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HomeMy WebLinkAboutP40 Appraisal Review Form ROW-A-10 (Rev. 09/16) Page 1 of 10 22.245 Review, Parcel 40, IH-35 Utility Relocation, Denton, Texas TABULATION OF VALUES Parcel: 40 Highway: IH-35 Utility Relocation ROW CSJ: N/A Taking Type: Partial District: N/A Size of Remainder: 774,076 SF (17.7703 Acres) County: Denton Type of Property: Apartment Complex Federal Project: N/A Contract Fencing: N/A Appraised by: Allison Jackson Date Appraised: February 22, 2022 Access will be provided or denied to the new facility. If access will be partially provided or denied, explain in comments. Agency Participating Percentage Expense Description N/A N/A N/A Interest Owner Acquisition Interest Land Area Value Lease (Y/N) TA Operating, LLC Easement 21,604 SF $86,416.00 N TOTAL $86,416.00 N I. Appraised Values Land Value Improvement Value Sign Value Damages/Enhancements Total Value $86,416.00 $74,179.00 $0.00 $10,108.00 $170,703.00 II. Improvements Item No. Improvement Type Type Construction Improvement Value Retention Value Bisection Category A Sign 1 – Sign $1,680.00 $17.00 B Landscaping 18,511 SF – Irrigated Sod $64,789.00 $1.00 C Bollards 8 – Concrete Bollards $3600.00 $1.00 D Flagpole 1 - Flagpole $1,500.00 $15.00 E Lights 2 – Lights $1,920.00 $19.00 F Light Pole 1 – Light Pole $480.00 $5.00 G Sign 1 – No Parking Sign $210.00 $2.00 Total $74,179.00 $60.00 Form ROW-A-10 (Rev. 09/16) Page 2 of 10 22.245 Review, Parcel 40, IH-35 Utility Relocation, Denton, Texas TABULATION OF VALUES (continued) Parcel: 40 Highway: IH-35 Utility Relocation ROW CSJ: N/A III. Damages and Enhancements Total Non-Exempt Damages Enhancements Exempt Damages Net Damages $0.00 $0.00 $10,108.00 $10,108.00 IV. Sign Values Item No. Sign Owner Type Construction Improvement Value Retention Value Bisect. Cat. N/A Total V. Recapitulation Date: February 22, 2022 Recommended Value Appraiser’s Name: Allison Jackson Value of Whole Property $6,266,787.00 Parcel Area: Square Feet 21,604 VALUE FOR PARCEL $0.00 $0.00 Land: Per Square Foot – Fee Simple $8.00 Land: Per Square Foot – Easement $4.00 Easement $86,416.00 $86,416.00 Improvements $74,179.00 $74,179.00 Net Damages or (Enhancements) $10,108.00 $10,108.00 OAS Value(s) TOTAL COMPENSATION $170,703.00 $170,703.00 Calculations for Net Damages or (Enhancements) considers Direct Access Denial damages. Form ROW-A-10 (Rev. 09/16) Page 3 of 10 22.245 Review, Parcel 40, IH-35 Utility Relocation, Denton, Texas TABULATION OF VALUES (continued) Parcel: 9 Highway: IH-35 Utility Relocation ROW CSJ: N/A VI. Comments and Conclusions on Values in the Appraisal Report Project: The proposed project is for the relocation of water, wastewater, and electric lines owned by the City of Denton. The project is a result of the new right-of-way line after acquisitions by the Texas Department of Transportation for the IH- 35 roadway project. The City of Denton indicates that installation of the new utility lines will be by open cut sections and any site improvements affected will be restored to similar or better than what was present before. The project will extend from Post Oak Drive to Loop 288. The appraisal under review considers an easement acquisition represented as Parcel 40 of the IH-35 Utility Relocation in the City of Denton, Denton County, Texas. The appraisal report is prepared by Ms. Allison Jackson, dated March 3, 2022, and is effective as of February 22, 2022 (the date of the last inspection). For purposes of this analysis, the whole property is a 17.7703-acre, or 774,076 square foot tract of land improved with a Travel America travel center and supporting site improvements. The appraiser states the improvements are not affected by the acquisition and only the land and affected site improvements will be valued in this analysis. The land is valued via the sales comparison approach. The cost approach is utilized to value the affected site improvements which includes signage, irrigated landscaping, concrete bollards, flagpole, lights, light pole, and no parking sign. The sales comparison approach, and income approach to value, with respect to improved properties, are not applicable and are omitted. The appraiser uses the subject land size as stated by the survey provided by the client and other information. The area of the proposed easement acquisition is stated in the parcel survey and field notes. The appraiser has calculated the remainder land area by subtracting the easement acquisition from the whole property size. Location and Property Owner: The property is located at the southeast corner of the IH-35 frontage road and Highway 77, Denton, Denton County, Texas. The physical address of the site is 6420 N. IH-35. Ownership is stated as TA Operating, LLC. The most recent property transfer was on June 9, 2015. Purchase price is unknown. The property is not currently listed for sale or under contract. Ms. Jackson sent a certified letter to the property owner discussing the project and requesting a site visit. The return receipt was received. The landowner did contact the appraiser asking her to check in with the on-site manager before inspecting the property unaccompanied. The property was inspected from the public right-of-way and subject property. Whole Property and Highest and Best Use: The subject parcel is irregular shaped, containing 17.7703 acres, or 774,076 square feet. The site has approximately 990 linear feet of frontage along the frontage road of IH-35, and approximately 