ST9304-SY000211 (2) EVALUATION ASSOCIATES
-- RIGHT OF WAY LAND RIGHTS ACQUISITION APPRAISAL SOLIJTIONS
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
BELTLINE ROAD PROJECT 91-829
PARCELS 8-DE-l, 8-DE-2, & 8 SE
Property Owner: Crow-Billingsley MacArthur, Ltd.
_ Valuation Conclusion:
Whole Property (Land Only) $570,000
Proposed Slope Easement $ 463
-- Proposed Drainage Easements $ 4,597
Remainder Before Acquisition $564,940
Remainder After Acquisition $564,940
-- Loss in Value of Remainder A_tier $ -0-
Determination of
- Compensation:
Proposed Acquisition Areas $ 5,060
Compensation for Improvements (Fencing) $ -0-
-- Loss in Value of Remainder After $ -0-
Temporary Construction Easement $ -0-
-- Total Compensation $ 5,060
100°,4 of the proposed acquisition is within the City of Dallas
Date of Appraisal: February 7, 2000
_ Location: Southwest quadrant of Beltline Road and North Lake Road,
Dallas, Texas
_ Legal Description: Being part of Abstract No. 312, Block 8461, City olD'alias,
Dallas County, Texas
_ Land Size: Whole Property 10.4380 Acres*
Right of way Area Permanent Slope Easement
and Permanent Drainage
-- Easements
Zoning: A(A), Agricultural, residential
Highest and Best Use:
As if Vacant BEFORE: Hold for possible future light industrial development
- As if Vacant AFTER: Hold for possible future light industrial development
* Whole property size obtained from Dallas Central Appraisal District Tax Maps & Records
11615 Forest Central Drive · Suite 205 · Dallas, Texas 75243 · (214) 553-1414 · Fax (214) 553-1615
- EVALUATION ASSOCIATES
RIGHT OF WAY LAND RIGHTS ACQUISITION APPRAISAL SOLUTIONS
_ February 11, 2000
_ Mr. Ken Griffin, P.E.
City Engineer
City of Coppell
-- 255 Parkway Blvd/P.O. Box 478
Coppell, Texas 75019
Re: BELTLINE ROAD PROJECT '91-829
Parcels g-DE-l, 8-DE-2, and 8-SE
-- Property Owner: Crow-Billingsley MacArthur, Ltd.
An appraisal of a proposed 0.0275 acre Permanent Drainage Easement (DE-l), a 0.0663 acre
Permanent Drainage Easement (DE-2) and a 0.0170 acre Slope Easement out of an
-- approximate 10.4380 acre tract of land situated along the south side of Beltline Road and the
west side of North Lake Road. The parent tract is legally described as being part of the Jacob
G. Carlock Survey, Abstract No. 312, and James Parish Survey, Abstract No. 1139, City of
-- Dallas, 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) and proposed acquisition areas based on the economic conditions
which prevailed on the current valuation date of February 7, 2000. 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 drainage and slope easements which will be related
_ to the widening and improvement of Beltline Road between MacArthur Boulevard and Denton Tap
Road.
_ This appraisal was prepared in accordance with valuation principles which conform with the State of
Texas condemnation laws and subsequent legal precedents based on, but not limited to, State v
Carpenter, 89 SW2nd, 1936. Further this report addresses appraisal guidelines of the International
-- Right of Way Association, the Appraisal Institute, and is classified as a 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 addendum section of this report.
11615 Forest Central Drive · Suite 205 · Dallas, Texas 75243 · (214) 553-1414 · Fax (214) 553-1615 2
Mr. Ken Griffin, P.E.
February 11, 2000
-- The subject property was inspected from various points of reference on several dates in October,
November and December 1999, and January and February 2000, with the date of appraisal being
February 7, 2000. -The boundaries of the proposed easement areas have not been marked. The
proposed acquisition area is shown in the photographs contained in this report.
_ Based on a review of engineering and profile plans provided by City of Coppell, and an inspection
of the subject whole property, at~er the acquisition the site will have the same access and exposure
when compared with the before condition. Marketability and utility of the property should be
_ unchanged. Thoroughfare safety along the frontage of subject property will be significantly
improved. The appraisers have analyzed the subject property both before and after the proposed
Slope Easement and Drainage Easements and found no diminution in value. The proposed right of
- way area is located at the northern boundary of the property, its frontage along Beltline Road, and
the eastern boundary of the property, its frontage along North Lake Road. Details of that analysis
can be found in the final section of this report.
Neighborhood Description
The subject property is situated in southeastern quadrant of the City of Coppell. The immediate area
-- consists of a large amount of vacant land, much of which is low lying and within the flood plain and
flood way of Grapevine Creek and the Elm Fork Trinity River. Much of the land area along Beltline
Road is. unimproved due to the flood plain situation. Improved properties in the area include retail
-- and service oriented uses at all four comers of the intersection of Beltline Road and MacArthur
Boulevard, and a new single family subdivision currently being developed along the north side of
Beltline Road across from the subject. Other improved properties in the vicinity include several
-- additional residential subdivisions consisting of good quality single family residences, good quality
multi-family projects along Beltline Road and MacArthur Blvd, and the Riverchase Country Club and
Golf Course, concrete batch plant, and a night club across Belt Line Road from the subject. The most
-- notable feature of the area is the large amount of vacant land, and the lack of commercial construction
along Belt Line Road between MacArthur Blvd and Denton Tap Rd to the west. In summary, the
subject area is a suburban, moderately developed neighborhood which includes a large amount of
- vacant land situated in the Grapevine Creek and Elm Fork Trinity River flood plains, as well as good
quality residential and prominent commercial uses positioned at the intersection of Beltline Road and
MacArthur Boulevard.
