ST9302-SY 980215Summary of Salient Facts and Conclusions
Sandy Lake Road Improvement Project
Parcel No. 13
_ Owner: Mrs. Erma Ihnfeldt
Value of Whole Property
$80,000
- Land $62,000
Improvements $18,000
1�
- Value of the Proposed Acquisition Area
$4,982
Value of the Remainder Before the Acquisition
$75,018
- Land $57,018
Improvements $18,000
Value of the Remainder After the Acquisition
$60,018
Land $57,018
Improvements $3,000
Remainder Loss in Value
Based on cost to cure to relocate the dwelling $15,000
TCE $675
Total Compensation $20,657
Legal Description: Part of S. Henderson Survey, Abstract No. 629, city of Coppell,
Dallas County, Texas.
-- Whole Property Size: .7591 acre per Dallas Central Appraisal District Records
Improvements: 1 SF single family dwelling with a 637 SF detached garage
Proposed Acquisition
ROW 0.061 Acres or 2,666 SF - see accompanying exhibit pages
TCE 360 SF - see accompanying exhibit pages
Zoning: PD -113, Planned Development District - SF -9, Single family 9
District
Current Use: Single family dwelling
Highest and
Best Use: Continue current use as a single family residence
Assessed Value: $57 Si
MPa
EVALUATION ASSOCIATES
REAL ESTATE ANALYSIS AND CONSULTATION
February 15, 1998
Mr. Ken Griffin, P.E.
City Engineer
City of Coppell
255 Parkway Boulevard
Coppell, Texas
Re: An appraisal of a proposed 0.061 Acre (2,666 SF) permanent right -of -way acquisition and
a proposed 360 SF temporary construction easement (TCE) out of a 0.7591 acre parent tract
known locally as 456 E. Sandy Lake Road and legally described as being part of S. Henderson
Survey, Abstract No. 629, city of Coppell, Dallas County, Texas.
- Dear Mr. Griffin:
At your request, we have conducted the necessary investigations and analysis to provide the City of
Coppell with an evaluation on the referenced property and the proposed partial acquisition related
to the proposed widening and improvement of Sandy Lake Road. The effective date of this
evaluation is February 4, 1998. We have made a thorough exterior and interior property inspection
as well as interviewed Mrs. Ihnfeldt. The following report includes maps and exhibits which describe
the property boundaries, probable use, estimated value range, and other acquisition issues for the
subject whole property/parent tract based on the description of the proposed ROW which is contained
- in this report. It is understood that the purpose of this consultation report is to provide the
Engineering Department with a suitable acquisition issues and financial discussion report.
The scope of this appraisal consultation assignment involved my personal inspection of the subject
property, research and investigation of the real estate market as it relates to the subject property, and
community development and zoning issues related to highest and best use analysis. The consultation
report which follows is classified as complete in approach and is reported in restricted format, in that
the report provides a summary of our findings and conclusions as well as exhibits and estimated value
conclusions.
This report was prepared by James W. Cullar, Jr., representing the firm of Evaluation Associates who
is solely responsible for the analysis, value estimate conclusion, and any required testimony.
Please do not hesitate to contact me if you have any questions.
Sincerely,
J es . Cullar, Jr. SRPA, SRA, SR/WA
II6I5 Forest Central Drive • Suite 205 • Dallas, Texas 75243 -39I7 • (2I4) 553 -I4I4 Fax (2I4) 553 -I6I5
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PHOTOGRAPHS OF SUBJECT PROPERTY
Aerial view of the subject property
Page -1-
Analysis and Valuation of the Subject Whole Property
Parent Tract/Whole Property Valuation Analysis:
This subject property is a rectangular shaped tract of land with 93.95 feet of frontage along the south
side of Sandy Lake Road and a similar amount of frontage along the north side of Cedar Crest. The
tract also fronts approximately 352 feet along the west side of Lodge Road. The terrain is generally
level at the south end of the tract with a gradual downward slope (from south to north). Property
drainage appears adequate and the site is not located within a 100 year flood plain. All public utilities
are available to the site.
