7.2. HRSR 01-02-2018
Request for Action
To Item Number
Housing and Redevelopment Authority 7.2
Agenda Section Meeting Date Prepared by
General Business January 2, 2018 Amanda Othoudt, EDD
Item Description Reviewed by
Main Street Redevelopment Project Cal Portner, City Administrator
Reviewed by
Action Requested
Direct staff, by motion, to obtain appraisals for property PID 75-401-0130 and PID 75-401-0140.
Background/Discussion
At their November 7, 2017, meeting, the HRA expressed interest in purchasing residential properties
along east Main Street connecting to Highway 169 for a potential redevelopment project that would align
with the Mississippi Connections Plan.
There are seven properties in the proposed redevelopment area. One property has been purchased and
staff is set to close on a second property in mid-January.
Staff is working with the property owner of two more properties within the redevelopment area and is
seeking approval to obtain appraisals for property PID 75-401-0130 and PID 75-401-0140.
Financial Impact
The total cost of the appraisals is $4,000, which is budgeted as Miscellaneous Acquisition of Property.
The HRA will utilize reserve funds for the purchase of all seven properties. Interfund loan resolutions
were approved by the HRA and Council in the event a TIF District is created in the future and used to
pay back acquisition, demolition and site prep costs incurred as part of this project.
Attachments
Casserly Appraisal Proposals (December 19, 2017)
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Page 1 of 3 Page 1 of 3
CASSERLY APPRAISALS
21895 County Road 117
Rogers, MN 55374
763-428-4894
Kevin J. Casserly, MAI - Principal
December 19, 2017
Amanda Othoudt, EDFP
Economic Development Director
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
APPRAISAL PROPOSAL
RE: The appraisal of 414 Main St NW, Elk River, MN 55330.
Dear Ms. Othoudt:
Thank you for asking me to prepare this proposal to appraise this property. The purpose of the
appraisal is to provide you an opinion of the market value of the property. The intended use of
the appraisal is for buying purposes. The intended user of the appraisal is the City of Elk River.
The appraisal would be prepared in an appraisal report format which for this appraisal means that
I would detail the data, analyses, and conclusions that are significant to the value opinion.
The effective date of the appraisal would be the date of my inspection of the property. As part of
my preparation before inspecting the property I would discuss with the owner any concerns he
has about tenants learning of the purpose of my inspection. After this discussion, I would convey
these concerns to you. Should they add uncertainty to the market value opinion, you and I can
discuss such uncertainty at that time. For example, if the owner does not want me to inspect the
interior of the house, I may have to make an extraordinary assumption about its features and
current condition.
Page 2 of 3 Page 2 of 3
Amanda Othoudt
December 19, 2017
The subject property. According to the Realist Tax Service website, the subject property contains
a 1.75 story home, built in 1920, with 1,770 sf of finished area and a crawl space for a basement.
It has 3 bedrooms, 2 bathrooms, deck, front porch and a 1-Car garage. The site is 53 ft wide by
165 ft deep or 8,745 sf. The property is owned by River Holdings LLC and is zoned C2, Office
District. The property has a Sherburne County property identification number of 754010145.
The scope of the work for this valuation service includes:
contacting the property owner and discussing both the appraisal and the inspection with him;
inspection of the property;
review, analysis and conclusions of zoning, land use regulations, and property taxes;
research, analysis and delineation of the market for older homes on land zoned for office use
in the Elk River area;
consideration of the highest and best use of the property;
an analysis of three market values by applying the appropriate approaches to value; and
the preparation and delivery of a pdf of the appraisal report to you at
AOthoudt@ElkRiverMN.gov.
The complexity of the appraisal results from analyzing and delineating the markets in the Elk
River area both for older single family homes and for office lots.
Following is a list of items that I like to get for an appraisal assignment like this one:
1) Contact information for the property owner;
2) Access to both the exterior and the interior of the property for the inspection;
3) Copies of any leases of the property;
4) The last three to five years of income statements for the property, including year to date for
2017 and / or 2018;
5) Current zoning and land use plan documents if the city’s website is not current;
6) Any information about sales, rents, expenses or capitalization rates of this property or similar
properties, including any signed purchase agreements or signed offers or signed listing
agreements for the subject;
Page 3 of 3 Page 3 of 3
Amanda Othoudt
December 19, 2017
7) Names and contact information of property owners, developers, property managers, or real
estate agents who are involved with similar properties; and
8) Any other helpful documents or information. Examples include – surveys and / or
preliminary plats with elevation lines and / or soil test results.
The appraisal will comply with the professional and ethical standards of the Appraisal Institute,
and with the 2016 – 2017 Edition of the Uniform Standards of Professional Appraisal Practice
(USPAP) of the Appraisal Foundation. I am a designated member of the Appraisal Institute.
