11-13-23 Work Session Agenda and Materials
Page 1 of 2
CITY COUNCIL
WORK SESSION AGENDA
November 13, 2023, at 7:00 p.m.
City Hall Council Chambers, 201 First Avenue East
The public can participate in person in the council chambers or via videoconferencing. Register
to join the video conference at:
https://us02web.zoom.us/webinar/register/WN_u6ynRrqjTFKOVhKySrOJ9A.
Please see the bottom of the agenda for instructions to watch the meeting live.
A. CALL TO ORDER
B. DISCUSSION
1. Energy Efficiency and Conservation Block Grant Program
2. Heritage Park Easement Request
C. PUBLIC COMMENT
Persons wishing to address the council are asked to do so at this time. Public comment
can be provided in person, verbally during the online meeting, or via email to
publiccomment@kalispell.com
D. CITY MANAGER, COUNCIL, AND MAYOR REPORTS
E. ADJOURNMENT
UPCOMING SCHEDULE / FOR YOUR INFORMATION
City Offices Closed – November 10, 2023 – Veterans Day Observed
Next Regular Meeting – November 20, 2023, at 7:00 p.m. – Council Chambers
City Offices Closed – November 23 and 24, 2023 – Thanksgiving Holiday
Next Work Session – November 27, 2023, at 7:00 p.m. – Council Chambers
To provide public comment live, remotely, please register for the video conference through
zoom and use the raise hand feature to indicate you would like to provide public comment. See
the top of the agenda for the zoom link.
Watch City Council sessions live or later on Charter Cable Channel 190 or online at
https://www.kalispell.com/480/Meeting-Videos.
The City does not discriminate on the basis of disability in its programs, services, activities, and
employment practices. Auxiliary aids are available. For questions about disability
accommodations please contact the City Clerk at 406-758-7756.
Kalispell City Council Agenda, November 13, 2023
Page 2 of 2
ADMINISTRATIVE CODE
Adopted July 1, 1991
Section 2-20 Manner of Addressing Council
a. Each person not a Council member shall address the Council, at the time designated in
the agenda or as directed by the Council, by stepping to the podium or microphone,
giving that person's name and address in an audible tone of voice for the record, and
unless further time is granted by the Council, shall limit the address to the Council to
three minutes.
b. All remarks shall be addressed to the Council as a body and not to any member of the
Council or Staff.
c. No person, other than the Council and the person having the floor, shall be permitted to
enter into any discussion either directly or through a member of the Council, without the
permission of the Presiding Officer.
d. No question shall be asked of individuals except through the Presiding Officer.
PRINCIPLES FOR CIVIL DIALOGUE
Adopted by Resolution 5180 on February 5, 2007
◼ We provide a safe environment where individual perspectives are respected, heard, and
acknowledged.
◼ We are responsible for respectful and courteous dialogue and participation.
◼ We respect diverse opinions as a means to find solutions based on common ground.
◼ We encourage and value broad community participation.
◼ We encourage creative approaches to engage in public participation.
◼ We value informed decision-making and take personal responsibility to educate and be
educated.
◼ We believe that respectful public dialogue fosters healthy community relationships,
understanding, and problem solving.
◼ We acknowledge, consider and respect the natural tensions created by collaboration,
change, and transition.
◼ We follow the rules & guidelines established for each meeting.
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7700 Fax - (406) 758-7758
MEMORANDUM
To: Honorable Mayor Johnson and City Council
From: Doug Russell, City Manager
Re: Energy Efficiency and Conservation Block Grant Program
Meeting Date: November 13, 2023
BACKGROUND: The Federal Government has established the Energy Efficiency Block Grant
Program to assist local governments in implementing strategies to reduce energy use, to reduce
fossil fuel emissions, and to improve energy efficiency. As part of this program the City of
Kalispell is allocated $75,940.00. To access these funds, the City of Kalispell needs to submit an
application for approval. Upon approval, we would purchase and install the equipment and
submit a request for reimbursement. The intent of this program is to streamline the efforts and
limit reporting requirements.
One aspect of the program is the requirement to submit an Energy Efficiency and Conservation
Strategy (EECS). Since we do not currently have a strategy to meet this requirement, we need to
select energy conservation goals for our strategy. The goals provided in their template are as
follows:
i. Carbon Neutrality by 2050 or sooner
ii. Reduce energy use by 50% by 2050 or sooner
iii. 100% carbon-free energy use by 2050 or sooner
iv. 80% EV adoption by 2050 or sooner
v. Pay prevailing wages for all construction and maintenance projects by 2025 (must
also include an option of 1-4 or 6 as well)
vi. Other
As we have engaged in energy savings efforts through LED light retrofits and energy audits at
our facilities it seems that the goal of reducing energy use by 50% by 2050 or sooner is the
logical fit into our current efforts.
In respect to equipment that would be acquired, the topic is up for discussion. However, we
would recommend submitting an application to the program for the acquisition of solar powered
lights that would be installed at the parking lot at City Hall. An estimate for this is $30,314. The
remaining $46,000 could be used for solar powered Pedestrian Crosswalk Warning systems at
$11,000 per site or solar powered Driver Feedback systems at $13,000 per site. Images of these
three systems are included with this memo.
Potential locations for the Driver Feedback devices include:
1. Oregon St (b/t Hwy 93 N and Whitefish Stage Road)
2. Airport Road by Rankin Elementary
3. 2nd St W by Petersen Elementary
4. 4 Mile Drive and Kidsports Complex
5. West Wyoming near Russell School (b/t 7th Ave WN and Hwy 93 N)
6. Appleway Drive from Meridian to Hwy 2
Potential locations for the Pedestrian Crosswalk devices include:
1. 4th Ave W and 5th Street W (Elrod Elementary)
2. Meridian and Parkway Drive (KMS)
3. Woodland Ave – Crosswalk in Front of Conrad Mansion
4. Whitefish Stage – two locations near Edgerton Elementary
FISCAL IMPACTS: If approved as an eligible purchase through the program, the Kalispell’s
distribution could almost cover the costs of the parking lot lighting, two driver feedback
locations, and two pedestrian crosswalk locations (or a mixture of the devices). Additional
installations would require distributions from Traffic Signs and Signals which is funded through
our Street Maintenance funds.
RECOMMENDATION: It is recommended that the City Council receive the staff report and
provide guidance on the Energy Efficiency goal as required by the program (Part 1.b of the
attached template), potential equipment to submit with an application, and installation locations.
ATTACHMENTS:
Energy Efficiency and Conservation Strategy for Local Governments.
Images of proposed equipment (parking lot lights, driver feedback devices, and crosswalk
devices).
1
EECBG Program: Energy Efficiency and Conservation Strategy Template for Local Governments
Local governments must submit a proposed Energy Efficiency and Conservation Strategy (EECS) to the
Department of Energy (DOE) to meet the statutory requirements for the Energy Efficiency and
Conservation Block Grant (EECBG) Program. The proposed EECS must include the information contained
in Part A of this template. Local governments may use this streamlined EECS Template to meet the
requirement, but the template is not required. If a local government chooses to submit an EECS using an
alternative format, the information outlined in Part A must be included in the submission.
Local governments have the option of submitting their EECS at the time of application or no later than
1 year after the effective date of the award. If the latter option is chosen, the EECS should be a
comprehensive strategy that covers, at a minimum, all items detailed in this template. DOE will provide
informational resources and technical assistance to support the development of comprehensive
strategies.