Notable improvements consist of an approximate 1,573 square foot single story, single family
dwelling with 2 bedrooms, 1 bath, a den, a dining room, a kitchen and large family room, and a 2 -car
garage. The site is extremely large for a single family residence compared to newer lots which have
been developed in the surrounding area during the past fifteen years. Mrs. Ihnfedlt has owned the
property for a number of years. There are no known pending offers or listing agreements for the
property.
Physical characteristics of the land including size, shape, and orientation related to neighboring
developed properties significantly impacts the value of the subject property land. The tract adjacent
on the west and north was transitioned from a rural homesite to a modern, urban higher density
residential subdivision. Due to the configuration of Pecan Ridge Estates, the subject tract cannot be
assembled/blended with this development. If the subject tract were incorporated into the adjacent
development, it would be atypical and would be an oversized lot in comparison to the other lots in
this addition. An oversized lot in this development could not sell for twice the typical lot within this
development. All of the lots in this subdivision have been sold and developed, thus the developer has
no marketing staff available to promote the oversized lot. Secondly if the subject tract were
subdivided, the resulting lots would face Sandy Lake Road and Cedar Crest. The lot fronting Sandy
Lake would not be preferred by home buyers due to the orientation toward a busy thoroughfare. The
lot which could front Cedar Crest would be the most desirable of the two as it could be blended with
Page -1-
the homes/lots in the Pecan Ridge Estate addition. Extended marketing times without significant price
discounts could be anticipated on the lot fronting Sandy Lake. While there is adequate area for the
parent tract to be subdivided into three lots, the lot which would front Lodge Road would not have
adequate depth by industry standards. Secondly, this lot would not meet the minimum lot depth
requirement of 100 feet as established by the SF -9 regulations.
These collective features contribute to the subject property being characterized as unusual in size,
s hape, and location relationship with the surrounding urban environment. Communities of acreage
ome sites, the size and age of the subject property, generally cannot be found in Coppell. Over the
past 8 - 10 years, developers have assembled small acreage tracts, like the subject property, into
combined tracts with adequate plottage for the development of medium density (3.5 units to the acre)
residential subdivisions. Lots in these subdivisions typically measure 75 feet x 120 feet.
The subject property is surrounded on the west and north by newer single family residential
development. Not being encompassed by the adjacent development, the subject property now has
a plottage problem. Without further assemblage, it is hindered from most types of additional
independent development. The tract is most suitable for the continued use as an acreage homesite
which is considered to be the highest and best use. Conversations with Community Development
Department personnel indicate that it is very unlikely that a zoning change would be granted for any
type of commercial use on the subject tract. Neighborhood groups would oppose a zoning change
and the City Council has recently stated that commercial uses would be prohibited west of Heritage
Avenue. Development patterns together with the convergence of government policies and owner
attitudes/circumstances result in an unusual residential homesite.
The conclusion that the subject 0.7591 acres as a single family residential homesite is significant in
,J that the highest and best use conclusion forms the basis of all further valuation research and analysis.
If the highest and best use is to remain a single residential building site with no promise of more dense
urban development, i.e., more dwellings or commercial development potential, it is worth no more
that the typical competitive larger -type residential lots found throughout the Coppell area.
Page -2-
The appraisers researched, verified, photographed and inspected several older homes in the Coppell
area. These homes which are situated on smaller lots than the subject single family dwelling require
an assumption prior to the derivation of the market value of the subject property. As improved as
an older single family residence, the subject will compete with the typical older home which is situated
on a smaller lot and an additional value is added to the subject property for the excess land. The
appraisal of the whole property therefore requires two steps: Step 1 - the appraisal of the dwelling
as a more typical and smaller size lot and dwelling, and Step II, the appraisal of the remaining subject
square footage is valued as excess land.
Step I - Valuation of the Dwelling
The grid, photographs and map on the following pages display and recap five sales compared and
adjusted to indicate the Step I element of market value of the property.