The appraisal fee for these services is $1,750 which is due and payable upon my completion of
the report. My fees are not contingent upon the estimates of market value that will be made.
Please sign the authorization below and return it to me digitally or via US mail. The appraisal
will be completed within two weeks of my receipt of your authorization. Thank you again for
asking me to prepare this proposal. Please call me at 763-428-4894, if you have any questions,
comments or concerns.
Very truly yours,
CASSERLY APPRAISALS
Kevin J. Casserly, MAI - Principal
Certified General Real Property Appraiser
Minnesota License #4002724, expires August 31, 2018
Authorization to Proceed:
date:
Page 1 of 4 Page 1 of 4
CASSERLY APPRAISALS
21895 County Road 117
Rogers, MN 55374
763-428-4894
Kevin J. Casserly, MAI - Principal
December 19, 2017
Amanda Othoudt, EDFP
Economic Development Director
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
APPRAISAL PROPOSAL
RE: The appraisal of 430 Main St NW, Elk River, MN 55330.
Dear Ms. Othoudt:
Thank you for asking me to prepare this proposal to appraise this property. The purpose of the
appraisal is to provide you an opinion of the market value of the property. The intended use of
the appraisal is for buying purposes. The intended user of the appraisal is the City of Elk River.
The appraisal would be prepared in an appraisal report format which for this appraisal means that
I would detail the data, analyses, and conclusions that are significant to the value opinion.
The effective date of the appraisal would be the date of my inspection of the property. As part of
my preparation before inspecting the property I would discuss with the owner any concerns he
has about tenants learning of the purpose of my inspection. After this discussion, I would convey
these concerns to you. Should they add uncertainty to the market value opinion, you and I can
discuss such uncertainty at that time. For example, if the owner does not want me to inspect the
interior of the house, I may have to make an extraordinary assumption about its features and
current condition.
Page 2 of 4 Page 2 of 4
Amanda Othoudt
December 19, 2017
The subject property. According to the Realist Tax Service and Multiple Listing Service
websites, the subject property contains an office building which was designed as a single family
home which was built in 1920. It has / had 1,096 sf of finished area on the main floor and an
unfinished, 1,000± sf basement. The site is a corner lot which is 53 ft wide by 165 ft deep or
8,745 sf. The property is owned by Atp Investments LLC and is zoned C2, Office District. The
property has a Sherburne County property identification number of 754010130. It sold in
December 2014 for $86,000, and in 2004 for $164,900.
GOOGLE STREET VIEW DATED JANUARY 2016
– facing east to south from along Gates Ave near the northwest corner of the property–
The scope of the work for this valuation service includes:
contacting the property owner and discussing both the appraisal and the inspection with him;
inspection of the property;
review, analysis and conclusions of zoning, land use regulations, and property taxes;
research, analysis and delineation of the market for older homes on land zoned for office use
in the Elk River area;
consideration of the highest and best use of the property;
an analysis of three market values by applying the appropriate approaches to value; and
the preparation and delivery of a pdf of the appraisal report to you at
AOthoudt@ElkRiverMN.gov.
Page 3 of 4 Page 3 of 4
Amanda Othoudt
December 19, 2017
The complexity of the appraisal results from analyzing the market in Elk River for older single
family homes used as office space.
Following is a list of items that I like to get for an appraisal assignment like this one:
1) Contact information for the property owner;
2) Access to both the exterior and the interior of the property for the inspection;
3) Copies of any leases of the property;
4) The last three to five years of income statements for the property, including year to date for
2017 and / or 2018;
5) Current zoning and land use plan documents if the city’s website is not current;
6) Any information about sales, rents, expenses or capitalization rates of this property or similar
properties, including any signed purchase agreements or signed offers or signed listing
agreements for the subject;
7) Names and contact information of property owners, developers, property managers, or real
estate agents who are involved with similar properties; and
8) Any other helpful documents or information. Examples include – surveys and / or
preliminary plats with elevation lines and / or soil test results.
The appraisal will comply with the professional and ethical standards of the Appraisal Institute,
and with the 2016 – 2017 Edition of the Uniform Standards of Professional Appraisal Practice
(USPAP) of the Appraisal Foundation. I am a designated member of the Appraisal Institute.
The appraisal fee for these services is $2,250 which is due and payable upon my completion of
the report.
My fees are not contingent upon the estimates of market value that will be made.
Please sign the authorization below and return it to me digitally or via US mail.
The appraisal will be completed within two weeks of my receipt of your authorization.
Page 4 of 4 Page 4 of 4
Amanda Othoudt
December 19, 2017
Thank you again for asking me to prepare this proposal.
Please call me at 763-428-4894, if you have any questions, comments or concerns.
Very truly yours,
CASSERLY APPRAISALS
Kevin J. Casserly, MAI - Principal
Certified General Real Property Appraiser
Minnesota License #4002724, expires August 31, 2018
Authorization to Proceed:
date:
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