Local governments that do not submit an EECS with their application must submit an EECBG Program
Activity File with their application and select Activity 1 (Energy Efficiency and Conservation Strategy).
NOTE: All text fields are limited to 2000 characters.
Part A:
Grantee:
Date: (mm/dd/yyyy)
UEI Number
Program Contact Email:
1) Local governments must include within their proposed strategy a description of their goals
for increased energy efficiency and conservation in the jurisdiction. Does your local
government have existing energy efficiency and conservation or related goals?
a. Yes
i. What goals do you have? (check all that apply)
1. GHG reduction goal
a. Specific goal (e.g., 80% GHG reduced from 1990 levels)
b. By what year? (e.g., 2050)
2. Energy use reduction goal
a. Specific goal
b. By what year?
3. Clean energy use goal
a. Specific goal
b. By what year?
4. EV adoption goal
a. Specific goal
b. By what year?
5. Job creation goal
a. Specific goal
2
b. By what year?
6. Job quality goal
a. Specify goal
b. By what year?
7. Other
a. Specific goal
b. By what year?
b. No, our local government does not have an existing goal, but we are selecting the
following goal as part of our strategy. If you select option 5, you must also select
from options 1-4 or option 6 (may select more than one option).
i. Carbon neutrality by 2050 or sooner
ii. Reduce energy use by 50% by 2050 or sooner
iii. 100% carbon-free energy use by 2050 or sooner
iv. 80% EV adoption by 2050 or sooner
v. Pay prevailing wages for all construction and maintenance projects by
2025
vi. Other
2) Does your local government have an existing plan or strategy document (e.g., climate action
plan, energy conservation plan, comprehensive energy plan, etc.) to reduce energy use,
increase energy efficiency, reduce emissions, or train workers for high-quality energy
efficiency jobs?
a. Yes
i. Please attach/submit/link your plan
ii. Do you intend to update your plan in the next two years?
1. Yes
a. Are you planning to use any of your EECBG Program funds
to update your plan?
i. Yes
ii. No
b. What updates do you intend to make to your plan?
b. No
i. Please briefly describe your strategy to achieve your goals listed in
Question 1
3) Are you planning to use a blueprint (see Section 4.5 of the EECBG Program Formula Grant
Application Instructions document for more details)?
a. Yes
i. Which one(s)?
1. Energy Planning
2. Energy Efficiency
a. Energy Efficiency: Building Audits and Retrofits, including
grid interactivity and electrification
b. Energy Savings Performance Contracts for Efficiency &
Electrification in Municipal Buildings
c. Building Efficiency & Electrification Campaign
3
d. Building Performance Standards for Existing Buildings and
Stretch Codes for New Construction
3. Renewables
a. Solar (and battery storage) Power Purchase Agreement
(PPA)
b. Community Solar
c. Solarize Campaign
d. Renewable Resource Planning for Communities
4. Transportation
a. Electric Vehicles for Municipal Fleets
b. EV Charging Infrastructure for the Community
5. Unlocking Sustainable Financing Solutions for Energy Projects and
Programs
6. Workforce Development
ii. How does this blueprint help you meet your strategy/goals?
b. No
i. What category of work do you plan to apply your EECBG Program funds
to? (check all that apply)
1. Strategy development
a. Developing goals
b. Developing measures to track progress
c. Providing annual reporting on goals
2. Technical consultant services to assist in strategy development
3. Building energy audits
a. Residential
b. Commercial
c. Industrial
d. Municipal
4. Financial programs
a. Loan programs
b. Performance contracting programs
c. Rebates/grants
d. Incentives
e. Other
5. Energy efficiency retrofits
a. Residential
b. Commercial
c. Industrial
d. Municipal
6. Energy efficiency and conservation programs for buildings and
facilities
a. Residential
b. Commercial
c. Industrial
4
d. Municipal
7. Transportation Programs
a. Electric vehicle planning
i. Municipal
ii. Communitywide
b. Purchasing of electric vehicles
c. Installation of electric vehicle chargers
i. Municipal
ii. Communitywide
d. Use of flex time by employers
e. Satellite work centers
f. Zoning guidelines or requirements that promote energy
efficient development
g. Infrastructure, such as bike lanes and pathways and
pedestrian walkways
h. Synchronization of traffic signals
i. Public transit system improvement investments
j. Other
8. Building codes and inspections
a. Updating building codes
b. Improving enforcement/compliance with building codes
c. Building performance standards
d. Other
9. Energy distribution technologies for energy efficiency
a. Distributed resources
b. District heating and cooling systems
c. Other
10. Material conservation programs
a. Source reduction
b. Recycling
c. Composting
d. Sustainable procurement
e. Other
11. Reduction and capture of methane and other greenhouse gases
generated
a. Landfills
b. Wastewater treatment facilities
c. Other
12. Traffic signals and street lighting upgrades
13. Renewable energy on government buildings
a. Solar
b. Wind
c. Fuel cells
d. Biomass
5
14. Programs for financing, purchasing, and installing energy efficiency,
renewable energy, and zero-emission transportation (and
associated infrastructure)
15. Other (requires approval of Secretary)
ii. How will your use of funds help your unit of government meet its
strategy/goals?
iii. Provide a brief description of your project(s)?
4) Local governments must coordinate and share information with the State in which the
eligible local government is located regarding activities carried out using the grant to
maximize the energy efficiency and conservation benefits under the EECBG Program. Have
you coordinated and shared your planned activities with your State?
a. Yes
i. Please describe how you plan to coordinate with your State
5) Local governments must take into account any plans for the use of funds by adjacent eligible
local governments that receive grants under the EECBG Program. Have you taken into
account how adjacent eligible units of local governments plan to use their funds?
a. Yes
Part B.
1. Do you plan to collaborate with other eligible units of government?
a. Yes, we are going to form a team and apply through a joint application
i. List the names of the units of government
1. Which unit of government is serving as the lead applicant?
ii. Please describe what your team plans to work on together
b. Yes, we are going to informally collaborate
i. List the names of the units of government
ii. Please describe your planned collaboration
c. We are not yet sure if we are going to collaborate with others
d. No
2. Are you planning to partner with other organizations including utilities, energy industry and
financial companies, community-based organizations, labor unions, and other non-profit
organizations for your project?
a. Yes
i. Please list your partners
b. No
3. Have you engaged local stakeholders (such as utilities, energy industry and financial companies,
community-based organizations, labor unions, and other non-profit organizations) in the
development of your plan and/or how you intend to use your EECBG Program allocation?
a. Yes
b. No
4. Will this EECBG Program funding help you to access additional sources of funding?
a. Yes
i. What kind? (Check all that apply)
1. Local government
6
2. State government
3. Federal government
4. Philanthropic
5. Private sector
6. Other
b. No
i. Would you like assistance in identifying other sources of funding?
