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Home My WebLink About931634.tiff I I /E,oc — lc.; 15•DPT Fr9M PRESCRIBED BY THE PROPERTY TAX ADMINISTRATOR FORM 920 1/66-6/90 TION FOR ABATEMENT OR REFUND OF TAXES- H0ECKEL Co. DENVER 38312 Petitioners: Use this side only. Gs®e•1®y Colorado, December 28 , 1992 � City or Town 7 To The Honorable Board of County Commissioners of 'Welt} County Gentlemen:The pet leafy National Bank c/o Banc One of Colorado Corp. whose mailing address is• 1125 17th Street, Suite 1 500 Denver CO 80202 City or Town State Zip Code SCHEDULE NUMBER DESCRIPTION OF PROPERTY AS LISTED ON TAX ROLL 961 -O5-3-15-022 SITUS 711 822 seventeenth 7 —Sr- ?`• A fi "- .Gre..h,y , CO 80-631 al),Ai/r"/', "CrPaA/ respectfully fequests that the taxes assessed against the above property for the years A. D. 19 90 , are erroneous, illegal, or due to error in valuation for the following ompletely describe the circumstances surrounding the incorrect value or tax.) Inconsistent use of the income approach to value. Questionable recognition of both economic and functional obsolesence in application of the cost approach to value, M �q� r• it'OY 19 90 19..3D— M-��S� `_ -� Value Tax Value Tax Orig. 1 , 534, 310 159, 797 /'Is3q> 31� / 51713 ��, oil Abate. 659, 753 68, 713 IJ3)f38t, /II 6, 11, G-< Bal. 874, 557 91 , 084 /) d/1 O3r hiS Yirj 3q, The taxes (have) (have not) been paid. Wherefore your petitioner prays that the taxes may be abated or refunded in the sum of $.6.84.-7.1.3...-plus- interest I declare, under penalty of perjury in the second degree that this petition, together with any accompanying exhibits or statements, has been examined by me and to the best of my knowledge, information and belief is true, correct and complete. Banc One of Colorado /� /� Corp. d Y IQ., ioer �" I I1 Cni! 'f 7c^r<<,. By William A. McLain, P.C. Ilii II :, t. II V"/ 12 '- Agent �I� c/o TaX Profile Services DEC c ' s:c� 1123 Auraria Pkwy. , Suite G100 ,hrAddress.n .nvY, Co 802ff4 GREELEY,COLO. 931634 ( G /75/ /.'c 7/l II RESOLUTION OF COUNTY COMMISSIONERS WHEREAS, The County Commissioners of Weld County, State of Colorado, at a duly and lawfully called regular meeting held on the 29th day of....Ma-rch , A.D. 19.93...., at which meeting there were present the following members- Chairman..Calla tance k,...Harber.t_,...and...Commiasianerr..C:eurge...Baxter,...Ila1s...Ha11, ...nand..Bar.barn,..Rirkmeyss,...w.i,th..C.ommis.s.ioner..B.i.11..Ii b.ste.r...aba.taining notice of such meeting and an opportunity to be present having been given to the taxpayer and the Assessor of said County and said Assessor Warren Lasell being present and taxpayer represented by Jeffrey Monroe, 1cAligx glt{; lcx(name) (name) Tax Profile Services, being present, and WHEREAS, The said County Commissioners have carefully considered the within applica- tion, and are fully advised in relation thereto, NOW BE IT RESOLVED, That the Board..cor. urs with the/rec�mmendation of the assessor and the petition be.partially (concurs or does not concur) pprnved......... and an abatement/refund_be...allawed (approved or denied) (be allowed or not be allowed) on an assessed valuation of$.1.13,2,$0 , for $.._11,618.66 total tax for they ar(s) 19.30 Actual value = $4,900, 114 ��!��G��,7oi.----� � c,1-4.0-'Taxes paid = $157,368.04 Chairman of Board of County Commissioners. STATE OF COLORADO, County of Weld ss. I, DQfla-ld D. Werden tOttffty=ettlrawitMausifitgo Clerk of the Board of County Commissioners in and for the County of Weld State of Colorado, do hereby certify that the above and foregoing order is truly copied from the records of the proceedings of the Board of County Commissioners for said Weld County, now in my office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said County, at Greeley.......Colox.ada , this 29th y of_.. ax h. .V A. D. 19.98 /9 4/1;hi% / County Clerk. By. 7/1- .. 0 '4-.1�--�` � puty. ACTION OF THE PROPERTY TAX ADMINISTRATOR • Denver, Colorado, 19,5 action of the Board of County Commissioners, relative to the within petition, is hereby ❑ approved; ❑ approved in part $ O denied for the following reason(s) ATTEST: ` !, � �,A► Secretary. Property ax Administrator. to C 4- 5- a) t: ++ o -C n3 0 N 4-- C 5- O N O d) to d -C40 V O C -- .M O ^ C C C. O . N y '1� 31 CD C 4-- s» 64 d3 c o -0 O -O n O O O O 8. 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PIN: 2810986 PARCEL: 0961-05-3-15-022 PROPERTY OWNER: GREELEY NATIONAL BANK ADDRESS: 821 8TH ST OCCUPANCY: BANK QUALITY OF CONSTRUCTION: AVERAGE CONDITION: GOOD YEAR OF CONSTRUCTION: 1974 BANK OFFICE NflX AREA LEASABLE 23525 76,024 18,800 RENT PER S.F. 12.00 8.50 6.00 POTENTIAL GROSS INCOME 282,300 646,204 112,800 LESS VACANCY 0 20% 40% EFFECTIVE GROSS INCOME 282,300 516.963 67,680 LESS EXPENSES 35% 35% 35% NET OPERATING INCOME 183,495 336,026 43,992 OVERALL CAP RATE .115 .115 .115 ESTIMATE OF VALUE 1,595,609 2,921,966 382,539 TOTAL ESTIMATE OF VALUE 4,900,114 4,900,114\128,537 = 38.12 931.cal 26-Mar-93 BANK SALES PRICE/ SALE SALE BLDG LAND L/B PRICE/ SF CONST COUNTY ADDRESS DATE PRICE YOC AREA AREA RATIO SF W/O LAND CLASS 1 BOULDER 1610 HOVER RD LONGMONT 12/17/91 $650,000 12,015 38265 3.18* 70.74 54.82 C 2 BOULDER 304 2 AV LYONS 1/8/90 $350,000 1983 2,570 31740 12.35 136.19 99.14 S 3 BOULDER 1930 N MAIN ST LONGMONT 1/15/89 $227,500 1976 2,305 25516 11.07 98.70 62.73 D 4 BOULDER 3033 IRIS AV BOULDER 6/28/88 $1,450,000 1976 11,246 91098 6.10 128.91 62.72 C 5 LARIMER 2525 N LINCOLN FT COLLNS 1/87 $214,900 1973 3,340 25700 7.69* 64.34 45.10 D 6 JEFFERSON 7575 W 44 AVE 8/25/89 $550,000 1973 6,625 23800 3.59* 83.02 68.65 C 7 ARAPAHOE 2305 S COLO BLVD 6/30/89 $640,000 1966 8,873 23400 2.64* 72.13 C 8 ARAPAHOE 5050 S FEDERAL BLVD 1/12/90 $1,124,900 1977 10,986 40442 3.68* 102.39 C 9 JEFFERSON 12340 W ALAMEDA PKWY 7/20/90 $1,321,000 1984 15,812 50835 3.21* 83.54 C 10 ARAPAHOE 5050 S BROADWAY 8/22/69 $870,900 1982 10,081 79275 7.86* 86.39 C 11 WELD 1041 MAIN WINDSOR 11/30/90 $492,000 1982 4,363 58370 13.38 112.77 86.01 D 12 WELD 1000 10 ST GREELEY 12/7/87 $1,575,000 1974 17,042 76000 4.46* 92.42 76.81 B 13 WELD 3690 W 10 ST GREELEY 10/28/85 $1,500,000 