Loading...
I3. Res. 6202, Peterson, Heritage Park Easement RequestCITY OF KALISPELL Development Services Department 201 ls` Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/plannine REPORT TO: Doug Russell, City Manager FROM: PJ Sorensen, Senior Planner SUBJECT: Jeremy Peterson — Heritage Park Easement Request MEETING DATE: June 17, 2024 BACKGROUND: In November 2023, the Council held a work session regarding property at 375 College Avenue adjacent to Heritage Park, which is a city owned park. At the time, it was owned by David and Sharon Young, and has since been purchased by Jeremy Peterson. There is a trailer and old storage building on the 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 entered into a contract with the Youngs to purchase it. He has also reached out to the city regarding access, which was the primary topic at the November work session. 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. WW* 7.5 (k), 1 'L-R-LE-61' A RES01_1--FION -' 101.00, _;- WAR_ AQUISIMN w�l f E�i Sf ftVICE xrs .� o pRrwos= arrwa ace SFWF a s"vrc View looking west into park: View looking east from park: 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. Any use of the property would need to be compliant with any applicable zoning and subdivision regulations. At the work session, the Council was amenable to move forward with the proposed sale of the easement, provided that 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. Since that time, he has prepared the necessary documents and is requesting that the City move forward with the sale of the easement. Consistent with the Council direction at the work session, any remaining costs associated with the sale should also be paid by Mr. Peterson. RECOMMENDATION: It is recommended that the Kalispell City Council direct the City Manager to enter into an agreement for the sale of the easement. FISCAL EFFECTS: There are no anticipated fiscal impacts at this time. ALTERNATIVES: Deny the request. ATTACHMENTS: Resolution 6202 Proposed Easement Appraisal of property c: Aimee Brunckhorst, Kalispell City Clerk RESOLUTION NO. 6202 A RESOLUTION APPROVING THE SALE OF AN EASEMENT ON CITY OWNED PROPERTY IN HERITAGE PARK IN ORDER TO ALLOW THE DEVELOPMENT OF A LAND -LOCKED PARCEL OF LAND LOCATED AT 375 COLLEGE AVENUE. WHEREAS, the City of Kalispell owns Heritage Park, which is adjacent to 375 College Avenue, a property recently purchased by Jeremy Peterson; and WHEREAS, wishing to develop the property, Peterson met with city staff regarding his lack of access to the property, which does not have any legal connection to College Avenue; and WHEREAS, 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; and WHEREAS, an appraisal established the value of the property at $32,000; and WHEREAS, Peterson has agreed to purchase a non-exclusive access and utility easement, as illustrated on Exhibit A attached hereto, for $32,000; and WHEREAS, the City Council finds that the city will receive fair market compensation for the easement in the proposed real estate transaction and that it is in the best interests of the city to enter into such agreement. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS FOLLOWS: SECTION 1. The City Manager is hereby authorized, on behalf of the city, to enter into an easement agreement, attached hereto as Exhibit B, to affect the real estate transaction described in the recitals above and as illustrated on Exhibit A. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 17TH DAY OF JUNE, 2024. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk EXHIBIT A i EX ' EXHIBIT B When recorded return to: Brian Joos, Esq. Gersh, Simpson & Joos, PLLP 121 Wisconsin Avenue Whitefish, MT 59937 INGRESS, EGRESS, AND UTILITY EASEMENT THIS EASEMENT is granted by the City of Kalispell, referred to as "Grantor;" and is granted to Jeremy Peterson, hereinafter referred to as "Grantee." WITNESSETH WHEREAS, Grantor is the owner of record of the real property situated in Flathead County, Montana more particularly described as follows: Parcel A: A tract of lard in thO MhMh of Section 17. Toanship 20 North, Range 21 West, ll.p.li., Flathead Munty, Wntana, dazaribacl as follows: na-ginning at a point on the