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HomeMy WebLinkAboutSummary of Important Facts & Conclusions - Proposed Acquisition - City of Denton v. Dobson Properties, LLCSUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Name Location Intended User Intended Use Whole Property Land Area Acquisition - PROPOSED ACQUISITION CITY OF DENTON V. DOBSON PROPERTIES, LLC Temporary Easement Highest & Best Use As Vacant Highest & Best Use As Improved Final Opinions of Value Whole Property (Market Value, As Improved) Remainder - Before Taking Remainder - After Taking Indicated Damages Cost To Cure Temporary Easement Total Compensation Dobson Properties 1701 Malone Street, Denton, Denton County, Texas NW/c US Highway 380 & Malone Street Burford & Ryburn, LLP and the City of Denton Easement Acquisition 0.6778 Acres (29,529 Square Feet) 0.0860 Acres (3,765 Square Feet) Retail/Restaurant Restaurant $880,000 $880,000 $880,000 $ 0 $ 0 $ 5,271 $ 5,271 Effective Date of the Appraisal October 7, 2009 Interest Appraised Fee Simple and Easement Estate In accordance with Standard Rule 1-2(e), only the land and site improvements, if any, are valued in this appraisal. The appraisal report on this property, prepared by Pyles Whatley Corporation as of September 22, 2009, is incorporated by reference. The unaltered data, descriptions, and conclusions in that report shall be taken and considered as a part of this summary the same as if these were fully set out herein. Easement Value: The land is valued at $14.00 per square foot in fee simple. The duration of the temporary easement to be acquired is one year. The temporary easement is valued at 10.0% of fee simple value annually, or $5,271. Calculations: 3,765 square feet x $14.00 x 0.100 x 1-year = $5,271 TABLE OF CONTENTS Page Subject Identification 3 Scope & Procedure 3 Extraordinary Assumptions/Hypothetical Conditions 4 Subject Photographs 5 Location Map 21 Aerial Photograph 22 Description of the Whole Property 23 Site Analysis 23 Improvement Analysis 24 Tax Map 25 Real Estate Taxes 26 Whole Property Value 27 Highest & Best Use 28 Land Value 29 Valuation of the Temporary Easement 31 Parcel Sketch 32 Remainder After Value 33 Remainder After the Acquisition 34 Highest & Best Use — Remainder After 34 Compensation Summary 35 Field Notes 36 Tax Information 37 Zoning Map 39 Flood Map 40 Land Sales 41 SUBJECT IDENTIFICATION & OWNERSHIP/HISTORY Identification: The subject is located in the city of Denton, Texas, in Denton County. The property is situated on the northwest corner of University Drive and Malone Street, and is physically addressed as 1701 Malone Street, Denton, Texas 76201. The site is improved with a fast food restaurant and associated site improvements. The immediate vicinity consists of retail properties and tracts of vacant land. Legal Description: The property is legally described as land located in the Robert Beaumont Survey, Abstract No. 31, and being Lot 2 in the Dobson Addition, city of Denton, Denton County, Texas. Ownership/Subject History: According to Denton Appraisal District records, Dobson Properties Partnership is the owner of record since 1987. A title commitment was provided and reviewed; however, a complete deed history was not included. The property is not currently under contract or listed for sale. Occupancy or tenancy details and operating statements are not available. Currently, the City of Denton seeks to acquire a portion of the subject as a temporary easement for construction of public utilities and access. Per the enclosed survey, the part to be acquired as a temporary construction easement is stated at 0.086 acres, or 3,765 square feet. Project duration is estimated at one year. Whole Property 0.6778 AC or 29,529 SF Permanent Easement 0.0 AC or 0 SF Temporary Easement 0.0860 AC or 3,765 SF SCOPE OF THE APPRAISAL/APPRAISAL PROCEDURE For this report, the area was inspected and the highest and best use analyzed considering the factors of physically possible, legally permissible, financially feasible, and maximally productive. The subject is a 0.6778-acre tract of land improved with a fast food restaurant and associated site improvements. The subject is valued by market comparison of similar properties. The subject market was researched for all pertinent sales data relating to the subject valuation. This data was analyzed and adjusted using commonly accepted appraisal techniques. The primary valuation issues are the proposed temporary easement acquisition comprised of land and site improvements. The acquisition area is a sufficient distance from the existing improvements and no adverse impact is anticipated. For purposes of the appraisal of the subject, the whole property is identified as and comprised of the subject land and all improvements. The land is valued by market comparison with similar tracts of land. Site improvements are valued based on replacement costs less depreciation. The cost approach, sales comparison approach, and income capitalization approach are applied using standard appraisal practices to arrive at an indication of market value for the subject in the whole property condition and in the remainder after the acquisition. Personal property, fixtures, or equipment are not included in the valuation of the subject. The value conclusions in regards to the part acquired and total compensation to the property owner are comprised of real estate only. Extraordinary Assumptions/Hypothetical Conditions: The Uniform Standards of Professional Appraisal Practice require the disclosure of hypothetical conditions and extraordinary assumptions when employed in the development of an appraisal. As defined in the Uniform Standards of Professional Appraisal Practice, a hypothetical condition is "that which is contrary to what exists but is supposed for the purpose of analysis." As defined in the Uniform Standards of Professional Appraisal Practice, an extraordinary assumption is "an assumption, directly related to a specific assignment, which if found to be false, could alter the appraiser's opinions or conclusions." The subject is appraised conditioned upon the following: It is assumed the City of Denton will, where necessary, and without burden to the subject owner, negotiate the successful movement of any non -landowner items that are situated within the acquisition area, such as utility lines and appurtenances. A legal opinion of the deed covering the subject property is not available. It is specifically assumed that the deed does not contain any right, restrictions, or reservations that would affect the value conclusions of this report. The City of Denton will: make accommodations for signs and other improvements located within the temporary easement so that these improvements will be preserved; paved areas will