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4.7. SR 12-11-2000 r(/ -\) ( ~ . City of lY Elk Item #4.7. MEMORANDUM TO: Mayor & City Council Pat KIaers, City AdJ:}~tor December 11, 2000 ~ FROM: DATE: SUBJECT: Review Appraisal for Residential Property Next to the Library . The City Council has reviewed and discussed obtaining properties to the west of the library and its parking lot for future expansion of the building and parking lot. To this end, the city has had an appraisal completed on the Bailey home as we understand that Mrs. Bailey may be interested in working out a purchase agreement with the city. As the city has no immediate plans for expansion, a purchase agreement can take many different forms, including the city purchasing the property now and allowing Mrs. Bailey to continue staying in her home for xxxx length of time. The total purchase price and how the city finances the acquisition depends upon the purchase agreement structure. Jerry Smith of White Dove Appraisals completed the appraisal for this property. Mr. Smith will be in attendance at this meeting to explain the appraisal and to answer questions from the council. The city will be able to afford this acquisition. Lori and I can explain how this can be accomplished after a purchase agreement is structured. Financing options include increasing the amount of landfill revenue that is dedicated toward library debt and/or increasing the library tax levy. The current library expansion bond goes until 2007 and has a balance due of $206,000. . This Bailey property is anticipated to be needed for the expansion of the parking lot. In order for the library expansion to take place, the city also needs to purchase the property directly west of the building. This homeowner has not yet been approached, but the library/city and this homeowner are on good terms and we experienced no difficulties in working with this homeowner during the most recent library expansion. Even without having any certainty as to when and how we can purchase this property west of the 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone (763) 441-7420 · Fax (763) 441-7425 ~. . . building, it makes sense for the city to pursue the Bailey property at this time. We may not expand the parking lot for a number of years, and if this turns out to be the case, we likely will be in the residential rental business. If for some reason the city never expands the library or its parking lot, we can always resell this property at a future date. Recommendation It is recommended that the city authorize staff to begin discussions for the acquisition of this property and the development of terms and conditions for a purchase agreement. . I Cj ---1 I I J LJ Z W (-1\) 0 l)'l C RI.JSH ^VEN.E c- ---1 Cl I ~ Z ~I ~ ~ I , r\J ~ Cl.lINN ^\IEN.E (;) X III i\J ~ ~ ...b. (J) fll Cl PROCTlR W W -j W W WHITE DOVE APPRAISALS 403 Main Street, Elk River, MN 55330 F~e No. 0076 APPRAISAL OF SINGLE FAMILY RESIDENTIAL LOCATED AT: 1217 5th Street Elk River, MN 55330 FOR: City of Elk River 13065 Orono Parkway Elk River, MN 55330 BORROWER: AS OF: October 10, 2000 BY: Jerry E Smith Certified Residential Appraiser l_ WHITE DOVE APPRAISALS 403 Main Street, Elk River, MN 55330 File No. 0076 City of Elk River 13065 Orono Parkway Elk River, MN 55330 File Number: 0076 In accordance with your request, I have personally Inspected and appraised the real property at: 1217 5th Street Elk River, MN 55330 The purpose of this appraisal is to estimate the market value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the estimated market value of the property as of October 10; 2000 is: $144,000 One Hundred Forty-Four Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final estimate of value, descriptive photographs, limiting conditions and appropriate certifications. =-- ~._--_",.r- ll;__!""'>A'_"'."" .., --.-"----H..J4'..:::-.