Basterly line of Vbcdlanrl Avanue, Flatioad anunty, Montana, %ehich point is South 310 03' East a distance of 95-7 feet from the m; st southerly corn---r or. lila^S; 'h" of Kmlisp&U TYthis Ccnpany'`s� Md1tinn Ito. 22 to i:alispol], tntana: thence from is I nt of bNjkvtin9;-due East a distance of 232-3 feet:; tor4e dine Ncwth a distance of 62.2 feet; thence due Fast a distance of 84-3 .feet, thence clue Scuth a distmxo"og 180 feet; therce due - Vest ad i,stance of 240 feat, rams or less to the Easterly line of said NcoalarA Avenue; theme along the ktisterly line of said ikcdland Avenue North 31` 03' list a WALance of 213.85 Ave-t acre or less to the iblnt of 1kxj1n iirxj. Excepting therefrom Public Roads and Rights of Nay and all Easements of record. Parcel B: A tract 6f 1=0 in the SFASNN of Section 8 and the NEW* of Section 17, in Tamshfp 28 tbrth, pATKp 21 Itest, H.P.11_, nathead Oasnty, Mcntane, ceseribW as folluost BeginniA at the cast saaukherly warner of said Block ; thence 'A"the a al+s;g tha . . 'rasterly boundary of said D1oc3,- me Mrth 2. 31' m-st a distanm of 255.9 feet; thence North 406 57' East a distance of Z5 Feat; thence South 50. 30' East a distaaee of 82.5 feet; thcnm _ South 2��7}' 40' :fast a distance Of 10.6 feet; theme South 12. 20' East a diubmw a of 41.6 feet; thence South 16. 48' East a dLstanec of 178.e feet; thence: duo East a dLstance of 159.7 feet; thmm due South a distance of 82_2 feet; thence due thowst a dLstance of 232.3 feet to the Easterly line of t;oedlnn3 Avon=; thence ll along said Eastrrly line trszth 31` 03' ilest a distance of 95.7 feet core or l= to the Puce of Begin- ning. WHEREAS, Grantee is the owner of record of the real property situated in Flathead County, Montana more particularly described as follows: Parcel B of Certificate of Survey No. 9379, located in the Southeast Quarter of the Southwest Quarter of Section 8, and the Northeast Quarter of the Northwest Quarter of Section 17, Township 28 North, Range 21 West, P.M.M., Flathead County, Montana. NOW, THEREFORE, in consideration of $32,000.00 paid by Grantee to Grantor, which the parties agree to be valuable and sufficient consideration, and the receipt of which is hereby acknowledged, the Grantor hereby grants and conveys to Grantee an easement pursuant to and subject to the following terms: 1. Grantee shall have a non-exclusive easement for ingress, egress, and utilities over and across that area of Grantor's above -described property, approximately 102.48 feet by 20 feet in size, as labeled "New Access & Utility Easement" on Exhibit A attached hereto. 2. The easement granted herein is intended to serve the Grantee's property described above as used to the fullest extent permitted under the terms of City of Kalispell and/or Flathead County zoning applicable to the Grantee's property. 3. The easement granted herein is for the benefit of Parcel B of COS 9379 only. 4. Any improvements in the easement area must be constructed and maintained to City of Kalispell standards. 5. The easement area may not be gated or otherwise obstructed. 6. All of the real property described above shall be held, sold, and conveyed subject to the terms of this Ingress, Egress, and Utility Easement, which shall run with said real property and be binding on all parties having any right, title or interest therein or in any part thereof, as well as their respective heirs, personal representatives, successors and assigns, and shall inure to the benefit of and burden of each owner thereof. 7. In the event of a dispute arising under this Ingress, Egress, and Utility Easement, the prevailing party shall have the right to collect from the other party his/her/its/their costs and attorney's fees incurred in enforcing this Ingress, Egress, and Utility Easement. The proper venue for any such dispute shall be Flathead County, Montana, and the governing laws shall be those of the State of Montana. 