1. Yes
2. No
5. Do you anticipate needing support for your project development/implementation?
a. Yes
i. What kind? (check all that apply)
1. Policy, planning and program design
2. Retrofits
3. Engineering and modeling
4. Stakeholder engagement
5. Program administration and implementation support
6. Outreach, education and advertising
7. Other
b. No
6. Do you anticipate the project(s) you use this funding for will continue after the EECBG Program
funding period?
a. Yes
i. Describe how the project(s) have been designed to ensure that it sustains
benefits beyond the EECBG Program funding period
b. No
i. What would help you to continue? (check all that apply)
1. Local sustainable financing
2. Public and local political support
3. Staff capacity
4. Other
7. How do you intend for your project(s) to benefit disadvantaged communities? 1 (check all that
apply)
a. Benefits include (but are not limited to) measurable direct or indirect investments or
positive project outcomes that achieve or contribute to the following in disadvantaged
communities:
i. A decrease in energy burden2
ii. A decrease in environmental exposure and burdens
iii. An increase in access to low-cost capital
iv. An increase in job quality (including paying prevailing wages for construction
and maintenance projects by 2025)
1 Justice40 Initiative | Department of Energy
2 The Initiative for Energy Justice https://iejusa.org/glossary-and-appendix/#glossary_of_terms
7
v. An increase in clean energy enterprise creation and contracting (e.g., minority-
owned or disadvantaged business enterprises)
vi. An increase in clean energy jobs, job pipeline, and job training for individuals
from disadvantaged communities
vii. An increase in parity in clean energy technology access and adoption
viii. An increase in energy democracy
ix. Other
1. Please explain
8. How will your strategy support the goal that 40% of the overall benefits of certain federal
investments flow to disadvantaged communities, in line with the Justice40 initiative?
Image of solar powered parking lot light
Image of Pedestrian Crossing Signal Image of Driver Feedback Signal
Development Services Department
201 1st Avenue East
Kalispell, MT 59901
Phone: (406) 758-7940
Fax: (406) 758-7739
www.kalispell.com/planning
REPORT TO: Doug Russell, City Manager
FROM: PJ Sorensen, Senior Planner
SUBJECT: Jeremy Peterson – Heritage Park Easement Request
MEETING DATE: November 13, 2023 (work session)
BACKGROUND: David and Sharon Young own property at 375 College Avenue adjacent to
Heritage Park, which is a city owned park. There is a trailer and old storage building on their
property, but it is essentially vacant and without immediate access to either a street or city
services. Jeremy Peterson became interested in developing the property and has entered into a
contract with the Youngs to purchase it. He has also reached out to the city regarding access. As
shown below, the property is about a half-block off of College Avenue, although there is an
extension of the public street that brings College Avenue a bit closer. However, there is a
portion of Heritage Park that separates the property from the street and the property does not
have any legal access to the street.
After discussions with city staff, it was determined that a non-exclusive access and utility service
easement through a portion of Heritage Park would provide the appropriate connection to allow
the property to develop. Mr. Peterson anticipates building a single-family home, which would be
a permitted use under the R-3 (Residential) zoning of the property. The image below was
prepared as part of the appraisal of the property and shows the area where the proposed easement
would be located. The appraisal established the value as $32,000. It should be noted that the
appraisal was prepared as a boundary line adjustment and fee simple purchase of the property,
but the sales price would be the same under either scenario.
As part of the building permit review, design details including, but not limited to, width of the
driveway, paving standards, fire access and protection, storm drainage, and utility connections
will be reviewed. It should be noted that the buy-sell contingency agreement currently provides
for a lease back to the current owner for storage, but that use would not be compliant with
subdivision and zoning regulations. Any agreement between the city and Mr. Peterson may
include a provision that such a use or any other use not in compliance would not be allowed.
If the Council wishes to move forward with the proposed sale of the easement, Mr. Peterson
would be responsible for preparing the easement document and any necessary surveying, as well
as any other costs associated with the sale of the easement and development of the site.
RECOMMENDATION: It is recommended that the Kalispell City Council receive the report
and direct staff as necessary.
FISCAL EFFECTS: There are no anticipated fiscal impacts at this time.
ALTERNATIVES: Deny the request.
ATTACHMENTS: Appraisal of property
c: Aimee Brunckhorst, Kalispell City Clerk
1
A NARRATIVE APPRAISAL REPORT OF
College Ave. Access
OWNED BY
City of Kalispell
LOCATED AT
375 College Ave
Kalispell, MT 59901
FOR THE PURPOSE OF
Forming an Opinion of the As-Is Market Value
DATE OF REPORT
October 19, 2023
CLIENT
Jeremy Peterson
2135 Wintercrest DR
Kalispell, MT 59901
APPRAISAL COMPLETED BY
James Williamson
586 Stoneridge DR
Kalispell, MT 59901
M: 406-270-2121
Email: james@sage-appraisal.com
2
October 19, 2023
File #2023-210
Jeremy Peterson
2135 Wintercrest DR
Kalispell, MT 59901
Re: City of Kalispell Real Estate
375 College Ave
Kalispell, MT 59901
File #2023-210
Dear Jeremy Peterson:
Please find attached a Narrative Appraisal Report of the College Ave. Access located
at 375 College Ave, Kalispell, MT 59901.
The subject property is further identified as Flathead County Assessor’s Parcel
Number 0977004. I have inspected the site and improvements to form an opinion of
the As-Is Market Value. The supporting data, analyses, and conclusions used to form
an opinion of the market values of the subject property are contained in the
accompanying report and addenda.
This appraisal is intended to conform to OCC Interagency Appraisal and Evaluation
Guidelines, FIRREA Guidelines, and adhere to the Uniform Standards of Professional
Appraisal Practice (USPAP).
The client and intended users include representatives of Jeremy Peterson and their
duly appointed committees. The intended use of this appraisal is purchase and sale
decisions. The purpose of this appraisal report is to form an opinion of the As-Is
Market Value as of October 19, 2023.
3
Based upon an analysis of the market data and subject to the assumptions and
limiting conditions contained within this report, I have formed the following value
opinion:
Conclusion
Property Rights Appraised Fee simple
Effective Date of Appraisal October 19, 2023
Market Value Opinion $32,000
The market value opinions have been predicated upon an exposure time of three to
twelve months, based upon available market data. The marketing period has also
been estimated at three to twelve months.
Extraordinary Assumptions/Hypothetical Conditions:
The acceptance of this appraisal assignment and the completion of the appraisal
report submitted herewith, is not contingent upon any extraordinary assumptions or
hypothetical conditions.
Best Regards,
James Williamson
Montana Certified General Appraiser
REA-RAR-LIC-15327
Certification of Value 4
CERTIFICATION OF VALUE
I certify that, to the best of my knowledge and belief:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
I have no present or prospective interest in the property that is the subject of this report,
and no personal interest with respect to the parties involved.
I have performed no services, as an appraiser or in any other capacity, regarding the
property that is the subject of this report within the three-year period immediately
preceding acceptance of this assignment.
I have no bias with respect to the property that is the subject of this report, or to the parties
involved with this assignment.
My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
My 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.
My analyses, opinions, and conclusions were developed, and this report has been prepared
in conformity with the Uniform Standards of Professional Practice.
I have made a personal inspection of the property that is the subject of this report.
No one provided significant real property appraisal assistance to the person signing this
certification.
The reported analyses, opinions, and conclusions were developed, and this report has been
prepared in conformity with the Code of Professional Ethics and Standards of Professional
Practice of the Appraisal Institute.
As of the date of this report, I am current on all continuing education required by the state
of Montana.
