ST9304-SY 991210 ... ~o-qE, i~.$E ~ 12. DE"
__ EVALUATION ASSOCIATES ,,
Pa6HT OF WAY LAND m6HTS ^cQmsrnoN APPRAISAL SOLUTIONS "' ~ I~E ~ ~ [51~1~ 2. 4 g 5E"
-- SUMMARY OF SALIENT FACTS AND CONCLUSION~ ~
PARCEL 12-SE & 12-DE
Property Owner: Crow-Billingsley MacArthur, Ltd.
Valuation Conclusion:
Whole Property (Land Only) $480,000
,_ Proposed Slope Easement 2.~¢/4~ $ 1,714 1.5--r7~c./6'3 ~4a>
Proposed Drainage Easement z,-~ ~ {-/4~ $ 1,352 i z'~ ,, ,-/q~o~.2 ~
Remainder Before Acquisition $476,934
.- Remainder After Acquisition $476,934
Loss in Value of Remainder After $ -0-
-. Determination of
Compensation:
Proposed Acquisition Areas $ 3,066
-' Compensation for Improvements (Fencing) $ 4,570
Loss in Value of Remainder Atter $ -0-
Temporary Construction Easement $ -0-
Total Compensation $ 7,636
Date of Appraisal: December 1, 1999
Location: Adjacent to the southwest quadrant of Beltline Road and
MacArthur Boulevard, Coppell, Texas
.... Legal Description: Being part of Abstract Nos. 315, city of Coppell, Dallas
County, Texas
_ Land Size: Whole Property 39.924 Acres*
Right of way Area Permanent Slope Easement
and Permanent Drainage
-- Easement
Zoning: FP, Mixed Use
Highest and Best Use:
As if Vacant BEFORE: Hold for possible future development, if reclaimed bom flood
-- plain
As if Vacant AFTER: Hold for possible future development, if reclaimed from flood
plain
* Whole property size obtained from Dallas Central Appraisal District Tax Maps & Records
11615 Forest Central Drive · Suite #205 · Dallas, Texas 75243 · (214) 553-1414
_ EVALUATION ASSOCIATES
RIGHT OF WAY LAND RIGHTS ACQUISITION APPRAISAL SOLUTIONS
December 10, 1999
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 12-se & 12-DE
Property Owner: Crow-Billingsley MacArthur, Ltd.
,. An appraisal of a proposed 1.577 acre Permanent Slope Easement and a 1.127 acre
Permanent Drainage Easement out of an approximate 39.924 acre tract of land situated
adjacent to the southwest quadrant of Beltline Road and MacArthur Boulevard. The parent
--- tract is legally described as being part of the John C. Cook Survey, Abstract No. 315, City
of Coppell, Dallas County, Texas
Dear Mr. Cullar:
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 December 1, 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
_ 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 limited 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 def'med in the addendum section of this report.
The subject property was inspected from various points of reference on several dates in October,
-- November and December 1999 with the date of appraisal being December 1, 1999. The boundaries
of the proposed easement areas have not been marked. The proposed acquisition area is shown in
the photographs contained in this report.
11615 Forest Central Drive · Suite 205 · Dallas, Texas 75243 · (214) 553-1414
Mr Ken Griffin, P.E.
December 10, 1999
Based on a review of engineering and profile plans provided by City of Coppell, and an inspection
of the subject whole property, after 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 section of the property, its frontage along Beltline Road, with the
entire proposed acquisition areas situated within the flood plain of Grapevine Creek. 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 Belt
Line 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, 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 Belt Line Road. The tract is irregular in shape, and follows the
meander of Grapevine Creek which forms the southern and westem boundaries of the property. It
-- is important to note that the subject property includes additional acreage to the south across
Grapevine Creek (which is in the city of Irving), and to the west. However for the purposes of this
appraisal, the subject property is defined as 39.924 acres, which is the area identified on DCAD
maps as the area affected by the proposed acquisition. Also, the subject tract is bisected by a utility
right-of-way (see plat map), but it is likely that any development of the subject would occur in
concurrence with the utility tract as the right-of-way is for electric transmissions lines.
Topographical features include terrain which is below the grade of Beltline Road and adjacent
improved properties to the east and south, and slopes downward from north to south. The entire
-- subject tract is identified by current FEMA Maps as being within the flood plain of Grapevine Creek
- Panel Number 480170 0010 E, dated April 15, 1994. The flood plain elevation for this area is 451
Mr Ken Griffin, P.E.