not be disrupted; provide alternate ingress and egress for the drive -through lane, if needed; it is assumed the city has obtained all necessary agreements to provide such alternate access; it is assumed the subject's internal circulation and access will not be affected. The subject is appraised under the extraordinary assumption that, in the remainder situation, if any part of the subject property is caused to be in violation of or contrary to the regulations of any governmental entity having authority over it, the remainder property or its owner will not be penalized and no part of the subject improvements will require removal, alteration, or relocation, and the remainder property will be a legal non -conforming use. No legal reasoning or analysis is implied in regard to the extraordinary assumptions or hypothetical conditions. A qualified attorney should be consulted for an opinion of the status of legal title and rights to the subject if such questions arise. The above are set forth for appraisal purposes The reader should be aware that in the event that any of the above proves false inappropriate or improperly applied the conclusions of this report could be substantially changed or voided. 4 PHOTOGRAPHS OF SUBJECT PROPERTY Parcel No.: TCE 32 Date Taken: November 2, 2007 1. Point from which taken: Malone Street. Local Address: 1701 Malone Street Taken By: Fee Appraiser Looking: West along proposed easement. 2. Point from which taken: Subject property. Looking: West along proposed easement. 3. Point from which taken: Subject property. Looking: East along proposed easement. 4. Point from which taken: Adjacent property. Looking: East along proposed easement. 5. Point from which taken: University Drive. Looking: North towards subject. 6. Point from which taken: Subject property. Looking: North along west side of site. 10 Parcel No.: TCE 32 Local Address: 1701 Malone Street Date Taken: June 8, 2009 Taken By: Fee Appraiser 7. Point from which taken: Malone Street. Looking: West along proposed easement. 11 8. Point from which taken: Malone Street. Looking: West at subject property. 12 9. Point from which taken: Adjacent property. Looking: East along proposed easement. 13 10. Point from which taken: Subject property. Looking: North at improvements beyond proposed easement. 14 Parcel No.: TCE 32 Local Address: 1701 Malone Street Date Taken: September 22, 2009 Taken By: Fee Appraiser 11. Point from which taken: Malone Street. Looking: West along proposed easement. 15 12. Point from which taken: Malone Street. Looking: West at subject property. 16 Parcel No.: TCE 32 Local Address: 1701 Malone Street Date Taken: June 8, 2009 Taken By: Fee Appraiser 13. Point from which taken: Adjacent property. Looking: East along proposed easement. 17 14. Point from which taken: Subject property. Looking: North at improvements beyond proposed easement. 18 15. Point from which taken: University Drive. Looking: Westerly along University Drive. 19 16. Point from which taken: University Drive. Looking: Easterly along University Drive. 20 LOCATION MAP O �:o _ wQSpk,r BOWLING,,GR_ EN ST O� l f-) YAN RBILT ST N VCT ENBRI a DR el V I JSON Sr 11 21 AERIAL PHOTOGRAPH Orange line represents approximate location of proposed temporary easement. 22 DESCRIPTION OF THE WHOLE PROPERTY Subject: The whole property land area is comprised of a rectangular tract of 0.6778 acres (29,529 square feet), situated on the northwest corner of University Drive and Malone Street, in Denton, Texas. Improvements: The site is improved with a 2,875 square foot fast food restaurant with drive through service, operating as Whataburger. Site improvements consist of landscaping, concrete and asphalt paving, signage, and lighting. SITE ANALYSIS Site: The whole property land area is comprised of a rectangular tract of 0.6778 acres (29,529 square feet). The subject tract fronts the northerly side of University Drive approximately 190 feet, and fronts the westerly side of Malone Street approximately 170 feet. Subject Vicinity and Abutting Uses: The subject is located along University Drive, a commercialized thoroughfare from Interstate Highway 35 on the west to US Highway 77 on the east. The immediate vicinity is primarily retail, including fast food restaurants and neighborhood shopping centers. New developments completed within the past few years are west of the subject, including an Albertson's anchored retail center, Kwik-Kar Lube, and Kwik-Kar Wash. Rayzor Ranch is a new development under construction along University Drive east of Interstate Highway 35. Rayzor Ranch will include a Town Square with an urban village theme, including over one million square feet of retail space. Also part of the Rayzor Ranch development will be medical offices, a 68-acre residential development featuring single-family homes, town homes, condominiums, an active adult living campus, a continuing care retirement center and an upscale apartment community. The plan also calls for a 10-story upscale hotel, and a power center anchored by a Wal-Mart Super Center. The subject abuts an office building to the west, a drainage ditch to the south, and a church to the north. The south side of University Drive is improved with retail properties. The vicinity includes several competing fast food restaurants. The east side of Malone Street is a neighborhood shopping center. Residential properties are located north and south of the commercial corridor along University Drive. Surrounding land uses are not considered to adversely affect the subject. Linkages: The subject is accessible to arterial linkages and distances to employment centers, shopping centers, and schools are considered within reason and typical for suburban locales. In terms of travel time and actual distances by road, the subject property is within community standards. The subject is one mile west of US Highway 77 and 1.4 miles east of Interstate Highway 35. Traffic counts along University Boulevard are 23,000 vehicles per day from Carroll Boulevard to Malone Street and 25,770 vehicles per day from Malone Street to Interstate Highway 35, according to the Texas Department of Transportation. Access: Access to and from the subject locale is adequate and is primarily served by University Drive and Malone Street. The subject site is accessible via two curb cuts along the west line of Malone Street, a two-lane residential street, and a common drive along the western boundary with the adjacent property. The subject is not accessible from University Drive due to the drainage ditch along the frontage. Overall, access for the neighborhood is rated as good, and for the subject, average. Visibility of the subject is rated as good. Topography: The subject site is near level and at road grade with University Drive and Malone Street. According to the enclosed flood map, Map No. 48121C0360E, dated April 2, 1997, the subject is located in Zone "X". The Zone X flood zone is defined as areas of 100-year flooding with depths of less than one foot, or areas of 100-year flooding with drainage areas of less than one square mile. This is not a guaranty or warranty that flooding will not occur. A current survey is recommended to accurately determine the flood zone status of the subject. Soils: Soils in this area vary, and have been known to require specific engineering considerations. However this is considered typical for the area, and no unusually unstable soil -bearing capacities are known. 