James Williamson
Montana Certified General Appraiser
REA-RAR-LIC-15327
Table of Contents 5
College Ave. Access Sage Appraisal + Strategy
TABLE OF CONTENTS
CERTIFICATION OF VALUE .................................................................................................................................................. 4
TABLE OF CONTENTS ......................................................................................................................................................... 5
ASSUMPTIONS AND LIMITING CONDITIONS ...................................................................................................................... 6
SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS .................................................................................................... 8
SUBJECT COUNTY PLAT MAP ......................................................................................................................................... 9
INTRODUCTION ................................................................................................................................................................ 12
SITE DESCRIPTION AND ANALYSIS ................................................................................................................................... 15
HIGHEST AND BEST USE ................................................................................................................................................... 17
HIGHEST AND BEST USE AS THOUGH VACANT ............................................................................................................ 17
LAND VALUATION ............................................................................................................................................................ 19
TRANSACTIONAL ADJUSTMENTS ................................................................................................................................. 31
PHYSICAL CHARACTERISTICS ADJUSTMENTS ............................................................................................................... 32
EXPOSURE TIME AND MARKETING PERIOD ..................................................................................................................... 40
ADDENDA ......................................................................................................................................................................... 41
DEFINITIONS ................................................................................................................................................................ 42
ENGAGEMENT LETTER ................................................................................................................................................. 47
QUALIFICATIONS OF APPRAISER ................................................................................................................................. 49
Assumptions and Limiting Conditions 6
College Ave. Access Sage Appraisal + Strategy
ASSUMPTIONS AND LIMITING CONDITIONS
The acceptance of this appraisal assignment and market study, and the completion of the appraisal
report submitted herewith are contingent upon the following general assumptions and limiting
conditions:
1) No responsibility is assumed for legal or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated. It is further assumed the
subject property has legal access unless otherwise noted.
2) The property is appraised free and clear of any or all liens or encumbrances unless
otherwise stated in this report.
3) Responsible ownership and competent property management are assumed, unless
otherwise stated.
4) The information furnished by others is believed to be reliable; however, no warranty is
given for its accuracy.
5) All engineering is assumed to be correct. Any plot plans and illustrative material in this
report are included only to assist the reader in visualizing the property.
6) It is assumed there are no hidden or unapparent conditions of the property, subsoil, or
structures that render it more or less valuable. No responsibility is assumed for such
conditions or for arranging for engineering studies that may be required to discover
them.
7) It is assumed there is full compliance with all applicable federal, state, and local
environmental regulations and laws unless otherwise stated.
8) It is assumed all applicable zoning and use regulations and restrictions have been
complied with, unless a non-conformity has been stated, defined, and considered.
9) It is assumed that all required licenses, certificates of occupancy or legislative or
administrative authority from any local, state, or national governmental or private entity
organization have been or can be obtained or renewed for any use on which the value
opinions contained in this report are based.
10) Any sketch may show approximate dimensions, and is included to assist the reader in
visualizing the property. Maps and exhibits found are provided for reader reference
purposes only. No guarantee as to accuracy is expressed or implied unless otherwise
stated.
Assumptions and Limiting Conditions 7
College Ave. Access Sage Appraisal + Strategy
11) It is assumed the utilization of the land and improvements is within the boundaries or
property lines of the property described, and that there is no encroachment or
trespasses unless otherwise stated.
12) The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any
comment by the appraiser that might suggest the possibility or presence of such
substances should not be taken as confirmation of the presence of hazardous waste
and/or toxic materials. Such determination would require investigation by a qualified
expert in the field of environmental assessment. The presence of substances such as
asbestos, urea-formaldehyde, foam insulation, or other potentially hazardous materials
may affect the value of the property. The appraiser’s value opinions are predicated on
the assumption there is no such material on or in the property that would cause a loss in
value, unless otherwise stated in this report. No responsibility is assumed for any
environmental conditions, or for any expertise or engineering knowledge required to
discover them. The appraiser’s descriptions and resulting comments are the result of the
routine observations made during the appraisal process.
13) The Americans with Disabilities Act (ADA) became effective January 26, 1992. I have not
made a specific compliance survey and analysis of this property to determine whether it
is in conformity with 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 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. Therefore, it is assumed that the property complies with all ADA
requirements.
14) Any proposed improvements are assumed to be completed in a good workmanlike
manner in accordance with the submitted plans and specifications.
15) The distribution of any or the total valuation of this report between land and
improvements applies under the stated program of utilization. The separate value
conclusions for land and buildings must not be used in conjunction with any other
appraisal, and are invalid if so used.
16) Possession of this report or a copy thereof, does not carry with it the right of publication.
It may not be used for any purpose by any person other than the party to whom it is
addressed, without the written consent of the appraiser, and in any event, only with the
properly written qualification and only in its entirety.
17) Neither all nor any part of the contents of this report (especially any conclusions as to
value, the identity of the appraiser, or the firm with which the appraisers are connected)
shall be disseminated to the public through advertising, public relations, news sales, or
other media without prior written consent and approval of the appraiser.
Summary of Important Facts and Conclusions 8
College Ave. Access Sage Appraisal + Strategy
SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
SUBJECT PROPERTY SUMMARY
The subject is a proposed 2,020 SF parcel of land that would be utilized for access when adjoined to
the .49-acre parcel of land located at 375 College Ave. The proposed land acquisition is shown in
the image below.
The parcel of land is not large enough to be considered a lot and the highest and best use of this
parcel is for access to the neighboring property as shown in the image.
Industry standards for appraising easement parcels is to estimate the impact of value to the selling
party or the receiving party. For this report the value will be appraised based on the value received
by the purchaser as the impacts to the selling party are minimal. The real estate market does
typically show a higher value for accessible property as opposed to land that is “landlocked.” The
methodology for valuing an easement with this perspective often uses a “before and after”
appraisal that considers the value of the property without the access. Then, an “after” appraisal
determines the property value with the access in place.
The land value for 375 College Ave will be estimated with a before and after valuation to determine
the value of the subject property.
Extraordinary Assumptions/Hypothetical Conditions:
The acceptance of this appraisal assignment and the completion of the appraisal report submitted
herewith, is contingent upon the extraordinary assumptions the access area is not encumbered by
additional easements or restrictions.
Summary of Important Facts and Conclusions 9
College Ave. Access Sage Appraisal + Strategy
Subject County Plat Map
Summary of Important Facts and Conclusions 10
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AERIAL PHOTOGRAPH
Property Address 375 College Ave, Kalispell, MT
Property Location East of downtown on College Ave
Property Owner City of Kalispell
Assessor’s Parcel Number 0977004
Census Tract Number 30-029-0012.02
Purpose of Appraisal To form an opinion of the As-Is Market Value
Intended Use of Appraisal Purchase and sale decisions
Intended Users Jeremy Peterson & City of Kalispell
Date of Valuation October 19, 2023
Property Inspection Date October 19, 2023
Date of Report October 19, 2023
Property Rights Appraised Fee simple
Summary of Important Facts and Conclusions 11
College Ave. Access Sage Appraisal + Strategy
Land Size 2,020 Sq Ft
Improvement Data None
Zoning R-3
Personal Property None
HIGHEST AND BEST USE
As Vacant Land Residential
As Improved Residential
Likely Buyer Owner/User
VALUE OPINION
MARKET VALUE OPINION PROPERTY RIGHTS
APPRAISED
EFFECTIVE
DATE OF VALUE
MARKET VALUE
OPINION
As-Is Market Value Fee simple October 19, 2023 $32,000
Current Use Vacant Land
Use Reflected in the Appraisal Vacant Land
Exposure Time The opinion of market value has been predicated on an
exposure time of three to twelve months.