Subject Site Description
_ According to investigation of Dallas County Plat Maps, field review by Evaluation Associates, and
information obtained from the Dallas Central Appraisal District (DCAD), the subject whole property
fronts along the south side of Beltline Road, and the west side of North Lake Road. The tract is
-- triangular in shape; it includes approximately 300 feet of frontage on North Lake Road, the eastern
boundary, and converges to a point on Beltline Rd some 2,000 feet west of North Lake Road. Please
see Plat Map for visual view of the property. According to maps obtained from DCAD and the City
- of Dallas, the subject whole property contains 10.4380 acres. Topographical features include terrain
which is generally level with the grade of Beltline Road and at several points slightly above the grade
of Beltline Road. Based upon our review of current FEMA Maps Panel Number 480171 0020 D,
- dated July 2, 1991 - a small portion of the subject property is identified as being within the defined
Mr. Ken Griffin, P.E.
February 11, 2000
-- flood hazard area. The area depicted as being in the flood plain encompasses the northeast corner
of the property, however it is believed that minor engineering during future development of the tract
would elevate this area above the flood plain. Thus, there is no measurable negative impact to the
property.
The subject property is adjacent to and just north of the TU Electric North Lake power generating
plant. According to information obtained by the appraisers, the subject property was previously
owned by TU Electric but was acquired by the current owners in 1990. Surrounding properties
include two, older single family residences to the southeast, TU Electric and North Lake recreation
areas to the south and southwest, and new good quality single family residences to the north across
the DART Rail Line. Public utility services available in the immediate area, but not directly adjacent
to the subject tract include electricity, water and sanitary sewer service. These obstacles to
development will be explained further in the report.
_ Zoning
Based on our review of the City of Dallas Zoning Map, the subject whole property is zoned A(A),
Agricultural Use. The City requires and maintains certain building and site requirements in this
-- district, a copy of which has been retained in the file. Uses permitted include animal production, crop
production, commercial stable, and single family residence on minimum lots of 3.0 acres or more.
According to a representative of the City of Dallas Planning and Zoning Department, because this
-- area includes a very small portion of land and is isolated from the City of Dallas, no Land Use Study
has been conducted for the area. Generally, the City of Dallas would likely permit a change in use
which is compatible with the surrounding area, and would work with the City of Coppell to determine
-- an appropriate land use for the subject tract. As previously discussed, the subject is adjacent to the
TU Electric power generating plant on the north, and vacant land to the east and west. A compatible
use for the subject is believed to be that of light industrial, such as office warehouse or office
- showroom which would benefit from frontage along Beltline Road and proximity to other major
traffic routes.
-- 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
if it 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 10.4380 acres. The tract has an
irregular shape, approximately 2,000 feet frontage along the south side of Beltline Road, and 300 feet
- of frontage along the west side of North Lake Road. The frontage on the two roads provides for
good ingress and egress as well as visibility and exposure. The topography of the tract is generally
- 4
Mr. Ken Grittin, P.E.
February 11, 2000
-- level with, and a few areas being above, the grade of Beltline Road. Water and sanitary sewer
service would need to be extended to the property. According to Mr. Mike Martin with the City of
Coppell, existing water lines are at Moore Rd and Mocking Bird Rd, just west and east of the subject,
-- and sewer is to the east at Grapevine Creek. Thus, although utility services must be extended to the
property, the subject is available to be put to most any use.
The legal limits in this case are determined by the zoning ordinance. The subject tract is zoned for
agricultural and residential use by the City of Dallas. Of these two uses, agricultural is an interim use.
_ Thus, the appraisers reviewed and analyzed many large residential lot sales in the immediate vicinity.
Several of the lot sales are located on Carter Dr, just north of the subject, and ranged in size from
approximately one acre to over three acres. New homes in this area are estimated to range from
_ $500,000 and up. This interior location is conducive to residential use, whereas the subject location
along a primary east/west traffic route and in proximity to the power generating station is vastly
inferior and unlikely to attract residential development. However, as noted, our discussions with
- representatives with the cities of Dallas and Coppell, indicate a change in use to office/warehouse or
office/showroom would be approved. Thus, the combined legal and physical factors indicate a light
industrial use for the subject would be acceptable.
An analysis of financial factors would include determining uses which produce a market accepted rate
of return based on the risks involved. As noted, the subject tract has extensive frontage along Beltline
-- Rd, and necessary sewer and water utilities would have to be extended to the property. In addition
there is a significant amount of vacant industrial zoned land in the City of Coppell which would attract
development prior to the subject. However, it is believed that given the subject location, the time
-- table for the Beltline Rd widening project, existing and planned project for the surrounding area, an
approximate two year holding period is anticipated for the subject.
-- Highest and Best Use Conclusion
The highest and best use of the whole subject property is to hold for future 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. It is noted that the property is currently zoned for residential development, however the
following appraisal and analyses is based on a rezoning to light industrial for office/warehouse or
office/showroom use. Several sale transactions of industrial zoned land 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.