Page -3-
emdpe. b4
FR
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`8Ed
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Improved Sales Map
Subject Property
Sale 1
Sale 2
Sale 3
Sale 4
Sale 5
1 inch = 0.54 miles
0 1700 3�00 5100
Sub in Feet
Coppw 1995 Ment.M, be.
GYP. CPPplys GYp.co, Inc. LCR 9501
Evaluation Associates
Adjustment Grid for Ihnfeldt Dwelling
Address
312 Kaye St.
456 Bethel Rd 501 Oak Grove
313 Kaye St
508 Oak Grove
Date of Sale
10/97
5/97
3/97
11/96
9/96
Sale Price
$72,500.00
$50,000.00
$37,000.00
$58,500.00
$77,500.00
SP/Living Area
$65.08
$62.50
$37.90
$25.43
$57.32
Location
($2,500)
($4,500)
$0
($2,500)
($2,500)
Site
$0
$0
$0
$0
$0
Design /Appeal
($5,000)
$0
$0
($5,000)
($5,000)
Quality of Construction
($5,000)
$0
$0
($5,000)
($5,000)
Age
($7,500)
$0
$0
($3,500)
($7,500)
Condition
($3,000)
$0
$3,000
$2,500
($5,000)
Room Count
07/03/01
06/02/01
05/02/01
07/04/02
7/2/1.5
Gross Living Area
1114
800
976
2300
1352
$1,800
$2,200
$2,000
($1,500)
$0
Other features
($2,500)
0
0
($2,500)
($2,500)
Net Adjustment
%
- 32.69%
-4.60%
13.51%
- 29.91%
- 35.48%
$
J$23
($2
$5
($17
$27 500
Indicated Value
$48,800
$47,700
$42,000
$41,000
$50,000
Evalaution Associates
i--
PHOTOGRAPHS OF DWELLING SALES
Page -6-
1
Sale No. I - -i I/- Yaye street
Sale No. 2 - 4-')b bettiel Koaci
j PHOTOGRAPHS OF DWELLING SALES
Page -7-
�Qln lxln A - �l I I i lu6 i :TIwP
Dale NO. 4 - S 1S & aye Jtreet
PHOTOGRAPHS OF ]DWELLING SALES
Page -8-
hate No. 5 - �u7s ua LYrove
Sale No. 1 was overall rated superior to the subject property. This sale property is of brick
construction, appears newer (less deprecation) and in far better condition. Although slightly smaller
in terms of square footage, the dwelling has more bedrooms than the subject. These factors are
considered offsetting.
— Sale No. 2, situated near the intersection of Coppell Road and Bethel Road, is similar to the subject
design and appeal, condition, age, and room count. This location is rated superior due to the
commercial potential which this sale has. A barber shop is adjacent on the west, the Coppell Senior
Citizens Center is immediately north, a service station is across Bethel Rd and several small
commercial and offices uses are scattered along Bethel Road.
Sale No. 3, positioned on a corner like the subject, has many similarities as the subject. It is in
proximity to newer, higher quality, more expensive homes. The dwelling is of similar construction
_ and room count as the subject property. Overall, the condition, at the time of sale, was inferior to
the subject dwelling resulting in an upward adjustment.
Sale No. 4, located across from Sale No. 1, is rated superior to the subject in terms of location,
design and appeal, condition and special features (HVAC). Also, it is much larger than the subject
dwelling, thus a downward adjustment was applied.
Sale No. 5 is across from Sale No.3. It is made of brick construction, contains similar amount of
living space and bedrooms. However, it has an additional 1 /z bath, which is a superior feature. It is
newer in age and appears in better condition. Overall, downward adjustments were applied due to
the superiority of this sale property when compared with the subject.
— Review of the previously mentioned grid reconciles these five indicators and produces a value for the
subject dwelling, assuming it is situated on a typical residential lot, of $40,000 for the Step I value
element.
