefore, the Market Value of the fee simple interest in the
subject whole property (Land Only), as of April 23, 1999, is estimated to be:
SEVEN MILLION THREE HUNDRED THOUSAND DOLLARS
$7,300,000
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PROPOSED ACQUISITION MAP
EXHIBITS G4' & 'B'
1/2'IRF"q
4.60j~-~
586'23' 1
I0o01'
I
EXHIBIT 'B'
IO-FOOT SLOPE EASEMENT I
0.5113 OF AN ACRE .~l[,u
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POINT
CM=CONTROL UONUMENT
OF BEGINNING
EXHIBIT "B'
I
S8%"'f.2(~! 2~
· i, {CMI
j 0 4°36 ACRE
'l;t.m
' (~L
AREA C~D TO BE
: WEHIN COPPE~ RO~
1214 ~RES
48~9 SO.~.
VOL8~ ~ 1835
D~.T. ' '
1"-60'
/.-PROFOSED ' GHT-OF-WAY LINE
I0.01'
BEARINGS SHOWN H[R~ON ARE BASED ON
THE EASTERLY LINE OF THE WILl. N,4 F. CALL[JO
N88'51 '36"wj TRACT OF LAND ,N~ID THE: EXISTt4G WESTERLY RIGHT-OF-WAY
9.72' uHE OF COPPELL ROAD BEING SOUTH 03°20'34" WEST
Evaluation Assoclatea
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METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
EXHIBIT "A"
RIGHT-OF-WAY PARCEL
METES AND BOUNDS DESCRIPTION
BEING 0.4936 of an acre tract of land situated in the John E. Holland Survey, Abstract No. 614, the City of l
Coppoll, Dallas County, Texas and being a portion of a called 130.710 acre tract of land described
William F. Callcjo, Trusteo by deed recorded in Volume BOO(M, Page 1835, Deed Records of Dallas!
County, Texas (DRDCT), said 0.4936 of an acre tract of land being more particularly described as follows:
COMMENCING at the southeast corner of said Callejo tract of land;
THENCE North 88°51 '36" West along the southerly line of said Callejo tract of land, a distance of 22.01
· feet to the POINT OF BEGINNING
THENCE North 88°51'36'' West continuing along said southerly line, a distance of 9.72 feet to a ~ inchi
iron rod set for corner in the proposed westerly right-of-way line of Coppell Road;
THENCE North 03020'34" East, along said proposed westerly right-of-way line. a distance of 2226.93 feeti
to a '/2 inch iron rod set for corncr in the northerly line of said Callcjo tract of land, same bcing the
southerly linc of Phase I, Block !, One Twenty One Busincss Park as described by plat recorded it~"
Volume 81094, Page 2568, DRDCT;
THENCE South 86023, 12" East, along the northerly line of said Callejo tract of land and the southerly lino
of said Phase 1, Block 1, One Twenty One Business Park, at a distance of 4.60 feet passing a Yz inch iron
rod found for the southeast corner of said Phase 1, Block i, One Twenty One Business Park, and
continuing along said northerly line in all for a total distance of 9.60 feet to to a point for corner;
THENCE SoUth 03020'24" West, a distance of 2226.51 feet to the POINT OF BEGINNING;
CONTAINING a computed area of 21,505 square feet or 0.4936 acres of land.
Evaluation Assoeiates
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PROPOSED ACQUISITION MAP
EXHIBITS ~' & 'B'
%fO~-' ?,9.,0,C''' 4,60'
· ~ ,,JO~-, %.B..O~c;'''~'
EXHIBIT °B'
IO..FOOT SLOPE EASEMENT
0,5113 OF AN ACRE
22271 SO. FT.
Z
POINT OF BEGINNING
. EXHIBIT
CM=CONTROL MONUMENT
I
58%~.:;~ 2l
~ S86~23' 1:2'1~
/-',hi.,2'0
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~ ' ~EA C~D TO BE
J WEHIN ~PPE~ RO~
J ~ 1214 ~RES
I ~9 SQ.~.
