HomeMy WebLinkAboutSWP273046(11)APPRAISAL GROUP OF
THE NORTHWEST LLP
Complete, Summary Appraisal
Of
Proposed Spawning Channel
Replacement Road Easement
Located within Parcel No. 212305-9068
Renton, WA
For
City of Renton
Planning/Building/Public Works Department
Utility Systems -Fifth Floor
1055 South Grady Way
Renton, WA 98055
s
James B. Price, MAI, SR/WA
Surinder Khela, Associate Appraiser
Appraisal Group of the Northwest LLP
1980 1121h Avenue NE, Suite 270
Bellevue, WA 98004
C-2285
APPRAISAL GROUP OF THE NORTHWEST LLP
Central Park Building
1980 112"h Ave. N.E., Suite 270
Bellevue, WA 98004-2940
.January 31, 2003
Karen McFarland
City of Renton
Planning/Building/Public Works Department
1055 South Grady Way
Renton, Washington 98055
(425)453-9292
(800)453-4408
FAX: (425) 455-9740
E-Mail: agnw@ix.netcom.com
Re: Complete, Summary Appraisal of an easement through Parcel #212305-9068. Cedar
River Spawning Channel Replacement Project.
Dear Ms. McFarland:
In accordance with your request, we have completed a complete, summary appraisal of the fee
simple interest in the land referenced above. The most pertinent data gathered and the techniques
of valuation are set forth in this report. This appraisal is intended to comply with the Uniform
Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal Foundation.
In our opinion, the just compensation for the subject property easement as of January 2, 2003
was:
SIX THOUSAND FIVE HUNDRED DOLLARS
$6,500
This is a complete, summary appraisal report, which is intended to comply with the reporting
requirements set forth under Standards Rule 2-2(c) of the Uniform Standards of Professional
Appraisal Practice for a summary appraisal report. It is subject to the assumptions and limiting
conditions found at the end of this report.
Thank you for the opportunity to be of service. If you have any questions regarding this
appraisal, please feel free to contact us.
Sincerely,
es B. Price, MAI, SR/WA
Certified Real Estate Appraiser, WA
27011-1100229
Surinder Khela
Certified Real Estate Appraiser, WA
27017-1700170
C-2285
Karen McFarland
January 31, 2003
Page ii
CERTIFICATION
We certify that, to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and our personal, impartial, and unbiased professional
analyses, opinions, and conclusions.
3. We have no present or prospective interest in the property that is the subject of this report,
and we have no personal interest with respect to the parties involved.
4. We have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
5. Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
6. Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
7. Our analyses, opinions, and conclusions were developed, and this report has been prepared,
in conformity with the Uniform Standards of Professional Appraisal Practice.
8. We certify that, to the best of my knowledge and belief, the reported analyses, opinions and
conclusions were developed, and this report has been prepared, in conformity with the
requirements of the Code of Professional Ethics and the Standards of Professional Appraisal
practice of the Appraisal Institute.
9. Surinder Khela has made a personal inspection of the property that is the subject of this
report. James Price has not made an inspection of the subject property, but is familiar with
the area in which it is located.
10. There was no significant real estate appraisal assistance provided by anybody else other than
the persons signing this certification.
11. The use of this report is subject to the requirements of the Appraisal Institute regarding
review by its duly authorized representatives.
12. As of the date of this report, James B. Price, MAI, SR/WA, and Surinder Khela have
completed the requirements under the continuing education program of the Appraisal
Institute.
Jan B. Price, MAI, SR/WA Surinder Khela, Associate Appraiser
,I - ?- - t g - d3
Date Date
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Karen McFarland
January 31, 2003
Page iii
SUMMARY OF FACTS AND CONCLUSIONS
Subject Property
The subject property is located between the 1300 Block of SE Royal Hills Drive and the
Cedar River. The proposed easement is 1,830 feet by 20 feet, or 37,000 square feet. The
subject property is the below the Bonneville Power easement and is owned by Shadow
Hawk, LLC.
Lot Size
The County records indicate the site is 52.53 acres.