December 10, 1999
feet along the western portion of the tract and 446 feet at the southeast corner of the tract. The flood
plain area can only be reclaimed under managed conditions after hydrological study, application to
the Corps of Engineers, and approval by both the Corps and the City of Coppell. Also, according
to Mike Martin, assistant engineer with the City of Coppell, improved properties must have finished
floor elevation of 2-feet above the current flood elevation.
,. It appears costly for an individual owner/developer to undertake the necessary reclamation efforts
as there is a considerable area and depth to fill. Given the available land in the surrounding area, and
the flood plain problems associated with the subject property, a prolonged holding period can be
_ anticipated.
In summary, the entire 39.924 acre subject tract is situated within the flood plain of Grapevine Creek.
-- The utility of the property is limited. Further study and consultation with a hydrology engineer is
required to quantify the economic barriers to development within this flood impacted area. Given
the area covered, it is assumed to be considerable.
Zoning
-- Based on our review of the City of Coppell Zoning Map, the subject whole property is zoned MU,
Mixed Use, and is also noted as being situated in the flood plain. The City requires and maintains
certain building and site requirements in this district, a copy of which has been retained in the file.
-- Property adjacent on the west of the subject tract is currently vacant and situated within the defined
flood plain and flood way. Properties immediately to the east, which are several feet higher in
elevation than the subject, have been improved with a neighborhood retail center, fast food
restaurants and automotive service facility. Properties to the west are vacant and properties to the
north across Beltline Road, are currently being developed with single family residences. Given the
_ proximity of the flood plain, it is unlikely that the subject could comply with any or all of the current
zoning district ordinances.
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 39.924 acres. The tract has an
irregular shape, frontage along the south side of Beltline Road, and good visibility/exposure. Utility
services are available to the improved properties adjacent to the east. The topography of the tract
Mr Ken Griffin, P.E.
December 10, 1999
-- severely limits the development potential. As noted the entire tract is located within the flood plain
or flood way. Quantification of reclamation alternatives were not provided to the appraiser;
however, topography maps of the area indicate substantial fill would be required to reclaim this area,
,. including grading, and drainage culverts which both add to development costs and reduces the
developable area. The physical influences indicate the encumbrance of flood plain severely limits
the utility of the tract.
The legal limits in this case are determined by the zoning ordinance. The subject tract is zoned for
mixed use. As previously discussed, the adjacent properties include a neighborhood retail center,
,- fast food restaurants, residential development and vacant land. The combined legal and physical
factors negatively impact the functional utility of the subject tract. Without significant reclamation
efforts, there is no use which could be supported in this area. No offsetting area for flood plain
-- mitigation was noted on the subject property in the as is topographical condition.
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 limited utility due to the
impact of Grapevine Creek flood plain. Without significant reclamation efforts, which were not
quantified for this report, the development potential is limited.
Highest and Best Use Conclusion
-- The highest and best use of the whole subject property is to hold for future development, if it can be
reclaimed from the flood plain.
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 located within the flood plain. 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.
-- 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 slope easement and drainage 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 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
Mr Ken G-riff'm, P.E.
December 10, 1999
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 December 1, 1999, is estimated to be:
SEVEN THOUSAND SIX HUNDRED THIRTY SIX DOLLARS
($7,636)
,.. 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
- Jr.,s w^
PtlO l'(.t(,'R_-I PtI.S' OF ,~'! 'B,IE( 'I' PROPER TI'
PLAT MAP
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-8-
FLOOD PLAIN MAP
AD (J
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-- RAILWAY
-- Evaluation Associates
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 APPROACFI 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.
? -10-
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 pumhase 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 situated
._ entirely within the floodplain
LAND SALE SUMMARY
_ Land Sale No. 1 Mapsco # D-1B-R
Location: N/s SH-190 (projected), 229 i~ west ofIH-35E, Carrollton
Grantor: J D Etier
-- Grantee: Hunter Ferrell Associates
Legal Description: Riverside Community Phase I Section B
Date of Sale: January 1, 1997 Volume/Page: 97013/3433
-- Site Data:
Size: 22.561 Acres
Zoning: Industrial
-- Utilities: Available in the area
Frontage: SH- 190 (projected)
-- Shape: Irregular
Topography: Generally level; most of the property is in the flood plain
Easements: None detrimental noted
_ Improvements: None of value
Intended Use: Investment
Consideration: $420,000 or $18,616 per acre
-- Financing: Cash to seller
Comments: The tract is located in the flood plain of the Elm Fork Trinity River
-- and Fumeaux Creek.