23 Utility: The tract is of sufficient size to be economically adaptable for development and benefits from adequate frontage and accessibility. With appropriate design and engineering of the tract, the site imposes no unusual or anticipated development problems. Utilities/Community Services: Water and sanitary sewerage are available from the City of Denton. Natural gas service is available by Atmos Energy. Electricity is available from various providers, AT&T provides telephone service in the area and cable television is by Time Warner. The Denton Police and Fire Departments, and the Denton Independent School District serve the property. Easements and Deed Restrictions: Easements noted on the survey include 16-foot utility easements along the southern and western sides of the site. These types of easements are typical for development and generally do not adversely affect properties. This should not be considered as a guaranty or warranty, however, that adverse easements do not exist. Deed restrictions can limit or restrict the use and physical characteristics of a property and its improvements. A legal opinion of the deed has not been provided. Easements and deed restrictions are a legal matter, and normally only a title search by a title attorney discovers with certainty any easements or deed restrictions. Thus, it is recommended that a title search be made if any questions regarding these matters arise. A drainage ditch is located adjacent to the southern line of the site along the University Drive frontage. Zoning: The property is zoned "CM-G" Commercial Mixed Use - General, by the city of Denton. The CM-G districts provide the necessary shopping, services, recreational, employment, and institutional facilities that are required and supported by the surrounding community. The buildings within this district range from one to three stories, with a minimum of 20% landscaping. There is no front yard setback in this zoning district. IMPROVEMENT ANALYSIS IMPROVEMENTS: The improvements are situated near the central portion of the site. The site is improved with a 2,875 square foot fast food restaurant constructed in 1974. Site improvements consist of landscaping, concrete and asphalt paving, lighting, and signage. The restaurant provides drive -through service under a canopy along the southerly side of the building. CONSTRUCTION, CONDITION & AGE: The restaurant is on a concrete slab foundation, with concrete block and brick exterior, and a pitched, metal roof. The improvements have been adequately maintained and are in average condition with no noticeable deferred maintenance. Actual age is approximately 35 years, and effective age is estimated at ten years with 30 years remaining useful life. The typical life of a similar structure is 40 years according to Marshall Valuation Service, a national index for replacement costs of buildings and related improvements, published by Marshall & Swift, LP. Incurable physical depreciation, a result of the aging process, is estimated at 25% (10 - 40 = 0.25). No functional or economic obsolescence is noted. No items of deferred maintenance are observable. OCCUPANCY: Either the owner or a tenant occupies the property, operating as Whataburger. Tenancy information is not available. PARKING: The site has 37 striped parking spaces. The parking requirement for the subject improvements is one space for every 100 square feet of leasable floor area, or 29 total spaces. The parking, access and circulation are adequate under the current requirements. 24 TAX MAP I J� I R33875 i o R33871 li I R39375 R39373 SAIIAl P 7 sys� - -- w UNIVERSITY OR w UNIVERSITY OR ROW'` J R33810 R40112 R40107 R33817 R33815 I'. R40095 0 21211 041 Real Estate Taxes The Texas legislature created a system of centralized appraisal districts for each Texas County so that all real estate within a given county is valued for tax purposes through a standard appraisal process. Property assessments are based on market value. Property valuations under the central appraisal district system became effective in 1982. Based on the ad valorem tax appraisal, various tax districts levy annual taxes on property located within their respective districts. Typical taxing jurisdictions include assessments from the county, city, and school districts in which the property is located. The total ad valorem tax burden is the sum of the assessments for the various taxing authorities. The subject property is situated within the city limits of Denton and falls within the taxing jurisdictions of the city of Denton, Denton County, and Denton Independent School District. Pertinent tax rates for the subject are detailed below. City of Denton $0.666520 Denton County $0.235770 Denton ISD $1.490000 otal $2.392290 The Denton Central Appraisal District account (2009) for the subject is summarized as follows: Account Number Land Improvements Total 39373 $354,348 $199,417 $553,765 Based on the preliminary assessed value and pertinent tax rates, the subject's annual tax liability is calculated as follows: Assessed Value Tax Rate Indicated Tax Liability $553,765 x $2.392290 = $13,248 The assessed value is below the concluded market value in this appraisal. This is typically due to the valuation methods of the appraisal district. The tax assessment for the land equates to $12.00 per square foot. 26 PROPERTY VALUATION SUMMARY Whole: HIGHEST AND BEST USE ANALYSIS Part to be Acquired: ❑ Remainder After: ❑ The Highest and Best Use analysis should consider the reasonably probable and legal use of vacant land or improved property considering legally permissible, physically possible, financially feasible, and maximally productive. See attached Page 3.1. VALUATION APPROACHES The subject is a 0.6778-acre tract, improved with a fast food restaurant and associated site improvements. The subject land is valued by market comparison of similar tracts of land. The cost approach considers replacement costs of existing improvements and land value. The sales comparison approach considers the comparison of the subject with sales of other similar properties. The comparable sales are adjusted