Marketing Period
If the subject were marketed for sale as of the date of the
value opinion, the marketing period would be three to twelve
months assuming competent marketing with pricing
commensurate with the opinions of market value.
Extraordinary Assumptions/Hypothetical Conditions:
The acceptance of this appraisal assignment and the completion of the appraisal report submitted
herewith is contingent upon the extraordinary assumptions the access area is not encumbered by
additional easements or restrictions.
Introduction 12
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INTRODUCTION
Identification of the Property
The subject property consists of land located at 375 College Ave, Kalispell, MT 59901. The property
is further identified as Flathead County Assessor’s Parcel Number 0977004. The site is a 2,020 Sq Ft
lot.
The site and improvements are more thoroughly described in the “Site Description and Analysis”
and the “Improvements Description and Analysis” sections contained in this report.
Legal Description
Legal description not available for the proposed property.
Census Tract Number
30-029-0012.02
Purpose of Appraisal
To form an opinion of the As-Is Market Value of the subject property as of the effective date of the
appraisal.
Intended Use of the Appraisal
Purchase and sale decisions
Intended Users of the Appraisal
Jeremy Peterson & City of Kalispell
Effective Date of Valuation
October 19, 2023. This is the date the property was inspected and the date the photographs were
taken.
Date of Appraisal Report
The date of this appraisal report is October 19, 2023. The comparable sales and market data were
verified prior to the date of this report.
USPAP Competency Provision
This appraisal report is being prepared with the intention of complying with the most recent version
of the Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal
Foundation. I have the knowledge and the experience to complete this appraisal assignment. I
have appraised numerous properties with similar uses in NW Montana and I am qualified to
appraise the subject property. Please see my qualifications contained in the Addenda of this report
for additional information.
Introduction 13
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Current Ownership/Ownership History
According to information obtained from Flathead County public records the subject property is
currently under the ownership of the City of Kalispell.
There were no other sales or listings of the subject property that have occurred during the last three
years.
Scope of Appraisal
This is a Narrative Appraisal Report which is intended to comply with reporting requirements set
forth under Standards Rule 2-2 (a) of the Uniform Standards of Professional Appraisal Practice
(USPAP). As part of this appraisal, the appraiser has made a number of independent investigations
and analyses. The investigations undertaken, and the major data sources used follow.
Area/City and Neighborhood Analysis
Data pertaining to the market area and the neighborhood was provided by publications such as the
Daily Interlake and the Flathead Beacon, and information from the local Chamber of Commerce and
the Economic Development Authority of Western Montana. Information regarding population was
supplied by the State of Montana and Flathead County. Information about visitor volume, data
pertaining to the labor force, employment and unemployment was supplied by the State of
Montana. Information pertaining to taxable sales was provided by the Montana Department of
Revenue. Data pertaining to residential construction building permits was collected from the
governing jurisdictions. Additional neighborhood data was based upon a physical inspection of the
area.
Site Description and Analysis
On October 19, 2023, James Williamson physically inspected the subject property and the
surrounding area. Photographs of the property were also taken as of this date. Information
concerning utilities was collected by a physical inspection as well as contacting the individual utility
companies, when necessary. The City of Kalispell Planning and Development Department was
contacted to obtain zoning information on the property. Information pertaining to dimensions,
shape, and area was taken from the Flathead County Assessor’s Map. The description of analysis of
topography, drainage, soil conditions, and surrounding land uses was based upon a physical
inspection.
Improvements Description and Analysis
Data pertaining to construction details and specifications were obtained by physical inspection of
the subject improvements and interviews with the owner. Details regarding building size were
taken from on-site measurements.
Applied Methods of Valuation
All three methods of valuation, 1) cost approach, 2) the income approach and, 3) sales comparison
approach were considered in the valuation of the subject property. Please see the section entitled
“Method of Valuation,” contained later in the report, for a full description of the complete process
for each approach. Depending on market conditions and property type one or more approaches
Introduction 14
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may be omitted. The omission of one or more approaches does not affect the reliability of the value
conclusions. For this assignment:
Cost Approach: Not utilized for land valuations.
Income Approach: Not utilized for land valuations.
Sales Comparison Approach: Will be utilized.
Market Data Collection and Verification
Data pertaining to land sales was collected from sources including the local MLS, Title Agencies, and
discussions with brokers, owners, and developers. Information on land sales, listings, or offers was
verified with the parties involved in the transaction, including the grantor, grantee, broker, or other
knowledgeable parties, when possible. Verification of each sale is listed separately on each land
sale abstract.
Cost information was considered from the Marshall Valuation Service, published by Marshall & Swift
Publication Company.
Comparable rental data was based upon a physical inspection of properties in the neighborhood
and from sources including the local MLS, property managers, and brokers in the area. The rental
data was verified with the owner, property manager, or tenants of the property, when possible.
Verification of the data is contained on rental comparable abstracts later in the report. Vacancy
rate and collection loss information was based upon the surveyed properties and from information
published through realty offices informed about the Flathead Valley. Information pertaining to
expenses and overall capitalization rates, was also provided from rental properties, surveys of
sales/leasing agents, or improved sales contained within this report.
Improved sales data was collected through various sources including County records, MLS, First
American Title, or from brokers, owners, and developers. The information was verified with parties
involved in the transaction including the grantor, grantee, broker, or other knowledgeable parties,
when possible. Verification of each sale is listed separately on each improved sale abstract
contained later in the report.
Site Description and Analysis 15
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SITE DESCRIPTION AND ANALYSIS
Location
The property has a street address of 375 College Ave, Kalispell, MT 59901. The subject may be
further identified as Flathead County Assessor’s Parcel Number 0977004. The property is in Census
Tract Number 30-029-0012.02.
Dimensions, Shape, and Area
The subject has a rectangular shape and contains a land area of approximately 2,020 Sq Ft.
The reader is referred to the assessor’s parcel map and the aerial photograph on the following
pages for a visual description of the subject site.
Topography and Drainage
The subject parcel is generally at grade with the adjoining streets and properties. The site is typical
of other sites in the area, and there are no adverse site conditions noted at the time of inspection.
According to the Federal Emergency Management Agency (FEMA) flood insurance rate map, the
property is categorized as being in Flood Zone X, Map 300269C1810J, Eff 11/4/15. Flood Zone X is
depicted on the FEMA website as being in an area of minimal flood hazard.
The Flood Disaster Protection Act of 1973, and the National Flood Insurance Reform Act of 1994,
have made the purchase of flood insurance mandatory for federally backed mortgages on structures
located in special flood hazard areas. Because the subject is not within an area identified as a 100-
year flood zone, flood insurance is not required.
Waterfront Amenity
None
View Amenity
Urban
Adjacent Property Owners
Public
Street Improvements and Accessibility
The subject is located on 375 College Ave which is a two-lane road that extends in a roughly
north/south direction. There are minimal off-site improvements on the street.
Site Description and Analysis 16
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Utilities
Public utility services are available to the site. They are provided by the following agencies:
UTILITY AGENCY
Electricity Flathead Electric Co-Op
Water City of Kalispell
Sanitation City of Kalispell
Telephone CenturyLink
Natural Gas Northern Energy
Solid Waste Disposal Flathead County
Nuisances, Hazards, and Surrounding Land Uses
The subject site is located within a neighborhood that has a predominantly residential use. None of
the surrounding properties appear to be suspect relative to toxic or hazardous materials.