LAND SALE SUMMARY
Land Sale No. 2 Mapsco # T-~7-V
Location: N/s IH-30, approximately 380 feet west of Green Oaks Blvd,
Arlington
Grantor: Independent American Real Estate, Inc.
Grantee: Eastehase Company, Limited
Legal Description: Part of Abstract No. 1446, Tract 2G, Tarrant County
Date of Sale: June 12, 1997 Volume/Page: 12798/464
Site Data:
Size: 41.44 Acres
Zoning: Commercial and agricultural
Utilities: Available in the area
Frontage: 1,023 ft on IH-30 (no service road at this point)
Shape: Mostly rectangular
Topography: Slopes toward east and north
Easements: None detrimental noted
Improvements: None
Intended Use: Property is located in northwest Arlington, just north of 11-I-
30, approximately two miles east of Loop 820. The tract is
bisected by Village Creek and is just south of West Fork
Trinity River. The property was purchased for development
with an 18-hole golf course. Access to the property is by way
of adjacent property which was acquired by the grantee in a
separate transaction.
Consideration: $310,000 or $7,481 per acre
Financing: Cash to seller
Comments: Approximately 20% of the property is in the flood plain and 80% in
the flood way.
LAND SALE SUMMARY
Land Sale No. 3 Mapsco # D-11B-G
Location: SWC & SEC Beltline Road and Ledbetter Road, Coppell
Grantor: KKR Investments, Inc
_ Grantee: Rostam Development, Ltd
Legal Description: Part of Abstracts 319, 431,899 and 1493, Dallas County
Date of Sale: October 23, 1997 Volume/Page: 97207/4426
- Site Data:
Size: 254.443 Acres
Zoning: Industrial and agricultural
-- Utilities: Available in the area
Frontage: Beltline Rd, Ledbetter Rd
Shape: Irregular
-- Topography: Generally level, most of the property is in the flood plain
Easements: None detrimental noted
Improvements: None
Intended Use: Future mixed use development
Consideration: $2,035,544 or $8,000 per acre
Financing: Cash to seller
Comments: This property is located along the south side of Beltline Rd, between
Elm Fork Trinity River and Grapevine Creek.
LAND VALUATION SUMMARY
Club
Lake Dallas
Hickory Creek Parke .Oak'.snd Park
Highland Village.
-' Bartonville
LewiSville
-- Southlake
SALE NO. 2
.. Lakeland He
Evaluation Associates
LAND VALUATION SUMMARY
LAND VALUATION SUMMARY
The subject property is located in the southeastern portion of Coppell. The following table presents
the previously described flood plain sales, 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
S~eNo~ : Date I S~e {Ac) Zonin~ SP/Aere
1 1/97 22.561 Industrial $18,616
2 6/97 41.44 Commercial $ 7,481
3 10/97 254.443 Industrial $ 8,000
SUBJECT 11/99 39.924' Mixed_Use ....
· size obtained froth DCAD tax records
The above table capsulizes the data presented on the preceding pages. The chart that follows after
this section, uses the sales price per acre as a unit of comparison. The sales are analyzed and
compared with the subject 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 flood free portion of 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 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 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, market conditions, location, and physical characteristics were
factors considered to determine which influences price in the subject market area.
LAND VALUATION SUMMARY
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 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 commercial and
high density residential developments. No adjustment for this factor is applied.
-- Market Conditions
The sales occurred.over an approximate 35-month period prior to the valuation date (November
.., 1999). A comparison of the three sales did not provide substantive evidence on which to base a
time/market conditions adjustment. Thus, no adjustment for market conditions was applied to the
sale properties.
Location
-- As noted, the subject tract is positioned along the south side of Beltline Road, just west of MacArthur
Boulevard. The Beltline Rd/MacArthur Blvd intersection has developed with neighborhood retail
centers, fast food restaurants, and other service oriented uses. In addition, a good quality residential
subdivision is currently going in across fi.om the subject on the north side of Beltline Road.
