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CF-Andrew Park 2-CS 920602C0MMISSl0NERS YGNACtO D. GARZA Chairman, Brownsville JOHN WILSON KELSEY Vice-Chairman Houston LEE M BASS Ft. Wodh IIENRY C. BECK, III Dallas TERESE TARLTON HERSHEY Houston GEORGE C. 'r[IM" HIXON San Antonio Cl lUCK NASH San Mnrcos BEATRICE CARR PICKENS Dallas WALTER UMPHREY Beaumont PERRY R BASS Chairman-Emerilus FI. Wodh TEXAS PARKS AND WILDLIFE DEPARTMENT 4200 Smith School Road · Austin, Texas 78744 · 512-389-4800 June 2, 1992 Mr. Steven G. Goram Director of Public Works P. O. Box 478 Coppell, Texas 75019 ANDREW SANSOM '~ec~NeDkector Re: Coppell Community Park Project Numbers 20-00061 and 48-00944 Dear Mr. Goram: Thank you for your letter of May 28, 1992 requesting a 6f(3) determination regarding the Parkway Boulevard realignment into the reference fund assisted area. Unfortunately, the proposed realignment will result in a conversion of the 2,000 SF area to other than outdoor recreation use, and substitute mitigation per the enclosed instructiops will be required. The propose'd realignment does not qualify for an exemption since access to the park is already available. The 20'ingress/egress access way, however, may be used as a portion of the substitution mitigation required, if it meets the requirements outlined in the Conversion Guidelines. Please call me 512/38g-4947 if you have any questions. Sincerely, 0 I~ . B(~sak, CLP Project Section Head Grants-In-Aid Branch SAB: 1 b Enclosures cc: Bill Dahlstrom TEXAS PARKS AND W]LDLIFE DEPARTHENT ' GUZDELIN[S FOR CONVERS]ON OF FUND SUPPORTED PROPERTIES (Rev. 3-91) INTRODUCTION These guidelines are designed to assist you through a process of properly converting Section 6(f)(3) Land and Water Conservation Fund (LWCF) or Texas Local Parks, Recreation, and Open Space Fund (LPF) assisted properties to a n°nrecreation use. The General Provisions of the Project Agreement for which fund assistance is received states: "The Participant agrees that the property described in the project agreement and the dated project boundary map, made part of that agreement, is being acquired or developed with Fund assistance, and that it shall not be converted to other than public recreation use but shall be maintained in public perpetuity." It is acknowledged, however, that circumstances may arise which require the conversion of parkland. As a result, the National Park Service (NPS) has developed guidelines for converting LWCF assisted properties (Section 6(f)(3) of the LWCF Act). The State of Texas must follow these guidelines for LWCF and LPF assisted projects. Conversion is strongly discouraged, and there is no guarantee that a request for conversion will be approved. THE PROCESS Correctly converting LWCF and LPF assisted parkland is a lengthy and costly process. The NPS and the State of Texas will not provide financial assistance to the local sponsor initiating the conversion. Conversion generally occurs in the following situations: A. Property interests are conveyed for non-public outdoor recreation uses. Be Non-outdoor recreation uses (public or private) are made of the project area, or a portion of the project area. Non-eligible indoor recreation facilities are developed within the project area (library, city hall, fire station, etc.). D. Public outdoor recreation use of property acquired or developed with grant assistance is terminated. E. Exceptions: 1. Underground utility easements that do not have significant impacts upon the recreational utility of the park will not constitute, a conversion. Proposals to construct public facilities where it can be shown that there is a gain or increased benefit to public recreational opportunity will not constitute a conversion. Final review and approval of such cases shall be made on a case-by-case basis. The State will only consider conversion requests if the following prerequisites have been met and documentation of such has been submitted to the Department: A. All practical alternatives to the conversion have been evaluated and rejected on a sound basis. Be lhe fair market values of the property to be converted and the property proposed for substitution have been established by an appraisal prepared in accordance with "Appraisal Instructions" in the Procedural Guide. The property proposed for substitution must be of at least equal fair market value as the property to be converted. Property improvements will be excluded from value consideration for the properties to be substituted. Exceptions may be allowable when the substitute property contains improvements directly related to outdoor recreation. The property proposed for replacement is of reasonably equivalent usefulness and location as that being converted. Depending on the situation, the replacement property need not provide identical recreation experiences or be located at the same site, provided it is in a reasonably equivalent location. It