~Lb ProDertv DescrlDtlon UNIFORM RESIDENTIAL APPRAISAL REPORT File No., 0076 Prooertv Address 1217 5th Street cnv Elk River State MN ZipCode 55330 Legal Description Lot 10, Block 2 Thomas Addition County Sherburne Assessor's Parcel No. 75-409-0245 Tax Year 2000 R.E. Taxes $ 1 164.00 Soecial Assessments $ --- .wer --- --- Current Owner Gloria Bailey Occuoant: rX Owner 1 Tenant r 1 Vacant " ertvriahtsaooraised [xl Fee Simple 1 Leasehold I ProieclTvoe PUD 1 CondominiumCHUDNAonlv)' HOA$ /Mo. Neighborhood or Proiecl Name Thomas Addition Mao Reference 33, 1 D Census Tract 0305 Sale Price $ 0 Date of Sale Description and $ amount of loan charges/concessions to be paid by seller Lender/Client City of Elk River Address 13065 Orono Parkway, Elk River, MN 55330 Appraiser Jerry E Smith Address 403 Main Street Elk River, MN. 55330 Location U Urban ~ Suburban W Rural Predominant Single family housing Present land use % Built up f)(l Over 75% 0 25-75% 0 Under 25% occupancy PRICE AGE One family 90% I.6.J $ (000) (1") Growth rate 0 Rapid 00 Stable 0 Slow 00 Owner 90 Low 20 2-4 family Property values 00 Increasing 0 Stable 0 Declining 0 Tenant 250 High 75+ MuKi-famly Demand/supply Q Shortage 00 Jn~ 0 Over9JpPy 00 VacanI(l}-5",4,),PY Predominant ,.F: Commercial Marketingtime IXI Under 3 mos. II 3-6 mos. II Over 6 mos. II Vacanl(over5%\ 130 40 Vac \ 10% Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundaries and characteristics: North -- US Hiohway #10, East ~- Proctor Ave, South -- Main Street, West -- Upland : Ave. · Factors that affect the marketability of the properties in the neighborhood (proximity to employment and amenities, employment stability, appeal to market, etc.): ~ The subject is located in the city of Elk River a community of about 17000 on US Hiahways 10 and 169 approximately 30 miles " northwest of the Minneapolis metro area. Adequate shoppino and services can be found in Elk River. Land use change 00 Not likely 0 Likely o In process To: Market conditions in the subject neighborhood (including support for the above conclusions related to the trend of property values, demand/supply; and marketing time ~ - such as data on competitive properties for sale in the neighborhood, description of the prevalence of sales and financing concessions, etc.): The market has been active with low interst rates. Typical points paid by the seller are from 0 to 3 percent. The subject is typical for the market area and should experience averaoe market time. The subiect has not been on the market in the past year unless indicated below. roJect Information for PUDs (If applicable) - -Is the developer/builder in control of the Home Owners' Association (HOA)? U YES U NO . Approximate total number of units in the subject project N 1 A Approximate total number of units for sale in the subject project N 1 A Describe common elements and recreational facilities: N 1 A . Dimensions 60 X 174.3 Topography Basically Level Sne area 0.24 acres Corner Lot U Yes [Xl No Size Typical for area Specific zoning classification and description Sino Ie Family Residential Shape Rectanoular Zoning compliance 00 Legal 0 Legal noncontonmg(Grandfathered use) U Illegal U No zoning Drainage Appears adequate Highest & best use as irT1ll'oved: rxr Present use n Other use (exolain) View AveraQe Utilities Public Other Off-site Improvements Type Public Private Landscaping Typical Electricny [Xl Street Blacktop 00 0 Driveway Surface Concrete Gas 00 Curb/gutler Concrete 00 0 Apparent easements None apparent Water 00 Sidewalk Concrete 00 0 FEMA Special Rood Hazard Area U Yes [Xl No Sannary sewer 00 Street lights Yes 00 ~ FEMA Zone X Map Date 2/19/92 Storm sewer [Xl AJ1ey None n I I FEMA Map No. 270436-0015-0 Comments (apparent adverse easements, encroachments, special assessments, slide areas, illegal or legal nonconforming zoning, use, etc.): No adverse conditions were apparent at the time of the inspection. .. 