The value opinions are predicated upon the assumption there are no such environmental conditions
on or in the property that would cause a loss in value. No responsibility is assumed for any such
environmental conditions, or for any expertise or engineering knowledge required to discover them.
Easements and Encroachments
Typical road and utility easements are assumed to exist. No adverse encroachments were noted.
Unless otherwise noted, it is assumed the subject property has legal access.
Zoning
The subject property is zoned R-3 under the jurisdiction of the City of Kalispell. This is a residential
zoning district.
Land Use
There is no additional zoning or land use overlay district relating to the subject property.
CC&R’s
None.
HOA
None
Highest and Best Use 17
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HIGHEST AND BEST USE
Highest and Best (HBU)
Highest and best use is defined as follows:
“The reasonably probable use of property that results in the highest value. The four
criteria that the highest and best use must meet are legal permissibility, physical
possibility, financial feasibility, and maximum productivity.”
Source: The Dictionary of Real Estate Appraisal Sixth Edition (Chicago: Appraisal Institute, 2010),
Page 109.
The highest and best use of a property is an economic study focusing on the four criteria. The
determination of a property’s highest and best use is the basis that provides the valuation
framework upon which comparable market data is selected. Such data for improved properties may
include cost, income and expense data, and improved sales pertaining to the property’s concluded
best use.
Highest and best use of the property as though vacant, is considered separately from the highest
and best use of the property as improved. The site is valued as though vacant, and available for
development to its highest and best use even if the property’s existing improvements do not
represent the highest and best use of the site. Highest and best use of the land as though vacant
indicates only how the land should be used if it were vacant.
Highest and Best Use as Though Vacant
Highest and best use of land or site as though vacant is defined as:
“Among all reasonable, alternative uses, the use that yields the highest present land
value, after payments are made for labor, capital, and coordination. The use of a
property based on the assumption that the parcel of land is vacant or can be made
vacant by demolishing any improvements.”
Source: The Dictionary of Real Estate Appraisal, Fifth Edition, (Chicago: Appraisal Institute, 2010),
Page 94.
Legally Permissible
The subject property is zoned R-3, under the jurisdiction of the City of Kalispell. This zoning
designation allows for largely residential improvements. The parcel is zoned consistent with the
nature of the immediate area, which has a variety of residential (single family and multi-family). A
complete list of permitted uses is included in the “Site Description and Analysis” section of the
report.
Highest and Best Use 18
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Physically Possible
This analysis determines which legally permissible use is physically possible on the subject property.
The physical characteristics of the site that affect its possible use include but are not limited to its
location, street frontage, size, shape, street access, availability of utilities, easements,
encroachments, soils and subsoils, and topography.
Based on a physical inspection of the subject property, the site appears to be in an area that has
stable soil and subsoils, which provide suitable support for typical commercial structures. The soil
and subsoil conditions are assumed to be typical of the area, and do not present limitations or
problems regarding development.
The property is not located within a designated flood hazard area and there are no environmental
hazards assumed to exist near the subject. There are no apparent adverse conditions that would
restrict development of the property. Size of the parcel can be a limiting factor in the highest and
best use of a property, and may preclude many legally permissible uses. In summary, the site
appears adequate for development of any legally permissible use, where size of the parcel is not a
factor.
Financially Feasible
This HBU analysis determines which of the legally permissible and physically possible uses are
financially feasible. The subject neighborhood is characterized by multi-family and single-family
residential properties. The subject property is well located within relatively easy walking distance to
amenities in Kalispell.
In summary, the financially feasible use of the subject site would include only residential uses.
Maximally Productive
Finally, the maximally productive use of the site determines which one of the financially feasible
uses will result in the highest present value. The maximally productive use of the site as though
vacant is for a residential use.
Conclusion
In conclusion, the highest and best use of the site as though vacant would be for access to the
neighboring properties due to the size of the site no improvements would be placed on the
property.
Land Valuation 19
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LAND VALUATION
The sales comparison approach is the most common technique for valuing vacant land. It is used to
form an opinion of the market value of the subject site as though vacant. To apply this method,
sales of similar parcels of land are analyzed, compared, and adjusted to provide a value indication.
The sales are then adjusted for dissimilarities between them and the subject. Elements considered
include property rights, legal encumbrances, financing terms, conditions of sale (motivation),
market conditions (sale date), location, physical characteristics, available utilities, zoning, and
highest and best use. The sales used in the valuation are the most comparable to the subject as of
the date of valuation.
In the price/unit method, the data is analyzed, and an appropriate unit of comparison is selected
(price/square foot, acre, front foot, dwelling unit, etc.).
• Transactional adjustments are applied to the comparables for: property rights, financing,
conditions of sale, expenditures immediately after purchase, and market conditions.
• The comparables are analyzed to determine market sensitivity to various physical
characteristics.
• They are then arrayed in a table which brackets the unit market value of the subject.
• The range of values is reconciled to a unit market value.
• The unit of value is then multiplied by the size of the subject property to provide an
indication of market value.
For this assignment, the appropriate unit of comparison is $/SF.
Sales of vacant land are summarized below, followed by a map and complete abstracts.
LAND SALES SUMMARY
Comparable Sales Summary
ID Address Sale Date SF Zoning Sale Price $/SF
1 54 Sunset DR, Kalispell 10/16/23 21,344 R-2 $139,000 $7
2 418 Maple DR, Kalispell 01/31/23 17,860 R-1 $175,000 $10
3 NHN 8th Ave W, Kalispell 09/16/22 6,970 R-4 $155,000 $22
4 7 Muskrat DR, Kalispell 06/21/23 9,148 R-4 $125,000 $14
5 1331 7th ST W, Kalispell 07/14/23 3,049 R-4 $90,000 $30
Land Valuation 20
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Land Sales Map
Subject
Land Valuation 21
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COMPARABLE LAND SALE #1
Land Valuation 22
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Land Valuation 23
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COMPARABLE LAND SALE #2
Land Valuation 24
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Land Valuation 25
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COMPARABLE LAND SALE #3
Land Valuation 26
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Land Valuation 27
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COMPARABLE LAND SALE #4
Land Valuation 28
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Land Valuation 29
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COMPARABLE LAND SALE #5
Land Valuation 30
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Land Valuation 31
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TRANSACTIONAL ADJUSTMENTS
The first step in the sales comparison analysis is to analyze and make transactional adjustments to
each comparable sale. Those transactional adjustments are: property rights, financing, sale
conditions, expenditures immediately after purchase, and market conditions (time). A brief
description of the transactional adjustments is explained below. It is noted that these adjustments
are typically made in the order presented below:
1) Property Rights: The comparables are adjusted for impacts that leased fee, fee simple or
leasehold impacts to the sale price. No adjustments are needed as all the sales are fee
simple estate.
2) Financing: The comparables are then adjusted for impacts that unusual or non-market
financing has on the transaction. Agents for the sales confirmed that all the sales were
cash transactions. No adjustments are needed.
3) Condition of Sale: The comparables are then adjusted for non-market sale conditions
that affected the sale price. Sale #1 is adjusted downward 8% for the listing status to
account for seller concessions and buyer negotiations.
4) Expenditures Immediately After Purchase: The comparables are then adjusted for the
impact that any additional investment (i.e. curing deferred maintenance) required to
make a property salable. No adjustments are needed.
5) Market Conditions: The comparables are then adjusted for changes to market
conditions that have occurred between the sale date of each comparable and the
effective date of the appraisal. No adjustments are needed.