VOL 8~4, ~. 1835
J D~.T.
1"-60'
I f ROF:OSEO 'GHT-OF-WAY L!NE
I1~~ / ',~ POINT OF COMMENCEMENT
10.ol°
i 'INT OF BEGINNING
H/BIT 'A°
BENJi, IG$ SHOWN H~REON/,RE BASEO ON
THE EASTERLY LIN~ OF THE: WILLAM F. CN..LEJO
N88°51'36'"W~ TRACT OF L,N~O ~ TI.E EXSTING WESTERLY RIGHT-OF-WAY
9,72' L~.E: OF COPPELL RO.N} BEING SOUTH 03'~'0'34" WEST
Evaluation Associates
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METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
EXHIBIT '~"
1 O-FOOT SLOPE EASEMENT
METES AND BOUNDS DESCR1FrlON
BEING a 0.5113 of an acre tract of land situated in the John E. Holland Survey, Abstract No. 614, the City
of Coppell, Dallas County, Texas and being a portion of a called 130.710 acre tract of land described to
William F. Callejo, Trustee by deed recorded in Volume 80004, Page 1835, Deed Records of Dallas
County, Texas (DRDCT), said 0.5113 of an acre tract of land being more particularly described as follows:
COMMENCING at the southeast comer of said Callejo tract of land;
THENCE North 88E51'36" West along the southerly line of said Callejo tract of land, a distance of 31.73
feet to the POINT OF BEGINNING;
THENCE North 88E51'36" West, continuing along the southerly line of said Callejo tract of land and the
northerly line of a called 0.077 acre tract of land described to Betty A. Phillips by deed recorded in Volume
88149, Page 3215, DRDCT, a distance of 10.01 feet to a point for comer;
THENCE North 03E20'34" East, a distance of 2227.36 feet to a point for comer in the northerly line of
said Callejo tract of land, same being the southerly line of Phase 1, Block 1, One Twenty One Business
Park described by plat recorded in Volume 81094, Page 2568, DRDCr;
THENCE South 86E2Y 12" East, along the northerly line of said Callejo tract of land and the southerly line
of said Phase 1, Block 1, One Twenty One Business Park, a distance t,t' 10.01 feet to a point for comer;
THENCE South 03E20'34" West, a distance of 2226.93 feet to the POINT OF BEGIlqNING;
CONTAINING a computed area of 22,271 square feet or 0.5113 of an acre of land.
Evaluation Associatel
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PROPOSED ACQUISmON MAP
EXHIBITS 'C' & 'D'
!_/
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NO3'20'34'E
220.00'.
'~,'N86'39'26"W
~_. ,o._.o.o.__
N86,39,26,W7
| 817.87'
1"-60'
I.e......-.-- 170,00' J
POINT OF BEGINNING
EXHIBIT "C"
' PO~INT OF BEGINNING
, 1842,87'
. r~i ;~,~,,~,F:.~2,'.~~,c,,~
N88'51 '3S~J 3 1.73'
BE~ffi$ ~WN HEREON ~E B~ED ~
T~ [~TERLY L~ OF i~ ~L~ r.
C~LEJO TROT ~ L~ BErG ~RTH 03* 20'34"
Evaluation Associates
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METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
EXHIBIT "D"
TEMPORARY CONSTRUCTION EASEMENT
METES AND BOUNDS DESCRIPTION
BEING a 0.4293 of an acre tract of land situated in the John E. Holland Survey, Abstract No. 614, the City
of Coppell, Dallas County, Texas and being a portion of a called 130.710 acre tract of land described to
William F. Callcjo, Trustee, by dccd recorded in Volume 80(X)4, Page 1835, Deed Records of Dallas
County, Texas (DRDCT), said 0.4293 of an acre tract of land being more particularly described as follows:
COMMENCING at the southeast corner of said Callejo tract of land, same being in the existing westerly
right-of-way line of Coppcll Road (a variable width right-of-way);
THENCE North 88°51'36'' West along the southerly line of said Callejo tract of land, a distance of 31.73
feet;
THENCE North 03°20'34" East, a distance of 18 17.87 feet to the POINT OF BEGINNING;
THENCE North 86°39'26" West, a distance of 85.00 feet to a point for corner;
THENCE North 03°20'34" East, a distance of 220.00 feet to a point for corner;
THENCE South 86°39'26'' East, a distance of 85.00 feet to a point for corner;
THENCE South 03020'34" West, a distance of 220.00 feet to the POINT OF BEGINNING;
CONTAINING a computed area of 18,700 square feet or 0.4293 of an acre of land.