1 1 FOUNDATION Slab none 0<Ml Spool none Basement full SUfTll PUfTll none Dampness none noted Setllemenl none noted Infestation none noted Family Rm. Rec. Rm. Bedrooms 1 2 3 BASEMENT Area Sq.Ft. 1246 % Finished 75% Ce~ing drywall Walls drywall ROOf carpet Outside Entry walk-up INSULATION Roof 0 Ceiling 00 Walls 00 Roor c=J None c=J Unkmwn 0 GENERAL DESCRIPTION No. of Unb One No. of Stories One Type (Det./Att.) Detached Design (Style) Rambler ExistinglProposed Existing Age (Yrs.) 32 yrs Effective Age [Yrs.) 20 rs ~MS Foyer Living ~ment Levell 1 . Level 2 EXTERIOR DESCRIPTION Foundation conc. block Exterior Walls stucco Roof Surface asphalt Gutters & Dwnspts. none Window Type double hunQ Storm'Screens yes Manufaclured House no Dining Knchen Den II Baths 0.75 1 Lau ndry Other Area Sq.FI. 935 1,246 . Finished area above grade contains: 6 Rooms' 3 Bedroom s); 1 Bath(s); 1 246 Square Feet of Gross Livina Area . INTERIOR MaterialslCondnion HEATING KITCHEN EQUIP. ATTIC AMENITIES CAR STORAGE: Floors Carpet vinyl 1 ave Type BB Refrigerator 0 None 0 Fireplace(s) II _ 0 None 0 . Walls Drywall 1 ave Fuel Gas Range/Oven 0 Stairs 0 Patio 0 Garage # of cars T rim'Finish Oak-stain 1 ave CandilionAvo. Disposal 0 Drop star 0 Deck 0 Attached Bath Floor Vinyl 1 ave COOLING Dishwasher 00 Scuttle 00 Porch 0 Detached 2+ Bath Wainscot Drywall 1 ave Central None FanIHood 00 Floor 0 Fence 0 Built-In Doors Oak-flush 1 ave Other None Microwave R Heated R Pool R Carport Condilion- WasherlDrver Finished Drivewav Additional features (special energy efficient items, etc.): Outside walk-up from lower level shop in the QaraQe, central vacuum. dition of the improvements, depreciation (physical, functional, and external), repairs needed, quality of construction remodeling/additions, etc.: Normal sical depreciation was applied based on the aQe/life method. The subject is of average Quality and condition for its age in this market area. . Adverse environmental conditions (such.as, but not limited to, hazardous wastes, toxic substances, etc.) present in the improvements, on the site, or in the immediate vicinity of the subject property: None noted. Freddie Mac Fum 70 ~93 PAGE 1 OF 2 Thii form was urodUC6d on the ACI Oevekioment RaoldForms swiemW.:l\~~; ~ Fannie Mae Fam 1004 ~93 Valuation Section WHITE DOVE APPRAISALS UNIFORM RESIDENTIAL APPRAISAL REPORT File No. 0076 35,000 Commenls on Cosl Approach (such as, source of cosl eslimale, sile value, square fool calculation and for HUD, VA and FmHA, Ihe eslimaled remaining economic life of Ihe property): Reproduction cost fioures are compiled from a collection of data from local builders. ESTIMATED SITE VALUE. . . . . . . . . . . . . . . . . . . . . . . . . . . = $ ESTIMATED REPRODUCTION COST-NEW OF IMPROVEMENTS: _Dwelling 1,246 Sq. Ft.@$80.00=$.99,680 Sq. Fl. @$ 18.00 = 16,830 ~ -up, cent vac = 3,000 , GaragelCarport ~ Sq. Fl. @ $ 18.00 = 13,824 - T olal Eslimaled Cosl New = $ 133,334 Less Physical I Fu'n~I'i~n~I'I' E~~;n~I' . Est. Remaining Econ. Life: · Depreciation 20% --- --- = $ 26,667 Deprecialed Value of Improvements . . . . . . . . . . . . . . . . . .. = $ 106 667 'As-is' Value of Sile Improvemenls. . . . . . . . . . . . . . . . . .. = $ 5 000 INDICATED VALUE BY COST APPROACH. . . . . . . . . .. = $ 146700 ITEM SUBJECT COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 1217 5th Street 847 Xenia Ave 11934 191st Ave 957 York Ave Address Elk River Elk River Elk River Elk River Proximity 10 Subiecl/"; 1 mile Northwest 1 mile Northeast 1 mile Southwest Sales Price $ ot., $ 141500......,'/".. $1.11.7 onn/.,,':i. $ 159,900 PricelGrossLiv.Area $ 0.00 III $ 136.06 IllF/ <i'ii' $ 146.73 IllL).;'<. .............. $ 95.18 Ill"; .... Dala and/or Inspection MLS 43 days on market MLS 71 days on market MLS 95 days on market Verification Sources VALUE ADJUSlMENTS DESCRIPTION Sales or Financing... ,.' .., ". Concessions- . '. . ..... " . ..,. Suburban Fee Simple 0.24 acres AveraQe Rambler lave Averaoe 20 Yrs. eft Averaoe Nel Adi. (Iolal) <<... rxl + f - ' $ 700 f 1 + fxl - ' $ ~:~:::r:I:~POCe .i"~ iil.,.;,. .."