MISC APPEAL EMAILSMiller, Jessica
From: Allard, Tina
Sent: Tuesday, April 28, 2020 8:51 AM
To: Miller, Jessica
Subject: FW: [EXTERNAL] Board of Appeal for property tax at 507 Oxford Av, NW, Elk River MN
Attachments: 229C APPRAISAL.pdf
Importance: High
From: Portner, Cal <CPortner@ElkRiverMN.gov>
Sent: Monday, April 27, 2020 5:22 PM
To:'Krista.thoe@co.sherburne.mn.us'<Krista.thoe@co.sherburne.mn.us>; 'Beth. boysen@co.sherburne.mn.us'
<Beth.boysen@co.sherburne.mn.us>;'Michelle.moen@co.sherburne.mn.us' <Michelle.moen@co.sherburne.mn.us>;
Allard, Tina <tallard@ElkRiverMN.gov>
Subject: FW: [EXTERNAL] Board of Appeal for property tax at 507 Oxford Av, NW, Elk River MN
Importance: High
From: Ron Touchette <cn(rccksclidcs:c rn>
Sent: Monday, April 27, 2020 5:17 PM
To: Portner, Cal <C[ ortn_ r(2. IklF iverlMN. gov>
Cc: Ron Touchette <cn(rckslidcs:ccrn>
Subject: [EXTERNAL] Board of Appeal for property tax at 507 Oxford Av, NW, Elk River MN
Importance: High
Ca I,
I wish to appeal the TMV for pay 2021 on my property located at 507 Oxford Av, Elk River.
The valuation should be $50,000.00 for the building (condition and circumstances has not changed from last
year.) and $31,135 for the land (per the State of MN supplied Appraisal effective date 1-16-20.
Total TMV should be $81,135.00.
Thank you!
Ronald J. Touchette
CEO
Direct: 612.435.7777
Cell: 612.685.0373
ron@rocksolidcos.com
ROCK SOLID Companies
7078 East Fish Lake Road
Maple Grove, MN 55311
www.rocksolidcos.com
RIGHT OF WAY ACQUISITION
APPRAISAL REPORT
S.P.:
7102-135RW
C.S.:
7102 (10=3) 902
Parcel:
7102-902-229C
Owner:
Ronald J. & Lori Touchette
Parcel Address:
507 Oxford Avenue NW
Elk River, MN 55330
Effective Date:
January 16t'`, 2020
Eric M. Montague
Appraiser:
Certified General Real Property Appraiser
MN License #20513633
M11
DEPARTMENT OF
TRANSPORTATION
APPRAISAL SUMMARY AND CONCLUSIONS
BEFORE & AFTER VALUATION - PARTIAL ACQUISITION
S.P.: 7102-135RW
C.S.: 7102 (10=3) 902
Owner: Ronald J. & Lori Touchette
Address: 507 Oxford Avenue NW
Highway:
Parcel:
U.S. T.H. 10
7102-902-229C
City: Elk River State: MN Zip: 55330
County: Sherburne
Zoning: R-lc; Single Family Residential
Present Use: Single Family Residential H & B Use: Residential
Land Area: 6,354 Square Feet Lot Size: N/A
Fee Simple Acq.: None
Easement Acq.: 699 Square Feet (Temporary Easement)
Leasehold Interest: None
Other: None
The land value(s) are supported by the comparables found in the following:
Parcel: Sales Book: Attached:
As Comparables: 1-6
Total Compensation: $9,200.00
Effective Date: January 161h, 2020
Completion Date: March 19th, 2020
Appraiser: Eric M. Montague
MN License #: 20513633
X
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 2
ALLOCATION OF DAMAGES
Land Acquired:
Type
# Units
Acre/S .Ft.
Price/Rate
Value
None
$0
Total:
$0
Easements Acquired:
Description
Value
Temporary Easement; 699 S .Ft. expires 12/1/2025
$1,476
Total:
$1,476
Improvements Acquired:
Description
Value
Site Improvements: Concrete Driveway
$1,370
Total:
$1,370
Damages to Remainder:
Description
Value
Severance Damages — Rent loss
$6,300
Cost to Cure — None
$0
Access Control —None
$0
Total:
$6,300
Total $ 9,146
Rounded to $ 9,200
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 3
RECONCILIATION OF BEFORE AND AFTER VALUES
Estimate of Market Value (Before Acquisition)
Subject Property
Area
Market Value Rate
Value Extension
Land
6,354 Sq.Ft.
$4.90/Sq.Ft.
$31,135
Improvements
Not Impacted
$0
Total Before Acquisition Market Value
$31,135
Estimate of Market Value (After Acquisition)
Subject Property
Area
Market Value Rate
Value Extension
Land
6,354 Sq.Ft.
$4.90/Sq.Ft.
$31,135
Improvements
Not Applicable
$0
Less:
Temporary Easement; 699 Sq.Ft. expires 12/1/2025
($1,476)
Acquired Site Improvements
($1,370)
Severance Damages
($6,300)
Total After Acquisition Market Value
$21,989
RECONCILIATION
Market Value Before Acquisition
$31,135
Market Value After Acquisition
$21,989
Difference:
$9,146
FINAL ESTIMATE OF COMPENSATION
Rounded To
$9,200
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 4
TABLE OF CONTENTS
COVERPAGE................................................................................................... 1
VALUATION SUMMARY................................................................................... 2
TABLE OF CONTENTS....................................................................................... 5
CERTIFICATE OF APPRAISER................................................................................. 6
DEFINITIONS OF SIGNIFICANT TERMS....................................................................... 7
APPRAISAL PURPOSE/IDENTIFICATION REQUIREMENTS ............................................. 8
HYPOTHETICAL CONDITIONS/EXTRAORDINARY ASSUMPTIONS ............................... 9
USPAP COMPLIANCE/COMPETENCY PROVISION ................................................ 9
LEGAL DESCRIPTION OF ACQUISITION/SUBJECT PROPERTY ..................................... 10
HISTORY OF OWNERSHIP.............................................................................. 10
PARCELSKETCH........................................................................................... 11
STATE, REGIONAL & LOCAL MAPS.................................................................. 12
SUBJECT PHOTOGRAPHS & AERIAL MAP................................................................. 13
SCOPEOF WORK........................................................................................... 19
EXPOSURE/MARKETING TIME ESTIMATE......................................................... 20
DESCRIPTION OF COMMUNITY.............................................................................. 21
DESCRIPTION OF NEIGHBORHOOD.........................................................................
MARKET CONDITIONS....................................................................................
ZONING INFORMATION..................................................................................
HIGHEST AND BEST USE/LARGER PARCEL..............................................................
PROJECT DESCRIPTION..................................................................................
DESCRIPTION OF SUBJECT PROPERTY BEFORE ACQUISITION .............................
DESCRIPTION OF ACQUISITION.......................................................................
DESCRIPTION OF SUBJECT PROPERTY AFTER ACQUISITION ...............................
SALES COMPARISON APPROACH.....................................................................
ADJUSTMENT ANALYSIS......................................................................
COMPARABLE SALE LOCATION MAP ......................................................
COMPARABLE SALE ADJUSTMENT GRID .................................................
RECONCILIATION OF VALUE (BEFORE ACQUISITION) ...............................
RECONCILIATION OF VALUE (AFTER ACQUISITION) .................................
VALUATION OF EASEMENTS/IMPROVEMENTS..................................................
SEVERANCE DAMAGES TO REMAINDER...........................................................
RECONCILIATION OF BEFORE/AFTER VALUES ..................................................
ALLOCATION OF DAMAGES...........................................................................
STATEMENT OF ASSUMPTIONS & LIMITING CONDITIONS ..................................
QUALIFICATIONS OF APPRAISER....................................................................
GO9 ►15 u
CERTIFICATE OF TITLE..................................................................................
SUBJECT MARKET DATA................................................................................
BUILDING SKETCH........................................................................................
COMPARABLE DATA SHEETS..........................................................................
27
28
29
30
32
33
36
37
37
38
40
41
42
43
44
45
48
49
50
52
55
57
60
61
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 5
CERTIFICATE OF APPRAISER
S.P. 7102-135RW
C.S. 7102 (10=3)902
I hereby certify:
Parcel 7102-902-229C
That on January 16u, 2020. I have personally inspected the property herein appraised and that I have afforded the
property owner/representative the opportunity to accompany me during an inspection. Such opportunity was afforded to
Mr. Ronald Touchette on November 276, 2019and the owner/representative (accepted/declined) the invitation to
accompany me during the inspection and was present at the time of inspection. I have also personally made a field
inspection of the comparable sales relied upon in making this appraisal and said photos are retained in the appraiser's
work file. The subject is represented by the photographs contained herein
I further certify that to the best of my knowledge and belief:
• The statements of fact contained in the appraisal herein above set forth are true, and the information upon which the
opinions expressed therein are based as correct.
• The reported analyses, opinions, and conclusions are limited only by the reported assumptioms and limiting
conditions and we my personal, impartial and unbiased professional analyses, opinions and conclusions.
• That I understand that such appraisal is to be used in connection with the acquisition of real property for right of
way for a transportation improvement to be constructed by the acquiring agency, and that such appraisal has been
made in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), appropriate State
laws, regulations, policies and procedures applicable to appraising of right of way for such purposes, and that to the
best of my knowledge no portion of the value assigned to such property consists of items which are non-
compensable under the established State law.
• That in making this appraisal, I have disregarded any increase or decrease in the before value caused by the project
for which the property is being acquired.
• That neither my employment nor my compensation for making this appraisal and report we in any way contingent
upon developing or reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly
related to the intended use of this appraisal.
• That I have no bias with respect to the property that is the subject of this report or to the parties involved with this
assignment.
• That I have no direct or indirect present or prospective interest in the property that is the subject of this report or in
any benefit from the acquisition of such property appraised, and no personal interest with respect to the parties
involved.
• I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of
this report within the three year period immediately preceding acceptance of this assignment.
• That no one provided significant real property appraisal assistance to the persons signing this certification.
• That I will not reveal the findings and results of such appraisal to anyone other than the proper officials of the
acquiring agency until authorized by agency officials to do so, or until I am required to do so, by due process of law,
or until I am released from this obligation by having publicly testified as to such findings.
• That my independent opinion of the fair compensation for said parcel, as of the 16' day of January 2020 is
$9.200.00 and that the conclusion set forth in this appraisal was reached without collaboration or direction as to
value.
2- March 19th, 2020
Eric M. Montague Signature/Report Date
MN Certified General Real Prop Appraiser
License No. 20513633; State of MN through August 31, 2020
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 6
DEFINITIONS OF SIGNIFICANT TERMS
Throughout this report, the term "subject property" identifies the entirety of the real property owned by the
identified owner at this location. The State's partial acquisition will be identified as "the subject", "Parcel 229C",
or as the "acquisition". The term "remainder" shall refer to the property after the acquisition.
The following definitions were acquired from The Dictionary of Real Estate Appraisal, Fourth Edition, published
by The Appraisal Institute, unless otherwise indicated:
• Highest and Best Use: The reasonably probable and legal use of vacant land or an improved property,
which is physically possible, appropriately supported, financially feasible, and that results in the highest
value. The four criteria the highest and best use must meet are legal permissibility, physical possibility,
financial feasibility, and maximum value.
• Fee Simple Estate: Absolute ownership unencumbered by any other interest or estate, subject only to the
limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.
• Easement: An interest in real property that conveys use, but not ownership, of a portion of an owner's
property.
• Temporary Easement: An easement conveyed for a defined time period.
• Exposure Time: The estimated length of time the property interest being appraised would have been
offered on the market prior to the hypothetical consummation of a sale at market value on the effective
date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive
and open market. The overall concept of reasonable exposure encompasses not only adequate, sufficient
and reasonable time, but also adequate, sufficient and reasonable effort. Exposure time is different for
various types of real estate and value ranges and under various market conditions.
Marketing Time: The time it takes an interest in real property to sell on the market subsequent to the date
of appraisal. Reasonable marketing time is an estimate of the amount of time it might take to sell an
interest in real property at its estimated market value during the period immediately after the effective date
of the appraisal; the anticipated time required to expose the property to a pool of prospective purchasers
and to allow appropriate time for negotiation, the experience of due diligence, and the consummation of a
sale at a price supportable by current market conditions.
Larger Parcel: The "larger parcel" is defined as that tract, or those tracts, of land which possess a unity of
ownership and have the same, or an integrated, highest and best use. Elements of consideration by the appraiser in
making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the
property, unity of ownership, and unity of highest and best use.
Source: Uniform Appraisal Standards for Federal Land Acquisitions, Part III, Sec. A-14
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 7
PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to identify the Market Value for an identified partial acquisition of the subject
parcel in the condition in which it was found on January 16th, 2020 involving a right of way acquisition process for
a four -lane highway reconstruction project on Trunk Highway (TH) 10. Furthermore, determine any negative
effect (severance damage) to the value of the remaining parcel after the acquisition and to determine values and
reasonable replacement costs for items within the acquisition.
CLIENT
The client is the Minnesota Department of Transportation (MnDOT).
INTENDED USER(S)
This report is intended for use only by the named client and the client's agents involved in the acquisition process.
Use of this report by others is not intended by the appraiser. Note; the property owner is required by state statute
to receive a copy of the report; however, the property owner does not become an intended user of the report as a
consequence of disclosure requirements.
INTENDED USE
The intended use of this report is for determination of just compensation for the client's right of way acquisition
needs. There are no other intended uses of this appraisal report.
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 and knowledgeably, and assuming the price is not
affected by undue stimulus. Implicit in this definition are 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 acting in what they consider their own best interests;
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.
Source: Office of the Comptroller of the Currency (OCC); 12 CFR part 34, subpart C
EFFECTIVE DATE
The effective date of this appraisal is January 16th, 2020, which is the date of the appraiser's viewing of the subject
property. The date of the report is located on the Certificate of Appraiser page.
REPORT TYPE
Per USPAP, the report type is an Appraisal Report.
REAL PROPERTY INTERESTS APPRAISED
The subject is a partial acquisition of temporary easement from the subject property that is under fee simple
interest.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 8
HYPOTHETICAL CONDITIONS & EXTRAORDINARY ASSUMPTIONS
This appraisal is subject to a hypothetical condition. A hypothetical condition, as defined by USPAP, is a
condition, directly related to a specific assignment, which is contrary to what is known by the appraiser on the
effective date of the assignment results, but is used for the purpose of analysis.
Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic
characteristics of the subject property; or about conditions external to the property, such as market conditions or
trends; or about the integrity of data used in an analysis. A hypothetical condition may be used in an assignment
only if.
Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable
analysis, or for purposes of comparison;
Use of the hypothetical condition results in a credible analysis; and
The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions.
A before and after valuation method will be applied in this appraisal report. The subject property will be appraised
in the after condition subject to MnDOT's proposed acquisition of Parcel 229C (hypothetical condition) based on
the Parcel Sketch provided by the client. There are no other hypothetical conditions or extraordinary assumptions
associated with the development of this report.
USPAP COMPLIANCE
This valuation report was authored with the goal of compliance to the Uniform Standards of Professional Appraisal
Practice (USPAP). The Underlying Assumptions and Limiting Conditions document attached to this report
generally articulates the applicable USPAP Standards requirements.
The Before and After Appraisal method and report format utilized is consistent with USPAP Standards Rule 1 and
2 and meets the requirements set forth in Minnesota Statute 82B and the Minnesota Department of Transportation
Right of Way manual.
COMPETENCY PROVISION
This statement is made in accordance with the competency provision of USPAP.
Mr. Montague holds a Certified General Real Property Appraiser license and is a full-time staff appraiser for
MnDOT, working specifically in the realm of right of way appraisal and acquisition. Mr. Montague has extensive
experience valuing commercial, industrial and residential property types among numerous other land uses through
work experience prior to MnDOT employment, dating back to March of 2005. A summary of the appraiser's
experience, training, and education attended is found in the Addendum of this report.
