HomeMy WebLinkAbout2010-12-01 PACKET 06.A.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM w4ko-040
DATE 12/01/2010
MEN =4glag
no I
Jennifer Levitt
STAFF AUTHOR
COUNCIL ACTION REQUEST:
Adopt resolution ordering the project and authorizing the plans and specifications for the 2011
Pavement Management Project, Pine Coulee and Countrywood (District 1) and Howard's
Addition (District A).
STAFF RECOMMENDATION:
Recommend the Council adopt resolution ordering thE: project and authorizing the plans and
specifications for the 2011 Pavement Management Project, Pine Coulee and Countrywood
(District 1) and Howard's Addition (District A).
SUPPORTING DOCUMENTS:
Fq MEMO /LETTER: Jennifer Levitt, November 22, 2010.
Z RESOLUTION:
F ORDINANCE:
F ENGINEERING RECOMMENDATION:
F LEGAL RECOMMENDATION:
Z OTHER: 2011 PM Neighborhood Meeting Notes and Attendance, Benefits Appraisal for
Residential and Commercial Properties in Pine Coulee, Howard's Addition, Dave Schuck and
neighborhood Petition, Future PM Projects Map, Howards Addition Map, Development
Constructed Years, Pine Coulee Park Improvements, and Pine Coulee/Countrywood
Construction Map.
ADMINISTRATORS COMMENTS:
City Ad-phinistrator Date
� �Y �7 � 1 y � f i7 � � � [ s� •Ti Ti [ i
RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND
SPECIFICATION FOR THE 2011 PAVEMENT MANAGEMENT PROJECT, PINE COULEE AND
COUNTRYWOOD (DISTRICT I) AND HOWARD'S ADDITION (DISTRICT A)
WHEREAS, a resolution of the city council adopted the 3rd day of November, 2010, fixed
a date for council to hold a public hearing on the proposed improvement benefiting properties that
abut the following streets: Lofton Ave. So. from W. Point Douglas Rd to Lockridge Ave. So.;
Lockridge Ave. So. from W. Point Douglas Rd. to cul -de -sac; Leeward Ave. So. from W. Point
Douglas Rd. to Layton Ave. So.; Lehigh Ave. So. from Leeward Ave. So. to Leeward Ave. So.;
Leeward Court So. from Lehigh Ave. So. to cul -de -sac; Leeward Ave. So. from Layton Ave. So. to
W. Point Douglas Rd.; Layton Ave. So. from Leeward Ave. So. to Leeward Ave. So.; Leeder Ave.
So. from Layton Ave. So. to cul -de -sac; W. Point Douglas Rd. from TH 61 to Leeward Ave. So.;
Granada Ave. So. from 70 Street to 74 Street; and 71 Street So. from Granada Ave. So. to
cul -de -sac; pursuant to Minn. Stat. Chapter 429.011 to 429.111.
WHEREAS, ten days' mailed notice and two weeks' published notice of the hearing was
given, and the hearing was held thereon th -, 1st day of December, 2010, at which all persons
desiring to be heard were given an opportunity to be heard thereon.
WHEREAS, the City desires to assess the cost of said improvements to all benefited
properties; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF COTTAGE
GROVE, MINNESOTA:
1. Such improvement is necessary, cost - effective, and feasible as detailed in the
feasibility report. The improvement shall include road rehabilitation, park
improvements, and storm sewer.
2. Such improvement is hereby ordered.
3. Bonestroo is hereby designated as the engineer for this improvement. The engineer
shall prepare plans and specifications for the making of such improvement.
4. The city council declares its official intent to reimburse itself for the costs of the
improvement from the proceeds of the tax exempt bond.
Adopted by the Council this 1st day of December, 2010.
Attest:
Myron Bailey, Mayor
Caron M. Stransky, City Clerk
From: Jennifer M. Levitt, P.E., City Engineer
Re: 2011 Pavement Management
Order Project
Authorize Preparation of Plans and Specifications
�MM
On September 1, 201 the City Council authorized a feasibility report be prepared for the 201
Pavement Management Area. The 2011 Pavement Management Area includes Pine Coulee
and Countrywood (District 1) and Howard's Addition (District A) as established by the 1994
Pavement Management Program. The City Council held a workshop session on October 20,
2010 to discuss the various elements of the proposed improvements. The workshop session
provided the necessary guidance to define the scope of the improvements.
A neighborhood meeting was held on November 9, 201 at 7:00 p.m. at City Hall in the
Council Chambers; the meeting notes are enclosed. There were 41 residents in attendance at
the meeting. Please see the enclosed sign-in sheet for the attendance roster. Residents were
also provided the opportunity to follow up with staff to discuss specific concerns and issues; a
summary of the individual meetings is enclosed for reference.
The total project cost for the road work, storm sewer, and park improvements is $1,639,000.
According to the City's policy, 45% • the total project is assessed against the benefiting
properties. The total project value that is proposed to be assessed is $669,150 for the two
districts.
