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Home My WebLink About740654.tiff Valuation Study of a Vacant Parcel of Land located at the Northeasterly Corner of Tenth Avenue and Tenth Street Greeley, Colorado by Harold A. Jungbluth, S.R.E.A. , M.A. I. and Charles R. Blazek, Associate as of February 15, 1974 Prepared for: Weld County Board of Commissioners P.O. Box 758 Greeley, Colorado 80631 740654 •ry s ♦ s6 *i r' 't . Oft i Npk ♦ :117 '. 1 Y.,.. e. M�.. a fY �t..,d llry • ' ' rte _(.}" n { y • • k f ,.� ;� 1► ` 7 +s +q i spa !- ..,.... ..... -,, ,:::...„, i , , ,,EE • itC , ! , 7� �,, r M le.,0 i',.* 5 '. -e- ' 1". '' ;,...1 t;',Ii‘ l'i i; ' ',' l'i' i 1 ' - : I. - ' .y 4 , pe.4if {� f � ft� 7 : 4 I ii I .. Si • F • " q t '� u )'Il. ,w TT • 'fir I. '% �{,;"F R - , r '�i. glit i 41 • ad 4,,,- „, iii, .. , • 4, •• ; * I ,..•1*,; . 'I Ti .7 ' 1:14i .., :::-.... 4‘..' lig'it Ail 'IrkP •, a. ` 4 . _ . it tir i .� • sue' pF` ♦ Y, y;.X {' # i 7 ' ' . • � ^ \� . '►. 1 ' n • , t 14",:' -. _ ,41: ��. zt �( � , { . l " 1, q`?r• •"r. 4 y� y, o-1 Z`k r~ 5' `, .• t .l (. et .� ti • el ...Ai' 'II'. ` $• I tt , j �4N� ,. '4� .. '' ., .b ' ' i w • '� : Harold 1. junghluth REAL ESTATE CONSULTANT PHONE 484.5029 SUITE 1000 (AREA PODS 503) SAVINGS BUILDING OAK AT HOWES FORT COLLINS, COLORADO 80521 February 20, 1974 Weld County Board of Commissioners P.O. Box 758 Greeley, Colorado 80631 Gentlemen: In accordance with your request, transmitted to the under- signed by Mr. Barton A. Buss, the appraisers have completed a study which has enabled them to estimate the market value of the property located at the northeast corner of Tenth Avenue and Tenth Street, Greeley, Colorado as of February 15, 1974. The property, identified on the aerial photograph appearing on the facing page is legally described in the Introduction section of the report, page i. The property rights appraised in the accompanying report are fee simple title ownership subject to current zoning regulations. Existing encumbrances, if any, have been disregarded. Market value, as used herein, is defined as: That price estimated in terms of money that a property will bring if exposed for sale in the open market allowing a reasonable length of time to find a purchaser who buys with knowledge of all the uses for which it is adapted and for which it is capable of being used and neither buyer nor seller acting under compulsion. The appraisers have inspected the subject property and have made careful investigation and analysis of matters pertinent to its value as reported in the following pages. The accompanying report contains the data and reasoning upon which the final value estimate has been predicated. MEMERRI AYESIOAK WSTTTUTS OP REAL ESTATE APPRAISERS * SOOIETT or REAL ESTATE APFRAISSRR Weld County Board of Commissioners Page II P.O. Box 758 Greeley, Colorado Based upon the appraisers investigation and analysis and upon all of the information and data contained in the accompanying report, the appraisers are of the opinion the market value of the subject property, as of February 15, 1974, is significantly expressed at - ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00) * * * * * * * * * * * * * * * * * Respectfully submitted, Harold A. n blur S.R.E.A. A. Charles R. Bla k Associate HAJ/m TABLE OF CONTENTS Title Page Aerial Photograph of Downtown Greeley (reverse) Introduction Page Purpose of the Value Estimate i Assumptions, Contingencies and Limiting Conditions of the Report v Qualifications of the Appraisers vii Foreword X Report Preface 1 Location and Site Description and Analysis 5 A. General 5 B. Highest and Best Use 6 C. Zoning 8 D. Summary 9 Methods of Valuation 12 Valuation of the Subject Property 15 Conclusions and Final Estimate of Value 19 Certification 21 * * * * * * * * * * * * * * * * * * * * PURPOSE OF THE VALUE ESTIMATE r The appraisers assignment is to analyze the economic and physical data relevant to estimating the market value of a vacant parcel of land located at the northeasterly corner of the intersection of Tenth Avenue and Tenth Street, Greeley, Colorado as of February 15, 1974. According to information furnished the appraise-s, the subject property is legally described as follows : Lots Seventeen (17) and Eighteen (18), in Block (65) , City of Greeley, Weld County, Colorado. The term market value, as used herein, is defined as: That price estimated in terms of money that a property will bring if exposed for sale in the open market allowing a reasonable length of time to find a purchaser who buys with knowledge of all the uses for which it is adapted and for which it is capable of being used and neither buyer nor seller acting under compulsion. As a preface to the value conclusion adopted for the property under appraisement, the appraisers are of the opinion general understanding of the several ingredients in the definition of market value is necessary. Initially, it is necessary to understand the difference between the terms price and value. Price is an historic fact. It is the sum of money actually paid for a property, or offered by a potential buyer, or asked by a would- be seller. Value is a price that reflects the capacity of an economic good to command other goods in exchange. Value is the price that would tend to prevail under specified conditions, which may or may not be realized. As a result, price and value are not synonymous and are in- frequently equal. Thus, the valuation of real estate involves the es- timation of value, not the prediction of price. Additionally, it should be understood that every value estimate is a forecast. The value of rights in real estate can be expressed as the present worth of the future benefits anticipated to be derived from the possession of those rights. Real estate is a long-term asset whose benefits, in the form of money income and/or ownership ,amenities, are PURPOSE OF THE VALUE ESTIMATE (CON'T) produced over a considerable period of time. Estimating the present worth or value of those benefits requires the appraiser to forecast market and property conditions in order to reach a judgment about what and how much those benefits most likely will be. Therefore, if market value is to be estimated, it is a forecast of a transaction price that would most probably occur provided specified market conditions are met. Thus, the specified market conditions the term market value assumes are: 1. Competitive market conditions. There must be several buyers and sellers competing with one another to provide alternatives to other market participants. 2. Well-informed or well-advised parties to the transaction each acting prudently for what he considers his own best interest. They must have reasonable, readily available knowledge about the property, its probable future income-producing capacity under present use; the alternative uses to which the property can be put; prevailing market conditions and market standards of acceptability; and the character and intensity of their competition. In brief, potential buyers and/or sellers are assumed to possess the typical knowledge about the property and the market that a prudent market participant can reason- ably be expected to have. 3. A reasonable turnover or marketing period must be allowed for the transaction to take place. There must be no undue time pressure on either buyer or seller. Market value reflects neither an immediate sale (especially for many types of special- purpose properties) nor an extended waiting period for the seller or buyer to achieve a specific price objective. It is also assumed that there is no fraud, collusion or mis- information on the part of either party. 4. Payment must be consistent with the prevailing standards of the market for the type of property, the type of property interest to be exchanged, and the type of transaction involved. Typical or normal financing and payment arrangements are pre- sumed. The terms of sale are also expected to be competitive with those on other similar properties in the same market. Therefore, regardless of the exact wording of the definition, mar- ket value contemplates the consummation of a sale and the passing of full title from seller to buyer by deed, under conditions whereby: 1. buyer and seller are free of undue stimulus and are motivated by no more than the reactions of typical owners; 2. both parties are well-informed or well-advised and act prudently, -ij- PURPOSE OF THE VALUE ESTIMATE '(CON'T) each for what he considers his own best interest; (1) 3. a reasonable time is allowed to test the market; and 4. payment is made in cash or in accordance with financing terms available in the community for the property type of its locale. (2) or 1. As defined by the courts, the highest price estimated in terms of money which a property will bring if exposed for sale in the open market allowing a reasonable time to find a purchaser who buys with knowledge of all the uses to which it is adapted and for which it is capable of being used. 2. Frequently, it is referred to as the price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressures. 3. It is the price expectable if a reasonable time is allowed to find a purchaser and if both seller and prospective buyer are fully informed. (3) The foregoing are two widely accepted formal definitions of market value. Each contains the essential elements included in the concept of market value and each enjoys professional recognition. Finally, market value is usually viewed from the perspective of the buyer. It is most frequently expressed as the maximum price that an informed buyer, acting rationally, would pay under the stipulated market conditions. Indeed, the character of the most probable type of purchaser tends to establish the limits and characteristics of "the market" in terms of which value is estimated. (4) Pursuant to completion of the assignment, the writers have con- sidered or included the following in the report. 