Based on information supplied and investigations made by Evaluation Associates personnel, it appears
- that after the completion of the Beltline Road widening project there should be no negative impact
on the remainder resulting from the proposed drainage easements and slope easement acquisitions.
Access and visibility will be the same both before and after the proposed acquisition. Therefore, the
-- site is not adversely affected by the proposed acquisition and the subject property is valued on a land
_ 5
Mr. Ken Griffin, P.E.
_ February 11, 2000
_ only basis. Additional detail and discussion in support of this conclusion can be found in the Analysis
and Valuation of the Proposed Acquisition Area section.
_ Conclusion
Our research has included an investigation of market and neighborhood trends which are believed to
influence the value of the subject whole property (Land Only). Specific attention and consideration
_ was given to the value of the subject property, both before and after the proposed right of way
acquisition area. Based upon our analyses and interpretation of the data, the Market Value of the
proposed temporary acquisition areas as of February 7, 2000 is estimated to be:
m TitOtJSANI S XTV i)OLI ARS
($5,060)
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. 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
~ J~' ~'~Jr'' SRPA' SRA' S~~A '
6
-- PHOTOGRAPHS OF SUBJECT PROPERTY
Aerial photographs of the subject property
PHOTOGRAPHS OF SUBJECT PROPERTY
Aerial photographs of the subject property
-- PLAT MAP
' PLAT BOOKS ^SS,GNEE JACOB O. C_ARL_OCK
3 I ~ CERT. NO, - SURV. NO. 3 O~'- P
EQUAL I INCH LOCATION N. 40' W, 15 M I
Evaluation Associates
9
_ FLOOD PLAIN MAP
Evaluation Associates
10
-- 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 of the 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 entire subject property is impacted by flood plain with no area currently available to
- be developed. The area within the flood plain has diminished utility and, consequently, diminished
value. Accordingly, the subject property was evaluated and valued based on being entirely within the
flood plain. That being the case, only the Sales Comparison Approach is employed in this instance.
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 rights 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 which is valued
- as being zoned for light industrial use.
12
- LAND SALE SUMMARY
Land Sale No. 1 Mapsco # 11A-J
_ Location: E/s Crestside Drive, Apprx 1,100 fl south of Wrangler Drive, Coppell
Grantor: MCDF Holding Company
Grantee: ACLP Northlake, LP
-- Legal Description: Portion of Abstract No. 56, Dallas County
Date of Sale: April 21, 1999 Volume/Page: 99077/324
Site Data:
-- Size: 3.5653 Acres
Zoning: Industrial
Utilities: Available to the site
-- Frontage: Crestside Drive
Shape: Irregular
Topography: Generally level.
Easements: None detrimental noted
Improvements: None
Intended Use: Investment
_ Consideration: $348,915 or $2.25/SF
Verified by: Roddy
Financing: Cash to seller
- Comments: Tract is within industrial park in city of Coppell, property is currently
vacant.
-- F:
13
-- LAND SALE SUMMARY
Land Sale No. 2 Mapsco # 12-S
-- Location: N/s Valley View Ln, apprx 275 ft east of Luna Rd, also fronts Keenan
Bridge Rd, Farmers Branch
Grantor: Bonneau Family, Ltd.
-- Grantee: Laws Street, LP
Legal Description: Part of Abstract No. 926, Dallas County
Date of Sale: March 4, 1998 Volume/Page: 98043/7216
Site Data:
Size: 8.389 Acres
Zoning: Industrial
Utilities: Available to the site
_ Frontage: Valley View Ln, Keenan Bridge Rd
Shape: Irregular
Topography: Generally level.
_ Easements: None detrimental noted
Improvements: None
Intended Use: Investment
Consideration: $1,000,000 or $2.74/SF
-- Verified by: Roddy
Financing: Cash to seller
Comments: Property is currently vacant. Surrounding improved properties
include office/tech and office space.
14
-- LAND SALE SUMMARY
Land Sale No. 3 Mapsco # 12-Q
- Location: NWC Diplomat Dr and Diplomat Ct, Farmers Branch
Grantor: Mission Land Co.
Grantee: D F W Freeport/Royal Trade Center, JV
-- Legal Description: Lot 4B, Block 6 Valwood Park
Date of Sale: September 9, 1998 Volume/Page: 98176/5901
Site Data:
-- Size: 5.295 Acres
Zoning: Industrial
Utilities: Available to the site
Frontage: Diplomat Dr, Diplomat Ct
Shape: Irregular
_ Topography: Generally level.
Easements: None detrimental noted
Improvements: None
_ Intended Use: Construction of an office/warehouse building
Consideration: $634,288 or $2.75/SF
Verified by: Weldon Davis with grantee
-- Financing: Cash to seller
Comments: Office/showroom building is nearing completion on the property.
-- LAND SALE SUMMARY
Land Sale No. 4 Mapsco # 12-Q
- Location: NEC Diplomat Dr and Diplomat Ct, Farmers Branch
Grantor: Mission Land Co.
Grantee: D F W FreeporffRoyal Trade Center, JV
-- Legal Description: Lot 1, Block 8, Valwood Park
Date of Sale: September 9, 1998 Volume/Page: 98176/5874
Site Data:
-- Size: 5.104 Acres
Zoning: Industrial
Utilities: Available to the site
Frontage: Diplomat Dr, Diplomat Ct
Shape: Irregular
_ Topography: Generally level
Easements: None detrimental noted
Improvements: None
_ Intended Use: Construction of an office/showroom building
Consideration: $611,408 or $2.75/SF
Verified by: Weldon Davis with grantee
-- Financing: Cash to seller
Comments: Office/showroom has been completed.