-- Sale No. 1 is located just west oflH-35E, along the north side of proposed SH-190 which is the new
outer loop around Dallas County. The surrounding vicinity consists of scattered developments and
_ is rated similar when compared to the subject locale. Thus, no adjustment for location is applied to
Sale No. 1.
Sale No. 2 is positioned along the north side of IH-30, west of Green Oaks Boulevard. This property
LAND VALUATION SUMMARY
was purchased for development-of an 18 hole golf course, which as of the date of appraisal, is in
-- operation. During the past several years the area around this sale property has steadily developed
with commercial and residential uses. Overall, this location is rated inferior to the subject tract due
quality of surrounding developments. An upward adjustment is made.
Sale No. 3 is situated approximately one mile east of the subject, along the south side of Beltline
-- Road. This area is influenced by similar locational characteristics as the subject tract. The location
0f Sale No. 3 is rated similar to the subject and no adjustment is applied.
Physical Features, Size
The terrain of the subject property is uneven and requires considerable fill prior to any commercial
use. As noted each of the three sale properties are also located within the flood plain. It is noted that
the purchasers of Sale No. 1 are known throughout the surrounding counties for their mining
-- operations of sand gravel. While the appraisers were not informed as to the extent of minerals on the
tract, a downward adjustment is applied for this factor. The physical characteristics of Sale Nos. 2
and 3 are rated similar to the subject.
The subject tract contains 39.924 acres. The three sales range in size from 22.561 acres to 254.443
-- acres. 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 rise. 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, smaller tracts which may have
-- limited utility and possibly an extended marketing time sometimes sell for less per square foot than
a larger tract. 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. Although the review of details of the three sales
properties did not reveal a paired sales analysis, the appraisers have applied an adjustment for size to
Sale Nos. 1 and 3. Sale No. 1 is one-half the size of the subject and a downward adjustment was.
made. Sale No. 3, which contains over 254 acres, is over six-times the size of the subject, and an
-- upward adjustment was appropriate. The following table summarizes the adjustment process.
LAND VALUATION SUMMARY
I
I
SP/AC $18,616 $7,481 $8,000
Rights Conveyed Fee simple Fee simple Fee simple
Financin~ Cash Cash Cash
Conditions of Sale Market Market Market
Market Conditions Similar Similar Similar
Adjusted Price $18,616 $7,481 $8,000
Location Similar Inferior Similar
Physical features, Superior, Similar Larger
Size mining +
potential
Net Adjustment -30% 25% 40%
Indicated Value $13,031 $9,351 $11,200
At~er adjustments were made to the sale properties, this approach produced a relatively reliable range
'" of indicators. Sale No. 3, being in proximity to the subject and having frontage along Beltline Road,
is rated most similar to the subject tract. In view of these indicators, the Market Value of the subject
.. land is estimated to be:
39.924 Acres x $12,000/AC = $479,088
Rounded to: $480,000
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. Three land sales which are situated entirely in the flood plain 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 December 1, 1999, is estimated to be:
FOUR HUNDRED EIGHTY THOUSAND DOLLARS
$480,000
PROPOSED ACQUISITION MAP - SLOPE EASEMENT
PROPOSED ACQUISITION MAP - SLOPE EASEMENT
imm
Evaluation AssociAtes
METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
BELTLINE ROAD
PRO~ECT 91-829.
PARCEL 12-SE
OCTOBER 28, 1998
SLOPE EASEMENT
BEING a 1.577 acre tract of land in the City of Coppell, part of the John C. Cook Survey,
'-- Abstract No. 315, Dallas County, Texas, and a part of the tract described by instrument as Cmw-
Billingsley, MacArthur, Ltd. as recorded by Volume 86029, Page 2261 and by plat Volume
85003, Page 4009 of 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" located at centerline station 100+65.78, offset 65.78
feet fight, as defined in Public .Works Project number 490-403.1 / 91-289-in the Project Records.