Step H - Valuation of the Excess Land
Research was conducted of land We transactions in the Coppell area. These transactions are used
in the valuation of the excess land which is estimated to be approximately 21,000 SF. Most land sales
found in this market were larger and had more development potential, i.e. independently developable
or could easily be assembled with another tract for residential development. Lot sales were not
considered good indicators of value as these are a result of development; whereas the subject tract
is in the pre - development stage. The detailed sale information is presented below. The sales were
analyzed and compare to the subject tract, giving consideration to a number of factors including
market condition, rights conveyed, conditions of sale, location and physical characteristics of the sale
property.
Page -9-
Land Sale No. 1
Mapsco # IA -S
— Location:
N/s of Sandy Lake Road, approximately 150 feet W. of Summer Place
Drive, Coppell
_ Grantor:
Wayne Y. Musgrave, Jr.
Grantee:
James Woessner
Legal Description:
Part of A -629
Date of Sale:
January 13, 1997 Volume/Page: 97008/3787
Site Data:
Size:
2.128 acres
Zoning:
21 Residential District
_ Utilities:
All available
Frontage:
Along Sandy Lake Road
Shape:
Rectangular
— Topography:
Level
Easements:
None detrimental noted
Improvements: None
— Intended Use:
Residential homesite
Consideration:
$145,000 or $68,139/AC.
Financing:
All cash to seller
Comments:
Tract is adjacent to Summer Place Addition.
Page -10-
Land Sale No. 2
Mapsco # 1 -R
Location:
911 Coppell Road, Coppell
Grantor:
Jim Sowell Construction Company
Grantee:
Grand Land 96 LP
Legal Description:
Tract 4.3, A -624
Date of Sale:
June 14, 1996 Volume/Page: 96120/1039
Site Data:
Size:
16.208 Acres
Zoning:
2F9, Residential District
Utilities:
All available
Frontage:
Along Coppell Road
Shape:
Irregular
Topography:
Level
Easements:
None detrimental noted
Improvements: None
Intended Use:
Residential subdivision (59 lots)
Consideration:
$650,000 or $40,103 /AC.
Financing:
All cash to seller
Comments:
Homes prices in this development are expected to range from
$140,000 to $160,000.
Page -11-
Analysis and correlation of value
The preceding sales data provides an indication of value for the subject excess land. Sale No. 1 is in
proximity to the subject and is similar in shape. Both sites front Sandy Lake Road, although the
traffic volume appears lower in front of Sale No. 1. Overall, this tract is rated superior to the subject
due to the development potential of this sale property. It could be assembled with the adjoining
vacant acreage for use in the development of a residential subdivision or used as a homesite. The
subject property has limited utility as the surrounding tracts have been developed into residential
subdivisions and the subject is atypical. Overall, downward adjustments were applied to Sale No. 1
due to the superiority of the tract.
Sale No. 2, while considerably larger than the subject tract, does provide some indication of value.
This tract has been developed into a residential subdivision. Home prices are expected to range from
$1400,000 to $160,000. Wherein it has greater utility, this sale tract is rated superior to the subject
property. Much of the growth in Coppell has occurred in the eastern portion. Within the past few
years, tracts on the west side of Denton Tap Road have begun to be developed.
These two sales, adjusted primarily for physical features (utility), indicate that the subject excess land
contributes approximately $40,000 to the total property value.
Summary of Subject Whole Property Valuation
The subject property was valued using the Sales Comparison Approach. The subject dwelling is
- positioned on approximately 0.7591 acres which is considered to be an atypical lot size. Therefore,
the subject improvements were compared with other dwellings, situated on a typical lot, which have
sold. In Step I, these five sales produced an indication of value for the dwelling on a 12,000 SF lot
at $40,000. Step II valued the remaining land as a pre- development 21,000 SF building site at
$40,000. Land sales in the Coppell were analyzed and adjusted for a variety of influences, namely
utility. The result of this process indicated that the excess land contributes approximately $40,000.