must, however, be administered by the same political subdivision as the converted property. The property proposed for substitution meets the eligibility requirements for grant assisted acquisition. Replacement property must constitute or be part of a viable recreation aKea. Public land may not be used for substitution on acquisition projects un]ess it meets certain acquisition criteria. However, in the case of development projects for which the match was not derived from the cost of the purchase or value of a donation of the land to be converted, public land not currently dedicated to recreation/conservation use may be used as replacement land even if this land is transferred from one public agency to another without cost. Ee He All necessary coordination with other Federal agencies has been satisfactorily accomplished.~. Completion of an Environmental Assessment for the substitute site is required. The outline for the Environmental Assessment can be found in the Procedural Guide. Texas Review and Comments System (TRACS) review has been conducted if the proposed conversion and substitution constitute significant changes to the original grant project. Staff consideration reveals no reason for disapproval and the project files are so documented. Previously acquired and dedicated park property cannot be used to satisfy substitution requirements except in the case of development projects as noted above. DOCUMENTATION OF COMPLETED CONVERSION Copies of the following documents must be submitted after the Department has approved and authorized the conversion: A. Executed, recorded deed(s) B. Copies of cancelled checks C. Completed Statement of Just Compensation D. Title Policy (if available) F. Amended project site plans APPRA]SAL INSTRUCTIONS (Rev. 2/92) After grant approval, but prior to the acquisition of grant assisted property, one, or possibly two appraisals of the appropriate type by a qualified person should be secured at the participant's expense and approved by the Department. (Land and Water Conservation Fund projects require one appraisal, while Texas Local Parks, Recreation and Open Space Fund projects require two appraisals, per Federal and State program guidelines.) NOTE: Appraisals reports involving more than one parcel of land should combine appraisal information for all parcels into one report. Separate appraisal reports for individual land parcels can no longer be accepted by the Department due to the excessive cost to the State for appraisal review. This requirement will also result in a cost savings to the local sponsors. Standards for appraisals used will be consistent with the current Uniform Appraisal Standards for Federal Land Acquisition published by the Land Acquisition Conference. Except for written Finding of Value (C. below), the appraisal should be an analytical narrative report following current professional appraisal practices involving the application of standard techniques, such as comparative or market, cost less depreciation, and income approaches to value. Other portions of the report, such as introductory and supporting data, limiting conditions and certifications should also meet these standards. All appraisals should be independently prepared by qualified staff or fee appraisers. The formality and detail of required documentation will be determined, as described below, by the value of the real property involved in each instance. Depending on value, the Department will require formal appraisal reports, abbreviated appraisal reports, or written findings of value. The owner or his desiqnated representative shall be qiven an opportunity to accompany the appraiser durinq his/her inspection of the property. The appraisal report must indicate whether or not he accompanied the appraiser. A. FORMAL APPRAISAL REQUIREMENTS: If a parcel will cost $25,000 or more ($12,500 or more Fund assistance), or involves purchase from another public agency or the exchange of real property, the participant will need to apply these appraisal requirements. The report on any individual property may vary depending upon the type of property under appraisal. Additional data may be required in the case of highly specialized properties. Items may be deleted, as in the case of land valuation only. Generally, all items must be considered by the appraiser and included in the report, unless otherwise requested and agreed to by the Department and the omission explained by narrative. lhe Appraisal Report should cover: Qualifications. Statement of the qualifications of all appraisers and/or technicians contributing to the report. Statement of Limiting Conditions. The appraiser should state that he assumes the title to be marketable, that he assumes no responsibility for legal matters, and that all data furnished him by others are presumed correct. He should also mention any assumptions he has made. e Purpose of the Appraisal. This shall include a definition