Evaluation Associates
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METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
EXHIBIT "C"
DRAINAGE EASEMENT
METES AND BOUNDS DESCRIPTION
BEING a 0.2342 of an acre tract of land situated in the John E. Holland Survey, Abstract No. 614, the City
of Coppcll, Dallas County, Texas and being a portion of a called 130.710 acre tract of !and described to
William F. Cailejo, Trustee, by deed recorded in Volume 80004, Page 1835, Deed Records of Dallas
County, Texas (DRDCT), said 0.2342 of an acre tract of land being more particularly described as follows:
COMMENCING at the southeast corner of said Callejo tract of land, same being in the existing westerly
right-of-way line of Coppell Road (a variable width right-of-way);
THENCE North 88°51 '36" West along the southerly line of said Callejo tract of land, a distance of 31.73
fcct;
THENCE North 03020'34" East, a distance of 1842.87 feet to the POINT OF BEGINNING;
THENCE North 86"39'26" Wcst, a distance of 60.00 fcct to a point for corner;
THENCE North 03°20'34'' East, a distance of 170.00 feet to a point for corner;
THENCE South 86°39'26" East, a distance of 60.00 fcct to a point for corner;
THENCE South 0Y'20'34" Wcst, a distancc of 170.00 fcct to the POINT OF BEGINNING;
CONTAINING a computed arca of 10,200 squarc fcct or 0.2342 of an acrc of !and.
Evaluation Assoeiates
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ANALYSIS AND VALUATION OF PROPOSED ACQUISITION AREA
The Proposed Acquisition
According to the attached surveyor' s field notes, the proposed acquisition area consists of 21,505 SF
for the widening and improvement of Coppell Road. The location, dimensions and shape of the
proposed acquisition area is shown on the Acquisition Map exhibit page. The proposed acquisition
area is generally a rectangular shaped strip of land adjacent to the eastern property boundary. The
topography of the area is generally level. The subject property will be reduced in size by
approximately 0.38%. The fights sought by the City for the proposed acquisition area is considered
to represent 100% of the fee simple interest in that portion of the site. Based on the nature of the
whole property/parent tract and the size, location and nature of the proposed acquisition area not
being of sufficient size to be a self-sustaining entity, the highest and best use of the part to be acquired
is as a part of the whole property. As previously noted in the Land Valuation section of this report,
the whole property (Land Only) is valued at $1.30/SF. Therefore, the value of the proposed
acquisition land area is based on a proportionate part of the value of the whole property, based on
the land value of $1.30/SF.
There are no known above or below ground structures within the proposed acquisition area
to be valued. The estimated market value of the part to be acquired can, therefore, be calculated as
follows:
Land area 21,505 SF x $1.30/SF = $27,957 l~d
Proposed Slope Easement
A transitional slope easement is also sought by the City. This proposed acquisition area is 10 feet in
width and extends adjacent to and along the proposed Coppell Road fight of way acquisition area.