8. This Ingress, Egress, and Utility Easement may be modified or terminated only by a writing signed by both Grantor and Grantee, or their heirs, successors, or assigns as the case may be. 9. Grantors are not responsible for any easement maintenance or improvements for the road governed by this Ingress, Egress, and Utility Easement. [SIGNATURE PAGES TO FOLLOW] GRANTOR: CITY OF KALISPELL By: As Its: STATE OF COUNTY OF ) ss. The foregoing instrument was acknowledged before me this 2024 by , as of the City of Kalispell. Printed Name: Notary Public for the State/Province of Residing at , day of GRANTEE: Jeremy Peterson STATE OF ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 20249 by Jeremy Peterson. Printed Name: Notary Public for the State/Province of Residing at , 1 A NARRATIVE APPRAISAL REPORT OF College Ave. Access 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 aL 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. 1 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 AssumptionsMypotheticnl 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 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 TABLE OF CONTENTS CERTIFICATIONOF VALUE.................................................................................................................................................. 4 TABLEOF CONTENTS......................................................................................................................................................... 5 ASSUMPTIONS AND LIMITING CONDITIONS...................................................................................................................... 6 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS.................................................................................................... 8 SUBJECTCOUNTY PLAT MAP......................................................................................................................................... 9 INTRODUCTION................................................................................................................................................................ 12 SITE DESCRIPTION AND ANALYSIS................................................................................................................................... 15 HIGHESTAND BEST USE................................................................................................................................................... 17 HIGHEST AND BEST USE AS THOUGH VACANT............................................................................................................17 LANDVALUATION............................................................................................................................................................ 19 TRANSACTIONAL ADJUSTMENTS................................................................................................................................. 31 PHYSICAL CHARACTERISTICS ADJUSTMENTS............................................................................................................... 32 EXPOSURE TIME AND MARKETING PERIOD..................................................................................................................... 40 ADDENDA......................................................................................................................................................................... 41 DEFINITIONS................................................................................................................................................................ 42 ENGAGEMENTLETTER................................................................................................................................................. 47 QUALIFICATIONSOFAPPRAISER................................................................................................................................. 49 College Ave. Access Sage Appraisal + Strategy Assumptions and Limiting Conditions 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. College Ave. Access Sage Appraisal + Strategy Assumptions and Limiting Conditions 7 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. 1 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. College Ave. Access Sage Appraisal + Strategy Summary of Important Facts and Conclusions 8 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. 