of all values required and appraised. Identification of Property. and that to be acquired. Legal description of the whole tract City and Area Data. This data (mostly social and economic) should be kept to a minimum and include only such information as directly affects the property being appraised. Property Data. Site: Describe soil, topography, mineral deposits, etc. If there is an indication that mineral deposits have more than a nominal commercial value, this fact shall be clearly stated. Easements: If land is to be acquired over which the sponsor has limited control or use, such as land encumbered by easements, proper adjustments must be made to the appraisal reports to reflect the limited control. If adjustments are not made in the appraisal for land encumbered by easements, the Department will adjust reimbursement for land, deducting a prorata share of market value for easement-encumbered land. Ce Improvements: This shall be by narrative description, including dimensions of principal buildings and/or improvement. A floor plan of each building is required. (See "Appraisals for Properties with Man-Made Improvements" Section.} Equipment: This shall be by narrative description including the condition. Condition: The current physical condition and relative use and obsolescence shall be stated for each item or group appraised and, whenever applicable, the repair or replacement requirements to bring the property to usable condition. Assessed Value and Annual Tax Load: Ihclude the current assessment and dollar amount of real estate taxes. If the property is not taxed, the appraiser shall estimate the assessment in case it is placed upon the tax roll, state the rate, and give the dollar amount of the tax estimate. Zoning: Describe the zoning for subject and comparable properties. If rezoning is imminent, discuss under item 7. Analysis of Highest and Best Use. The report shall state the highest and best market use that can be made of the property (land and improvements and where applicable, machinery and equipment) for which there is a current market. The valuation shall be based on this use. (See "Section F -.Appraisal for Properties with Man-Made Improvements") Land Value. The appraiser's opinion of the value of the land shall be based on its highest and best use, regardless of any existing structures and shall be supported by confirmed current factual data (sales and offerings) of comparable, or nearly comparable, lands having like optimum uses. Differences shall be weighed and explained to show how they indicate the ialue of the land being appraised. Value Estimate by Cost Approach. This section shall be in the form of computative data, arranged in sequence, beginning with reproduction or replacement cost, and shall state the source (book and page if a national service) of all figures used. The dollar amounts of physical deterioration and functional and economic obsolescence, or the omission of same, shall be explained in narrative form. This procedure may be omitted on improvements, both real and personal, for which only a salvage or scrap value is estimated. 10. Value Estimate by Income Approach. This will include adequate factual data to support each figure and factor used and shall be arranged in detailed form to show at least estimated gross rent or income and an itemized estimate of total expenses including reserves for replacements. Note: Unless there is sufficient information or extraordinary conditions to justify use of the Income Approach method, the Department will normally reimburse the sponsor for the current market value of the land determined by the comparative sales appraisal approach. 11. Value Estimate by Comparative (Market) Approach. All comparable sales used will be confirmed by the buyer, seller, broker, or other person having knowledge of the price, terms and conditions of sale. Each comparable sale will be weighed and explained in relation to the subject property to indicate the reasoning behind the appraiser's final value estimate from this approach. 12. Interpretation and Correlation of Estimates. The appraiser will interpret the foregoing estimates and will state his reasons why one or more of the conclusions reached in items {9), {10}, and (11) are indicative of the market value. 13. Tabulation of History of Conveyance (property sales and transfers}. Includes parties to the transactions, dates of purchase, and amounts of consideration for at least 5 years prior to appraisal. 14. Certification of Appraiser. a. Appraiser has personally inspected the property. Appraiser has no present or contemplated interest in the property. That in his opinion the market value of the taking as of (Valuation Date) is $ . 