Based on the accompanying surveyor's field notes, the easement area contains 22,271 SF. A slight
grade separation will exist immediately after the proposed acquisition and the proposed slope
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ANAL YSIS OF PROPOSED ACOUISITION AREA
easement is designed to provide a smooth transition from the new road level to the existing subject
property grade. This easement is essentially temporary in nature in that the ultimate land planning
can incorporate the slope area into setbacks, landscape requirements, etc. Therefore, the rights
sought by the City represent 10% of the fee simple interest. The value of this proposed acquisition
is calculated as follows:
22,271 SF x $1.30/SF x 10% = $2,895 Rd
Drainat, e Easement
In addition to the above described Coppell Road right of way, the City also seeks acquisition of a
10,200 SF drainage easement. The City seeks to construct a storm drainage inlet to facilitate the
natural flow of water run off. It appears all surface access, ingress, egress, to and across the
easement area is sought. Thus, no building, structure, or other improvements may be constructed
upon or across the proposed easement area. In addition, the City seeks to construct a permanent
structure within the described easement area. The property owner does have reversionary rights in
this area. These factors contribute to the analysis and conclusion that the City encompasses the
dominant rights within the easement area and a majority of the value base in the affected ROW. That
amount is estimated to be 90% of the fee simple interest in the easement area. Because of the unique
size and shape characteristics of the proposed acquisition area, it has no potential for independent
development separate from the parent tract. It is valued on the same basis as the subject whole
property.
Proposed Drainage Easement Area 10,200 SF x $1.30/SF = $13,260
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ANAL YSIS OF PROPOSED ACOUIS1TION AREA
Value of the Remainder Before the Acquisition (LAND ONLY)
The value of the Remainder Before the Acquisition is simply the mathematical difference between the
value of the whole property less the value of the Proposed Acquisition Areas.
Whole Property Value
Less:
Value of Proposed Acquisition Area
Value of Proposed Slope easement
Value of Proposed Drainage Easement
Subtotal
$27,957
$ 2,895
$13.260
Value of the Remainder Before the Acquisition
$7,300,000
$ 44,112
$7,255,888
Value of the Remainder After the Acquisition
As noted, the proposed acquisition areas will be used for the widening and improvement of Coppell
Road. After the acquisition, the remaining site will have similar accessible frontage along Coppell
Road. The remaining site Highest and Best Use will remain unchanged. The remainder site will
contain approximately 128.4582 acres. Frontage along SH- 121, Sandy Lake Road and Coppell Road
are approximately the same. The depth of the remainder appears adequate to accommodate most
commercial and industrial uses consistent with the development code envisioned for both before and
after condition.
Therefore in the final analysis, the market of the remainder subject property after the acquisition and
reconstruction of Coppell Road is not less than the value before the acquisition and reconstruction.
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Rate Chart
ECONOMIC
INDICATORS
· :...FEBRUARY:1999..;;:~,!~::~:.
Market Rates and Bond Yields --% Stock Dividend Yields--% Conv~tional Home Mortgage Terms
Feb, 99 (Source: Standard & Poor's) [-eb. 9~ (Source: Federal Housing Finance Board)
Reserve Bank Discount Rate 4,50 Common Stocks --500 1,32 Feb, 99
Prime Rate (monthly average) 7,75 New House Loans--U,S, Averages
Federal Funds Rate 4.76 Other Benchmarks Interest rate (96) 6,92
3-Month Treasury Bills 4,45 Feb, 99 Term bears) 28,7
6-Monffi Treasury Bills 4,43 Loan ratio (%) 78.2
Industrial Production Index¶ 132.6 Price (thou. S) 204.1
3-Mo~th Certificates of Deposit 4.90 (Federal Rese~e 1992.100)
Libor 3-too. Rate 4.86
U.S. 5-Yr. Bonds 4.91 Unomployment¶ 4.4 Used House Loans---U.S. Averages
U.S. 10-Vr. Bonds S.00 Monetary Aggregates, daily avg.¶ Interest rate (%) 6.93
U.S. 30-Yr. Bonds 5.37 M1, S-Billions 1082.8 (p) Term bears) 27.7
Municipal Tax Exempts (Aaa)t NA* M2, S-Billions 4440.8 (p) Loan ratio (96) 78.0
Municipal Tax Exempts (A}T NA* Member Bank Borrowed Resewes Price (thou. $) 179.5
Corporate Bonds (Aaa) 6.44 S-Billions .116 ¶ Seasonally adjusted
Corporate Bonds (A)t NA*
Corporate Bonds (Baa) 7.39 Consumer Price Index 164.5 1' Sourc~ Moooys Bond Record
NI Uffian Consines p Prelirninan/data
*NA--F~jures not available as d March 25 press date; updated version avatiable under the *Featwed P~ges" he~ding o~ the Appraisal Institute home page at w,v,v.a/twe/saitsMlxe, wg.