for differences as contrasted with the subject. This method represents unit prices that market participants are willing to pay. The income approach examines the subject's income producing ability in comparison to other similar properties. The result is a value indication of the subject as is. The resulting value indications are reconciled to one final opinion of value. Cost Approach.................................................................... $795,000 Sales Comparison Approach .............................................. $865,000 Income Approach............................................................... $890,000 Reconciliation of Approaches to Value: The cost approach is considered the least reliable approach, and is given the least consideration due to the age of the improvements. The sales comparison approach and the income capitalization approach are considered equally reliable due to the quality and quantity of available market data. Based on the foregoing, with emphasis on the sales comparison and income capitalization approaches, our opinion of the market value of the subject property is reconciled at $880,000. Contributory Value of Improvements (Itemized) Fast Food Restaurant Building # " ' " I $ 373,994 Paving - Asphalt $ 48,750 Paving - Concrete $ 8,850 Signage $ 18,750 Lighting $ 11,250 Landscaping $ 5,000 Total Contributory Value of Improvements $ 466,594 Land Value ........ 29,529 SF @ $14.00/SF = $413,406 ReconciledFinal Value........................................................................................................ $880,000 27 HIGHEST AND BEST USE ANALYSIS Four basic criteria are examined in estimating the Highest and Best Use of a property both as vacant and as improved. These are: a) Possible Use - the uses to which it is physically possible to put on the site in question. b) Permissible Use (Legal) - the uses that are permitted by zoning and deed restrictions on the site in question. c) Feasible Use - the possible and permissible uses that will produce any net return to the owner of the site. d) Highest and Best Use - among the feasible uses, the use that will produce the highest net return on the highest present worth. HIGHEST & BEST USE AS VACANT Possible Use: In arriving at an opinion of highest and best use for the subject, it is first necessary to determine if the physical characteristics of the site - such as soil conditions, topography, shape and frontage were favorable for development. Soil conditions vary throughout the area and sometimes require particular engineering. The topography of the tract imposes no problem to development, and the site is of sufficient size, shape, and frontage to be economically adaptable to many permissible uses. Permissible Use: The property is zoned "CM-G" Commercial Mixed Use - General, by the city of Denton. The CM-G districts provide the necessary shopping, services, recreational, employment, and institutional facilities that are required and supported by the surrounding community. The buildings within this district range from one to three stories, with a minimum of 20% landscaping. Feasible Use: The surrounding properties and land uses are considered for compatibility in determination of feasible use. Based on the land usage pattern of the surrounding area, the layout, location and frontage/visibility of the site, the most feasible use is considered to be for a retail development. Highest & Best Use: As if vacant, the location along University Drive is easily accessible with good visibility and exposure. Topography is typical for the locale, and shape and size are adequate for feasible uses. According to the enclosed flood map, the property appears to be clear of flood zones. For retail use, the location is considered good for appeal within the market. Access is rated as average. All urban utilities are available to the tract. Based on the foregoing and land use patterns, it is concluded that the highest and best use of the subject tract is for retail use. HIGHEST & BEST USE AS IMPROVED Possible Use: The improvements were originally completed circa 1974. Overall, the improvements have been adequately maintained, and have no noted deferred maintenance. The intended use of the improvements is as a fast food restaurant. The physical characteristics and accompanying amenities support the continued use as such. Permissible Use: The property is zoned "CM-G" Commercial Mixed Use - General, by the city of Denton. The CM-G districts provide the necessary shopping, services, recreational, employment, and institutional facilities that are required and supported by the surrounding community. The buildings within this district range from one to three stories, with a minimum of 20% landscaping. As such, the property is a conforming use. Feasible Use: The existing improvements have a significant amount of remaining economic life, and no other use of the improvements could provide a greater return in the current market. Highest & Best Use: The improvements are adequately maintained and have a significant amount of remaining economic life. Its current use indicates this use is feasible and is concluded as the highest and best use as improved. 28 SALES COMPARISON APPROACH Whole: ® Part to be Acquired: ❑ Remainder After: ❑ Land: ® Improved: ❑ VALUATION GRID Representative Comnarable Sales Subject Comp. No. 1 Comp. No. 2 Comp. No. 3 Grantor Denton Towne Crossing Lefebvre Property, Inc. Locust Fort Worth, LLC Grantee Steak N Shake Operations Ralph L. Mason, Revocable Trust Taco Bell of America, Inc. Date of Sale January 23, 2007 November 1, 2006 July 14, 2009 Unit Price ($/SF) $15.40 $10.46 $14.56 Relative Location 4.0 miles southeast 0.6 mile east 2.5 miles southeast Rights Conveyed Fee Simple Fee simple Fee simple Financing Cash To Seller Cash to seller Cash to seller Land Size 29,529 SF 43,843 SF 35,850 SF 37,777 SF Conditions of Sale Arm's length Arm's length Ann's length Market Conditions +3% +5% -0- Adjusted Price ($/SF) $15.86 $10.98 $14.56 Location Suburban -0- -0- -0- Physical Characteristics Access Average -0- -0- -0- Exposure Good -0- -0- -0- Zoning CM-G -0- -0- -0- Size Adequate +3% +2% +2% Topography Level -0- -0- -0- Utilities Available -0- -0- -0- Net Adjustments, J +3% +2% +2% F11,1131s,W Indicated Unit Value $16.34 $11.20 $14.85 Estimated Unit Value ($/SF) $14.00 Estimated Value by Sales Comparison Approach............................................................ Calculations: 29,529 SF x $14.00/SF = $413,406 $413,406 29 PART TO BE ACQUIRED Highest and Best Use: The part to be acquired is a temporary easement Its highest and best use is as part of the whole Property. See the following page. No property is taken in fee simple. Contributory Value of Improvements (Itemized) Total Contributory Value of Im rovements $ 0- Easement None Fee None Total Land $ 0 TOTAL VALUE AS A UNIT $ 0 REMAINDER BEFORE THE ACQUISITION Contributory Value of Improvements (Itemized)LE ' 2 Fast Food Restaurant Building $ 373,994 Asphalt Paving $ 48,750 Concrete Paving $ 8,850 Signage $ 18,750 Lighting $ 11250 Landscaping $ 5,000 Total Contributory Value of Improvements $ 466,594 Fee 29,529 SF @ $ $14.00/SF $ 413,406 Easement None Total Land $ 813,406 TOTAL AS A UNIT $ 880,000 VALUATION OF TEMPORARY CONSTRUCTION EASEMENT: The proposed acquisition is a temporary construction and access easement, comprised of 3,765 square feet, or 0.086 acres, stated, and is located along the University Drive frontage, adjacent to the northern line of an existing utility easement. The temporary easement area is approximately 188 feet long and 20 feet wide. According to the Appraisal of Real Estate, Thirteenth Edition, the safe rate is "The minimum rate of return on invested capital. Theoretically the difference between the total rate of return and the safe rate is considered a premium to compensate the investor for risk, the burden of management, and the liquidity of the capital invested; also called riskless rate or relatively riskless rate. These are often based on the prevailing rates on insured savings accounts or guaranteed government securities." Risk rate -"The annual rate of return on capital that is commensurate with the risk assumed by the investor; the rate of interest or yield necessary to attract capital." Appraisal of Real Estate, Thirteenth Edition Recent yields (June 2009) have ranged from about 1.91% for money market accounts to 3.03% for a 5-year certificate of deposit, and 2.55% to 2.71% in U.S. Treasury Bills auction. Because of the illiquidity of real estate, a significant premium is required to attract investors or account for the landowner's risk. For a temporary easement an additional 5.0% to 7.0% is considered appropriate. The temporary construction easement is required for a duration of one year. The value of the temporary easement is based on a return to land value. The value of the subject land in the whole property condition is established at $14.00 per square foot, which results in an indicated fee simple value of $52,710 for the temporary easement area (3,765 SF x $14.00). Based on typical returns for alternate real estate investments, a 10% annualized return is considered appropriate. Applying the 10% return to the land value within the temporary easement of $52,710 indicates an annual return of $5,271. Thus, a total value of $5,271 for the duration of the temporary easement is indicated. Temporary Construction Easements Size SF Price/SF Indicated Value 3,765 x $14.00 = $52,710 Indicated Value Annual Return Annual Rent $52,710 x 10% _ $5,271 Annual Rent Duration Indicated Value $5,271 x 1 Year = $5,271 The part to be acquired is a small parcel and could not be developed as a self-sustaining property. Its highest and best use is as part of the whole property. Since the area to be acquired is not an economic unit, a value estimate cannot be supported by a direct comparison with comparable data in the market. As a result, the proposed acquisition is valued as a part of the whole property. 31 PARCELSKETCH El 9 r g S4 w C�i f gq A �36 Sag" 0 E Pow or RMOUNC W UUU7y EAMWOO L-taf& WOUrPkk $6 0#40MVIAn sa-c,y V.�Or mar zo. w" ra"w"T COMMCM coNsTsucnow a&scaw *M 14cx" XT" sx. WEST UNIVERSITY DRIVE U-S. 380 V-440AU WOW FAMO%-7V-"f "'fir MWA Ut 41740" 110 - pw 417-aw4v A metes and bounds descrotion of even date occompaniv5 this dro win q August 20, 2007 •0... MCk' I-Ali*lll#'Z - • am= 32 PROPERTY VALUATION SUMMARY Whole: ❑ Part to be Acquired: ❑ Remainder After: HIGHEST AND BEST USE ANALYSIS The Highest and Best Use analysis should consider the reasonably probable and legal use of vacant land or improved property considering legally permissible, physically possible, financially feasible, and maximally productive. See attached Page 5.2. VALUATION APPROACHES In the remainder after, the subject is a 0.6778-acre tract, improved with a fast food restaurant and site improvements. The subject land is valued by market comparison of similar tracts of land. The cost approach considers replacement costs of existing improvements and land value. The sales comparison approach considers the comparison of the subject with sales of other similar properties. The comparable sales are adjusted for differences as contrasted with the subject. This method represents unit prices that market participants are willing to pay. The income approach examines the subject's income producing ability in comparison to other similar properties. The result is a value indication of the subject as is. The resulting value indications are reconciled to one final opinion of value. Cost Approach.................................................................... $795,000 Sales Comparison Approach .............................................. $865,000 IncomeApproach............................................................... $890,000 Reconciliation of Approaches to Value: The cost approach is considered the least reliable approach, and is given the least consideration due to the age of the improvements. The sales comparison approach and the income capitalization approach are considered equally reliable due to the quality and quantity of available market data. Based on the foregoing, with emphasis on the sales comparison and income capitalization approaches, our opinion of the market value of the subject property is reconciled at $880,000. Contributory Value of Improvements (Itemized) $ q 5 _ 51 r, 373,994 Fast Food Restaurant Building Paving - Asphalt $ 48,750 Paving - Concrete $ 8,850 Signage $ 18,750 Lighting $ 11,250 Landscaping $ 5,000 Total Contributory Value of Improvements $ 466,594 Land Value ........ 