~niij,:,!: $ 142.200~:i0s:i1~;~o;i,i;. Commenls .on Sales Comparison (including Ihe subjecl property's compalibilily 10 Ihe neighborhood, ele. ): serviced with city sewer and water as was the subject. SUBJECT Dale, Price and Dala N IA rea for prior sales ill year of appraisal Analysis of any currenl agreemenl of sale, option. or lisling of the subjecl property and analysis of any Prior sales of subject and corrparables within one year of Ihe dale of appraisal: There is no sale, option, or lease on the subiect prooerty. Prior sales over the oast several years ( if any) have been indicated above for the subject and com parables: INDICATED VALUE BY SALES COMPARISON APPROACH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ . INDICATED VALUE BY INCOME APPROACH (If Aoolicable) Estimated Markel Renl $ N/A /Mo. x Gross Renl MuHioIier N/A = $ This appraisal is made (ZJ 'as is' 0 subject to the repars, aHerations, inspections or conditions listed below 0 subject to colJlllelion per plans and specifications. CondilionsofAppraisal: The~incE..rT}e a~P-foach was not aPJ:>!ica.!?~to this prop_e.!!L ,___ Date of SalelTime Localion Leasehdd.fee SJrde Site View Design and Appeal c1Cons1rudion Condition Above Grade _ Room Count _ Gross Livino Area Basemenl & Finished . Rooms Below Grade . Functional UIilitv Heatino/Coolino Energy Efficient lIems Garage/Carport . Porch, Patio, Deck, Fireplace(s). ele. Fence Pool elc. . ITEM ToIal ' Bdrms' Baths 6: 3: 1.00 1,246 SaH. full -- walk-up . Q35 ft finished AveraQe Gas BB, none 2+, Det. GaraQe Cent vac DESCRIPTION ".i FHA -- 0 pts :.;. ! 3/16/00 equal Fee Simole 0.46 acres equal rambler I equal eQual 20 yrs eft equal I . (-) $ Adjustment I . (-) $ Adjustment I . (-) $ Adjustment DESCRIPTION --- Cash DESCRIPTION --- ConY -- 0 pts --- 7/14/00 --- eoual --- Fee Simole 0.76 acres -- eoual --- rambler I equal --- equal 25 vrs eft -- eaual --- 3/20100 --- equal --- Fee Simole --- 0.8 acres --- equal --- rambler I eoual -- equal --- 15 yrs eft -- equal -1,000 -1,000 +5000 -5 000 Total I Bdrms: Baths : 6: 3: 1.00' 1.040 5o.Ft. : full -- : , 1000 ft finished : eQual : Gas FA, ClAir : Total, : Bdrms I Baths : 6: 3: 1.00: 1 008 Sa.FI. : full -- wlo : , --- 863 ft finished : --- eQual : Gas FA, ClAir : -2,000 Total : Bdrms I Baths : 7: 3: 1.50: 1 680 SQ.Ft. : full - : , 900 ft finished : --- eoual : Gas FA, ClAir : +6,200 +7,100 -1,000 -10,600 -600 +500 -2,000 -2,000 2 att, 2 det deck, see sys -2,000 2+ att -1,000 por, fpl -5,000 -2,000 2 att, 2 det -1,500 patio,sec sys 4,500 r 1 + [xl- Gr()$S;.1p,7% $ 143,400 Net:"~8.8%' All of the comoarables were in : $ 14 100 $ 145800 subdivisions COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 N fA N IA N IA 144,000 o Final Reconc~ialion: The sales comparison approach best indicates the value of the subiect and was weiohed the most in the final determination of value. . .' The purpose of Ihis appraisal is 10 estimale Ihe markel value of the real property Ihal is Ihe subject of this report, based on Ihe above conditions and the certification, conlingenl and Iim~ing cond~ions, and markel value definition thai are s1aled in Ihe attached Freddie Mac Form 439IFannie Mae Form lOO4B (Revised 6/93 ). I WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AS OF 10/10/2000 IICH~EDATEOFINSPECTIONANDTHEEFFECTIVEDATEOFTHISREPORT)TOBE$ 144,000 . .' , , P~E': C;;:::;::' /7 # SUPERVISORY APPRAISER (ONLY IF REQUIRED): Sionalure ~ - Signalure Name Je~ E Smjtfi/ Name Dale ReporM igned 10/3112000 Dale Report Signed SIale Certification # SIale MN SIale Certificalion # Or SIale License # 4000439 Slale MN. Or SIale License # Freddie Mac Form 70 (;,93 o Did DDid Nol Inspecl Property SIale Slale PAGE 2 OF 2 This form was produced on the ACt Deveklpment RapidForms. $~tem (800)2.14.