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ST9401-SY 990702 EVALUATION ASSOCIATES RIGHT OF WAY LAND RIGHTS ANALYSIS · APPRAISAL · ACQUISITION 'SOLUTIONS SUMMARY OF SALIENT FACTS AND CONCLUSIONS Denton Tap Road Hike and Bike Trail Project Property Owner: Centex Development Corporation Valuation Conclusion: Whole Property (Land Only) Proposed Acquisition Remainder Before Acquisition Remainder After Acquisition Loss in Value of Remainder After $ 5,000 $ 5,000 $ -0- $ -0- $ -0- Total Compensation $ 5,000 Date of Appraisal: July 2, 1999 Location: Legal Description: Land Size: Zoning: Highest and Best Us_e: As an independent tract: As if combined with an adjoining tract: E/s of Denton Tap Road, south of Natches Trace Drive, immediately north and adjacent to Denton Creek, Coppell, Texas Being described by the owner as Tract 3, in the Clarinda Squires Survey, Abstract No. 1327, in the City of Lewisville, Dallas County, Texas. However, the property is more accurately described as being in the City of Coppell. Whole Property Proposed acquisition area 0.489 Acres* 0.489 Acres Commercial District Plat with the adjacent 1.3 acre tract to the north to provide for development flexibility related to landscape requirements. Negotiate with Planning and Zoning to allow concentration of overall landscape requirements for the larger property. Whole property size was provided by Carter Burgess Engineers through the property owner, Centex Development Corporation. EVALUATION ASSOCIATES RIGHT Of WAY LAND RIGHTS ANALYSIS · APPRAISAL · ACQUISITION · SOLUTIONS July 2, 1999 Mr. Gary Sims Director of Leisure Services City of Coppell 732 DeForest Road Coppell, Texas 75019 Re: Denton Tap Road Hike and Bike Trail Project Property Owner: Centex Development Corporation An appraisal of a 0.489 acre tract of unimproved land on the east side of Denton Tap Road, south of Natches Trace Drive, immediately north and adjacent to Denton Creek, Coppell, Dallas County, Texas, and being more fully described in accompanying documents. Dear Mr. Sims: At your request, we have conducted the analysis and investigations necessary to derive the value of the referenced whole property (Land Only) based on the economic conditions which prevailed on the current valuation date of July 2, 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 conceming the intent of the City of Coppell to acquire the land rights for the construction of the herein referenced Hike and Bike Trail. 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 SW 2~id, 1936. Further, this report addresses appraisal guidelines oft he Intemational 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 of this report. 11615 Forest Central Drive · Suite 205 · Dallas, Texas 75242-3917 · (214) 553-1414 · Fax (214) 553-1615 2 Owner Contact The subject property was inspected from various points of reference on several dates from May thru July 1999 with the date of our last inspection being July 2, 1999, also the valuation date. The property owner was contacted and informed that Evaluation Associates had been engaged to evaluate the proposed acquisition area and to report pertinent property valuation information to the City of Coppell. The owner' s representative, Mr. Dan Anderson, discussed the land area, the project, and his perspective on the value of the property. He mentioned that the land had been offered to the recent purchasers of Tract 2 (a 1.399 acre tract) east of, and adjacent to the subject property. He discussed the possibility that the subject property could be used for parking related to the future development of Tract 1. During this interview, Mr. Anderson was encouraged to determine and defme the affected parent tract (the whole property from which the proposed acquisition area would be removed, under the assumption that it was part of Tract 1 to the north). He agreed to have Carter Burgess prepare a survey. The survey is contained in this report, and is called Tract 3. Neighborhood Description The subject property is situated in northem Coppell, just south of the boundary line of Dallas and Denton Counties. The immediate area is a mix of vacant land and new residential subdivisions. Natches Trace Trail extends east from Denton Tap Road bordering the subject property on the north and northeast boundaries. Denton Creek Elementary School and Coppell Middle School-North are on the north side of Natches Trace. The subject property is adjacent to Andy Brown Community Park on the south. The park is located within the flood plain and flood way. The southern 10% of the property is included in the same flood plain. Subject Site Description According to investigation of County Plat Maps, field review by Evaluation Associates, and information provided by Carter Burgess, the subject whole property fronts