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HomeMy WebLinkAboutRenton - VAC-95-001 appraisalSelf -Contained Appraisal Report - Complete Appraisal of Lake Avenue S. Vacation Location Lake Avenue S between S. 2nd & S. 3rd Streets Renton, Washington Date of Valuation December 20, 1995 Appraised by Bruce C. Allen, MAI, CRE John M. Hopkins, Associate Bruce C. Allen & Associates, 15329MH- January 5, 1996 Complete/Self-Contained 0 u BRUCE C. ALLEN & ASSOCIATES, INC. Il Real Estate Appraisers and Consultants Y Bruce C. Allen, MAI, CRE, President Denise M. Lane, MAI UJanuary 5, 1995 u LMr. Thomas G. Boyns Property Services Supervisor City of Renton 200 Mill Avenue S. Renton, Washington 98055 LRE: APPRAISAL OF LAKE AVENUE S. VACATION LOCATED AT LAKE AVENUE S. BETWEEN S. 2ND & S. 3RD STREETS IN RENTON, WASHINGTON L(File #15329) Dear Mr. Boyns: L In response to your request, we have completed an appraisal of the Lake Avenue S. Vacation between S. 2nd & S. 3rd Streets in Renton, Washington. The purpose of l the report is to estimate the market value of the fee simple interest in the subject L, property for the purpose of vacating the street to the owners of abutting parcels. In accordance with State law, our valuation assumes the subject is an economic unit, which effectively disregards the disadvantage of its highly irregular shape. However, our analysis takes into account the easements the City will retain to maintain existing underground utility lines for sanitary sewer, water, and storm drainage. We value the subject by first comparing it with six sales of similar commercial parcels, under the assumption that the subject would not be encumbered by utility line easements. The overall lack of sale comparables forced us to go back in time as far as 1990 to find comparables. Nevertheless, because one of the comparables involved an adjacent parcel, and because the sales logically bracket this sale price, we L believe the comparable data adequately portray a range in which subject value falls. We conclude an unencumbered subject would have a value of $11.25 per square foot. We believe a discount for the easement lines of 20% is significant enough to L. recognize the prohibition on structures that the easements would cause. This brings our fee simple value estimate recognizing the easements to $9.00 per square foot. This appraisal was made in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP) and is intended to conform with FIRREA regulations and with the appraisal standards of the entity requesting this appraisal. Complete u 401 KirklandParkPlace, Suite 221 Kirkland, Washington98033-6200 (206) 822-4999 Fax(206) 827-5722 TDD For Speech- and Hearing -Impaired: 1-800-833-6388 16329MH-January 6, ]996 Complete/Set(-Contained V Y descriptions and photographs of properties used for comparison are included in this report, as well as all of our analyses and conclusions. The value estimates herein are given subject to the specific assumptions and limiting conditions stated immediately following this transmittal letter. Based on our investigation and analysis of all relevant data, it is our opinion the market value of the fee simple interest in the subject property, as of December 20, I 1995, is: �+ THREE HUNDRED TWENTY THOUSAND DOLLARS ($320,000) L L If you have further questions not answered in the accompanying report, please do not hesitate to call. LSincerely, BRUCE C. ALLEN & SOCIATES, INC. L Bruce C. Allen, MAI, CRE L John M. Hopkins, Asso iate L. L— u u ip Enclosures Bruce C. Allen & Associates, Inc. 15329MH -January 5, 1996 2 Complete/Self-Contained L LASSUMPTIONS AND LIMITING CONDITIONS LThis appraisal report was made after personal inspection of the property identified in this report. The conclusions in the report have been arrived at and are predicated upon the following conditions: LJ (a) No responsibility is assumed for matters which are legal in nature, nor is any opinion L rendered on title of land appraised. Title to the property is assumed to be good and marketable unless otherwise stated in this report. (b) Unless otherwise noted, the property has been appraised as though free and clear of all liens, encumbrances, encroachments, and trespasses. L(c) All maps, areas, and other data furnished your appraiser have been assumed to be correct. However, no warranty is given for its accuracy. If any error or omissions are found to exist, o the appraiser reserves the right to modify the conclusions. Any plot plans and illustrative L material in this report are included only to assist the reader in visualizing the property. (d) It is assumed there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report. (e) It is assumed all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report. L (f) The appraiser has no interest, present or contemplated, in the subject properties or parties involved. L (g) Neither the employment to make the appraisal nor the compensation is contingent upon the amount of the valuation report. (h) To the best of the appraiser's knowledge and belief, all statements and information in this report are true and correct, and no important facts have been withheld or overlooked. L(i) Possession of this report, a copy, or any part thereof, does not carry with it the right of publication, nor shall the report or any part thereof be conveyed to the public through advertising, public relations, news, sales, or other media valuation conclusions, identity of the appraiser, or firm, and any reference made to the Appraisal Institute or any professional designation. (j) There shall be no obligation required to give testimony or attendance in court by reason of this L, appraisal, with reference to the property in question, unless satisfactory arrangements are made in advance. L (k) This appraisal has been made in accordance with rules of professional ethics of the Appraisal Institute. (1) No one other than the appraiser prepared the analysis, conclusions, and opinions concerning real estate that are set forth in the appraisal report. V (m) Statements or conclusion offered by the appraiser are based solely upon visual examination of exposed areas of the property. Areas of the structure and/or property which are not exposed to the naked eye cannot be inspected; and no conclusions, representations, or statements V offered by the appraiser are intended to relate to areas not exposed to view. No obligation is assumed to discover hidden defects. LA u Bruce C. Allen & Associates, Inc. u 16329MH -January 5, 1996 i Complete/Self-Contained L L L u L L L L L Lj (n) Unless otherwise stated in this report, the existence of hazardous waste material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on 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 any 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. (o) Statements, representations, or conclusions offered by the appraiser do not constitute an express or implied warranty of any kind. (p) Neither appraiser nor Bruce C. Allen & Associates, Inc. shall be liable for any direct, special, incidental, or consequential damages whatever, whether arising in tort, negligence, or contract, nor for any loss, claim, expense, or damage caused by or arising out of its inspection of a property and/or structure. (q) The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. 