Zoning
The zoning is R-14, Residential. The minimum gross density per unit is 3,111 square feet
and is located within the city limits of Renton.
Date of Appraisal
January 2, 2003
Highest and Best Use
The highest and best use is a development of fourteen residential dwelling units per acre.
Just Compensation
Sales Comparison Approach $6,500
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Karen McFarland
January 31, 2003
Page iv
TABLE OF CONTENTS
LETTEROF TRANSMITTAL........................................................................................................................................... i
CERTIFICATION.......................................................................................................................................................... 11
SUMMARY OF FACTS AND CONCLUSIONS................................................................................................................. i i i
TABLEOF CONTENTS...:............................................................................................................................................ Iv
INTRODUCTION
LOCATION MAP
PLAT MAP
SUBJECT PHOTOGRAPHS
PROPERTY IDENTIFICATION — DESCRIPTIVE DATA
1
SITEDESCRIPTION...............................................................................................................................................
I
GeneralDescription............................................................................................................................................. I
Locationand Access............................................................................................................................................. I
Shapeand Size.....................................................................................................................................................2
SurroundingProperties.........................................................................................................................................2
Topography..........................................................................................................................................................
2
Soilsand Drainage...............................................................................................................................................2
Wetlandsand Buffer.............................................................................................................................................2
Identification of Possible Flood Hazards.............................................................................................................2
Easements and Restrictions..................................................................................................................................
2
Utilities.................................................................................................................................................................
2
Assessmentsand Taxes........................................................................................................................................3
Zoning..................................................................................................................................................................
3
PURPOSEOF THE APPRAISAL...........................................................................................................................3
INTENDED USE OF REPORT...............................................................................................................................
3
INTERESTVALUED..............................................................................................................................................3
EFFECTIVEDATE OF VALUE.............................................................................................................................3
DATEOF REPORT.................................................................................................................................................4
APPRAISAL DEVELOPMENT AND REPORTING PROCESS...........................................................................4
REAL ESTATE APPRAISED.................................................................................................................................4
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Karen McFarland
January 31, 2003
Page v
HIGHEST AND BEST USE 5
ESTIMATED MARKETING AND EXPOSURE TIME.........................................................................................5
SALESCOMPARISON APPROACH.....................................................................................................................5
LANDVALUE CONCLUSIONS..........................................................................................................................10
DETERMINATION OF JUST COMPENSATION FOR PROPOSED EASEMENT...........................................10
FINALVALUE ESTIMATE.................................................................................................................................10
ADDENDA 11
QUALIFICATIONS OF APPRAISERS
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
PLAT MAP
su i� EIS
T
CEDAR RIVER
s�
e\
A
RD
r � e
MA
[t
.
Y '
_,.emu"'" »
\•\
� _ / '�,.,.`
+y
i
l
e
✓
• �
n01 io k
J
T
♦
wxa
s
K
X
A
F�t
�x
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Subject Site Facing East
Subject Site Looking West
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Subject Site Facing West
Subject Site Facing West
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 1
PROPERTY IDENTIFICATION — DESCRIPTIVE DATA
This is a complete, summary appraisal report that is intended to comply with the reporting
requirements set forth under Standards Rule 2-2(c) of the Uniform Standards of Professional
Appraisal Practice for a summary appraisal report. As such, it does not present discussions of
the data, reasoning and analyses that were used in the appraisal process to develop the
appraisers' opinion of value. Supporting documentation concerning the data, reasoning and
analyses is retained in the appraisers'files. The depth of discussion contained in this report is
specific to the needs of the client and to the intended use stated below. The appraisers are not
responsible for unauthorized use of this report.
CLIENT: Karen McFarland
City of Renton
Planning/Building/Public Works Department
1055 South Grady Way
Renton, Washington 98055
APPRAISERS: James B. Price, MAI, SR/WA
Surinder.Khela, Associate Appraiser
Appraisal Group of the Northwest LLP
1980 112`h Avenue NE, Suite 270
Bellevue, WA 98004
SUBJECT: Residential Property
Proposed Easement located parcel # 212305-9068
Renton, Washington
SITE DESCRIPTION
General Description
The subject property is a 52.53-Acre residential site, which is currently zoned R-14. It
is located in a portion of the NE Quarter of Section 21, Township 23 North, Range 5
East, Willamette Meridian in King County, Washington. This site is generally located
north of Tiffany Park Division 4, north of SE Royal Hills Drive in Renton, Washington.
