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Appendix B/Land ValuesAPPENDIX B LAND VALUES Roger D. Jacobson, MA1 Real Estate Appraiser & Consultant 1001 South Main Kalispell, Montana 59901 (406) 752-6000 9 Fax (406) 752-6001 e-mail:jappr@digisys.net July 30, 1998 Terry Richmond Morrison-Maierle, Inc. 221 Parkway Drive Kalispell, MT 59901 Re: City Airport Project Dear Terry: At your request I have assembled various pertinent sales in the vicinity of the City Airport to assist you in identifying preliminary land values. The following chart summarizes the sales data, with detailed sales sheets attached. Sale # Date Seller Buyer Size $/sf Utilities zoning 1 12-95 Owens et al WRC Leasing 1.58 Ac $2.18 No I-1 2 4-96 Brevik . Glac Pk Boat 2.479 Ac $0.86 City I-1 3 7-97 City of Kalispell Dasen 4.624 Ac $3.67 City B-2 4 I 12-97 City of Kalispell RSI, LLC 5.25 Ac $3.25 B-2 5 6-95 Monk et al Oretana 9.322 Ac $1.23 -City Ci B-2 6 12-97 Billma er estate Carver 2.017 Ac $1.14 Cit,w/annex I -I Distinct differences in price per square foot are essentially attributable to highway frontage, accessibility, proximity to and availability of services and zoning. Sale #1 for example is located on Highway 93, less than one half mile south of Sale 3, yet at a lesser price due to location, services and zoning. Sale #2 is only slightly closer to town and services, but lacks direct frontage on Highway 93, with utility services requiring extension beyond the Big R parcel. Sale #6 is similar to Sale #2 in. zoning, but with frontage on Kelly Road and services available upon annexation. Sales #3 and #4 are among the most recent and involve the choicest parcels for development, with excellent highway frontage and/or accessibility via side roads. Sale #5 is the largest parcel with size playing an important role in pricing, however topography is a major factor; with this site being about 4' below highway grade and requiring substantial fill for development compared to say Sale #4. There is also a pending transaction on the northerly portion of Sale #5, which is now a subdivided lot known as Lot 1 of Oretana Subdivision, with 4.308 acres. The pending transaction, and I emphasize pending, is for $500,000, or $2.66/sf. This is less than the sale price of Lot 2 Daley Field (Sale #4), essentially attributable to the slightly further distance from town and the low topography. I assume these sales will allow you to complete your preliminary estimate of value for the Airport project. rdj End Roger D. Jacobson, MAI Real Estate Appraiser & Consultant 1001 South Main Kalispell, Montana 59901 (406) 752-6000 • Fax (406) 752-6001 e-mail:jappr@digisys.net - August 31, 1998 Terry Richmond Morrison-Maierle, Inc. 221 Parkway Drive Kalispell, MT 59901 Re: 160 Acre Site Values - Lower Valley Area Dear Terry: At your request for to research values of 160 acre parcels in the Lower Valley area I have identified the most recent sales and included copies of the sales information including maps. As you will note, the sales appear a bit inconsistent, which I believe relates to the individual characteristics of the site selected as well as the.motivations of the buyer and seller. The range of values on a per acre basis is from a low of $1,719/acre (Sale 2) for a 160 acre tract with part of the acreage across a slough and inaccessible to most buyers, to $2,795/acre (Sale 1) for an irregular shaped 157.41 acres. Sale 3 is a square 160 acre tract:.,hich was originally offered for sale at $385,000 or $2,434/acre, selling for $335,000 after 680 days on the market. Sale 4 is a larger tract, 314.91 acres, which was purchased by the Bigfork Water and Sewer District for a sludge disposal site. The slightly lower price of $2,302 per acre for this site is likely due to the parcel size. The general indication of the market is that a 160 acre parcel should have a value in the range of $2,400 to $2,800/acre. Searching the current MLS catalog for listings I note that only one parcel in this size range and location is presently advertised for sale, that being a squarel54.24 acre site in Section 5, Township 28 North, Range 20 West; with the asking price of $615,000, or $3,987/acre! Obviously this price is not in sync with the recent sales data. Please let me know if you need further, information. Sincerely, Roger D. Jacobson, MAI rdj Roger D. Jacobson, MAI Real Estate Appraiser & Consultant 1001 South Main, Kalispell, Montana 59901 (406) 752-6000 e Fax (406) 752-6001 e-mail: jappr@digisys.net July 9, 1999 Morrison-Maierle Inc. Attn: Tony Feilzer 1228 Whitefish Stage Kalispell, MT 59901 RE: Kalispell City Airport Market Value Study - Project Area Dear Mr. Feilzer: In accordance with your authorization requesting a consulting report to estimate the market values for lands within the City Airport project area, I have inspected the area, reviewed appropriate public records and have made a careful and thorough investigation and analysis of all matters pertinent to the value as reported in the attached summary appraisal report. The report is intended to comply with the requirement of the Uniform Standards of Professional Appraisal Practice, Standards 4 and 5. By reason of my investigation and analysis, data contained in this report, other information in my files and my experience in the appraisal business, it is my opinion that the market values as defined herein for the subject area as of July 8, 1999 were: US Highway 93 oriented properties - $0.33/sf to $6.71/sf Rural acreage sites - $0.12 to $0.21/sf Industrial sites without frontage on Highway 93 - $2.32/sf +/- Shop/hangar structures - $1.74/sf to $21.80/sf Residences - Average costs w/o land - $56.74/sf to $72.47/sf I respectfully refer you to the data herefollowing, from which, in part these value ranges were derived. rdi Kalispell City Airport Feasibility/Master Plan Study August 1999 Appendix B Supporting documentation is available at Morrison-Maierle's Helena and Kalispell offices for the copying and postage fees. 93