29,529 SF @ $14.00/SF = $413,406 ReconciledFinal Value........................................................................................................ $880,000 33 Remainder After the Acquisition: The remainder is comprised of fee simple land of 0.6778 acres, or 29,529 square feet. The proposed acquisition is off the south side of the property, adjacent to an existing utility easement. In the remainder situation, frontage along University Drive is unchanged. Access remains in the same locations as compared to the whole property. No building improvements are removed or reduced. Significant land area and dimensions remain for the property's existing use or for re -development. The temporary construction easement encompasses a small portion of the drive -through service lane, and the exit lane past the front of the building. This area is critical to the operation of the restaurant. The easement also encompasses concrete curbing, landscaping sprinklers, trees, shrubs, and other aesthetic features. Based on discussions with the City of Denton engineering department, the project is not expected to affect the improvements, or the drive -through lane. This appraisal does not include compensation for site improvements. However, the City of Denton has stated the city will reimburse the owner for any items damaged, and will replace any paving that should need to be removed during the project. It is assumed the subject's internal circulation and access will not be affected. Though 15 parking stalls are located within the existing permanent easement, adequate parking adjacent to the building is available. The subject is appraised under the extraordinary assumption that, in the remainder situation, if because of the construction any part of the subject property is caused to be in violation of or contrary to the regulations of any governmental entity having authority over it, the remainder property or its owner will not be penalized and no part of the subject improvements will require removal, alteration, or relocation, and the remainder property will be a legal non -conforming use. The City of Denton will: make accommodations for signs and other improvements located within the temporary easement so that these improvements will be preserved; paved areas will not be disrupted; provide alternate ingress and egress for the drive -through lane, if needed; it is assumed the city has obtained all necessary agreements to provide such alternate access; it is assumed the subject's internal circulation and access will not be affected. As if complete and in place, the utility project improvements are a general enhancement in the neighborhood and are not judged to enhance a specific property. The data do not support any damages to the remainder property. HIGHEST AND BEST USE — REMAINDER AFTER HIGHEST & BEST USE AS VACANT It is concluded that the highest and best use of the subject tract is for retail use. HIGHEST & BEST USE AS IMPROVED The improvements are adequately maintained and have a significant amount of remaining economic life. Its current use indicates this use is feasible and is concluded as the highest and best use as improved. 34 EXPLANATION OF DAMAGES (if any): In the after scenario, the highest and best use of the property as a restaurant continues. The subject is appraised under the extraordinary assumption that, in the remainder situation, if because of the right-of-way acquisition any part of the subject property is caused to be in violation of or contrary to the regulations of any governmental entity having authority over it, the remainder property or its owner will not be penalized and no part of the subject improvements will require removal, alteration, or relocation, and the remainder property will be considered a legal non -conforming use and/or improvements. It is further assumed that the city of Denton will ensure access to the subject property through the duration of the project. The data do not support any damages to the remainder property. COMPENSATION SUMMARY WHOLE PROPERTY: The market value of the whole property is ............................................... $880,000 PART TO BE ACQUIRED: Considered as severed land, the easement estate title to the part being acquired for highway purposes (less oil, gas and sulphur and subject to existing easements, if any, which are not to be extinguished) is................................................................................ $0 REMAINING PROPERTY: The value of the remainder immediately before the acquisition is ........... $880,000 Considering the uses to which the part acquired is to be subjected to, the market value of the remainder immediately after the acquisition is....................................................................................... $880,000 NET DAMAGES OR ENHANCEMENTS, if any.............................................................................. $ 0 COSTSTO CURE, if any.................................................................................................................... $ 0 TEMPORARY CONSTRUCTION EASEMENT............................................................................... $ 5,271 TOTALCOMPENSATION.............................................................................................................. $ 5,271 35 FIELD NOTES I W ITS V00 WOOS DESCRIPMN VA wvG a aom ocro tract of land savalwd in the P, 80ou',mont Survey, Abstract Number 31, Conlon Countx Texas, 4-w the City of Donlan. being M *�o portion of tot Z Dobson AMM acrorcOng to the plot recorded in V&uf"a 16, Page 16, Mot Records of lon COtmfy, 'Tex0s, OISO b**117 C Portion Of the tract of kwd doscnbed tit the deed to D06son ProOorties recorded in Votume 2082% POW 667. Owed Roccirds of Denton County, liur*s sod 0 086 ocre tract of land being more PartAcuiarly described as foffows COMMENCONO of the intersection of the northerly fOl-of—ay line of Oest tMioersily Drive (1,Hioway jda a variable width right-of-way) and the westerly right-cf-IFOY 1,60 Of Malone Drive (a 60* wide rot-of-woy) for the bevinning of 0 non-fon I f curve to the rot, the radius paint curves t of socurbeing situated South "78 '36* Cost a d4sto"ce at 1.12.TS3 tiewl has said inforvection point., THENCE with the westerfy right-of-way fire of 00;ond Drive uOrtheastortv aforg said rww through a central angle of 00*48*57' an arc distance of MOO feel with a chord b@Wjnq at Nora, 00*55,"* Cost and a chord distance of 16.00 foot to the northeasterlyCOOr Of 0 16 fool Wide utility easementOicrorcPhg to the plot of said tot 2, Dobson AddifAon for the PCIN MOr RCGMWC� INEWCLF with the northerly Aine of sord 16 toot wide utaity easement North 8q78'36' pest a dasfanc* of 188.07 fort 10 a Point in the easterly line of Lot 1, so;d Dobson Adetiom, INENCE' deporthlig the northerly tint of sod 16 foot wide utrify easement with the oostorty fire of sold" tot 1, Dobson Addition North 00*40*24' fast a distance of 2D00 feet to a poiqt for comer;' TH� dwoorfkV the easterly line of void Lot 1. Dobson, Addfrion 20 foot north of and paraw with the ourtherly line of sold 16 foot W;ds Willy easement South 8978*36' rost a offstance of ta&48 feet to a point i'l the westerly right-of-way lins of Aiatone Drive in a non -tangent curve to the jsf� the makes point of sold cur,** being situated` South 8839 *38' fowl a oFstancs of 1. 