Location and Access
The main access to the property is by foot from the north end of SE Royal Hills Drive.
The site does not have public water or public sewer available to the site. The site is
located under the Bonneville power lines. Electricity and telephone service is available
in the area.
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 2
Shape and Size
The subject site, according to the County records, is 52.53 acres in size. The site is long
and irregular, approximately 750 feet wide and is located within an existing utility
easement right-of-way. The proposed easement is 20 feet wide and 1,830 feet long,
which is 37,000 square feet in size.
Surrounding Properties
There are residential properties surrounding the subject property. Specifically, there is
an apartment building to the south and single-family residences to the south of the
proposed easement. To the north, are single-family residences.
Topography
The site slopes up gradually on the westerly side, then slopes downward heading in the
northeasterly direction. Then it veers sharply to the east and is level as the site extends
in the easterly direction. The site is level through the Bonneville power line easement.
Soils and Drainage
A soil survey was not provided, but according to the U.S. Soils Conservation Service
(SCS), the onsite soils consist primarily of Alderwood gravelly sandy loam, 6 to 15
percent slopes (AgC). This soil is rolling. The areas are irregular in shape and range
from 10 to 600 acres in size. Alderwood soils are used for timber, pasture, berries, row
crops, and urban development. They are the most extensive soils in the survey area.
(AgC-Soils Survey of King County Area Washington, November 1973).
Wetlands and Buffer
There are no wetlands on the site, and according to the December 1990 King County
Sensitive Areas Folio, no wetlands are inventoried on the site or the proposed easement
area.
Identification of Possible Flood Hazards
The subject property is located in the Federal Emergency Management Agency (FEMA)
Flood Map Panel 53033CO983 F and shown as in Zone X, outside the 500-year flood
area.
Easements and Restrictions
The appraisers did not have access to the title report. However, there are apparent
easements for major powerlines across portions of the property. The proposed easement
is located under the powerline right of way.
Utilities
Public utilities to the site include overhead electricity and telephone service. Sewer and
water are available from the neighboring developments.
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 3
Assessments and Taxes
For the year 2002, the King County Assessor's records show the subject property's
assessed values as follows:
Land Assessed Value $866,500
The taxes for 2002 for this parcel are $9,927.07 per year.
Zoning
The zoning is R-14, Residential with a minimum lot size of 3,111 square feet. The
purpose of the Residential-14 Dwelling Units Per Net Acre Zone (R-14) is to encourage
development of new residential neighborhoods that provide a mix of detached
dwellings, semi -attached dwellings, and attached dwelling structures organized and
designed to combine characteristics of both typical detached single-family and small-
scale multi -family developments. Densities range from eight (8) to fourteen (14) units
per acre with opportunities for bonuses up to eighteen (18) dwelling units per acre.
Structure size is intended to be limited to compatible with other uses in the
neighborhood. Project features are encouraged such as yards for private use, common
open spaces and landscaped areas that enhance a neighborhood and foster a sense of
community. Civic and limited commercial uses may be combined with residential
development when they support the purpose of the designation.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to provide the appraisers' estimate of the market value of the
subject property as of the effective date,
INTENDED USE OF REPORT
It is our understanding that the appraisal will be used for estimating the value of the
proposed easement for the purposes of purchasing a road easement right for the Cedar River
Spawning Channel.
INTEREST VALUED
Road Easement
EFFECTIVE DATE OF VALUE
January 2, 2003
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 4
DATE OF REPORT
January 16, 2003
APPRAISAL DEVELOPMENT AND REPORTING PROCESS
In preparing this appraisal, the appraisers inspected the subject site and gathered information
about the subject's neighborhood and comparable land sales, and analyzed the information
gathered in applying the sales comparison approach.