-8nl white dove appraisals Fannie Mae Form 1004 (;,93 . File No. 0076 DEFINITION OF MARKET VALUE: 'The most probable price which 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, 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 to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) 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. · Adjustments to the comparables'must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the Appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. . 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc. ) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc. ) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. . 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. . 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors .and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 6-93 Fannie Mae Form 1004B 6-93 Paoe 1 of 2 F~e No. 0076 APPRAISERS CERTIFICATION: The Appraiser certifies and agrees that: .1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of sionificant variation. If a sionificant item in a comoarable orooertv is suoerior to . or more favorable than. the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the aooraisal reoort on the race. color, reliqion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. .7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value ana the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. . ADDRESS OF PROPERTY APPRAISED: 1217 5th Street, ElkRiver, MN 55330 APPRAISER: SUPERVISORY APPRAISER (only if required) ~nal:~_~ Name: Jer mit Date Signed: /31/2000 State Certification #: or State License #: 4000439 State: MN. Expiration Date of Certification or License: August 31, 2002 Signature: Name: Date Signed: State Certification #: or State License #: State: Expiration Date of Certification or License: . o Did 0 Did Not Inspect Property Certified Residential Appraiser '. FrAridie Mac Form 4396-93 Paoe 2 of 2 Fannie Mae Form 1004B 6-93 LOCATION MAP. File No.: 0076 Case No.: State: MN Zip: 55330 N.W ~~ >- q:.. ( . .~. J J'L)~ ~f./.f./Slt ~"""c/<?, " 193RD AVE 96th CJR. ..-- q,:;........ . COMPARABLE PROPERTY PHOTO ADDENDUM . . COMPARABLE SALE #1 &47 Xenia Ave Elk River COMPARABLE SALE #2 11934191s1Ave Elk River COMPARABLE SALE #3 957 Ycr.k Ave Elk River . . . FRONT VIEW OF SUBJECT PROPERTY Appraised Value $144,000 REAR VIEW OF SUBJECT PROPERTY STREET SCENE .- ., FLOC-~L - 21' 6' 7' Living Roo Entry 40' 46 ' Kitche Br Bath Br Br LL entry 4' 15' 24' 2 Car Garage 32' Shop State: MN File No.: 0076' Case No.: Zip: 55330 21 x 6 x 1 = 40 x 28 x 1 = 1120 sq ft 126 sq ft 1246 sq ft finished above grade . White Dove Appraisals Commercial and Residential Specialists Name: Age: AQQress: EQucation: . Experience: Qualifications of the Appraiser Jerry E. Smith Born October 10, 1936 24860-147th Street N.W., Zimmerman, MN 55398 Graduated from Osseo Public Schools 1954 Graduated with B.S. from St. Cloud State 1963 Graduated with M.S. from University of North Dakota 1968 NAIFA Courses Appraisal Standards & Ethics Principles of Real Estate Appraising Report Writing URAR Report Writing Marshall and Swift Residential Cost Approach Marshall and Swift Commercial Cost Approach Licensed Real Estate Salesman since 1974 Owner and Broker since 1977 Owner of White Dove Appraisals since 1982 Professional Organizations: Anoka County Board of Realtors since 1976 . Partial List of Clients: . Served as Director of Anoka County Board 1982-1983, 1988-1990 Member of National Association of Independent Fee Appraisers Bank of Elk River Federated Teachers Credit Union Security Pacific Terpstra, Black, Brandell & Kaminsky, Attorneys Clifford C. Lundberg, Attorney Sherburne County' Court Minneapolis Building Trade Credit Union Honeywell Employees Credit Union TRW Real Estate Loan Services Associates Industrial Loan Company ITT Norwest First National Bank of Elk River Sears Mortgage Corporation shearson Lehman Hutton Ford Consumer Financial Co. US Department of HUD/MN 907 Main Street, Elk River, MN 55330 . (612) 441-2248