15329MH - January 5, 1996 C. Allen & Associates, Inc. Comp lete/Sel f•Contained TABLE OF CONTENTS Page Letter of Transmittal Assumptions and Limiting Conditions Table of Contents Executive Summary Subject Property Photographs Part I - Introduction Identification of the Subject Property 1 Legal Description 1 History and Ownership 1 Date of Inspection/Valuation 1 Purpose of the Appraisal 1 Property Rights Appraised 2 Scope of the Appraisal 2 Special Assumptions/Hazardous Waste 3 Personal Property 3 Marketing Period 3 Area Description 3 Neighborhood Description 4 Immediate Neighborhood 8 Part II - Factual Data Description of the Subject Property 11 Site 11 Access 11 Soils 11 Utilities 11 Zoning 11 Assessed Value and Real Estate Taxes 12 Description of Improvements 13 Part III - Highest and Best Use As If Vacant 14 As Improved 14 Part IV - Analyses and Conclusions to Value Valuation 15 Sales Comparison Approach to Value 15 Certification of Value 20 Part V - Addenda Letter of Engagement Comparable Sales Analysis Sheets Qualifications of Appraisers C. Allen & Associates, Inc. 15329MH - January 5, 1996 1 Complete/Self-Contained Project: Vacation of Lake Avenue S. between S. 2nd & S. 3rd Streets, a dedicated street without improvements except for asphalt parking used by adjoining property owners. Location: Lake Avenue S. between S. 2nd & S. 3rd Streets in Renton, Washington Site Size: 35,804.8 square feet Utilities: All available Zoning: CA, Arterial Commercial, City of Renton Highest and Best Use: Retail Land Value: $9.00/sf Final Value Estimate: $320,000 Date of Valuation: December 20, 1995 Appraisers: Bruce C. Allen, MAI, CRE John M. Hopkins, Associate File: 15329 C. Allen & Associates, Inc. 15329MH - January 5, 1996 Complete/Self-Contained paumTuoj jjaS1a;atdwoD •auI `sa7b7o0ssy W nappy •j 966T `9 fUvnuvp - HN6ZC9T •goafgns aqq 3o pua uaaiq�aou aqj pue 100a1S pug •S paem04 ugnos 2ugoot `anuany axe? suduaoloud Spadoad laafgns pauto7uoj ftaS/ajajdwoj 11 966T '9 tianuvf - HN6ZC.9T •Duj `Sa7AiZ)ossy2,0 uappy'j 007Z.lg pau7v7uoj J7ag/ajajdwo3 M 966T `S 1',nnuaP' HW6ZE9T •au7 `saybzoossyv uajjv'a -ails Sumo eS aip mou 'apis Isea sqt uioa3 pamare 'joafgns aqp 3o uopiod aaquao •ajts Xema3eg aqp 3o iauaoo Isomgpaou aqq pue 'Iaoaed s,xueg ageisaaJul Isai,3 3o pue gpaou eqj 'joafgns aqj 3o iauaoo iseaglaou aqp paemol g4aou 9u31001I suduaojoud Spadoid jaafgnS pauraauo3flag/a;a7dwoD Al 966T`S f-n' f-HN6ZE9T •ouI `sapnossv V nappy '0 aanj •jaaajS pa£ -S 3o apis ulnos aup uioa3 pamaiA Xlaadoad goafgns auq 3o pua ulnoS i F 1�r 'r 1 r� D C r o i if w4 9A sgduaoloud .9pado.zd 1aafgnS PART I - INTRODUCTION Identification of the Subject Property The subject consists of the undeveloped section of Lake Avenue between 2nd and 3rd Avenues S., just east of Rainier Avenue S. in Renton. The street is unimproved except for some paved area close to 3rd Avenue S. The City of Renton intends to vacate this segment of Lake Avenue to adjoining property owners. Legal Description A complete metes and bounds description of the subject is reproduced as an addendum to this report. History and Ownership The City of Renton has owned the subject property for at least the past 5 years. No sale transactions involving the subject have occurred during that time. Date of InsgectionNaluation The subject property was inspected on December 19, 1995, and subsequent dates. The effective date of this appraisal is December 20, 1995. Purpose of the Appraisal The purpose of this appraisal is to estimate the market value of the fee simple interest in the subject property as of December 20, 1995. Market value is defined as:' The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated. 2. both parties are well-informed or well-advised and acting in what they consider their best interests, 1Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42 Definitions [f]. Bruce C. Allen & Associates, Inc. 15329MH - January 5, 1996 1 Complete/Self-Contained u 3. a reasonable time is allowed for exposure in the open market,• 4. payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by ,1 special or creative financing or sales concessions granted by anyone associated tl with the sale. Iu Property Rights Appraised L This appraisal sets forth the estimated value of the fee simple interest. Fee simple l interest is defined as:2 IThe maximum possible estate one can possess in real property. A fee simple estate is the least limited interest and the most complete and absolute ownership in land, it is of indefinite duration, freely transferrable, and inheritable. Fee simple title is sometimes I referred to as 'the fee." All other estates may be created from it, which means that all + other estates must be something less than fee simple (such as life estates, leaseholds, etc.). Any limitations that exist on the control and use of the land held in fee do not result from f the nature of the estate itself but are the result of the limitations of Eminent Domain, I L escheat, police power, and taxation. Scope of the Appraisal As vacant land, the subject is appropriately valued using only the Sales Comparison Approach. Consequently, data was collected on comparable sales of land. In appraising the subject property, the following was done: Researched Washington Real Estate Register and COMPS, Inc.; Researched Bruce C. Allen & Associate's existing data bank; �- — Confirmed all land sales with buyers, selling agents, and/or public records; Inspected all comparable sales; and Reviewed all documents as cited throughout this report. L N L" Thomas G. Boyns, Property Services Supervisor for the City of Renton, provided information on the subject property. 2From The Appraisal of Real Estate, Tenth Edition, 1992, Appraisal Institute, page 122. Bruce C. Allen & Associates, Inc. W 15329MH - January 5,1996 2 Complete/Sel f-Contained •au7 `sajvzpossv V nappy •j aandg dieyQ poouaoglgBjaN I Neighborhood Description The subject is located at the western edge of the central business district (CBD) of the City of Renton. Renton is King County's fourth largest city and is well served by a major airport, an interstate freeway system, and several major state highways. When Renton was first incorporated in 1901, the city was only 1 square mile in size. The expansion was achieved mostly through annexations of adjacent and nearby areas. During 1949 to 1969, 10.8 square miles were added to the city -- 67% of its present territory. This growth was fueled by people migrating to the area to work in the booming wartime industries in Renton. PACCAR. and Boeing were the primary employers as they manufactured Sherman tanks and war planes. In the 1940s, population exploded from 4,488 to 16,039 persons. In the decades following the 1949-1969 period, expansion has occurred slowly, and the city has gained only about 1.9 square miles to arrive at the current size of 16.1 square miles. The 1994 population of Renton is 43,970, making it the fourth largest city in King County, behind Seattle, Bellevue, and Federal Way, respectively. An additional 60,000 people live in the unincorporated area surrounding the city. Between 1980 and 1992 the City of Renton annexed 840.9 acres of land, adding 509 people and 207 houses to its population.3 From 1990 to 1994 Renton's population changed from 41,688 to 43,970, for an annual average change of 1.4%. This is similar to other areas of King County. Transportation The city of Renton is situated at the south end of Lake Washington and provides access around the lake through its regional transportation network. One interstate highway and three state highways run through the city. Interstate 5 (I-5) -- the major north/south highway in the state which gives access to Seattle, Canada, and Portland -- lies approximately 2 miles west of downtown Renton. Interstate 405 (I-405) branches off from I-5 and runs in an east/west direction for 2 miles before turning in a north/south direction along the east side of 3Source: Washington State Office of Financial Management. Bruce C. Allen & Associates, Inc. 15329MH - January 5, 1996 4 Complete/Self-Contained Lake Washington through the cities of Renton, Bellevue, Kirkland, and Bothell, where it subsequently rejoins I-5. State Route 167 (SR-167) runs south from I-405 through the cities of Renton, Kent, Auburn, and Tacoma. SR-167 is also known as the East Valley Freeway as it is located along the eastern edge of the Green River Valley. The subject property thus has excellent access to major transportation routes. I-405 is just south of the subject with an interchange at Rainier Avenue S. Because of Renton's location in the region and its own industrial, commercial, and other types of employment centers, freeways and arterials in the city get heavily congested during peak hours. In an effort to improve traffic flow in the city and to upgrade the street capacity in general, the city maintains a multiple -year transportation improvement program which includes constructing new streets as well as rehabilitating existing ones. In 1988, the City of Renton initiated a per capita business fee, which charged businesses based on the number of employees. This fee has been used to fund street projects that are high -priority for the business community. I-405 has been one of the major sources of traffic congestion in Renton. Major construction for widening I-405 to six lanes, including one lane in each direction for the exclusive use of carpools, buses, and motorcycles, was completed in the vicinity of the subject, including construction of on- and off -ramps. Widening of I-405 has relieved some of the local traffic congestion within the city as well. General transportation facilities to the city of Renton include rail service provided by Burlington Northern and truck service provided by all major truck lines operating in the Puget Sound area. Seattle -Tacoma International Airport and Boeing Field International are located approximately 6 miles from Renton, providing complete air service. In addition to these regional airports, the city of Renton has two adjacent airports -- one for general aviation, and the other, the 'Will Rogers -Wiley Post Seaplane Base" for seaplanes. The municipal airport provides regional and local non- commercial aviation services for corporate and recreational aviation. The Boeing Company leases 70% of the general aviation airport space and uses it for airplane production -related purposes. C. Allen & Associates, Inc 15329MH - January 5, 1996 $ Complete/Self-Contained L LLand Use The existing land use pattern of the City of Renton reflects 100 years of settlement and expansion. The original city was settled in the broad flood plains at the confluence of the Cedar and Black Rivers, along the shore of Lake Washington. This ` area continues to be the heart of Renton with its mix of heavy industrial uses and t the airport along Lake Washington, the Central Business District at the foot of Renton Hill, all interspersed with older single-family housing mixed with small 1. apartment complexes. Surrounding the original settlement are the residential areas on the hills and plateaus, much of which was originally developed in the county and annexed into the city. Single-family residential neighborhoods are concentrated in the Highlands, Kennydale Hill, West Hill, Earlington Hill, Talbot Hill, Sierra Heights, President { Park, and along the ridges along Maple Valley. Along the edges of the single-family 1 neighborhoods and along the transportation corridors are concentrations of multifamily housing. Significant concentrations exist along NE 4th Street, Sunset L Boulevard NE, SW Sunset Boulevard, and Benson Road S. In addition to the Central Business District, commercial areas are concentrated along the major arterials and freeway exchanges including Rainier Avenue, Grady Way, Sunset Highway, Bronson Avenue, NE 4th, the NE 44th Street exit, and SW 43rd Street. I The Green River Valley was annexed to Renton in the late 1950s with the intention L of developing a second industrial base. This area, which was originally the northern end of a long farming belt along the Green River, now includes a few residual houses �- and a significant concentration of manufacturing, warehousing, and office park development. A node of commercial services is located in the southeast corner of the Valley. Valley Medical Center dominates the land uses along the southern portion of Talbot Hill. Surrounding the hospital is a concentration of support facilities including medical and dental offices and laboratories. Bruce C. Allen & Associates, Inc. L' 15329MH - January 5,1996 6 Complete/Self-Contained L LEconomic Development - Boeing During World War II, the Boeing Company's decision in 1940 to build a new plant at the south end of Lake Washington to produce B-17 bombers and new flying boats changed the city of Renton more than any other event in recent history. From a relatively small town of about 4,500 people in 1940, Renton became a large industrial center of the Puget Sound region, with a population of 16,039 in 1950. Today, the 1, Boeing Company is involved in producing commercial airplanes (737s, 747s, 757s, 767s, and 777s), as well as various military and space programs. Renton is the home Lof Boeing Commercial Airplane Group's world headquarters. Each month 15 new 737 and 757 planes take their maiden flights from the Renton Municipal Airport. Boeing's recent purchase of the Longacres Race Track for future construction of a L multibuilding facility demonstrates the company's commitment to the Renton area. LThe flight training center completed in 1994 trains 777 pilots from all over the world. According to Renton's recently published (February 1995) Comprehensive Plan, Renton continues to be an important center of employment providing over 45,000 L jobs. Most of the people work for the Boeing Company or PACCAR, which continue to be major players in the local and regional economy. As discussed above, the air L- transportation industry is the leading job provider, followed by business and medical services. By comparison, the trucking and warehousing businesses are not a major L source of employment. The following chart summarizes the top 10 employers in the city of Renton as of 1989:" No. of % of Employer Jobs Total LI 1. The Boeing Company 24,516 58.86% 2. Valley Medical Center 1,733 4.16% 3. Renton School District 1,119 2.69% L 4. PACCAR 833 2.00% 5. City of Renton 459 1.10% 6. Group Health Cooperative 429 1.03% L 7. Puget Sound Power & Light 269 .64% 8. Pacific Northwest Bell 261 .63% 9. Longacres 236 .57% 10. King County Shops 217 .52% L Total 30,050 100.00% 6n 'Community Profile - City of Renton publication, dated October 1989. More current information is not available. Bruce C. Allen & Associates, Inc. 15329MH-January 5,1996 7 Complete/Self-Contained L f l The chart clearly illustrates the dependence of Renton's job base on the Boeing U Company. As Boeing impacts Renton more than any other employer, the company's activities are important to the local economy. In 1990, the Boeing Company purchased the 212-acre Longacres horse racing track la near Southcenter, to the southwest of the subject property, south of I-405. It intends to construct a new world headquarters campus containing as much as 2.5 million square feet of predominantly office space in 15 buildings. The campus will house as many as 10,000 workers when fully built out. For many years the Boeing Company's policy was to lease office space generally for 5 years in order to maintain staffing flexibility. In the late 1980s this policy was changed as demonstrated by the company's decision to acquire the Longacres site and to build a 1.2-million-square-foot addition to the Everett facility. In late 1992, due to airplane order deferments, the company announced manufacturing employment cutbacks that would take effect over the next year. The production cutbacks, in combination with the desire for consolidation fulfilled by the completion of the major construction in Everett, have led to an abandonment of 760,000 square feet of space to date in the South End area alone. Over the short term, then, Renton's Boeing employment has decreased during this shifting/transitional phase; however, as construction occurs at the Longacres site, employment in the immediate area will rise accordingly. Meanwhile, the other L non -Boeing aspects of Renton employment are growing, most notably in health care with the recent addition to the Valley Medical Center, and in retail, particularly new Lauto dealerships. Effects on the local economy such as retail sales are not yet apparent as the Boeing move -outs are so recent. Immediate Nei¢hborhood The subject is located at the western edge of the Renton CBD, on the east side of Rainier Avenue and extending from S. 2nd to S. 3rd Street. The subject abuts several tax parcels in eight ownerships. On the west side and fronting Rainier Avenue are two fast food restaurants, Taco Time and Wendy's Bruce C. Allen & Associates, Inc. LA 15329MH - January 5,1996 8 Complete/Self-Contained L LHamburgers, a Renton Subaru auto sales lot, and two vacant parcels. On the east Lside is land owned by First Interstate Bank and a small retail building occupied by Custom Picture Frame. In addition, a Safeway store, scheduled for reconstruction, occupies the parcel on the east side of First Interstate's corridor of land and fronting 2nd Street. Commercial development activity in downtown Renton can best be described as most active along the arterials at its periphery but relatively inactive within those boundaries. To a large extent this is due traffic circulation, which is cumbersome within downtown but robust on the peripheral arterials, especially Rainier Avenue on the east side, Grady Way on the south side, and Bronson Way/Sunset Boulevard L on the east side. These streets are nearly always busy, especially with traffic to and Lfrom I-405. The center of downtown is occupied by the mostly older commercial buildings comprising the traditional Renton business district. These are generally surrounded by residential neighborhoods to the west and northwest mixed with older commercial buildings. Larger landmarks include the Renton Airport and the Boeing Plant on the north side of downtown, Paccar's Kenworth plant and large industrial tract on the northeast side, Renton Memorial Stadium south of the Boeing Plant, and Renton High School, located on