6.6. SR 10-06-2008p/i
Elk y,~~.~~~ ~ rts~~
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River
REQUEST FOR ACTION
To Item Number
Ci Council 6.6.
Agenda Section Meeting Date Prepared by
Administration October 6, 2008 Lori Johnson, Ci Administrator
Item Description Reviewed by
Update on Gateway Business Park Appraisal and Request for
Additional Appraisal Services Reviewed by
Action Requested
Authorize additional appraisal services to complete a separate appraisal for property in the Gateway
Business Park east of Ulysses and south of 171"Avenue (that has frontage on 171~~.
Background/Discussion
In July, the Council hired Nagell Appraisal & Consulting to conduct an appraisal of the 70 acres known
as Gateway Business Park. The appraisal was to determine a "current market value of the property as is,
as it relates to highest and best use." At the time that appraisal was authorized, segregating the 171y`
Avenue commercial piece and determining its true property value was not specifically identified in the
scope of the original appraisal. The Council raised a question about this property at the July meeting, and
staff's response was that it would be information the appraisers could possibly provide based on the data
from the appraisal of the 70 acres.
Cathy Mehelich, Director of Economic Development, has spoken with representatives of Nagell
Appraisal & Consulting in attempt to have them verbally provide an estimate of the value of a the
property along 171~t . They have indicated that additional research is required to determine the value
because this property's value would be determined based on a different set of comparisons than the larger
parcel and it would be valued as improved property not raw land. Nagell Appraisal and Consulting has
submitted a proposal of $600 to conduct a separate appraisal for this property.
Financial Impact
$600.00 from Development Fund
Attachments
^ Proposal from Nagell Appraisal & Consulting
ACtIOn Motion by Second by Vote
Follow Up
S:\Council\Loxi\2008\Update on Gateway Appraisal 10 06 08.doc
AGELL PRISAL CONSULTING
7515 Wayzata Blvd. #115 Minneapolis: 952-544-8966
Minneapolis, MN 55426 St. Paul 651-209-6159
Established in 1968 Central Fax 952-544-8969
City of Elk River September 15, 2008
Attn: Catherine Mehelich, Director of Economic Development
13065 Orono Parkway
Elk River, MN 55330
E: Appraisal of land (SEC of 171St Ave. NW & Proposed Road (just east of Hwy 169)
Part of PID 75-011-2400
Elk River, MN
Dear Ms. Mehelich:
Thank you for your interest in obtaining appraisal services regarding the property above. Per our
conversation, you indicated an appraisal report with the following research and analysis is needed.
Report UseNalue Type: The report use is for possible sale. Current market value "as is" as it
relates to Highest and Best Use per Uniform Standards of Professional Appraisal Practice will be
provided.
Property Description: To be a 5 acre split of commercial parcel with city water and sewer in on
171St Avenue. or~tact t'or cress: N/A.
Scope of Report: (1) (1) Inspection of the property and view the neighborhood. (2) Report the
physical and/or economic factors that could affect the property. (3) Complete research and
analysis of pertinent market data. The sales approach to value will be applied. (4) Where
appropriate, comparables will be confirmed, viewed and be listed on an adjustment grid with
explanations. (5) Report findings and conclusions.
Report Format: A Summary Report (narrative format) will be used. It has a summary of
statements of the data, analysis and conclusions. Appropriate photos, maps and exhibits are
included. Two hard copies of the report provided.
Fee: The fee is 600. City named above of responsible for payment.
ue ate; Appraisal report can be completed in about 2 weeks from the date of signed
confirmation.
I .'nation needs y the a raiser: Already provided.
Our company has 10 employees and has been in business since 1968 and has sufficient
knowledge, experience, education and resources to competently complete this assignment.
Neither the employment to make the appraisal, nor the compensation for it, is contingent upon the
appraised value of the property. If you agree to the above terms, please sign below and return by
fax or mail. If you have any additional questions, please do not hesitate to contact me.
Sincerely,
Signature,
William R. Waytas, SRA, CRP
Certified General 4000813, MN Date
www.callnagell.com