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04/07/76 Vadala to Miller/Hofland StudyOffice of lCounty Aitorney Flathead County KALISPELL, MONTANA 55901 PATRICK M. SPRINGER, COUNTY ATTORNEY LEONARD A. VADALA, Cron DEPUTY RANDY K. SCHWICKERT, DEPUTY DENNIS J. HESTER, DEPUTY STEWART A. PEARCE, 11, DEPUTY April 7, 1976 Board of Adjustment City of Kalispell City Hall Kalispell, Montana 59901 Attention: Austin Miller, Chairman Re: Variance - Old Hospital Building Dear Mr. Miller: P. O. BOX 121 COURTHOUSE WEST ANNEX (406) 755-5300 - EXT. 241 Enclosed please find a copy of the impact statement received this date from James A. Hofland, Appraiser. Very truly yours, OFFICE OF THE COUNTY ATTORNEY FLATHEAD COUNTY, MONTANA a Leonard A. Vaga a - Civil eputy Encl. E D t April 1, 1976 Office of County Attorney Attn: Leonard A. Vadala Civil Deputy P.O. Box Box 121 Kalispell, Montana 59901 Re: Old General Hospital Building Kalispell, Montana 59901 Pursuant to your request I have made a study and analysis of the above mentioned facility as it pertains to the highest and best use and the Three Phase adoption drawn up by the Flathead County Officials. It is assumed that the County will approve the present structure to provide adequate office facilities for the various Governmental Agencies that will occupy this structure. Also the site will be approved and modified to meet the neccesary parking expectations outlined in phase 1, 2 and 3 of the County reports. I have examined all of the avaiable data and information relating to the use of this facility, pedestrain traffic pattern and the auto- mobile traffice patterns. As a result of my analysis and study, it is my opinion that the use of the structure conforms to indicated highest and best use and that no detremental influences, pretaining to the surrounding properties will result in the use of this building for the purpose of county offices as outlined in three phases. i- i �- i James A. Hof and, RM, SRA, CRA 920 Central Avenue West Great Falls, Montana 59404 CONTINGENT AND LIMITING CONDITIONS In making this appraisal report, the following contingent and limiting conditions have been made: 1. That the title of the property is good and marketable. 2. That there are no encumbrances against this property that would, in any way, affect the valuation. 3. That the information supplied by other is in conformity with the true facts. 4. Any sketches in this report would be included only to assist the reader in visualizing the property. 5. I have made no civil land survey of the property, and assume no responsibility in connection with such matters or any matters that would be considered legal in nature. 6. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales or other media, without the written consent and ap- proval of the author, particularly as to valuation conclusions, the identity of the appraiser or firm with which he may be con- nected or any reference to the American Institute of Real Estate Appraisers or Society of Real Estate Appraisers. 7. The appraiser reserves the right to revise this appraisal in view of changing market conditions and any other circumstances which would affect the valuation reported. B. In calculations used in this report, certain figures have been rs)undedat a point beyond which further calculations would be meaningless and not contribute to a conclusion of value. CERTIFICATION OF THE APPRAISER I, James A. Hofland, certify that I have personally inspected the property, legally described as Lots 2,3,4,5,6,7,8,9,10,11 and 12 of Block 203 of Kapispell Townsite Company's Addition Number Three, Flathead County, Kalispell, Montana. I also certify that as otherwise noted in this appraisal report: I have no present or contemplated future interest in the real property that is the subject of this appraisal report. I have no personal interest or bias with respect to the subject matter of this report or parties involved. To the best of my knowledge and belief the statements of fact contained in this report, upon which the analysis, opinions and conclusions expressed are true and correct. This appraisal report has been made in conformity with and is subject to the requirements of the code of ethics professionally and standards of professional conduct of the American Institute of Real Estate Appriasers and Society of Real Estate Appraisers. This appraisal sets forth all of the contingent and limiting conditions (imposed by the terms of my assignment or by the undersigned) affecting the analysis, opinions and conclusions contained in this report. I further certify that neither the employment to make the appraisal nor the compensation is contingent on the amount of the valuation reported. In making this report certain figures have been rounded at a point where further calculations would be meaningless and not contribute to a conclusion of value. April 1, 1976 James A. Hofland, R , SRA, CRA QUALIFICATIONS OF JAMES A. HOFLAND GENERAL EDUCATION: Graduate of Montana State University, Bozeman, Montana 1960 B.S. Degree - Agriculural Economics EDUCATIONAL TRAINING FOR APPRAISING: Course 401 - Rural Practices and Techniques in Appraising Montana State University, Bozeman, Montana 1959 Course 1 - Principles, Methods and Techniques of Appraising Department of Highways, Missoula, Montana 1970 Course 1A - Same as Above (audited) Great Falls, Montana 1970 Course 1B - Income Approach to Valuation and Capitalization Seattle Pacific College, Seattle, Washington 1972 Course 11 - Urban Properties,Valuation and Capitalization San Francisco University, San Francisco, California 1973 Course V - Cattle Ranch and Grazing Land Appraising Department of Highways, Great Falls, Montana 1972 SPECIAL EDUCATION TRAINING: Business Law Course - Internation Correspondence Schools 1971 Appraisal Report Writing Seminar - Hayden Lake, Idaho 1973 Narrative Demonstration Appraisal Report - AIREA, Chicago, Ill. 1972 Short Form Narrative Demonstration Report - AIREA, Chicago, Ill. 1973 Residential Appraisal Seminary - AIREA, Eastern Montana College Billings, Montana Pre-licensure Real Estate Workshop - Carroll College, Helena, Mt. 1973 Real Estate License - 1974 #8808025, Montana State Real Estate Commission AFFILIATIONS: Member - Society of Real Estate Appraisers Member - American Institute of Real Estate Appraisers Member - Society of Rural Appraisers and Farm Managers Associate Member - Great