The appraiser has the necessary knowledge, understanding and experience in the valuation of properties similar to
the subject. Additional competency is acquired when necessary to supplement existing knowledge to competently
value the subject property. To gain local market competency, the appraiser viewed the community, researched
sales and assessed values, and had discussions with the County Assessor, local realtors and landowners. The
appraiser has also worked in collaboration with professional peers with experience in right of way appraisal and
acquisition. The training, knowledge, experience, and efforts of the appraiser provides competency to perform this
appraisal assignment. The client, fully knowledgeable of the appraiser's abilities and experience, has assigned this
work with confidence in the appraiser's competence to perform this appraisal.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 9
LEGAL DESCRIPTION OF ACQUISITION
Parcel 229C C.S. 7102 (10=3) 902
S.P. 7102-135RW
The right to use that part of Tract A described below for highway purposes, which right
shall cease on December 1, 2025, or on such earlier date upon which the
Commissioner of Transportation determines by formal order that it is no longer needed
for highway purposes:
Tract A. Lot 1 , Block 2, W.H. Houlton's Addition to the Villlag e of Elk River.
according to the plat thereof on file and of record in the office of
the County Recorder in and for Sherburne County. Unnesota:
excepting therefrom the west 1 foot thereof; also excepting therefrom
Trunk Highway No. 10 as now located and established:
which lies easterly and northerly of the following described line: Beginning at a point on
the northeasterly line of Tract A hereinbefore described, distant 35 feet northwesterly of
the northeast corner thereof; thence southerly parallel with the easterly line thereof to an
intersection with a line run parallel with and distant 20 feet southwesterly. measured at
right angles from the tangent of the curve at said point, of said northeasterly line; thence
southeasterly along said parallel line to an intersection with said easterly line and there
terminating;
excepting therefrom the existing building situate thereon.
Source: MnDOT
LEGAL DESCRIPTION OF SUBJECT PROPERTY
Lot 1, Block 2, of W.H. Houlton's Addition to the Village of Elk River, EXCEPT the West I foot of Lot 1,
Block 2, Sherburne County, Minnesota.
Source: MnDOT Certificate of Title
HISTORY OF OWNERSHIP
The ownership history of the subject property is summarized on the Certificate of Title in the Addendum of this
report and ownership changes within the past five years are summarized below.
Grantee
Grantor
Title
Date
Document
N/A
N/A
N/A
N/A
N/A
There have been no transfers of ownership of the subject property within the past 5 years. The history of
ownership data was provided by MnDOT and is assumed truthful and complete.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 10
MDEPARTMENT OF
TRANSPORTATION
Control Section: 7102 (10=3) 902
State Project: 7102-135RW
Darner: Ronald J. Touchette
BLOCK 2
RIQH7 OF A'1 PANEL LAYOUT
County: Sherburne
Parcel Number: 229C
Sheet 1 of 2
Scale 1 inch = 50 ft.
i
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- 7t 11�ti
ZUJ
C-1
—J
2 CD
x z LU N
zE
a- Lj2 I E
+ S HE
a
f- m N D-
R I V E R f
i
5TH 5T NW _'a' T.D. IN $7Rc r—�
Layout sketch by Mike Wolpert
Created on January 15, 202
7D' T.1
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 11
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 12
PHOTOS OF SUBJECT (Taken 01/16/2020)
Parr-
t
.✓: -' - -
Photo #1; Looking N along Oxford Ave. from approx.
Photo #2; Looking S along Oxford Ave. from approx.
SE corner of subject ro ert at 5th St.
NE corner of subject ro e at TH 10
Photo #3; Looking WNW along TH 10 from approx.
Photo #4; Looking ESE along TH 10 from approx. NE
NE corner of subject ro e at Oxford Ave.
corner of subject property at Oxford Ave.
s
Photo #5; View of subject property, looking NW from
Photo #6; View of subject property, looking SW from
approx. SE corner of subject at Oxford Ave/5th St.
approx NE corner of subject at Oxford Ave/TH 10
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 13
PHOTOS OF SUBJECT (Taken 01/16/2020)
1 ,
_
•�i.
-
+s
Photo #7; View of subject home; looking NE from
Photo #8; View of subject home; looking SE from
approx. SW corner of subject
a rox. NW corner of subject
i
x�.
Photo #9; View of subject garage (rear), looking NE
Photo #10; View of subject garage, looking W from
from west side of property at NW corner of home
drivewa /TH 10 r/w
,t
Photo #11; View of breezeway entrance between home
Photo #12; View of existing TH 10 r/w line; NE corner
and garage; view of west TE limits (yellow arrow);
of garage encroaches on existing r/w; pink ribbons =
building excluded
existing r/w line; yellow = TE W corner)
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 14
PHOTOS OF SUBJECT (Taken 01/16/2020)
Photo #13; Interior view of subject garage
Photo #14; Interior view of subject garage; observe
si nificant holes in roof
Photo #15; Interior view of subject garage; observe
Photo #16; Interior view of subject garage
si nificant holes in roof
Awl
k
`ti
K
Photo #17; View of existing TH 10 r/w line (pink) and
Photo #18; View of proposed location of new driveway
limits of TE (yellow); red line = proposed north
= red line; TE = yellow line
driveway edge
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 15
PHOTOS OF SUBJECT (Taken 01/16/2020)
t'
n ,
Photo #19; Looking W from Oxford Ave. along
Photo #20; Looking E from subject garage toward
sub ect's existing driveway; pink line = existing r/w
Oxford Ave.; pink line = existin r/w
IL
Photo #15; View of east end of proposed driveway
Photo #16; View of proposed driveway; looking S from
turnaround at approx. east edge of existing Oxford Ave
turnaround area; lookin toward 5tb St.
1,
Photo #18; View of proposed driveway; looking NW
Photo #17; View of proposed driveway; looking N from
S end of driveway at 5th St.; looking toward TH 10
from existing Oxford Ave.; where driveway ties into
existing subject driveway
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 16
Source: Google Earth
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 17
NERIAL VIEW IM IHE AL VU1N111V1N
DEPARTMENT OF
TRANSPORTATION
Control Section: 7102 (10=3) 902
State Project: 7102-135RW
Owner: Ronald J. Zouchette
RIGH7 OF WAW PARCEL LAYOUT
Parcel Number: 229C
County: Sherburne Sheet 2 of 2
Scale 1 inch = 50 ft.
ARL
Laycut sketch by Mike Wc•17e_-t Created -Dn January 15, 202-3
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 18
SCOPE OF WORK
General Statements: USPAP requires a thorough discussion and disclosure of the scope of work.
Scope of work is defined as being the extent to which the property is identified and inspected, the extent to which
tangible property is inspected, the type and extent of data researched, and the types and extent of analysis applied
to arrive at opinions or conclusions. The scope of work is acceptable when it is consistent with the expectations of
the party/parties who are regularly intended users of similar assignments and when it meets or exceeds what an
appraiser's peers' actions would be in performing the same or a similar assignment. A properly conducted
appraisal and its report must be logical, unbiased, credible, and defendable.
The scope of work of this appraisal involved the following steps:
1
Identify the problem:
What is the total just compensation for the acquisition?
a) What is the market value of the acquisition as of the effective date?
b) Does the acquisition diminish the market value of the remainder? If
es, what is the monetary amount of damages?
2
Identify the subject and its
MnDOT supplied many items to identify the subject, including mapping,
detailed information:
certificate of title, afield title report, and legal description of subject.
The property was inspected and photographed. Tax and Assessors'
records were collected. The appraiser interviewed landownerlre .
3
Determine the Highest and
A review of the neighborhood and local market was made. All property
Best Use of the subject
characteristics and aspects of Highest and Best Use were considered,
analyzed, and reported.
4
Define the proper appraisal
All three Approaches to value (Cost, Income, and Sales Comparison)
methods to be used
were considered for use. The Sales Comparison Approach was
considered to be the only appropriate approach to properly value the
partial acquisition. The Cost and Income Approaches were utilized in the
estimation o site improvement values and severance damages.
5
Gather the data necessary to
Researched and verified local comparable sales information from
solve the problem.
trustworthy sources.
6
Apply the information into the
Analyzed the data, summarized, and reconciled
methods and make conclusion
7
Report the information and the
Produced the written report
conclusion with clarity
SPECIFIC SCOPE OF WORK STATEMENTS
Identification of Subject:
The client supplied pertinent information regarding the project, the subject property, and the partial acquisition
proposed. Pertinent information included numerous items including: a certificate of title, a field title interview
report, county property tax information, a parcel sketch, area computations, and maps of the subject and the
project. Other maps and information were obtained from the City of Elk River, Sherburne County departments and
website, and independent online sources.
Inspection of the Subject:
The appraiser initially viewed the subject property and acquisition on January 16th, 2020. The appraiser
interviewed the owner -representative, Mr. Ronald Touchette on November 27th, 2019, who was afforded the
opportunity to accompany the appraiser on an inspection of the subject property. The owner/representative
accepted the invitation to attend the inspection and was present at the time of inspection. The current tenant was
also present at the time of inspection.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 19
The appraiser completed a full interior and exterior inspection of the subject property and improvements. All other
subject property information was gathered from available county records, GIS and other data sources, as necessary.
A MnDOT survey crew located and marked the existing right of way, proposed temporary easement and proposed
driveway location to aid the appraiser and property owner in identifying the proposed acquisition area. Note,
interior photos of the subject home were taken but are retained in the appraiser's work file.
Highest and Best Use of the Subiect:
A logical and thorough analysis of the subject property's highest and best use is vital to the value conclusion.
During this analysis process, certain logical deductions were made. This method is further discussed under the
Highest and Best Use section of this report.
Valuation Process:
The three valuation approaches — Cost Approach, Sales Comparison Approach, and Income Approach — were each
considered for use. The subject property is improved with a single family rental residence; however, the proposed
acquisition will not directly impact the subject improvements; therefore only the subject land will be valued in the
appraisal. With no building considered in the valuation, the Cost Approach to value is not applicable. As -if vacant
residential land similar to the subject is not typically leased in this market area; therefore, the Income Approach to
value is not applicable in the development of the site value. Only the Sales Comparison Approach was used to
determine market value of the subject site in the before and after conditions. The Sales Comparison Approach is
typically the most reliable indication of value for partial acquisitions of land only.
Income Approach techniques were utilized in the development of severance damage estimates due to the current
income producing rental use of the subject property. Cost Approach techniques were utilized in the estimation of
site improvement values.
Data Research:
Sales data for the Sales Comparison Approach was collected by research of information from the multiple listing
service (MLS), information available at the Sherburne County Assessor's departments and the Minnesota Revenue
eCRV website. Discussion with the Assessor's personnel corroborated that the information obtained there had been
verified, as much as possible. These sources are considered reliable and their data accurate. Comparable sales were
viewed by the appraiser. The properties determined to be most comparable to the subject property were selected
and included in the report.
MARKETABILITY AND ESTIMATED MARKETING/EXPOSURE TIME
Based on interviews with local market participants and available sales data; improved sales of properties similar to
the subject property are estimated to require a marketing time of approximately 3 months which includes
consideration for the current winter marketing season. The estimate of exposure time is considered to be the same
or less than the marketing time, estimated at 3 months or less. There is currently only a 2.7 month supply of single
family housing in the Elk River market, which directly influences the short marketing times.
Vacant residential land within the subject's market of Elk River is estimated to require a marketing and exposure
time of approximately 3 months; say 2 to 4 months. The marketing and exposure time estimates are based on a
sale study utilizing the Northstar MLS that was performed within the subject's Elk River market area for similar
single family residential vacant land properties to the subject. A total of 12 sales were recorded over the past three
years with a range in marketing time from 7 days on market (DOM) to 1,316 DOM; however, the high end of the
range was an outlier. The adjusted high end of the range is 228 DOM. The adjusted mean marketing time was 87
days and the median was 82 days, indicating a typical marketing time of approximately 3 months, say 2 to 4
months. There appears to be a stable balance of available land on the market.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 20
DESCRIPTION OF THE COMMUNITY
The subject property is located in Sherburne County, Minnesota within the City of Elk River. Elk River is located
approximately 35 miles NW of Minneapolis/St. Paul and 35 miles SE of St. Cloud. Elk River is located just
outside the 7-county metro area. U.S. Highways 10 and 169 are the main highway arteries serving the area.
Minneapolis -St. Paul International Airport is located within 40 miles. Elk River is also served by the Northstar
Commuter Rail system that provides mass transit opportunities to the Twin Cities.
Elk River boasts an available and productive workforce which helps make this area a leader in job creation.
Employment opportunities continue to keep pace with significant population growth. This is due in part to a
diverse group of businesses and industries located in Elk River. Most significantly, for a community of its size, Elk
River enjoys one of the lowest overall tax rates in the entire state of Minnesota.
Source: Sherburne County
The subject property is within the Elk River School District #728 that is a complete K-12 school district. The
district includes 10 elementary schools, five middle schools and four high schools with a total enrollment of over
13,000 students, making it the 8th largest district in the state. The nearest location for secondary education is in St.
Cloud and Minneapolis.
The population of the City of Elk River was 22,974 as of the 2010 census, which is a 39.7% increase over the 2000
census of 16,447. Sherburne County has a population of 88,499 as of the 2010 census, representing a 37.4%
increase over the 2000 census of 64,417. The city and county have experienced explosive growth over the past six
decades, well outpacing the state. This is likely due to the pattern of urban sprawl.
I]]=
JIL Population History
City of Elk River
Sherburne County
Minnesota
Year
Population
% Change
Population
% Change
Population
% Change
1880
635
---
3,855
88.0%
780,773
77.6%
1890
679
6.9%
5,908
53.3%
1,310,283
67.8%
1900
831
22.4%
7,281
23.2%
1,751,394
33.7%
1910
859
3.4%
8,136
11.7%
2,075,708
18.5%
1920
983
14.4%
9,651
18.6%
2,387,125
15.0%
1930
1,026
4.4%
9,709
0.6%
2,563,953
7.4%
1940
1,245
21.3%
10,456
7.7%
2,792,300
8.9%
1950
1,399
12.4%
10,661
2.0%
2,982,483
6.8%
1960
1,763
26.0%
12,861
20.6%
3,413,864
14.5%
1970
2,252
27.7%
18,344
42.6%
3,804,971
11.5%
1980
6,785
201.3%
29,908
63.0%
4,075,970
7.1%
1990
11,143
64.2%
41,945
40.2%
4,375,099
7.3%
2000
16,447
47.6%
64,417
53.6%
4,919,479
12.4%
2010
22,974
39.7%
88,499
37.4%
5,303,925
7.8%
2016
Est.
24,364
6.1%
93,528
5.7%
5,576,606
2017 Est.)
5.1%
Source: U.S. Decennial Census
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 21
SHERBURNE COUNTY MAP
51
County Profile Source: Wikipedia
Sherburne County is a county in the U.S. state of Minnesota. At the 2010 census, the population was 88,499. The
county seat is Elk River. Sherburne County is included in the Minneapolis -St. Paul -Bloomington, MN -WI
Metropolitan Statistical Area.
Geography
According to the U.S. Census Bureau, the county has a total area of 451 square miles (1,170 km2), of which 433
square miles (1,120 km2) is land and 18 square miles (47 km2) (4.0%) is water.
Demographics
At the 2000 census, there were 64,417 people, 21,581 households and 16,746 families residing in the county. The
population density was 148 per square mile (57/km2). There were 22,827 housing units at an average density of 52
per square mile (20/km2).
There were 21,581 households of which 44.90% had children under the age of 18 living with them, 66.20% were
married couples living together, 7.50% had a female householder with no husband present, and 22.40% were non -
families. 15.70% of all households were made up of individuals and 5.20% had someone living alone who was 65
years of age or older. The average household size was 2.91 and the average family size was 3.27. 30.90% of the
population were under the age of 18, 9.60% from 18 to 24, 33.90% from 25 to 44, 18.40% from 45 to 64, and
7.10% who were 65 years of age or older. The median age was 31 years. For every 100 females there were 104.30
males. For every 100 females age 18 and over, there were 103.20 males.
The median household income was $57,014 and the median family income was $61,790. Males had a median
income of $41,601 and females $27,689. The per capita income for the county was $21,322. About 2.30% of
families and 4.40% of the population were below the poverty line, including 3.50% of those under age 18 and
10.10% of those age 65 or over.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 22
CITY of ELK RIVER MAP
trs
Elk River
as
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Otsego
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10,
Dayton ,o
Go ale
Source: Google maps
City Profile Source: Wikipedia
Elk River is a city in Sherburne County, Minnesota, United States, about 34 miles northwest of Minneapolis. It is
situated at the confluence of the Mississippi and Elk Rivers. The population was 22,974 at the 2010 census. It is
the county seat. The city's population exceeded 20,000 as of year 2005. U.S. Highways 10 and 169 and State
Highway 101 are three of the main routes in Elk River, and a station on the Northstar Commuter Rail line to
downtown Minneapolis is located in the city. Elk River is located 33.2 miles northwest of Minneapolis and 37.4
miles southeast of St. Cloud.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 23
History
The hardwood -forested hills in which Elk River is situated were pushed up by the last glacier that advanced across
Minnesota. These hills are made up of coarse materials which is the reason gravel mining is so prevalent in Elk
River, and also the reason much of the area is not considered good farmland.
To the south of Elk River lies the prairie. This natural boundary between the prairie and woods was also a
boundary between Indian nations. Two battles between the Dakota and Ojibwe took place where the Elk River
meets the Mississippi in 1772 and 1773.