12J, 53 feet from said Achl 1. TH&Vcr with the **story right-of-*cy fine of mdone Drive Sauthwtstwdy along said CWW throufh a centraf 0094 of OIVT'13* an = distance of 2aOl feet with a chord bearing of .South 01'50'' West and a chOrd distance of 2aOf feet to the PCiNT 0.4' WMAWa, CONUOVINC a Computed area *7( 0,086 acres (3.765 square feet) of land, NOTE,- The bearings recited hitrein are based Upon the Texas CoordAnote System of 198,North Control Zone. xj GREGORY S, IFFLAD .................... W A M ow. 09 ^c DUNAWAY August 20, 2007 1 W• !i M 0 1i #Ii, 11MM11"11 U ' PoRnON OF LOT 2 OCKMON ADDT1014 VOLUME 16. PAGE 16 R,vzmt K Q-M. 36 TAX INFORMATION Property Details for account 39373 Tax Information The Denton Central Appraisal District is not responsible for the assessment or collection of taxes for this or any other property. If you have a question regarding your tax bill, or would like to pay your tax bill online, please contact the Denton County Tax Assessor / Collector. ARB Disclaimer This account's value is still under review by the Appraisal Review Board. General Information Property ID ... ... ... . . . . .. ...... . . . .. ........ . 39373 grahic ID SDO076A-000005-OOOA-0002-0000 ie�4ai - D� si. -or- i­p Lion Dobson - A-d--d n. -B-1 k -5 -a- 3.). L o t. f es' .6778 ... ............ . ..... Situs Addre' '' 1701 Malone/university St Tx ............. I...... ....... ..................... .F�s .. ........ ............. .... Property ­''' Type *' ........ .. ..... ...... ............... ... ......... ................... .. ....... ... .. ... ........ ... ...R21a� Abstract/Subdivision s.­. u.­...b...A o....n... 6.... .......... ...........S.-.D..O-.­...0. 76'.A ...................................I.................................................................................................................................................... in _60F7_A .... . ..........i...'.v.'..'i.. ..i..,....... ........ ...... ................. ........................................................All ........... , .................I...... .� �iat �t ... ... A4ent 6 w­n' er, ib 3 ­ 01NameDobson Pro Ps .... ................... .............. ........................................................ Percent Ownership .................. . .......... I ........... .............................. . .. ............................................... .. ............ ... ..... ................... 100 . .............. I .................................... ­'' f..iAddress k' ....... C.... /.o.......e...1. r1......I....n....c ................. .............4600 ................. W... h­a_...t....a...b....u.. .r.....g...... ..... ...... .iiI .n­g.­.... ................I............... ......... .. .......... .. Whataburger Way ....................... ................... ...... ........ ..... ....... ........ . . .., . . . -2929 ­ty........................ .)*'­­*'­­­"--'"..........:............................ ................ taxingJurisdictions .. ........... ..............................Crp..Christi .. .......... . ............. iOf Denton C05.....(C. .................,...... ............ ... ......................................... G01 (Denton County) ........... ... ................................ ........... ... ............. ... ­­ .................... .................. ........... ........... ............ I . ... ..... .. .. ........... S .. 0 .. 5 '�b*e*n*t'on­I's*d)­ Exemptions"­'*'*'­­ .. ....... ... ... .................. . ........ ... I ........... ... ....... W.- iiai - - - .. - - - - - Vie ............... . ............ .. ..... .. ................ I ... ................. Denton -CAD GT 3 ........... ..................... ... ........... ... .......... ......................... ... ............. ­1 2009 Values (Preliminary) H.o.me...s..i.t..e Value - '$0 .ImP.r.o.ve.m.e.nt Improvement Non-Homesi te Value........... . $199,417 ' ­'­­­'­'­........ Land siteValue $0 ­54''' ",, *­,""""-,",,,,­­", , Land siteValue $J,348 Agricultural Market Value Timber Market V,al'u, e '$0 , * ­ Total Market Value 53, 765 I ..............................I -..................................;.......................................................................................... Agricultural Use Reduction . .. . .. ......... * . ... ... ................ $0 .. Timber Use Reduction-> ... ............ ... ..... $0 ........... I., ... .......... .... ........ .. 11 ............ I........ ............ A"F.7ised Value .. ........... ..... ............ ......... ....... ... ... ............. (=) $553,765 .................. ............ ........... .... ... ........... ... ........ . -- I ....... ... .......... ­ ............ ............ What's this? HomesteadCan ............. ............. ....................... .............................. (-) $0 .......... ............. ............... Assessed Value - ­1 .......................... ­­ .......... .............................. ............ ... ....................................... $553,765 ..... ...... ............ ... ................. ... . 37 TAX INFORMATION CONTINUED 2009 Improvements Improvement 1077099 Class What's this? Year Built Sq. Footage Type 360 1974 2,790 sq. feet Main Area 360 1974 196 sq. feet Open Porch 360 1974 196 sq. feet Open Porch Improvement 1077100 State Code F1 ......................................................................................................................................................................................................................................................................... Improvement Type Commercial - ASPHALT PAVING .. ....Improvement Value $38 067 (Preliminary) Condition Average 11 ......... .... ..... ....................................................... ......... ............... .... ..... ......................... ................... ...... ...,.... ,..,... ,....... ,..,..... ................. ... .... ............ , Class What's this? Year Built Sq. Footage Type ASP 1974 21,428 sq. feet Paving Land Segments Land Type Acres Sq. Ft. Appraised Value Commercial 0.6778 29,529 sq. feet $354,348 (Preliminary) Property History Year Improvement(s) Land Appraised Assessed 2009 $199,417 $354,348 $553,765 $553,765 (Preliminary) (Preliminary) (Preliminary) (Preliminary) 2008 $129,877 $354,348 $484,225 $484,225 2007 $126,880 $354,348 $481,228 $481,228 2006 $104,420 $265,761 $370,181 $370,181 2005 $109,600 $265,761 $375,361 $375,361 2004 $101,341 $265,761 $367,102 $367,102 2003 $101,589 $236,232 $337,821 $337,821 2002 $107,036 $236,232 $343,268 $343,268 2001 $105,175 $236,232 $341,407 $341,407 2000 $168,450 $236,232 $404,682 $404,682 1Q99 $126,079 $236,232 $362,311 $362,311 1998 $126,079 $236,232 $362,311 $362,311 1997 $115,843 $156,504 $272,347 $272,347 1996 $115,843 $156,504 $272,347 $272,347 1995 $115,843 $156,504 $272,347 $272,347 1994 $113,384 $156,504 $269,888 $269,888 1993 $113,894 $156,504 $270,398 $270,398 1992 $120,589 $156,504 $277,093 $277,093 Deed History Date Type Seller Buyer Deed Number Sale Price Dodson 2/11/1987 Conversion Children's Dobson 2085 - Unavailable Inter Vivors Prop Ps 667 Tr 38 ZONING MAP MEM CITY OF DENTON, TEXAS lowZoning