Evaluation Associates
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TEMPORARY CONSTRUCTION EASEMENT
According to the attached surveyor's field notes, the proposed temporary construction
easement totals 0.4293 acres (or 18,700 SF) for the widening and improvement of Coppell Road.
The TCE surrounds the proposed drainage easement. The rights sought are temporary in nature.
Topography of the proposed easement area is gently sloping to a natural drainage area. The net
affect of this temporary construction easement will not permanently reduce the size of the subject
property. The purpose of the proposed temporary construction easement is to provide working area
for the ingress, egress, and placement of construction machinery and excavation materials during the
construction phase of this project. The project sponsors intend to return the ground, grass and any
fencing to the same or similar state as before the easement. Therefore, no compensation for grass
nor fencing is included. The period requested for the temporary construction easement is 2 years.
The value of the easement is based on a temporary lease for 2 years at a 10% return which
is applied to the value of the flood plain portion. This yield rate represents the upper end of yield
rates of various governmental bond yields. Accompanying is a summary of current rates of return
recently published in a publication of The Appraisal Institute. It is important to note that
improvements, if any, within the temporary easement area which are required to be removed during
the construction period will be replaced by the contractor, and therefore have not been valued in this
appraisal assignment. The value of the easement is calculated as follows:
Temporary. Construction Easement
18,700 SF x $1.30/SF = $24,310
multiplied by the market competitive annual rate of return of 10% = $2,43 1
multiplied times the 2 year period of the Temporary Easement = $4,862
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RECAPITULATION
A recapitulation of the pertinent values of the whole property, the proposed acquisition area,
the remainder before and after the acquisition are depicted below:
Value of the Whole Property (Land Only) $7,300,000
Value of the Proposed Acquisition Area $ 44, 112
Value of the Remainder Before the Acquisition (Land Only) $7,255,888
Value of the Remainder After the Acquisition (Land Only) $7,255,888
Damages $ '0-
Temporary Construction Easement $ 4,862
Total Compensation $ 48,974
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that:
1.
2.
,
10.
AFFIDAVIT AND CERTIFICATE OF VALUE
The undersigned does hereby certify that, except as otherwise noted in this appraisal report
We, the undersigned, have personally inspected the subject property.
We have no present or contemplated future interest in the real estate that is the subject of our
evaluation.
We have no personal interest or bias with respect to the subject matter of our evaluation or
the parties involved.
To the best of our knowledge and belief, the statements of fact contained in this consultation
letter, upon which the analyses, opinions and conclusions expressed herein are true and
correct and no pertinent information has knowingly been withheld.
The appraisers compensation is not contingent upon the reporting of a predetermined value
or direction in value that favors the cause of the client, the amount of the value estimate, the
attainment of a stipulated result, or the occurrence of a subsequent event.
The analyses, opinions and conclusions in the report are limited only by the assumptions and
limiting conditions set forth, and are the personal, unbiased, professional analyses, opinions
and conclusions of the appraiser.
The development of the herein expressed value opinions have been made in conformity with
and is subject to the requirements of the Uniform Standards of Professional Appraisal Practice
adopted by both the Appraisal Institute and the International Right-of-way Association and
can be supported by internal file inspection.
James W. Cullar, Jr. prepared the analyses, conclusions and opinions concerning real estate
that are set forth in this appraisal report. Assistance was provided by Richard N. Baker.
This document was obtained from Evaluation Associates and may consist of trade secrets and
commercial or financial information that is privileged, confidential, and exempt from
disclosure under 5U.S.C. 552 (b) (4). Please notify Evaluation Associates of any request of
reproduction of this appraisal.
Use of the report is subject to the professional requirements of the Appraisal Institute and the
International Right of Way Association regarding review by its duly authorized
representatives.
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11.
12.