1. An examination of the general economic and growth climate of the Greeley Community as the economic activity is, or may be; related to properties of the type under appraisement. (1) Real Estate Principles and Terminology, Society of Residential • Appraisers, April, 1960 (Pages 84 and 85) . (2) Ibid (3) Appraisal Terminology and Handbook, American Institute of Real Estate Appraisers, 1967 (Page 131) .• (4) William N. Kinnard, Jr. , Income Property Valuation, Heath • Lexington Books (Page 12) . -iii - PURPOSE OF THE VALUE ESTIMATE (CON'T) 2. A study of competitive properties and locations together with an analysis of the subject location to indicate the existing and anticipated desirability of the subject location in relation to competitive locations in the Greeley Community. 3. An estimate of the market value of the subject property in accord with recognized appraisal procedures and tech- niques. Data relative to the size of the parcel, zoning, etc. , are contained in the appropriate section of the report. * * * * * * * * * * The property rights considered in the value estimate includes all rights inherent in the ownership of real property in fee simple subject to existing zoning regulations. "Fee simple is the highest type of ownership in real estate known to the law". (5) The conclusions adopted as a result of the writers investigation have been based upon library data, local resource data and original research conducted by the appraisers to estimate the current market value of the subject property as accurately as possible under prevail- "-, ing economic conditions. The following sections of the report contain the data, reasoning and opinions upon which the final value estimate has been predicated. * * * * * * * * * * * * * * * * * * * * e•"". (5) Lisk, Law of Real Estate 1958 (Page 57) . -iv- ASSUMPTIONS, CONTINGENCIES AND LIMITING CONDITIONS OF THE REPORT The valuation study and the Certification which follows are expressly subject to the following assumptions, contingencies and limiting conditions together with any special limiting conditions specifically discussed in the report which are incorporated herein by reference. 1. The legal description, which has been furnished, is assumed to be correct and the writers assume no respon- sibility for matters legal in nature. Title to the prop- erty is assumed to be good and marketable and the prop- erty has been appraised as though under responsible ownership. 2. No improvement survey has been furnished the appraisers and no responsibility is assumed as to the correctness of the property lines. Maps, sketches and similar items included in the report are for use as visual aids only and should not be construed as surveys or engineering reports. 3. The information contained in the report has been obtained from what the appraisers believe are reliable sources; however, the appraisers cannot guarantee or be respon- sible for the accuracy of this information. In the in- stance of the market data information relied upon in the appraisal report, sources utilized are believed reliable; however, for varying reasons, it was necessary to rely upon information furnished by others therefore the ap- praisers cannot guarantee or be responsible for the accuracy of this information. 4. The appraisers have inspected the subject site; however it was not possible to personally observe conditions be- neath the soil therefore no representations are made as to these matters and unless specifically considered in the report, the value estimate is subject to any such conditions that could cause a loss in value. Subsidence in the area is unknown or uncommon, but the appraisers do not warrant against this condition or occurrence. Subsurface rights (mineral and oil) were not considered in the final value estimate. 5. Possession of this report does not carry with it the right of publication without the previous written consent of the appraisers. Additionally, neither the identifica- tion of the appraisers, nor any of the material contained in this report may be included in any prospectus, news- paper .publicity or advertising or as a :part of any printed material, or used in offerings or representation in con- nection with the sale of securities or participation interest to the public. -v- ASSUMPTIONS, CONTINGENCIES AND LIMITING CONDITIONS OF THE REPORT (CON'T) 6. The appraisers are not required to give testi- mony or to appear in court by reason of this appraisal inasmuch as no prior arrangements have been made in writing. 7. Neither all nor any part of the contents of this report shall be used for any purpose by any but the addressee without the previous written consent of the appraisers nor shall it be conveyed by any, including the addressee, to the public through advertising, public re- lations, news, sales or other media without the express written consent and approval of the authors, particularly as to valuation conclu- sions, the identity of the appraisers, or any reference to any professional society or institute or any initialled designations con- ferred upon the appraisers. 8. The delivery of this report to the addressee fulfills the writer's assignment and in the event conferences or expert testimony are de- sired a separate agreement shall be made as to time and compensation. * * * * * * * * * * * * * * * * * * * * -vi- • QUALIFICATIONS OF THE APPRAISERS Harold A. Jungbluth The writer has engaged in the valuation of residential , commercial, industrial, ranch and special purpose properties for transfer of owner- ship,condemnation, mortgage loan, ad valorem tax and other purposes, since 1947 and has ten years concurrent experience in mortgage financing. In addition to the aforementioned, the writer has conducted economic development, highest and best use and multiple family dwelling studies and analyses since 1961 . Some of the clients for whom valuation services and/or economic development, highest and best use and multiple family dwelling studies have been rendered are as follows: Businesses - Acacia Mutual Life Insurance Company The Ohio National Life Insurance Company Western Electric Company Continental Oil Company ' United States Steel Corporation Humble Oil Company General Mills, Inc. International Business Machine Corporation Insurance Company of North America Martin-Marietta Company • ITT - Bell & Gossett, Inc. Univac, Division of Sperry Rand Corporation Gulf Oil Company New York Life Insurance Company Geriatrics, Inc. Governmental - United States of America - General Services Administration State of Colorado - Department of Institutions City of Golden, Colorado City of Aurora, Colorado City of Fort Collins, Colorado City of Loveland, Colorado Banks - Denver-United States National Bank, Denver, Colorado First National Bank of Denver, Colorado First National Bank of Golden, Colorado Poudre Valley National Bank, Fort Collins, Colorado Chase Manhattan Bank, New York, New York Central Bank and Trust Company, Denver, Colorado First National Bank in Port Collins, Colorado -vii- QUALIFICATIONS OF THE APPRAISERS (CON'T) Savings and Loan Associations - Silver State Savings and Loan Association - Denver, Colorado Golden Savings and Loan Association - Golden, Colorado Great West Savings and Loan Association - Boulder, Colorado Home Federal Savings and Loan Association Fort Collins, Colorado Equitable Savings and Loan Association - Sterling, Colorado Loveland Savings and Loan Association - Loveland, Colorado Midland Federal Savings and Loan Association - Denver, Colorado , Others - Real estate firms, individual investors, • private individuals, and attorney's at law The writer has been actively engaged in the education of appraisers since 1958 as follows: Instructor at the University of Colorado Extension Division, Adult Education, in Land Economics and Real Estate Appraisal Faculty of Appraisal courses sponsored by the Society of Real Estate Appraisers at North Dakota State University and The University of Houston Guest lecturer at various conferences and seminars throughout the United States including Narrative Report Writing Seminars and Multiple Regression Clinic Workshops Currently the writer is a member of the - Society of Real Estate Appraisers President - Denver Chapter #9 - 1961 International Board of Governors - 1969 - 1971 1972 - 1973 Vice President, Society of Real Estate Appraisers - 1974 The appraiser has held the following National Offices - Admissions, (National Chairman r 1972) Education, (National Chairman - 1973) and Examination Committee, Society of Real Estate Appraisers, Chicago, Illinois Fort Collins Board of Realtors American Institute of Real Estate Appraisers w w w w w w w w w w w w w w w w w w w w QUALIFICATIONS OF THE APPRAISERS (CON'T) Charles R. Blazek The writer has engaged in the valuation of residential, commercial, industrial, ranch and special purpose properties for transfer of owner- ship, condemnation, mortgage loan, ad valorem tax and other purposes • since 1969, as an associate of Harold A. Jungbluth, S.R.E.A. , M.A.I. , and has five years concurrent experience in mortgage financing. In addition to the aforementioned, the writer has received the following formal education: • Enrolled