Rivers
The Elk River Water Tower was placed on the National Register of Historic Places in 2012.
Zebulon Pike passed through the area on his 1805 exploration of the upper Mississippi River and named the Elk
River after the herds of elk he saw in the area. David Frederic Faribault, son of French-Canadian fur trader Jean -
Baptiste Faribault built a trading post near the conjunction of the Elk and Mississippi Rivers in 1846, which he
later sold, in 1848, to French trader and guide Pierre Bottineau. The trading post stood on a bluff just east of the
present day bridge across the Elk River on main street. Bottineau also built a hotel in 1850 on the bank of the
Mississippi about a half mile below the mouth of the Elk. The two rivers and the Red River Trail, which passed
nearby, made this area a good location for commerce.
A large number of early settlers came from Maine and nearly all of them were experts in lumbering. In 1851, Ard
Godfrey, a native of Orono, Maine, saw the potential of the water power of the Elk River and built a dam and a
sawmill. His dam created the first lobe of Lake Orono (called the Mill Pond), which extended from the present day
dam to Orono Cemetery Point. In 1855, the area by the dam was platted and the town of Orono (known as Upper
Town) was created.
In the latter half of the 19th century, agriculture and dairy farming replaced lumber as the base of Elk River's
economy. Grist mills and a starch factory, which took advantage of the potato fields to the west, were built.
The Orono -Elk River area continued to grow until by 1860 it had reached a population of 723 people. These early
settlers typically came from New England. Elk River's population continued to grow following a slow period
caused by the civil war. The majority of people moving to Elk River by that time were from Northern Europe.
The village of Elk River was platted in 1865, replatted in 1868, and when incorporated in the winter of 1880-1881,
included both Orono and Elk River. By 1870, Elk River swelled to a population of 2,050 and became the county
seat in 1872. Around this same time, the railroads replaced the rivers as the main focus of transportation and the
Lower Town (the present day historic downtown area) replaced Upper Town as the focus of commerce.
The Orono Dam was destroyed by an ice storm in 1912, but hydropower gave a new incentive to dam the Elk
River in 1915. This new dam created the four lobes of Lake Orono as we know it today. In 1916, the Village of Elk
River received electricity for the first time. The entire township of Elk River would not get electricity until after
World War II.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 24
Transportation
Charles Babcock, a native son of Elk River and the first Commissioner of Highways for the state, had a visionary
plan to "get Minnesota out of the mud." His plan to create a network of paved roads became a model for the rest of
the nation and the Jefferson Highway (now Highway 10) became one of the first paved roads in the state. Highway
10 used to cross the Elk River over the dam bridge, but was rerouted to its present location shortly after World War
II.
Jackson Avenue used to be Highway 169. For years, the intersection of this road and Highway 10 was the only one
with a stoplight in Elk River and on major travel weekends, traffic would back up half way to Anoka. Work on
Highway 169 to bypass Elk River began in 1961. Work on a new route for Highway 101 between Rogers and Elk
River began in 1968.
In 1974, the Village of Elk River changed to the City of Elk River. In 1978, the City of Elk River and the township
of Elk River were consolidated to create one unit known as the City of Elk River as it exists today. The result was
one of the largest land -based cities in the state of Minnesota, at 44 square miles.
Besides transportation, energy has always played a significant role in shaping Elk River. The first rural nuclear
power plant in the United States went online in 1960 as Great River Energy's (GRE) site in Elk River. It was meant
only as a demonstration site and was dismantled after several successful years of operation.
The City of Elk River is a busy city when it comes to traffic, particularly on weekends in the summer and fall as
vacationers and hunters head north to their cabins.
U.S. Highways 10 and 169 have their northwest juncture in Elk River, with the two highways concurrent for 12
miles until Anoka to the southeast. U.S. 10 continues northwesterly toward St. Cloud, and U.S. 169 continues due
north toward Mille Lacs Lake from Elk River.
Minnesota Highway 101 has its northern terminus at the U.S. 10 / U.S. 169 split in Elk River, and is a major route
connecting these highways with Interstate 94, seven miles to the south.
Many residents of Elk River commute to the Twin Cities daily for work; it is roughly a 40-mile drive to
Minneapolis. Elk River Station is served by the Northstar Commuter Rail line connecting the northwest suburbs
and downtown Minneapolis; the line opened in November 2009.
For travel within the city, there is an on -demand transportation service available from Tri-County Action Program
for Sherburne County residents.
Energy
In the late 1980s, GRE's power plant was converted to burn refuse -derived fuel. This innovative source of energy
was one factor that helped Elk River receive the designation of "Energy City" by the Minnesota Environmental
Initiative in October 1997. As Energy City, Minnesota's energy industries demonstrate cutting edge renewable and
energy efficient technologies in Elk River.
By the 1990s, Elk River and Sherburne County were in one of the fastest growing corridors in the state and in the
country. This population growth and the area's high commuter rate factored into the ultimate approval and
implementation of the Northstar Commuter Rail service from Minneapolis to Big Lake, which began service on
November 16, 2009.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 25
Geog_raphy
According to the United States Census Bureau, the city has a total area of 43.82 square miles (113.49 km2); 42.29
square miles (109.53 km2) is land and 1.53 square miles (3.96 km2) is water. The city's latitude and longitude are
45.313601' N and 93.5814' W. It is bordered on the south by the Mississippi River.
Demographics
2010 census
As of the census of 2010, there were 22,974 people, 8,080 households, and 6,050 families residing in the city. The
population density was 543.2 inhabitants per square mile (209.7/km2). There were 8,542 housing units at an
average density of 202.0 per square mile (78.0/km2).
There were 8,080 households of which 42.1 % had children under the age of 18 living with them, 6 1. 1 % were
married couples living together, 9.5% had a female householder with no husband present, 4.3% had a male
householder with no wife present, and 25.1% were non -families. 19.6% of all households were made up of
individuals and 7.6% had someone living alone who was 65 years of age or older. The average household size was
2.76 and the average family size was 3.18.
The median age in the city was 34.9 years. 28.5% of residents were under the age of 18; 7.7% were between the
ages of 18 and 24; 29.5% were from 25 to 44; 24.9% were from 45 to 64; and 9.3% were 65 years of age or older.
The gender makeup of the city was 50.2% male and 49.8% female.
2000 census
As of the census of 2000, there were 16,447 people, 5,664 households, and 4,400 families residing in the city.
Recent estimates show the population at 21,329 as of 2005. The population density was 385.5 people per square
mile (148.9/km2). There were 5,782 housing units at an average density of 135.5 per square mile (52.3/km2).
There were 5,664 households out of which 45.5% had children under the age of 18 living with them, 64.7% were
married couples living together, 9.2% had a female householder with no husband present, and 22.3% were non -
families. 17.2% of all households were made up of individuals and 7.0% had someone living alone who was 65
years of age or older. The average household size was 2.85 and the average family size was 3.24.
In the city, the population was spread out with 31.3% under the age of 18, 8.5% from 18 to 24, 33.9% from 25 to
44, 18.3% from 45 to 64, and 8.0% who were 65 years of age or older. The median age was 32 years. For every
100 females, there were 100.9 males. For every 100 females age 18 and over, there were 96.8 males.
The median income for a household in the city was $58,114, and the median income for a family was $65,471.
Males had a median income of $43,230 versus $30,023 for females. The per capita income for the city was
$21,808. About 2.5% of families and 3.2% of the population were below the poverty line, including 2.9% of those
under age 18 and 4.6% of those age 65 or over.
Unemployment Statistics
Sherburne County
Minnesota
Labor force
52,687
3,119,177
Employed
50,507
3,010,258
Unemployment Rate
of SeasonallyAdjusted)4.1
o
/0
0
3.5/o
Source: US Bureau of Labor & Statistics; December 2019
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 26
DESCRIPTION OF THE NEIGHBORHOOD
Describing and defining the neighborhood of a property is a primary factor in the appraisal process. The
neighborhood discussion reveals important characteristics of conformity, utility, and market. During the valuation
process, sales of comparable properties within the neighborhood will ideally be found and have characteristics
similar to the subject.
The City of Elk River is an expansive community that covers 44 square miles. Much of the development activity
is located in the south central portion of the city, along U.S. Highways 10 and 169 as well as the Mississippi River.
The outlying areas of the city are mainly comprised of larger acreage residential properties, industrial uses and
undeveloped land.
The subject property is located in an older platted residential neighborhood within the heavily developed west
central portion of the city along TH 10. Trunk Highway 10 is an arterial thoroughfare that includes both
commercial and residential use properties within the immediate area. The downtown sector of Elk River is located
approximately three blocks southeast of the subject. The Highway 169/10/101 interchange is located
approximately 1.5 miles southeast. Schools and parks are located near the subject in addition to many dining,
entertainment and shopping opportunities. Most of the city's newest development is along Highway 169.
The neighborhood for the subject property generally includes those properties within the city limits of Elk River;
however, the largely rural areas on the north and west ends of the city are not included. Land uses within the
neighborhood generally include 1-4 family residential, multi -family, commercial, industrial, public, and some
timber/agricultural uses. Most commercial use properties are located along the arterial routes of Highway 169 and
10. The neighborhood area is entirely within Sherburne County and within the Elk River School District. A map
of the approximate neighborhood area utilized in this analysis is included below.
y
Source: Northstar MLS
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 27
MARKET CONDITIONS
Conversations with local market participants including the county assessor and local real estate agents, as well as
additional market analysis revealed market conditions for vacant residential lots less than one acre in size in the
Elk River market area have been increasing over the past three years. Market and county data have indicated
increases of approximately 6.6% per year from 2017 through September 2019. This data does not include water
fronting properties or commercial/industrial zoned properties.
Sales activity is limited based on MLS data, with few sales on an annual basis. Marketing times are typically
around three months. MLS data indicates a current +/- 20-month supply of available residential lots.
A study of improved single family residential properties within the subject's market area over the past three years
has revealed the following:
• Average sale prices have increased steadily over the past three years, with a current year over year increase
of 5.5% with an average sale price of $282,665. The median sale prices have also indicated similar trends
with a reported increase of 4.0% over the past year and current median sale price of $273,000.
• The average and median marketing times have fluctuated over the past three years with an overall decline;
however, marketing times have generally increased over the past year with a reported average DOM of 53
days and median DOM of 27 days.
• The supply appears to be low at present, with a current supply of 2.7 months. This is an improvement
from a year ago when supply was below 2 months.
• Typically there are seasonal influences with fewer sales and listings during the winter months and supply
would be expected to increase in the spring.
Source: InfoSparks
EIK Klver Average Jaces Yrlce l renas
Avempe Sales Price
w Ea RI—
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3ZlOK
SYION
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r-z6ie t-2p17 t-per6 r-2oi9
Elk River
:lk River Months Supply of Homes or Sale Trends
Months Supply of Homes for Sale
EN R—
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Source: InfoSparks
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 28
ZONING
The subject property is under the zoning jurisdiction of the City of Elk River. The following insert displays the
general areas of zoning classifications for the subject and neighboring parcels. The subject property is located
within the area classified as R-lc; Single Family Residential District.
R-I c district. This district is intended to provide single-family residences in areas with full municipal public
sanitary sewers, storm sewers, and municipal water in areas that are a continuation of existing residential
development patterns and the infilling of existing lots in established areas.
Source: City of'Elk River
The zoning district has an 11,000 square foot minimum lot size, 100 foot minimum lot width and 130 foot lot
depth requirement for corner lots with city sewer services such as the subject. Permitted uses are primarily limited
to single family dwellings. The subject property lot size does not meet the current minimum lot requirements and
is considered to be a legal, non -conforming lot of record.
The current use as a single family residential dwelling is a permitted use. The subject building setbacks do not
appear to be in compliance with zoning requirements; however, may be grandfathered in, given the old age of the
home. The subject's garage structure and shed are encroaching on existing highway right of way based on
MnDOT information. The subject is currently being rented and the appraiser assumes all appropriate rental
licenses have been obtained, as necessary.
There are no projected changes to the current land use patterns in the subject's market area in the reasonable future.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 29
HIGHEST AND BEST USE
To determine the highest and best use of a property, its physical characteristics and issues affecting its use must be
considered. These include: location, size, topography, traffic exposure, accessibility, zoning, and the local real
estate market. The process always includes the four basic premises found in the definition: physically possible,
legally permissible, financially feasible, and that results in the highest present land value.
The term Highest and Best Use is defined in the definition section of this appraisal. The highest and best use of the
subject site as vacant and as improved will be analyzed. The four tests will be applied, both to the site as if vacant
and as improved. Tests are:
What is physically possible?
2. What is legally permissible?
What is financially feasible?
4. What is maximally productive?
Highest and Best Use as if Vacant
Application of Physically Possible
The physically possible test reviews the size, shape and topography of the site. The site consists of one tax parcel
with a total area of 6,354 square feet or +/- 0.15 acres. The topography is generally level and offers adequate
drainage. The soils appear to be good based upon an inspection of the subject property and conversations with
individuals familiar with the area. The site shape is mainly rectangular and offers adequate space for most
residential uses which would find the site functionally adequate, though some improvements may require setback
variances due to the smaller, legal non -conforming size of the site. These variances are reasonable to assume due
to the grandfathered nature of the site. The physically possible test reveals that there are no serious barriers to
single family uses of the subject site as -if vacant.
Application of Legally Permissible
Application of the legally permissible test reviews the zoning of the subject property. The subject property is zoned
R-lc; Single Family Residential. The zoning is governed by the City of Elk River. A description of the subject's
zoning district from the City of Elk River is provided as follows:
R-I c district. This district is intended to provide single-family residences in areas with full municipal public
sanitary sewers, storm sewers, and municipal water in areas that are a continuation of existing residential
development patterns and the infilling of existing lots in established areas.
The permitted uses within this district are primarily limited to single family residential uses, though some
alternative permitted and conditional uses are available including; day care facilities, parks, home based
businesses, bed and breakfast, etc.
The minimum lot size in this zoning district with public sewer is 11,000 square feet with a 100 foot minimum lot
width and 130' minimum lot depth for a corner lot such as the subject. The subject's lot size does not meet the
minimum size requirements; however, the site was platted well before the current zoning and is considered a legal,
non -conforming lot of record. The legally permissible test reveals that single family residential uses, which are
permitted under the zoning ordinance, would comply with the current zoning regulations for the property as -if
vacant.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 30
Application of Financially Feasible
Because the site "as -if' vacant can only be used for residential development, application of the financially feasible
test analyzes the current market for those uses. Commercial/Industrial uses are not permitted under the zoning and
therefore would not be considered. Northstar MLS is the primary resource utilized in this analysis.
Elk River's residential market has experienced steadily increasing values over the past three years. Supply is low,
which is a common trend in many areas of the state and country, which tends to have a positive impact on values and
marketing times. New construction is also improving in the area; however, it remains limited due to increased material
and labor costs.
M"lan Sales Price
—ek ane
S190K
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SM19 14011 EI019
CJY Mier
Source:
OECUWR 2019 DECEMBER 2019
Elie River Elk ref
$273.000 9 1-4 0% $282, 51 +5_5
Median Sale Price
DEDEIIBER 2019
Elk River
Median Days on Market
Average Sale Price
DECEMBER AH9
Elk River
2.71+22.7%
Months Supply
The City of Elk River has numerous employment opportunities as well as entertainment and recreational resources that
attract residents to this area including a good K-12 school system. The location offers mass transit opportunities and is
within a reasonable commute distance to the Twin Cities.
The current single family rental market is also reported to be in good demand with a shortage of available rental
properties and strong supply of available renters.
With the expanding economy, increasing population and good demand for residential properties such as the
subject, the financially feasible test reveals no serious economic barriers to single family uses of the subject
property as -if vacant.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 31
Application of Maximally Productive
Highest and Best Use as Vacant
The maximally productive use provides for a correlation of the three previous tests and concludes that a single
family dwelling under the current zoning, which would take advantage of the location of the subject site, would
represent the highest and best use of the subject site as -if vacant as of the effective date.
Highest and Best Use as Improved
The subject property is improved with a single family residential home with attached garage. The site is of
adequate size to accommodate the current uses of the property with a marketable site size and an appealing setting
adjacent to a park area and close proximity to downtown Elk River. The improvements are a permitted use under
the zoning and are assumed to meet all zoning requirements or are grandfathered. The improvements have a
functional design with fair quality and fair to average condition and would be appealing to the current residential
market as well as the rental market and contribute to overall property value.
The value of the land, as -if vacant, less demolition expenses would not exceed the improved value of the property,
therefore, the current use should continue. The maximally productive use provides for a correlation of the three
previous tests and concludes that the subject's single family dwelling would represent the highest and best use of
the subject site as -improved as of the effective date. The improvements meet the four requirements for Highest
and Best Use.