The Appraisal Institute conducts voluntary and mandatory programs, depending on the year
of designation, of continuing education for their designated members. Designated members
who meet the minimum standards for this program are awarded periodic educational
certification. James W. Cullar, Jr. and Richard N. Baker are currently certified under their
respective programs.
The market value of the proposed acquisition areas as of April 23, 1999 is estimated to be:
FORTY EIGHT THOUSAND NINE HUNDRED SEVENTY FOUR DOLLARS
($48,974)
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James W. Cullar, Jr., SRPA, SRA, SRIWA
Qualifications and Professional Biography
EDUCA~ON
Graduate of North Texas State University, BBA 1967
All courses, demonstration appraisal reports, professional experience, and quality reviews
required for the three professional designations awarded from 1969 to current time.
PROFESSIONAL EXPERIENCE
Founder and general manager of Evaluation Associates, a real property consulting and land
rights acquisition firm, providing a variety of real property evaluation services for the financial
market, public land rights acquiring agencies, and individuals seeking decision making
information for mortgage lending, asset review, right of way land rights acquisition and
related matters.
Jim Cullar has qualified as an expert witness in county, state and federal courts in Dallas,
Tarrant, Coilin, Denton, Ellis, Grayson, and Travis Counties.
Prior to founding Evaluation Associates, Jim was a lender and appraiser with a large financial
institution; and later the chief appraiser with the Right of Way Division of the Dallas County
Department of Public Works. He has been a self employed consultant since 1985. Jim keeps
abreast of current industry trends through reading, continuing education, teaching, forum
discussion, and publication.
PROFESSIONAL AFFILIATIONS
The Appraisal Institute SRPA, SRA Member designation
Officer and Director - North Texas Chapter (Dallas Area)
Past President - North Texas Chapter 1995
National Government Relations Committee representing Texas and New Mexico
Member National Board of Directors - 1997 - 1999
International Right of Way Association (IR/WA Region 2)
SR/WA Designation
Certified Instructor of:
Real Estate Appraisal Principles
Income Approach to Valuation
Appraisal of Partial Acquisition
Easement Evaluation
DFW Chapter 36 - Officer
Dallas Board of P-ealtors (Institute Affiliate)
Licensed Texas Peal Estate Broker #142545 (inactive)
State Certified General Texas Real Estate Appraiser - TX - 1321322
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RICHARD N. BAKER, MAI
EDUCATION
Qualifications and Professional Background
Graduate of Texas Tech University, Masters of Business Administration, May 1985.
Graduate of Southern Methodist University, Bachelor of Arts, Bachelor of Business
Administration, May 1983
All courses, demonstration appraisal reports, professional experience, and quality reviews
required for the MAI professional designation awarded 1996.
ACCREDITED APPRAISAL COURSES and SEMINARS
Standards of Professional Practice, Part C (March 1998)
Eminent Domain Seminar (May 1994)
Understanding Limited Appraisal and Reporting Options (August 1994)
Texas Property Tax Consulting Laws (March 1995)
Real Estate Evaluations and the Appraisal Industry (April 1995)
Focus on Preservation - In town Development (August 1995)
Market Extractions - Income Properties (November 1995)
The Impact of Mineral Rights and Oil and Gas Activities on Agricultural Land Values (May
1996)
Tomorrow's Appraiser (October 1996)
Litigation Skills for the Appraiser: An Overview (November 1996)
Dynamics of Office Building Valuation (November 1997)
PROFESSIONAL EXPERIENCE
Appraisal experience includes the analysis and preparation of comprehensive narrative
appraisal reports, evaluating a variety of interests in numerous property types including multi-
family residential, industrial, office, retail, rural and urban land, special purpose properties,
right-of-way land rights acquisition matters, and related consultation issues.
Appraisal work product has been accepted and utilized for mortgage lending, estate tax
planning and settlement, property exchange, corporate management decisions and partial
taking just compensation analysis by eminent domain acquiring agencies.