1981 11,094 142775 12.87 135.21 83.74 C 14 WELD 822 14 ST GREELEY 1/2/91 $625,000 1973 6,180 70785 11.45 101.13 68.77 D 15 WELD 1800 GREELEY MALL 12/12/88 $450,000 1973 6,530 44110 6.75* 68.91 62.16 C 16 WELD 213 1 ST EATON 7/31/91 $90,000 1926 2,080 2250 1.08* 43.27 41.10 C 17 ADAMS 112 HURON ST BRIGHTON 10/89 $909,300 1977 14,528 115062 7.92 62.59 42.79 C 18 ADAMS 8410 UMATILLA ST BRIGHTON 8/89 $746,800 1982 8,326 48658 5.87 89.69 73.53 C AVERAGES 4.41 91.11 67.44 *INCLUDED IN RATIO aji634 BANK LEASES BANK NAME & BLDG RENTAL LEASE ADDRESS AREA RATE START 1 CENTRAL BANK 11,094 14.71 NET 11/85 3690 W 10 ST GREELEY 2 UNION COLONY BANK 23,884 10.05 NET 7/86 1701 23 AV GREELEY 3 BANK OF WINDSOR 4,080 15.44 NET 5/85 1041 MAIN ST WINDSOR 4 NORLARCO BANK 4,588 17.00 GROSS UNK 2545 RESEARCH BLVD FT. COLLINS 5 NORWEST BANK 6,500 13.00 NET UNK 6500 JFK PARKWAY FT. COLLINS 6 FT. COLLINS 1ST IN 3,190 11.76 NET UNE 2701 S COLLEGE AV FT.COLLINS 7 VALLEY NAT'L BANK 7,744 13.11 MET ONE 1 VALLEY CENTER LOVELAND 8 NOR COLO S & L 3,200 7.31 NET 1986 3700 W 10 ST (CONVERTE➢ FROM S & L GREELEY TO OFFICE) 931634 'rA x -4. ,..-01..«-e. • IFyS h^R F -.- - ' '1 rn- _t .a ^r•- ''...�n 1 . _.�'t, � x y "MEW Fsvart- , „. s __,_ r z - '�` y #. u, fx mac. , W ✓2:.„ I� rt P II 4 n , X j.., t-',.• Ater, ' , ,", \I% t ` «" �� hIIIT7: 1!". 7 • . n �s\-1_ -v. '.P .^ is `µ{ W ' t i Ct� tt% pIQ 1 r 0 101 e i s } -f Air" _ �,. �� . ,x;" •" �� I4.4`' a ' I. 1 it let' 1 a,!IR c2 Lt• hs N _ 1 /t P r r �� ( 0/ ≥F ur p,� 4‘,,,>‘'' l � f!'1 + e ?.F ,-;.t.. 7 , j A• ',- lir x, 11L .r / �r lit 6 • �• in 1 • j , ,. ...., : ; ,...,,,,ii,,,. oodill-'' , C !� •. � 1 a. . • / 4..." it t T �'d ��.044 ..."7-C Ciriwa . '1 '1 .: ., 6 — 4'i .4 'rg.,:,' ;"' , 4 • pu , F _ * el", . -- -- 't ,�g 7 e, , .:-.:,-74n es rho-,'£,.* ci'ie .1 �i r+. �'\. . i t;,., Pilo. ..;,-'l -11 PARC TP: R PARCEL INQUIRY ASSMT YR: 1993 ATIIN022 PIN: 2810986 PARC: 096105315022 LAST UPDATE: 04/07/1989 GREELEY NATIONAL BANK ACTIVE ON: 09/16/1986 INACTIVE ON: / / MAPS: P 0 BOX 1098 GREELEY CO 80632 TAX AREA 0615 .106116 8007 DATE LAST ASSESS 04/24/1992 LAST ASSESS LAND 62790 LAST ASSESS BLDGS 1471520 TOTAL LAST ASSESS 1534310 2130 62790 PRIOR YEAR ASSESS 1534310 TOT LAND 62790 REC DT DEED TP NUMBER WOL DOC FEE 0.00 2230 1471520 GR 4832 LS TO 26 BLK44 TOGETHER WITH VAC N-S TOT BLDGS 1471520 ALLEY ADJ TO LOTS 12 THRU 23 & E-W VAC ALLEY ADJ TOTAL VALUE 1534310 WELD COUNTY ASSESSOR ATIBR25O PROPERTY SUMMARY PIN: 2810986 APPRAISAL YEAR 1993 BLDG OCCUPANCY RCN RCNLD X 001 BANK 0 5,074,196 IMPS TOTAL 0 5,074,196 COMMERCIAL LAND TOTAL 216,500 LAND AND IMPS TOTAL 5,290,696 *** tttttttttttttttttttttttttttttt tttttttttttttt $ttttttttttttt 931.634 • STATEMENT OF AGENCY Property Owner, BANC ONE OF COLORADO CORP. (holding company for the properties on the attached exhibit) , hereby appoints Tax Profile Services, Inc. (hereinafter TPS ) as Property Owner's representative in connection with the valuations for assessment of Property Owner's real and/or personal property which is identified as (see attached exhibit) and which is contained on property tax schedule numbers (see attached exhibit) for (various) County, Colorado for the year 1990,1991,1992,1993,1994 for taxes payable in 1991, 1992, 1993 , 1994, 1995. TPS shall have full authority to review all applicable records relating to the valuation for assessment of such property; to negotiate the valuation for assessment of such property with the county assessor, with any representative of the assessor's office, or with the county, at amount which TPS deems appropriate in the circumstances; and to pursue any statutory remedies which client may possess before the county assessor, County Board of Equalization, Board of Assessment Appeals, District Court, Appellate Courts, or in binding arbitration in the Property Owner's name and in Property Owner's behalf THIS STATEMENT OF AGENCY SHALL REMAIN IN EFFECT UNTIL REVOKED IN WRITING BY PROPERTY OWNER. SIGNATURE(S) OF PROPERTY OWNER William A. McLain (# 6941) Attorney for Property Owner AFFILIATED BANKSHARES OF COLORADO PROPERTY ADDRESS COUNTY SCHEDULE NUMBER 1 5500 W. ALAMEDA AVE JEFF. CO. 060669 LAKEWOOD, CO 80226 2 333 W. HAMPDEN AVE. ARAPAHOE 1971-34-3-0-73 ENGLEWOOD, CO 80110 3 5734 S. PRINCE ST. ARAPAHOE 2077-16-3-16-018 LITTLETON, CO 80120 4 2696 S. COLORADO BLVD. DENVER 2A-06303-01-013 DENVER, CO 80222 5 2500 ARAPAHOE AVE. BOULDER 235 BOULDER, CO 80302 6 1800 BROADWAY BOULDER 9262 BOULDER, CO 80302 7 200 N. PUBLIC ROAD BOULDER 20952 LAFAYETTE, CO 80026 8 833 MAIN STREET BOULDER 19393 LOUISVILLE, CO 80027 9 603 S. BROADWAY BOULDER 12918 BOULDER, CO 80307 10 2000 S. COLLEGE AVE. LARIMER 666351 FT. COLLINS, CO 80525 11 200 EAST 7TH STREET LARIMER 444766 LOVELAND, CO 80537 12 1905 WEST EISENHOWER BLVD LARIMER 369004 LOVELAND, CO 80537 13 119 FIRST STREET 0707-12-3-09-013 AULT, CO 80610 14 1 AFFL. NATAL BANK PLAZA WELD 961-05-3-15-022 822 SEVENTH ST. GREELEY, CO 80631 15 HILLSIDE MALL WELD 961-17-3-18-007 331634 2600 11TH AVE. 961-17-3-18-0041 GREELEY, CO 80631 16 2600 W. 10TH ST. WELD 0959-12-1-04-003 GREELEY. CO 80631 17 4190 AUSTIN BLUFFS PKWY EL PASO 6326-21-6-029 COLORADO SPRINGS, CO 80918 18 30 E. PIKES PEAK AVE. EL PASO 64073-19-011 COLO. SPRINGS, CO 80903 19 UPTOWN FACILITY EL PASO 64181-17-019 BOULDER & TEJON COLO. SPRINGS, CO 80903 20 814 MANITOU AVE. EL PASO 74053-43-002 MANITOU SPRINGS, CO 80829 21 294 S. WORTH STREET 4857-33305006 CENTER, CO 81125 22 SAGUACHE SATELLITE OFFICE SAGUACHE 4487-72-29002 400 FOURTH STREET SAGUACHE, CO 81149 23 139 E. VICTORY WAY MOFFAT 08-065736431007 CRAIG, CO 81625 24 402 MAIN ST. DELTA 345713441009 DELTA, CO 81416 25 141 N. PARK SQUARE MESA 2697-172-13-018 FRUITA, CO 81521 26 900 S. TOWNSEND MONTROSE 3767-342-24-004 MONTROSE, CO 81401 27 146 G STREET CHAFFEE 3681324-20367 SALIDA, CO 81201 28 445 E. 124TH AVE. ADAMS 1573-34-0-09-026 THORNTON, CO 80241 29 8461 DELAWARE ST. ADAMS 1719-27-2-00-015 THORNTON, CO 80221-4821 931.634 3 TAX PROFILE SERVICES, INC. NARRATIVE REPORT 3,::1634 J \\\'p CLERK TO THE BOARD P.O.BOX 758 I GREELEY,COLORADO 80032 (303)358.4000 EXT.4225 WI D COLORADO February 12, 1993 National Bank of Greeley