- 16
LAND SALES MAP
17
_ LAND VALUATION SUMMARY
The subject property is located in the southeastern portion of Coppell, adjacent to the TU Electric
-- power generating plant. Other adjacent properties include vacant tracts of land. 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.
-- RECAPITULATION OF SALES DATA
1 4/99 3.5653 IND $2.25
2 4/98 8.389 IND $2.74
3 9/98 5.295 IND $2.75
4 9/98 5.104 IND $2.75
-- SUBJECT 2/2000 10.4380 IND ....
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 tract for similarities and differences. The elements considered to he
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 property. The adjustment
process compensates for the difference between the competitive sale and subject and provides an
indication of value for the subject property.
Analysis and Correlation
_ The preceding summary chart displays four 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 has 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.
18
Land Sale Summar~
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 ora
-- 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 to the seller. No adjustment is
applied.
- 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. The sales were purchased for industrial
construction purposes. No adjustment for this factor is applied.
Market Conditions
The sales occurred over an approximate 30 month period prior to the valuation date (February 2000).
-- The sales did not provide substantive evidence on which to base a time/market conditions adjustment.
However, during the past 18 months the general real estate market in the Dallas/Fort Worth Area has
experienced strong gains in occupancy and increases in rental rates. The appraisers reviewed the
Industrial Report published by M/PF Research, Inc, for North Irving (of which the subject is
included). The effective rental rates for this Sub-market reflect a range of annual increases of 0%-to-
-- 23%. However, we also compared sale prices of vacant tracts of land over the past two plus years
in the surrounding vicinity. These land sales indicated no price increase over the selected time period,
and thus no adjustment for market conditions is supportable.
Location
The influence of location is a composite of numerous attributes such as access, exposure, visibility,
quality and consistency of surrounding development, proximity to mai or roadways and location within
the perceived growth pattern as evidenced by existing and planned development.
_ Each of the four sale properties are situated within developed industrial parks, Sale No. 1 is in
Coppell and Sale Nos 2, 3 and 4 are located in the city of Farmers Branch. Improved properties in
the vicinity of these transactions consist of good quality office/warehouse and office/tech buildings
- in a homogeneous environment. Also, as noted, Sale Nos 2 - 4 are located in city of Farmers Branch
19
Land Sale Summar~
whereas the subject is located in the city ofCoppell. A review of property tax rates for the two cities
reveals tax rates of $0.46 per $100 valuation for Farmers Branch compared to $0.64 per $100
valuation for Coppell. In addition, it has been estimated that due to the time table for the widening
of Beltline Rd it will be approximately two years before the subject tract could be capable of
-- attracting industrial development similar to the developments which are adjacent to the land sale
properties. Thus, an additional location adjustment was applied to Sale Nos. 2, 3 and 4. Overall, the
location of the four sale properties is rated superior to the subject and a downward adjustment is
applied to each.
-- Physical Characteristics
The analysis of physical characteristics considers such factors as shape, depth, frontage, zoning,
_ topography and the availability of public utility services. The shape of the subject property is
irregular, generally triangular and literally comes to a point at its western boundary. The irregular
shape limits development of the extreme western portion of the tract. Thus, each of four sale
properties was rated superior to the subject, and a downward adjustment was required for this
physical feature. At the time of development, it will also be necessary to extend sewer and water
-- utilities to the tract. Inquiries related to the anticipated construction cost of these important utilities,
indicate that this expense will be in the $100,000 range to extend utilities as well as provide
deceleration and acceleration lanes on Beltline Road for ingress and egress to the property. A
downward adjustment was appropriate for Sale Nos 1, 2, 3, and 4 to address the lack of utilities at
the subject property. Although the subject property is currently zoned for agricultural, which permits
- only large lot residential uses at this time, it has been determined, after discussions with
representatives of the cities of Dallas and Coppell, that a light industrial use of the subject tract is the
_ most likely and acceptable future land use. Sale Nos. 1 - 4 are zoned for industrial development, and
were rated similar to the subject with regard to zoning.
Size
The market for real estate is comparable to that for other commodities in that price is sometimes
-- influenced by volume (quantity or scarcity). It can generally be demonstrated that as volume
decreases, the price per unit will likely dsc. In contrast, unit price typically declines when volume
_ increases. If all other attributes are equal the site may sell for more on a unit basis than a larger one
due to reduced holding costs and less risk. However, larger parcels which have potential for various
uses, even though additional development and an extended period prior to sale, are adaptable to
larger scale intended uses and sometimes sell for a premium. Therefore, in real estate, the aspect of
quantity discounting should not be assumed because it is not an economic principle, but rather an
- inconsistent market reaction. It should be supported by market transactions if available. The subject
site contains approximately 10.4380 acres. The sales range in size from 3.5653 acres to 8.389 acres.
A comparison of the sale properties fails to support a size adjustment. The following exhibit presents
a reconciliation of the adjustment process.