1,115 front feet along Highway 77. Access is available from both roadways. The property is appraised as vacant land. The subject resides in the City of Denton and is zoned “GO”, General Office. All utilities are available to service the property and the site is free of flood land. The subject and market area are examined with respect to the four tests of highest and best use. The appraiser states the highest and best use, as vacant, is for mixed-use development. Valuation (Land Only): The market area is analyzed for trends and information that affect real estate value, and the conclusions thereof are adequately supported. The land is valued via the sales comparison approach, using three comparable sales in the market area. The sales transacted between January 2019 and June 2021. Adjustments are supported by the appraiser’s reasoning and logic with respect to the market data and analysis presented. After applicable adjustments for sales conditions, market conditions, location, size, shape, and zoning/use, the sale prices range from $4.73 to $9.66 per square foot. The reconciled unit value for the subject land is concluded at $8.00 per square foot. This equates to $6,192,608 for the subject land in the whole property condition, as detailed below. Subject Land – 774,076 SF x $8.00/SF = $6,192,608 The cost approach is developed to value the site improvements affected by the acquisition. The appraiser states there is one sign, 18,511 square feet of irrigated landscaping, 8 bollards, one flagpole, two lights, one light pole, and one no parking sign, with a contributory value of $74,179. By combining the land value of $6,192,608 and $74,179 for affected site improvements, Ms. Jackson estimates the whole property value to be $6,266,787. Form ROW-A-10 (Rev. 09/16) Page 4 of 10 22.245 Review, Parcel 40, IH-35 Utility Relocation, Denton, Texas TABULATION OF VALUES (continued) Parcel: 40 Highway: IH-35 Utility Relocation ROW CSJ: N/A VI. Comments and Conclusions on Values in the Appraisal Report Partial Acquisition: The easement acquisition contains 21,604 square feet, is irregular shaped, and located along the northern line of the site at varying depths. Length of the acquisitions along the Highway 77 frontage is approximately 888 feet. The easement acquisition is for relocation of utilities. The appraiser estimates the value of the easement area to be 50% of fee simple, or 50% of $8.00 per square foot. This equates to $4.00 per square foot for the easement area. The appraiser states that 50% is used because the amount of rights being acquired, and the joint use the easement area will have in the remainder. The unit value of $4.00 per square foot is applied to the 21,604 square feet of land within the easement acquisition parcels. The result is a value of $86,416 as detailed below. 21,604 SF x $4.00/SF = $86,416 In addition to the land, there is one sign, 18,511 square feet of irrigated landscaping, 8 bollards, one flagpole, two lights, one light pole, and one no parking sign, with a contributory value of $74,179. Total estimated value for the part acquired is $160,595, consisting of $86,416 for the land, and $74,179 for the affected site improvements. Remainder Property (Land Only): The remainder before the acquisition is $6,106,192, as detailed below. Easement Land 21,604 SF x $4.00 per square foot = $ 86,416 Remainder Land 752,472 SF x $8.00 per square foot = $6,019,776 Remainder Before- 774,076 SF $6,106,192 The remainder after property of 774,076 square feet is appraised using the same four comparable sales as in the whole property valuation. The value conclusion is unchanged at $8.00 per square foot. This equates to $6,106,192 for the subject land in the remainder after as detailed below. Easement Land 21,604 SF x $4.00 per square foot = $ 86,416 Remainder Land 752,472 SF x $8.00 per square foot = $6,019,776 Remainder After 774,076 SF $6,106,192 The value of the remainder after is $6,106,192, the same as the remainder before value. The highest and best use of the subject property is not changed or affected. The appraiser finds no permanent damages to the remainder property because of the acquisition. Total Compensation: Page 6.0 summarizes the total compensation due the property owner as $170,703, comprised of $160,595 for the part acquired, and $10,108 as a cost-to-cure. Cost-To-Cure: In the remainder after, the sign, bollards, flagpole, lights, light pole, and no parking sign will need to be reinstalled and the irrigation system will need to be capped and rerouted. The appraiser indicates the cost to be $17,725. After deducting what was paid in the part acquired for each site improvement and adding a 10% contingency cost of cost new, the total cost-to-cure is $10,108. The appraiser has considered access damages in accordance with Section 21.042(d) of the Texas Property Code, as amended by SB18 of the Texas 82nd Regular Legislative Session and finds as follows: 1. Is there a denial of direct access on this parcel? No 2. If so, is the denial of direct access material? N/A 3. The lack of any access denial or the material impairment of direct access on or off the remaining property affects the market value of the remaining property in the sum of $0.00. Form ROW-A-10 (Rev. 09/16) Page 5 of 10 22.245 Review, Parcel 40, IH-35 Utility Relocation, Denton, Texas TABULATION OF VALUES (continued) Parcel: 40 Highway: IH-35 Utility Relocation ROW CSJ: N/A VI. Comments and Conclusions on Values in the Appraisal Report Ms. Jackson’s