LARGER PARCEL
The subject property is comprised of one tax parcel. The subject's "larger parcel" is equivalent to the MnDOT
parcel area of 6,354 square feet.
PROJECT DESCRIPTION
A four -lane highway reconstruction project with ADA sidewalk improvements involving US Trunk Highway 10,
through the City of Elk River is planned for 2021. The project includes a highway reconstruct from Xenia Ave NW
to 4"' St NW with new road grade and surface, intersection improvements with access control changes, new
curbs/gutters, storm sewer and sidewalks. A paved multi -use trail will be constructed along the south side of
Highway 10 as part of the project.
While most of the MnDOT portion of the project will occur within the present highway right of way, the redesign
and replacement of pedestrian sidewalks that meet American Disabilities Act (ADA) design standards is the
responsibility of MnDOT. The sidewalk/trail construction requires some temporary acquisitions from abutting
property owners.
Note; MnDOT is responsible for all costs of the MnDOTproject and will not be assessing costs from landowners.
However, there may be specific items requested and paid for by the city government.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 32
DESCRIPTION OF SUBJECT PROPERTY BEFORE ACQUISITION
SITE DESCRIPTION
Location
The subject property is located within the city limits of Elk River in Sherburne County, Minnesota. The address is
507 Oxford Avenue NW, Elk River, MN 55330. It is assigned parcel ID number (PIN) of 75-410-0210 by
Sherburne County. The legal description was provided previously within the report. The subject is located at the
SW corner of the intersection of TH 10 and Oxford Avenue NW, and the NW corner of Oxford Avenue NW and
5th Street NW.
The immediately adjacent properties to the subject property include single family residences to the west, single
family residential to the south across 5th Street and single family to the north across TH 10. There is a public park
area (veteran's memorial) to the east across Oxford Avenue. There are some commercial uses in the immediate
area along TH 10, with more further to the southeast.
Size
The subject site is comprised of one tax parcel with approximate overall dimensions of 60' (north-TH 10) x 100'
(east -Oxford Ave.) x 59' (south-5th St.) x 117' (west), with a site area of 6,354 square feet or +/- 0.15 acres. This
would be considered the subject property's "larger parcel". The site dimensions and site size are based on MnDOT
mapping.
Easements
There are no easements, other than typical utility and roadway easements that are known to the appraiser.
Streets
The property is accessed from Oxford Avenue NW, a two-lane bituminous surfaced city street with curb and gutter
that fronts the subject's east lot line with 100 feet of frontage. Trunk Highway 10, a four -lane divided highway
borders the subject to the north with 60 feet of frontage with no access to the subject, due to existing access
control. 5th Street NW borders the subject to the south and is a two-lane bituminous city street. There is a signaled
intersection one block west of the subject at Proctor Avenue and Highway 10. Other roads in the area are two-
lane, bituminous surfaced.
Utilities
The subject property is served by municipal sewer and water services. All other utilities including electricity,
cable, natural gas and telephone are available and connected to the site.
Flood Zone
According to FEMA flood map #27141 C0390F, dated 11/16/2011, the subject is located in Zone X; areas of
minimal flood hazard.
Census Tract
The subject is located within Census Tract #305.03 within the City of Elk River #18674 with a map reference of
MN (27) Sherburne Co. (141).
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 33
Topography & Soils
The subject site is generally level. The site has a manicured lawn area surrounding the home with numerous
mature trees and limited landscaping. Note, the site was heavily snow covered at the time of inspection; however,
Google Earth images were utilized to determine the subject's non -winter site conditions.
The soils appear to be good. Soil tests were not made and are assumed to be adequate for the existing
improvements. The overall site has approximately 30-40% impervious coverage.
The appraiser was not provided with any documentation regarding the presence or absence of contamination. The
appraiser is not qualified to identify presence of contaminated soils or other environmental hazards. The appraiser
has not reviewed subsoil data on the subject site and is not qualified to determine the extent of any environmental
problems on site without specialized technical services.
Accessibility & Identity
The subject has good access, with one driveway from Oxford Avenue NW that borders the subject site to the east.
Oxford Ave. is a low traffic city street that connects with TH 10. There is an existing highway crossover at TH 10
and Oxford Ave. Oxford continues south from the subject for two blocks. The speed limit at the subject's
immediate location is 30 miles per hour on Oxford. The speed limit on Highway 10 is 45 miles per hour. The
2018 MnDOT Annual Average Daily Traffic (AADT) counts were 29,500 on TH 10 and 3,550 on nearby Proctor
Avenue (south). There are public sidewalks along Oxford Avenue and 5ffi Street.
The subject property has good access with a proximate location to an arterial highway; however, the identity is
fair/average for a residential property due to the same proximity to the highway. High traffic locations are
typically less desirable for residential properties due to increased noise levels.
Zoning
The subject property is zoned R-lc; Single Family Residential District. The zoning allows for primarily single
family residential uses. The current single family residential use is a permitted use of the property. The zoning will
be discussed in more detail in the highest and best use section of the report.
Site Improvements
The subject property has a concrete surfaced driveway and sidewalk that service the subject home and attached
garage. There is a concrete patio on the south side of the home. The site has fair quality landscaping around the
improvements in addition to a manicured lawn area around the home.
(Note; at the time of inspection the site was heavily snow covered; therefore some site comments are based on
Google Earth images.)
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 34
IMPROVEMENTS DESCRIPTION
The subject property is improved with a two story single family home with partial basement/cellar and attached
garage. The building is classified as Class D by the Marshall Valuation Service. Refer to the building sketch in
the addendum. All dimensions and building sizes are based on actual measurements by the appraiser.
Subject Improvements
Description
Dimensions
Square Feet
House - Main Level
See building sketch
1,075
House - Second Level
16' x 26'
416
Total Gross
Living Area
1,491
Attached Garage
13' x 22'
286
Patio
12' x 12'
144
Breezeway
4' x 5'
20
The subject home was originally built in 1900 per county records. The home is wood frame construction with a
concrete foundation. The home has an unfinished partial basement (cellar) that contains the home's mechanicals.
The remainder of the home's foundation is crawl space. The exterior of the home is clad in wood lap siding with
wood fascia/soffit and an asphalt shingled roof. The home has an attached one stall garage via an enclosed 3-
season breezeway. There is a concrete patio on the south end of the home and a storage shed near the garage. The
home is currently being rented by a single family tenant.
The main level of the home includes a kitchen, dining room, bathroom/laundry room, bedroom and living room.
The second level of the home contains two additional bedrooms and one additional bathroom. The interior is
finished with painted plaster walls and plaster/tile ceilings. Flooring includes hardwood, vinyl, carpet and tile.
Windows throughout the home are vinyl frame, double hung slider style. The home is heated by a gas hot water
boiler and has no central air conditioning. The quality of construction of the home is fair.
The exterior condition of the home is fair overall. The roof was replaced within the past five years; however, the
siding has significant deferred maintenance with peeling paint and damaged siding. The windows were replaced
within the past 9 years as was the home's sewer connection. The home's boiler was also replaced within the past 9
years. The interior condition of the home is average with adequate maintenance.
The home's garage is in a state of extreme deferred maintenance. There are multiple large holes in the roof and
holes in the siding/walls that appear to have compromised the integrity of the structure as it appears to be leaning.
The extremely poor condition of the garage is such that it is no longer functional as a garage (vehicle storage) and
is primarily limited to storage uses only. Also note, the northeast corner of the subject's garage is currently
encroaching on existing highway right of way. The subject's storage shed is also in extremely poor condition and
is of no contributory value. This structure is entirely encroaching on existing highway right of way.
The following table provides the county EMV data as it applies to the subject property.
County EMV Data
2018 EMV
2017 EMV
Land
$43,100
$40,600
Buildings
$50,500
$44,900
Total
$93,600
$85,500
2019 Payable Taxes
2018 Payable Taxes
Real Estate Taxes
$1,412
$1,348
Special Assessments
$0
$0
Total A
$1,412
$1,348
No delinquent taxes are reported.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 35
DESCRIPTION OF THE ACQUISITION
MnDOT proposes a partial acquisition, Parcel 229C, from the subject property as displayed on Fig. 1 below.
Parcel 229C consists of a Temporary Easement (TE) only. The TE acquisition is located at the northeast corner of
the subject property and includes the northerly 20 feet of the easterly 35 feet of the subject property. The total TE
acquisition area is 699 square feet, which is approximately 11 % of the total property area. This area is needed for
the realignment of the subject's driveway that coincides with the closure of Oxford Avenue NW. The subject
house/garage will not be impacted and are excluded from the acquisition. There are no other known building or
site improvements within the acquisition area that would be impacted.
Oxford Avenue NW is to be closed between TH 10 and 5th Street NW as part of the project. A new private
driveway will be constructed from 5tn Street that ties in with the subject's existing driveway and utilizes the
existing Oxford Avenue street right of way. The alignment of the new driveway will not match up directly with
the existing (east/west) driveway alignment, but will tie in at an angle (WNW/ESE) for the proposed driveway to
remain off of existing highway right of way and will include a turnaround. The subject's existing driveway
currently encroaches across existing highway right of way, as does a small portion of the subject's garage and the
entire shed. The portion of the subject's existing driveway that is currently encroaching will be removed.
I
r
Source: MnDOT
•+
A
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 36
DESCRIPTION OF SUBJECT PROPERTY AFTER ACQUISITION
The acquisition of Parcel 229C will not result in a change of site area for the subject. The property will be
encumbered by a temporary easement until December 1, 2025. The property will no longer access Oxford Avenue
NW in the after condition. A new private driveway will be constructed as part of the project to provide access to
the subject from 5th Street NW which borders the subject to the south. 5th Street provides access to TH 10 one
block to the west via Proctor Avenue. The subject's driveway will increase from approximately 50 feet in length
to approximately 190 feet in total length.
The acquisition will not adversely affect the subject property's current or future highest and best use, which will
remain as single family residential uses after acquisition. With no permanent change in site area, the subject
property will continue to meet (grandfathered) current zoning requirements in the after condition. The property
will retain reasonably convenient and suitable access via the proposed driveway.
The proposed driveway will have a change in the alignment that will impact the vehicular access to the subject's
garage. Furthermore, due to the significant increase in driveway length, there may be potential impacts to rental
income or expenses associated with driveway maintenance. Finally, the encroaching portions of the subject's
concrete driveway surface will be acquired. The potential impacts associated with the proposed driveway will be
addressed in the severance damages for Parcel 229C to follow.
Per information from MnDOT, the subject's driveway will be a private driveway that is to be maintained by the
property owner, despite being located on city street right of way. It is understood that the city has intentions of
vacating the former Oxford Avenue right of way after the completion of the project; however, this condition is not
assumed as part of the valuation. However, the appraiser does make the extraordinary assumption that the subject
owner will be responsible for maintaining the new driveway in the after condition.
SALES COMPARISON APPROACH (AS -IF VACANT)
The Sales Comparison or Market Data Approach is based upon the principle of substitution, that is, when a
property is placed on the market, its value tends to be set at the cost of acquiring an equally desirable substitute
property, assuming no costly delay in making the substitution. Since no two properties are ever truly identical,
adjustments to the comparable are necessary for differences in location, quality, condition, size, market appeal, and
other matters. These considerations are a function of the appraiser's experience and judgment.
The land value estimate is supported by recent land sales of comparable sites with similar intended uses in the
subject's area. A comparison has been made on the basis of the subject property having a highest and best use if
vacant for residential uses as is concluded in the Highest and Best Use section.
Sales were researched within the described market neighborhood within the City of Elk River. The appraiser
utilized the MLS, county records and the eCRV system to search for vacant sales within the neighborhood within
past three years of the effective date with site sizes less than one (1) acre. Additional search parameters excluded
water fronting properties and commercial/industrial zoned properties as they are not deemed comparable to the
subject property. The search resulted in a total of 12 vacant land sales, of which the four (4) most comparable
were included in the sales comparison analysis.
Due to limited availability of comparable vacant land sales in the market area, recent improved sales of comparable
sites were utilized in this analysis to support the vacant land sale data. The abstraction and allocation methods
were utilized to estimate the contributory site value from the overall sale price. Depreciated cost estimates from
Marshall Valuation Service and county assessor data were utilized to determine the contributory improvement
values from the improved sales. Two (2) additional recent improved sales were included in the analysis.
The sales utilized in this report are considered to provide the best indication of land value for the subject property
in both the before and after acquisition conditions. There have been no prior sales of the comparables used within
one year of their current sale date unless otherwise noted.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 37
Adiustment Analysis
The Sales Comparison Approach requires adjusting and analyzing comparables to derive a value estimate for the
subject. The various sale prices are adjusted after identifying relevant adjustment factors and after quantifying the
effect of a difference between the comparable and subject.
The difficulty in quantifying adjustments is a result of real estate being unique in nature, with no two properties
being identical. Additionally, not all differences require an adjustment. The Appraiser typically will have to rely
on reason and experience to decide which differences have significance and should be adjusted, as well as the
magnitude of any adjustment.
The same set of comparable sales will be utilized in the valuations of both the before and after conditions of the
subject property. The following adjustments are applicable in both valuation scenarios; however, specific
adjustments may vary between the two valuations due to the differences in the subject property before and after
acquisition.
Transactional Adjustments
Real property rights convect - The real property rights conveyed is the first adjustment because the appraisal of
the subject property rights can only be compared to similar property rights. All comparable sales are offee simple
interests, so no adjustments were necessary.
Financing - A financing adjustment is actually a specific motivation adjustment and often is not capable of being
accurately derived from a mathematical discounting process. All comparable sales were reported to have sold with
typical financing, so no adjustments were necessary.
Conditions of sale (motivation) - Similar to property rights conveyed, a motivation other than that assumed in the
value definition may require discarding a sale from consideration. All comparable sales were reported to have
typical motivation commensurate with the market value definition; therefore no adjustments were necessary.
Adjustments for sale concessions included in the sale price (if any) will be adjusted as necessary.
Market conditions (time) - A time adjustment is a market conditions adjustment because it is changes in the
marketplace, and not the passage of time, that causes prices to change (the principle of change). Based on pairing
the sales used, additional available market data and conversations with the county assessor, an adjustment of
0.55% per month (6.6% per year) was considered appropriate to account for market changes over the period of
the sales used. No adjustments were applied after 0912019 due to a lack of supportive data after that date.
Physical Characteristic Adjustments
Location — Sales of vacant land of similar highest and best use to the subject should be used as the basis of
comparison. Location adjustments considered a number of factors that can have an influence on value including;
highest and best use, zoning, identity (traffic counts), corner lots, access and external influences such as railroads,
etc. All of the comparable sales were considered to have residential purposes as their highest and best use. Based
on available county assessor data, there were no location adjustments deemed to be necessary between the sales
used.
Physical differences - The adjustment process is an attempt to account for significant adjustment factors between
comparables and the subject property. The comparables are adjusted to the subject property to make them similar.
Therefore, if the comparable has a feature that is better than that found in the subject property, a downward
adjustment is applied. If the feature is worse than in the subject property, or nonexistent in the comparable, an
upward adjustment is applied. The physical differences that exist between the comparables and the subject are
adjusted to indicate a reasonable value conclusion for the property being appraised.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 38
Size - The parcel size. Sales were selected to limit the influences of size on the price per square foot
values; however, the principle of economy of scale was considered and adjusted as necessary. Based on
pairing the available sales and other market data, an adjustment of 18% for every 50% difference in site
size was found to be applicable. Larger sites would receive a positive adjustment and smaller sites a
negative adjustment based on the principles of economy of scale.
Other - The other adjustment category is a catchall for relevant adjustments that cannot be categorized in
the previous adjustments. No additional adjustments were found to be necessary for the sales used.
Qualitative Adjustments
In many cases, determining a quantitative adjustment (percentage adjustment) can be difficult when paired sales
data or other market data is not readily available to support such an adjustment. However, the appraiser has the
ability to apply non -quantitative adjustments, known as qualitative adjustments, to a comparable property for
differences in marketable features between the subject and comps. A series of (+), (-) and (_) symbols are applied
to a comparable sale to represent a property characteristic difference in comparison to the subject that is inferior
(+), superior (-) or equal (_) to the subject property. These adjustments are applied based on the appraiser's
experience with properties similar to the subject and the net qualitative adjustments are utilized to help the
appraiser in appropriately weighting the comparable sales in the final value conclusion. In this appraisal,
qualitative adjustments were applied for the following property characteristics:
Identity/Access
In this category, differences in identity were considered. Locations with higher traffic or noise levels would be
inferior to locations with low traffic for residential properties like the subject.
Corner Lot/Cul-de Sac
Corner lots or cul-de-sac lots are generally more appealing in the residential market as they can offer more privacy
from neighbors than other lot locations.