S. 2nd Street south of the airport. In the subject's immediate vicinity, commercial redevelopment consists of the gradual change of the face of Rainier Avenue from I-405 northward past the airport. L, In recent years Fred Meyer has remodeled its store and shops at Renton Center at the southwest corner of Rainier Avenue and S. 3rd Street. Property acquisitions by auto dealerships have occurred in recent years near the intersection of Rainier Avenue and Grady Way, traditionally an auto sales area and ` now designated by the City as a regional auto mall, with special zoning characteristics. In fact, the City recently purchased the downtown sites of Good Chevrolet to permit that business's move to the auto mall area. Along Rainier Avenue some property owners have redeveloped their sites by removing buildings to make way for fast food restaurants and other businesses, Bruce C. Allen & Associates, Inc. V 15329MH-January 5,1996 9 Complete/Self-Contained which seek the advantage of frontage on this heavily traveled arterial. Newer buildings include Taco Time, McDonald's, and Wendy's. The vacation of Lake Avenue between 2nd and 3rd Streets was prompted in large part by Safeway's plans to rebuild its property just east of the subject. That plan calls for demolition of the Safeway store and the adjacent bookstore building and the construction of a larger Safeway store and a building of retail shops. C. Allen & Associates, 15329MH • January 5, 1996 10 Complete/Self-Contained /O// O tit —PZ.7 LJ 6 ry t'' 1/55 11 Pt10MO rFL In'7. D iC C� nb In'i r4PI ` C. 0 ,TR CT7 /rd NION 4 yiI NOS. r .92 l l`71 —fir L] 134 MrnrFl / ) C R �l X1116 — Q -Z� �! o ry r. _ 14 �r.c 2 6 � //,-cry CI I T .T r 'R.T i 60 L f. SEC. s? __ 3,a�s _ __ - qC. r -- .. ti 'cOO I r^T. (.7� h b � /_ nV ^( /'- �0973 v. -' —}( IK-- -78 q1i{�Jl�r a5 SO A F 2. c res 224 .56 �AC4. TL.?;o L82./71 10 (> h .79 240 PL ml`n_ wA;,r i 2h0�0 I \,\O ,u'��j69. L 1sJ j0`'uPE�P d I( — c - 6ou4LI 3 rcl Plot Plan" Bruce C. Allen & Associates, Inc. u I I U I L. PART II - FACTUAL DATA Description of the Subject Property Site The subject is flat, irregularly shaped (see Site Plan), and 35,804.8 square feet in size. Access The subject can be accessed from both 2nd and 3rd Streets as well as from the parcels adjacent to it. Soils No results of a soils test have been provided for our review. However, judging from the presence of commercial buildings on other nearby parcels, we assume that the soils making up the subject site have sufficient load -bearing capacity to support commercial improvements indefinitely. We have not been informed of whether the site has been tested for the presence of hazardous materials. This report assumes no hazardous materials are present. Utilities All are available, including sanitary sewer, water, electrical power, natural gas, refuse disposal, telephone, and cable television. Zonin Until the City's adoption of its new zoning code, the subject was zoned B-1, Business, a general commercial designation. Now it is zoned CA, Arterial Commercial, the purpose of which, according to the zoning code, is "to provide suitable environments for strip commercial development" and "provides for a wide variety of retail sales and personal/professional services primarily oriented to automobile traffic along designated major arterial streets." Bruce C. Allen & Associates, Inc. V 15329MH- January 5, 1996 11 Complete/Se(f-Contained >13nll vHs ° k: M SJ p Y h p h p I m T W (G(yy d2p2 pU HO ^ 22 U +n ii_ h1y Cyr U <p II I 0�22 2TW4 Q z k2W In U[� -[+CW IW4i�W �' U-2 N �IOV Ua„pi O[ rz F` � tI o U Wn0 L $ N k .6r +rZ L J J Q9 � Y h I ,r � p 2NIB fi u ;K� 1 nos► '3A V 831NIV& w axr r ao• Y . rcn� T.3fwrn ! C. Allen & Associates, Inc. Permitted outright in CA zones are a lengthy list of commercial uses organized under the headings Retail and Services. Permitted as "secondary" uses subject to conditions are places of adult entertainment, multifamily residences (up to 20 units per acre), professional and business services, furniture and home appliance sales, parking lots, research and development buildings, medical facilities, gas stations, rental services, schools and studios for art, dance and music, and elementary and secondary schools. A number of uses are permitted as accessory, or incidental to a permitted primary or secondary use, and as conditional uses requiring a hearing examiner's review. Typical development standards include: — A building height limit of 50 feet (less adjacent to a residential zone, greater with a conditional use permit). — Front yard setbacks of 0 to 15 feet for buildings less than 25 feet high, 15 feet or greater for taller buildings. — Lot coverage of 65% of total lot area (up to 75% if parking is provided within the building or within a parking garage). — landscaping strips at least 15 feet wide along public streets. — minimum lot line of 15 feet along public streets. The CA zones in the designated regional auto mall carry special exceptions to regulations governing CA zones. In this area -- bound by Grady Way, Rainier Avenue, I-405, and Lind Avenue, called Area A, and by Grady Way, Shattuck Avenue, the railroad right-of-way, and the CA boundary east of Lind Avenue called Area B -- primary uses are auto, motorcycle and passenger truck sales, while secondary uses are licensing bureaus, car rentals, public parking, or other uses that directly support dealerships. Assessed Value and Real Estate Taxes As publicly owned property, the subject pays no property taxes but nevertheless is assessed as follows: Bruce C. Allen & Associates, Inc 15329MH - January 5, 1996 12 Cornplete/Sel f-Contained •f STORM MN INV( :.36 — INV(N-S-W)-21.16 CHPN. V;7- 6 . CONC. +CURB .0 + ��a, IT20 t "�,� "' I • Ty'a9O S 88'22'20" E 51 '2 : 4' 184.46 `+ '�'yoya N /vim y�,�—ram—}-� �N �N CONIC. WALK IN MH ate; $ OO + 31.62 y USE PERMIT •30.34 SE)-20.531N yy 5,88'3,2'20. E .` `. 1.196.47 N- 1B.. "AN. 3 I d O 0 OM1 N ) 2' S P `. •. Ice TOP HAN. 30• OR L \ I CONIC. < cM1 4 P c 1 d "� PAD w <CAP 31 2 CO CUR U S ) 4 1. I N�1 Py�� ��`�� 1 I1jI ��y NN J Ilr,, • 6� SAFEWAY STORE r CONC. BLOCK BLDG. �Oci BLDG. PERIMITER AREA >• 26,38B SO. FT. U U / M1ae n CEI T 0" I.SB W ^' (N)�20 INV(N)-26. BOT..24.90 L ING DOCK ELEV.- 32.81 _ILp' W TRASH COMPACTOR z �o P"4 ON CONC PAD / 0 2. 4 14 c$�-L' CHAIN / CONS\ /, < � � LINK FENCE WATER ITAf iLl Easement Plan C. Allen & Associates, Inc. 1995 Assessed Values Tax Account Land Improvements Total Taxes 722950-0131 $100,000 $4,800 $104,800 $1.25 The Assessor's parcel map does not make clear which part of the subject the above assessments apply to, except to indicate an area of 10,000 square feet and improvements of asphalt. The tax parcel appears to be located at the northwest corner of Rainier Avenue and Third Street. The above assessment equals $10.00 per square foot of area. By comparison, the adjoining tax parcels are assessed and taxed as follows: 1995 Assessed Values Parcel Assessed Tax Account Land Improvements Total Taxes Area (sf) Value/sf 182305-9070 $212,100 $205,100 $417,200 $5,762 $21,215 $10.00 182305-9071 126,500 0 126,500 1,748 15,821 8.00 000720-0199 102,600 171,900 274,500 3,792 11,400 9.00 722950-0090 3,200 0 3,200 45 398 8.04 722950-0120 24,400 0 24,400 338 3,048 8.01 722950-0130 35,700 0 35,700 494 3,573 9.99 722950-0140 59,600 0 59,600 824 7,450 8.00 The subject and the adjacent properties are taxed under levy code 2100, for which the 1995 tax rate is $13.80797 per $1,000 of assessed value. The preliminary 1996 rate is $14.07, a 1.9% increase over 1995. Description of Improvements The subject appears unimproved except for some paving improvements along its southern half. In addition, a portion of the Custom Picture Frame shop may extend onto the subject. These improvements were constructed by adjacent property owners and hence belong to those tax parcels. Therefore, their value does not contribute to subject value. Bruce C. Allen & Associates, 15329MH - January 5, 1996 13 Complete/Self-Contained U L PART III - HIGHEST AND BEST USE L Highest and best use is defined as: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the ' 1 highest value. L As If Vacant An analysis of the highest and best use of the subject site as vacant must consider L uses that are 1) physically possible, 2) legally permissible, 3) financially feasible, and 4) maximally productive. L L. Physically, the subject is about 0.8 acres in size. But its shape is, of course, long, narrow, and curved. The fact that this shape is wholly inappropriate for a stand-alone commercial use is irrelevant, because