20
Land Sale Summary
SP/SF $2.25 $2.74 $2.75 $2.75
Rights Conveyed Fee simple Fee simple Fee Simple Fee simple
Financing Cash Cash Cash Cash
Conditions of Sale Market Market Market Market
Market Conditions Similar Similar Similar Similar
Adjusted Price $2.25 $2.74 $2.75 $2.75
Location Superior Superior Superior Superior
Physical features Superior Superior Superior Superior
Utilities Superior Superior Superior Superior
Size Similar Similar Similar Similar
Net Adjustment -40% -55% -55% -55%
Indicated Value $1.35 $1.24 $1.24 $1.24
The sale prices ranged from $2.25/SF to $2.75/SF before the analysis. A~er the analysis, the adjusted
values ranged between $1.24 and $1.35/SF. A~er adjustments were made to the sale properties, this
approach produced a relatively nan-ow range of indicators. In view of these indicators, the Market
Value of the subject land is estimated to be based on $1.25/SF, calculated as follows:
10.438 Acres x 43,560 -- 454,679 SF
454,679 SF x $1.25/SF = $568,349
Rounded to $570,000
21
CORRELATION AND CONCLUSION
The subject property is valued as an unimproved tract of land. 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. Four land sales were 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 only 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 February 7, 2000, is estimated to be:
FIVE HUNDRED SEVENTY THOUSAND DOLLARS
$570,000
-- PROPOSED ACQUISITION MAP - SLOPE EASEMENT
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Evaluation Associates
23
METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
BEL rLINE ROAD
PROJECT 91-829
PARCEL 8-SE
OCTOBER 28, 1998
SLOPE EASEMENT
BEING a 0.0170 acre tract of land in the City of Dallas, Texas, part of the Jacob G. Carlock Survey,
Abstract No. 312, Dallas County, Texas, and part of a Tract Two described by instrument to Crow-
Billingsley North Lake HB&T Joint Venture filed on May 25, 1990 in Volume 90106, Page 2492
and by plat in Volume 89096, Page 2351 in the Deed Records Dallas County, Texas (D.R.D.C.T.),
and being more particularly described as:
BEGINNING at a set 1/2 inch iron rod with a yellow plastic cap stamped "HALFF ASSOC., INC.",
hereinafter referred to as "with cap" located at the eenterline station 61+45.48, offset 60.00 feet
right as defined in Public Works Project number 490403.1 / 91-829 i.n the project records of Dallas
County, Texas, on the existing south right-of-way line of Beltline Road (variable width), said point
being the northwest property comer of said Tract 2, and on the north line of a 19.0 net acre tract
filed on June 17, 1955, to Dallas Power & Light Company (D.P.&L.) by deed in'D.R.D.C.T, at the
point of curvature of a circular curve t~ the right having a radius of 2804.79 feet and whose chord
bears North 69 degrees 55 minutes 30 seconds East, a distance of 249.88 feet;
THENCE Northeasterly, along said existing south right-of-way line and along said curve, through a
central angle of 05 degrees 06 minutes 22 seconds, an arc length of 249.96 feet to a set 1/2 inch iron
rod with cap for comer said point being non-tangent;
THENCE South 17 degrees 31 minutes 17 seconds East, departing said existing south right-of-way
line, a distance of 5.00 feet to a set I/2 inch iron rod with cap for comer;
THENCE South 71 degrees 32 minutes 58 seconds West, returning to said north line of DP&L tract
and the south line of said Tract Two a distance of 90.74 feet, to a set 1/2 inch iron rod with cap at
the point of curvature of a non-tangent circular curve to the left having a radius of 1330.00 feet and
whose chord bears South 70 degrees 47 minutes 53 seconds West, a distance of 158.97 feet;
THENCE Southwesterly along said curve and along said north line through a central angle of 06
degrees 51 minutes 09 seconds, an arc length of 159.06 feet, to the POINT OF BEGINNING and
containing 741 square feet or 0.0170 acres of land more or less.
Basis of bearing is Texas state plane north central zone 4202 (1983 adjustment) based on GPS
measurements from triangulation station GPS4 (PID CS3408). Convergence angle at GPS4 is
(+) 00048'34.9.. as computed by Corpsc0n version 4.11.
Colin J. H~'nry, Registec~ed Professional Land Surveyor ~.2,:~.~J
AVO: 1411 l\wp\98-8se.doc SI-IT. 1 OF I
Evaluation Associates
24
-- PROPOSED ACQUISITION MAP - DRAINAGE EASEMENT (DE-l)
Evaluation Associates
25
-- METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
BELTLINE ROAD
PROJECT 91-829
PARCEL 8-DE-1
OCTOBER 28, 1998
DRAINAGE EASEMENT
BEING a 0.0275 acre tract of land in the City of Dallas, Texas, part of the James Parrish Survey,
Abstract No. 1139, Dallas County, Texas, and part of a tract described by instrument as Tract Two
to Crow-Billingsley North Lake I-IB&T Joint Venture filed in Volume 90106, Page 2492 and by
plat in Volume 89096, Page 2351 in the Deed Records of Dallas County, Texas (D.R.D.C.T.), and
being more particularly described as follows:
BEGINNING at a set 1/2 inch iron rod with a yellow plastic cap stamped "HALFF ASSOC., INC."