-- of Dallas County, Texas, said point being the northwest comer of said MaeArthur,' Ltd. tract and
the northeast comer of the tract described by insmmaent to Crow-Billingsley, Bell Line, Ltd.
filed in Volume 86068, Page 5186, on the existing south right-of-way line of Beltline Road
(variable width) at the point of curvature of a circular curve to the lef~ having a radius of 3819.72
,- ,. feet whose chord bears South 82 degrees 29 minutes 36 seconds East, a diStance of 502.04 feet;
THENCE Southeasterly along said south right-of-way line and said curve through a central angle
of 07 degrees 32 minutes 10 seconds, an arc length of 502.41 feet to a set 1/2 inch iron rod with
.- cap, for the point of tangency;
" THENCE South 86 degrees 15 minutes 41 seconds East, along said existing south right-of-wa'y
line, a distance of 1026.74 feet to a set -1/2 inch iron rod with cap for comer at the.northeast
comer of said Crow-Billingsley MacArthur Tract and the northwest comer ora tract described by
-- instrument to Belt Line, MacArthur Joint Venture in Volume 94124, Page 00918 in D.R.D.C.T.;
THENCE South 00 degrees 41 minutes 30 seconds East, departing said common north property
comer and along the common property line of said Cmw-Billingsley, MaeArthm', Ltd. and
-- Beltline MacArthur Joint Venture tracts a distance of 45.62 feet to set "Crows Foot" for comer;
THENCE North 86 degrees 05 minutes 42 seconds West, departing said common property, line a
distance of 28.98 feet to a set 1/2 inch iron rod with cap for comer;
THENCE North 00 degrees 30 minutes 25 seconds West, a distance of 9.19 feet to a set 1/2 inch
iron rod with cap for comer;
_ THENCE South 89 degrees 09 minutes 52 seconds West, a distance of 172.67 feet to a set 1/2 inch
iron rod with cap for comer;
THENCE North 86 degrees 15 minutes 41 seconds West, a distance of 838.08 feet to aset 1/2 inch
__ iron rod with cap for comer;
THENCE North 82 degrees 11 minutes 08 seconds West, a distance of 292.72 feet to a set 1/2 inch
iron rod with cap for comer;
THENCE North 71 degrees 39 minutes 11 seconds West, a distance of 124.87 feet to a set 1/2-inch
iron rod with cap at the point of curvature of a non-tangent circular curve to the right having a
radius of 3840.72 feet whose chord which bears North 79 degrees 22 minutes 09 seconds West, a
distance of 77.48 feet;
AVO: 1411 l\wp\98-12sel.doc SHT. 1 of 2
Evaluation Assoeia~es
METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
THENCE Northwesterly along said curve through a central angle of 01 degrees 09 minutes 21
seconds, an arc distance of 77.48 feet to a set 1/2 inch iron rod with cap for comer returning to
the said common property line between the said Crow=Billingsley, Belt Line, Ltd. and
MacArthur, Ltd. tracts;
THENCE North 00 degrees 35 minutes 32 seconds West along said common property line, a
distance of 21.46 feet, to the POINT OF BEGINNING and containing 68,715 square feet or 1.577
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°48'34.9" as computed by Corpscon version 4.11.
;
AVO: 1411 l\wp\98-12sel.doc SHT. 2 of 2
Evaluation A~soeiate~
I ! I I ! I I I I I I I I I ! I I I I
· -- I PARCEL t2-DE
~_ I SHEET 1 OF 2
--: :.. ":- (~ BELTLINE'-ROAD .: ~'~,~ ' - f " --~; - ] ']: -' ~
. . .-'. ~. ...... .L ..-.~ .... '~ ..... / '~ ~~,~: _..,~ ~:~ ~?:,~
. ~;, ~'. r - · i~o. ~o-4cz.: / ~-e29 ~ .
........ . ~.a~ ........ --~ =========================== ~
. ' w ~ ~" 2 .... -Yw. ....... 2-~--2~_-- ~ -: - ~ '7 '57~ ~ 7.~:-.- - ' ~_'_ _ _
~ (~T::'-'{--'::" '.-~-:'-;~":? .:..--': :t~.-': '- -.: ~ ' _ .' II ' ~
'.R.S. ~.~w~7,W .R.S/' "'~ "~ 5ELT_INE RC. ~, --~- ~ ',
N00'3C'24'~ ~ '.~ WEN~YS INTERNATIONAL INC. ~ ~ ~
~ ~ '.~ ;'O_. 94;2'. PG. 3E35 ' ~ . ~ ~
8ROSS ~:~: =3,C6:,5z2 53. FT. 3- 70.2B ~C. ~ ~ 5T L~NnlN' INc ~ ~
TAKE ARE~ : 4S "2 5C. FT. or 'j27 ~C. =: > - ~' ~ ~'
~ ,~ vO:. 9202L PC. 0536 ~
CITY OF COPPELL ~SEVE~: - < ~
VOL. 461~ ~S,323 '~ ~
- ~TY ~ MooARTHUR, LTD. ~
tm IPARCEL 12-~[ ~ ~ .- ~ ~
~ .,~ ~ ~ c~ ~,- ~m, ~.~ ,. ,~ ~.~.-~ -~ MATCH LINE SEE SHEET 2 OF 2 J .