75_60' i 20,0r,' GA A OF PFY.,a" 101-0 PROP pp AquisjnoN WA,T�RVICE d ® ]EXIST (2,020 Sq. Ft.) !! OPOSEa � PUBLIC-STRE! SEUWER SERVECE I 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. College Ave. Access Sage Appraisal + Strategy Summary of Important Facts and Conclusions N Subject County Plat Map LEGEND : N 71'23'Do"W o av�ro Q=5/8"RE_BAR b CAP 14.73 / MRK'D WHEELER 394ES t u PARCEL C t 6=$URVEY POINT FOUND AS NOTED 0,28 AC. �° 18.69 .�A\ O WEST BNORY, - �.• PARCEL -"A" 0,55 AC. 4 a I � EILK...A., 7/ y p �s• ma's. •• IDO. NO, 2 O" IC _ 404 ` SI . ��aQ•a�yl 'R_?F — �{ h�A 'TR_82 — C.O.S. 6350 CITY OF KALISPELL i I 1� QQ 0 4h 74 , , M� I I TR_29C -- OpP ;e o SOJTHERLY COR` I "A" �\ ' he 4r BLOCK ---rl.t 709-404 \ WE4T C> c7Tr 3 C.6G' YEW �p _BNORY,. ? bo 5 t 4" Fv 1 w� a� 4P f RSPIKE FD. QG1.R. , �- _ J r 20 R040 EASEMENT LEAST— �^ q, I.-_. __ -- --- I RE _BAR a CAP FC. MRKA7. 394ES n v k +Ij 3/4 aWE FC ... � z �5119 REBAR FC, NCI 5. R W. CD. 1 'i wILLIS ADD. "B'J 5, PARCEL W a W w J J 0 cert.er, xll lJ�,U4 feet au. JJ Lett, nest ,).6V thenrse w -(1 n truer as Jeot10t1 17. pclat celn_ .est 75.U,, Lher.Ce i4 j5 10,;,0 feet, cantalnlne U .."V.: L " C x L T&at o 1 all in 1 :'.a i... corner, fear, to the NecC 1U0.6U to a point 170.UU 1'ett parcel "n" that this that 1 as concltlons of land i 76-3-eul ai � Tr to 01+ U UU.v TY ur' U1 this to Lne yer and acanow College Ave. Access Sage Appraisal + Strategy Summary of Important Facts and Conclusions 10 Pri AERIAL PHOTOGRAPH 6 �. i K51 Y ^fii 71rs. ' 73 Ate' y 1 B,7�3J 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 College Ave. Access Sage Appraisal + Strategy Summary of Important Facts and Conclusions 11 Land Size 2,020 Scl 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 EFFECTIVE MARKET VALUE APPRAISED DATE OF 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. College Ave. Access Sage Appraisal + Strategy Introduction 12 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. College Ave. Access Sage Appraisal + Strategy Introduction 13 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 College Ave. Access Sage Appraisal + Strategy Introduction 14 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. College Ave. Access Sage Appraisal + Strategy Site Description and Analysis 15 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. College Ave. Access Sage Appraisal + Strategy Site Description and Analysis 16 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 College Ave. Access Sage Appraisal + Strategy Highest and Best Use 17 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. College Ave. Access Sage Appraisal + Strategy Highest and Best Use 18 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. College Ave. Access Sage Appraisal + Strategy Land Valuation 19 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 Sale Date SF ID Address Sale Price $/SF Zoning 10/16/23 21,344 1 54 Sunset DR, Kalispell $139,000 $7 R 2 01/31/23 17,860 2 418 Maple DR, Kalispell $175,000 $10 R-1 09/16/22 6,970 3 NHN 8th Ave W, Kalispell $155,000 $22 R-4 06/21/23 9,148 4 7 Muskrat DR, Kalispell $125,000 $14 R-4 07/14/23 3,049 5 1331 7th ST W, Kalispell $90,000 $30 R-4 College Ave. Access Sage Appraisal + Strategy Land Valuation 20 Lana saes Map Subject ip'I Kalispell', City Airpore College Ave. Access Sage Appraisal + Strategy Land Valuation 21 COMPARABLE LAND SALE #1 54 Sunset Drive, Kalispell, MT 59901 Listing ML5#: 22208989 prop Type: Land and Lots price: $139,000 Status: UC-Back-Up Offers Sub Type: Residential DOM CDOM: 482/482 Recent:, 10/15/2023 : Under Contract Taking Back Up Offers : ACT->UCTBUI Unit: City Limits: Lot Size: 0.49 ac 21,344 sgft Features Lot Fe3:_-es: Corners Marked. Few Trees Fencing, View: Horse Feat: Topography: Road Frontage: City Street Road SurfacE 11laterfront: No/None Other Struck Systems & Utilities Other Equip: Ut..,ties: Geocode: 07407833304010000 County: Flathead Subdiv: $/Acre: S283,673 Industrial, Residential, Trees/Woods Level Asphalt Electricity Available, Natural Gas Available, Sewer Available, Water Available R3dor Feat: off Grid: No Public Remarks Rema•ks: Ar excit rg oppc�rt j- :,y Mt- the feel 3= be rg in t-e cDuntry but yet minutes from to-d:r. This leve . nea•l-, 112-acre Io_, parked out witn a mix a` tees and open space has