Greeley National Bank West Greeley National Bank Affiliated National Bank c/o Banc One of Colorado Corporation 1125 17th Street, Suite 1500 Denver, Colorado 80202 RE: SCHEDULE NUMBERS 961-17-3-18-007 and 009, 961-05-3-15-022, 0959-12-1-04-003, and 0707-12-3-09-013 Dear Property Owner: • This is to advise you that the Board of Weld County Commissioners will hear your petitions for tax abatement or refund on the property described as: SITUS Hillside Mall 2600 11th Avenue, Greeley, CO 80631; SITUS 7th St. and 9th Ave. , Downtown, Greeley; SITUS 2600 West 10th Street, Greeley, CO 80631; and Situs 119 Fist Street, Ault, CO 80610. The meeting is scheduled for Monday, February 22, 1993 at 9:00 a.m. at which time you may be heard. The Assessor is recommending that the Board DENY your petitions. The meeting will be held in the Chambers of the Board, Weld County Centennial Center, First Floor, 915 10th Street, Greeley, Colorado, at th? above specified time. If you have any questions concerning this matter, please do not hesitate to contact this office. Sincerely, Donald D. Warden, Weld County Clerk to the Board Deputy C1 rk to the Board XC: Assessor — W. Lasell County Attorney Q�+ c�A Tax Profile Services J iV '3 Banc One - Downtown Greeley Schedule / 0961-05-3-15-022 822 Seventeenth Several factors have contributed to the decline in value regarding the bank properties located in Weld County. The first and most influential factor is the economic obsolescence attributable to the entire State of Colorado during the economic downswing of the late 1980's. Economic Obsolescence is defined as: External obsolescence, the diminished utility of a structure due to negative influences from outside the site, is incurable on (sic) part of the owner, landlord, or tenant. The total value loss due to external obsolescence must be allocated between the land and the improvements. External obsolescence can be caused by a variety of factors - e.g. , neighborhood decline; the property's location in a community, state, or region, or market conditions. An estimate of external obsolescence should be based on thorough neighborhood or district analysis.l Our analysis of the banking industry throughout State of Colorado reflects a tendency to overvalue bank facilities, primarily caused by the incorrect utilization of the cost approach to value. Almost all county assessors place their prime reliance on this approach. Without correcting this approach in recognizing functional obsolescence (both curable and incurable) , and external obsolescence, bank properties experience an overvaluation of 40% on average. The Weld County Assessor has recognized that the cost approach to value would need considerable adjustments in the form of depreciation that would render this approach unreliable. The Assessors office as well as the petitioners representatives have placed the income approach to value as the best indicator of true market value. The market approach was used as a measure to support the value conclusion. Cost Approach: S5.058.500 Income Approach: S3 .763.261 Market Approach: S3.996.000 Value Conclusion: $3.763.261 'The Appraisal of Real Estate, American Institute of Real Estate Appraisers, Ninth Edition, p.395 931634 SUMMARY OF FACTS AND CONCLUSIONS LOCATION: 822 Seventeenth, Greeley CO 80631 SITE DESCRIPTION: Commercial land SE corner of Seventeenth Avenue, 54 ,125 s.f. m/1 supports 109 ,737 s.f. commercial/bank building ZONING: Commercial IMPROVEMENT DESCRIPTION: Commercial Building Occupancy Bank 23 ,525 s.f. of first floor, Office 76 ,024 on the 2nd through 7th floors, 6 ,720 s.f. entire 4th floor utility, 2 ,508 s.f. entire 8th floor mechanical ASSESSOR'S PARCEL NUMBERS 0961-05-3-15-022 1990 REAL ESTATE TAXES: $159 ,797 HIGHEST AND BEST USE: As Appraised, Commercial Bank and Office PROPERTY RIGHTS APPRAISED: Fee Simple EFFECTIVE DATE APPRAISED: 30 June, 1988 POTENTIAL GROSS INCOME: 946 ,430. 00 STABILIZED VACANCY RATE: Appraised and Economic Vacancy ESTIMATED OPERATING EXPENSES: 35% Expense to Income OVERALL CAPITALIZATION RATE: 13 .2% MARKETING TIME: 2 to 3 years MARKET VALUE "As Is": $3, 763 , 261.00 931634 TAX PROFILE SERVICES, INC. GENERAL INFORMATION Introduction As described in this report, an appraisal was made of certain real estate identified to us as the property of Banc One Colorado Corp. , located in various cities in Colorado. This appraisal was made to express opinions as of June 30 , 1988, of the market values of the various interests held in the real estate as if offered for sale in the open market and the value in use of each property. We understand these opinions of value are to be used for the purpose of assessing Ad Valorem Taxation. It is entirely inappropriate to use this appraisal for financing or any other noninternal purpose. Market Value is defined as the most probable price in cash, terms equivalent to cash, or in other precisely revealed terms, for which the appraised property will sell in a competitive market under all conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. For properties held in fee simple interest, the land, land improvements and buildings were valued as if offered in the open market for a reasonable time in which to find a buyer. We have assumed the properties to be available for development to their highest and best use, free and clear of all liens and encumbrances . Value in Use is defined as value concept which is based upon the productivity of an economic good to its owner-user. Value in use may be a valid substitute for market value when the current use is so specialized that it has no demonstrated market and when the use is economic and likely to continue. Value in use is interpreted to be synonymous with Tax Profile Services, Inc. 