approximately 271 feet along the east side of Denton Tap Road immediately north of the bridge which crosses Denton Creek. The irregularly shaped tract contains less than one half acres. All public utilities are available near the subject property. The emphasis on the term near being that the nearest available sewer tap could be established several hundred feet northeast and could require a lift station. Topographical features include an inherently naturally sloping terrain from north to south. Based on a review of available maps, flood plain and flood way encumber a relatively small portion of the property along the south side. The topography The combined effects of small size, irregular shape, poor access, community development code requirements including set backs, landscape and fire safety lanes represent insurmountable physical and legal obstacles to economically feasible independent development. slopes down in a southerly direction. The subject property has a maximum depth from Denton Tap Road of approximately 110 feet. The depth is not uniform, and the ability to gain direct access from Denton Tap Road seems unfeasible. The subject property is evaluated 3 based the determination that the property has been defmed and described by the owner through a survey, which separated it from independent access from any public thoroughfare. It is too small to be efficiently developed. The combined effects of small size, irregular shape, poor access, community development code requirements including set backs, landscape and fire safety lanes, and the distance from the nearest sewer potential represents insurmountable physical and legal obstacles to economically feasible independent development. Zoning Based on our review of the City of Coppell Zoning Map, the subject whole property is zoned for commercial use. Zoning represents the maximum intensity of use. Zoning designations permit, and facilitate, the possibility of land usage. Zoning alone is not an indication of value because, alone, zoning does not support value; rather, it limits maximum development potential. Therefore, commercial zoning may seem to signal the potential value of real property, but only if all of the other elements of Highest and Best Use support commercial development. In this circumstance, commercial zoning is of no benefit to the subject property as it is currently configured and described by survey field notes. 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 f'mancially 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 physicallypossible, 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 less than one half acres. The tract has inadequate size, shape, ingress and egress for any use. Visibility and exposure to Denton Tap Road are adequate for many potential uses permitted under zoning. All utility services are available in the site, if easements and infrastructure are provided across adjacent property, which is under common ownership. The sloping topography of the tract appears to contribute to limited development potential. It was estimated that approximately 5 to 10% of the tract is located within the flood plain. Reclamation altematives were considered, but not quantified. Noting that the adjacent Tract 1, which is also owned by Centex, has not been platted, consideration was given to the possibility of the subject property offering a degree of contributory value to the larger 4 Tract 1. Use as parking for the larger tract was suggested by the owner, and was therefore considered. However, the distance from the approximate center of Tract 3 to the most likely entrance to a commercial building constructed on Tract 1 is greater than 350 feet. Therefore, the The potential use of the subject property as potential for contributory parking does not contributory parking to the adjacent site does not seem feasible. After detailed discussions seem feasible. regarding potential development with the City of Coppell Planning and Zoning Department, our analysis is that the only use that seems feasible for the subject property, if combined with the adjacent Tract 1, would be to help meet the landscape requirement for the larger adjacent property. Highest and Best Use Conclusion The highest and best use of the subject property is to be platted with the adjacent Tract 1 for the purposes of designation as part of the landscape area. Valuation Approach Sine the subject tract is vacant, the most realistic approach to value is through the direct comparison of land sales. The Highest and Best Use conclusion for the whole property is to be used for landscape area. A relatively small portion of the property is located within the flood plain. The value is limited to that of other The value is limited to that of other marginal to nil marginal to nil utility land, such as flood utility land, such as fiood plain, green space and/or plain, green space and/or other types of other types ofuneconomic remainders. uneconomic remainders. The value falls into the category of nil to a token value. Under the highest and best use circumstances, it can be valued no greater than that of flood plain and/or green space relative to the surroundings. Very few sales of this type property occur in urban markets. They often remain as leftovers to neighboring development, remote and overgrown. The limited data on which this valuation relies has been retained in files at the offices of Evaluation Associates. 