hereinafter referred to as "with cap" located at the centefline Station 68+08.81, offset 68.25 feet
right, as defined in Public Works Project number 490-403.1 / 91-829 in the project records of
Dallas County, Texas, on the existing south fight-of-way line of Beltline Road (variable width),
said point being the point of curvature of a circular curve to the right having a radius of 2804.79
feet and whose chord bears North 81 degrees 14 minutes 40 seconds East, a distance of 60.00 feet;
THENCE Northeasterly along said right-of-way line and said curve, through a central angle of 01
degree 13 minutes 33 seconds, an arc length of 60.00 feet to a set 1/2 inch iron rod with cap for
comer, said point being non-tangent;
THENCE South 09 degrees 19 minutes 40 seconds East, departing said existing south right-of-way
line, a distance of 20.00 feet to a set I/2 inch iron rod with cap at the point of curvature of a non-
tangent circular curve to the left having a radius of 2784.79 feet and whose chord bears South 81
degrees 14 minutes 55 seconds West, a distance of 60.00 feet;
THENCE Southwesterly along said curve through a central angle of 01 degree 14 minutes 04
seconds an arc length of 60.00 feet, to a set 1/2 inch iron rod with cap for comer, said point being
non-tangent;
THENCE North 09 degrees 19 minutes 40 seconds West, and returning to said existing south rightr
of-way line of Beltline Road, a distance of 20.00 feet to the POINT OF BEGINNING and
containing 1200 square feet or 0.0275 acres of land more or less.
Basis of bearing is Texas state plane north central zone 4202 (1983 adjustment) based on GPS
measurements from triangulation station GPS4 (PID CS3408). Convergence angle at GPS4 is
(+) 00o48'34.9.' as computed by Corpscon version 4.11.
Colin J. He¥~,Regist~red/~¥ofessional Land Surveyor
Texas Regi~tr~'tion Numl;~ 5230
AVO: 1411 l\wp\98-Sdel.doc SHT. I OF 1
Evaluation Associates
26
-- PROPOSED ACQUISITION MAP - DRAINAGE EASEMENT (DE--2)
Evaluation Associates
27
-- METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
BELTLINE ROAD
PROJECT 91-829
PARCEL 8-DE-2
OCTOBER 28, 1998
DRAINAGE EASEMENT
BEING a 0.0663 acre tract of land in the City of Dallas, Texas, part of the Jacob G. Carlock Survey,
Abstract No. 312 in Dallas County, Texas and part of a tract described by instrument a~ Tract 2 to Crow-
Billingsley North Lake HB&T Joint Venture filed in Volume 90106, Page 2492 and by plat in Volume
89096, Page 2351 in the Deed Records Dallas County, Texas (D.R.D.C.T.), and being more particularly
described as follows:
BEGINNING at a set 1/2 inch iron rod with a yellow plastic cap stamped "HALFF ASSOC. INC.",
hereinafter referred to as "with cap" for comer and located at centerline Station 82+14.71, offset'73.00
feet fight, as defined in Public Works Project number 490-403.1 / 91-829 in tlie project-records of Dallas
County, Texas at the most northerly point of a comer clip on the southwest comer of the intersection of
Beltline Road (variable width) and Northlake Road (80 feet wide);
THENCE South 26 degrees 14 minutes 10 seconds East, along said coruer clip a distance of 57.81 feet to
a found 3/8 inch iron rod on the existing west fight-of-way line of Northlake Road, at the point of
curvature of a non-tangent circular curve to the left having a radius of 858.51 feet and whose chord bears
South 16 degrees 00 minutes 13 seconds West, a distance of 22.41 feet;
THENCE along said existing west right-of-way line and said cUrve through a central angle of 01 degree
29 minutes 43 seconds, an arc length of 22.41 feet to a set 1/2 inch iron rod with cap for corner said point
being non-tangent;
THENCE North 26 degrees 14 minutes 10 seconds West, departing said existing west fight-of-way line, a
distance of 45.85 feet to a set 1/2 inch iron rod with cap for corner;
THENCE North 49 degrees 44 minutes 32 seconds West, a distance of 51.60 feet to a set 1/2 inch iron rod
with cap for corner;
THENCE North 70 degrees 40 minutes 05 seconds West, a distance of 131.79 feet to a set 1/2 inch iron
rod with cap at the point of curvature of a non-tangent circular curve to the left having a radius of 2799.79
feet and whose chord bears North 75 degrees 01 minute 02 seconds West, a distance of 14.27 feet;
THENCE Northwesterly along said curve through a central angle of 00 degrees 17 minutes 31 seconds, an
arc length of 14.27 feet to a set 1/2 inch iron rod with cap for corner said point being non-tangent;
THENCE North 14 degrees 55 minutes 52 seconds East, departing said curve and returning to said
existing south fight-of-way line of Beltline Road, a distance of 5.00 feet to a set 1/2 inch iron rod with cap
at the point of curvature of a circular curve to the right having a radius of 2804.79 feet and whose chord
bears South 73 degrees 16 minutes 26 seconds East, a distance of 184.94 feet;
AVO: 1411 l\wl)\98-Sde2.doc SHT. 1 OF2
Evaluation Assoclate~
28
-- METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
THENCE Southeasterly, along said existing south right-of-way line of Beltline Road and along said curve,
through a central angle of 03 degrees 46 minutes 43 seconds, an arc length of 184.97 feet to the POINT
OF BEGD4NING and containing 2,886 square feet or 0.0663 acres of land more or less.