's definition of Fair Market Value - Continued Use. Fair Market Value is defined as the estimated amount at which the property might be expected to exchange between a willing buyer and a willing seller, neither being under compulsion, each having reasonable knowledge of all relevant facts, with equity to both. The continued use premise assumes that buyer and seller contemplate retention of the facilities at their present location for continuation of the current operations. This opinion of fair market value is not intended to represent the amount that might be realized from piecemeal disposition of the property in the marketplace or from some other use of the property. We did investigate all financial information relative to the subject properties. In our opinion of fair market value under conditions of continued use, we assumed that prospective earnings would provide fair returns on the fair market values of the properties included in the appraisal. We did not test the adequacy of the earnings to justify an investment in the assets at the appraised amount. 93163, TAX PROFILE SERVICES, INC. Fee Simple Interest is defined as an absolute fee, free of limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power, and taxation. Leased Fee Estate (Interest) is defined as an ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others. It usually consists of the right to receive the contract rent provided by the lease, the reversion of the real estate at the endof the lease, plus any other benefits, but minus any penalties according to the provisions of the lease. Leasehold Estate (Interest) is defined as the right to use and occupy real estate for a stated term and under certain conditions as conveyed by lease (the value of which arises from the margin of the economic productivity of the property as measured by the difference between economic and contractual rents) . We appraised only the real estate, including land, land improvements, buildings and fixed building service equipment. For value in use, we have included teller counters, drive-thru windows, pneumatic tube systems, safe-deposit boxes, and vaults and vault doors. The appraisal investigation included a personal inspection of each property. Banc One Colorado Corp. , will be referred to hereafter in this report as "Bank One" or "the company" . 931634 TAX PROFILE SERVICES, INC. At the request of the client, the content of this appraisal report has been limited to that data presented herein. As such, it represents something less than a full and complete appraisal report. However, the substance of the appraisal investigation meets all of the requirements of a full and complete appraisal assignment and a complete record of all analyses and conclusions leading to the opinions of value stated herein has been retained in the appraisers; files. Testimony or attendance in court or at any other hearing is not required by reason of this appraisal unless arrangements are previously made within a reasonable time in advance therefor. Possession of this report or any copy thereof does not carry with it the right of publication. No portion of this report (especially any conclusion to use, the identity of the appraiser or the firm with which he/she is connected, or any reference to the American Institute of Real Estate Appraisers, the Society of Real Estate Appraisers, or the designations awarded by these organizations) shall be disseminated to the public through prospectus , advertising, public relations, news, or any other means of communication without the written consent and approval of Tax Profile Services, Inc. . For some locations, the valuation herein reported relates only to a fractional interest in the real estate involved, and the value of this fractional interest plus the value of all other fractional interests may or may not equal the value of the entire fee simple estate considered as a whole. The fractional interests herein appraised relates to the leased fee estate and the leasehold interest. 931634 BANKS VALUATION METHOD INCOME APPROACH The rental rates for banks were developed by utilizing bank rental data with or without office space (office space of 10,000 square feet and greater) . MARKET RENT To estimate market rent for bank/office buildings in the Metro Denver area, a rent survey was undertaken. These comparables have a rental range from $4 . 38 to $11 . 54 per square foot, depending on visibility, access, condition, and functional utility. Please see "Rent Survey" chart. The comparison of rentals in the appraisal process requires great care in the analysis. The data can provide strong insight into rental value disparities relative to access and visibility. The data can also be used to analyze the similarity and differences in building sizes, age, quality, and overall condition. The median lease of $8 . 50 was indicated by the "Rental Chart" . The mode of $9. 00 was selected to represent both small and large bank buildings. The mean or average of all rental rates was $8. 36, which we believe to be an accurate representation of the rental rates in the Metro Denver market. Furthermore , agents and property managers indicate that location, high visibility and the ease of access were primary factors which dictate higher lease rates and occupancy levels of bank building space, when compared to use as general office space. VACANCY Single tenant rental information suggest stabilized occupancy in the 75% to 100% range. With the specialized "bank use" , a higher occupancy rate appears justified. We conclude that an occupancy t� rate of 90% to 95% is a reasonable estimate of bank buildings or i3b "single tenant" occupancy levels. Therefore, over the typic investor holding period of the property, a vacancy rate of 8A is anticipated for the subject property's rentable space. This estimate is based on market buyer's anticipations and due to the longer term lease structure of bank tenants. Valuation Method - Banks 931634 1 EXPENSES Expenses were estimated similarly with general office buildings. Bank property expenses are generally higher due to increased repair/maintenance, utility costs, reserves/replacement, and 24 hour security. Office buildings in Metro Denver are commonly expensed at 35% of income. Due to the increased cost considerations a reasonable estimate of 40% of income appears justified. Management fees will range from 3% to 5% at local management companies, depending on the size and marketing structure of each individual property. Reserves and replacements is an expense for the normal replacement of short lived items, such as; floor covering, fixtures, painting, roofing, equipment, and preparing units for new tenant occupancy. The quality of a replacement program often influences the property's value and market appeal. These items are exposed to heavy use and must be replaced at regular intervals. It is necessary to project this charge in an operating expense to accurately reflect the property's operating cost. Valuation Method - Banks 931634 2 1NK RENT SURVEY NAME/LOCATION SURVEY DATEit BUILDING $ RENT AREA SQ. FT. FIRST NATIONAL BANK MARCH 1990 7. 