Sale Price After Transactional Adjustments
The next step in the analysis is to arrive at an adjusted sale price which factors non-market
influences for: property rights, financing, conditions of sale, expenditures immediately after
purchase, and market conditions.
The adjustments in the table below reflect the adjustments discussed on the prior pages and in the
attached sale abstracts. The adjustments are cascading.
Sale Price After Transactional Adjustments
Sale # Address Sale Price Prop Rights Financing Sale Cond. Expend Time Adj SP
1 54 Sunset DR $139,000 $0 $0 ($11,120) $0 $64 $127,944
2 418 Maple DR $175,000 $0 $0 $0 $0 $7,577 $182,577
3 NHN 8th Ave W $155,000 $0 $0 $0 $0 $10,234 $165,234
4 7 Muskrat DR $125,000 $0 $0 $0 $0 $2,488 $127,488
5 1331 7th ST W $90,000 $0 $0 $0 $0 $1,448 $91,448
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PHYSICAL CHARACTERISTICS ADJUSTMENTS
The physical characteristic adjustments are made to the unit of comparison, in this case the
adjustments will be made to each comparables $/Acre. A paired sales analysis of the characteristics
shown below is analyzed for the comparable properties to determine the most desirable
characteristic and the applicable adjustment. A brief description of the physical characteristic’s
adjustments is explained below:
1) Economy of Scale: Market participants typically pay more per unit for smaller properties
over larger properties. To adjust the unit of comparison the smaller properties are
adjusted downward, and the larger properties are adjusted upward.
1) Zoning: Zoning is an important aspect for prospective buyers. The zoning regulations
limit properties use. Zoning adjustments are based on paired sales analysis to determine
which zoning designation is more desirable than others.
2) Location: Property location has a substantial impact on the marketability of a property.
Location aspects such as neighboring properties, access roads, and aspect are all
considered in the location adjustment.
3) Property Access: Market participants typically pay more for properties with direct
access to the property. Additional sales were considered to determine the adjustment
for access to the property. This adjustment will be updated for the property value after
acquiring the additional parcel for access.
4) Flood Zone: Properties within a flood zone are typically harder to develop and are less
desirable than properties located outside of a flood zone. Properties with flood zone
areas are adjusted upward.
The following table highlights the characteristics of the comparables and the adjustment grid for the
property characteristics.
Land Valuation 33
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Physical Characteristics Adjustments
Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5
Item 375 College Ave 54
Sunset DR
418
Maple DR
NHN
8th Ave W
7
Muskrat DR
1331
7th ST W
Sq. Ft. 21,344 21,344 17,860 6,970 9,148 3,049
Sq. Ft. Adjustments $2.50 $0.00 ($0.49) ($5.16) ($3.33) ($15.00)
Zoning R-3 R-2 R-1 R-4 R-4 R-4
Zoning Adjustments % $0.30 $0.51 $0 $0 $0
Location East Evergreen Evergreen Downtown South Downtown
Location Adjustments % $0.90 $1.53 ($2.37) $1.12 ($3.00)
Access Limited Street Street Street Street Street
Access Adjustments % ($0.60) ($1.02) ($2.37) ($1.39) ($3.00)
Flood Zone No Yes No No No No
Flood Zone Adjustments % $0.60 $0 $0 $0 $0
Sale Price $127,944 $182,577 $165,234 $127,488 $91,448
Adj. $/SF $5.99 $10.22 $23.71 $13.94 $29.99
Total Adjustments $1.20 $0.53 -$9.90 -$3.61 -$21.00
Final Adjusted $/SF $7.19 $10.75 $13.81 $10.33 $8.99
Final Adjusted Sales Price $153,423.55 $192,065.62 $96,262.37 $94,475.19 $27,418.41
Land Valuation 34
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Summary
The table below lists each of the units of comparison that were analyzed. If the overall analysis
indicates the comparable is inferior to the subject property there will be a (+), a (0) if the
comparable is similar to the subject, or a (-) if the comparable is superior to the subject.
Summary of Results of Sales Comparison Analysis
Sale 1 Sale 2 Sale 3 Sale 4 Sale 5
Item 54
Sunset DR
418
Maple DR
NHN
8th Ave W
7
Muskrat DR
1331
7th ST W
Economy of Scale 0 - - - -
Zoning + + 0 0 0
Location + + - + -
Access - - - - -
Flood Zone + 0 0 0 0
Conclusion
The comparables adjusted unit value after all transactional and physical characteristic adjustments
have been considered is shown in the table below.
Adjusted Unit Value Summary
Sale # Address Adj. Unit Value Net Adjustment
1 54 Sunset DR $7 20%
2 418 Maple DR $11 5%
3 NHN 8th Ave W $14 -42%
4 7 Muskrat DR $10 -26%
5 1331 7th ST W $9 -70%
Land Valuation 35
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Reconciliation
The comparables are each weighted with the most similar properties given the greatest weight to
the least similar properties with the smallest weight. The total weight of all the comparables is
100%, the sum of all the weights is considered the unit value for the subject property. The weight
given to each comparable is multiplied by that comparables unit value. The contributory value of all
the comparables is then combined to determine the unit value of the subject property. A summary
of the sales comparison reconciliation is shown in the table below.
Weighted Reconciliation with Access
Sale # Address Unit Value Weight Contributory Value
1 54 Sunset DR $7.19 25% $1.80
2 418 Maple DR $10.75 25% $2.69
3 NHN 8th Ave W $13.81 15% $2.07
4 7 Muskrat DR $10.33 20% $2.07
5 1331 7th ST W $8.99 15% $1.35
6 NHN Woodland Ave $2.05 0% $0.00
Total 100% $9.97
Property Access Adjustments
Market research of similar properties indicate that properties with limited access are less desirable
than properties with direct street access. In the search for comparable properties with limited
access due to location, topography, and shape were researched to determine the adjustment
amount necessary for the additional access. The following sale was utilized in a paired sales analysis
to determine the appropriate adjustment for direct and indirect access.
Land Valuation 36
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LIMITED ACCESS SALE
Land Valuation 37
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Land Valuation 38
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Market Value Opinion
The property was adjusted for the indirect access based on the paired sales analysis, the same
comparables were then utilized to determine the value of the property with direct street access.
The adjustments for the property with the direct access are shown in the table below.
Physical Characteristics Adjustments
Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5
Item 375
College Ave 54
Sunset DR
418
Maple DR
NHN
8th Ave W
7
Muskrat DR
1331
7th ST W
Economy of Scale 21,344 21,344 17,860 6,970 9,148 3,049
Economy of Scale Adjustments $2.50 $0.00 ($0.49) ($5.16) ($3.33) ($15.00)
Zoning R-3 R-2 R-1 R-4 R-4 R-4
Zoning Adjustments % $0.30 $0.51 $0 $0 $0
Location East Evergreen Evergreen Downtown South Downtown
Location Adjustments % $0.90 $1.53 ($2.37) $1.12 ($3.00)
Access Street Street Street Street Street Street
Access Adjustments % $0.00 $0.00 $0.00 $0.00 $0.00
Flood Zone No Yes No No No No
Flood Zone Adjustments % $0.60 $0 $0 $0 $0
Sale Price $127,944 $182,577 $165,234 $127,488 $91,448
Adj. $/SF $5.99 $10.22 $23.71 $13.94 $29.99
Total Adjustments $1.80 $1.56 -$7.53 -$2.22 -$18.00
Final Adjusted $/SF $7.79 $11.78 $16.18 $11.72 $11.99
Final Adjusted Sales Price $166,208.84 $210,318.13 $112,787.29 $107,226.95 $36,562.96
The reconciled unit value with direct access is shown in the table below.