appraisal report appears to comply with the requirements of Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP). Sufficient information, photographs, maps, and exhibits are included to identify and describe the whole property, the acquisition area, the remainder property, and the comparable data. The report and analysis appear to properly document and supports his findings and comply with typical appraisal practice for similar properties. The report and analysis meet the requirements set forth in USPAP and the Texas Department of Transportation’s ROW Appraisal and Review Manual. Ms. Jackson’s total compensation of $170,703 is hereby recommended for approval for acquisition purposes by the client. Form ROW-A-10 (Rev. 09/16) Page 6 of 10 22.245 Review, Parcel 40, IH-35 Utility Relocation, Denton, Texas TABULATION OF VALUES (continued) Parcel: 40 Highway: IH-35 Utility Relocation ROW CSJ: N/A VII. Justification and Explanation for Credit if Retained. The sign, flagpole, lights, light pole, and no parking sign are considered to have a salvageable value of 1%. The remaining site improvements are not considered to have a salvageable value, and each is given a nominal value of $1.00. VIII. Conditions Values for signs, if any, are applicable only if sign owner has compensable interest. Fencing is applicable only to actual cost or lump sum fencing on 90-10 Right of Way projects and State cost participation in fences to be in accordance with State’s Right of Way Manual. The values indicated hereon have been approved on the basis that all improvements within the taking will be acquired in the name of the State through negotiation. IX. Reviewing Appraisers’ Statements Reviewing Appraiser’s Statement It is my opinion that the appraiser’s report for this parcel appears adequately supported and in compliance with all appropriate appraisal standards, laws, and regulations, and I recommend this appraisal for use by the appropriate Agency Official and his/her assigns. I have no direct or indirect present or contemplated future personal interest in such property or in any benefit from the acquisition of the parcel. To the best of my knowledge, the value does not include any items that are not compensable under State law. Reviewing Appraiser Date March 5, 2022 Tommy Matthews Date Contract Reviewing Appraiser (if applicable) Division Reviewing Appraiser (if applicable) Date X. Approval of Values County/City Representative Date ROW Staff Representative Date Form ROW-A-10 (Rev. 09/16) Page 7 of 10 22.245 Review, Parcel 40, IH-35 Utility Relocation, Denton, Texas APPRAISAL REVIEW In keeping with USPAP Standards Rule 3-2 and 3-5, the following information is provided: Client: The City of Denton and Cobb, Fendley, & Associates Intended User(s): Cobb, Fendley, & Associates, The City of Denton, its counsel, employees, agents, and assigns. Intended Use: to provide a recommendation of the appraisal for use by The City of Denton for acquisition purposes as it pertains to the parcel described herein. Purpose of Review: To determine if the conclusions and methodology used in the appraisal report are reasonable and appropriate, and if the elements in the report meet the standards of the intended users, and communicate my findings to the client, by written review. This assignment does not include the development of my own opinion of value. This review assignment is intended to aide in decision-making and property acquisition with respect to The City of Denton’s IH-35 Utility Relocation project and includes a review opinion related only to the work under review. Effective Date of Review: the work was under review on February 28, 2022, and this is considered the effective date of the review. Date of Work Under Review (Appraisal Report Date): March 3, 2022 Effective Date of the Appraisal under review: February 22, 2022 Date of this Appraisal Review Report: March 5, 2022 Scope of Review: with respect to the appraisal review process, I have completed the following: I have read the appraisal report in its entirety, examined it for completeness, and have provided comments to the appraiser for consideration. I have not reviewed the appraiser’s work file and assume that items referenced in the appraisal report are retained in the work file; and the work file includes all information necessary to produce a credible opinion of value of the subject appraised. I did not research the market for additional comparable sales or other market data. I personally inspected the subject property and comparable sales utilized in the appraisal report under review. The subject property was inspected from the public right-of-way and/or subject property, and I had an unobstructed view of the proposed acquisition area (excepting areas of dense vegetation). My opinion of the work under review is limited to the report and information provided by the appraiser, and when necessary, information provided by The City of Denton (e.g., ROW maps). No other information was relied on. The information provided in the appraisal report is considered reliable but is not guaranteed. I did not confirm any of the subject, or comparable sale data. I did not perform any additional research, and I have not formed an independent opinion of market value for the subject property, acquisition, or remainder property. I have adequate knowledge of this property type and market area to meet the competency requirements set forth in USPAP. No extraordinary assumptions or additional hypothetical conditions are