852 $10. 39 JEFFERSON COUNTY CENTRAL BANK JUNE 1990 21,592 $9.45 JEFFERSON COUNTY CITYWIDE BANK JUNE 1990 4 ,699 $7 .00 JEFFERSON COUNTY $8.00 $8.50 CAPITOL FEDERAL BANK MARCH 1991 4 ,800 $6.07 JEFFERSON COUNTY CAPITOL FEDERAL BANK MARCH 1991 5,100 $9. 48 JEFFERSON COUNTY CREDIT UNION JUNE 1991 44 , 368 $4 . 38 JEFFERSON COUNTY CAPITOL FEDERAL BANK MARCH 1991 1,980 $8.51 JEFFERSON COUNTY COLO. NATIONAL BANK JUNE 1991 10 , 262 $11.54 JEFFERSON COUNTY COLO. NATIONAL BANK JUNE 1991 8 ,792 $10.65 JEFFERSON COUNTY INDUSTRIAL BANK JUNE 1991 6 ,232 $5. 61 JEFFERSON COUNTY COLUMBIA SAVINGS JULY 1991 4 ,800 $7. 94 JEFFERSON COUNTY BANK WESTERN JUNE 1990 11,592 $6 . 97 ARAPAHOE COUNTY CONFIDENTIAL MARCH 1991 2, 200 $9. 00 SOUTH DENVER, CO CONFIDENTIAL MARCH 1991 3 ,172 $8.42 EAST DENVER, CO BANK WESTERN JUNE 1990 3 ,276 $7 . 25 931634 BEAR VALLEY BANK WESTERN JUNE 1990 7,420 $9 .78 BOULDER GUNBARREL jE 71)412 .5%4,L,s y m , R.ej/se U/ ,ie S ems. c ,—a fe bee.meeK the Lute yea / 07- nit „cited ,+ nni* d, BANK WESTERN JNE 1990 20,060 $9. 1 ENGLEWOOD BANK WESTERM JUNE 1990 3 ,867 $7.50 PUEBLO MALL BANK WESTERN JUNE 1990 6,000 $7.50 PUEBLO SUNSET BANK WESTERN JUNE 1990 16, 391 $10. 89 U. HILLS, DENVER MEAN $8.36 MEDIAN $8. 50 MODE ^y g_:: 7,50 931634 TAX PROFILE SERVICES, INC. Highest and Best Use In the Appraisal of Real Estate, Ninth Edition (page 42) , Highest and Best Use is defined as "the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and results in the highest value. " It may also be defined as that legal use which will produce the highest present value to the property as a whole, or the highest and most profitable continuous use for which the property is adapted and needed, or likely to be in demand in the reasonably near future. Four stages are included in the analysis of highest and best use: Possible Use Determine the physically possible uses for the site Permissible Use Determine which uses are legally permitted for the site Feasible Use Determine which possible and permissible uses will produce a net return to the site Most Profitable Use Determine which feasible use is the most profitable The highest and best use of the land as if vacant and available for development may be different from the highest and best use of the property as improved; this is true when the improvements do not constitute an appropriate use. The existing use will continue unless and until the land value in its highest and best use exceeds the sum of the value of the entire property in its existing use and the cost to remove the improvements. Therefore, our analysis of highest and best use includes consideration of the property under two assumptions: (1) as if vacant and available for development and (2) as presently improved. These two analyses are then correlated into a final estimate of highest and best use. 931634 INCOME ANALYSIS In the income capitalization approach to valuation, estimates are made of the potential gross annual income that might be expected from rental of the real estate and of expenses that might be incurred by the owner-lessor. Resulting net income is then capitalized at an appropriate rate to indicate the value of the property as an investment. The capitalization rate, which is market-derived, represents the relationship between net annual income and value. In order to estimate economic rentals for the appraised properties and to project income streams, lease data concerning other properties were investigated. Vacancy and collection allowances and management fees were estimated for each property. Other expenses have been estimated based on past property history, expenses incurred at similar properties, and interviews with real estate brokers, appraisers, and other knowledgeable people in the area. In selecting an overall capitalization rate, consideration was given to first mortgage and equity return requirements, age and condition of the properties, market conditions, and the overall rate as shown in the general real estate market. 931634 SURVEY FOR: WELD COUNTY BOARD OF ASSESSORS PROPERTY OWNER: BANC ON OF COLORADO CORP ADDRESS: 1125 17TH STREET TYPE: BANK QUALITY OF CONSTRUCTION: ABOVE AVERAGE CONDITION: ABOVE AVERAGE YEAR OF CONSTRUCTION: 1974 BANK OFFICE ANNEX NET LEASABLE 23 ,525 76 ,024 18 , 800 RENT PER SQUARE FOOT $10.00 $7.50 $7.50 POTENTIAL GROSS INCOME $235,250 $570 , 180 $141 ,000 LESS VACANCY 5% 20% 40% EFFECTIVE GROSS INCOME $223 ,488 $456,144 $84 ,600 LESS EXPENSES* 35% 35% 35% NET OPERATING INCOME $145, 267 $296,494 $54,990 OVERALL CAP RATE 13 . 2% 13 . 2% 13 . 2% ESTIMATE OF VALUE $1,100,507 $2, 246,164 $416,591 TOTAL ESTIMATE OF VALUE $3 ,763 ,261 1987 1988 1989 1990 * HISTORICAL EXPENSES $448,979 $443 ,051 $477 ,049 $455,420 931634 Band of Investment Technique Market information indicates that available funding for properties of like utility to the subject are typically written on a cash sale or merger basis, therefore market interest rates for the base period must be used to determine the capitalization rate. As of June 30 , 1988 the prime interest rate was 9.5%, including 1.5% for a conservative increase to market rates, yields an 11% cost of funding. Typical loans written during this period on typical propertes were at a 70% loan to value ratio. This scenario yields a mortgage constant of .1166 assuming a 25 year amortization period at 11% . The equity dividend rate has been estimated at 10%. The Band of Investment Technique is developed as presented below: .70 (Mortgage Ratio) x .1166 (Mortgage Constant) = .08162 .30 (Equity Ratio) x . 