-DE ON THE GROJND U~CER MY S'J=EFV S=C~ ON.'.(X, ~ D[=,nTv[.- c~ ~_,c .o~s ~
"RIOR TC THE DATE )~OTEC HEREON. AN2 T~Zl 'L COUN J HENRY ) mgm ~
E EETES ANDBOUNDS SHO~N HERECh APE Jim DRAINAGE EASEUENT ~
~A~C~T.
I ! I ! I I I I I I I I ! ! I I I I !
MATCH LINE SEE SHEET 1 OF 2 . PROJ. NO. 91-829
. PARCEL I2-DE
;~~ SHEET
...- .-.' · ~ ,,,, S. THOMPSON SURVEY
· 2,. ~ ~ ABSTRACT NO. 1493
T.P. & L. POWER POLE '~
EASEMENT :~ ~
VOL. 4GIh PG.323 ' '
8ELT-~NE MAC~nTHU~
JOHN C. COOK SURVEY '~ ZO.CG' c JOIN- VENTURE
ABSTRACT NO. 515 ~~.,- VOL. 94124. PG. 0C918
- - --' ' EASEMENT (PADS B THRU l)
~i ~[N~YS INTErNaTIONaL INC.
" ~ ',0L. 94~2', P3.35~5
ST LENG.NG
VSL. 92C2'. PG. 05C6
C~OW-~'LL'NGSLEY ~ .....
LE~ Mcc~THUR, L-O. ~ -'-
~ =P PCWE~ / UT~T' P~[ VOL. 86C25. =C. 2261 j -~- ................
~ ' ~L 9CX =L~T VOL. 8EOC3, PG. 4CC9 .. ..................
.......... ~'~ " CITY OF COPPELL ~
I HER~BY CERT;FY THAT THE ABOVE S,RV~Y WAS ~ COUNTY OF DALLAS, TEXAS
MADE ON TFE BRCUNO UNDER MY 5U=[RV 51ON CN
TR .L~CC _~' ~ . DRAINAGE EASEMENT
..... ................
~'~ - -- ~ 5230 ~.: ENGINE~:5 . ARCHITECTS . 5C:E';T S-S . PL~N'.E~S . S~vE'CPS
COL:N J. '-- .~.:..: .. 86:~ '.SRT~WEST PLAZA CRIvE. :~LL~5, TEXt5 7522~-4292 I DENTON TAP ROAD TO MocARTHUR n~ VC
REGIST~R~R~FESSI~L LAND SUPVE"~ PHONE: ~214) 346-G2CS. F:X: (2~4) 7~-SO95
m
METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
lama
BELTLINE ROAD
PROTECT 91-829
PARCEL 12-DE
OCTOBER 28, 1998
DRAINAGE EASEMENT
BEING a 1.127 acre tract of land in the City of Coppell, part of the John C. Cook Survey, Abstract No. 315
in Dallas County, Texas, and part of the tract described by instrument to Crow-Billingslcy, MacArthur, Ltd.