Washington state law requires that street vacations be appraised as economic units. Therefore, the site's physical constraints do not lower value. Legally permissible uses are itemized by the City's definition of the CA zoning designation, which permits retail commercial uses. These are clearly maximally productive, based on the uses of the adjacent parcels, and financially feasible, as evidenced by Safeway's planned redevelopment of its site next door. However, although the City will vacate the subject, it will retain easements for three existing utility lines, sanitary sewer, water, and storm drainage. These easements effectively will prohibit the placement of structure on much of subject area and thereby will lower its value in comparison with an unencumbered subject. As Improved The subject improvements amount to nothing more than asphalt paving. The value of the property as if vacant certainly exceeds or equals any value as improved. Therefore, the highest and best use as improved remains the same as that as if vacant. SFrom The Appraisal of Real Estate, Tenth Edition, 1992, Appraisal Institute, page 295. C. Allen & Associates, Inc. b 15329MH - January 5,1996 14 Complete/Self-Contained � � 126M ST �� O 1 S161H E1 TD Si I! 128THII ST Ii6Tx 's* ezoo < - 1 e mm� er n a1 .•h.. Af <I � 6FES Ls yy 1 LW&4CRES i RACE i i IRACK i. i 1 1 r' y i )N Sw 2; I0 81 S4 �n SW 31 TT ST P11 SW M Sr > ST S N, UWA PARK W/ yid \ Oa!Y6Y1�- Sale 3 1 1 \�� ��1��1...,• I ET�I ..: •� _tea\�.�®����'III��©\ ,1. r< PARK 7 `N 8 RIOE a i " 3 3 .filh < A t '.�.•,., SE ss AR 010 s lSOn PAMK - -- 4J- �tN Wy Dy i SE S RENTOH VILLAGE PL S 11TH ST •_� J f � ST �n z _ W o �TW rM muEr S - CT VA ;. S 16TH Si __... _M� ."MILLI 7 R PARK . C R '� i � Z1Z7R' - = `% ❑ YIPARKCMR U�� � sfg S r _ _ f JR 1 � � NS 1 162H0 W S ZTM ST SE 164TH H SAX—ST• 'E 166TH z E91n n w ST SE 16M ST x v W _ N re —•-r-- —�v�—r -r—_ v o Q _ ii-- y Si Comparable Land Sales Map Bruce C. Allen & Associates, PART IV - ANALYSES AND CONCLUSIONS TO VALUE Valuation Approaches Used in the Valuation Process - As vacant land, the subject is appropriately valued using only the Sales Comparison Approach. The Sales Comparison Approach to Value entails comparing the subject property with comparable commercial land that has sold recently. We employ the comparison process to establish subject value assuming it is unencumbered by easements. In a final step, we estimate an appropriate discount for the utility easements. Sales Comparison Approach to Value To value the subject, comparable sales of vacant commercial parcels are described and analyzed to arrive at an estimated market value for the subject. The process involves adjusting the comparable prices upward and downward to the subject to account for differences between them. The following table summarizes the comparable sales, and each comparable property is described in greater detail on the pages that follow. Land Sale Comparables Size Sale Sale Price/ Sale Location (sf) Date Price sf I First Interstate Site 112 S. 3rd Street 2 Good Chevrolet Site 255 Logan Avenue S. 3 Medical Center Site 400 Block Williams Avenue S. 4 Gas Station Site NWC Grady Way & Talbot Road 74,450 05/04/90 $825,000 $11.08 96,153 07/07/95 $900,000 $9.36 11,500 09/09/92 $96,500 $8.39 41,000 10/26/93 $565,000 $13.78 5 Mathewson's Automotive Site 20,725 03/16/90 $240,000 $11.58 271 Rainier AvenueN. 16,670 11/01/91 $182,500 $10.95 Bruce C. Allen & Associates, Inc. 16329MH - January 5, 1996 15 Complete/Self-Contained L L L All of the comparables were zoned B-1, Business, when they were sold. Under Renton's new zoning, the most important comparables are now zoned CA, as is the L" subject, while the downtown comparables carry CD, Downtown Commercial, designations. Any differences in zoning are far outweighed by differences in location, giving zoning little weight in indicating subject value. Sale 1 is the most important indicator of subject value. It involves the First LInterstate Bank ownership that abuts the subject's east side. The buyer eyed this as the site of a future bank branch -- the existing one is just across 3rd Street to the south -- and liked the fact that this site both fronted 3rd Street and had access to and from 2nd Street. LThis is the only parcel in the subject's immediate vicinity to sell in the past 5 years. The only other transactions involve Safeway's current assembling of nearby land for its planned new store. Safeway's representative declined to reveal either the owner/sellers he had contacted or the option prices he had negotiated, but he did indicate his negotiations were guided by this comparable sale. He also confirmed the option prices fall in the range of $10.00 to $15.00 per square foot. `- Sale 2 is the City of Renton's acquisition of the Good Chevrolet site downtown. The L purchase makes possible Good's move to the vicinity of Rainier Avenue and Grady Way, a few blocks south of the subject and the City's designated auto mall. The City has no immediate plans for this acquisition, and the purchase qualifies as a policy move by the City toward shaping the future of downtown. LThe sale price, based on appraisals, applies to the actual CBD, whereas the subject's vicinity, associated with the more active retail development of Rainier Avenue, is locationally different. Comparatively speaking, the CBD's appeal is more limited, L due to the predominance there of small businesses in outdated structures, which generally serve as cash cows for their longtime owners. This situation inhibits any LJ inclination to redevelop, consequently making land values for the most part lower than in the subject's immediate vicinity. Hence, despite the subject's smaller size, 1.. we would expect the subject to sell for more per square foot than this comparable. Bruce C. Allen & Associates, 15329MH- January 5, 1996 16 Complete/Self-Contained l: Sale 3 is another downtown site, albeit a peripheral one. This was the former Llocation of two single-family residences and was purchased as expansion area for the Renton Family Practice Center, which owns most of the block. While the zoning and the contemplated use are commercial, the immediate area, except for the clinic building, consists of older single-family residences, making this location one where the slow commercial expansion of downtown over the years has not quite penetrated u the residential neighborhood around it. This is the lowest comparable unit price, and the location's inferiority to the subject's much more active one defines this price as lower than the subject's. Sale 4 is the site of a new gas station on the south side of the CBD, close to the auto L mall area along Grady Way and near other commercial improvements there, including the Renton Village Shopping Center with multiplex movie theater. As a corner location at two arterial streets, the site is decidedly superior to the subject. Sale 5 consists of two transactions involving the site of Mathewson's Automotive, an auto repair shop. Mathewson Automotive's current owner, Brent Kranz, bought the business from Ross Mathewson in 1985. Sale 5a involves Kranz' 1990 purchase of the gas station that housed the business. Kranz had planned the new building now standing there but soon realized the location was not feasible without expansion for parking. He persuaded Mathewson to become a partner in buying the parcel next door to the south, described here as Sale 5b (Kranz later bought out Mathewson's share). Our sale descriptions indicate unit sale prices based on parcel sizes indicated in the L county assessor's current records. However, Assessor's records at the times of sale show slightly different parcel sizes which produce unit prices of $11.51 and $11.54 for Sales 5a and 5b, respectively. Nevertheless, Kranz recalls Sale 5b's area being the 16,670 square feet shown on our table. We note also that Sale 5a's unit price might be slightly higher, since both buyer and seller shared the cost of demolition and tank removal. However, the buyer indicated this cost was small, definitely less than $5,000. Therefore, demolition cost's impact on land acquisition price would not be significant. Bruce C. Allen & Associates, Inc. V 15329MH - January 5, 1996 17 Complete/Self-Contained This location fronts both Rainier Avenue and Nelson Place, the side street that runs Lalong the comparables' west side; furthermore, Rainier Avenue's intersection with Airport Way is just few hundred feet to the south. This makes the comparables' visibility and access superior to the subject's. Analysis and Conclusion