Therefore, the total value of the subject whole property (land and improvements) is the sum of
$40,000 and $40,000, or $80,000. The land, which is the primary focus of this assignment,
contributes approximately $62,000 to the property total value.
Page -12-
r
. . . . . . . . . . . .
View of the subject property from Sandy Lake Rd.
PHOTOGRAPHS OF SUBJECT PROPERTY
Page -14-
. i
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PHOTOGRAPHS OF SUBJECT PROPERTY
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Page -15-
BUILDING SKETCH
24
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$EDR.aoM
DIIJING
27,25
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Evaluation Associates
Page -16-
PROPOSED ACQUISITION MAP
'
ERMA HAZEL IHNFELDT
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N 44 0 53'01'
34.38'
N 89007'01"E 72.5%/
1/r ,a 1/r a
S 00 3 "W
N 05 0 10'51 11 W PERMANENT RIGHT —OF —WAY
48.97'
25.05 0.061 ACRES /2666 SO
11 wv _ _ ,n. W
S 89 0 06'30 "W 93.95
I
PERMANENT
SANDY LAKE ROAD
SCALE 1 "= 40'
PARCEL No. 13
PERMANENT RIGHT —OF —WAY
Evaluation Associates
SURVEYED ON THE GROUND
APRIL 29, 1996 Qr
JAMES L. BRITTAIN
REGISTERED PROFESSIONAL
LAND SURVEYOR
STATE OF TEXAS No. 1674
Page -17-
Mz�z� r.riy �avvriv.� ���cx�r`rivzi v� �Ii 0YO5E� ACQ - 01st' O0N ARE1k
K=XBIT A
LEGAL DESCRIPTION
PERMANENT RIGHT -OF -WAY
3EING 0.061 acres of land located in the S. HENDERSON SURVEY, Abstract
No. 629, Dallas County, Texas, and crossing the tract of land conveyed to
Irma Hazel Ihnfeldt by the deed recorded in Volume 91123, Page 4086 of
the Deed Records of Dallas County, Texas. Said 0.061 acres being more
particularly described by metes and bounds, as follows:
BEGINNING at a 1/2" iron rod found at the Southeast corner of said
Ihnfeldt tract lying in the existing North right of way line of
Sandy Lake Road with its intersection with the West right of way
line of Lodge Road;
THENCE S 89 06' 30 W 93.95 feet along the South boundary line of
said Ihnfeldt Tract to a 1/2" iron rod found at` the Southwest
corner thereof;
THENCE N 05 10' 51" W 25.05 feet to a 1/2" iron rod set in the
proposed new North right -of -way line of Sandy Lake Road;
THENCE N 89 07. 01" E 72.56 feet severing said Ihnfeldt Tract to
a 1/2' iron rod set;
THENCE N 44 53' 01' E 34.38 feet to a 1/2' iron rod set in the
East boundary line of said Ihnfeldt Tract, being the West right -of-
way line of aforesaid Lodge Road;
THENCE S 00 43 13• W 48.97 feet along the West right -of -way line
of said Lodge Road to THE PLACE OF BEGINNING, containing 0.061
acres (2,666 square feet) of land.