PROFESSIONAL DESIGNATIONS and AFFILIATIONS
MAI - The Appraisal Institute #10984
State Certified Real Estate Appraiser-General # 1322012-G
Texas Real Estate Salesman - Inactive
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ADDENDUM
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EVALUATION ASSOCIATES
REAL ESTATE ANALYSIS AND CONSULTATION
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April 8, 1999
Eddie Vassallo
Law Offices of Eddie Vassa!lo, P.C.
3710 Rawlins Suite 1200
Dallas, Texas 75219-4217
Re:
Proposed acquisition out of the William F. Callejo, Trustee property for the widening and
improvement of Coppell Road
Dear Mr. Vassallo:
We have been employed by the City of Coppell to appraise the proposed right of way acquisition and
associated easements for the referenced Coppell Road project. Mr. Ken Griffin has provided copies
of correspondence which identified you as the property representative and spokesperson. As a
follow-up to our telephone call to your office this morning, I am formally requesting pertinent
property information. We respectfully requcjt the following items:
1)
2)
3)
4)
5)
6)
What is the recent marketing history (say, past 2 years) for the subject property? What is the
current asking price? Has Mr. Callejo received any purchase offers? If so, at what price?
Is the oil well operation located on the subject tract?
Could you provide a survey which depicts road frontages, total land size and any easements?
Could you provide a topo map for the subject property?
What is the owner's plans for the tract? Development? Investment?
Do we have permission to enter onto the property at our own risk? If so, I hereby indemnify
your client against any and all claims of any type including bodily harm and/or damage to my
personal property which may arise from such property entry. Without this permission I will
inspect the property from the public street, plats and aerial photography.
Your assistance in this matter is greatly appreciated. We would be happy to meet with you to discuss
this property and the impact of the acquisition. Please send your reply to me at the following
address:
Mr. Jim Cullar
Evaluation Associates
11615 Forest Central Drive, Suite 205
Dallas, Texas 75243-3917
Sincerely,
Jim Cullar
11615 Forest Central Drive · Suite 205 · Dallas, Texas 75243-3917 · (214) 553-1414 · Fax (214) 553-1615
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ASSUMPTIONS, LIMITING CONDITIONS & DISCLOSURES
For the purpose of this appraisal, the following assumptions and limiting conditions are made a part
thereof:
3.
4.
5.
6.
7.
8.
That title to the individual property will be good and marketable and that title is in fee simple
under single ownership unless otherwise stated.
No responsibility is assumed by the appraiser for matters of legal character. The value is
reported without regard to questions of title, boundaries, encumbrances, easements and
encroachments. All existing liens and encumbrances have been disregarded, and the property
is appraised as though flee and clear under responsible ownership and management unless
otherwise stated.
The valuation is reported in dollars of currency prevailing on the date of the appraisal.
If the subject is an improved property, the sketches in this report are approximate and are
included, together with the photography, to assist the reader in visualizing the property.
All information and comments pertaining to this and other properties represent the
combnation of facts provided by others and the professional opinion of the appraiser, formed
after careful examination and study of the subject property. Hence, the work product of the
appraiser is an estimate. While it is believed that the information, estimates and analyses
which led to the herein stated estimated value conclusions are correct, and the primary
appraiser is prepared to testify as to the applicability of the selected data to the valuation of
the subject property, the appraiser does not guarantee any element of the data base. Nor does
he assume any financial liability for errors in facts provided by others, analysis or judgement.
The client' s remedy is referral of a faulty analysis to the Appraisal Institute, the International
Right of Way Association, and/or the Texas Appraisal Licensing and Certification Board.
This is a financial decision document. It is not a marketing tool. Therefore no part of the
contents of this report (especially any conclusions as to value, the identity of the appraiser or
the firm with which he is connected, or any reference to the professional organizations that
designate the appraisers or to the applicable designation) shall be disseminated to the public
through advertising media, public relations media, news media, sales media or any other
public means of communication other than the intent of the report as a financial decision tool
for the original client.
Given adequate preparation notice, the appraiser is prepared to provide testimony and to
appear in court by reason of this appraisal, under separate contract, at the request of the
original client.