necessary in this review assignment. I have prepared a written report with my recommendations regarding the appraisal report. Form ROW-A-10 (Rev. 09/16) Page 8 of 10 22.245 Review, Parcel 40, IH-35 Utility Relocation, Denton, Texas CERTIFICATION I certify that, to the best of my knowledge and belief: • The statement of facts and data reported by the reviewer and used in the review process are true and correct. • the analyses, opinions and conclusions in this review are limited only by the reported assumptions and limiting conditions stated in this review report, and are my personal, impartial and unbiased professional analysis, opinions and conclusions. • I have no present or prospective interest in the property that is the subject of the work under review and have 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 the work under review within the three-year period immediately preceding acceptance of this assignment. • I have no bias with respect to the property that is the subject of the work under review or to the parties involved with this assignment. • My engagement in this assignment was not contingent upon developing or reporting predetermined results. • My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in this review or from its use. • My compensation for completing this assignment is not contingent upon the development or reporting of predetermined assignment results or assignment results that favors the cause of the client, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal review. • My analyses, opinions, and conclusions were developed, and this review report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice, and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • I have made a personal inspection of the subject property of the report under review and the comparable sales included in that report. • No one provided significant real or personal property appraisal review assistance to the person signing this certification. • As of the date of this review, I am certified under the requirements of the State of Texas as a general real estate appraiser. • As of the date of this report, I have completed the Standards and Ethics Education Requirements for Candidates of the Appraisal Institute. Tommy Matthews State Certified General Appraiser, TX-1337544-G Form ROW-A-10 (Rev. 09/16) Page 9 of 10 22.245 Review, Parcel 40, IH-35 Utility Relocation, Denton, Texas Form ROW-A-10 (Rev. 09/16) Page 10 of 10 22.245 Review, Parcel 40, IH-35 Utility Relocation, Denton, Texas GENERAL ASSUMPTIONS AND LIMITING CONDITIONS To assist the reader in interpreting this appraisal review report, general assumptions and limiting conditions are set forth below. Information provided by others is assumed to be true, accurate, and reliable. The legal description used in the appraisal report under review is assumed to be correct. No opinion is expressed or assumed for legal matters that may affect title or use of the subject property. The date of the review opinion on which the opinions expressed in this report apply, is set forth in the report. I assume no responsibility for economic or physical factors occurring at some later date, which may affect the opinions herein stated. All opinions and comments pertaining to the work under review represent my opinion, formed after examination of the appraisal report reviewed. While it is believed the information and analyses are correct, I do not guarantee them and assume no liability for errors in fact, analysis or judgment. The analyses, opinions and conclusions in this appraisal review report are based solely on the data, analyses and conclusions contained in the appraisal report under review. It is assumed that this data is representative of existing market conditions. All analyses, opinions, and conclusions expressed by me are limited by the scope of the review process. Neither all nor any part of the contents of this report shall be disseminated to the public through advertising media, public relations media, sales media, or any other public means of communication without my written consent and approval. I am not required to give testimony or to appear in court because of this review assignment, unless prior arrangements have been made. No responsibility for hidden defects or conformity to specific governmental requirements can be assumed without provision of specific professional or governmental inspections. While the general conditions of the property were observed, no guarantee can be made concerning the individual components of the property. I am not qualified to make a complete inspection of any well, septic system, underground storage tanks, or environmental condition, and these are beyond the scope of this report. No statements can be made concerning the adequacy or condition of these or other systems, or any effect on value. The Americans with Disabilities Act (ADA) became effective January 26, 1992. I have no direct evidence relating to this issue, I did not consider possible noncompliance with the requirements of ADA in completing this review assignment. The possession of this report, or any part of it, or a copy of it, does not convey the right of publication; it may not be used for any purpose other than the intended purpose stated herein, by any person or entity other than the intended users stated herein, without my written consent. Your acceptance and/or use of this report acknowledges your acceptance of the foregoing General Assumptions and Limiting Conditions.