at Colorado State University, Fort Collins, Colorado September, 1955, receiving a Bachelor of Arts Degree in Business Administration with a Teaching Certificate, August, 1960. Enrolled at Colorado State University, Fort Collins, Colorado 1962, receiving a Masters of Arts Degree in Education Admin- istration, with an Administrators Certificate, June, 1964. Additional Education: Graduate of American Institute of Banking Courses in Finance, Accounting, Law and Real Estate Closing; Graduate of National Mortgage Banking School, Ohio State University; Graduate of Real Estate Board Course, Colorado University; Graduate of Course I of American Institute of Real Estate Appraisers; Graduate of Course 101 of the Society of Real Estate Appraisers; Graduate of Course 201 of the Society of Real Estate Appraisers; Associate Member of, Colorado Chapter No. 9, Society of Real Estate Appraisers; Member of the National Young Men's Council, Society of Real Estate Appraisers; Instructor for University of Colorado, Real Estate Certificate Program; Instructor for Society of Real Estate Appraisers, Multiple Regression Techniques; Director of Denver Chapter No. 9, Society of Real Estate Appraisers, 1973 - 1974 w * w * * * w w w w * w * * w * * * * * i 1 ` -iX- FOREWORD r Real estate appraisals are made because someone has a problem some of which are extremely complex, as legal and financial issues. Thus, a decision-maker is confronted with a problem that requires an estimate of the value of specified rights in real estate in order to solve that problem. Such an estimate is an appraisal. If it is profes- sionally produced, the estimate of value will be economically and fi- nancially defensible in terms of a specified set of market conditions or decision criteria. The structure of real estate appraisal analysis is predicated upon a rational decision-making approach by informed decision-makers. That is to say, once presented with the best available information about the alternatives or decision choices confronting him, the decision- maker is presumed to apply logic in selecting the alternative course of action that promises to come closest to his stated objective. Real estate decision-makers, especially those dealing with income producing properties, are generally seeking to maximize or optimize'their economic well-being. This translates to selecting the alternative that appears to offer the most present wealth or higher current dollar value, usually based on a forecast future stream of benefits or dollar income to be received. The "best available information" on which the decision choice is made is (or should be) provided by an appraisal. Decision-makers needing and seeking an appraisal are typically action-oriented, and usually want to help to determine the best course of action for them in terms of their decision standards. One course of action that is frequently overlooked by potential decision-makers, is to take no action at all, and therefore, not to go through with the proposed transaction. (1) Frequently, the reasons which governed the actions or opinions of an individual or group of people at a specified time in history are lost or become an indistinguishable segment of the action to the extent that the individual or individuals are unable to recollect what prompted them to such action or opinion. Therefore, because the past has represented an important part in the development of the Greeley Community and because (1) William N. Kinnard, ,Jr. , Income Property Valuation, D.C. Heath and Company, 1971 . -x- FOREWORD (CON'T) r the present will someday represent a specified time in the history of the area, the writers are of the opinion economic, physical and social conditions pertinent to the era as these conditions tend to affect pro- jected real estate market conditions, particularly as these conditions are related to properties of the type of the subject, constitutes an important segment of tbe decision-making process. However in accord with the instructions of Mr. Barton A. Buss and because the Weld County Commissioners are conversant with the aforementioned economic, physical and social conditions pertinent to the era the appraisers have omitted such a discussion from this report feeling that such data would be re- dundant to the recepients. Inasmuch as value has been defined as "the present worth of the future benefits" which can be derived from real estate, the investor is concerned with not only past and present economic, physical and social factors which have or can affect his investment, he is also con- cerned with the predictable future economic, physical and social con- ditions which may influence values, thus a section discussing these anticipated influences has been included to enhance the rationale of the decision-making process. However, any prognostication or prediction as to future growth or economic expansion must be qualified or restricted to certain boundaries, thus, the trend opinions which follow in an appropriate section of the report are predicated upon the assumption that this country will not become involved in general hostilities in the foreseeable future. The trend opinions which follow are also predicated upon the assumption that recessionary influences are presently discernible in the analyses of sales activity of properties of the type under appraise- ment will not substantially affect the value estimates which follow. The trend opinions which follow are also predicated upon a contin- ued healthy regard for the law of the land by the citizenry of the Greeley Community, and a healthy moral attitude, unblemished by rioting, civil strife, etc. . Degeneration of the moral attitudes presently ob- served could result in disintegration of the real estate market as it is presently and predictably constituted. The trend opinions which follow also consider responsible monetary -xi- r FOREWORD (CON'T) and fiscal policies on the part of federal, state and local governments. Although the observable trend of federal governmental behavior is considered to be inflationary the writers are of the opinion the governmental actions which are likely to provide the most severe impact on properties of the type under appraisement are those concerned with increases in federal and state income taxes, real property taxes and the availability of mortgage financing. Thus, the following sections of the report represent the writers' opinion of present and pre- dictable future factors relative to real estate which can and do affect the success of a business or location. Data from which the value estimates have been predicated are included in subsequent sections of the report; however, it should be noted that no economic or numerical projection can be considered absolute. The value estimates which follow, there- fore, represent the best judgment of the writers ' as of the date of this report. * * * * * * * * * * * * * * * * * * * * -xii- PREFACE The growing interdependence of a city or community upon the state and nation emerges as a major factor in the complex relation- ship -between the local real estate market and the national economy. Desirable and marketable investments are now considered in the statewide and national scope as opposed to local considerations immediately after the World War II years. Furthermore, federal tax and monetary policies designed to encourage well-planned, economically feasible growth will exert a more widespread influence hence, local real estate markets are anticipated to be more sensi- tive to statewide and national trends and unless specific real estate investments and locations satisfactorily meet the challenge of being well-planned and economically feasible, less than optimum value is likely to be achieved. In order for real estate to attract capital investment, it must arouse the desire for ownership or use within a proportionate segment of the investing population. When the element of scarcity is introduced and combined with the element of desire (investment population) optimum value is achieved. As the element of desire (investing population) is increased while the element of scarcity remains relatively constant, prices paid for real estate invest- ments tend to advance until the supply and demand elements in a specific location are once again balanced, unless alternative lo- cations become more attractive and/or desirable, or unless financ- ing costs are so prohibitive as to completely discourage an attempt on the part of potential investors to balance the supply and demand relationship. Most people are aware of, but frequently forget, the peculiar faculty of real estate and its various segments to become cyclic. This singular capability is perhaps best illustrated by review of relatively recent economic events. In the 29 years since the conclusion of World War II, the United States has experienced four business recessions; namely, during the years of 1948, 1954, 1958 and 1961. The duration of decline varied from 11 months for the 1947-1948 recession, to nine months for the 1960-1961 downturn. In 1967, the United States ' economy experienced a noticeable slowdown that lasted for approx- ..1—_. • • PREFACE (CON'T) r^ imately six months - a condition that has been depicted as a"mini- recession" in the economic terms. • The "mini-slowdown" of 1967 was the result of unusually re- strictive monetary policies and high interest rates which were employed to combat inflation in 1966; however the economic pulse quickly reversed itself as a result of: 1 . Reversal of monetary policies from extremely tight to highly expansionary; and 2. Increased spending on the Vietnam War (less than $6 billion in 1966 to over $20 billion in 1967) . The aforementioned factors fanned the flames of inflation which has run rampant during the past seven to eight years . At no time during the history of this country have prices risen at higher rates than in the period 1964 through 1969. This tremendous surge was attributable to: 1. The aforementioned cost of the Vietnam war. 2. Increased governmental expenditures. • 3. Increased and increasing labor union demands and subsequent wage settlement increases. 