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7.1.A. SR 10-16-2006 City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Administration October 16, 2006 Item Description A raisals for Libra Item Number 7.1.A. Prepared by Bill Maertz, Parks and Recreation Director Reviewed by Lori ohnson, Ci Administrator Introduction Council directed staff to seek appraisals of the Elk River Library and adjacent city owned properties. Attached please fInd summaries of the appraisals for the Library, single family residence at 1217 5th St. and the vacant residential lot at 1221 5th St. If a Council member would like a full copy of the appraisal please contact Lori Johnson or Bill Maertz and one will be provided before the October 16th Council meeting. Discussion The appraisal results are as follows: . Library - $1,050,000 . House at 1217 5th St. -$185,000 . Vacant lot at 1221 5th St -$50,000 Financial Impact The library building, at it's current size, meets parking requirements and therefore the two adjacent properties could be sold with no impact to alternate Library building uses. Attachments Summaries of three appraisals Action Requested None Council Action Motion by _ Second by _ Vote Follow Up C: \Documents and Settings \ tallard\Local Settings \ Temporary Internet Files \ OLKF\ 7 1 A Appraisals.doc I I I I I I I I I SUMMARY APPRAISAL REPORT PROPERTY Elk River Public Library 413 Proctor Avenue NW. Elk River,MN 55330 PREPARED FOR City of Elk River Attn: William Maertz, Parks Director 13065 Orono Parkway Elk River, MN 55330 DATE September 18, 2006 NAGELL APPRAISAL & CONSULTING Molly J. Lewis, Appraiser William R. Waytas, Appraiser 7515 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55426 TELEPHONE (952) 544-8966 FAX NO. (952) 544-8969 File # G0608006 I I I I I I I I I I I NAGELL APPRAISAL & CONSULTING 7515 Wayzata Blvd. #115 Minneapolis, MN 55426 Established in 1968 Minneapolis: 952-544-8966 St. Paul: 651-209-6159 Central Fax: 952-544-8969 City of Elk River Attn: William Maertz, Parks Director 13065 Orono Parkway Elk River, MN 55330 October 4, 2006 Dear Mr. Maertz: In accordance with your request, a summary appraisal report has been made on the following described property: Subject Property: 413 Proctor Avenue NW, Elk River The property is legally described herein. The appraisal assumes the property meets all current environmental standards. The appraisal analysis and conclusions are subject to certain limiting conditions and assumptions described herein. As a result of my experience, it is our opinion that the current as-is market value of the subject property, as of September 18, 2006 is: FEE SIMPLE MARKET VALUE: $1,050,000 The accompanying report contains data secured from my personal investigation and from sources considered to be reliable; however, correctness is not guaranteed. To the best of my knowledge and belief, the statements contained in this report are true and correct. Neither my employment to make this appraisal, nor the compensation, is contingent upon the value reported. This report has been prepared in conformity with the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute and appraisal standards set forth by Uniform Standards of Professional Appraisal Practice. www.callnagell.com Sincerely, -1Vl~~ Molly J. Lewis Appraiser MN 20391975 111 SUMMARY OF IMPORTANT FACTS & CONCLUSIONS Front View of Subject Location: 413 Proctor Avenue NW City I County: Appraisal Report: Current Use: Extraordinary Assumptions & Hypothetical Conditions: Site Size: Elk River I Sherburne Summary Report Public Library None; See report for standard assumptions GBA: 50,529 SF (1.16 acres), per county 9,808 SF Highest & Best Use: Zoning: Property Rights Appraised: Personal Property: Cost Approach: Sales Comparison Approach: Income Approach: Current use with potential for conversion R-1c, Single-Family Residential Fee Simple No business value or personal property included. $1,063,000 $1,049,000 $1,028,000 Final Market Value: Nagell Appraisal & Consulting: 952-544-8966 I www.callnagell.com 1 Nagell Appraisal & Consulting, Inc. File No. G0608009 APPRAISAL OF SINGLE FAMILY RESIDENCE LOCATED AT: 1217 - 5th Street NW Elk River, MN 55330 FOR: City of Elk River 13065 Orono Parkway Elk River, MN 55330 BORROWER: N/A AS OF: September 28, 2006 BY: Molly J. Lewis Appraiser 7515 Wayzata Boulevard, Suite #115, Minneapolis, MN 55426 Telephone: 952-544-8966 Fax: 952-544-8969 ~ Nagell Appraisal & Consulting, Inc. File No. G0608009 / September 29, 2006 City of Elk River Attn: William Maertz, Parks Director 13065 Orono Parkway Elk River, MN 55330 File Number: G0608009 Dear Mr. Maertz: In accordance with your request, I have personally inspected and appraised the real property at: 1217 - 5th Street NW Elk River, MN 55330 The purpose of this appraisal is to develop an opinion of the market value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the estimated market value of the property as of September 28,2006 is: $185,000 One Hundred Eighty-Five Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final estimate of value, descriptive photographs, limiting conditions and appropriate certifications. Sincerely, Mm1!!:!b ~ Appraiser MN License #20391975 ~~.:e~? William R. Waytas, SRA, CRP Certified General MN License #4000813 NAGELL APPRAISAL & CONSULTING COMPANY, INC. The purpose of this appraisal is for the potential negotiatedsale of the subject. 7515Wayzata Boulevard, Suite #115, Minneapolis, MN 55426 Telephone: 952-544-8966 Fax: 952-544-8969 --'-._--.,~ Nagell Appraisal & Consulting, Inc. File No. G0608008 APPRAISAL OF VACANT RESIDENTIAL LOT LOCATED AT: 1221 - 5th Street NW Elk River, MN 55330 FOR: City of Elk River 13065 Orono Parkway Elk River, MN 55330 BORROWER: N/A AS OF: September 18,2006 BY: Molly J. Lewis Appraiser 7515 Wayzata Boulevard, Suite #115, Minneapolis, MN 55426 Telephone: 952-544-8966 Fax: 952-544-8969 Nagell Appraisal & Consulting, Inc. File No. G0608008 September 29, 2006 City of Elk River Attn: William Maertz, Parks Director 13065 Orono Parkway Elk River, MN 55330 File Number: G0608008 Dear Mr. Maertz: In accordance with your request, I have personally inspected and appraised the real property at: 1221 - 5th Street NW Elk River, MN 55330 The purpose of this appraisal is to develop an opinion of the market value of the subject property, as vacant. The property rights appraised are the fee simple interest in the site. In my opinion, the estimated market value of the property as of September 18,2006 is: $50,000 Fifty Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final estimate of value, descriptive photographs, limiting conditions and appropriate certifications. Sincerely, MOJ!}~ ~ Appraiser MN License #20391975 pY~~~? William R. Waytas, SRA, CRP Certified General MN License #4000813 NAGELL APPRAISAL & CONSULTING COMPANY, INC. The purpose of this appraisal is to estimate market value for possible sale of the property. 7515 Wayzata Boulevard, Suite #115, Minneapolis, MN 55426 Telephone: 952-544-8966 Fax: 952-544-8969