Evaluation Associates
Page -18-
PROPOSED ACQUISITION MAP
SCALE 1" - 40'
"W
PARCEL No. 13T
TEMPORARY SLOPE EASEMENT
Evaluation Associates
Page -19-
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SANDY LAKE ROAD
SURVEYED ON THE GROUND
APRIL 29, 1996
7,
JAMES L. BRITTAIN
REGISTERED PROFESSIONAL
LAND SURVEYOR
STATE OF TEXAS No. 1674
&
1874 e
SCALE 1" - 40'
"W
PARCEL No. 13T
TEMPORARY SLOPE EASEMENT
Evaluation Associates
Page -19-
METES AND BOUNDS DESCRIPTION OF PROPOSED ACQUISITION AREA
EXHIBIT A
LEGAL DESCRIPTION
TEMPORARY SLOPE EASEMENT
BEING 360 square feet of land located in the S. HENDERSON SURVEY,
Abstract No. 629, Dallas County, Texas, and crossing the tract of land
conveyed to Irma Hazel Ihnfeldt, by the deed recorded in Volume 91123,
Page 4086 of the Deed Records of Dallas County, Texas. Said 360 square
feet being more particularly described by metes and bounds, as follows:
BEGINNING at a point located within said Ihnfeldt Tract, lying
N 00 43' 13" E 48.97 feet, THENCE S 44 53' 01" W 27.28 feet
from the Southeast corner of said Ihnfeldt Tract;
THENCE S 44 53' 01" W 7.10 feet to a 1/2" iron rod set;
THENCE S 89 07' 01" W 72.56 feet to a 1/2" iron rod set in the
West boundary line of said Ihnfeldt Tract;
THENCE N 05 32' 44" E 4.71 feet along the West boundary line of
said Ihnfeldt Tract to a point;
THENCE N 88 54' 39" E 77.13 feet to THE PLACE OF BEGINNING, con-
taining 360 square feet of land. ,
Evaluation Associates
Page -20-
Acquisition Issues:
The proposed acquisition area contains 0.061 acres or approximately eight (8 %) percent of the total
land area. Therefore, the estimated contributory value of the proposed acquisition area is calculated
below.
Sandy Lake Right of way (0.061 Acres /.7591 Acres = 8.036 %) x $62,000 = $4,982 Rd
(Fee simple value)
Improvements in the proposed acquisition: Chain link fencing along the southern (Sandy Lake Rd
frontage) with a small portion along Lodge Road -
These items will be relocated and improved by the City
Temporary Construction Easement
This type of easement is treated as a rental of the land. Consideration is given the current interest
rates, a 7% return is considered appropriate for this type of temporary acquisition. It is assumed that
the duration of the easement is 1 year. The result compensation is calculated as follows:
TCE (360 SF/ 33,066 SF) x $62,000 = $675
Impact on Remainder Value (Damages):
After the proposed acquisition, the new Sandy Lake Road right -of -way line will be within ten feet of
the existing dwelling. The dwelling will not comply with the current zoning requirements. The
widened and improved thoroughfare will be safer, but too close to the dwelling to be consistent with
accepted community normalcy, thus, reducing the enjoyment and the value of the dwelling. Empirical
evidence indicates a reduction in value of the dwelling due to these conditions. For many years
Evaluation Associates has noted the gradual demise of older dwellings left too close to the new, wider
thoroughfares. The loss in value of the remainder property is limited to the common sense
modification to the existing dwelling which can be measured by the cost to cure the situation. The
most practical approach to curing these damages is moving the dwelling back away from the new
thoroughfare the same, or similar, distance as the proposed acquisition. Relocation of the dwelling
can be accomplished at an estimated cost $15,000. This cost includes the building of a new
foundation as well as new porches and walkways, and the cost of extensions and relocation of
plumbing and electrical, and adjustments to trim features as may be needed. Relocation of the
dwelling should bring the remainder the remainder property (dwelling) into compliance legal and
Page -21-
market accepted setbacks. Construction plans for the proposed thoroughfare were not available to
the appraisers and we have assumed that the grade change from the existing terrain to new Sandy
Lake Road will be minimal and acceptable physically manageable compared to market norms.
Conclusions
As previously explained our research has included an investigation of market and neighborhood trends
which are believed to influence the value of the subject property. Based on our analyses and
interpretation of the data, it is our opinion that the Market Value of the various proposed acquisition
areas, as of February 4, 1998, can be estimated and calculated as follows:
Value of Whole Property $80,000
Land $62,000
Improvements $18,000
Value of the Proposed Acquisition Area $4
Value of the Remainder Before the Acquisition $75
Land $57,018
Improvements $18,000
Value of the Remainder After the Acquisition $60,018
- Land $57,018
Improvements $3,000
Remainder Loss in Value
Based on cost to cure to relocate the dwelling $15,000
TCE
Total Compensation
$675
$20,657
Page -22-
AFFIDAVIT AND CERTIFICATE OF VALUE
The undersigned does hereby certify that, except as otherwise noted in this appraisal report:
I have personally inspected the subject property with primary focus on the proposed ROW
acquisition area, including the land and improvements within, and the effect, if any, on the
value of the remainder.