Only the sales comparison approach was appropriate in valuing the subject property.
To develop the opinion of value, the appraisers performed a complete, summary appraisal, as
defined by the Uniform Standards of Professional Appraisal Practice. Specifically, "Across
The Fence" (ATF) methodology was used to determine the market value of the subject
property.
Across The Fence Method is a land valuation method typically used to estimate the value of
a real estate corridor, which includes pipeline rights of way. The price or value of land
adjacent to the corridor (i.e., "across the fence") is considered for the valuation. Other
considerations include corridor factors and usage factors.
This Summary Appraisal Report sets forth only the appraisers' conclusions. Supporting
documentation is retained in the appraisers' files.
REAL ESTATE APPRAISED
The site is 52.53 acres (2,288,207 square feet) and is located in Renton, Washington.
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 5
HIGHEST AND BEST USE
As Vacant: Since the site is located under powerlines, the highest and best use of the
property is the current use. Due to the proximity of the powerlines, residential development
is not possible on this site.
As Improved: The highest and best use is the current use.
ESTIMATED MARKETINGAND EXPOSURE TIME
Approximately 12 to 18 months.
SALES COMPARISON APPROACH
The most common method for valuing land, and the preferred method when adequate sales
data are available, is the sales comparison approach. To estimate the value of the subject
property by the sales comparison approach, a search was conducted for sales, listings,
or offerings of properties, which are similar and comparable to the subject property. The
unit of comparison is price per acre. Each sale has been discussed in greater detail, and a
land value conclusion is derived based on a price per acre. Since there were limited sales in
Renton, an expanded search was made in the competing areas of Maple Valley, Kent, Auburn
and Covington. Three sales were considered in valuing the subject property. They are listed
in the following table and discussed in detail later in this report.
Sale
Location
Zoning
Lot Size
Sales Price
Date of
Price/Acre
No.
(acres)
Sale
1.
160XX SE 256th Street,
R-6
7.11
$1,260,000
3/16/01
$177,215
Covington (north side)
2.
160XX SE 256th Street,
R-6
8.45
$875,000
9/28/01
$103,550
Covington (south side)
3.
SE 243`a Place & west
R-12
5.00
$540,000
11 / 19/01
$108,000
of 228th Avenue SE,
Maple Valley
Subject Property
R-14
52.53
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 5
r
HIGHEST AND BEST USE
As Vacant: Since the site is located under powerlines, the highest and best use of the
property is the current use. Due to the proximity of the powerlines, residential development
is not possible on this site.
As Improved: The highest and best use is the current use.
ESTIMATED MARKETINGAND EXPOSURE TIME
Approximately 12 to 18 months.
SALES COMPARISON APPROACH
The most common method for valuing land, and the preferred method when adequate sales
data are available, is the sales comparison approach. To estimate the value of the subject
property by the sales comparison approach, a search was conducted for sales, listings, or
offerings of properties, which are similar and comparable to the subject property. The unit of
comparison is price per acre. Each sale has been discussed in greater detail, and a land value
conclusion is derived based on a price per acre. Since there were limited sales in Renton, an
expanded search was made in the competing areas of Maple Valley, Kent, Auburn and
Covington. Three sales were considered in valuing the subject property. They are listed in
the following table and discussed in detail later in this report.
Sale
Location
Zoning
Lot Size
Sales Price
Date of
Price/Acre
No.
(acres)
Sale
1.
160XX SE 2561h Street,
R-6
7.11
$1,260,000
3/16/01
$177,215
Covington (north side)
2.
160XX SE 256" Street,
R-6
8.45
$875,000
9/28/01
$103,550
Covington (south side)
3.