Basis of bearing is Texas state plane north central zone 4202 (1983 adjustment) based on GPS
measurements from triangulation station GPS4 (PID CS3408). Convergence angle at GPS4 is (+)
00°48'342as cTuted by Corpscon version 4.11.
Colin J. H~ry, R~giste~d er6fessional Land Surveyor
Texas ~istration Nt~ber 5230
AVO: 1411 l\wp\98-8de2.doc SHT. 2 OF 2
Evaluation Associates
29
-- ANALYSIS AND VALUATION OF PROPOSED ACQUISITION AREA
-- The Proposed Acquisition
According to the attached surveyed legal description, the proposed acquisition area consists of two
_ permanent Drainage Easements and a slope easement. The Slope Easement is situated along the
northwestern property boundary of the subject tract, adjacent to the Beltline Road frontage. The two
drainage easements (8 DE-1 & 8 DE-2) are also situated along the northern portion of the subject.
8 DE-1 is positioned near the center of the property and 8 DE-2 is located at the southwest corner
of Beltline Rd and North Lake Road.
Slope Easement
According to the attached surveyed legal description, the proposed acquisition area consists of 741
square fee~ for the widening of Beltline Road. The location, dimensions and shape of the proposed
acquisition area is shown on the Acquisition Map exhibit page. The proposed easement acquisition
-- area is an irregular shaped strip of land along the northern property boundary. Property rights being
appraised in this acquisition area, although not fee simple, effectively render the area near useless for
_ development as parking or building area, due to the resulting slope. In as much as the proposed
acquisition area is along the frontage of the subject property, the easement area may still be used in
the required set back and landscape requirement of any possible future development. Because some
-- rights of ownership are retained, the value of the proposed easement is less than one hundred percent.
Thus, it is estimated that the rights to be acquired represent 50% of the fee simple.
Drainage Easement
As noted there are two drainage easements which are proposed to be acquired for the road project,
8 DE- 1 and 8 DE-2. According to the attached surveyor's field notes, the proposed acquisition area
for 8 DE-1 consists of 1,200 square feet, and 8 DE-2 contains 2,886 square feet. Both proposed
- easements are for a drainage easements related to the interception of existing drainage from the
subject property as the drainage meets the south side of Beltline Road. The location, dimensions and
_ shape of the proposed acquisition areas are shown on the Acquisition Map exhibit pages. Property
rights being appraised in this acquisition area, although not fee simple, effectively render the area near
useless for development as parking or building area, due to the nature of the proposed drainage
- structure construction. There will be minimal to nil land rights and development potential remaining
to the benefit of the owner. Thus, it is estimated that the rights to be acquired represent 90°/6 of the
- fee simple.
Slope Easement - 741 Square Feet x $1125 x 50% = $ 463
-- Drainage Easements - 8 DE-1 - 1,200 Square Feet x $1.25 x 90% = $1,350
8 DE-2 - 2,886 Square Feet x $1.25 x 90% = $3,247
- Total Easement Acquisition ........... $5,060
30
Anal. vsis and Valuation of Proposed Acquisition Area
Value of the Remainder Before the Acquisition
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 Area. Therefore, the value
of the Remainder Before the Acquisition can be calculated as follows:
Whole Property Value $570,000
Less: Value of Proposed Acquisition Areas $ 5,060
Value of the Remainder Before the Acquisition $564,940
-- Value of the Remainder After the Acquisition
As noted, the proposed easement acquisition areas will be used for a slope easement and drainage
_ easements to widen Beltline Road along the northern boundary of the subject tract. ARer the
proposed acquisition and construction of widened and improved Beltline Road, the remaining tract
will have a similar highest and best use as before the acquisition. Also, the subject ingress/egress will
- remain the same. Analysis indicates the net affect of the easements will cause no reduction in the
value of the Remainder ARer the Acquisition beyond the proportionate value of the whole property.
- The reconstruction of Beltline Road will be an asset of specific benefit to the remainder property.
The Remainder ARer the Proposed Acquisition will retain similar use and marketability before and
at, er the proposed acquisitions. Since there is no negative effect on the use, enjoyment, value or
marketability of the Remainder After the Acquisition, the value of the Remainder al[er the proposed
Acquisition of the Permanent Easement is not less than the Remainder Before the Acquisition.
RECAPITULATION
A recapitulation of the pertinent values of the whole property, the proposed acquisition area, the
remainder before and at, er the acquisition are depicted below:
Value of the Whole Property (Land Only) $570,000
_ Value of Proposed Acquisition Areas $ 5,060
Value of the Remainder Before the Acquisition (Land Only) $564,940
Value of the Remainder ARer the Acquisition (Land Only) $564,940
Improvements within the acquisition area $ -0-
Damages $ -0-
- Total Compensation $ 5,060
31
-- AFFIDAVIT AND CERTIFICATE OF VALUE
The undersigned does hereby certify that, except as otherwise noted in this appraisal report that:
1. We, the undersigned, have personally inspected the subject property.
2. We have no present or contemplated future interest in the real estate that is the subject of our
evaluation.
3. We have no personal interest or bias with respect to the subject matter of our evaluation or
_ the parties involved.
4. 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.
5. The appraiser's 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.
- 6. 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.
7. 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.
8. James W. Cullar, Jr. prepared the analyses, conclusions and opinions concerning real estate
that are set forth in this appraisal report. James V. Getto provided significant contribution to
the development of the value conclusions and report preparation.