4. Increased business spending on plant and equipment. • 5. Erratic retraction and expansion of monetary policies.. 6. General inflationary psychology. As inflation appeared to be a very serious problem for the economy in 1969, Federal monetary and fiscal policies collaborated to fight it. In December, 1968, the Federal Reserve Board reversed its monetary policies in order to restrain total spending and .re- duce the pace of inflation. On December 17, 1968, the discount rate was raised to 5-1/2 per cent, and in early April, 1969, the rate was raised for the second 'time to six per cent, the highest rate recorded since 1929. Thus, within a relatively short period of time, monetary policies shifted from those of an expansive na- ture to those of a restrictive or "tight" nature. The impact of tight monetary policies was extremely pronounced in 1969 and 1970, with money markets and interest rates reaching extraordinarily high levels of influx and intensity. The character- istics of the money markets were highly obscured by the rising • -2- PREFACE (CON'T) psychological demand for funds, the high degree of utilization of volatile and short term money, soaring interest rates, and the drying up of mortgage funds vital to the real estate industry. Thus, the high demand for funds and the declining money stock not only generated the highest level of interest rates in the past 100 years, but the increase in these rates from the prior year developed the sharpest rise in any one year in the history of the economy. The bank prime rate rose five times from 6.25 per cent in December, 1968, to 8.5 per cent in June, 1969, and all long-term interest rates increased dramatically and continuously throughout the year. As the year 1969 came to a close, interest rates of all types were either at or close to their all time highs. The traditional sources of mortgage funds dried up rapidly during the year due to disintermediation in savings institutions and the relocation of funds to other investments which were yield- ing higher rates than most mortgage funds. During 1969, mortgage interest rates reached record levels, exceeding nine per cent in many regions throughout the United States. Generally, rental rates on virtually all real property did not rise commensurate with in- creasing construction costs and effective yields were frequently reduced. The year 1970 was characterized by all the symptoms of a true recession. The real gross national product had its first year-to- year decline since 1958, corporate profits after taxes suffered the largest annual decline both in amount and percentage terms since 1958, the unemployment rate was the highest of the past seven years and both industrial production and capacity utilization de- clined markedly. During 1971 and 1972, positive factors began to gather momen- tum tending toward consideration of economic recovery as follows: 1. Consumer pessimism which prevailed through 1970 tended toward optimism, viz. , pent-up demand for goods and services, increasing installment debt, etc. . -3- PREFACE (CON'T) 2. The expectation of easier money markets and more stable interest rates in the first half of 1972 tended to change attitudes toward business recovery. 3. Pent-up demand fox housing and easing mortgage money markets became significant factors influencing antici- pated overall economic recovery over the balance of 1972. In early 1973 characteristics of the 1969-1970 cycle again became evident and, as of this writing, utilization of volatile and short-term money, relatively high interest rates and general unavailability of mortgage funds generally plagues the national real estate market. Imposition of the various "Phase" programs by the current Administration in an effort to control inflation have generally proved unsuccessful; however the writers are of the opinion a "managed economy" will continue and it is under these "managed" conditions the current and anticipated real estate mar- kets must be considered. Because the real estate market has been, is and will continue to be cyclical (subject to the impetus and restraints previously experienced and discussed) , the following value estimate attempts to consider the means within the cycles typically experienced over an estimated likely term of ownership (frequently presumed to approximate ten years) . Since a typical investor is concerned with not only past and present economic and social factors which have or can affect his investment, the immediately following sections of the report are included to relate those factors, viz. , growth and location, which are likely, in the opinion of the appraisers, to influence the characteristics of properties of the type under appraisement. * * * * * * * * * * * * * * * * * * * * -4- LOCATION AND SITE DESCRIPTION AND ANALYSIS As suggested earlier, because the Weld County Commissioners are conversant with past and present economic, physical and social conditions which may or have influenced property values in Greeley, the appraisers have omitted a discussion of those influences from this report. However, for the purpose of allowing the reader to follow the appraisers reasoning for the value conclusion subsequently adopted the following generalized observations have been noted. * * * * * * * * * * A. General Obviously, the City of Greeley has expanded from a secondary com- mercial and transportation center serving the surrounding agricultural area to a city with an increasingly urban character. However Greeley, together with other communities its size, has experienced growth pains, i.e. , its purchasing power has been disbursed over the entire community as opposed to concentration in the downtown core area thus the appraisers are of the opinion future growth will encourage development of additional outlying shopping locations which will tend to restrict the importance of the downtown core area as a retailing center. As in Boulder and Fort Collins, outlying community and regional shopping centers will afford fewer parking and traffic problems, and provide more comfortable facilities with pleasing esthetics at reduced site acquisition costs to lure shoppers from competitive facilities currently located in the downtown core area. Therefore the appraisers are of the opinion further consideration of the downtown core area as a dynamic retailing center fails to recognize observable trends which further suggests considera- tion of development of the area at an alternative use level. The downtown core of the City of Greeley developed initially in the vicinity of Seventh Street and Ninth Avenue as a matter of exped- iency. This area was the focal point of a number of streets and, more importantly, it had close proximity to the railways. As the city grew and its population became more mobile, it became logical that its 100 per cent retail area would move southerly along Ninth Avenue toward the -5- ( !SUS, 41 r 1' t TJ. I E ' ''b hi f v' s � � 7 i c'7r.. C. • '; ° . ' : ', e T' k' i ?..r • 4; R �' of a, ' a jM � ': i' w. .•" A ra. f ' �;. do • I4 4• V kit a S '$ Ch V b ". ti � 4 , i�f� i �t 14 ,: '' h.1,,u `� � "' {' w a 3,#` ' ra f?t1 i . 6 P �'— ;t 1 x `$ z�oxn tYp /j{r!' wu t YJ�yL ` 1 • 19i L[ . y�1 r R tt' �♦p y i" F # F }n A � ' t V k ♦ iii';, 4 }:, 4 I4 1 .L'4f, w. e Y�, i) Spif ,'t• • yyy 1 k4 4aii 40 i 'IN! ;' sl * j x• 11; r. , S # . tA'4 V M,z. ,y . 1 fits; ra li,. \k. . . 9 i �• • r VOIL Si t • YY��, ti Iii St � Itk At. ... 4, 4, .. e ft 1;Y a '(. fI!' ,Aft Y V I • $' r f„ t . p } i1 L . '40 s,' yY ! . i "� ti•,f, ( • ,4P r ,,,113,I s ' ,Nis 40 �• .' ilif;i k t t F' Y\ Cf. ! 