l The comparable sales form the range of $8.39 to $13.78 per square foot. Our discussion of the sales concluded that the subject is inferior to Sales 4 and 5, superior L to Sales 2 and 3, and comparable to Sale 1. These observations shrink the range to $9.36 to $11.58, as indicated by Sales 2 and 5. The sales go back in time as far as 5 years, and our selection of older comparables was forced by the relative lack of commercial land sales activity in the subject's neighborhood. Because some of the sales are relatively old, one questions whether price appreciation has occurred over time. In the region generally, real estate prices have held fairly steady since the last wave of price appreciation ended in mid-1990. Meanwhile, the land market for some property types, especially branch banks, are influenced by special needs for location, L_ visibility, and access that result in their selling near the upper end of their respective locations' market ranges (fast food restaurants and gas stations have similar requirements). First Interstate knew it was paying top dollar for Sale 1 at the time but felt location, visibility, and access made that site worth it. Whether it would pay more today is probably best indicated by the option prices Safeway has negotiated for its planned L expansion. The only information available to us about those options does not define the subject's value range more precisely than do the comparables. We conclude that the prices indicated by the comparable sales do not indicate significant value appreciation for land in the subject's vicinity. They do, on the other hand, portray a climate of redevelopment in which demand could drive prices higher. Nevertheless, we feel the subject's current market value is best indicated by Sale 1's price of $11.08. Giving the subject a small mark-up for smaller parcel size, we Bruce C. Allen & Associates, Inc L, 15329MH- January 5, 1996 18 Complete/Self-Contained conclude a value estimate -- assuming a subject is an economic unit unencumbered by easements -- of $11.25 is appropriate. Discount for Easements The presence of easements for water, sanitary sewer, and storm drainage utility lines makes the subject is simply worth less than it would be without these encumbrances. They prevent the placement of buildings on much of the subject's area, limiting its use to parking and other supporting development features. The easements do not prevent the subject area from contributing to the building density of the parcels of which they are a part. Furthermore, because the lines are underground, the surface area can be used in any way except to support structures and thereby is far less restricted than by, say, a sidewalk or landscape easement. Therefore, we would estimate the discount at significantly less than 50% of unencumbered value. On the other hand, the prohibition against structures in our view calls for a discount that must be considered significant. We conclude a discount of 20% from unencumbered value is appropriate. This would place our value estimate with easements at 80% of $11.25, or $9.00 per square foot. For the 35,804.8-square-foot subject, this indicates an estimated value for the subject as an economic unit and assuming easements for utility lines of $322,243, rounded to $320,000. Bruce C. Allen & Associates, Inc. 15329MH - January 5, 1996 19 Complete/Self-Contained u L, CERTIFICATION OF VALUE LI, the undersigned, do hereby certify that I have personally inspected the property located at Lake Avenue S. between S. 2nd & S. 3rd Streets in Renton, Washington, and have prepared the analyses, opinions, or conclusions of value. L To the best of my knowledge and belief, the statements of fact contained in this report and upon which the opinions herein are based are true and correct, subject to L the assumptions and limiting conditions explained in the report. Employment in and compensation for making this appraisal are in no way contingent L upon the value reported; it was not based on a requested minimum valuation, a specific value, or the approval of a loan. I certify that I have no interest, either present or contemplated, in the subject property. I have no personal interest or bias with respect to the subject matter of the appraisal report or the parties involved. I 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 L Professional Appraisal Practice of the Appraisal Institute, as well as in conformance to the USPAP adopted by the Appraisal Standards Board of the Appraisal Foundation. This appraisal report identifies all of the limiting conditions (immposed by the terms of MY assignment or by the undersigned) affecting the analyses, opinions, and conclusions contained in this report. No one other than the undersigned, with the exception of the person(s) shown on additional certification(s) if enclosed, prepared the analysis, opinions, or conclusions Lconcerning real estate that are set forth in this appraisal report. I certify that the use of this report is subject to the requirements of the Appraisal LInstitute relating to review by its duly authorized representatives. As of the date of this report, I have completed the requirements of the continuing education program of the Appraisal Institute. L In my opinion, the market value of the fee simple interest in the subject property, as of December 20, 1995, is: L, THREE HUNDRED TWENTY THOUSAND DOLLARS ($320,000) l.. V Bruce C. Allen, CRE State Cert. #AL-LE-NB-C622KW Bruce C. Allen & Associates, Inc. v 15329MH - January 5, 1996 20 Complete/Self-Contained L CERTIFICATION OF VALUE 1. I, the undersigned, do hereby certify that I have personally inspected the property located at Lake Avenue S. between S. 2nd & S. 3rd Streets in Renton, Washington, L and have prepared the analyses, opinions, or conclusions of value. To the best of my knowledge and belief, the statements of fact contained in this report and upon which the opinions herein are based are true and correct, subject to Ij the assumptions and limiting conditions explained in the report. Employment in and compensation for making this appraisal are in no way contingent L upon the value reported; it was not based on a requested minimum valuation, a specific value, or the approval of a loan. I certify that I have no interest, either present or contemplated, in the subject property. I have no personal interest or bias with respect to the subject matter of the appraisal report or the parties involved. I 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, as well as in conformance L to the USPAP adopted by the Appraisal Standards Board of the Appraisal Foundation. `, This appraisal report identifies 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. No one other than the undersigned, with the exception of the person(s) shown on additional certification(s) if enclosed, prepared the analysis, opinions, or conclusions concerning real estate that are set forth in this appraisal report. L I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. In my opinion, the market value of the fee simple interest in the subject property, as of December 20, 1995, is: THREE HUNDRED TWENTY THOUSAND DOLLARS ($320,000) L. John M. Hopkins, As ciate State Cert. #HO-PK-IJ-M53100 Bruce C. Allen & Associates, I 6 . 15329MH - January 5, 1996 21 Complete/Self-Contained L L Part V - Addenda Bruce C. Allen & Associates, Inc. 15329MH - January 5,1996 Complete/Self-Contained 'I�_��N CIO..R >r�, LrYG I ♦EI. II. IOE , 14 b ♦e SL !o •� R�! N� I des. tt to ,+ ♦ '1a \ I a' V N )1 1of is w ) ) h >' 1 „$ n. < 10 0 ,0 \ A to 1 36 AC L 1 '' J1 i ) TR. ! nII �b L _'♦rsIrrs .. r/. rI /= iu., �� 1�; wll` � ,�O C w tt) )ICE Y )f II /t I .Y T,13 I p0 .LA�9 // .A A zlz i> NA/N•ore w(Rl rs Inn S. THIRD $T J \ Y '• �\� w. we //S. ze si sl• et4 lGeg s••>: 0 O Jl J6N jJ.e 6.5 kt J .G p 5 iO,r'V6 i 7 8Y se Iti C t Ise et uu O0' :, 4 or �pM 3RD � i NN-io.,..lNh 6Y tU.al3'922890 3 S' asrfr rt 146 it 15329-1 Comparable Land Sale 1 Bruce C. Allen & Associates, Inc. P LAND SALE COMPARISON NUMBER: 1 Address: 112 S. 3rd St. City: Renton County: King State: WA L Location Data: On the west side of Renton's central business district, on the north side of S. 3rd St. 300' east of Rainier Avenue. ' Date of Sale: 05-04-90 Auditor's No.: 900504-0732 Map Pg: 656 Price: $825,000 Excise No.: 1132888 Use: COM Buyer: First Interstate Bank of Wash. Seller: Renton Motels, Inc., Anwar Kajani, pres. Confirmation: Marco Spani for buyer, (206) 292-3135 Instrument: WD Terms: Cash Zoning: B-1, City of Renton Utilities: All available Legal Desc: Portion of H.H. Tobin Donation Claim # 37, tgw Lot 14, Renton Shorelands 2nd Supl.; SE/4, Sec. 18, T23N, RSE; Assessor's Parcel No. 000720-0004, -0212; 722950-0140. Dimensions: irregular Land Area: 74,450.00 Unit Price: $11.08 Per: SF Remarks: 1st Interstate purchased this as a future bank branch site to replace the existing one across the street. Its advantages were its large size and that it had access to both 2nd and 3rd Streets. The property had been on the market for some time before this transaction. Assessed value at sale: $490,200. 