2. I have no present or contemplated future interest in the real estate that is the subject of our
evaluation.
3. I have no personal interest or bias with respect to the subject matter of this evaluation or the
parties involved.
4. To the best of my knowledge and belies; I have included only truthful statements of fact in this
report; and the analysis, opinions and conclusions expressed herein are true and correct and
no pertinent information has knowingly been withheld.
5. The compensation for my professional service 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. No persons other than the undersigned prepared the analyses, conclusions and opinions
concerning real estate that are set forth in this appraisal report.
9. This document is hereby communicated to the original client named in the transmittal letter
for the privileged use that client and their selected distribution. It is understood that most
appraisal products are prepared to be a tool for some financial decision purpose. With this
understanding, it should be noted that this report was obtained from Evaluation Associates,
who owns the data and the detailed file memorandum, notes, etc., which may consist of trade
secrets and commercial or financial information that is privileged and confidential and
exempt from disclosure under 5 U.S.C. 552 (b) (4). Therefore, please notify Evaluation
Associates of any request of reproduction of this appraisal.
Page -23-
AFFIDAVIT AND CERTIFICATE OF VAL UE
10. The act of preparation and submission of this report to the public in the form of the original
client, simultaneously makes this report subject to the professional requirements of the
Appraisal Institute and the International Right of Way Association regarding review by its
duly authorized representatives.
11. I am a voluntary participant in the various voluntary and mandatory programs of continuing
education of the Appraisal Institute and the International Right of Way Association.
Designated members who meet the minimum standards for these programs are awarded
periodic educational certification. James W. Cullar, Jr. is currently certified under these
programs.
12. The market derived value of the proposed acquisition area as of February 4, 1998 is estimated
to be:
TWENTY THOUSAND SIX HUNDRED FIFTY SEVEN DOLLARS
($20,657)
Page -24-
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.
Founder and general manager o£Evaluation Associates, a real property consulting and land rights
acquisition firm, providing a variety of real property evaluation services for the financial market,
public land rights acquiring agencies, and individuals seeking decision making information for
_ mortgage lending, asset review, right of way land rights acquisition and related matters.
Tim Cullar has qualified as an expert witness in county, state and federal courts in Dallas, Tarrant,
Collin, Denton, Ellis, Grayson, and Travis Counties.
Prior to founding Evaluation Associates, Jim was a lender and appraiser with a large financial
institution; and later the chief appraiser with the Right of Way Division of the Dallas County
Department of Public Works. He has been a self employed consultant since 1985. Jim stays
current with industry change through reading, continuing education, teaching, forum discussion,
and publication.
The Appraisal Institute SRPA, SRA Member designation
Officer and Director - North Texas Chapter (Dallas Area)
Past President - North Texas Chapter 1995
National Government Relations Committee representing Texas and New Mexico
Member National Board of Directors - 1997 - 1999
International Right of Way Association (IRIWA Region 2)
SR/WA Designation
Certified Instructor of
Real Estate Appraisal Principles
Income Approach to Valuation
Appraisal of Partial Acquisition
Easement Evaluation
- DFW Chapter 36 - Officer
Dallas Board of Realtors (Institute Affiliate)
— Licensed Texas Real Estate Broker #142545 (inactive)
State Certified General Texas Real Estate Appraiser - TX - 1321322 G
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ADDENDUM
ASSUMPTIONS, LIMITING CONDITIONS & DISCLOSURES
For the purpose of this appraisal, the following assumptions and limiting conditions are made a part
thereof:
1. That title to the individual property will be good and marketable and that title is in fee simple
under single ownership unless otherwise stated.