10 (Equity Dividend Rate) = .03000 Ad Valorem Taxes = .02000 Indicated Capitalization Rate = .13162 Rounded To: 13. 2% Due to the mill levy being 104 mills, the ad valorem must be added onto the capitalization rate calculation as it is not being deducted as an expense on the attached income approach. • 931634 ! COST ANALYSIS In the cost approach to valuation, an estimate is made of the current cost of replacement or reproduction new of the improvements. This amount is then adjusted to reflect depreciation resulting from physical deterioration, wear and tear, and utility, on the basis of personal inspection and comparison with component parts of similar new units. This analysis also recognizes factors of functional and external obsolescence. Cost of Replacement is defined as the estimated cost to construct, at current prices, improvements with utility and/or production capacity equivalent to the improvements being appraised, using modern materials and current standards, design, and layout. This estimated cost assumes construction takes place at one time with current market prices for materials , labor and manufactured equipment, contractors' overhead and profit, and fees, but without provision for overtime, bonuses for labor, and premiums for material or equipment. Fixed items such as pneumatic tube systems and teller counters have been added to this number. Cost of Reproduction New is defined as the estimated cost to construct, at current prices, an exact duplicate, or replica, of all of the improvements being appraised, using the same materials , construction standards , design, layout, and quality of workmanship, and embodying all the subject's deficiencies, superadequacies, and obsolescence. This estimated cost assumes construction takes place at one time with current market prices for materials, labor and manufactured equipment, contractors' overhead and profit, and fees, but without provision for overtime, bonuses for labor, or premiums for material or equipment. Physical deterioration is a form of depreciation and is the loss in value resulting from wear and tear in operation and exposure to the elements. Functional obsolescence is a loss in value caused by factors inherent within a building or building equipment unit, such as charges in construction materials and techniques, which result in excess capital costs in existing facilities, lack of full use of space, and inability to expend or update the property. External obsolescence is an incurable loss in value caused by negative influences outside the property itself, such as general economic conditions, availability of financing, or inharmonious property uses. The adjusted cost indication is then added to the estimated market value of the land. The estimated cost of replacement or reproduction new of the land improvements and buildings was based on data in the Marshall & Swift's Cost Estimator Service, adjusted for costs prevailing in the respective areas. Depreciation is based on the observed condition of each facility, with consideration given to the age and economic life of the improvements and market conditions. 931634 COST ESTIMATE FOR: Weld County Board of Commissioners PROPERTY OWNER: Banc One of Colorado Corp ADDRESS: 1125 17th Street, Denver CO SURVEYED BY: sds/tps DATE OF SURVEY: 3/27/93 DESCRIPTION: OCCUPANCY: BANK FLOOR AREA: 109,737 Square Feet AVERAGE STORY HEIGHT: 16.0 Feet CLASS: B Reinforced Conc. Frame EFFECTIVE AGE: 14 Years COST RANK: 2 .0 Average CONDITION: 4. 0 Good NUMBER OF STORIES: 7.0 COST AS OF: 06/88 EXTERIOR WALL: Concrete and Glass Panels 100% HEATING AND COOLING: Hot and Chilled Water 100% OTHER FEATURES: Elevator Serving 85 , 769 Square Feet UNITS COST TOTAL BASIC STRUCTURE COST: 109 ,737 84 . 30 9 , 250,903 LESS DEPRECIATION: Physical Depreciation <15. 0%> <1 ,387 ,635> Functional Depreciation <10 .0%> <925,090> Locational Depreciation <25.0%> <2, 312,726> Total Depreciation <50.0%> <4 ,625,451> DEPRECIATED COST 4 ,625,452 Estimated Land Value 216,500 INDICATED VALUE BY COST APPROACH: 4,841,952 ROUNDED TO NEAREST $100 4 ,842,000 Cost Data by MARSHALL & SWIFT 931634 Breadkdown Method of Esitmating Accrued Depreciation Type Curable Incurable Physical Items of deferred Classified Detererioration maintenance according to short- and long-lived Cost to cure items Functional Physical age-life Obsolescence method A. Deficiency 1 . Cost to cure 1. Capitalization Requiring over cost if of net income loss 1 . Addition installed new due to deficiency during construction 2 . Substitiution or 2. Cost to cure 2 . Capitalization Modernization minus remaing value of net income loss o f existing due to deficiency components B. Superadequacy Not included when Capitalizaiton of base is replacement added costs of cost ownership (taxes, insurance , m a i n t a n a n c e , utilities) External Rarely curable on Capitalization of Obsolescence part of owner property's net income loss due to external obsolescence ; proportionate allocation to improvement 931634 DETERMINING ACCRUED DEPRECIATION Accrued depreciation is the loss from the upper limit of value when new, of property having a limited economic life, according to Property Assessment Valuation, IAAO, 1977, page 157. Its measure is the difference between the current replacement cost new and the present value of the equipment as of the date of the appraisal. The causes of accrued depreciation are divided into three categories. 1 . Physical Depreciation (deterioration) a. Wear and tear from use or from the elements. b. Negligent care or inadequate maintenance. c. Damage from moisture, breakage, or fire. 2 . Functional Obsolescence a. Poor plan, design, or style. b. Mechanical inadequacy or superadequacy. c. Functional inadequacy or superadequacy due to size, style, or age. d. Technological innovation. e. Changes in manufacturing techniques. f. Changes in consumer tastes . 