outstanding access off a paved road in Evergreen. Existing se6Er 3; a;ater Fook-up on t-e property. Gas (a ready there) and power too. R-2 zoning allows for a mar.,factured or single-family home, Call N Ke Hcdees at 406.871.0673 or your real estate professional. Legal/Taxes Assessor=: 0739350 SID(s) Inciaded: Covenant: No Zoning; R-2 SID Annual Amt: School Dist: Taxes: $1,075 SID Est Tot Payoff: Tax ''ear: 2022 SID Features: Legal Desc: LOT 25 of CERTIFICATE OF SURVEY (COS) #22153 ent/ Broker Info List Office: Westward Bound Real Estate Office Phone: 406-253-0222 Office Fax: 406-755-0222 Address: 140 Kelly Rd, Kalispell, MT 59901 List Ag--nt: Michael Joseph Hodges Contact =: 406-871-0673 michaelhodge5798&gmai1.com LA License -e: RRE-BRO-LIC-79493 College Ave. Access Sage Appraisal + Strategy Land Valuation 22 Parcel Map Map - X BE �e Parcel Disdarmer Map - + 72 ft c� r' 21659 sqf[ 72 k ParCtil CiSC'a M,-F Ridgewood Dr 99 t,I-P C=_ta 200 ft Terms of Use Report a map error .5� er yd Terry I C � - Ln S Z7 fP � C m iii rp. tJ SP RAgewood Df Ridgewood 6r l� Mdeadawlarl( pr Meadowlark Ur PI uy v ,2 Keyboard shorts Map data ®2023 Google 200 k Terms of Use Report a map error College Ave. Access Sage Appraisal + Strategy Land Valuation 23 COMPARABLE LAND SALE #2 418 Maple Drive.. Kalispell, MT 59991 Listing MLS=: 22211234 Prop Type: Land and Lots Close Price: $175,000 Status: Closed Sub Type: Residential List Price: $250,000 DOM/CDOM: 186f Lot Features: Few Trees Fencing: Chain Link, Partial Horse Feat: Road Frontage: City Street Waterfront: No/None Frontage: Heating: Other Equip: Radon Feat: Irrigation: well Unit: City - m -s: No Lot 5 Fe: 0.41 ac 17,860 sgft Features Geocode: 07407833110430000 County: Flathead Subdiv: $/Acre: 5425,829 View: Topography: Level Road Surface: Asphalt Other Struct: Shed(s) Mobile Homes Perm tted: Double, Double Permanent, Manufactured Home, Modular, Single Systems & Utilities ,'�'ek=r Well Ut -ies: Sewer Available, Water Not Available Of" Si � No Public Remarks Nice property with just under a half an acre. Sits on a quiet street with mature trees and plenty of room to use it as you would like. Fix up the mobile home or build your dream home on the lot. Evergreen sewer and water as well as your own private well for irrigating. Contact Lisa Bartholomew at 406-250-7117 or Jordan Keller at 406-309-4954 or your real estate professional. LenalITaxes Assessor = 0004974398 SID(s) Included: Covenant: No Zoning: none SID Annual Amt: S:-vol Dist: Taxes: 5621 SID Est Tot Payoff: Tax Year: 2021 SID Features: Legal DEsc MOUNTAIN VIEW, 533, T29 N, R21 W, BLOCK 002, Lot 013, MOUNTAIN VIEW LOT 13 TR 13 Agent/Broker Info List Office: Montana Read Estate Associates List Agent: Lisa Bartholomeyv Office Phone: 406-407-7357 Contact --: 406-250-7117 Office Fax: lisaf&mtrealestateassoc.com Address: 142 2nd St W, Kalispell, MT 59901 LA License t: RRE-RBS-LIC-70477 Co List Off: Montana Real Estate Associates Co List Agt: Jordan Keller Buyer Office: Montana Real Estate Associates Buyer Agent: Jordan Ann Keller Office Phone: 406-253-7369 Contact --: 406-309-4954 Office Fax: thepropertygalsiamtrealestateassoc.com Address: SA License =: RRE-RBS-LIC-70477 Co Buyer Off: Montana Real Estaite Associates Co BuyerAgt: Lisa Bartholomew College Ave. Access Sage Appraisal + Strategy Land Valuation 24 Parcel %Iap Map - 110 ft 151 16951 sgft 53 ft 110 ft Parted Ciscla+m2ple Dr Maple Dr Map Data 100 Ft Terms of Use Report a map error r C1. Map - 4 a -, 1 .Ash Rd c �n Maple r " ❑ring Creek Or Spring Creek Dr Spring Creek Or 9 3rcel Disda4mer ,I,-. -:. m a Solberg Or Solb-e M O C'] 4� Harmony Ct j C7 � Sain L Almosta Rd Keyboard sharteuts Map data @2023 Gcoele 2C3 `i r Terms of Use Report a map error College Ave. Access Sage Appraisal + Strategy Land Valuation 25 COMPARABLE LAND SALE #3 Nhn 8th Avenue W. Kalispell, MT 59901 Listing MLS#: 22207470 Prop Type: Land and Lots Status: Closed Sub Type: Multi Faiviily Unit: City Limits: Yes Lot Size: 0.16 ac 6,970 sqft Close Price: $155,000 List Price: $159,900 DOMfCDOM: 105;` Geocode: 07396618312080000 County: Flathead Subd iv: $/Acre: 5968, 750 Features Lot Features: Few Trees Fencing: Partial View: Residential Horse Feat: Topography: Level Road Frontage: City Street Road Surface: Asphalt Waterfront: No/None Other Struct: Water Body: Mineral Righ'.s: unknown Systems & Utilities Other Equip: Ut ties: Water Not Available, Phone Available, Electricity Available, Natural Gas Available; Set -jar Available, Internet Available Rador Feat: off Gr d No public Remarks Remarks: Hard to find singie family; muiti-family building c:. quiet locat cn rti:ith c tv se -rites availab a in t-e street. Perinit:ed zo- -g uses include SFR, townhome or duplex. The corners have been located. Some init al prelim nary work fc•• co-verting to townhome lets is done, call For details. Amazing apple tree on north edge of the lot. One owner is a lice-sed -eal estate agent. Call D.I. Walker at 406- 250-2487 or your real estate professional. Legal/Taxes Assessor =; 0330101 SI7(s) Included: Covenant: No Zcnino: R-4 SI3 Annual Amt: School Dist: Taxes_ s832 SID Est Tot Pavcff: Tax Year: 2021 SID Features: Legal Desc; HIGH SCHOOLADD, Lot8, Block 10 in S13 T28N R21V%F Agent/ Broker Info List Office: Premiere Real Estate Professio List Agent: D.J. Walker Office Phone: 406-755-6789 Contact --: 406-250-2487 Office Fax: diwalkerobuyinmontana.com Address: 285 2nd Ave W N No. 102, Kalispell; MT 59901 LA License s: RRE-BRO-LIC-7176 Buyer Office: Flathead Valley Brokers Buyer Agent: Joe Pistorese Office Phone: 406-752-8383 Contact t: 406-471-1626 Office Fax: 9oe0fvbmt.com Address: 1307 3rd Ave E, Kalispell, MT 59901 BA License =: RRE-11135-LIC-89621 College Ave. Access Sage Appraisal + Strategy Land Valuation 26 Parcel Map Satellite - + Map - + "s 52ft 7976 sgft 53 ft ft 151 -W , Parcel Disclaimer Terrrs of Use i R _port a -nap error 'ap 7a-a _v `r Terms of Use Report a map error Mapt r A4e�J �pth — G.� e Vd � Mtn 7CP at?e� iSh SZW t � 7 fi44ts a w is VJ to St 3 ar f SLW IN s 43 �N P T 0 Par I osierPIN a Keyboard shortcuts Map data @2023 Google 200 Ft L---j Terms of Use Report a map error College Ave. Access Sage Appraisal + Strategy Land Valuation 27 COMPARABLE LAND SALE #4 7 Muskrat Drive, Kalispell, MT 59901 Listing MLS#: 300192969 Prop Type: Land and Lots Close Price: $125,000 Status: Closed Sub Type: Residential List Price: $149,000 DOMfCDOM: 64/84 Unit: Geocade: 07396620122250000 City Limits; Yes County: Flathead iff Lot Sze; 0.21 ac}Public Rec Subdiv: 9,148 scift �,*. � ` ;r�•'�"�-� � - � $fAcre: 5595,238 Features Lot Features: City Lot, Corner Lot Fencing: View: Mountain(s), Mountains Horse Feat: Topography: Level Road Frontage: City Street Road Surface: Asphalt Waterfront: Yes/Lagoon, Non -Navigable Other Struct: Water Body: Muskrat Slough Mineral Rights: Frontage: Waterfront/ 139 feet Mobile Homes Perm tted: None Systems & Utilities Cooling: Sewer: Public Sewer Heating: Water: Public Other Equip: Utilities: Electricity Available, Sewer Available, Water Not Available Radon Feat: Off Grid: No Irrigation: No Public Remarks Great Location, Single Family Lot in Kalispell. Corner lot with good access. City Sewer, Water Available. Seller may wish to do a 1031 Tax Deferred exchange. Kalispell City requires a 20 foot easement for the sewer line that crosses the property. See attached Photo. Assaciation Info ..s_oc at cn: So/ Association Transfer Fee: None Assoc Name: Muskrat Sub Assoc Amenites: None L al Taxis Assessor #: 0500188 SID(s) Included: No Covenant: Yes Zoning: Residential/R-4 SID Annual Amt: School Dist: District No. 5 Taxes: $871 SID Est Tot Payoff: Tax Year: 2022 SID Features: Legal Desc: Muskrat Stough Lot 20 ent BrokerInfo List Office: Flathead Valley Brokers List Agent: Scott ] Santa Office Phone: 406-752-8883 Contact --: 406-253-2658 Office Fax: sailiin 7g 612@gmaiLcom Address: 1807 3rd Ave E, Kalispell, MT 59901 LA License s; RRE-BRO-LIC-6917 Buyer Office: Flathead Valley Brokers Buyer Agent: Joe Pistorese Office Phone: 406-752-8883 Contact --: 406-471-1626 Office Fax: jloedbfvbmt.com Address: 1807 3rd Ave E, Kalispell, MT 59901 BA License �: RRE-RBS-LIC-89621 Co Buyer Off: Flathead Valley Brokers Co Buyer Agt: Trent W Mlassie College Ave. Access Sage Appraisal + Strategy Land Valuation 28 Parcel Map k Satellite - + Map - + Map - 119 ft a 67 ft B660 sgft 9 ft p 141 it, I Dr Russell Dr � N •.,, — u Terms of Use Report a map error Ln v, _ a e yr �r a Kelly Rd m a N Q Kelly Rd w 3 cz a Buttercup Laop M Parcel Disclaimer; AirpOrL YVy GrE�s O kr� aNMrL fA c m Ringri 4 Twin Acres Dr Twin Acre& Dr Twin Acrs Pk Keyboard shortcuts Map data @2fl23 Gurgle 20D 4t r Terms of Use Report a map error College Ave. Access Sage Appraisal + Strategy Land Valuation W COMPARABLE LAND SALE #5 1931 7th Strut W, Kalispell, MT 59901 Listing MLS#: 30003359 Prop Type; Land and (Lots Close Price: $90,000 Status: Closed Sub Type: Residential List Price: $105,000 DOM/CI]OM: 100/100 Unit: City Limits; Lot Size: 0.07 ac/Public Rec 3,049 sqft Features LotFe3-,•-s Level Fe-. -g Partial View; H srsv Feat Topography: R.ac =1:111:3-le City Street Road Surfac€ hater -ort: No Other Struck'. Systems & Utilities Other Equip: Utilities: Radon Feat: off Grid: Ir igatior; No Geocode: 07396618317020000 County: Flathead S-bd:v; $/Acre: $1,235,714 Mountain(s), Trees/Woods Level Cable Available; Electricity Available, Phone Available, Sewer Available, Water Available, Internet Available No Public Remarks In town, ready to build on with easy access to bypass and Rails to Tra s s}'stem. Tn,s lot offers views of Lone Pine state -a•< and is close to Foys Lake and Herron Park. Seller is including a building plan approved by City of Kalispell Building Department. Tr s :t also allows for the placement of a manufactured home, but there are specific: regulations that must be followed. Call Natalya Shvets at 406-212- 2926 or your real estate professional. Legal/Taxes Assessor = 0672711 SID(s'. Inc -ded; No Covenant: No Zonino: Residential/R-4 SID .nntia Amt: School Dist; district No. 5 Taxes: 5318 SID Es- Tot Pa%cff; Legal Desc: ASHLEY, S18, T28 N, R21 W, BLOCK 1, Lot 9 E2, C5 21363-9B Agent/ Broker Info List Office; Keller Williams Realty Northwest Montana List Agent; NataIya Sheets Office Phone: 406-752-4700 Co^ -act =: 406-212-2926 Office Fax: 406-752-9090 natalyashvetscpkw.com Address: 162 TimberwoIf Pkwy, Kalispell, MT 59901 LA License #: RRE-RIBS-LIC-99045 Buyer office: Premiere Real Estate Professionals Buyer Agent: D.J. Walker Office Phone: 406-755-6789 Contact #: 406-250-2437 Office Fax: diwalker buyinmontana.com Address: 285 2nd Ave W N No. 102, Kalispell, MT 59901 BA License =: RRE-BRO-LIC-7176 College Ave. Access Sage Appraisal + Strategy Land Valuation 30 Parcel Map 7 - - Z: Map Data Map - A LT 0 ��=' Fogs yaks Rd Parcel Disclaimer Map' + 60 ft 50 ft 2997 sqft 50ft 60ft Parcel Disclaimer 3r 7th St w Rep.:,- = rap error Mao Data 20 Ft L------j Terms of Use Report a map error I 2-1 3rd St W en + 71 56tj St %0 74 CJ TtL SL tls pt 100 1 Q -A Keyboard shoncuts Map data 92023 GaDgle 200 ft L---j T, Report a map error College Ave. Access Sage Appraisal + Strategy Land Valuation 31 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 College Ave. Access Sage Appraisal + Strategy Land Valuation 32 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. College Ave. Access Sage Appraisal + Strategy Land Valuation 33 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 College Ave. Access Sage Appraisal + Strategy Land Valuation 34 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% College Ave. Access Sage Appraisal + Strategy Land Valuation 35 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. College Ave. Access Sage Appraisal + Strategy Land Valuation 36 LIMITED ACCESS SALE Nhn Woodland Avenue, Kalispell, MT 59901 Listing ML5#: 22210226 Prop Type: Land and Lots Close Price: $35,000 Status: Closed Sub Type: Residential List Price: $69,000 DOM/CDOM: 85; Unit: Geocode: 07396617105280000 City Limits: Yes County: Flathead Lot S aEl: 0.82 ac Subdiv: 35,719 sqf# $/Acre: 542,683 Lot Features: Few Trees Fencing: Horse Feat: Road Frontage: City Street Waterfront: Yes/Non-Navigable, Stream Water Body: Unknown Frontage: Waterfront/Unknown Features View: River/Stream/Creek, Trees/Woods Topography: Sloping Road Surface: Asphalt Other Struct: Mineral Rights: Unknown Mobile Homes Permitted: Unknown Public Remarks Remarks:.82 of an Acre fronting Woodland Drive near Conrad Mansion. Boards Heritage Park and crosses a small stream coming from Woodland Park. This long narrow Lot has slope to