2. No responsibility is assumed by the appraiser for matters of legal character. The value is
reported without regard to questions of title, boundaries, encumbrances, easements and
encroachments. All existing liens and encumbrances have been disregarded, and the property
is appraised as though free and clear under responsible ownership and management unless
otherwise stated.
3. The valuation is reported in dollars of currency prevailing on the date of the appraisal.
4. If the subject is an improved property, the sketches in this report are approximate and are
included, together with the photography, to assist the reader in visualizing the property.
5. All information and comments pertaining to this and other properties represent the
combination of facts provided by others and the professional opinion of the appraiser, formed
after caareful examination and study of the subject property. Hence, the work product of the
appraiser is an estimate. While it is believed 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 assumes any
financial liability for errors in facts provided by others, analysis or judgement. The client's
remedy is referal of a faulty analysis to the Appraisal Institute, the International Right of Way
Association, and/or the Texas Appraisal Licensing and Certification Board.
6. Neither all nor any 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 without prior written consent and
approval of the undersigned.
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.
ASSUMPTIONS, LIMITING CONDITIONS & DISCLOSURES VALUE
9. This appraisal report was prepared by James W. Cullar, Jr. SRPA, SRA, SR/WA inspecting
the subject property and deriving the analysis and value conclusions. Richard N. Baker, MAI
provided significant professional assistance in the development of this report.
10. 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.
11. Certain information concerning market and operating data was obtained from others. This
information is verified and checked, where possible, and is used in this appraisal only if it is
believed to be accurate and correct. However, such information is not guaranteed. As a
body, the collective data gathered as a part of the project is believed to be representative of
current trends and values.
12. Real estate values are influenced by a large number of external factors. The analysis included
all of the data necessary to form an informed highest and best use and value conclusion. The
report does not include all the data necessary to support the value estimate. All pertinent facts
have been referenced in this report, but we do not guarantee that we have knowledge of all
factors that might influence the value of the subject. Due to rapid changes in the external
factors, the value estimate is considered reliable only as of the date of the appraisal.
13. Opinions of value contained herein are estimates. There is no guarantee, written or implied,
that the subject property will sell for such amounts.
14. 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.
15. This report was obtained from the firm of Evaluation Associates and has trade secrets and
commercial or financial information that is privileged and confidential and exempt from
disclosure under 5 U.S.C. (b) (4). It also may contain confidential information gathered
through private investigative activities by the undersigned involving verbal agreements with
buyers, sellers, brokers or related knowledgeable insiders. This report is intended for the
exclusive use of the client named in the letter of transmittal and the court, if appropriate. If
used by any third party for any purpose other than that of estimating the market value
compensation for the acquisition the whole or part of the property for public acquisition
would be inappropriate without the written consent and approval of the appraiser. Should
the report be shown to a party not authorized, the client agrees to hold harmless from any
liability that might arise from such unauthorized use, including reasonable attorney fees for
our defense of action.
16. 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
ASSUMPTIONS, LIMITING CONDITIONS & DISCLOSURES VALUE
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.
17. 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.
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 own 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 Used The value of an economic good to its owner -user which is based on the
productivity (privacies in income, utility or amenity form) of the economic good to a specific
individual.
3. Highest and Best Use: The most profitable likely use to which a property can be put. That
use of land which may reasonably be expected to produce the greatest net return to land over
a period of time. That legal use which will yield to land the highest present value.
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SF = square feet RR = railroad
/AC = per acre ROW = right of way
5. Vehicular traffic artery abbreviations:
St. =
Street
Frwy =
Freeway
Ln =
Lane
Expwy =
Expressway
Dr =
Drive
Hwy =
Highway
Rd =
Road
SH =
State Highway
Pi =
Place
N =
North
Pkwy =
Parkway
S =
South
Ave =
Avenue
E =
East
Blvd =
Boulevard
W =
West
Cir =
Circle
FM =
Farm to Market Rd
Ct =
Court
US =
United States Highway
Mt. =
Mount
I =
Interstate Highway