4 e 5 ./.. . . w �� , . r' a•i , f, ( rfr e i y, i r "+ fr. •, ,( • „.or : IJ �`, 01 j.. • r.. LOCATION AND SITE DESCRIPTION AND ANALYSIS (CON'T) University of Northern Colorado, the major economic base of the city. The directional growth of Greeley has proceeded in a westerly and south- erly direction with the southwesterly quadrant area experiencing the most significant growth. This growth has been stimulated by the expan- sion activities of the University of Northern Colorado; the development of single and multiple family housing in the area to accommodate the swelling demands of the University and the community; and by the con- • struction of new shopping center facilities to serve the residents of the southwesterly quadrant. The movement of the 100 per cent retail area was further actuated by the expansion of the First National Bank now occupying a site between Ninth and Tenth Avenues along Eleventh Street, and by the occupancy of a site between Tenth and Eleventh. Avenues along Tenth Street by the United Bank of Greeley. The appraisers are of the opinion the upper or northerly section of the downtown core is in the process of being 'anchored by the present construction of'the . Greeley National Bank structure between Seventh and Eighth Streets along Ninth Avenue. Therefore most recent construction and development of sites in the downtown core has been initiated by institutional-type investors affirming the previous observation that development 'of the area is likely to occur at a use level other than retailing. Demoli- tion of several retailing outlets along Eighth Street to accommodate the aforementioned Greeley National Bank structure further accelerated the southerly movement thus the appraisers are of the opinion the current 100 per cent retail area in the City of Greeley is located in the gen- eral vicinity of Ninth Avenue and Ninth Street. The aerial photograph on the facing page emphasizes the relationship between the institutional anchors of the downtown core area and the subject property. * * * * * * * * * * B. Highest and Best Use The preceeding section of the report has attempted to emphasize the appraisers opinion that the highest and best use of the subject site lies at a use level other than one geared toward retailing. Con- spicuous by its absence has been reference to perhaps the most signifi- cant anchor of the downtown core, viz. , the Weld County Courthouse -6- LOCATION AND SITE DESCRIPTION AND ANALYSIS (CON'T) Complex. The omission of this reference, to this point, has been intentional so that specific emphasis may be accorded its importance. Occupying virtually the entire block, except for the subject site, the Weld County Courthouse Complex forms the hub of activity in the downtown core area including dependency thereon by the aforementioned institutional uses and satellite businesses such as nearby lawyers offices, abstract and title companies, etc. . Therefore the immediate neighborhood has become the financial hub of Weld County. As such therefore, the appraisers are of the opinion, it becomes logical that another institutional-type use in the form of a savings institution, bank, etc. , represents the highest and best use of the subject site not to mention the feasibility of expansion of the primary institutional use in the area, viz. , the Weld County Courthouse Complex. Highest and best use is considered to be the best and most pro- ductive improvement or improvements yielding the highest "net return" to the land during the economic life of the structure or structures. It should be noted that "net return" may take the form of amenities; it cannot always be interpreted strictly in terms of money. Many factors enter into a highest and best use analysis. Some of these include: (1) current zoning in the neighborhood (subsequently discussed) ; (2) environmental influences; (3) rate of present and antic- ipated growth in the area; (4) current or anticipated change in use; etc. . Each of these factors, affecting the subject property in varying degrees, have been considered in the value estimate of the subject prop- erty which follows. Based upon the foregoing, it is the appraisers opinion the high- est and best use of the subject parcel is as previously described, based upon the existing zoning and prevailing economic conditions . Obviously, should substantial changes immediately occur in either of the aforementioned, a reconsideration of the highest and best use esti- mate would be required. * * * * * * * * * * -7- — LEGEND — RI ONE-FAMILY RESIDENTIAL DISTRICT RUE ONE-FAMILY ESTATE DISTRICT R2 .INTERMEDIATE RESIDENTIAL DISTRICT R3 MULTI-FAMILY RESIDENTIAL DISTRICT R4 TRANSITIONAL DISTRICT RSA MOBILE HOME DISTRICT RSB MOBILE HOME DISTRICT BI BUSINESS DISTRICT T B2 SHOPPING CENTER DISTRICT I ,' k CI Y OF eS LOCAL BUSINESS DISTRICT '�_MI MEDIUM MANUFACTURING DISTRICT • , '��M3 HEAVY MANUFACTURING DISTRICT /VJ ., ii GREELEY, COLORADO TMs Is is certify thel this Is the Oflieist / i• • '—Zemina Mae referred to in Section 23-8 r r% ; / y ' 1el Chapter 23 of the Greeley Cede. : 1 '�-'�=J�-- OFF/C/AL PROPERTY MAP Dole: ‘,> • ,. T ,M, MMeyer .. .. - / �� •._.."' --' Y ,• ,City CI.,h' - - ��'JJ a r,L-;_<;i —,7ff[.. � L4 -,J �{�. 'k .1..i BY6REELEY PLANN/NG CWM/SS/Od t--. a '' J >Y , .yyy.t , , trOtLNI. 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I. ., j.;,!, •� 3 i i4:,...,u '�'.y�.: r-....,..., „...,• -4_,, ,,.... r g ��' ...„.._..:4_,,,.. ...,,.. ::,.........7:_U = M f .i.-- .. e'•,�..•si.r• `t A�"Zl�, t. •:,et i !, j. � .. r :'.M�•, •!slit '� • i.r •'- 'M 1 1 M 3 .cacti-t•��•..L"_�.•1 _•-___ • �• 1•t 1 i:..1-i•' . 'rt_„,... e.�a� l:JL_. 41—�-.4 i.iLJ , .. .. '• 7 '•I:• R . .._ r I' I .•... .. . . rfi•'•f• 11 ..11 1r/ : 1 • fi f11 •t .;' •.• '' j . ..�• . • tf.:.rl:'�'i 1.J:.a 'T .»'y '�. Ni ,!'9.1L s .. I _.. . • .. A ' LOCATION AND SITE DESCRIPTION AND ANALYSIS (CON'T) C. Zoning The City of Greeley is divided into the following zoning districts: R-1, One Family Residential District R-2, Intermediate Residential District R-3, Multi-Family Residential District R-4, Transitional District RS-A, Mobile Home District R5-B, Mobile Home District B-1, Business District B-2, Shopping Center District B-3, Local Business District M-1, Medium Manufacturing District M-3, Heavy Manufacturing District Based upon information furnished the appraisers the subject prop- erty is zoned B-1, Business District, the permissive uses and limita- tions of which include the following: B-1, Business District a) Permitted use groups: 1. Multi-family residence 2. Group residence 3. Travel trailer park 4. Community facilities, non-commercial 5. Community facilities, open area 6. Community facilities, semi-public 7. Amusements, commercial 8. Treatment of humans, unrestrained 9. Treatment of humans, restrained 10. Commercial residences 11. Personal service establishments 12. Office and financial uses 13. Retail uses, extensive 14. Off-street parking lots 15. Service establishments, public 16. Repair shops 17. Retail establishments 18. Off-street parking areas and off-street loading areas 19. Fences, walks and hedges ' 20. Fallout shelters - 21. Storage of merchandise in business commercial and industrial districts b) Minimum side yards: 30 feet from anyR zoning district boundary line. c) Minimum rear yard: 30 feet from any R zoning district boundary line. -8- LINCOLN i I , PA R:1 : KNES:2 PEi sTi RsEy rzi WELD COUNTY 6 L IQ OFFICES . e2 r 100' .� SUBJECT PROPERTY t • m a7 a PARKING st . I n SCALE C . 100' LOCATION AND SITE DESCRIPTION AND ANALYSIS (CON'T) d) Off-street parking requirements: 1. All permitted business uses in B-1 : For every one thousand square feet of building floor area; five parking spaces. e) Improvement of off-street parking areas. All required parking areas shall be improved as follows : 1. Where lights are required for night-time parking, they shall not shine directly on adjacent premises . 2. All entrances and exits to parking lots shall be clearly marked with white pavement markings or attractive signs clearly visible from the street. 3. Entrances and exits to parking facilities shall not be located closer than twenty feet to the intersecting property lines at street intersections. 4. All parking areas shall be paved with an asphaltic or concrete surfacing and shall have appropriate bumper guards where needed. f) Size and location of off-street spaces: 1. Each off-street parking space shall contain at least two hundred square feet of parking area and one hundred square feet of driveway. 2. Off-street parking spaces may be located on the same lot as the use for which they are provided or they may be located on one or several separate parcels located adjacent to the use which they serve. 3. Required front and side yards shall not be used for off-street parking. * * * * * * * * * * D. Summary Located at the northeasterly corner of the intersection of Tenth Avenue and Tenth Street the subject site fronts 100 feet along Tenth Street and extends 190 feet in depth along Tenth Avenue and contains therefore a gross area of 19,000 square feet as indicated by a Plot Plan included on the facing page. Its location is characterized by contiguity to the Weld County Courthouse Complex (including parking areas) to the north and east, its proximity to institutional type uses to the south, viz. , Mountain States Telephone and Telegraph Company Building, Majestic Savings and Loan Association, United Bank of Greeley and abstract and title company -9- • SURFACE PHOTOGRAPHS OF STREET SCENES e r, ro III View Southerly Along 10th Avenue from the Intersection of 10th Avenue and 9th Street • View Northerly Along 10th Avenue from the Intersection of 10th Avenue and 10th Street LOCATION AND SITE DESCRIPTION AND ANALYSIS (CON'T) facilities fronting north along Tenth Street, and by its proximity to the Methodist Church facility fronting easterly along Tenth Avenue to the west. Surface photographs of street scenes in the neighborhood are included on the following facing pages to allow the reader to visualize the immediate environs while perusing the report. Tenth Street, a one-way easterly thoroughfare, and Tenth Avenue a two-way north-south thoroughfare are asphalt surfaced and concrete curbs and sidewalks adjoin the subject parcel on its west and south sides. The appraisers have been informed that all city utilities are available to the subject parcel and that no special assessments have been levied against the site. No adverse subsoil condition is apparent or known. According to a Lease and Agreement dated December 11 , 1959 between Karl Edward Bliss, Jr. and The City of Greeley a twenty year lease was negotiated on the subject property providing for monthly rental pay- ments in the amount of $545.40. The lease does not appear to be assignable and although not speci- fied in the Lease Agreement Mr. Barton A. Buss, who attested the docu- ment as City Clerk, informs the appraisers a