15329-1 S. THIRD ST 3 JK ° A (.rn I✓c.) L w .I 3e 13e V° �e ff I! fe � f. � ff fF / o Nz as a ae fo a val v 7 o0 ro°e w 'a :5 fee ,e Z °o a c� 0 ' `l °e(� yd J h3 roo Z2 ze 3 , M o 4 too J ; /6 0: 7 /7 n 8 i I `ess/gb 9 J h /O 0 Bcc 49 4o -fo 44 44 b s 4 3 2 / N e � of pjia .° p7� of '' yp 4 99 4 4o 44 4 k w 7 ,fe ,Lee . ,.piko 24S $ 7 aio M. 7 N ;5 23 : y 8 f "044Ob ° be ie „ a4 b 0 IF°�j° W _ 9 ,°a1G Y I$05: raps Uv z2 �r 9 ,�� F- k ;�2/: a. /0 M � o;i 2/. N /0 04 a>'SS33 i2o 'D`S N i9. � /2 qq qq , 5/9° /2 e. 'es4� Ir o ,dot' C b 8. m /8 /3 q° !J ,po/B = _ l3 'oil° o s/B Se o Ie ee " �/7 S. FOURTH -- ___( )ST. $ 15329-2 Comparable Land Sale 2 JI Bruce C. Allen & Associates, Inc. L LAND SALE COMPARISON NUMBER: 2 L Address: 255 Logan Ave. S LCity: Renton County: King State: WA Location Data: Four non-contiguous ownerships in downtown Renton, at the northwest corner of Houser Way and Burnett Ave. S, the northeast corner of S. 3rd St. and Logan Ave. S, the west side of Burnett Ave. S 150' north of S. 3rd St., and on the east side of Morris Ave. S between 2nd and 3rd Sts. LDate of Sale: 07-07-95 Auditor's No.: 950707-1003 Map Pg: 656 Price: $900,000 Excise No.: 1436914 Use: COM LBuyer: City of Renton Seller: Howard L. & Diane J. Sheridan, owner Good Chevrolet. LConfirmation: Howard Sheridan, (206) 235-2000. WD LInstrument: Terms: Cash LZoning: B-1, City of Renton Utilities: All available LLegal Desc: Lots 1-5, Block 1, Lots 1, 15, Block 2, Motor Line Add.; Lots 16-21, Block 33, Firs Add.; Lots 6, 7, Block 1, Smithers Sixth Add.; SE/4, Sec. 18, T23N, R5E; 569600-0005, L-0010, -0050, -0120; 783930-0305, -0315; 784180-0035; Dimensions: irregular { L Land Area: 96,153.00 Unit Price: $9.36 Per: SF Remarks: Consists of the City's purchase of parking areas of Good LChevrolet, a longtime downtown Renton auto dealership, making possible the seller's move to the vicinity of Rainier Ave. S and Grady Way, which the City has designated as an auto dealership center. Assessed value at sale: $710,900. L 15329-2 0 L, 1. I. _ ..l v I I I I ti Y s \ � jJ �o /e/si 5t ' 11 > 0 = eo r �'• 9a '3� ��a �e u O� N v �Nd ............................................. .............................. � e � o SO s E3 a S .e a I S W I l- 2Z 15329-3 Comparable Land Sale 3 9, to o 0 SURNETI rr t r0 N b .f �3 O - N \ Sn Bruce C. Allen & Associates, Inc. LAND SALE COMPARISON NUMBER: 3 Address: 400 Block Williams Ave. S City: Renton County: King State: WA l Location Data: In downtown Renton, on Williams Ave. S midway between S. 4th l and 5th Sts. Date of Sale: 09-09-92 Auditor's No.: 920909-0761 Map Pg: 656 Price: $96,500 Excise No.: 1266623 Use: COM Buyer: Renton Family Practice Center, Manfred LaBand, MD, partner Seller: Paul W. & Lila Houser, Renton �. Confirmation: Manfred LaBand Instrument: WD Terms: $6,500 down, interest -only pmts @ 7.O1, renewable after 5 yr Zoning: B-1, City of Renton Utilities: All available Legal Desc: Lots 16, 17, Block 27, Town of Renton; SE/4, Sec. 18, T23N, RSE; Assessor's Parcel No. 723150-2455, -2465. Dimensions: 100'x 115' Land Area: 11,500.00 Unit Price: $8.39 Per: SF Remarks: Purchased as expansion area for the Renton Family Practice Center, which owns most of the block. The Center had planned to erect a facility on this parcel, but by 1995 these plans were up in the air. Assessed value at sale: $46,000. 15329-3 'NI7 PURPOee 07 ATIPC YOUR 90T GUARIIT vskSUIMMTS. 1330.94�-� -r-- sfrJ sr.) 7TH Sl. to i.i3 10o Apt) v o 0 •' 8 ° a z4 , a i K.C. 72 NE f9--23 / A/r— E -100' _ j19.30 o rA<. ow O. Aacc ' t J ' o to '1 0 Q• >x PzL 5�d' .�. •! �` y ;P S'D f 4JPe 3 ^oe E.�� fr I •:^ ° ^ j• e� s- yak r! a \� S o. r•f � 6 Q �•,� /" Iook to i R10 �0 m� S ,f 1e 7 ,A LOT I �' I le ,,� • y, OA -tt9 VI 1 \ 60 .\� 9 <o y: a LOT 2 S o 5 yo w v a 97 a�'9 .IO' i•q II ZC I III'$ tl L G' yee S fro �t /ca'�ra.is n•�_s,..r O y�.�G.... • v 0 sia � �1Y i > H iz (7c 12 / }O c owa v G410 / rva>I p SOVT / LIMIT$ OF I X6.uT�ry ORD. IS'47r-- P S P a L C SH FFLETO NO. lag 55W +1i u 0� 15157-5a Comparable Land Sale 4 C. Allen & Associates, Inc. L LAND SALE COMPARISON NUMBER: 4 Address: NWC S. Grady Way and Talbot Road S. LCity: Renton County: King State: WA I C Location Data: On a major arterial through Renton. Date of Sale: 10-26-93 Auditor's No.: 931026-1739 Map Pg: 656 LPrice: $565,000 Excise No.: 93-1338537 Use: COM Atlantic Richfield Company (ARCO) LBuyer: Seller: Puget Western, Inc. LConfirmation: Bob Boyd, seller; COMPS, Inc. Instrument: Warranty Deed LTerms: All cash sale CA, Renton LZoning: Utilities: All to site Legal Desc: Lot 1 Grady Way -Talbot Rd TP #LVA-93-046-ECF; Tax L Account 192305-9070-03 (por) LDimensions: Irregular Land Area: 41,000.00 Unit Price: $13.78 Per: sf �. Remarks: This parcel was one lot in a 4-lot short plat surplussed by Puget Western. The corner site is level and at grade. It was zoned CO, an office zone, but the sellers obtained a rezone prior to sale due to the very soft office market in the South End. An ARCO service station has since been built on the site. 15157-5a 15329-4 Comparable Land Sale 5a Bruce C. Allen & Associates, Inc. IL LAND SALE COMPARISON NUMBER: 5a L Address L L L IL L L L L 271 Rainier Ave. N City: Renton County: King State: WA Location Data: At the west edge of downtown Renton, between Rainier Ave. N and Nelson P1. NW just south of Commercial Ave. and at the now vacated NW 3rd St. Date of Sale: 03-16-90 Auditor's No.: 900316-1423 Map Pg: 656 Price: $240,000 Excise No.: 1122349 Use: COM Buyer: Brent J. & Robin Kranz, owner, Mathewson Automotive Seller: Ross D. & Elizabeth K. Mathewson, Hobart, WA Confirmation: Brent Kranz Instrument: WD Terms: $120,000 down, wraps 2 DTs; terms at mkt "or a little less." Zoning: B-1, City of Renton Utilities: All available Legal Desc: Por Block 53, N.H. Latimer's Lake Washington Plat; NW/4, Sec. 18, T23N, RSE; Assessor's Parcel No. 420440-0261. Dimensions: irregular Land Area: 20,725.00 Unit Price: $11.58 Per: SF Remarks: Site of Mathewson's Automotive, an auto repair business buyer Kranz had purchased from seller Mathewson 5 yr. prior to this purchase of the gas station site where a new building has since been constructed. Buyer and seller shared cost of demolition and tank removal, which was less than $5,000. In 1991 (AF# 911101-1637) Kranz & Mathewson jointly purchased the adjacent 16,670 s.f. for $182,500, or $10.95/s.f. 15329-4 15329-5 [ ♦ i A r . Co q�r ° i F 0 30 I tP O of Dli s Y ....+ i 1 R r r 1lyi Z �, ,t ^ a 3. �L•Z�i l f E� 1% 03 Q da 2 to > N l Comparable Land Sale 5b Bruce C. Allen & Associates, Inc. L L L LI L L L LAND SALE COMPARISON NUMBER: 5b Address: 265 Rainier Ave. N City: Renton County: King State: WA Location Data: At the northwestern edge of downtown Renton, between Rainier Ave. and Hardie Ave./Nelson P1. NW, and between Commercial Ave. to the north and Airport Way to the south. Date of Sale: 11-01-91 Auditor's No.: 911101-1637 Map Pg: 656 Price: $182,500 Excise No.: 1215844 Use: COM Buyer: Mathewson/Kranz Partnership Seller: Chas. P. & Markie Bigley, Seattle, WA Confirmation: Brent Kranz, gen'l partner for buyer, (206) 226-2965. Instrument: Terms: Zoning: Utilities: Legal Desc: ►� Dimensions: LLand Area: Remarks: i L. L 15329-5 WD $171,800 loan financed by seller at reported market terms. B-1, City of Renton All available Por Block 53, N.H. Latimer's Lake Washington Plat; NW/4, Sec. 18, T23N, R5E; Assessor's Parcel No. 420440-0262. irregular 16,670.00 Unit Price: $10.95 Per: SF Purchased to provide more parking for Mathewson's Automotive, the auto repair business adjacent to the north. Kranz had bought the business from Ross Mathewson in 1985 and the adjacent site in 1990 (AF# 900316-1423). He needed this parcel to avoid having to move, and Mathewson helped him buy it (Kranz subsequently bought Mathewson's share). Assessor's records at time of sale indicated size of 15,805 s.f., implying a price of $11.54/s.f. Later records indicate the size shown here. Assessed value at sale: $142,200. L L L 1, L VAG-98-047 it B TASK OnDCR AUTHORIZATION No 2-97 PROJECT& Lake Ayenue_U.Ujb irom S. 3rd Street to Seattle's Cedar Rjver Ploelip Richt-of•Wav The City dasiras to authorize Right -of -Way appraizal sorvlcas pursuant to tilt) Master Agreement entered into with Bruce C. Allen & Associates, Inc. and OxGcuted on May 12, 1993 and identified as Master Agreement No.. GAG-93-047 All provisions In the Master Agreement remain in effect oxcept as expressly modified by this work authorization. and are Incorpnrnted herein by reference. Scope of Task Order I. DESCRIPTION OF PROPOSED WORK See accompanying Scope of Work II. ESTIMATE OF HOURS AND COST Task 1 S/Hour Hours Cost $11600.00 III. SCHEDULE FOR COMPLETION OF AUTHORIZED WORK All work to be completed within thirty (10) days from authorization to proceed. IV. ADDITIONAL ITEMS TO BE FURNISHED BY THE CONSULTANT The maximum amount payable under this addendum Inclusive of all fees and other costs is 6_ -,600 -00 All work Onder this work authorization shall he performed pursuant to the terms, conditions, specifications, and limitations conTalned in the Matter Araraomont. If you concur in this Task Order Authorization and agree to the items as stated above, Please sign in the appropriate spaces below and roturn to this office for final ection. CONSULTANT 8 Ce Alle AS o iates, Inc. 11 27 95.