it with Great Views to the Mountains to the East.Call Russell Purdy at 406-253-7877, or your real estate professional. Surface Water: From Wood and Park Legal/Taxes Assessor -: 0974353 SID(s) Induded: No Covenant: No Zoning: R-3 SID Annual Amt: School Dist: District No. 5 Taxes: $1,783 SID Es: Tot Pavcff: Tax Year: 2021 SID Features: Legal Desc: Tr 2EBA in NE4NW4 of S17-T28N-R21W Age nt/IBroker Info List Office: Montana Properties LLC List Agent: Russell Purdy Office Phone: 406-297-6871 Contact =: 406-253-7877 Office Fax: 406-730-4C52 russellpurdy5icbgmail.com Address: 311 Dewey Avenue, P.O. Box 1478 , Eureka, MT 59917 LA License =: RRE-BRO-LIC-8907 Buyer Office: Montana Properties LLC Buyer Agent: Russell Purdy Office Phone: 406-297-5871 Contact :": 406-253-7877 Office Fax: 406-730-4C52 russellpurdy�il gma.com Address: 311 Dewey Avenue, P.O. Box 1473 , Eureka, MT 59917 BA License : : RRE-BRO-LIC-8907 College Ave. Access Sage Appraisal + Strategy Land Valuation 37 Parcel Map Satellite - _ ..�- Map = + 190 fl 54 421 ft wq Parcel aisclaarner�i1� r .. :. Ma Data 270 ft' Terma of Use Report a ma Map Om:a 12G0 :-[' I Terms o$ Use I Report a map error R P R error Conrad �a Dr � --- P '5 + n: r Q ^fit { t Ath 61 ro � I St IF G nth St E Stti 5t yt �i F`p� Cl � � 9 A F L rn�. f, E Y � tta i Parcel DiGCIa'fitler �5t1 rn [� 9Li Sty `q Keyboard shoateuts Map data @2C23 Googly 200 ft' ' Terms cf Use Reporta map error College Ave. Access Sage Appraisal + Strategy Land Valuation 38 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 College Ave. Access Sage Appraisal + Strategy Land Valuation 39 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 $9.97 $11.46 x # Units Limited Access 21,344 Direct Access 21,344 Unit SF SF Rounded Value Difference Market Value $212,804 $244,607 $31,803 $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. College Ave. Access Sage Appraisal + Strategy Exposure Time and Marketing Period 40 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. College Ave. Access Sage Appraisal + Strategy Definitions 41 ADDENDA College Ave. Access Sage Appraisal + Strategy Definitions 42 Definitions College Ave. Access Sage Appraisal + Strategy Definitions 43 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." College Ave. Access Sage Appraisal + Strategy Definitions 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. College Ave. Access Sage Appraisal + Strategy Definitions 45 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. College Ave. Access Sage Appraisal + Strategy Definitions 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. College Ave. Access Sage Appraisal + Strategy Addenda ENGAGEMENT LETTER College Ave. Access Sage Appraisal + Strategy Addenda Engagement Letter APPRAISAL 6 Complete this form and return to Sage Appraisal + Strategy BTRRTEGY Property Address: 375 College Ave, Kalispell Owner of Record: City of Kalispell Person to Contact for Entry: Jeremy Peterson Phone # of Contact: 406-890-0331 Intended Use of Report: Project Planning (Property Access) Intended User: Jeremy Peterson & City of Kalispell If Purchase, Contract Price: None The Report Should be Addressed to: Client: Jeremy Peterson Address: 2135 Wintercrest CAR City, State: Kalispell, MT 59901 Phone#: 460-890-0331 Email: jpeterson@martelconstruction.com Fee Quoted: $1,200 Due Date: 10/20/2023 Client .Signature: ` � rf A P Report Type Provided IV 17 Narrative Appraisal Report 1004 Form Appraisal C.MA (Market Analysis does not include property inspection or measurements.) Email: iamesfsa�e anvraisaLcom Phone: 406-270-2121 College Ave. Access Sage Appraisal + Strategy Addenda QUALIFICATIONS OF APPRAISER College Ave. Access Sage Appraisal + Strategy Addenda 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 College Ave. Access Sage Appraisal + Strategy Addenda State of Montana Business Standards Division Board of Real Estate Appraisers G-LIC-15327 Status: Active Expires: 03/31 /2024 JAMES WILLIAMSON 586 STONERIDGE DR 586 STONERIDGE DR KALISPELL This ccnificatc ,erires liCen'Urc a,: CERTIFIED GENERAL APPRAISER �, Montana Department of LABOR & INDUSTRY RENM OR VERIFY YOUR LICENSE AT: https�?!ebzrnUwPd A College Ave. Access Sage Appraisal + Strategy