NeighborhoodNiew
Neighborhood locations within a market area can have an influence on site value. Properties located in
developments with newer homes can be more appealing, especially for buyers intending to build a new home, than
locations in more established neighborhoods with older homes.
The following map displays the approximate locations of the comparable land sales. The comparable sale data
sheets can be found in the addendum.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 39
C OMP ARA.BLE SALE LOCATION AIAP
10397Quern CW10 NW,
Elk FUvff, MN 55330
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Source: EirNgAfaps
Note; Comparable sale distances from the subject were approximated using the Bing Maps measurement tool and
are assumed to be reasonably accurate and are provided in the adjustment grid on the following page.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 40
ANALYSIS OF COMPARABLE SALES
The following table shows subject and comparable sales information, adjustments, and calculations.
S.P. 7102-135RW
Parcel #229C
Comparable Land Sale Adjustment Grid
Comparable Sale #
Subject
#1
#2
#3
#4
#5
#6
Address
507Oxford
Ave. NW
10149176th
Ave. NW
235Nile Place
NW
430Quinn
Ave. NW
1738Tipton
Circle NW
19397Queen
Circle NW
10126176th
Ave. NW
Address City
Elk River
Elk River
Elk River
Elk River
Elk River
Elk River
Elk River
Distance from Subject
2.71 Mi. SE
0.27 Mi. S
0.14 Mi. WSW
0.54 Mi. W
2.38 Mi. NW
2.74 Mi. SE
Total Land Size (Sq.Ft.)
6,354
19,986
13,300
13,800
14,012
21,031
12,048
Zoning
R-1C
R-1C
R-1C
R-1C
R-1C
R-1A
R-1C
H & B Use
Single Family
Single Family
Single Family
Single Family
Single Family
Single Family
Single Family
Corner Lot
Yes
No
No
Yes
No
Yes
No
Improved Sale
No
No
Yes
Yes
No
No
Sale Price
$70,000
$32,500
$278,500
$260,000
$49,000
$40,000
Abstracted Site Value
$70,000
$32,500
$54,400
$59,300
$49,000
$40,000
Sale Date
9/13/2019
7/12/2019
5/14/2019
2/15/2019
5/16/2018
3/17/2017
Sale Price per Sq.Ft.
$3.50
$2.44
$3.94
$4.23
$2.33
$3.32
Transactional Adjustments
Property Rights Conveyed
0%
0%
0%
0%
0%
0%
Financing Terms
0%
0%
0%
0%
0%
0%
Conditions of Sale
0%
0%
0%
0%
0%
0%
Market Conditions (Time)
0%
1.10%
2.20%
3.85%
8.80%
16.50%
Adjusted Price per Sq.Ft.
$3.50
$2.47
$4.03
$4.40
$2.53
$3.87
Physical Characteristic Adjustments
Location
0%
0%
0%
0%
0%
0%
Size (Sq.Ft.)
25%
19%
19%
20%
25%
17%
Other
0%
0%
0%
0%
0%
0%
Qualitative Adjustments
Identity/Access
(-)
(-)
(_)
(_)
(-)
(-)
Corner Lot/Cul-de-sac
H
H
(_)
N
(_)
N
Neighborhood/View
(-)
(_)
(_)
(-)
(-)
(-)
Net Qualitative Adj.
(-)
I (=)
I (=)
I (=)
I (--)
I (-)
Net Adjustments
25%
19%
19%
20%
25%
17%
Adjusted Price per Sq.Ft.
$4.38
$2.94
$4.79
$5.27
$3.17
$4.53
Comparable Sale Statistics
Unadjusted Sale Prices
Adjusted Sale Prices
High ($/Sq.Ft.)
$4.23
$5.27
Low ($/Sq. Ft.)
$2.33
$2.94
Mean ($/Sq.Ft.)
$3.30
$4.18
Median ($/Sq.Ft.)
$3.41
$4.46
Standard Deviation ($/Sq.Ft.
$0.77
$0.93
Coefficient of Variation
0.235
0.221
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 41
RECONCILIATION OF LAND VALUE (BEFORE ACQUISITION)
The comparables have been adjusted for their comparison to the subject property's characteristics before
acquisition. The sales were analyzed on a per square foot basis, which is typical of the market for single family
residential land in the subject's market area. The adjusted sales prices indicate a reasonable range in value for the
subject property of $2.94/Sq.Ft. to $5.27/Sq.Ft. with a mean of $4.18/Sq.Ft. and median of $4.46/Sq.Ft.
The comparable sales utilized in this analysis were all located within the City of Elk River in Sherburne County
and were the most comparable of those available. The sales occurred within the past +/- three years. A time
adjustment was applied to the sales at the rate of 0.55% per month, or 6.6% per year up to September 2019 based
on available market data. After that date, there was no market data to support further adjustments.
Due to limited availability of comparable vacant land sales in the market area, recent improved sales of comparable
sites were utilized in this analysis. The abstraction and allocation methods were utilized to estimate the
contributory site value from the overall sale price. Depreciated cost estimates from Marshall Valuation Service
and county assessor data were utilized to determine the contributory improvement values.
Economy of scale was also considered in the applied adjustments. Pairing the sales used, in addition to other
market data and county data, indicated an adjustment of 18% for each 50% difference in site size. Smaller sites
received a negative adjustment and vice versa based on the principle of diminishing return. No additional
adjustments were found to be necessary for the sales used. Qualitative adjustments were applied for comparison
purposes.
Comp # 1 is a recent vacant land sale located in southeast Elk River in a neighborhood of newer homes with a park.
This property has a non -corner location with similar zoning, utilities and views. A larger positive adjustment was
required for the larger site size; however, no additional adjustments were necessary.
Comp #2 is a recent vacant land sale located near the subject in south Elk River in an established neighborhood of
older homes like the subject. This property has a non -corner location with similar zoning, utilities and views. A
positive adjustment was required for the larger site size. This property was purchased by an adjoining landowner,
off the market, and set the low end of the value range.
Comp #3 is the most recent improved land sale and is located nearest to the subject two blocks west in the same
neighborhood as the subject. The property has a similar corner location on a well -traveled city street with similar
zoning and other similar features. A positive adjustment was required for the larger lot size; however, no
additional adjustments were necessary. The abstraction method was utilized to estimate the contributory site value
from the overall sale price. This is a good comparable sale.
Comp #4 is a recent improved land sale located near the subject +/- 7 blocks west in a neighborhood of newer
homes. The property has a non -corner location that backs up to TH 10, like the subject. This property has similar
zoning and other similar features. A positive adjustment was required for the larger lot size; however, no
additional adjustments were necessary. The allocation method was utilized to arrive at an estimated site value
from the improved sale price. This is a good comparable sale.
Comp #5 is a vacant land sale located on the west side of Elk River. This property has a cul-de-sac location in a
neighborhood of newer homes and larger sites. This site was the last remaining lot in the cul-de-sac. A large
positive adjustment was required for the larger site size; however, no additional adjustments were necessary. This
sale set the lower end of the value range.
Comp #6 is an older vacant land sale located near comp #1 in southeast Elk River in a neighborhood of newer
homes with a park. This property has a non -corner location with similar zoning, utilities and views and shares the
most similar lot size with the subject. A positive adjustment was required for the larger site size; however, no
additional adjustments were required. This is a good comparable sale.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 42
The comparable sales were adjusted and weighted in accordance with their comparability to the subject, sale date
and other factors. The subject's lot size could not be bracketed by the available sales after an extensive search;
however, Comp #6 was the most similar in size. Given the subject's smaller lot size, and based on the principle of
economy of scale, the subject's value should trend toward the top of the range. Therefore, most consideration was
given to Comps #3 and #4, with secondary weight to Comp #6. No weight was given to the remaining sales.
After weighting the adjusted comparable sales data, a rounded value conclusion via the Sales Comparison
Approach for the subject property Before Acquisition is $4.90 per ScI.Ft.
ESTIMATE OF MARKET VALUE (BEFORE ACQUISITION)
Subject Property
Area
Market Value Rate
Value Extension
Land
6,354 Sq.Ft.
$4.90/Sq.Ft.
$31,135
Improvements
Not Applicable
$0
low Total Before Acquisition Market Value
$31,135
RECONCILIATION OF LAND VALUE (AFTER ACQUISITION)
The acquisition of Parcel 229C from the subject property results in no changes to the land area of the subject site in
the after condition. Furthermore, the acquisition does not result in any changes to the highest and best use or other
significant physical characteristics of the subject site; therefore the subject's land value after acquisition would be
the same as the before acquisition condition.
After weighting the adjusted comparable sales data, a rounded value conclusion via the Sales Comparison
Approach for the subject property After Acquisition is $4.90 per ScI.Ft.
ESTIMATE OF MARKET VALUE (AFTER ACQUISITION) MJ
Subject Property
Area
Market Value Rate
Value Extension
Land
6,354 Sq.Ft.
I $4.90/Sq.Ft.
$31,135
Improvements
Not Applicable
$0
Total After Acquisition Market Value
$31,135
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 43
EASEMENTS ACQUIRED
Temporary Easement
The value of the Temporary Easement (TE) is calculated using the land rent method. Due to the temporary nature
of the easement, a common valuation technique relates the easement term to a rental period. The fee value is
related to an appropriate rental rate, typically 6 to 10% of fee value based on available ground lease data. For
residential properties similar to the subject, an 8% rental rate is used. An annual rental amount is determined based
on the TE area and rental rate, which is further extended to a total rental amount for the TE period.
Since payment will be applied as a single upfront payment, as opposed to a series of annual payments, a present
worth factor is considered, which will discount the total rent to a present value of the rent stream. Based on current
treasury yield rates for a 5 to 7-year term, a reasonable discount rate of 1.50% is applied, and assumes no future
increase in the land value over the rental period. The expiration date of the temporary easement is 12/01/2025,
resulting in a total TE period of approximately 5.88 years as of the effective date of this valuation. The following
table displays the factors and calculation of the TE value.
Annual Rent
Market Rent ($/Sq.Ft.)
TE Area
$4.90/S .Ft. 8%
Extension
699 Sq.Ft.
x
$0.39
=
$274.01
Total Rent
Annual Rent
I
TE Term
Extension
$274.01
1 x
5.88 Years
=
$1,611
Present Value Factor
Term
Discount Rate
Extension
5.88 Years
1.50%
=
0.9162
Calculation of Damages
Total Rent Present Value Factor Extension
$1,611 x 1 0.9162 = $1,476
Estimate of Damages for Temporary Easement
$1,476
IMPROVEMENTS ACQUIRED
The acquisition of Parcel 229C from the subject property will include the removal of existing concrete driveway
surface that is located within existing right of way. Although encroaching within the right of way, the established
driveway location was based on the direct access to Oxford Avenue NW, a city street. The existing highway right
of way was acquired back in 1941 and this driveway location had been perpetuated over the years to provide the
most direct route to the property from Oxford Avenue. Therefore, based on the lengthy history of the improvement
and original intent of it, the portion of the driveway to be removed is not considered to be an encroachment and is
believed to be a compensable site improvement.
Approximately 400 square feet of the subject's existing concrete pavement will be removed from the existing right
of way. The replacement cost of the pavement is estimated from Marshall Valuation Service, a national
replacement cost estimation guide. The replacement cost is estimated at $6.85/Sq.Ft., which extends to a
replacement cost of the acquired concrete of $2,740.
Based on the current condition of the concrete and the total life expectancy in relation to the age, the appraiser has
estimated a physical depreciation estimate of 50%. Therefore, the as -is value of the acquired concrete surfacing is
$1,370. There are no other building or site improvements to be acquired for this proposed acquisition.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 44
SEVERANCE DAMAGES TO THE REMAINDER
Severance damage (reduction of market value to the remainder) was considered by the appraiser.
Access Changes
The proposed project includes the closure of Oxford Avenue NW, which is the subject's street, between TH 10 to
the north and 5th Street NW to the south. Due to the closure of Oxford Avenue, the subject's proposed acquisition
includes the installation of a new driveway that provides the subject access to 5th Street NW that borders the
subject to the south. The new driveway will utilize the Oxford Avenue right of way and will tie into the subject's
existing driveway. The proposed driveway to 5th Street NW will provide reasonably convenient and suitable
access to the subject property and would have no negative severance damage to the subject's remainder.
Garage Severance
The alignment of the new driveway will be altered to reflect the boundaries of the existing highway right of way.
The existing driveway encroaches onto the highway right of way to provide a direct east/west alignment to Oxford
Avenue and the subject's garage. The proposed driveway will have a west-northwest/east-southeast alignment in
the after condition.
Due to the changes in the driveway alignment that will no longer have the same orientation as the subject's garage,
access to the garage is anticipated to be diminished to the point it will no longer be accessible by vehicle.
However, the current condition of the garage is extremely poor and has impacted the utility and function of the
garage such that it is no longer viable to be used for vehicular storage. This is supported by the appraiser's
observations at the time of inspection that indicated the tenant was not using the garage for vehicle parking.
The garage offers minimal contributory value to the subject property based on its current condition. Furthermore,
the garage is encroaching across existing highway right of way, which eliminates the ability to construct a new
garage in the same location. There would not be adequate space to build a new garage in a similar location north
of the home within the site boundaries and be compliant with setbacks. Furthermore, repairing the existing garage
is not believed to be feasible given the extreme level of deferred maintenance and apparent damage to the integrity
of the structure. The appraiser has concluded the only remaining utility of the structure would be for ancillary
storage uses, which do not require a specific driveway alignment for access. Due to the poor condition of the
structure, which includes large holes in the roof, storage uses are significantly limited as well.
The appraiser has concluded that there are no severance damages to the subject's garage structure due to the
acquisition of Parcel 229C.
Rental Severance
The length of the subject's driveway will increase significantly, from an existing length of approximately 50 feet,
to a proposed total length of approximately 190 feet, which includes the turnaround area. The property is currently
being utilized as a single family rental property. This use is common in the market area and based on reported
rental market conditions, appears to be a viable and financially feasible use of the property.
The proposed change in driveway length is anticipated to result in an increase in maintenance costs to the property
owner (landlord), including snow plowing and other maintenance. These maintenance costs are typically passed
on to the tenant based on lease terms in the market area for single family properties. The appraiser has interviewed
local market participants as well as other property managers/landlords familiar with single family rentals to
determine the appropriate rental impacts, if any, to the subject property based on the proposed driveway changes.
Three market participants were interviewed including a local realtor/property manager from Elk River that has
extensive experience in the single family rental market. Two additional property manager/landlords with single
family rental experience were also interviewed to provide an adequate sampling of data.
The property managers suggested that the significant increase in driveway length would likely result in increased
maintenance expenses for the rental property. These expenses are often passed onto the tenant; however, rental
rates are directly tied to the pass through maintenance costs, which would tend to have a negative effect on the
achievable rental rate for the property.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 45
The surveyed data from property managers indicated a range in monthly rental rate impacts from $0/month to
$100/month based on the proposed driveway changes. The local property manager opined that there would be no
observable impacts to the achievable rental rate of the subject property; however, did suggest the existing tenant
would likely bear the increased maintenance costs in this situation. The remaining property managers indicated
that there would be recognizable damages to the achievable rental rate of the subject property due to the increased
driveway length, suggesting rent losses of $50/month and $100/month, respectively.
Although the local property manager indicated no damages to the achievable rental rate of the subject, the
indications that the existing tenant may experience increased costs, could translate to a rental concession by the
landlord to offset the tenant's increased costs to maintain tenant satisfaction and avoiding tenant turnover.
Therefore, given a range of $0/month to $100/month, the appraiser has reconciled at the average/median rate of
$50/month as a reasonable estimate of rent reduction caused by the proposed increase in driveway length.
The monthly rent reduction must be extended to a total damage amount. This will be accomplished through the
use of a gross rent multiplier (GRM). A GRM is a common valuation technique utilized in the single family rental
market. The GRM relates the gross rent of a rental property to an overall value estimate based on the income
approach. Gross rent multipliers are obtained from the sales of rental properties in the market. The GRM is
calculated by dividing the sale price of the rental property by the gross annual rental rate of the property at the time
of sale. This effectively results in a rent multiplier that is utilized to estimate the market value of a rental property
based on its gross annual rent.
The appraiser has researched the local Elk River market area for GRM data. Due to the limitations of the MLS
system, sales of rental properties were extremely limited, which was confirmed by an interview with a local real
estate agent/property manager. As an alternative method, the MLS was utilized to research rental rate data from
the Elk River market, and a number of closed rentals were located. These closed rentals were further researched to
determine if the same property recently sold. A number of these rental comparables were also sold within a
reasonable time frame of the closed rental listing. The combination of the rental rate and sale price were utilized to
estimate a GRM for the subject property from the market. The data from the market is as follows.