15. Exhibits and Addenda. a. Location Map:. Within the city or area. be Comparative Map Data: Show geographic location of the appraised property and the comparative parcels analyzed. c. Detail of the Comparative Data: {Narrative) de Plot .lan: Include a metes and bounu~ description. Floor Plans: Indicate dimensions of any building/structure that contributes to the fair market value. fe Photographs: Pictures will show at least the front elevation of the major improvements, plus any unusual features. When a large number of buildings are involved, including duplicates, one picture may be used for each type. Views of the best comparable should be included whenever possible. Except for the overall view, photographs may be bound as pages facing the discussion or description to which the photographs pertain. All graphic material shall include captions. ge Other Pertinent Exhibits: facing pages opposite discussions they concern. Any maps and plans may be bound as the description, tabulation, or B. ABBREVIATED APPRAISAL REPORT: An abbreviated appraisal report, compiled by a qualified appraiser and adequately related to comparable sales, is acceptable for a parcel with a value estimate between $1,000 and $25,000. The abbreviated report should include: A legal description of the real property to be acquired and a plot plan. The date for which the value estimate applies. Supporting data, including two or three comparable real property sales, a brief analysis of those sales, and a map showing their location relative to the land to be acquired. me An analysis and statement of the property's highest and best use. A statement of the appraiser's experience and qualifications. An appraiser's certification and signature. (See item 14 in Section A for certification requirements.) Five year history of conveyances (sales and transfers). Include parties to the transactions, dates of purchase, and amounts of consideration for at least 5 years prior to appraisal FINDING OF VALUE: Where a parcel has a value of less than $1,000 and the expense of an appraisal would be disproportionate to its benefit, a written finding of value by a qualified person will be ~cceptable. This finding of value can be based on the individual's knowledge of land values, but should include a statement of the appraiser's experience and qualifications, including a short description of the factors he considered and the means by which he reached his conclusion. These statements should be sufficiently detailed so as to enable the Department to judge their respective merits. EMINENT DOMAIN/CONDEMNATION: When lands are acquired through judicial proceedings, the price determined by the court will be accepted in lieu of the approved appraised value. The Department, ,owever, will not be obligated t~ match an amount higher than the approved support ceiling. ACQUISITION BY DONATION: A formal appraisal(s) is required for all projects involving the donation of real property or interest therein. The participant will, at its own expense, have appraisal(s) made in accord with commonly accepted appraisal practices. The cost of the appraisal is not reimbursable. Upon completion of the appraisal, it should be submitted to the Department for review. If the appraisal is found acceptable, the estimated fair market value will be the basis for grant fund assistance and the project can be approved. A finding of value will be acceptable when the land to be donated has a value less than $1,000 and the expenses of an appraisal would be disproportionate to its benefit. APPRAISALS FOR PROPERTIES WITH MAN-MADE IMPROVEMENTS: For acquisition projects which involve the acquisition of properties with man-made improvements, the following methodology must be followed by the appraiser for the valuation of such improvements: If the highest and best use of the property is determined to be for "outdoor recreation" ..... Fair market value must be justified utilizing comparable sales or similar, private sector outdoor recreation properties. be Improvements on the property which are for outdoor recreation (and therefore potentially eligible for program assistance) must be valued at their "current depreciated value." Improvements on the property which cannot be utilized for outdoor recreation must be assessed for salvage/scrap value. (Such improvements are not eligible for grant support.) If the highest and best use of the property is determined to be for "other than outdoor recreation" ..... ae Improvements which are for "outdoor recreation use" must be assessed for their salvage/scrap value. (The salvage/scrap value can be eligible for grant support.} be Improvements which are for "other than outdoor recreation use" must be valued at their depreciated value. These improvements are eligible for grant assistance only if they are to be demolished/removed from the site, or if the improvements are to be utilized for (or in support of) outdoor recreation activities. To be grant supported the improvements must either be handicapped accessible in their current state, or they must have the ability to be modified and made accessible, pursuant to State law requirements.