predetermined option price of $90,000 has been made part of the Agreement. According to Mr. Buss the $90,000 option price applies anytime during the lease period hence also applied at the inception of the Agreement. According to Mr. Buss an unrecorded Special Warranty Deed has been placed in escrow conveying the subject property to The City of Greeley subject to exercisement of the aforementioned option. Summarily, a property is an integral part of its neighborhood and normally cannot be treated as an entity, separate and apart from its environment. The value of real property is not intrinsic, but flows into the property from the environing forces and shares the future with the neighborhood in which it is located. All neighborhoods, depending upon the property types located there- in, enjoy varying economic lives and criteria have been developed for property types variously located. A primary consideration in determin- ing the criteria for achieving optimum value for a proposed improvement in a given neighborhood is the specific purpose or market which the pro- iti FI � 4 � � I `` 22 AWO View Easterly Along 10th Street from the Intersection of 10th Avenue and 10th Street • has d > View Westerly Along 10th Street from the Intersection of 9th Avenue and 10th Street LOCATION AND SITE DESCRIPTION AND ANALYSIS (CON'T) posed improvement will ultimately serve, i. e. , the proposed im- provement must be compatible with or compliment the existing or transitory nature of the environment and it must appeal to the users for which it was, or may be, constructed. Based upon analysis of all information previously discussed, the writers are of the opinion an institutional-type use represents the highest and best use of the subject site and is the use that would most probably be selected by a knowledgable, potential pur- chaser or developer. The appraisers feel obliged to note that current restrictive mortgage fund sources and the tendancy toward rising construction and mortgage money costs will tend to reduce the rate of accelera- tion of land acquisitions until real estate yields become more attractive to provide adequate compensation fox the risk factors involved as a result of the aforementioned conditions. Inasmuch as no prudent investor would purchase vacant land (unless the speculative increment were tremendous) until the economic feasibility of his proposed project were assurred, the appraisers are of the opinion the prices paid for land acquisitions will tend toward stabalization at or near current levels until the incentive to create new facilities becomes more favorable than they appear to be as of the date of this writing. * * * * * * * * * * * * * * * * * * * * * * * * 11- METHODS OF VALUATION Traditional appraisal practice customarily includes two approaches to a final estimate of the value of a vacant parcel of land suitable for commercial development. The first, named the Market Approach, consists of the valuation of the subject property based upon an investigation and analysis of the prices paid for competitive sites in the general vicinity of the sub- ject property. Adjustments between the significant parcels investi- gated and the subject property are made to allow for differences in market conditions due to the passage of a time interval between the date of each sale and the date of the appraisal; for locational desir- ability differences, when applicable; for size, shape and terrain dif- ferences when applicable; etc. , to provide an indication to the value of the subject property based upon comparative indices. Another method employed in the valuation of land suitable for com- mercial development is named The Land Residual Technique. In the application of this technique, greatest consideration is accorded the Principle of Increasing and Decreasing Returns which affirms that the application of larger and larger amounts of the agents in production (labor, coordination, capital and land) will produce greater and greater income (increasing returns) , up to a point (surplus productivity) . Any further increase in the amount of the agents applied will decrease the margin between the cost of the agents and the gross income they will produce resulting in relative decreasing net income returns. Both labor and coordination (cost of utilities, supplies, insuring, taxes, repair, etc.) must be paid before any income can be assigned to capital or land. Capital costs consist of a return of and on the capital in- vested. Therefore, this technique contemplates the hypothetical construc-• tion and operation of a number of improvements to ascertain which, after application of varying amounts of the agents in production, will pro- duce the greatest net return residual to the land. An estimate is made of the potential income for each improvement from which is deducted estimated expenses to arrive at an indication of net income to the property before capital charges. The requirements of capital invested in each hypothetical improvement (represented by -12- METHODS OF VALUATION (CON'T) the estimated cost of construction) are then deducted from the net in- come to the property leaving an amount residual to the land. Capital- ized at the proper rate, a land value estimate is thus developed. Inasmuch as the variables that attach to institutional development are substantial and numerous, the writer is of the opinion a value estimate of the subject parcel by The Land Residual Technique is con- jectural and unsupportable as of the date of this writing hence no value estimate by this approach has been included in this report. Real estate appraisers must usually work under less than ideal conditions, particularly because of time pressures and/or the unavail- ability of data required or desired to complete their analysis. Yet, the best possible judgment must be reached about how much (in dollars) the property interests being appraised are worth under the market con- ditions or decision standards specified in the appraisal problem. This is why different, alternative techniques for approaching a professionally acceptable and reliable valuation conclusion have arisen. There are different perspectives in looking at an appraisal problem depending in part on the identity and point of view of the party whose actual or projected interests are to be valued. Each perspective has different data requirements and calls fox slightly varied techniques to produce a defensible value estimate that is appropriate fo the standards set by the problem. The appraiser, in applying the tools of analysis at his disposal to the problem at hand, seeks to simulate the thought processes of the most probable decision-maker rather than a particular one with speci- fied individual standards. The character of the decision-maker identi- fies the perspective from which the appraiser approaches his problem. He must, therefore, consider the alternative courses of action potentially available to the decision-maker or client to reach a value conclusion consistent with the decision-maker's objectives. The so-called approaches to valuation are merely simulations of these alternative courses of action potentially open to the decision-maker. The appraiser does not exercise judgment about what the decision- maker's objectives or choice criteria ought to be, or what market con- ditions ought to be considered in making the decision. These are given -13- • METHODS OF VALUATION (CON'T) by the conditions of the problem. The appraiser's judgments concern the applicability of alternative tools of analysis to the facts of the case, the data and information needed to apply these tools, and the selection of the analytical approach and data most responsive to the problems at hand. Therefore the appraisers are of the opinion the method of valuation particularly adaptable to the valuation of the subject property is the afore- mentioned Market Approach relating the comparable indices, particularly the appreciatory and locational factors where available and applicable to the 19,000 square foot subject site. This approach gives care- ful consideration to the reactions of buyers and sellers to similar sites and locations in the market- place based upon recognized units of comparison. The ultimate goal is a supportable estimate of the market value of the subject property as of the val- uation date. The appraisers pursuit of this goal follows. * * * * * * * * * * * * * * * * * * * * • • • -14- F --. 0 • CL N 01 M N O CO 0) M N-. W) N Cr) N M M O O N O M O 10 LL O 10 N N I� I� r, Cr) •ti N 10 •D N VD Or l O M .-i O O 0 U • N V) LD M .r N .r MM n01 •--i r- N V v M1D ML` I` •H • F M 44 fH es- 44 to 49494949 es-es-to- 44 es 49494949494949 a C O O O M O O O O O O CO CO 0 O O O O O O O O •ri 4-) OOO nO OMO O 00 00 10 N O C> C7 OOOOO LL O O O 00 O M 10 M O V n N M M M M O O M O N O . . . . n . . . . ., . . . . . . . ., . ., N • .r .-y •H LO L9 O1 10 01 01 r-4 N- 01 O 01 01 OT 00 O L' M co, •ri •-• r•+ .i "9 N N "9 N .-• •7 N M O O O O O O <000 O O O O O 0000t- 0O O C) 000 00 0000 000 0 0 0000N00 O 0 O O M O U) 101000 000 0 0 0000r-- 00 Q r . L1) cd F 10000 N N 10 L- N O MOO M M W 0110 M 00 M O CC M 4 N7' 10 N ", N W10 M O 7' n N M M W 10 7- M 10 -7 99 ,-.IM •-. 444444 4449 44494444 494444 44 44 44444449444449 >-. W •L) W W7' 10 N .-I N N N V 01 •-1 O d' r9 M M M M V 10 W w W W W NN N L� n M LO W N -. N 1D .0 1D W W W W \ \ \X 0 \\ \\ \ \\ \\\ \ \\\\\\\ U 0 7' 7' W 1O .-I W O W 00M7' I-9 N--• N O O •-- M W N O ,-4 N N I. N N ,-, W .y ry .-i M •-1 e-i •-i .-. Z 4-' 7 ""...\\ \\ \\.\\ \\\ \ \ \\\.