3 . Economic Obsolescence a. Adverse economic conditions . b. Passage of restrictive legislation. c. Loss of material or labor sources. Physical depreciation and functional obsolescence relate to deficiencies within the property itself. Deficiencies may be classified as either curable or incurable. They are curable if the cost to repair, replace, or correct them is economically feasible. They are incurable if the deficiencies are physically or economically impractical to repair, replace, or correct. Economic obsolescence is due to negative forces outside the property. This type of depreciation is seldom curable and is generally classified as incurable. Losses in value due to functional or economic causes are not related to the actual age of the property but rather to changing market forces that economic life, i.e. its full life after maintenance, rather than the actual physical age of the equipment. Therefore accrued depreciation is based upon economic life rather than physical life. Depreciation, as used in appraisal, differs from depreciation as used in accounting. Accountants are interested in income tax deduction justification or allocation of the investment made in assets to various profit centers. In contrast, the appraiser attempts to estimate the actual value of the asset as of the date of the appraisal. The appraiser's value seldom reflects the depreciation schedules used by accountants for income tax purposes. 931634 The appraiser considers and documents all elements of physical, functional and economic obsolescence as of January 1 each year before placing a value on personal property. MEASURE INCURABLE PHYSICAL DEPRECIATION In order to measure incurable physical depreciation, the assessor determines the total economic life, the effective age, the remaining economic life and the appropriate depreciation amount to apply to the subject property. To make a supportable estimate of incurable physical depreciation, the appraiser first determines the correct total economic life of the equipment being appraised. Total economic life is the total period of time over which it is anticipated that equipment can be profitably used. It is described as the sum of the effective age and the remaining economic life. Total economic life is usually less than the physical life of the property. The Economic Life Guidelines (see Addendum A) are provided to assist in the Estimation of total economic life. Analysis of field data has indicate that the original estimate of economic life should be revised. The data used for this appraisal is defensible, reasonable, and supported by documented evidence. 931634 MARKET DATA ANALYSIS Sales Comparison Approach In the sales comparison approach to valuation, similar properties recently sold or currently offered for sale in the local market are analyzed and compared with the property being appraised. Adjustments are made for differences in such factors as time of sale; location; size, type, age, and condition of the improvements; and prospective use. The approach has its greatest value in appraisal situations involving land or improved properties with common elements and similar amenities. In the absence of sales with sufficient similarity to allow direct comparison, other reasonably comparable improved properties are considered because they provide a range of unit prices within which the current real estate market is operating and within which the appraised property would be expected to sell for whatever use the free market might develop. 931634 USE VALUE The realities of current real estate and mortgage practices not only place emphasis on market value, but also require more frequent consideration of other kinds of value. One of these, use value, is a concept based on the productivity of an economic good. Use value is the value a specific property has for a specific use. Use value focuses on the contributory value of the real estate to the enterprise of which it is a part, without regard to its highest and best use or the monetary amount that might be realized upon its sale. Use value may vary, depending on the managemeny of the property and external conditions effecting that business or industry. For example, a manufactoring plant designed around a particular assembly process may have a "use value" before a major change in assembly technology and another use value afterward. When appraising a type of property that is not commonly exchaged or rented, it may be difficult to determine whether an estimate of market value or use value is appropriate. Such properties, called limited market properties, can cause special problems for appraisers . A limited market property is a property that has relatively few buyers at a particular time. A special use property such as as, auto dealership, theater, bowling alley, and banks are limited market properties that typically appeal to relatively few potnetial purchasers. Many limited-market properties include structures with unique physical design, special construction materials, or layouts that restrict their utility to use for which they were originally built. These properties usually have limited conversion potential and, consequently, are often called special propse or special design properties. Limited market properties may be appraised for market value based on their current use or the most likely alternitive use. Due to the relatively small market and the length market exposure needed to sell such properties, there may be little evidence to support a market value estimate based on their current use. Nonetheless, if a market exsists, the appraiser must search deligently for whatever market value is available. If a property's current use is so specialized that there is no demonstrable market for it, but the use is viable and likely to continue, the appraiser may render an estimate of use value. Such an estimate should not be confused with a market value estimate. However, it is sometimes necessary to estimate market value in these situations for legal purposes, i.e. ad valorum taxes. In these cases, appraisers must comply with the legal requirements, relying on their judgement rather than direct market evidence. 