9. 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 5 U.S.C. 552 (b) (4). Please notify Evaluation Associates of any request of
reproduction of this appraisal.
_ 32
-- Affidavit and Certificate of Value
10. 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.
_ 11. 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. is currently certified under this respective programs and
both are currently certified under the Texas Appraisers Licensing and Certification program.
12. The market derived value of the proposed acquisition area as of February 2, 2000 is estimated
to be:
FIVE THOUSAND SIXTY DOLLARS
-
33
_ EVALUATION ASSOCIATES
RIGHT OF WAY LAND RIGHTS ACQUISITION APPRAISAL SOLUTIONS
James W. Cullar, Jr., SRPA, SRA, SR/WA
Qualifications and Professional Biography
EDUCATION
-- 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, Collin, 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
Former Officer and Director - North Texas Chapter (Dallas Area)
Past President - North Texas Chapter 1995
_ National Government Relations Committee - Texas and New Mexico - 1995-1998
Member National Board of Directors - 1997 - 1999
Region VIII - Chair - Texas and New Mexico - 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 (1995-1998)
State Certified General Texas Real Estate Appraiser - TX - 1321322 G
_ 34
_ EVALUATION ASSOCIATES
RIGHT OF WAY LAND RIGHTS ACQUISITION APPRAISAL SOLUTIONS
JAMES V. GETTO, MAI, SRA
Qualifications and Professional Biography
EDUCATION
Graduate of Louisiana Tech University, B. A. 1971
_ All courses, demonstration appraisal reports, professional experience, and quality reviews
required for the three professional designations awarded from 1969 to current time.
-- PROFESSIONAL DESIGNATION
The Appraisal Institute
MAI - Member Number 9612
-- Member North Texas Chapter
State Certified General Texas Real Estate Appraiser, #TX-1324596-G
-- ACCREDITED APPRAISAL COURSES
Appraisal Courses Attended and Completed
Society of Real Estate Appraisers:
-- Course 101: An Introduction to Appraising Real Property
Course 102: Applied Residential Appraising
SREA Narrative Report Seminar
_ Course 201: Principles of Income Property Appraising
Course 202: Applied Income Property Valuation
SREA Narrative Report Seminar
Course 201: Principles of Income Property Appraising
Course 202: Applied Income Property Valuation
SPP: Standards of Professional Practice
- Appraisal Courses with No Exam
Society of Real Estate Appraisers:
Introduction to Cash Flow and Risk Analysis (310)
-- Marketability and Market Analysis (311)
Real Estate Investment Analysis (312)
-- PROFESSIONAL EXPERIENCE
Extensive appraisal experience of various types of commercial and residential properties
which include retail, multi-family, office, industrial, rural and urban land, special purpose
_ properties, ad valorem tax assessment, right of way land rights acquisition matters, and related
consultation issues.
_ Property tax analyst and consultant representing a variety of clients and property types
throughout the Metroplex.
Appraisal work product has been accepted and utilized for mortgage lending, estate tax
- planning and settlement, corporate management decisions, and partial taking just
compensation analysis by eminent domain land fights acquiring agencies.
35
ADDENDUM
36
ASSUMPTIONS, LIMITING CONDITIONS & DISCLOSURES
-- For the purpose of this appraisal, the following assumptions and limiting conditions are made a part
thereof:
_ 1. That title to the individual property will be good and marketable and that title is in fee simple
under single ownership unless otherwise stated.
2. 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 free and clear under responsible ownership and management unless
-- otherwise stated.
3. The valuation is reported in dollars of currency prevailing on the date of the appraisal.
4. 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.
5. All information and comments pertaining to this and other properties represent the combination
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 ora
faulty analysis to the Appraisal Institute, the International Right of Way Association, and/or the
- Texas Appraisal Licensing and Certification Board.
6. 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.
- 7. Given adequate preparation notice, the appraiser is prepared to provide expert witness testimony
and to appear in court by reason of this appraisal, under separate contract, at the request of the
original client.
8. The distribution of the total valuation in this report between land and improvements applies 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.
9. 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.
ASSUMPTIONS~ LIMITING CONDITIONS & DISCLOSURES VALUE
10. 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.
11. 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.
12. 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
apprmser, 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.
_ 13. The American and Disabilities Act (ADA) became effective January 26, 1992. If the property
subject to this appraisal is improved, 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.
DEFINITION OF TERMS
1. 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 ora sale as ora specified date and the passing of title from seller
or buyer under conditions whereby:
a. buyer and seller are typically motivated;
b. both parties are well informed or well advised, and each acting in what they consider
their best interest;
~ c. a reasonable time is allowed for exposure in the open market;
d. payment is made in cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
-- e. 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.
--- 2. 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.
3. Highest and Best Use: The most profitable likely use to which a property can be put. That use
of land 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.
4. Abbreviations commonly used in the appraisal of real estate:
-- SF = square feet RR = railroad
/AC = per acre ROW = right of way
-- 5. Vehicular traffic artery abbreviations:
St. = Street SH = State Highway
_ Ln = Lane N = North
Dr = Drive S = South
Rd = Road E = East
_ PI = Place W = West
Pkwy = Parkway FM = Farm to Market Rd
Ave = Avenue US = United States Highway
Blvd = Boulevard I = Interstate Highway
- Cir = Circle Frwy = Freeway
Ct = Court Expwy = Expressway
Mt. = Mount Hwy = Highway