Comparable Gross Rent Multiplier Data
Comp
#
Address
City
Rental
Date
Rental
Rate
Sale Date
Sale Price
Net
GRM
1
19419 Auburn Street NW
Elk River
12/5/2013
$1,550/mo
7/11/2013
$145,000
7.80
2
230 8th Street NW
Elk River
4/19/2017
$1,695/mo
4/15/2016
$203,000
9.98
3
18312 Wilson Circle NW
Elk River
12/1/2019
$1,850/mo
10/28/2019
$318,752
14.36
4
19309 Upland Street NW
Elk River
1/27/2014
$1,650/mo
7/11/2013
$183,500
9.27
5
18309 Tyler Street NW
Elk River
4/10/2014
$1,695/mo
11/22/2013
$209,000
10.28
6
19393 Upland Street NW
Elk River
2/26/2014
$1,875/mo
10/22/2013
$199,500
8.87
7
1 9527 Parrish Avenue NE
Otsego
9/26/2019
$1,960/mo
9/11/2018
$252,000
10.71
8
7347 Mackenzie Ave. NE
Otsego
2/1/2017
$2,095/mo
9/6/2016
$300,000
11.93
9
7347 Mackenzie Ave. NE
Otsego
8/15/2017
$2,395/mo
9/6/2016
$300,000
10.44
10
14744 76th Street NE
Otsego
5/1/2017
$2,400/mo
5/1/2017
Active
$336,500*
Adj.I%
11.68
11
14787 77th Street NE
Otsego
10/20/2017
$2,500/mo
10/20/2017
Active
$346,400*
Ad'.I%
11.55
12
1 8426 164th Circle NW
I Ramsey
1/6/2014
1 $1,500/mo
8/29/2013
$145,000
8.06
*List price less 1 % list/sale ratio
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 46
GRM Statistical Data
All Data
12 Comps)
Most Recent Data
High
Low
High
Low
14.36
7.80
14.36
10.71
Average
Median
Average
Median
10.41
10.36
12.08
11.62
Most Comparable Homes
Reconciled
Data
High
Low
High
Low
10.71
7.80
12.08
9.02
Average
Median
Average
Median
9.14
9.02
10.47
10.38
RECONCILED GROSS RENT MULTIPLIER
10.50
There was a good supply of rental comparables found in the market over the past +/- 6 years within a +/- 5 mile
radius of the subject property that includes portions of nearby Otsego, Ramsey, St. Michael and Nowthen.
Although some data is older, the rental rates appear to be increasing proportionally with the sales prices, therefore,
older GRM data is still generally supportive of the current market. Additional GRM data was available; however,
the corresponding sale was too distant from the rental date to be considered. Comps #10 and #11 were properties
that were listed for rent and for sale at the same time. Both properties were ultimately rented rather than being
sold; however, the list price at the time of rent was utilized to estimate a GRM. A 1 % reduction to the list price
was applied to reflect the market list/sale ratio of 99%. The
Many of the GRM comparables were significantly newer homes and commanded much higher rents; however,
their overall sale prices were proportionally higher; therefore the GRM's for these sales are considered relevant.
The most recent data and the most comparable homes were given the most consideration in reconciliation. The
available market data indicates a reconciled GRM for the subject property of 10.50.
Calculations of severance damages as it applies to the subject are as follows.
ESTIMATE OF SEVERANCE DAMAGE TO SUBJECT REMAINDER
Rental Rate Severance
7Estid
Rent Loss
Annual Rent Loss
Gross Rent Multiplier
Value Extension
$50/month
$600/year
10.50
$6,300
Other Severance Damages
$0
ESTIMATE OF SEVERANCE DAMAGE
DUE TO THE ACQUISITION OF PARCEL 229C
$6,300
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 47
RECONCILIATION OF BEFORE AND AFTER VALUES
Estimate of Market Value (Before Acquisition)
Subject Property
Area
Market Value Rate
Value Extension
Land
6,354 Sq.Ft.
$4.90/Sq.Ft.
$31,135
Improvements
Not Applicable
$0
Total Before Acquisition Market Value
$31,135
Estimate of Market Value (After Acquisition)
7A
Subject Property
Area
Market Value Rate
Value Extension
Land
6,354 Sq.Ft.
$4.90/Sq.Ft.
$31,135
Improvements
Not Applicable
$0
Less:
Temporary Easement; 699 Sq.Ft. expires 12/1/2025
($1,476)
Acquired Site Improvements
($1,370)
Severance Damages
($6,300)
Total After Acquisition Market Value
$21,989
RECONCILIATION 11
Market Value Before Acquisition
$31,135
Market Value After Acquisition
$21,989
Difference:
$9,146
FINAL ESTIMATE OF COMPENSATION
Rouuded To
$9,200
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 48
ALLOCATION OF DAMAGES
LAND ACQUIRED
Type
Units
Rate
Value
Fee
N/A
N/A
$0
EASEMENTS ACQUIRED
Type
Units
Rate
Value
Temporary Easement
699 Sq.Ft.
See valuation section
$1,476
IMPROVEMENTS ACQUIRED
Type
Description
Value
Building Improvements
None
$0
Site Improvements
Concrete Driveway
$1,370
DAMAGES TO REMAINDER
Type
Description
Value
Severance Damages
Rent loss
$6,300
Cost to Cure
None
$0
Access Control
None
$0
TOTAL DAMAGES
$9,146
FINAL ESTIMATE OF COMPENSATION
Rounded To
$9,200
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 49
Disclaimer Statement
In this appraisal assignment, the existence of potentially hazardous material used in the construction or maintenance of the building,
such as the presence of urea -formaldehyde foam insulation, andfor the existence of toxic waste, which may or may not be present an
the property, was not observed by this appraiser; nor does this appraiser have any knowledge of the existence of such materials on or
in the property. This appraiser, however, is not qualified to detect such substances. The existence of utiea-formaldehyde insulation or
other potentially hazardous waste material may have an effect on the value of the property. Clients are urged to retain an expert in this
field if desired.
Likewise, detection of ground contamination by toxic substances is a specialized field and must be undertaken by a specialist with the
qualifications to make such determinations. If any concern exists, clients are urged to retain the services of such a specialist to make a
determination of any potential ground contamination or similar conditions.
Statement of Assumptions and Limiting Conditions
The certification of the appraiser appearing in the appraisal report is subject to the following assumptions and limiting conditions and
to such other specific and limiting conditions as are set forth by the appraiser which may appear within the body of this report.
1. The value reported herein is an opinion only and not warranted as, or a representation of fact.
2. The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the title thereto,
nor does the appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is
appraised as though under responsible ownership.
3. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property.
The appraiser has made no survey and assumes no responsibility in connection with such matters.
4. The legal description furnished is assumed to be correct.
5. Any distribution ofthe value within this report applies only under the program of utilization as outlined herein. The
separate valuations of sections ofthe property must not be used in conjunction with any other appraisal and are invalid if so
used.
6. It is an express condition ofthis report that the appraiser is not required to give testimony or appear in court because of
having made this appraisal, and in reference to the property in question, unless arrangements have been previously made
therefore.
7. All existing liens and encumbrances have been disregarded and the property is appraised as though free and clear under
responsible ownership and competent rnanagemeni.
S. This report is for the exclusive use of Mn/DOT. Possession of this report, or a copy thereof, does not carry with it the right
of publication, nor may it be used for any purpose by any person(s) but the Mn/DOT without the previous written consent
of the appraiser or the MaWT and then only with proper qualifications. Unauthorized transmittal of the report or its
conclusion invalidates this report.
9_ Neither all, nor any part ofthe contents of this report shall he conveyed to the public through advertising, public relations,
news, sales or other media, particularly as to valuation conclusions, identity ofthe appraiser or firm with which the
appraiser is connected or any references to any professional organization with which the appraiser is connected without
written consent and an approval by the appraiser.
10. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures which would
render it more or less valuable. The appraiser assumes no responsibility for such conditions or for engineering which
might be required to discover such factors.
11. information, estimates, physical measurements, dimensions area and opinions furnished to the appraiser and captained in
the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility
for accuracy of such items furnished can be assumed by the appraiser,
12. No percolation testing or engineering was conducted, It is assumed the site(s) is buildable.
13. All major improvements considered in this appraisal appear to he structurally sound unless otherwise noted in this report.
However, not being a qualified engineer, the appraiser accepts no responsibility for structural or mechanical failures which
would not be reasonably obvious in the scope of an appraiser's normal inspection.
14. The client specifically waives any claim arising out of financial loss due to structural defects in the property and admits
that the appraiser's opinion is based on reasonably sound structural conditions.
15. The appraiser takes no responsibility for the detection of any violations related to conservation, pollution, environmental
protection, zoning, subdivision regulations, building codes, or any other regulatory statutes, ordinances, by-laws,
regulations or other legal constraints.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 50
Statement of Assumptions and Limiting Conditions (Cant...)
16. The appraiser accepts no responsibility for the existence or discovery of liens whether presently existing or hereafter
arising on account of any indebtedness or liability to the state in which it is located or to the EPA with regard to hazardous
waste.
17. In this appraisal assignment, the existence of potentially hazardous material on site used in the construction or maintenance
of any building on the property, such as the presence of urea formaldehyde foam insulation, asbestos in any form, and/or
the existence of toxic waste, or Radon gas, which may or may not be present on the property, has not been considered. The
appraiser is not qualified to detect such substances. The client is urged to retain an expert in this field.
18. In the event this valuation involves new construction, rehabilitation, conversion, or any other manner of change,
improvement, or addition, the value if reported on an "as completed" basis, is subject to the total and full completion of the
project described, in a first class manner, and in frill and substantial compliance with the plans, descriptions, and/or
specifications fumished to us. Such completion is assumed to be within a reasonable time from the date of the report,
barring the intervention of catastrophe, strikes, government actions, or the effects of any other force majeure, in which
event a revision of this report would be required.
19. In the event this report deals with feasibility, competent management of the project is assumed.
20. No representation is made as to compliance with plans or specifications. The appraiser assumes no liability for deviations
from construction specifications.
21, The appraiser undertakes this assignment with the specific understanding that there is no third party beneficiary to the
contract between the appraiser and client.
22. The appraisers' estimate of "Fair Market Value" is valid only for date specifically set forth in the report, no responsibility
can he assumed for social, economic, physical, or governmental actions that may occur after that date which would result
in change in market conditions, and therefore affecting appraiser's estimate.
23. The Americans with Disabilities Act (ADA) became effective on January 26, 1992. The appraiser has 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 this appraiser has no direct evidence relating to
this issue, there has been no consideration for the possible non-compliance of ADA requirements in estimating the value of the
property, except as supported by the market.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 51
PROFESSIONAL QUALIFICATIONS OF:
Eric M. Montague
Ceirtifie d General Real Property Appraiser
License No. 20513633; State of MN through August 31, 2020
Appraisal Education
Appraisal 100-105: Registered Appraiser Courses - ProSource 21612005 — 3/13/2005
Haw To Pass The Minnesota Appraiser Exam - ProSource 3/20/2005
Advanced Residential Building Analysis - ProSource 7124/2006
Income Property Appraising Courses 2.1, 2.2, 2.4 - NAIFA 2126/2007 — 11/30/2007
Moil, Myth or Menace - Kaplan 4/23/2008
Measiuxng Residential Properties (ANSI) - B&B Professionals 2f 10/2010
UAD Appraisals - B&B Professionals 7/22/2011
FHA Today: Completing FHA Appraisals — B&B Professionals 61612012
Advanced Residential Applications & Case Studies — B&B Professionals 2/28/2013
Cover Your Fannie -Mae; Know the Guidelines —Kaplan 4/23/2014
Fannie Mae AQM & UCDP — B&B Professionals 1/28/2015
Defensible Appraisal Practices — B&B Professionals 2/17/2015
Market Analysis Using MLS & Excel: The Basics — B&B Professionals 4122/2015
FHA Property Analysis — B&B Professionals 10/27/2015
(Numerous Additional Continuing Education Courses Available Upon Request)
Bi-Annual USPAP Continuing Education Courses
MNDOT Right of Way Professional's Workshop 2006, 2008, 2016-2019
NAIFA Appraisal Conference 2011, 2013-2015
Numerous MnDOT Right of Way Training Sessions 2016-2019
Additional Education
Bachelor of Mechanical Engineering Degree
University of Minnesota - December 2004
Associate in Arts Degree
Anoka Ramsey Community College - August 2002
Memberships
St_ Claud Area Association of RealtorsV
Realtor? Appraiser
Related Experience
Alpha Appraisal; LLC — Owner/Appraiser
March 2005 — Present
MnDOT District 3 —Real Estate Representative Senior
January 2016 - Present
Appraisal Experience
Residential. 14 Unit Single Family, New Construction, Waterfront Properties, High Value Properties, FHA, Rural
Development, Foreclosure, Estate Planning, Tax Appeals, Appraisal Re -views, Vacant Land, Right of Way Acquisition
Commercial: Land Development, Industrial, New Construction, Resort Properties, Apartments, Hotels/Motels, Mixed
Use, Multi -Tenant, Restaurants, Office, Retail, Warehouse, Vacant Laud, Right of Way Acquisition and many others
HU Approved
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 52
COPY
ERIC Id MONTAGUE
861 BIRCH LANE
EAST GULL LAKE, MN 56461
STATE OF MINNESOTA
Department of Commerce
The Undersigned COMMISSIONER OF COMMERCE for the State of Minnesota hereby certifies that
ERIC M MONTAGUE
861 BIRCH LANE
EAST GULL LAKE, MN 55401
has complied with the laws of the State of Minnesota and is hereby licensed to transact the business of
Resident Appraiser: Certified General
License Number: 20513633
unless this authority is suspended, revoked, or otherwise legally terminated. This license shall be in effect
until August 31, 2020-
IN TESTIMONY WHEREOF, I have hereunto set my hand this July 31, 2018.
COMMISSIONER OF COMMERCE
Minnesota Departrr►ent of Commerce
Licensing Division
85 7th Place East, Suite 5D0
St- Paul, MN 55101-3165
Telephone: j651 p 539-1599
Email: licensing.CDmmerce@state.mn.us
Website= commerce. state-rnn-us
Notes:
COPY
Individual Licensees Only - Continuing Education: 15 hours is required in the first renewal period, which includes a 7
hour US PAP course- 30 hours is required for each subsequent renewal period. which includes a 7 hour US PAP course-
Ap raisers: You must hold a licensed Residential, Certified Residential, or Certified General qualification in order to
perform appraisals for federally -related transactions- Trainees do not qualify. For further details. please visit our Website
at commerce.state.mn.us.
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 53
F.11 1111 Die 1111JLVA
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 54
CERTIFICATE OF TITLE
N]lNNESOTADEPARTi Vi NTDFTRANSPORTATION
C.S. 7102f1o=0031 PARCEL NO_ 1-Ac ORMIYAEL
COUNT-C OF SHERi3URNFs JOD NO. T'RWSP7102135
TrME OPENION
I hereby eertlf� %t1w Stats af':dianesom that I have exambwd lbtp title to thr real m=-, hcren. deaealbad as slb x by the
records in the offiw: ofthe Cmumty Rccorder, kaj&ru of Titles, County Auditor and County Tr�;N,arr, and m shown by said
reeorde the title to d7e following do--Iibad uact
Lot 1. Block 2. of W. R Houltaa's Additloat to fbe. Uil W of Elk Rirer. E.XCE,FT the West t f&A of Lo! L
131ock23 $iuerhLltriB,G4tj.141mne,
Of Sec400— 60woship---JKot1L range west. Shcrb>Lue County,
is at the dak of this catifisate is the following named perecos- (iftbe title is rcgisbsreda ante the cerfiScaie number_)
REl :IST) :RYM LAND TORRENS C ERTMCATE NO.
Ttiamre
Name oFTnteresr
Rooald 7. Toacfaetie amd cirri mmt
Lori Tff=hettc, as of Fec
Ja Tuts.