931634 UTILITY Utility is tha ability of a product, service or property to satify a human want, need, or desire. All properties must have utility to tenants, owner-investors, or owner-occupants. Usually, the value of amenities is related to their desirability and utility to the owner-occupant, but their value can also be converted into income in the form of rent. The benefits from income-producing properties can usually be measured in cash flow. The influence of utility on value depends on the characteristics of the property. Size utility, design utility, location utility and other specific forms of utility can significantly influence property value. 931634 PHYSICAL CHARACTERISTICS OF LAND In site description and analysis, an appraiser describes and interprets the value influences of all physical characteristics of the site, including the physical relationship of the improvements to the land and to the neighboring properties. Important physical characteristics include site size and shape, corner influences, plottage, excess land, topography, utility, site improvements, location, and environment. SIZE AND SHAPE A size and shape description includes a site's dimensions, street frontage, width, and depth, and sets forth any advantage or disadvantage caused by these physical characteristics. The effects of the size and shape of a property may effect its "highest and best" use, for development. Often, a site that is larger or smaller than normal will not have the same square foot value as neighboring sites. Size differences can affect value from an ideal or optimum size and frontage-to-depth ratio, an appraiser should recognize value tendencies when appraising sites of unusual size or frontage-to- depth ratios. EXCESS LAND The portion of a property's land area that represents a typical land-to-building ratio with the existing improvements may be considered an economic unit. Excess land, in regard to an improved site, is the surplus land not needed to serve or support the existing improvement. In regard to a vacant site or a site considered as though, excess land is the land not needed to accommodate the site's highest and best use. Such excess land may have its own highest and best use or may allow for future expansion. EXISTING USE The existing use is not the highest and best use of a site provided by the improvement is inconsistent with the changes in neighborhood use patterns, or industry changes. In such cases, the appraiser should apply consistent use criteria when valuing the land and improvements. Highest and best use may indicate multiple uses for a parcel of land or a building. In multiple use situations, the appraiser estimates the contributory value of each use, making sure that the sum of the individual values does not exceed the value of the total property. 931634 TAX PROFILE SERVICES, INC. ASSUMPTIONS AND LIMITING CONDITIONS No responsibility is assumed for matters legal in nature. No investigation has been made of the title to or any liabilities against the properties appraised. The appraisal presumes, unless otherwise noted, that the owner's claim is valid, the property rights are good and marketable, and there are no encumbrances which cannot be cleared through normal processes. To the best of our knowledge, all data set forth in this report are true and accurate. Although gathered from reliable sources , no opinions, or estimates identified as being furnished by others which have been used in formulating this analysis. Land areas and descriptions used in this appraisal were obtained from surveys or public records and have not been verified by legal counsel or a licensed surveyor. No soil analysis or geological studies were ordered or made in conjunction with this report, nor were any water, oil , gas, coal , or other subsurface mineral and use rights or conditions investigated. Substances such as asbestos, urea-formaldehyde foam insulation, other chemicals , toxic wastes , or other potentially hazardous materials could, if present, adversely affect the value of the properties. Unless otherwise stated in this report, the existence of hazardous substances , which may or may not be present on or in the properties, was not considered by the appraiser in the development of the conclusions of value. The stated value estimate is predicated on the assumption that there is no material on or in the properties that would cause such a loss in value. No responsibility is assumed for any such conditions, and the client has been advised that the appraisers are not qualified to detect such substances , quantify the impact on values, or develop the remedial cost. We have made a physical inspection of the properties and noted visible physical defects, if any, in our report. This inspection was made by individuals generally familiar with real estate and building construction. However, these individuals are not architectural or structural engineers who would have detailed knowledge of building design and structural integrity. Accordingly, we do not opine on, nor are we responsible for, the structural integrity of the properties including their conformity to specific governmental code requirements, such as fire, building and safety, earthquake, and occupancy, or any physical defects which were not readily apparent to the appraisers during their inspection. The value or values presented in this report are based upon the premises outlined herein and are valid only for the purpose or purposes stated. 931.634 TAX PROFILE SERVICES, INC. CERTIFICATE OF APPRAISER I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and represent the unbiased professional analyses, opinions, and conclusions of Tax Profile Services, Inc. Tax Profile Services, Inc. , has no present or prospective interest in the property that is the subject of this report, and has no personal interest or bias with respect to the parties involved. The analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Practice of the American Institute of Real Estate Appraisers. The use of this report is subject to the requirements of the American Institute of Real Estate Appraisers relating to review by its duly authorized representatives. I have made a personal inspection of the property that is the subject of this report. Anyone providing significant professional assistance is identified on the signature page of this report. f y M. Monroe 931634 AS0026 931634 FILE CONTAINS PHOTOS - PLEASE SEE ORIGINAL FILE Hello