The distribution of the total valuation in this report between land and improvements applies
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12.
13.
ASSUMPTIONS, LIMITING CONDITIONS & DISCLOSURES VALUE
only under the existing program of utilization. The separate valuations for land and buildings
must not be used in conjunction with any other appraisal and are invalid if so used.
Also, the value is estimated under the assumption that there will be no international or
domestic, political, economic, or military actions that will seriously affect real estate values
throughout the country.
Real estate values are influenced by a large number of external factors. The analysis included
all of the data necessary to form an informed highest and best use and value conclusion. The
report does not include all the data necessary to support the value estimate. All pertinent facts
have been referenced in this report, but we do not guarantee that we have knowledge of all
factors that might influence the value of the subject. Due to rapid changes in the external
factors, the value estimate is considered reliable only as of the date of the appraisal and any
related testimony..
In the event the appraisal is based upon proposed improvements, it is assumed that the
improvements will be constructed in substantial conformity with plans and specifications that
have been furnished the appraiser, and with good materials and workmanship. It is also
assumed that the proposed foundation and construction techniques are adequate for the
existing sub-soil conditions.
Unless otherwise stated in this report, the existence of environmentally hazardous or
damaging material, which may or may not be present on the property, was not observed by
the appraiser. The appraiser has no knowledge of the existence of such materials on or in the
property. The appraiser, however, is not qualified to detect such substances. The presence
of substances such as asbestos or urea-formaldehyde may affect the value of the property.
The value estimate is predicted on the assumption that there is no such material on or in the
property that would cause such a loss in value. No responsibility is assumed for any such
conditions, or for any expertise or engineering knowledge required to discover them. The
client, property owner and/or prospective purchaser is advised to conduct environmental due
diligence with regard to the property including having the necessary environmental
assessments and/or environmental audits made to determine if any environmental problems
related to the subject property exist. If any environmental problems are found which effect
the subject property, the value estimate contained in this report is subject to review and may
not be valid.
The American and Disabilities Act (ADA) became effective January 26, 1992. I (we) have
not made a specific compliance survey and analysis of this property to determine whether or
not it is in conformity with the various detailed requirements of the ADA. It is possible that
a compliance survey of the property together with a detailed analysis of the requirements of
the ADA could reveal that the property is not in compliance with one or more of the
requirements of the act. If so, this fact could have a negative effect upon the value of the
property. Since I (we) have no direct evidence relating to this issue, I (we) did not consider
possible noncompliance with the requirements of ADA in estimating the value of the property.
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DEFINITION OF TERNIS
Market Value: The most probable price that a property should bring in a competitive and
open market under all conditions requisite to a fair sale, the buyer and seller each acting
prudently and knowledgeably, and assuming the price is not affected by undue stimulus.
Implicit in this definition is the consummation of a sale as of a specified date and the passing
of title from seller or buyer under conditions whereby:
a,
c,
e,
buyer and seller are typically motivated;
both parties are well informed or well advised, and each acting in what they consider
their best interest;
a reasonable time is allowed for exposure in the open market;
payment is made in cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
the price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated with
the sale.
Value in Use: The value of an economic good to its owner-user which is based on the
productivity (privacies in income, utility or amenity form) of the economic good to a specific
individual.
Highest and Best Use: The most profitable likely use to which a property can be put. That
use offand which may reasonably be expected to produce the greatest net return to land over
a period of time. That legal use which will yield to land the highest present value.
Abbreviations commonly used in the appraisal of real estate:
SF = square feet RR = railroad
/AC = per acre ROW= right of way
Vehicular traffic artery abbreviations:
St. = Street FM =
Ln = Lane US =
Dr = Drive I --
Rd = Road Frwy =
PI = Place Expwy =
Pkwy = Parkway Hwy =
Ave = Avenue SH =
Blvd = Boulevard N =
Cir = Circle S =
Ct = Court E =
Mt. = Mount W =
Farm to Market Rd
United States Highway
Interstate Highway
Freeway
Expressway
Highway
State Highway
North
South
East
West