Riswgrnce, Ina- Rccard
Date OfDarment $oak & Pap N„mo : of Spouse
& PwP- Reoordad omid6u Doc. D if s nfi]g_SQ.slete
Dated; 02-21-2007 Doc. No. 6460M
Rcc*rded: 03-26.2001
Dated' 05-2& 1993 T}cc. NO. 277S29
3iergrded: Dv.2$.1993
Daring the past ftYB }'e23S the ritle tm said hurl was io the follow mg persons, if different from above:
Nntero Date of Dor mcm Hack & Page Nome of Spot=
None ofLymmt & Date Rea3ordr>3 WHM), inc, N.D. lfaln ]G SA 8ffitC
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 55
SUBJECT ONLY TO THE FOLLCIWING; {Herreoumrrate emumbmum armf ]Lcus of neFy9arm givivgnums w d
addresses of partier, data of;n fftrw en , dame of recording, dac+MMM nurohea, and OffiE� 0e31iVI8d idormatipn; also enamftrede
olbwdel em"� i& title; any juds)nc[m do4Xo in the offi" of 1ho Court Administrator thal uuvld be a lien against this
pQtpertg'stioo 46 own here_ Shaw dockrtatmahor, dam -Dfeotry and am mtt ofjudgaen[, narnm ofjudgmentdebtea and
m4iw and aaQrske ' jbq t]Re -crilk r. j
MORTGAGE, dared 0i-28-Z0lIf, rep mLed O1-29-2016, as dac. n0. 815709, &mbyRonkdl. Touchrutimd LariL. Touehcttr,
hua and sad wife, m ftum ofMartgW 1 Hmbc unk Rsgist w6ft Sydews, Tnc., as nautilnee fw CentraJ Bam1; in 16e amouni of
$122,000,1>D, maturing on oz-01-Vu 1.
time. Two problem_ '113ne iz am 4waxpWMzd break inthe'ubam oftido to this renlestste, The ToanccrrW chain aftit[o traces
back to a snnnyanoc from Virp% Inc.. to Jm m= BrDn= m d Dcbms Brameo (dated 03-11- L 994, reomded a8-t 1-L 994, as dcc.
va. 29S797j. At that time the fecmd title wag k r6re momc of RcswVmcc, lnc, and na4 Vug% lnc, The roeord does not disclose a
Formal legaL relstiaosbip bciwwo Virgo, Inc. and Rcziwgcbu, Inr, ahhDugh a certain Lloyd H. Andetson appears as the 11reeide A
nf9X-Pth carparatlans.
l further Car* that all tw= and assmsmews. against said traces am paid, exoepu
PIIti 75-4104210 Taxes payable Lu'2017 are Sl 478,44, No special aasesmvnyts_ Halfpaid as of07-1U-2017_
Last Rza �d Vr CwLiflcgu Mesnurin]
SIGNATURE
Y ar Atowtcr
DATE
Bank - ❑f- Pw
Dos. Na. 816096
N i _
16 Aagast 2017
Louie L. He
7 ]. W. ] ]. [ [cu[ unaR d dnL.l P I-Tmxb ettiL dnc
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 56
S U IU r- l NIAKII I_L l V A I A
o eeaco n Sherburne County, MN
Summary
Parcel lD
75-4104 210
PrimryPrcel
n1a
Parcel Type
RE
Proper Address
507 0Y FORD AVE NW, ELK R IVER PAN
Plat
4I0-W H HOl1LTON` rtiDIDMON
Sec-Twp-Rng
Sec33T33NR26W
LepIDrsaiptiin
LOT 1.ELK 2EXTHEW IFTOFLOT 1BILK 2
I Nate Legal descriptions here are for ;ex
purposes o* Do rot usethem fir cKoding
purposes}
LastReoordirag
A84YMDate:03 61"7
Deeded Acres
026
Tax Disuict
EURIVER CrIY
SchoolDistriri
723-ELK RIVER
Owner
Owner
Touchette ?donald Jhiori L
7078E Fish Lake Rd
MapleGrm%MN 55311
Residential
we
OTHER
Year Built
1900
Exterior Wall
WOOD
Area
904Sq Ft
Bedrnxrs
0 bsrat 1 mam fir, 2 upstrs
Basernenr Finidqed
No
Bathrooms
0hsmt GmaFnfir. i upstrs
Air Conditioning
ND
Heating
H WATER R❑
Fireplaces
D Gas FP. 0 Masco FP
Garages
1
Yard Erctras
CEN ENT DRIVEWAY
Decking
GLAZD PRC" 171sf }.OPEN PORCH(20sf 1
Other Buildings
Type
Total Sine
Year BulR
STORAGE SH
64
Sales
Daemneat
saleDm
Sale Price
Adj Price
eCRV
A 646064
07f20G7
$90 B47
$90.B47
12f1998
36i.900
$191900
12f1998
363.90D
463.900
195f1473
W900
363,900
Recent Sales Irl Area
From 2018-03-04
To 2020-43-04
Sales by distance
15DID Feet w
Valuation
X19Assessmem
201S6sse5anent
2017Assessment
2916Asseswent
Estimated Land Value
$45 600
W 100
W 600
$37"
Esnmared BwldrrgYalue
$52 400
SM 500
$44.900
5430W
Tntal Estimated Value-
$90ON
593:6w
$85.504
1BD,OWD-
Classfrcanon
ResrderYial 1 unit
Residential I out
ResidenvA t unit
Residerrhal lunrt
Ocrupancy
NON -HOMESTEAD
40N-HCk-0ES-11E.sD
NUN-FIOMESFEAD
NOWHOMESTUD
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 57
Tax Hi story
2019PayaMe
2lampaya6le
2017Payatsre
Taxati-Value
$9361W
$05.5W
W6.0f16
hietTax
$141200
$1.348C6
$127000
Special Assessments
SOX
$000
$680
Pruuip4eBalance ofSpec Assessments
$000
3006
$000
Tatalpayahle
$3412O0
41348CO
$127000
Penal-tyDue
$000
1000
30.06
Cost Due &Fees
$000
$000
9600
lntere; Due
$000
$000
Y130I3
Taal Unpaid
5000
$000
$600
Pay Taxes Online
Click here for Cereral In:nrrminn G Pao-rrent notions
Formals and payrnent infnnnehon for past due axes contact AudRorareastrer 763-7654,352
Tan Statement
2019 Tax Statement
2018 Tax Statement
2017 Tax Statement
The obore tuxstaatwPff9 rinks vri➢ open in o pop-W.. if they do uar open pkusr dsaMe your pup-W b62ker.
If you are having dtff icuitias obtaining a PDF wpy of your Tax Statemeotigi please check the fallowing
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access ftomwhNnabusiness environment.
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Photos
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S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 58
Sketches
75-410-0210
10.0' 4.0'
S•4'
16.V
HS1WD
O
120.0 sir
wig
H51 OSN
06
HS10N
=
64.0 sf
v
64.05(
4.0'
Garage
tx
........................
10.0'
12.4' -
296 D 51
R2N
M
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m
v
r.�
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HS1-SACS
25fi_0 6f
HSI-50CS
160.0 sf
r
HS10Cellar
......................
192.0 sf
HS10CS
G Parch
171.0 sf
19.D'
Mo data available for me f oltowing modules= Commenoal
SherbumcCounty —z—ra_ any and eiliiamlityForoamagesrncurreddmecdyormdKecrlyasarPsultoFmcirs.omssionsordmrep3xwsand rsnut develaiceubv
UspPnwdeFormr;_=s mis rpretahan.
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GQPR Privacy Notrce 1 11
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Last ❑wa Uodned, YN2021311,25:04 PM Version 2 3 43
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 59
BUILDING PLAN
MAIN LEVEL
1
a �{
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BATHROOMA;
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CONCRETE
PATll _N14G OINIHG NI-�h'_N
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S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 60
COMPARABLE LAND SALE DATA SHEETS
COMPARABLE RESIDENTIAL VACANT LAND SALE
PID: 75-691-0440 Comparable No:
1
Property 10149 176th Avenue NW Grantee:
Great Buy Homes, Inc.
Address: Grantor:
Mark R. & Josephine J. Leiser
City: Elk River, MN Present Use:
Vacant
County: Sherburne Zoning:
R-1C; Single Family Residential
Zip Code: 55330 Highest & Best Use:
Residential
Legal Description: Lot 8, Block 4; Park Pointe
Date of Sale: 09/13/2019 Confirmed Sale Price: $70,000
Special Assessments Assumed: $0
Sale Price Including Assessments: $70,000
Financing: Conventional
Property Rights Conveyed: Fee
Grantee Confirmed: Great Buy Homes, Inc.
Phone: 612-991-5611
Grantor Confirmed: Mark Leiser
Phone: 651-246-9001
Broker Confirmed: Pamela Artmann; Edina Realty, Inc.
Phone: 612-669-4156
Other: Sherburne County Assessor
Phone: 763-765-4900
Confirmed By: Eric Montague
Date: 02/24/2020
Sewer: Municipal Water: Municipal
Sidewalk: Yes
Curb & Gutter: Yes Street Surface: Bituminous
Other: None
Dimensions: 143'x131'x159'x142' Area: 19,986 SF
Shape: Rectangular
Frontage: +/- 143'/176th Ave. Depth: 142'
Topo: Level
Improvements: None
Descriptive Data: Vacant residential land sale, neighborhood of newer homes, wooded site, non -corner lot,
adjacent to small park
Per Site:
Notes:
Sale Price Breakdown
$70,000 Per Front Foot: $490 Per SF/Acre: $3.50/SF
None
Comments
MLS #5276296 — 7 DOM; eCRV #1010930; Recent vacant land sale southeast of subject, short marketing
time, purchased by builder, new home built after sale, appears to be a good arm's length sale
Directions to Property
Hwy 10 to 171st Ave. (Twin Lakes Rd), east to 175th Ave, east to 176th Ave NW, north to 10149 on left; +/-
2.71 mi SE of subject
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 61
COMPARABLE SALE #1
10149 17611 Avenue NW, Elk River, MN 55330
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 62
COMPARABLE RESIDENTIAL VACANT LAND SALE
PID: 75-408-0675
Comparable No: 2
Property 235 Nile Place NW
Grantee: Robert D. & Susan J. Black
Address:
Grantor: John E. & Nancy K. Babcock
City: Elk River, MN
Present Use: Vacant
County: Sherburne
Zoning: R-1C; Single Family Residential
Zip Code: 55330
Highest & Best Use: Residential
Lot 23 & 24, Block 6, Houlton's Addition to the Village of Elk River, except the E
Legal Description:
35' of S 100' of said Lot 24 and except the N 30' of said Lots
Date of Sale: 07/12/2019
Confirmed Sale Price: $32,500
Special Assessments Assumed: $0
Sale Price Including Assessments: $32,500
Financing: Cash
Property Rights Conveyed: Fee
Grantee Confirmed: Robert Black
Phone: N/A
Grantor Confirmed: John Babcock
Phone: N/A
Broker Confirmed: N/A
Phone: N/A
Other: Sherburne County Assessor Phone: 763-765-4900
Confirmed By: Eric Montague
Date: 02/24/2020
Sewer: Municipal Water:
Municipal Sidewalk: None
Curb & Gutter: None Street Surface: Bituminous Other: None
Dimensions: 77'xl50'x112'x50'x35'x100'
Area: 13,300 SF Shape: Rectangular
Frontage: +/- 77'/Nile Place
Depth: 150' Topo: Level/sloped
Improvements: None
Descriptive Data: Vacant residential land sale,
neighborhood of older homes, open site, non -corner lot, low
traffic street frontage
Per Site:
Notes:
Sale Price Breakdown
$32,500 Per Front Foot: $422 Per SF/Acre: $2.44/SF
None
Comments
eCRV #980733; Recent vacant land sale near subject to south, not listed on MLS, purchased by neighboring
land owner, new home built after sale, no contact information available for buyer or seller, appears to be a
good arm's length sale
Directions to Property
Hwy 10 to Main St., west to Norfolk Ave, south to Nile Place, west to 235 on right; +/- 0.27 mi S of subject
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 63
COMPARABLE SALE #2
235 Nile Place NW, Elk River, MN 55330
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 64
COMPARABLE RESIDENTIAL IMPROVED LAND SALE
PID: 75-409-0235 Comparable No:
3
Property 430 Quinn Avenue NW Grantee:
Michael & Jacqueline Pohl
Address: Grantor:
Peter J. & Jill Pouliot
City: Elk River, MN Present Use:
Single Family Residential
County: Sherburne Zoning:
R-lc; Single Family Residential
Zip Code: 55330 Highest & Best Use:
Residential
Legal Description: The N 115 feet of Lots 7 and 8, Block 2; Thomas Addition to the Village of Elk River
Date of Sale: 05/14/2019 Confirmed Sale Price: $278,500
Special Assessments Assumed: $0
Sale Price Including Assessments: $278,500
Financing: Conventional; $8,355 seller concessions included; net Sale Price = $270,145
Property Rights Conveyed: Fee
Grantee Confirmed: Michael Pohl
Phone: 763-302-9783
Grantor Confirmed: Peter Pouliot
Phone: 763-234-4566
Broker Confirmed: Joan Ruprecht; Keller Williams Integrity
Phone: 612-868-6943
Other: Sherburne County Assessor
Phone: 763-765-4900
Confirmed By: Eric Montague
Date: 02/24/2020
Sewer: Municipal Water: Municipal
Sidewalk: Yes
Curb & Gutter: Yes Street Surface: Bituminous
Other: Corner lot
Dimensions: 115' x 120' x 115' x 120' Area: 13,800 SF
Shape: Rectangular
Frontage: +/- I I5'/Quinn Ave. Depth: 120'
Topo: Level
Improvements: 2,146 SF Two story single family home w/detached
garage
Descriptive Data: Improved residential land sale in established neighborhood of older homes, corner lot,
access from 5 St. NW, moderate traffic location
Sale Price Breakdown
Per Site: $54,400* Per Front Foot: $473* Per SF/Acre: $3.94/SF*
Notes: *Abstracted land value of $54,400; Est. improvement value $215,745
Comments
MLS #5205284 — 12 DOM; eCRV #951568; Recent improved sale, nearest to subject on one of subject's
same streets two blocks west, similar corner lot, moderate traffic location, abstracted building value estimated
using assessor data, appears to be a good arm's length sale
Directions to Property
Hwy 10 to Proctor Ave., south to 51h St., west to Quinn Ave., south to 430 on left; +/- 0.14 mi WSW of subject
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 65
COMPARABLE SALE #3
,f. .......... . . . . . . . .
430 Quinn Avenue NW, Elk River, MN 55330
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 66
COMPARABLE RESIDENTIAL IMPROVED LAND SALE
PID: 75-535-0130 Comparable No:
4
Property 1738 Tipton Circle NW Grantee:
Michelle Miller & Brian Ward
Address: Grantor:
Jason M. & Katelin S. Vahlenkamp
City: Elk River, MN Present Use:
Single Family Residential
County: Sherburne Zoning:
R-lc; Single Family Residential
Zip Code: 55330 Highest & Best Use:
Residential
Legal Description: Lot 6, Block 1; Bailey Beck Addition
Date of Sale: 02/15/2019 Confirmed Sale Price: $260,000
Special Assessments Assumed: $0
Sale Price Including Assessments: $260,000
Financing: Conventional
Property Rights Conveyed: Fee
Grantee Confirmed: Michelle Miller
Phone: 763-923-4050
Grantor Confirmed: Jason Vahlenkamp
Phone: 715-271-3771
Broker Confirmed: Stephen LeTourneau; The Realty House
Phone: 612-986-9859
Other: Sherburne County Assessor
Phone: 763-765-4900
Confirmed By: Eric Montague
Date: 02/24/2020
Sewer: Municipal Water: Municipal
Sidewalk: None
Curb & Gutter: Yes Street Surface: Bituminous
Other: None
Dimensions: 90' x 186' x 84' x 195' Area: 14,012 SF
Shape: Rectangular
Frontage: +/- 90'/Tipton Cir. Depth: 195'
Topo: Level
Improvements: 2,024 SF Split Entry single family home w/attached
garage
Descriptive Data: Improved residential land sale in neighborhood of newer homes, non -corner lot, rear of
site backs up to Highway 10
Sale Price Breakdown
Per Site: $59,300* Per Front Foot: $659* Per SF/Acre: $4.23/SF*
Notes: *Abstracted land value of $59,300; Est. improvement value $200,700
Comments
MLS #5134093 — 3 DOM; eCRV #921247; Improved sale, just west of subject, similar frontage on Hwy 10 as
subject, allocated building value estimated using Marshall Valuation, home recently remodeled which was not
reflected in county assessor values, appears to be a good arm's length sale
Directions to Property
Hwy 10 to Upland Ave., south to Tipton Cir., west to 1738 on right; +/- 0.54 mi W of subject
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 67
COMPARABLE SALE #4
R 14 1
F �4
M~
75 4{12-0205 1
1 75-402-0232
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f..
7535'U115
75535y-o110 75-402-0153 -
go
a
1
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1738 Tipton Circle NW, Elk River, MN 55330
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 68
COMPARABLE RESIDENTIAL VACANT LAND SALE
PID:
75-707-0325
Comparable No:
5
Property
19397 Queen Circle NW
Grantee:
Daniel & Elizabeth Moll
Address:
Grantor:
Norman E. & Laura Lee T. Runia
City:
Elk River, MN
Present Use:
Vacant
County:
Sherburne
Zoning:
R-IA; Single Family Residential
Zip Code:
55330
Highest & Best Use:
Residential
Legal Description: Lot 5, Block 3; CIC #42, Windsor Oaks of Elk River
Date of Sale: 05/16/2018 Confirmed Sale Price:
Special Assessments Assumed: $0
Sale Price Including Assessments: $49,000
Financing: Cash
$49,000
Property Rights Conveyed: Fee
Grantee Confirmed: Daniel Moll
Phone:
317-498-0346
Grantor Confirmed: Norman Runia
Phone:
763-221-7796
Broker Confirmed: Timothy Jokinen; Counselor Realty, Inc.