\\\\ cd W 797M-9 OW N N O --• - 01 M 7' N N 10 10 O N N N 0 0 •-11 •-1 .-1 rM .-1 N '-1 •--• •-1 ry F 0 C 0 0 N Z N .v 10 M O 01 0) CO 10 N M M .-01 • M M M O M H r`1. 0 7 N M 0 ,9 O tD N N M O M n .-. 0101 M N O O N O X M W N 7- N 01001W 01 W CO M M V N N 01 .-i N W Z 0 M M O O) d' M • ' O •- O. O N M •-iN NO 00000101 W O 01 01 0 0 •-- MM MN O O O M 99 %0 '17 00 O .-+ .-• •-• f' M M .-• z V '7 V MM W W W •-- 101010 M 7-7' 7-7-7-71-7' •-i ti •-1 r, ti ••9 rti r-1 ti "9 .•• 99 •-1 .-1 •--1 •--1 •-I •--1 •--1 •-•• t .-I K cd 0 • u. .) 'd 'd •t7 • 'd 0 X --+ 4-' 0 0 0 .-4 ..] •] .] U .0 C ••I •H •ri .-i 7 X V) 0 • 1-' Y N r-i .) 4-) +-J .) .) C W E P• cd N cd • +-) 4-) 0 +J C C C C C Ld 0 C .) P F F F P. F F 3 0 0 0 0 O C) CO Q 0 >. 0 n P O G O O F 0 0 - E E M +r d E 0 0 U P. P. P. 0 A .0 >, 0 C +) +) � E E +) • C F 7 > X 39F-if-ICJ r14-) U d N n n n n M F as 00 d C 0 T7 0 0 0 ••I ••i C 0 0 0 0 0 0 • CD• U z ro v CD 0 0 w C C C C C U 'd n .7 O 4-J .) 0 w Ceti H Hr-i F — In 2ZZ •) P P 0 Cl O LL. < cd F •.+ cd 0 0 T} .7 E 'd 'd 'd a 'd > — C P 7 0 h P. P. 0 A a .-( 0 +) P .-I .i F .+ C Z • O ro O • -C 0 0 0 •--- .-i 0 0 U 0 MOO C70x .a W W W F LYz3 cd 6 2333 II. 3G — in M P 0 +.) FL. >. C • 0. 4-) F E _I • M0 N 1O X O M i >. N V0., .7r1 Cl M .--. N Q 4-' P F M U 10 'd 1D in F 1O .) > +-) 10 Oh N N +-) C 0 O C •I X 3 0 P r-• C F F .) 0 C C 0 >C U .) X -. >N al X OP X 00 o x 77 "9 0 X P. X 0 x •-I .+ 0 0 a 0 C O •ri cd a O •.+ <d O F >. 4-) U 0 p U 0 U 000 P.•,• +-, 'O F CI 0 O F 7 0 w .) 0 cd O n F 0 0.' C .i O w 0 >. 0 •-I F N n •0 0 P --• WI 7 .--1 grip •I x •7 b0 0 .-i 0 •r+ .. o •-i p ,—( 0 C Ld d O d C CO W C •r• Z CO -0 CG OD CL XI OO.) U W W 0 00 3 N U > > C cd U -0 E n n •.+ 0 be tole E O •-+ C 0 O 'd L+7 cd 0 n 0.' N ••I C .) C 0 F a .C cd I~ .) L) •., •i •r+ •-+ 0 F r-+ •.• F •r+ 00 7 d C/I F F 6 al .Cr-+ F 00•-+ O P •-I 0 Y .) 3: E O 'd 0 • O C 4-i —• 7 F F .D O •-• .O in C ♦) F C O • •--• . E • 0 7 •r+ W770 cd 0 N .0 O •r+ 0 F O cd .C 0 O • Q U O X 3 U M W X M 3 aC rl 2• 4 Z .L E-• 30.' J a • m0 •-I N M "I' M 10 N W M 0 .-IN M 7 M 10 L, W M O .-• VALUATION OF THE SUBJECT PROPERTY The purpose of the Market Approach to an indication of the value of the subject property is to compare the subject property with other properties which have sold and which bear similar characteristics. In the development of this approach to value, differences that exist be- tween the subject and sale properties can be adjusted or weighted or considered by making allowances for each significant difference or by making comparisons between the subject and the comparable properties on another acceptable basis . Theoritically, identical properties, i.e. , those identically sized, identically located, etc. , are sought to make the comparative analysis. Practically, because of varying sale dates, varying locations, etc. , such identical facilities are unavail- able for a comparative analysis. However, because the appraisers are of the opinion a typical, prudent purchaser of the subject property would be cognizant of the ranges within which other sites in the im- mediate vicinity have sold, the data on the facing page suggests the significant parameters within which typical investors have operated in the subject neighborhood. A map locating these significant sale prop- erties in relation to the subject property is included on the following facing page. The appraisers feel obliged to note the aforementioned data in- cludes their opinion of significant sales in the immediate vicinity of the subject property. Other sales have occurred, sales of which the appraisers are aware. However because of the conjecture involved in relating the additional sales data to the value of the subject property the additional sales data has not been included and has been considered as superfluous in the valuation of the subject property. Unless the data has direct applicability to the valuation of the subject property additional data is redundant. Thus the appraisers analysis relates to those sale properties considered to have a direct bearing upon the value of the subject property. Sales ten and 11 sold from Sterling Realty and Wellington Invest- ment Company to Robert M. and Frances D. Gilbert with an average sales date of October, 1960 (9/59 and 11/61) at a combined price of $255,000. The combined lot area comprised 29,268 square feet, thus the combined sales developed an overall unit price of approximately $8. 71 per square -15- C) 0 . P. r* u) V CV D vD 01 n r-1 M VD V. N M VD O N N Pa O N VD F. 0 U • V ct 't t` M M u) 01 'KT 01 M • H 4k V) 4-49.49 4}494449494449 43 F C • 0 H •rl F) O O t` 61 0 0 0 0 0 0 O CL O O CO N- O O 0 O O M O U O N M u) N N LO u1 O n ✓1 00 N a W cC •ti 0 O) in N •rt 01 0) 0) V Lc) N 0) 0. V) V) v) 0) O O O 0 0 0 0 0 0 0 O C) U O O O 0 0 0 0 0 0 0 O * r I • 4 0 0 0 0 0 0 0 O O O O Q C3 k a a a a 44 a a a a a a * CU CO C. O M N O O O N u) - u) O cr N r-. M N LO M r-1 N N M * N 49 V9 49. VT 44 49 49.49 44 V9 V9 * LU * a W W I-- N r r` r` .0 r-1 r-1 vD N * \0 CI 0 VD aO Ca VD V .D VD M C` CO 0 \\00 \\\\\\\ \ * C7 0) .•-i N r•1 CO O 1D VD N d' V CO 01 4-) (at r. M N N N F F r-1 r-1 *. CC V) \\\ \\\\\\\ \ (:) A N M M CO r` r` C` .-1 .-. M n * r. r. F.- Z . ic O O C .ri - * 4-) • Z 0. 0 7 r+ 00 00 r` A M M 0) N- * 1'• 0 Z N N O 'Tr u) N O N r-I .--1 U 00 N- 04 N O O M N. n C) * ^� Z C) 01 O N t` C VD to n t` N O fY ONO CO OOO0) VD VD 01 * rti V u) u) M N N V M M Cl) * 0 0 0 0 0 0 0 0 if ZLt. 0 0 0 0 0 0 0 0 0.-. . r. ti .C1 W A 0 0 0 0 0 0 0 0 In N X X In F N F H i+ f. Op C C cd C7 C7 C7 C7 C7 CD C7 C W k ctl a3 a1 I 1 I 1 1 4 4 .r1 a 0 =ICOF xxxxxxx > A . a . . ct m cct ct cct cct ct v) F _ N (n V) •H DO 40 on C1 02 CO W * • C7 O O • • 0 CJ k k 0 cad CI) N 0 cad of0 * 1"'1 0 0 r-1 Z Z Z Z Z z 2 C) v- > > c * r C G a) 4.) 4-4 4-+ 4.-) N N z 0 0 +) N yr u) In In of v) 0 0 * o0 0 9) r, r r. . .-. r. a r* r* z cn * * 0 0 G • O u) 1040 .0 0 0 v) F. n 0 ?G r` p CO 0 0 N v) 0 C U k 00 U k •.N of. •.i i £. v) C) 0 'c3 0 0 N k O 0 > > 0 r-1 > 0 rl )• .-. '" C C7 - O a) a) ,C 0 r4 ctl r-. X C7 00 o o m � noa z •., ca 07 M U O a CI F N 0 0 0 A F+ ry • 0 G k 0 0 0 •ri 0 3 a E 0 o O) .c ct o ,i > W W CU 00 CZUXCC V) . a a) O N M et 0 A h, 00 01 O r) N .e. Z N N N N N N N N M M M VALUATION OF THE SUBJECT PROPERTY (CON'T) foot. The property resold in April, 1970 to Weld County at $340,000 which, in April, 1970, developed an overall unit price of approximately $11.62 per square foot. From October, 1960 to April, 1970 the property appreciated approximately 33 per cent over the 114 month period which suggests an appreciatory influence of approximately .00289 per month or approximately .03468 annually. That portion of the aforementioned sale cornering on Ninth Avenue and Tenth Street sold in September, 1959 for $155,000. Its lot area comprised 21,480 square feet thus an overall unit price of approximately $7.22 per square foot is indicated. As noted earlier an option to purchase the subject property was available at a reported price of $90,000 as of January, 1960 which de- veloped an overall unit price of approximately $4. 74 per square foot as of that date. Thus, inasmuch as the subject property at Tenth Avenue and Tenth Street was optionable at approximately 66 per cent of the unit price developed for the sale property at Ninth Avenue and Tenth Street in September, 1959 it is reasonable, in the appraisers opinion, to suggest a similar ratio based upon the resale of the sale property as of April, 1970. The property at Ninth Avenue and Tenth Street sold at a unit price of $11.62 per square foot in April, 1970. Assuming the aforementioned ratio currently prevails, i.e. , Tenth Avenue unit prices approximate 66 per cent of Ninth Avenue unit prices, a unit price of approximately $7.67 per square foot would be indicated for the subject property as of April, 1970. Application of the monthly appreciatory influence of .00289, previously discussed, to the time lapse from April, 1970 to the date of the value estimate (approximately 46 months) a unit price of $8.67 per square foot is indicated for the subject property as of the valuation date (.00289 x 46 months = 13%; 1. 13 x $7.67 = $8.67) . The initial assemblage of the site currently occupied by the United Bank of Greeley developed a unit price of approximately $3.97 per square foot for the 38,000 square foot site located at the southeast corner , of Eleventh Avenue and Tenth Street. The average sale date for this transaction approximated August, 1963. Subsequent and additional assem- blage at the southwest corner of Tenth Avenue and Tenth Street occurred -16- 3;4 - -" . I .113-5. .i . I. 1.j (' , ` . I 36j , I - X11 8 9 I i * 9 q 9 I , I I I I i .a•.I-L -lid -, • • • .i-1.' _ • • .PI . • - - - izS - - 1 - - 7th STREET --1 X00 ._00' Ni_.. 5 • / • • /! • • 1 o COMMUNITY ~ �� ~ N CENTER PARK ti 1.1 /- 'L 8 .) W lai W \ Q - Q Q 400 — ;' 22 • 8th STREET ' I• C e_f . /3 , / JJ+ I64, , . ' / t ' O p /7 ,4 1 ti PARK h ` •'3� • /8^ 8 + 2/ 2 . � .I - - Bs' • - .i00 .' 2J.