Review of Parking Lot AppraisalTo: Jane Howington and Charlie Harball
From: Wade Elder
Date: 01 /04/12
Re: Review of appraisal for City and Flathead County Economic Development Authority (FCEDA) owned
parking lot located at the corner of Glenwood Drive and Two Mile Drive.
Jane and Charlie;
As requested I have reviewed the appraisal completed by Elliot M. Clark dated 12/19/11 and am summarizing
the information in the summary appraisal report as follows:
Property: This is a 1.795 acre (78,190 Square Feet) site (generally 230' X 340') with parking lot
improvements made to it. The property is located at the corner of Glenwood Drive and Two Mile Drive.
• The property has 191 Parking spaces that the appraiser counted.
• There is a deed restriction on the property that limits the use of the subject property to a parking lot.
• The property is in Flood Zone X. Zone X is an area of minimal flood hazard.
• The appraiser has arrived at 2 opinions of value based on the following:
o Scenario 1: There are no deed restrictions on the property.
o Scenario 2: Includes the existing parking deed restriction in place.
Scenario 1: Hypothetical Condition; There is no deed restriction in place.
• $390.000.00 Sales Comparison Approach (78,190 Sq. Ft. @ $5.00 / Sq. Ft.)
• The appraiser did not use the Cost or Income Approach as the parking or improvements do not
contribute to the value of the property.
• FINAL VALUE: $390.000.00.
Scenario 2: The property as is with the deed restriction in place regarding property use as a parking lot.
• $175,000.00 Income Approach of Value —191 spaces @ $13 / space less expenses with a 10% CAP
Rate.
• The appraiser did not use the Cost or Income Approach as the parking or improvements do not
contribute to the value of the property.
® FINAL VALUE: $175,000.00
The comps seem reasonable that are used in the appraisal. Some are dated going back to 2005 however the
appraiser has made reasonable adjustments for the time frame.
Other Notes:
® The City and Flathead County Economic Development Authority (each with an undivided one-half
interest) purchased the property on 08/17/2005 from ACG-Kalispell Investors, LLC for $312,760.80 and
there was $280,000 of improvements done to the property for the parking lot in 2006.
® Department of Revenue 2011 Tax Year land value is $487,938 or $6.24 / Sq. Ft.