in Volume 86029, Page 2261 and by plat in Volume 85003, Page 4009, of the Deed Records Dallas County,
Texas (D.R.D.C.T), and being more particularly described as follows:
COMMENCING at a set 1/2-inch iron rod with a yellow plastic cap stamped "HALFF ASSOC., INC.',
hereinafter referred to as "with cap" at the northwest comer of a tract described by instrument to Belt-Line
MacArthur, Joint Venture filed in Volume 94124, Page 00918, in D.R.D.C.T., the northeast comer of said
Cmw-Billingsley, MacAithur, Ltd. tract and on the-south right-of-wayline.of. Beltline Road.(variable.width);.. ·
THENCE South degrees 39 minutes 47 seconds 47 West, over and across the said. Cmw-Billingsley,
MacArthur, Ltd. tract a distance of 44.45 feet to a set 1/2-inch iron rod with cap for comer located at the
centerline Station 115+59.82,offset 96.23 feet fight, as defined in Public Works Project number 490-403.1 /
91-289 in the Project Records of Dallas County, Texas, on the existing west line of a Texas Power & Light,
Co. (T.P.& L.) power pole easement (8.75 feet wide) as recorded in Volume 4611, Page 323 of the
D.R.D.C.T. for the POINT OF BEGINNING;
THENCE South 00 degrees 30 minutes 24 seconds East, along said existing west T.P.& L. easement line a
distance of 63.49 feet to a set 1/2 inch iron rod with cap for comer,
THE2qCE South 00 degrees 21 .minutes .51 seconds East, continuing along said- existing-west T.P.& L.
easement line a distance of 756.34 feet to a point for comer,
THENCE South 89 degrees 29 minutes 36 seconds West, departing said existing west T.P.& L. easement
line a distance of 55.00 feet to point for comer,
THENCE North 00 degrees 21 minutes 51 seconds West, a distance of 756.41 feet to a set 1/2 inch iron rod
with cap for comer,
THENCE North 00 degrees 30 minutes 24 seconds West, a distance of 41.20 feet to a set 1/2 inch iron rod with
cap for comer;
THENCE South 88 degrees 01 minutes 40 seconds West, a distance of 54.80 feet to a set 1/2 inch iron rod with
cap for comer;
THENCE North 85 degrees 09 minutes 37 seconds West, a distance of 162.12 feet, to a set 1/2 inch iron rod
with cap for comer;
THENCE North 03 degrees 44 minutes 19 seconds East, a distance of 14.81 feet to a set 1/2 inch iron rod with
cap for comer;
THENCE South 86 degrees 15 minutes 41 seconds East, a distance of 97.70 feet to a set 1/2 inch iron rod with
cap for comer;
AVO: 14111\wo\98-12del.doc SHT. ! OF 2
Eval~fio~ Assoeintes
METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
THENCE North 89 degrees 09 minutes 52 seconds East, a distance of 172.67 feet to the POINT OF
BEGINNING and containing 49,112 square feet or 1.127 acres of land more or leis.
Basis of bearing is Texas state plane north central zone 4202 (1983 adjustment) based on GPS
measurements fi:om triangulation station GPS4 (PID CS3408). Convergence angle at GPS4 is (+)
00°48'34.9'' as computed by Corpscon version 4.11.
Co' He#ry, R~giste~d vroxessional Land Surveyor
· -. Texas Re$t~tration l~ber 5230 ...........
o
AVO: 1411 l\xam\gs-12del.doc SHT. 2 OF 2
Evaluation Associates
ANALYSIS AND VALUATION OF PROPOSED ACQUISITION AREA
The Proposed Acquisition
According to the attached surveyor's field notes, the proposed acquisition area consists of two
easements areas, a Slope Easement and a Drainage Easement. The Slope Easement is situated across
-- the northern boundary of the subject tract, adjacent to the Beltline Road frontage. The Drainage
Easement is situated in the eastern portion of the subject tract and extends from just south of the
,. Slope Easement and along the eastern boundary of the tract.
Slope Easement
"' According to the attached surveyor's field notes, the proposed acquisition area consists of 68,715
square feet or 1.577 acres for the widening of Beltline Road. However, as previously noted Texas
-- Utilities Electric Company owns a portion of the area which is proposed to be acquired for the road
widening project. The area which is owned by Texas Utilities Electric Co. in the proposed acquisition
includes approximately 145 feet of frontage by a depth of 45 feet for a total of 6,525 square feet. The
6,525 square feet is subtracted from the 68,715 square feet for a total easement acquisition of 62,190
square feet or 1.428 acres. 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 are not fee simple, and thus some rights of ownership are retained. 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 of any possible future development. Thus, it is estimated that
the rights to be acquired represent 10% of the fee simple.