• - 9th OSTREET u • I - -I - � •T— ?s - -I i,...., ! I C0'U.RT r7r j ' iITH I `r�oLs iII , I1 . , g5 • • 50 + I , • ' - 1 5;% 50 I _. C-) I I SUBJE T 8 /! : k i !24 EI PR9P TY ,) 24 /7 f I .. r 19 IOth STREET 1i3 � ^ 1 I � a a CD 22 0 eI /14 I I 16 /• rb 7 24 � ! - - I i�= #259L71 So I9 ii /d 8 31 /6 9 I ! zs I I II Ilth STREET . /00 /00 /00 - /00 /00' - i i / Lti -4 / / tit 4 a Ztip raL_Fi a VALUATION OF THE SUBJECT PROPERTY (CON'T) in December, 1966 at approximately $6.32 per square foot for the 19,000 square foot site. Adjusting for the time variances between the assem- blage dates at the .00289 per month appreciatory influence previously discussed, the site at the southeast corner of Eleventh Avenue and Tenth Street develops a unit price of $4.43 per square foot as of Decem- ber, 1966 which approximates 70 per cent of the unit price developed for the site at the southwest corner of Tenth Avenue and Tenth Street emphasizing the observation that as one proceeds westerly from Ninth Avenue along Tenth Street the unit price per square foot decreases. Adjusting the unit price developed for the site at the southwest corner of Tenth Avenue and Tenth Street to the subject site diagonally across the intersection ($6.32 per square foot as of December, 1966) to the date of the value estimate, for the appreciatory influences pre- viously discussed, a unit price of $7.87 per square foot is thereby indicated. Extension of the unit price developed from the option price avail- able for the subject property as of January, 1960 at the appreciatory influence rate developed from the sale then resale of the property at Ninth Avenue and Tenth Street suggests a current unit price approxima- ting $7.06 per square foot for the subject property. Thus a range of from approximately $7.06 to $8.67 per square foot appears to be indicated for the subject property from analysis of the aforementioned sales. The average of these unit prices approximates $7.87 per square foot. The property at the southwest corner of Tenth Avenue and Ninth Street sold in November of 1954 at a unit price approximating $3. 16 per square foot. Applying a .006 per month appreciatory influence (inasmuch as the appraisers are of the opinion a greater appreciatory influence was present in the 1954-1959 period than subsequent to 1959) a unit price approximating $4.30 per square foot is developed as of December, 1959. This relates to the $4.74 per square foot indicated by the option price on the subject property as of December, 1959 which suggests that, as of that date, the subject property was optioned at ten per cent more than Sale nine signifying locational preferance for Tenth Street versus _17_ VALUATION OF THE SUBJECT PROPERTY (CON'T) Ninth Street properties along Tenth Avenue at that time. Extension of the $4.30 per square foot unit price in December, 1959 to the date of the value estimate suggests an adjusted unit price of $6.41 per square foot for the property at the southwest corner of Ninth Street and Tenth Avenue. Application of the location modifier then (Ninth Street to Tenth Street) suggests a unit price of $7.05 per square foot for the subject property. This relates closely to the value indication developed from extension of the unit price developed from the option price on the subject property after consideration of the appreciatory influence ex- tracted from sales 10, 11 and 12 and approximates the lower extremity of the previously discussed range. The property listed for sale at the northwest corner of Eighth Avenue and Tenth Street (#13) is avail- able for purchase at approximately $7.25 per square foot which though, not a consummated transaction, falls within the parameters previously discussed and demonstrates the reduction in values previously discussed as one departs from the Ninth Avenue and Te:., .ocation. Assum- -� ing the relatively modest .00289 appreciatory influence related to the $11.62 per square foot unit price developed from the Ninth Avenue and Tenth Street sale in April, 1970 the indicated current value of this site approximates $13. 13 per square foot. The Eighth Avenue and Tenth Street listing approximates 55 per cent of this unit price and the aver- age of the unit price value indications developed for the subject prop- erty ($7.87 per square foot) approximates 60 per cent of this unit price indicating the opinion that the corners of Tenth Avenue and Tenth Street are more valuable than the corners of Eighth Avenue and Tenth Street. Based upon all of the aforementioned the appraisers are of the opinion the current market value of the subject property is properly expressed within the range of $134,000 (19,000 s.f. @ $7.06 per square foot) and $164,750 (19,000 s.f. @ $8.67 per square foot) . The conclusions and final estimate of value adopted by the ap- praisers are contained in the following section of the report. * * * * * * * * * * * * * * * * * * * * CONCLUSIONS AND FINAL ESTIMATE OF VALUE Unfortunately, the appraisers were not blessed with an abundance of significant data from which an all-conclusive value estimate could be developed for the subject property. Furthermore certain elements of the Lease, Agreement and Option on the subject property create a tinge of uncertainty on the part of the appraisers as to the intents of the parties concerned. Apparently, perhaps for budgetary reasons, the City of Greeley chose not to exercise this option prior to this date. The payment of $6,544.80 annually for parking amenities for the people of Greeley is substantially less than the outlay of $90,000 for acquisition costs from which no revenue would accrue. Conversely were the payments extended to the end of the lease, the City of Greeley would pay approximately $130,896 for the property. Therefore it becomes logical that the City of Greeley would exercise their option to pur- chase the property at a time when the payments made approximate the option price. That property values have appreciated, perhaps at an accelerated rate over those anticipated by the city officials responsible for negiotiating the Lease Agreement and Option, is obvious. Although perhaps not admissible as evidence in. a court of law, the appraisers are of the opinion the acquisition of the property at Ninth Avenue and Tenth Street by the Weld County commissioners has established precedent in the immediate subject neighborhood. Certainly the publicity accorded • the transaction has acquainted many of the populace with what has trans- pired in the area and the appraisers interviews with numerous property owners confirms their acquaintance with this precedent setting action. • Therefore the appraisers feel constrained to accord this transaction substantial weight in the final value estimate developed, for the sub- ject property. The appraisers also feel obliged to opine that reasonable documen- tation has been presented as to the appreciatory influence apparent in the subject neighborhood from 1959 to 1970. They would be less than honest, however, if they suggested that definitive proof is evident prior to 1959 and subsequent to 1970. Definitive proof, in this in- stance, is considered to be the sale, then resale, of the same prop- erty. The appraisers are also of the opinion reasonable documentation has been presented relative to demonstrating the reduction in the unit • -19- CONCLUSIONS AND FINAL ESTIMATE OF VALUE (CON'T) prices from Ninth Avenue and Tenth Street to other corner locations in the subject neighborhood, however they are somewhat chagrined by the lack of information available in the south one-half of Block 66 and the north one-half of Block 76. In spite of the lack of additional, definitive data the appraisers are of the opinion they have utilized the significant information avail- able in developing the $134,000 to $164,750 range for the subject prop- erty indicated in the previous section of the report. The appraisers have attempted to emphasize that the highest and best use of the subject property is for institutional use and that the character of the immediate subject neighborhood relates to other than retail use. As such the proximity of the subject site to the Weld County Courthouse Complex is significant. Based upon the aforementioned ranges, after consideration of all information and analyses contained in this report, it is the appraisers opinion the significant final value estimate of the subject property, as of February 15, 1974 is ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00) * * * * * * * * * * The aforementioned final value estimate develops a unit price of approximately $7.89 per square foot for the subject property. * * * * * * * * * * * * * * * * * * * * -20- CERTIFICATION The undersigned does hereby certify that, except as otherwise noted in this appraisal report: 1. I have personally inspected the property appraised. 2. I have no present or contemplated future interest in the real estate that is the subject of this appraisal report. 3. I have no personal interest or bias with re- spect to the subject matter of this appraisal report or the parties involved. 4. To the best of my knowledge and belief the statements of fact contained in this appraisal report upon which the analyses, opinions and conclusions expressed herein are based, are true and correct, and no pertinent information has knowingly been withheld. 5. This appraisal report sets forth all of the limiting conditions (imposed by the terms of my assignment or by the undersigned) affecting the analyses, opinions and conclusions contained in this report. Neither the employment to make the appraisal nor the compensation received therefor is contingent upon the value reported. 6. This appraisal report has been made inconformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the Society of Real Estate Appraisers and the American Institute of Real Estate Appraisers of the National Association of Real Estate Boards. 7. No one other than the undersigned prepared the analyses, conclusions and opinions concerning real estate that are set forth in this appraisal report. �. ,�� Harold A. Jun 1, h f S.R.E.A. Charles R. Blazek Associate -21- Hello