Phone:
612-590-1856
Other: Sherburne County Assessor
Phone:
763-765-4900
Confirmed By: Eric Montague
Date:
02/24/2020
Sewer: Shared Water: Shared
Sidewalk:
None
Curb & Gutter: Yes Street Surface: Bituminous
Other:
Cul-de-sac
Dimensions: 68'xl74'x67'xl39'xl34' Area: 21,031 SF
Shape: Irregular
Frontage: +/- 68'/Queen Cir. Depth: 174'
Topo: Level
Improvements: None
Vacant residential land sale, neighborhood of newer homes and larger lots, wooded site
Descriptive Data: with pond views, cul-de-sac location, neighborhood has community sewer/water and
trail system
Sale Price Breakdown
Per Site: $49,000 Per Front Foot: $721 Per SF/Acre: $2.33/SF
Notes: None
Comments
MLS #4898290 — 133 DOM; eCRV #809944; Vacant land sale northwest of subject, last lot in cul-de-sac,
new home built after sale, monthly association dues of $147, lower end of value range, appears to be a good
arm's length sale
Directions to Property
Hwy 10 to Upland Ave., north to Meadowvale Rd., west to 192nd Ave., west to Ogden St., north to 193rd Ave,
west to Rawlins St, north to 193rd Cir, east to Queen Cir, north to 19397 on right; +/- 2.38 mi NW of subject
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 69
COMPARABLE SALE #5
19397 Queen Circle NW, Elk River, MN 55330
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 70
COMPARABLE RESIDENTIAL VACANT LAND SALE
PID: 75-691-0616 Comparable No:
6
Property 10126 176th Avenue NW Grantee:
Grandemoore Homes, Inc.
Address: Grantor:
Rosalyn Milbrandt
City: Elk River, MN Present Use:
Vacant
County: Sherburne Zoning:
R-1C; Single Family Residential
Zip Code: 55330 Highest & Best Use:
Residential
Legal Description: Lot 8, Block 6; Park Pointe
Date of Sale: 03/17/2017 Confirmed Sale Price: $40,000
Special Assessments Assumed: $0
Sale Price Including Assessments: $40,000
Financing: Conventional
Property Rights Conveyed: Fee
Grantee Confirmed: Grandemoore Homes, Inc.
Phone: 612-237-6032
Grantor Confirmed: Rosalyn Milbrandt
Phone: 763-416-4396
Broker Confirmed: Darrell Krueger; Rich's Realty, Inc.
Phone: 612-961-3555
Other: Sherburne County Assessor
Phone: 763-765-4900
Confirmed By: Eric Montague
Date: 02/24/2020
Sewer: Municipal Water: Municipal
Sidewalk: None
Curb & Gutter: Yes Street Surface: Bituminous
Other: None
Dimensions: 90'x135'x90'xl32' Area: 12,048 SF
Shape: Rectangular
Frontage: +/- 90'/176th Ave. Depth: 135'
Topo: Level
Improvements: None
Descriptive Data: Vacant residential land sale, neighborhood of newer homes, wooded site, non -corner lot,
across street from small park
Per Site: $40,000
Notes: None
Sale Price Breakdown
Per Front Foot: $444 Per SF/Acre: $3.32/SF
Comments
MLS #4770565 — 26 DOM; eCRV #630827; Older vacant land sale southeast of subject, across street from
Comp #1, purchased by builder, new home built after sale, appears to be a good arm's length sale
Directions to Property
Hwy 10 to 17Pt Ave. (Twin Lakes Rd), east to 175th Ave, east to 176th Ave NW, north to 10126 on right; +/-
2.74 mi SE of subject
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 71
COMPARABLE SALE #6
10126 17611 Avenue NW, Elk River, MN 55330
S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 72
Miller, Jessica
From: Allard, Tina
Sent: Tuesday, April 28, 2020 8:52 AM
To: Miller, Jessica
Subject: FW: [EXTERNAL] Board of Appeal
Attachments: PetSma rt.2020.RP.AA_Q1 -UPDATED. pdf
From: Portner, Cal <CPortner@ElkRiverMN.gov>
Sent: Monday, April 27, 2020 5:31 PM
To:'Krista.thoe@co.sherburne.mn.us'<Krista.thoe@co.sherburne.mn.us>; 'Michelle. moen@co.sherburne.mn.us'
<Michelle.moen@co.sherburne.mn.us>;'Beth.boysen@co.sherburne.mn.us' <Beth.boysen@co.sherburne.mn.us>;
Allard, Tina <tallard@ElkRiverMN.gov>
Subject: FW: [EXTERNAL] Board of Appeal
From: Courtney Simmons <Caa_.artngyS@pivotaltax.com>
Sent: Monday, April 27, 2020 5:28 PM
To: Portner, Cal <C ortn_ r@_EIklF iverM.Neov_>
Cc: Appeals <ppeals 1 ivotaltax.com>
Subject: [EXTERNAL] Board of Appeal
To Whom It May Concern,
Pivotal Tax Solutions would like to appeal the current valuation for the subject property listed below. Current market
and economic conditions support a lower value. I have attached our Agent Authorization (POA) form signed by the
taxpayer, PetSmart, Inc, that grants Pivotal authority to file on their behalf.
Please provide confirmation that our request has been accepted, as well as, notify us of any meeting scheduled for
review with the Assessor's Office.
Parcel # Situs Address Property Owner
75-849-0105 18050 Zane Street NW Marcia Davidson Family TR
Elk River, MN
Please note that this same information was also sent via email to the Sherburne County assessor's office.
Should you have any questions or need additional information, don't hesitate to contact me at appeals@ ivotaltax.com
or call 480-634-6169.
Thank you,
Courtney Simmons
Administrative Supervisor, Real Property
P11 OTAL
TAX SOLUTIONS
STATE & LOCAL TAX A0VISOPS
(480) 656-5520 Direct
(480) 615-0318 Fax
f'orrrtnc v.5(a-ptvotaltax.Coin
r�rr !L, ivotaltax.com
...........................................................................................
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IRS Circular 230 Disclosure: Please be informed that any U.S. federal tax advice contained in this communication (including any
attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting, marketing or recommending to another party ony transaction or matter addressed
PETSMART
19601 North 27th Avenue • Phoenix, Arizona 85027 • 623.580•6100
Agency Authorization
Property Tax Matters
This will serve as formal authorization and notification by PetSmart Inc. and related
entities (Client) that Pivotal Tax Solutions, LLC (Pivotal) and its representatives are
hereby granted authority to act on behalf of Client in property tax matters (including
valuations, direct assessments, tax surcharges, service charges, fees and additional
assessments) for the current and all past years within the applicable statute of limitations
for the parcels listed on the attached Schedule A.
Specifically, Pivotal is delegated full authority to represent Client in negotiating,
compromising, settling or otherwise dealing with all matters relating to real property
taxes with the assessor's office, treasurer's office and/or any other relevant government
offices or agencies.
Furthermore, Pivotal is given authority to review, request and obtain copies of any and all
information (including appraisal records, tax bills and other pertinent information) held
by the Assessor, Treasurer, or any other governmental office or agency.
A photographic copy and/or a facsimile copy of this authorization are deemed to be the
equivalent of the original authorization and may be used as such. This authorization will
remain in effect until revoked by letter and signed by a corporate officer. Pivotal will
provide Client with copies of appeals when required.
Authorized and Certified by Client:
Signature:
Date: / G Z0
Name/Title: Byron Ayle / Sr. Director Real Estate Administration Phone: 623-388-
8242
(Corporate Officer)
Pivotal Lead Agent: Christopher Glidewell / 480-634-6169
Pivotal Tax Solutions, LLC
202 North Lindsay Road, Suite 201
Mesa, AZ 85213
(480) 615-0376 — Phone / (480) 615-0318 - Fax
Client: PetSmart Inc. and related entities
Agency Authorization for Calendar Year 2020 and Prior
Schedule A
These properties are Owned, Occupied, and/or Controlled by Client.
State
County
Account
Address
Owner
Location
North Anchorage Real
AK
Anchorage
006-441-27-00011
1200 N Muldoon Rd
Estate Investors LLC
2093
AK
Anchorage
013-081-57-000
601 E Dimond Blvd
2130
CT
Fairfield
5-73A-3-0.
525 Connecticut Ave
MVA HOLDINGS LLC
1173
26680 Centerview
G&I VIII PENINSULA
DE
Sussex
233-5.00-115.04
Drive
LLC
2329
95-660 Lanikuhana
MILILANI TOWN
HI
Honolulu
950530010000
Ave
CENTER LLC
2180
IL
Cook - Evanston
10-24-310-050-0000
2221 Oakton Ave
Petsmart Inc
427
046-074-17-0-30-03-
Cole PM Overland
KS
Johnson
003.00-0
11501 Metcalf Ave
Park KS LLC
237
081-216-24-0-20-01-
AEI National Property
KS
Riley
003.00-0
805 S Seth Child Rd
Income Fund VII LP
2383
109-31-0-11-00-001-
KS
Sedgwick
00
3615 N Rock Rd
PETSMART #245
245
118-27-0-21-03-013-
AEI National Income
KS
Sedgwick
00
11739 E Kellogg Dr
Property Fund VII LP
2370
KS
Shawnee
1420403008001000
2020 SW Westport Dr
244
ANIMAL PROPERTIES
KY
Jefferson
003905440000
2815 Watterson Trail
LLC
3954
2175 Lantern Ridge
Richmond Centre FCA
KY
Madison
0042-0010-0020
Drive
LLC
2184
250 Grossman Dr.,
Cole MP PM Portfolio
MA
Norfolk - Braintree
201943
Unit 3
LLC
790
Worcester -
AEI National Income
MA
Leominster
0567-00014-00000
89 Commercial Rd
Property
1747
9041 Snowden Square
MD
Howard
06-545165
Dr
Snowden 156 LLC
361
MD
Montgomery
16 05 03268295
12020 Cherry Hill Rd
Springs Sundar LLC
1006
PETSMART
GERMANTOWN
MD
Montgomery
16-02-03124705
20924 Frederick Rd
BUSINESS TRUST
363
Cole MP PM Portfolio
MD
Prince George's
17123114931
6005 Oxon Hill Road
LLC
454
MD
Prince George's
15175-410-055-D1
4500 Mitchellville Rd
Dorsey Run PM LLC
358
MD
Wicomico
05-129858
105 E Northpoint Blvd
RCG-SALISBURY LLC
456
COACHELLA SELF
MI
Livingston - Genoa
4711-05-400-051
1072 S Latson Rd
STORAGE LLC
3036
Client: PetSmart Inc. and related entities
Agency Authorization for Calendar Year 2020 and Prior
Daniel G Kamin
MI
Macomb - Roseville
14-09-226-016
20530 13 Mile Rd
Roseville LLC
685
Oakland -
Cole PM Commerce
MI
Commerce
E-17-36-400-025
385 Haggerty Hwy
MI / PetSm art #686
686
St. Clair - Fort
4485 24th Avenue
MI
Gratiot
74-20-021-2016-010
Bldg 200
VOLANT I LLC
1865
MI
Wayne - Northville
77-048-01-0011-000
17677 Haggerty Rd
688
MI
Wayne - Taylor
60-089-01-0592-322
23271 Eureka Rd
Cole PM Taylor MI LLC
689
Hennepin - Eden
COLE PM EDEN
MN
Prairie
14-116-22-41-0009
11200 Prairie Lakes Dr
PRAIRIE MN LLC
458
MN
Ramsey
11-29-22-31-0057
2370 White Bear Ave
Petsmart Inc
461
MN
Wright
155-220-001010
1425 7th St. E
AX TC RETAIL LP
1719
Marcia Davidson
MN
Sherburne
75-849-0105
18050 ZANE ST NW
Family TR
2754
3712-18-30-3022-
CRICPETS HICKORY
NC
Catawba
0000
1610 8th St Dr SE
TRUST
418
NC
Dare
027934000
2210 S Croatan Hwy
Satterfield Landing Llc
2212
VEREIT PM
NC
Davidson
1134200000024N
155 Lowes Blvd
LEXINGTON NC LLC
2730
2800 E. Millbrook
ELIAS PROPERTIES
NC
Wake
0206614
Road
RALIEGH LLC
0594
1514 Winkler Mill
Cole PM Wilkesboro
NC
Wilkes
1508078
Extension
NC, LLC
2228
HULL FAMILY
ND
Cass
02-0082-00020-000
1630 East 13th Ave
PARTNERSHIP LLC
1502
HENDON PRINCETON
NJ
Mercer
2390122
111 Nassau Park Blvd
ASSOC. - PROP. TAX
577
190 Route 10 West,
NJ
Morris
9675
190 Route 10
LLC
1488
1020 062 073 051
8070 Academy Road
NM
Bernalillo
30114
NE
1599
1-016-061-348-143-
1424 Mercantile Ave
NM
Bernalillo
40110
NE
Pet Merc LLC
1489
1-211-013-490-108-
SIMONCRE CARP XIII
NM
Curry
00
601 Texas St.
LLC
3099
AEI NATL INCOME
PROPERTY FUND VII
OH
Clermont
210736.108.
245 Rivers Edge
LP
1470
OH
Hamilton
051-0003-0278-00
3401 Alamo Ave
ABK Hamilton LLC
1237
OH
Summit
0219628
355 Howe Ave
CF PARTNERS LLC
519
ARCP MT LAWTON OK
OK
Comanche
160100013
1806 NW 82nd Street
LLC
2201
[Cole PM Edmond OK
OK
Oklahoma
18-249-1015
1921 South Broadway
LLC
217
Client: PetSmart Inc. and related entities
Agency Authorization for Calendar Year 2020 and Prior
Breihan, Donald W Tr
Breihan Family Tr &
OK
Tulsa
99327-93-27-20720
5418 East 41st Street
Richard R
219
0412-A-00001-0000-
Cole PM Pittsburgh PA
PA
Allegheny
00
420 Home Dr
LLC
586
AGREE RAPID CITY SD
SD
Pennington
2025152008
925 Disk Drive
LLC
1504
Campbell -
4026-B Wards Rd Ste
VA
Lynchburg
257-05-015
C
SMBC Lynchburg, LLC
1030
VA
Fairfax
0294 02 A
8204 Leesburg Pike
Benlin Tysons LLC
2214
12971 Fair Lakes
VA
Fairfax
0552 04 0020
Shopping Center
T and M Investors IV
441
Fredericksburg -
1421 Carl D Silver
Cole PM
VA
City of
7769-84-0141
Pkwy
Fredericksburg VA LLC
444
4749 Valley View Blvd
VA
Roanoke City
2250107
NW
Troy Lynne A
677
251-0708-271-0113-
AEI Net Lease
WI
Dane - Madison
3
8210 Plaza Dr
Portfolio VI DST
605
251-0810-272-0623-
AEI National Income
WI
Dane - Madison
5
2216 East Springs Dr
Prop Fund VIII
604
BOU RAXIS
Milwaukee -
PROPERTIES (BUDGET
WI
Greenfield
6179975030
5005 S 74th Street
S108)
1631
From: Allard, Tina
To: Miller. Jessica
Subject: FW: [EXTERNAL] 18% property tax increase 75-532-0244
Date: Tuesday, April 28, 2020 12:33:04 PM
Tina Allard
City of Elk River — City Clerk
13065 Orono Parkway, Elk River, MN 55330
763.635.1003 E1kRiverMN.gov
-----Original Message -----
From: Portner, Cal <CPortner@ElkRiverMN.gov>
Sent: Tuesday, April 28, 2020 12:32 PM
To: Allard, Tina <tallard@ElkRiverMN.gov>
Subject: FW: [EXTERNAL] 18% property tax increase 75-532-0244
This was the last one. Not sure I copied you.
-----Original Message -----
From: KATHERINE PALMER
Sent: Monday, April 27, 2020 6:25 PM
To: Portner, Cal <CPortner@ElkRiverMN.gov>
Subject: [EXTERNAL] 18% property tax increase 75-532-0244
I believe my property increase is in excess due to homestead exemption and and the increase of the market value
No improvements have been made beyond painting interior rooms. How can I be experiencing such a high increase
in one year? 10% seems more reasonable for one year.
Kathy Palmer
Sent from my Whone