Weighted Reconciliation With Access
Sale # Address Unit Value Weight Contributory Value
1 54 Sunset DR $7.79 25% $1.95
2 418 Maple DR $11.78 25% $2.94
3 NHN 8th Ave W $16.18 15% $2.43
4 7 Muskrat DR $11.72 20% $2.34
5 1331 7th ST W $11.99 15% $1.80
6 NHN Woodland Ave $2.05 0% $0.00
Total 100% $11.46
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The property has been appraised with direct access and without direct access. When these values
are applied to the subject site the value increase for the effected property is shown in the table
below.
Market Value Opinion
Unit Market Value x # Units Unit = Market Value
$9.97 Limited Access 21,344 SF = $212,804
$11.46 Direct Access 21,344 SF = $244,607
Value Difference $31,803
Rounded $32,000
The access area being acquired is 2,020 SF with a value of $32,000 this equates to $15.85/SF. Based
on the unit value of the comparable properties and the economy of scale of these properties this is
a reasonable value for the access lot.
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EXPOSURE TIME AND MARKETING PERIOD
Within the preceding sales comparison approach, the marketing periods of the individual
comparable sales were illustrated. The marketing period for the sales ranged from less than three
months (Sale 4) to over eighteen months (Sale 1).
Exposure time is the length of time that the property would have been exposed on the market to
achieve the opinion of market value. The exposure time is based upon comparable sales within this
report, as well as discussions with real estate brokers and developers. The most reasonable
indication of suitable exposure time is three to twelve months.
The marketing period of the subject property has been estimated at three to twelve months. The
marketing period is the length of time that the property would need to be put on the market to
achieve the opinion of market value of the subject property. The marketing period has been based
upon comparable sales, and takes into consideration the future supply and similar property types in
the subject’s market area. It also assumes prudent marketing and an asking price (list price) similar
to the market value opinion.
Definitions 41
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ADDENDA
Definitions 42
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Definitions
Definitions 43
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Definition of Extraordinary Assumption
“An assumption, directly related to a specific assignment, as of the effective date of the
appraisal assignment results, which, if found to be false, could alter the appraiser’s opinions
or conclusions.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
Page 83.
Definition of Hypothetical Condition
1. “A condition that is presumed to be true when it is known to be false.
2. A condition directly related to a specific assignment, which is contrary to what is known
by the appraiser to exist on the effective date of the assignment results, but is used for
the purposes of analysis.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
Page 113.
Definition of Market Value
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
own best interests;
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 special
or creative financing or sales concessions granted by anyone associated with the sale.
Source: 12 C.F.R. Part 34.42(g); date 1 January 2005.
Definition of As-Is Market Value
“The estimate of the market value of real property in its current physical condition, use and
zoning as of the appraisal date.”
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Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
Page 13.
Definition of Fee Simple Ownership
“Absolute ownership unencumbered by any other interest or estate, subject only to the
limitations imposed by the governmental powers of taxation, eminent domain, police power,
and escheat.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 90.
Definition of Exposure Time
“The time a property remains on the market. 2. The estimated length of time the property
interest being appraised would have been offered on the market prior to the hypothetical
consummation of a sale at market value on the effective date of the appraisal.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 83.
Definition of External Obsolescence
“A type of depreciation; a diminution in value caused by negative external influences and
generally incurable on the part of the owner, landlord, or tenant. The external influence
may be either temporary or permanent.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 83.
Definition of Final Reconciliation
“The last phase in the development of a value opinion in which two or more value
indications derived from market data are resolved into a final value opinion, which may be
either a final range of value, in relation to a benchmark, or a single point estimate.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 91.
Definition of Financial Feasibility
“1) One of the four criteria of highest and best use. For a land use to be considered
financially feasible, the value of the land use must exceed its cost. 2) The capability of a
physically possible and legal use of property to produce a positive return to the land after
considering risk and all costs to create and maintain the use.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 92.
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Definition of Functional Obsolescence
“The impairment of functional capacity of improvements according to market tastes and
standards.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 97.
Definition of Leased Fee Interest
“The ownership interest held by the lessor, which includes the right to receive the contract
rent specified in the lease plus the reversionary right when the lease expires.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 128.
Definition of Legal Permissibility
“One of the four criteria the highest and best use of a property must meet; a property use
that is either currently allowed or most probably allowable under zoning codes, building
codes, environmental regulations, and other applicable laws and regulations that govern
land use.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 129.
Definition of Marketing Time
“An opinion of the amount of time it might take to sell a real or personal property interest at
the concluded market value level during the period immediately after the effective date of
an appraisal. Marketing time differs from exposure time, which is always presumed to
precede the effective date of an appraisal.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 140.
Definition of Maximum Productivity
“One of the four criteria the highest and best use of a property must meet. To achieve
maximum productivity, a specific land use must yield the highest value of all the physically
possible, legally permissible and financially feasible possible uses.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 144.
Definition of Physical Deterioration
“The wear and tear that begins when a building is completed and placed into service.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 170.
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Definition of Physical Possibility
“One of the criteria that the highest and best use of a property must meet. For a land use to
be considered physically possible, the parcel of land must be able to accommodate the
construction of any building that would be a candidate for the ideal improvement.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 171.
Definition of Reconciliation
“A phase of a valuation assignment in which two or more value indications are processed
into a value opinion, which may be a range of value, a single point estimate, or a reference
to a benchmark value.”
Source: The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 190.
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ENGAGEMENT LETTER
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QUALIFICATIONS OF APPRAISER
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JAMES WILLIAMSON
586 Stoneridge DR, Kalispell, MT 59901 · 406-270-2121
james@sage-appraisal.com
MT Appraiser License #15327
Experience includes appraising complex commercial properties in Western Montana. Property
types include: office, industrial, retail, medical, mixed use, multi-family, subdivisions, vacant
land, agricultural properties, ranches, and luxury lake/river front estates.
EXPERIENCE
APRIL 2020 – PRESENT
APPRAISER, SAGE APPRAISAL + STRATEGY
NOVEMBER 2015 – PRESENT
REAL ESTATE - DEVELOPMENT & SALES, SAGE APPRAISAL + STRATEGY
SEPTEMBER 2012 – NOVEMBER 2015
PRODUCT DEVELOPER, AON (NATIONAL FLOOD SERVICES)
EDUCATION
APPRAISAL EDUCATION
• Basic Appraisal Principals
• Basic Appraisal Procedures
• 15 HR National USPAP
• Residential Market Analysis & Highest Best Use
• Residential Appraiser Site Valuation & Cost Approach
• Residential Sales Comparison & Income Approach
• Residential Report Writing & Case Studies
• Statistics, Modeling & Finance
• General Appraiser Market Analysis Highest & Best Use
• General Appraiser Sales Comparison Approach
• Appraisal Subject Matter Electives
• Advanced Residential Applications & Case Studies
BS – BUSINESS ADMIN / MANAGEMENT, BLACK HILLS STATE UNIVERSITY
MAY 2013
MT SUPERVISING BROKER LICENSE #62214
NOVEMBER 2018
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