SE 243rd Place & west
R-12
5.00
$540,000
11/19/01
$108,000
of 2281h Avenue SE,
Maple Valley
Subject Property
R-14
52.53
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 6
COMPARABLE LAND SALES MAP
r"po- Shores n
M er Island
� 3R r, i - Hilltop .-
a Hazelwood -
K ti
nes
Ne
NewcastleII' llll
a -
N
Graria RI ge
4fr lg ,POInt,.
r
Issaquah 1
Teasers B
l_
Flal it
Cedar Mountain) �y
'-y Shingle Mill
rke p
Nar Grove 196TH
c„Rd— ,s9 se `? Hobart,.
Iv„rs;
_ -Comparable Land Sale No. 3
Noble - m
?� ss �.. 'andsl�ur _
I Mendlan H , ghts _ � ,,_�_
r CumparablL Land Sale No ' 6 —
,8
Sl mmit
L ` =1
SE ENT KAN
,, .
Land Sale \o. I I�'avensda(e� nt�t r ;
frt
in o,
C Olnpar21171C Imo✓' aoen.,-datre LaAe 1�..
Berry a
- —C rAvN
LA; -No J2
r. r
J
1
Green Rivers
Kummer
c
C-21-18� APPRAISAL GROUP OF THE NORTHWEST LLP
Page 7
Comparable Land Sale No. 1
160XX SE 256« Street (north side of SE 256« Street), Covington
Comparable Land Sale No. 1 a 7.11-acre site which sold on March 16, 2001 for
$1,260,000. It is located in Covington, a rapidly growing community with good
freeway access. It is a rectangular -shaped site. This site would accommodate up to 98
lots and included some pre -engineering prior to the purchase.
Downward adjustments were made for no power lines, access, shape, topography and
entitlements. An upward adjustment was made for market appreciation. After the
adjustments, the indicated sale price of the subject property is $37,000 per acre.
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 8
Comparable Land Sale No. 2
160XX SE 2561h Street (south side of SE 256th Street), Covington
Comparable Sales No. 2 is an 8.45-acre site, which sold for $875,000. It is an irregular -
shaped site with frontage on SE 2561h Street. This property is across the street from
Comparable Sale No. 1 and has good access to SE 2561h Street. There are transmission
lines traversing the property, which is similar to the subject property.
Downward adjustments were made for access, shape, and topography. In addition, a
downward adjustment was made for development ability. After the adjustments, the
indicated sale price of the subject property is $38,000 per acre.
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 9
Comparable Land Sale No. 3
SE 243`d Place, West of 228th Avenue SE, Maple Valley
This sale is an irregularly shaped site containing 218,000 square feet of area. The
northeast border is SE 243`d Place, which is a sloping road down to the northwest, with
an additional slope down from the development to the northeast. The site is covered
with trees and natural vegetation. Even with the R-12 zoning, the site is expected to
yield only 35 single-family residential sites. This parcel will be developed with the
adjoining parcel, which was purchased in June 1999. The buyer now has preliminary
approval, which will include putting in a public park, as well as a yield of only 35 lots.
Downward adjustments were made for lack of power lines, access, shape, and
topography. In addition, a downward adjustment was made for development ability and
an upward adjustment for appreciation. After the adjustments, the indicated sale price
of the subject property is $39,000 per acre.
�_--------_'t�
a.N��� ♦� \ ,Lu'iir �°'C r.`,+., i. ��1 _
Wl
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 10
LAND VALUE CONCLUSIONS
After adjustments, comparable land sale value for the subject property is $37,000 to $39,000
per acre. The indicated value of the subject site is $38,000 per acre. All the comparable
sales are weighed equally and the following land value has been concluded:
52.53 acres @ $38,000/acre = $1,996,140
DETERMINATION OF JUST COMPENSATION FOR PROPOSED EASEMENT
The proposed Cedar River Spawning Channel Replacement easement will be 37,000 square
feet or an area 20 feet wide and 1,830 feet in length. The easement will be along the existing
Bonneville power line easement. The purpose of this easement is to create a spawning
channel for aquatic life such as salmon, trout, etc.
The easement will not adversely affect the use of this site or property immediately adjacent
to the proposed easement area. Since the site is not suitable for residential development, the
proposed easement will not affect the development potential of the site.