-_ Sipmtun Dab Bruce C. Allen 9590.0.92 CITY OF RENTON SIQa�tur Om Gregg Zimmerman, Administrator Planning/Building/Public Works Dept. L — — -— 1 11,.. 1 1c„ -, ir_ i_n env 01-ot 0—II—GFF1 L L L L L L L i L L L L L L L L. RIGHT OF WAY LEGAL DESCRIPTION THAT PORTION OF THE SECOND SUPPLEMENTAL MAPS OF RENTON SHORE LANDS, AS SHOWN ON THE OFFICIAL MAPS THEREOF ON FILE IN THE OFFICE OF THE LAND COMMISSIONER OF PUBLIC LANDS AT OLYMPIA, WASHINGTON, DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF SOUTH 3RD STREET AND THE CENTERLINE OF LAKE AVENUE SOUTH AS SHOWN ON THE RENTON SHORE LANDS SECOND SUPPLEMENTAL MAPS; THENCE NORTH 71003'32" EAST ALONG THE CENTERLINE OF LAKE AVENUE SOUTH A DISTANCE OF 127.79 FEET, MORE OR LESS, TO A POINT ON THE NORTHERLY MARGIN OF SOUTH 3RD STREET, SAID POINT BEING ON A CURVE WHOSE CENTER BEARS NORTH 28029'27" EAST WITH A RADIUS OF 129.15 FEET, SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING: THENCE SOUTHEASTERLY ALONG SAID CURVE WITH A RADIUS OF 129.15 FEET, AN ARC DISTANCE OF 51.32 FEET TO AN INTERSECTION WITH THE SOUTHERLY MARGIN OF LAKE AVENUE SOUTH; THENCE NORTHEASTERLY ALONG THE SOUTHERLY MARGIN OF LAKE AVENUE SOUTH, NORTH 71°03'32" EAST 88.39 FEET; THENCE ALONG A CURVE TO THE LEFT, WHOSE CENTER BEARS NORTH 18056128" WEST WITH A RADIUS OF 254.69 FEET, AN ARC DISTANCE OF 260.89 FEET; THENCE NORTH 12022'06" EAST A DISTANCE OF 245.78 FEET, MORE OR LESS, TO THE SOUTH MARGIN OF THE CITY OF SEATTLE PIPE LINE RIGHT OF WAY; THENCE NORTH 88022'20" WEST ALONG SAID RIGHT OF WAY A DISTANCE 61.07 FEET TO AN INTERSECTION WITH THE WESTERLY MARGIN OF LAKE AVENUE SOUTH; THENCE SOUTH 12022'06" WEST ALONG SAID WESTERLY MARGIN A DISTANCE OF 234.39 FEET; THENCE SOUTHWESTERLY ALONG A CURVE TO THE RIGHT WHOSE CENTER BEARS NORTH 77037154" WEST WITH A RADIUS OF 194.69 FEET, AN ARC DISTANCE OF 199.43 FEET; THENCE SOUTH 71°03'32" WEST A DISTANCE .OF 150.20 FEET TO THE NORTHERLY MARGIN OF SOUTH 3RD STREET; THENCE SOUTHEASTERLY ALONG A CURVE TO THE LEFT WHOSE CENTER BEARS NORTH 44041'17" EAST WITH A RADIUS OF 129.15 FEET, AN ARC DISTANCE OF 36.51 FEET TO THE TRUE POINT OF BEGINNING. SITUATED IN SECTION 18, TOWNSHIP 23 NORTH, RANGE 5 EAST, W.M., COUNTY OF KING, STATE OF WASHINGTON. L QUALIFICATIONS OF APPRAISER BRUCE C. ALLEN, MAI, CRE L. L Experience Engaged in the real estate field since 1962; obtained MAI and SRPA designations in 1972. Appraisal expertise covers the multitude of real estate properties and includes appraisals, market studies, consultation, project management, and arbitration functions. Appraisal and consultation includes the States of Washington, Oregon, Idaho, Alaska, California, and Colorado. Clientele varies, covering all sectors of private, corporate, and public areas. A sampling of clients includes: Corporations: Development Services of America, Gull Industries, Weyerhaeuser Real Estate Company, Quadrant, Sabey Corporation, Puget Power, Koll Company, Davis Industries. Financial Institutions: Security Pack Bank of Washington; Seattle -First National Bank; First Interstate; Pacific First Federal; Seattle Mortgage; Bancshares; Continental, Inc.; U.S. Bank of Washington, Key Bank of Puget Sound, U.S. Bancorp. Governmental Agencies: Federal - FAA, GSA, Corps of Engineers, and National Park Service; Revenue Canada State of Washington - Washington State Parks, Department of Social Health and Welfare, State Highway Department County - King, Snohomish, and Thurston City - Bellevue, Kirkland, Redmond, Kent, and others Airports - Seattle -Tacoma International Airport land use and rental study; Seattle -Tacoma acquisition program review appraiser; Arlington Airport, Renton Airport, Yakima Airport, Snohomish County Airport School Districts - Seattle, Shoreline, Edmonds, Bellevue, and Highland Port of Seattle, Port of Bellingham - METRO - Private Parties: A number of leading law firms accounting firms, developers, and individuals Special Projects: ULID benefit studies Court Witness/Arbitration: Have qualified as an expert witness in Federal Courts and Superior Courts in the State of Washington. Cases include condemnation, partial takings, air rights, and specific performance. 15329MH - January 5, 1996 Bruce C. Allen & Associates, Inc. Complete/Sel f-Contained QUALIFICATIONS (cont.) BRUCE C. ALLEN, MAI CRE Professional Organizations Member of the Appraisal Institute (MAI), member of American Society of Real Estate Counselors (CRE), member of American Right of Way Association, and King County Board of Realtors. Offices Held Past President of Chapter 8 AIREA; past Vice -President of Chapter 8 AIREA; past President of local chapter of SREA; Past national Governor of SREA; Director of AIREA, Chapter 8; Chairman of various committees; Ethics Chairman, Professional Practice, and Admissions. Education Whitman College and University of Washington -- Majored in Real Estate. Numerous professional courses and seminars. Professional Experience and Affiliations 1958-1961: Residential construction during college 1962-1965: Appraisal Associates; Office Mgr./Trainee/Appraiser Seattle 1965-1968: Yates, Wood & MacDonald; Commercial Brokerage/Mgmt./Appraising Seattle 1968-1982: Eastman & Allen Company; Appraiser/Partner Seattle 1982-Present: Bruce C. Allen & Associates, Inc.; Owner Kirkland LOther L Real Estate Development: 22-unit townhouse project (Laurel Park) Real Estate Development: 8-unit townhouse Project Manager: Commercial site in North Bend Residential Plat in Bellingham State Certification Number - General: AL-LE-NB-C622KW Expiration: 05/16/97 05/18/95 LBruce C. Allen &Associates, Inc. 15329MH -January 5, 1996 Complete/Sel f-Contained QUALIFICATIONS OF APPRAISER JOHN M. HOPKINS L L L ►. L Mike Hopkins has appraised commercial real estate since January 1986. His experience includes the valuation of office buildings, shopping centers, apartment complexes, light industrial warehouses, mini -storage warehouses, medical office buildings, and vacant residential land. He is state certified with the American Institute of Real Estate Appraisers. Mike Hopkins was a newspaper reporter for 3 years before entering the real estate field. Education M.B.A., University of Oregon, 1985 M.A., Journalism, University of Oregon, 1978 B.S., Political Science, University of Oklahoma, 1970 1988: Exam IA-1, Real Estate Appraisal Principles (AIREA); Kirkland, Washington Exam IA-2, Basic Valuation Procedures (AIREA); Kirkland, Washington Standards of Professional Practice (AIREA); Kirkland, Washington Capitalization Theory and Techniques, PartA (AIREA); University of Portland Capitalization Theory and Techniques, Part B, AIREA; University of Portland 1989: Case Studies in Real Estate Valuation (AIREA); University of Portland 1990: Valuation Analysis and Report Writing (AIREA); University of Portland Partial Client List Belt Collins & Associates Citybank City of Bainbridge Island City of Bellevue City of Redmond City of Tumwater City of Yakima Continental, Inc. Everett Mutual Savings Bank Intrawest USA, Inc. Mitsubishi, Inc. Port of Seattle Puget Sound Power & Light Co. Rabanco, Inc. Seattle School District Snohomish County U.S. Bank State Certification Number - General: HO-PK-IJ-M53100 05/18/95 Bruce C. Allen & Associates, Expiration: 09/20/96 15329MH - January 5, 1996 Complete/Self-Contained