-- Drainage Easement
According to the attached surveyor's field notes, the proposed acquisition area consists of 49,112
-. square feet or 1.127 acres for a drainage easement ineonjunction with 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
"' northeast and eastern property boundary. Property rights being appraised in this acquisition area are
not fee simple, and thus some rights of ownership are retained. In as much as the proposed
-- acquisition area is along the eastern boundary of the subject property, the easement area may still be
used in the required side yard set back of any possible future development. Thus, it is estimated that
the rights to be acquired represent 10% of the fee simple.
Slope Easement
1.428 Acres x $12,000 x 10% = $1,714
Drainage Easement
1.127 Acres x $12,000 x 10% = $1,352
Total Easement Acquisition $ 3,066
-29-
ANAL YSIS AND VALUATION OF PROPOSED A CQ UISITION AREA
Fencing
The existing fencing which approximately parallels the north and eastern sides of the subject tract is
very old, but appears to be 100%. functional. There are various ways to account for compensation
for fencing. The method selected for this appraisal is based on the assumption that the remainder will
require fencing after the acquisition, and the cost of the new fencing will be funded through payment
for fencing in this category. This is more straight forward than' calculating the possibly depreciated
value of the older current fencing and including that amount in the value of the part to be acquired,
then adding back another amount as a loss in value of the remainder which would need to be added
together to purchase new fencing for the remainder tract. With this explanation, it should be
understandable and clear that the herein compensation for the fencing discussed in this section is
calculated based on the anticipated amount required to install new, similar fencing with similar utility.
Fencing in the proposed acquisition area, 1,828 LF x $2.50/LF = $ 4,570
· - 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 $480,000
Less: Value of Proposed Acquisition Areas $ 3.066
_ Value of the Remainder Before the Acquisition' $476,934
Value of the Remainder After the Acquisition
As noted, the proposed easement acquisiti6n areas will be used for a slOpe easement to widen Beltline
Road along the northern boundary of the subject, and construct a drainage easement along the eastern
boundary of the subject tract. After the proposed acquisition, 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 After the Acquisition beyond the proportionate value of the whole property. Also, since
the easement is positioned away from any proposed development, any impact on the existing use or
potential use is minimal to nil. Surface rights remain with the property owner and most any use of
the easement is permitted except construction of permanent buildings. The Remainder will retain
similar use and marketability before and after 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 after 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 after the acquisition are depicted below:
" Value of the Whole Property (Land Only) $480,000
Value of Proposed Acquisition Areas $ 3,066
Value of the Remainder Before the Acquisition (Land Only) $476,934
Value of the Remainder After the Acquisition (Land Only) $476,934
,_ Improvements within the acquisition area $ 4,570
Damages $ -0-
Total Compensation $7,636
-- 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 fi.om Evaluation Associates and may consist of trade secrets and
-- commercial or financial information that is privileged, confidential, and exempt fi.om
disclosure under 5 U.S.C. 552 (b) (4). Please notify Evaluation Associates of any request of
_ reproduction of this appraisal.
-- AFFIDA~T 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. CuHar, Jr. is currently certified under this respective programs, and
lames V. Getto is not currently certified under the program.
12. The market derived value of the proposed acquisition area as of December 1, 1999 is
estimated to be:
SEVEN THOUSAND SIX HUNDRED THIRTY SIX DOLLARS
($7,636)
James W. Cullar, Jr., SRPA, SRA, SR/WA
Qualifications and Professional Biography
-- 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
fights acquisition faro, providing a variety of real property evaluation services for the financial
,.. market, public land fights 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, Jun 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)
Dallas Board of Realtors (Institute Affiliate)
Licensed Texas Real Estate Broker #142545 (inactive)
-- State Certified General Texas Real Estate Appraiser - TX - 1321322 G
Evaluation Associates -34-
-- JAMES V. GETTO, MAL 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.
mm*
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 rights acquiring agencies.
-- Evaluation Associates -35 -
ADDENDUM
-- Evaluation Associates -36-
-- ASSUMPTIONS, LIMITING CONDITIONS & DISCLOSURES
For the purpose of this appraisal, the following assumptions and limiting conditions are made a part
thereo~
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
encroaehmems. 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 of a
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 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.
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
-- Evaluation Associates
ASSUMPTIONS, LIMITING CONDITIONS & DISCLOSURES VALUE
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
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.
13. 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.
-- Evaluation Associates
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 of a sale as of a 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. Hig, hest 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
P1 = 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
-- Evaluation Associates