Just compensation is calculated at 20% of the market value area within the easement
corridor. Therefore;
0.85 Acres (37,000 square feet) @ $38,000/acre X 20% = $6,460 rounded to $6,500
FINAL VALUE ESTIMATE
It is concluded that the evidence best supports a market value estimate for the subject
property as of January 2, 2003 of -
Six THOUSAND FIVE HUNDRED DOLLARS
$6,500
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Page 11
ADDENDA
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
ASSUMPTIONS
This appraisal is contingent upon the following assumptions:
1. The legal description is correct, and title to the property is good and marketable.
2. The title to the property is free and clear of liens or encumbrances.
3. The property has responsible owner(s) and competent property manager(s).
4. The information furnished by others is reliable, but no warranty is given for its accuracy.
5. All engineering is correct.
6. There are no hidden, unapparent conditions of the property, subsoil, or structures that
render it more or less valuable. This includes any toxic waste or asbestos insulation that
may be present. We take no responsibility for such conditions or for arranging for
engineering studies that may be required to discover them.
7. There is full compliance with all applicable federal, state, and local environmental
regulations and laws.
8. The property conforms to all applicable zoning and use regulations and restrictions.
_ 9. All required licenses, certificates of occupancy, consents, and other legislative or
administrative authority from any local, state, or national government or private entity
or organization have been or can be obtained or renewed for any use on which the value
estimate contained in this report is based.
10. The use of the land and improvements is within the boundaries or property lines of the
property described and there is no encroachment or trespass.
11. The presence of such substances as asbestos, urea -formaldehyde foam insulation, and
other potentially hazardous materials may affect the value of the property. The value is
estimated under the assumption that there is no such material on or in the property that
would cause a loss in value. No responsibility is assumed for such conditions or for any
expertise or engineering knowledge required to discover them. The client is urged to
retain an expert in this field, if desired.
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
LIMITING CONDITIONS
This appraisal report is subject to the following conditions:
1. Any allocation of the total value estimated in this report between the land and the
improvements applies only under the stated program of utilization. The separate values
allocated to the land and buildings must not be used in conjunction with any other
appraisal and are invalid if so used. Any value estimates provided in the report apply to
the entire property, and any proration or division of the total into fractional interests will
invalidate the value estimate, unless the proration or division of interests has been set
forth in the report.
2. Possession of this report, or a copy thereof, does not carry with it the right of
publication.
3. No appraiser, by reason of this appraisal, is required to give further consultation or
testimony or to be in attendance in court with reference to the property in question
unless prior arrangements have been made.
4. Neither all nor any part of the contents of this report (especially any conclusions as to
value, the identity of any appraiser, or the firm with which the appraiser is connected)
shall be disseminated to the public through advertising, public relations, news, sales, or
other media without the prior written consent and approval of the appraiser.
5. Appraisal Group of the Northwest and its associate appraisers and employees assume
liability only to the client and only up to the amount of the fee actually received for this
assignment.
6. Appraisal Group of the Northwest and its associate appraisers and employees are not
responsible for any costs incurred to discover or correct any deficiency in the property.
If a lawsuit is instigated by a lender, partner, part owner in any form of ownership,
tenant, or any other party wherein this report is used in evidence; in the disposition of
any and all awards, settlements, or cost, regardless of outcome, Appraisal Group of the
Northwest and its associate appraisers and employees will be held completely harmless.
7. No legal description or survey was furnished, so the county tax records were used to
ascertain the physical dimensions and area of the property. Should a survey prove this
information to be inaccurate, it may be necessary for this appraisal to be adjusted.
8. The forecasts, projections, or operating estimates contained herein are based on current
market conditions, anticipated short-term supply -and -demand factors, and a continued
stable economy. These forecasts are, therefore, subject to changes with future
conditions.
9. This is a complete, hypothetical summary appraisal report that is intended to comply
with the reporting requirements set forth under Standards Rule 2-2(c) of the Uniform
Standards of Professional Appraisal Practice for a summary appraisal report. As such, it
does not include discussions of the data, reasoning and analyses that were used in the
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
appraisal process to develop the appraisers' opinion of value. Supporting documentation
concerning the data, reasoning and analyses is retained in the appraiser's file. The depth
of discussion contained in this report is specific to the needs of the client and to the
intended use stated below. The appraisers are not responsible for unauthorized use of
this report.