Quick Map 215 E. McKionry Street • Dentom, TX 76201 • (940) 349-9200 • (940) 349-8236 (ha) • (800) 735-2989 (TDD) (� C 7 _ Q �{ � 7 0 m m 0 19 *lk I Zoning Districts I State plane Coordinate List I Map Help I Start Over I Search LOMR lFema Flood 39 FLOOD MAP es Prepared for: InterFloodj Pyles Whatley Corporation +1 aYelamod* 1807 W University Dr www.interflood.com • 1-800-252-6633 Denton, TX76201-1784 don 71-- AUBURN H,aGC�A1 w STREET �p LANE eELNA4I:N fd"- STREET ONE Xcc W X 3 � � SCS Dam u AMHURST !J6 ZONE X 65fi ` STREET 652 OZONE X ZONE X+ DRIVE' NE X Pecan Creek, ZON 647 SCS Dam 016 � d � � � WESTtiN EMERY STRE 6<9 646 STREET ZONE X WESTCHESTER EMERY North sT1�EET ZONE STREET pecan CORDELL n STREET X C DELL ZONE X Cr,rek TREET µ+ CRESCENT ~ ® 63$ N- CR SCESTREET STREET w ¢, FLOODSCAPE LINDEN STREET FbQ{ Hi�$ Map r LINLt�EN STREET a z Map Number _ eR�aDwyav 48121CO360E ZONE X Effective Date PAMIANDLE srr tr r April 2,1997 - CRDN a u' EGA`<t J SENA STREET SCA9P,`uFtE WJ HOUSTON For more information about flood zones and flood ALANJO t z insurance, contact: Zz 0' 6W' 1200' 1800' 2400' Powered by Fioodsouroe HICKORY 877.77.FLO0D y ,,, www.floodsource.com STELL _.__ o MULBERRYCTAGFT ! 1999.2007 Source Prose and/or Flood Source Corporations. At rights reserved. Patents 0.631.326 and 6,078.615. Other Patents pending. For Info: info fp' floodsouroe, 40 LAND SALE MAP Land Sale 3 I ON 2S8 Land L'Sale 1 11 41 COMPARABLE DATA SUPPLEMENT Parcel No: TCE 32 Highway: US Highway 380 Land Sale No. 1 County: Denton Grantor/Lessor: Denton Towne Crossing, LP Grantee/Lessee: Steak N Shake Operations, Inc. Date: January 23, 2007 Recording Information: Instrument # 2007-8996 Mapsco: FW-348-K Address: SE/s of Loop 288, 600 feet SW of Brinker Road Zip Code: 76208 Legal Description: Lot 6, Block A, Denton Towne Crossing Addition, Denton, Denton County, Texas Confirmed Price: $675,000 Verified with: Blake Shipp, Broker (RM) Terms and Conditions of Sale: Cash to seller Rental Data: Land Size: 1.0065 Acres, 42,843 Square Feet Type Street: State Highway Improvement(s) Description: None at sale Improvement(s) Size: (GBA) (NRA) Condition and Functional Design: Current Use: Vacant Date of Inspection: April 20, 2009 Unit Price as Vacant: $15.40/SF Utilities: All utilities Unit Price as Improved: Highest & Best Use: Retail Zoning: RCC-D, Regional Center Commercial -Downtown Flood Plain: None Additional information: Purchased for construction of a fast food restaurant. The owner decided not to develop the site and resold the orooertv for an undisclosed amount. According to the broker, the property is currently listed for sale for approximately $20.00 per square foot. Appraiser: Charles Stearman Date: September 22, 2009 42 DCAD MAP 262731 ,ys, p 5 262730 Za$ry 262729 aQ SI,0 ,R 262728 r A 262726 '" '✓ 199383 288 F 297290 297291 P76 297292 to s Z m 297293 269630 297294 297289 y 297295 297296 297287 , 273393=�T, 33122 , These files are for illustrativAJOWAstOnly. 2008 Denton CAD. 43 COMPARABLE DATA SUPPLEMENT Parcel No: TCE 32 Highway: US Highway 380 County: Denton Land Sale No. 2 Grantor/Lessor: Lefebvre Property, Inc. Grantee/Lessee: Ralph L. Mason, Revocable Trust Date: November 1, 2006 Recording Information: Instrument # 2006-137428 Mapsco: FW-246-V Address: S/s University Drive 150 feet east of Primrose Lane, Denton, Denton County, Texas Zip Code: 76201 Legal Description: Lot 5R & 6R Block B Westchester Park Addition, Denton County, Texas Confirmed Price: $375,000 Verified with: Ralph Mason, buyer; Denton CAD Terms and Conditions of Sale: Cash to seller Rental Data: Land Size: 0.823 Acres, or 35,850 SF Unit Price as Vacant: 10.46/SF Type Street: US Highway Utilities: All utilities Improvement(s) Description: Former El Zarale restaurant, built in 1982 Improvement(s) Size: 4,132 (GBA) (NRA) Unit Price as Improved: 90.76/SF Condition and Functional Design: Current Use: Fast Food Restaurant (Sonic) Highest & Best Use: Restaurant Date of Inspection: April 20, 2009 Zoning: CM-G, Commercial Flood Plain: None Additional information: Purchased for construction of a Sonic Drive -In restaurant The site was improved with a 4,132 square foot restaurant at the time of sale The contributory value of the improvements at the time of sale offsets the demolition costs. Appraiser: Charles Stearman Date: September 22, 2009 DCAD MAP 44 a R171001 z D R34297 r O 3B0 � W UNIVERSITY DR _ w UNIVERSITY OR R40102 R40100 375400`g` " mrznMYpwq� ru p6' R4011$ R40117 R40110 Z J W R40111 R40121 aN R2098$ 99000 R20994 R20996 R21000 I R21002 R21005 R21009 R21013 R20993 R20981 S I III s 4 EMERY ST _ t 1 _ f -- R20977 y 'ti R21055FR7211�06�4 R21087 R21092 R21097 R21102 21„04$ C I 0 t 45 COMPARABLE DATA SUPPLEMENT Parcel No: TCE 32 Highway: US Highway_380 Land Sale No. 3 County: Denton Grantor/Lessor: Locust Fort Worth, LLC Grantee/Lessee: Taco Bell of America, Inc. Date: July_14, 2009 Recording Information: Instrument # 09-086887 Mapsco: FW-347-F Address: SE/s Fort Worth Drive approximately 2 00 feet N of Interstate 35 E Zip Code: 76201 Legal Description: Portion of Lot 1R Block 1 Eagle Pont Shopping Center Addition Denton County, Texas Confirmed Price: $550,000 Terms and Conditions of Sale: Cash to seller Rental Data: Land Size: 0.821 AC, or 37,777 SF Type Street: US Highway Improvement(s) Description: None at sale Improvement(s) Size: (GBA) (NRA) Condition and Functional Design: Current Use: Vacant Date of Inspection: September 22, 2009 Verified with: Shannon Green, Grantor (RM) Unit Price as Vacant: 14.56/SF Utilities: All utilities Unit Price as Improved: Highest & Best Use: Retail Zoning: DC-G, Commercial Flood Plain: None Additional information: Purchased for construction of a Taco Bell fast food restaurant The site benefits from good exposure on Fort Worth Drive The property is located adiacent to a vacant Home Depot building and a Compass Bank. Frontage is 140 feet on Fort Worth Drive. Appraiser: Charles Stearman Date: September 22, 2009 46 DCAD MAP .,io z3, 24, F3 13 13,14 lti i Q� 234 233 15 ___ /.ra5s2�s 237 Gl2EEAlLEE ST 27a OQ, , _ +-. _. 2a 239 j ,t 1 2a3 d 240 ..p O 241 3 r zr9 z9^ G 1-zTo . _ _�_ _ �- - x'82x9 a92 S 293 1 ` 278274 v 299 ah0 -s ,.,. 2 3 2 W 1{Stool m. t _--_ LMDSEY ST � !1 S d L 4 3f- 14 ,A w -11 P77 IR 282,283 t ze 28" 2A z zV.2K 19 1a4 e.... ioa. tw Ebb 106A ,38 1Q5 745 O .1SK2._Yc7N j93 �. = aT 4H s3,�--SMITHst 1b6 147 15,co W GO 154 93 -_-E DAUGHERTY ST`7 319 zo 3 4 r 316,317 h V O A INMAN S7.._ _. j; 2 °3 '4 1 S2 13 :1,1 as zu MEAD T2 26 teasWPT1 / . 3 OW8'T 1 n �7 _— ! I �77 25 jag g- 13S�E _ '?,T�`x 1 :.-WILLOV4WOOD ,s3 wnpT) 35 E: $E fY e44 i ' W m 16 m "f35 E �iAMP 147 ° 18 r� ��., < - -,q? __11R 149 IV �+.. -• 1 4 9 b -x 7 ISO tR , w- 1 Z 15e 157 1R 2 9 10 1 p 13 , 3 { -'--IT-17 1i I 24 jt�RTl ... .. N 2R 47