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 ~mctional utility and value of the subject property, both as an independent tract and as if it could be platted with the adjacent property. Based upon our analyses and interpretation of the data, the Market Value of the proposed acquisition area as of July 2, 1999, is estimated to be based on $10,000 per acre. The subject property being less than one half acre, the value is calculated as: 5 FIVE THOUSAND DOLLARS ($5,000) This 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 appraisal process is considered complete, and the report format limited, under the Uniform Standards of Professional Appraisal Practice. 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. The undersigned assumes responsibility for any required testimony. If you have any questions, please call us. Respectfully submitted, EVALUATION ASSOCIATES Ja W. Cullar, Jr., SRPA, SRA 6 PLAT MAP IAIcJLF TEMPORAr~Y DRAINAGE "1 r""---E^SEMENT LINE BF..ARING OrSrANCE i t L1 N 05'43'33" E 25.27 I I L2 N 00'41'48' E 85,97 DEDiCAtiON : ~ / L3 N 89'20'28" W 50.00 VOL.g8252, PG.6839 DRAINAGE L4 ';: 89'20'28" E10.13 D.N.O.C.r. I-//-~ EASEMENT k./ VOL.98252, PG.6853 ~IEMP. CONST. ~/~ EASEMEN; 1 .TRAC ! TRACT 1,399 ACRES , ~ VOt. 99056, PG. ~62 ~ ~// D,R,D,C,T, LESM V0L 99056 PG ~410 // ~ ~S00'50'16"W ~ // 63.20 NOTE: THIS DO~MENY WAS PREPARED FROM PUBLIC RECORDS AND DOES NOT REFLECY THE RESULTS OF AN ON THE GROUND SURV~, AND IS NOT TO BE USED TO CONVEY OR ESTABLISH INTEREST IN REAL PROPER~. Evaluation Associates _ 7 METES AND BOUNDS DESCRIFFION TRACT 3 PROPERTY DESCRIPTION BEING A 0.489 ACRE TRACT OF LAND SITUATED IN THE CLARINDA SQUIRES SURVEY, ABSTRACT NO. 1327, IN THE CITY OF LEWISVILLE, DALLAS COUN'1'Y, TEXAS AND BEING A PORTION OF THE REMAINDER OF THAT CERTAIN TRACT OF LAND DESCRIBED IN DEED TO VISTA PARTNERS, RECORDED IN COUNTY CLERKS FILE NO. 93-R0066535 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS (D.R.DE.C.T.). SAID 0.489 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING AT A POINT FOR THE SOUTHWEST CORNER OF SAID VISTA PARTNERS TRACT, BEING IN THE EAST RIGHT-OF-WAY LINE OF DENTON TAP ROAD (VARIABLE WIDTH R.O.W.); THENCE N 00°39'32'' E, ALONG SAID EAST RIGHT-OF-WAY LINE, A DISTANCE OF 270.75 FEET TO A POINT FOR CORNER; THENCE S 89°20'28" E, DEPARTING SAID EAST RIGHT-OF-WAY LINE, OVER AND ACROSS SAID VISTA PARTNERS TRACT, A DISTANCE OF 50.00 FEET TO A POINT FOR CORNER IN THE WEST LINE OF THAT CERTAIN TRACT OF LAND DESCRIBED IN DEED TO JSS PROPERTIES, LTD., RECORDED IN VOLUME 99056, PAGE 3362 OF THE DEED RECORDS OF DALLAS COUNTY, TEXAS (D.R.D.C.T.); THENCE ALONG SAID WEST LINE THE FOLLOWING TWO (2) COURSES AND DISTANCES: S 00°39'32" W, A DISTANCE OF 51.43 FEET TO A POINT FOR CORNER; S 34°18'45" E, A DISTANCE OF 111.34 FEET TO A POINT FOR CORNER IN THE NORTH LINE OF THAT CERTAIN TRACT OF LAND DESCRIBED IN DEED TO DENTON COUNTY LEVEE DISTRICT NO. 1, RECORDED IN COUNTY CLERKS FILE NO. 95-R0055872 D.R.DE.C.T., BEING THE COMMON SOUTH LINE OF SAID VISTA PARTNERS TRACT; THENCE ALONG SAID COMMON LANE THE FOLLOWING THREE (3) COURSES AND DISTANCES: 'ALONG..A CURVE TO THE LEFT HAVING A RADIUS OF 225.76 FEET, A DELTA ANGLE OF 02056'38'', A LONG CHORD THAT BEARS 8 14031'30'' WA DISTANCE OF 11.60 FEET, AN ARC DISTANCE OF 11.60 FEET TO A POINT FOR CORNER; S 00°50'16'' W, A DISTANCE OF 63.20 FEET TO A POINT FOR CORNER; S 64°50'36" W, A DISTANCE OF 123.12 FEET TO THE POINT OF BEGINNING, AND CONTAINING 0.489 ACRES OF LAND, MORE OR LESS. THIS DOCUMENT WAS PREPARED FROM PUBLIC RECORDS AND DOES NOT REFLECT THE RESULTS OF AN ON THE GROUND SURVEY, AND IS NOT TO BE USED TO CONVEY OR F,c;TARI ISH INTEREST IN REAL PROPERTY.. 8 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 dam are typically given most consideration and the final value is then correlated. As noted, a portion'of the subject property is impacted by flood plain and the remaining area is available for development to the highest and best use. 9 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 fmancing 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, fxontage, 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. 10