10. In accordance with prior agreement between the client and the appraisers, this report is
the result of a complete, summary appraisal process in that certain allowable departures
from specific guidelines of the Uniform Standards of Professional Appraisal Practice
were invoked. The intended user of this report is warned that the reliability of the value
conclusion provided may be impacted to the degree there is departure from specific
guidelines of USPAP.
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
QUALIFICATIONS OF APPRAISER
JAMES B. PRICE, MAI, SR/WA
EDUCATION
Bachelor of Science in Finance, Real Estate Emphasis: Northern Illinois University,
University of Illinois; 1966.
Appraisal Institute courses include Capitalization Theory, Residential Valuation, Easement
Valuation, and Standards of Professional Practice.
Seminars and Classes include Real Estate Feasibility, Business Valuation, Valuation of
Easements and Litigation Skills, Appraising for Pension Funds, and Appraisal of Partial
Acquisitions.
PROFESSIONAL MEMBERSHIPS
Appraisal Institute
Membership: Designated Member of the Appraisal Institute since 1979
Formerly: President, Director, and Vice President, Seattle Chapter and Alaska
Chapter
International Right of Way Association
Designation: SR/WA (Senior Right of Way Agent)
Position: International Right of Way Association Valuation Committee, Chair
Formerly: International Right of Way Association Director, President, and Vice
President; Seattle, Washington and Fairbanks, Alaska Chapters
EXPERIENCE
Currently: General Partner, APPRAISAL GROUP OF THE NORTHWEST LLP
Developer of subdivisions, office building, and residences
Owner of office buildings and apartments
Formerly: Proprietor, APPRAISAL GROUP OF THE NORTHWEST
Appraiser, Schueler, McKown & Keenan
Partner, Price & Associates, Alaska
Senior Appraiser, First State Bank of Oregon
Appraiser, Pacific First Federal Savings Bank
Appraiser, U.S. Small Business Administration
Appraiser, Washington State Dept. of Transportation
Qualified as an expert witness in Superior Court, Federal Court Master's Hearings, and
Federal Bankruptcy Court. Served as an arbitrator in property valuation and lease
renewals.
Fee reviewer; Washington Dept. of Transportation, major banks, and governmental clients.
Qualified as a Master; held Master's Hearings in Alaska.
Currently certified under the continuing education program of the Appraisal Institute.
Currently certified in Washington State as a General Appraiser (927011-1100229)
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Qualifications of JAMEs B. PRICE, MAI, SR/WA Page 2
CLIENTS SERVED
Benson & McLaughlin, Accountants
Bullivant, Houser, Bailey, Pendergrass &
Hoffman; Robert Riede, and Dino
Vasquez Attorneys
Bureau of Indian Affairs
Bureau of Land Management
Charter Bank
Chevron Products Company
Church of God, Western Washington
City of Auburn
City of Bellevue
City of Issaquah
City of Newcastle
City of Redmond
City of SeaTac
City of Seattle
City of Tacoma
Coldwell Banker Relocation
Columbia Bank
Costco
El Centro De La Raza; Felicia Gonzales
Enumclaw Public Schools;
Will Samuelson
First Mutual Bank
Huling Brothers; Steve Huling
Interwest Bank
Johns Monroe Mitsunaga, Attorneys;
Michael Monroe, Darrell Mitsunaga
Kent Schools
KeyBank of Washington
Keating Bucklin & McCormack, Attorneys
Lee Kraft, Attorney, Bellevue
Korea Exchange Bank
John Lynch, CPA, Bellevue
Ogden Murphy Wallace, Attorneys
O. R. Colan Associates, Inc. (Acquisition
Specialists)
O'Rourke, John, Attorney
Pacific Union Bank
Pharos Corporation (R/W Company)
Port of Friday Harbor
Port of Orcas
Port of Seattle
Puget Sound Energy
Reid Middleton, Engineers
Seattle City Light
Seattle School District