Falls Board of Realtors Associate Menber - Montana Board of Realtors Associate Member - National Board of Realtors Member - Great Falls Area Chamber of Commerce Charter Member - National Association Review Appaisers QUALIFICATIONS OF JAMES A. HOFLAND (con't) REPRESENTATIVE CLIENTS: John W. Woodcock, MAI, Great Falls, Montana Wayne Neil, MAI, Polson, Montana Harry B. Dye, MAI, Seattle, Washington State of Montana, Department of Highways, Great Falls, Montana State of Montana, Department of Fish and Game, Helena, Montana U. S. Army, Corps of Engineers, Seattle, Washington Tri-County Electric Association, Sundance, Wyoming Northwest Pacific Association, Seattle, Washingtion Montana Power Company, Butte, Montana Quantre Corporation, Great Falls, Montana Great Falls Federal Savings & Loan Association, Great Falls, Mt. Northwestern National Bank, Great Falls, Montana First National Bank, Great Falls, Montana Montana Bank, Great Falls, Montana John H. Kuenning, Attorney, Great Falls, Montana Keil & Gustafson, Attorneys, Conrad, Montana Kimberely - Clark Corporation, Neeham, Wisconsin George Robert Crotty, Attorney, Great Falls, Montana Brown and Williamson Tobacco Corporation, Louiville, Kentucky Continental Mortgage Insurance Incorporated, Seattle, Washington Mortgage Guaranty Insurance Corporation, Seattle, Washington Federal Home Loan Mortgage Corporation, Seattle, Washington Burlington Northern Incorporated, St. Paul, Minnesota Insurance Company of North America, Boston, Mass. Travelers Insurance Company, Portland, Oregon Van Skaack Company, Denver, Colorado Several Realtors throughout Montana Various Individuals throughout Montana Qualified as an Expert Witness in Federal District Court SUMMARY ANALYSIS HIGHEST AND BEST USE: The highest and best use is briefly defined as that use which is the most profitable, likely use of land, which may be expected to pro- duce the greatest net return to the land over a given period of time. In making this analysis, I have given thought and consideration to any and all uses to which the property can be reasonably adapted. First of all this is a large administration facility that was orginally constructed to house hospital facilities and from imformed personal this is a proper improvement to the land. Residential zoning permits construction of this type of improvement and the orginal structure has been built prior to the construction of many of the houses in this area. In reality it was concluded that many of the residences were constructed due to the location of this facility. If we for a monent consider the city of Kalispell, Montana, it becomes readily evident that there is a need for additional.county and city services facilities and the expense of additional constuc- tion is nearly prohibitive. Based on my analysis and study of the area, it was concluded that the highest and best use of the present structure would be for administration facilities for the general public. TRAFFIC PATTERNS: I have examined three three pattern studies conducted and Im of the opinion that suitable and satisfactory, both pedestrian and auto- mobile traffic flow, would be handled by the city officials and as a result no more traffic congestion would result in the use of this facility than formally established by its use as a hospital facility. In further examination of this facility and the intented use as a county related administration office, it is my opinion that this use would provide less traffic congestion to the area in consid- eration of the fact that these type of offices are maintained and staffed primarily between 8:00 AM and 5:00 PM for five days per week. It is also assumed that the county would maintain and the upkeep would be satisfactory at all times. PARKING: After reviewing the available land area associated with this facility it appears that there is adequate parking area available for the staff and a majority of vistor parking. It is true that due to the consolidation of these offices, that traffic will increase over a period of time and vistor time will be expanded, but off street parking is available and street parking is available on a limited basis and this should be adequate to support the facility. There is an Elementary School adjacent to this structure that will naturally feel the affects of these offices, not only in parking, but in traffic flow opposed to be vacant and unused. However, it is my opinion that this intended use will provide less determintal effects on the school than the previous use. PROPERTY VALUATIONS: From a study of the past five months sales transactions in the area and surrounding Kalispell community it appears that the intented use of this facility will have no determintal affect on the property valuations in the immediate area or if anything less influence than in the case that this property would be vacated. Due to the fact that many of the jobs -related to this type of offices are low income, asseccibility from foot traffic is desirable and should stimulate real estate activity in this area. If we for a monent reflect back on past experiences in communities with similar growing problems, it becomes obvious that communities such as Great Falls, Montana, who relocated Deaconess Hospital, Central Catholic High School and are presently relocating Columbus Hospital, experienced similar related change. Many times it is forgotten that the orginal construction created the demand for the present housing valuation in these areas and to adapt a use suitable for the area will not only maintain these values, but in some instances stimulate further valuation increases. It is true that the upper value ranges may somewhat decreased, but it does not appear that there is an over supply of these type of homes in this area. CONCI_(1SInN: After investigating past sales and property valuations on the East side of Kalispell, Montana and surrounding the site in question, it is my opinion that the area in question is an older residential neighborhood and that property values will not be adversely affected by the intended change in use, which is an indicated proper use of this facility. It is also my opinion that to vacate the present structure would be far more detremintal to the area and result in increased vandalism or deterioration to the area. Res ectfully submitted, • Cam' C�, James A. Hofland, ,RM, SRA, CRA 920 Central Avenue West Great Falls, Montana 59404