Sound Transit
Tacoma Utilities
Union Bank of California
United Savings & Loan Bank
U.S. Bank
U.S. Fidelity & Guarantee
U.S. Postal Service
Universal Field Services, Mitch Legal
Washington Dept. of Transportation -
Approved Appraiser & Reviewer
Washington State Dept. of Natural
Resources
Washington State Parks & Recreation
Commission
Waste Management
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
QUALIFICATIONS OF APPRAISER
SURINDER-PAL KHELA
EDUCATION
California State University, Bakersfield, California: Graduate studies in marketing and
research (1985-1986)
University of Washington, Seattle, Washington: Bachelor of Arts, Major in Society and
Justice, Minor in Business Administration (1984)
Appraisal Institute:
Highest & Best Use, Course 520, May 1-6, 2000
Appraisal of Nonconforming Uses, March 15, 2000
FHA & The Appraisal Process, September 15, 1999
Advanced Residential Form & Narrative Report, June 13-19, 1999
Appraisal in the 21S` Century, a Fannie Mae Update, June 9, 1998
Litigation Valuation Overview, Course SE700, March 5-6, 1998
The High -Tech Appraisal Office, November 18, 1997
Advanced Capitalization, May 5-10, 1997
Standards of Professional Practice, Parts A & B, April 9-12, 1997
Other Appraisal -Related Courses:
Real Estate Law, Mykut Real Estate School, February 6-13, 1996
Land Valuation, Depreciation, & Cost Approach, Lee & Grant Co., Jan. 27-28, 1996
Urban Planning and Land Development, Bellevue Community College, Winter 1995
Manufactured Housing Appraisal, Lincoln Graduate Center, May 21-22, 1994
Income Capitalization, Washington Association of Realtors, March 10-11, 1994
Real Estate Appraisal, Rockwell Institute, October 22-26, 1993
Appraisal Standards & Practices, Rockwell Institute, October 9-10, 1993
PROFESSIONAL MEMBERSHIPS, LICENSES, AND CERTIFICATION
International Right of Way Association -Member
Appraisal Institute -Associate member
Scholarship Committee, 2000
Residential Associate Member Liaison, 1999
Associate Activities Committee, 1999
FHA Qualified Appraiser, August, 1997
Oregon Residential Appraisal Certification, November, 1997
Washington Residential Appraisal Certification, May, 1996
Real Estate Broker's License, November, 1995
Real Estate Salesperson's License, September, 1986
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP
Qualifications of SURINDER KHELA Page 2
EXPERIENCE
Currently: Appraiser, Professional Real Estate Services, Inc., Kent, Washington
Formerly: Appraiser, Washington Valuation & Consulting Services, Kent, Washington
Chief Appraiser/Operations Manager, Cramer Property Services/Primis, Seattle,
Washington (May, 1993 to February, 2000)
Chief Appraiser, Cramer Property Services/Primis, Seattle, Washington (September,
1997 to December, 1997)
Assistant Chief Appraiser, Cramer Property Services/Primis, Seattle, Washington (June,
1997 to July, 1997)
Independent Real Estate Appraiser (May, 1993 to June, 1997)
Associate Broker, Around the Clock, Inc., Real Estate Sales (May, 1994 to Present)
Assistant Manager, Emerald Hills Apartments, Issaquah, Washington (December, 1992
to June, 1993)
Property Manager, Around the Clock, Inc., Property Management, Kent, Washington
(May, 1991 to September, 1992)
Buyer Coordinator, Draeger Land and Homes, Kent, Washington
Realtor, Richard James Realtors, Kent, Washington
Appraised single-family and commercial properties primarily in King, Snohomish, and
Pierce Counties, but also throughout Western and Central Washington, including the San
Juan Islands. Specialized in appraisal of homes over $1 million and waterfront properties,
studies of feasibility and highest and best use, and consultation for attorneys.
C-2285 APPRAISAL GROUP OF THE NORTHWEST LLP