Residents in the Howard's Addition have submitted a proposal from Dave Schuck, which is
enclosed for your review. The proposal requests that the City not proceed with the pavement
rehabilitation at this time, but postpone the improvement until the rest of Granada Avenue in
Hidden Oaks is improved. The age of the streets within the area of question can be seen in
Figure 6. The years of installation range from 1990-1996. The remaining streets in the
development are far out into the future for rehabilitation; the remaining streets do not appear in
the current Capital Improvement Program (CIP). There are 39 miles of streets identified for
rehabilitation at a cost of nearly $30 million that will take place before Hidden Oaks' streets are
proposed to be rehabilitated. Please see the CIP pavement management roads that have been
identified for rehabilitation due to lower PCI values and distressed pavement. Most likely the
other road segments in the Hidden Oaks area will not see improvement for at least 15 years or
more.
The question has been asked, why not seal coat the road rather than reclaim. The answer to
this question is that the roads have deteriorated beyond the point that a seal coat application
would work. Seal coating would not improve the condition of the street because the problems
are with potholes, large block cracking, substantial alligator cracking, and age related
bituminous deterioration. In 2008 the City seal coated the road to help provide a short term
improvement, in other words, trying to buy time until this project could occur. The end result is
the City has continued to patch potholes since that application. The purpose of a seal coat
application is not to add structural integrity to a road surface, but to recondition the pavement
and help to prevent moisture from penetrating into the subgrade. The application of a skin
patch and seal coating of the road would cost approximately $18,000. The problem with a skin
patch or a very thin bituminous overlay is there is nothing strong or durable for it to affix to, so
there will continue to be potholes to fix. The City does not assess for skin patching or seal
coating. So the cost to the taxpayers is $18,000 initially and then continued labor and patch
material for another 15 years. If the assumption is used that the City expends $1600 per year
in maintenance, which means another $24,000 is going to be expended by taxpayers to keep
the road in poor condition.
Also, in 15 years the
roId will have
deteriorated to a
100
condition beyond a
reclamation, which
86
means a full
70
reconstruction would
be necessary. A full
66
reconstruction would
add the cost of
40
removal and
26
replacement of all
concrete curb and
IQ
gutter. The chart to
the right, best
0
summarizes the
K
condition of the road in comparison to the future cost of repairing the road in a completely
failed condition, which it would be; the residents would be paying four times more for the repair
in the future.
Staff took some time to evaluate the concern about heavy trucks crossing the new pavement
to reach the Hidden Oaks area. In 15 years, when a mill and overlay project would occur,
approximately 120 construction trucks would travel on Granada Avenue. This is equivalent to
4.6 months of garbage trucks providing service to the neighborhood. Garbage trucks also
travel local streets such as Granada Avenue while road restrictions are in place each spring,
when the road is most susceptible to damage. In conclusion, more theoretical damage occurs
with garbage trucks over the life of the road than future construction traffic.
Staff's recommendation is to proceed with a reclamation of the pavement with spot curb
replacement in 2011 for a total project cost of $164,000. The total assessed portion would be
$73,800, which represents 45% of the total project cost. Howard's Addition has 12 units, so
the cost per unit or residential lot would be $6,150.
The City had a special benefits appraisal conducted by BRKW Appraisals, Inc. on two parcels
within the Howard's Addition. The complete special benefits valuation of Howard's Addition,
dated November 8, 2010, is enclosed. The results of the special benefit valuation indicate that
7.95% to 8.33% increase is realized in special benefit when the road improvement occurs,
which amounts to $7,000. This compares favorably to the amount being assessed of $6,150.
Pine Coulee & Countrywood
The Pine Coulee development was constructed in 1971 and the streets are currently in poor
condition. The streets within the development are West Point Douglas Road, Leeward
Avenue, Lehigh Avenue, Leeward Court, Layton Avenue and Leeder Avenue.
The Countrywood development was constructed in 1974 and the streets in this neighborhood
are also in poor condition. The streets within Countrywood that are proposed for improvement
are Lofton Avenue and Lockridge Avenue.
rhoR,0 would no'-C
It is also proposed to pave bum
..._
suts at mailboxes to prevent
rutting. I
determine what lies below the bituminous surface. It was discovered that the original streets
were not built to the standard the City currently uses for road design. The subbase consists of
mixed soils of clay, silt and organics. There is a range of 1" gravel to 7" of gravel base, with a
majority only having 3" of gravel. The graphic to the left helps to visualize the road section.
The subbase, which is typically a granular or sand material, helps to filter water away from the
base course. In the Pine Coulee/Countrywood area the subbase acts more like a sponge and
retains water and moisture which causes heaving and flexing in the base course and surface
course. This is what is causing the pavement surface to show deterioration. The proposed fix
is to first add gravel (at varying depths in the development) approximately 2" over the existing
bituminous, then reclaim the new gravel, bituminous and existing base together. The goal is to
build a substantial base course to bridge the poor soils below, reducing the heaving and
flexing. There is one exception, Leeward Avenue between the Layton Avenue loop. This area
will require subbase excavation to be performed with granular material backfilled, and then the
gravel base and bituminous surface will be placed.
Other improvements will include:
1. Improvements to the Leeward Court cul-de-sac, which currently does not meet fire
code; the road surface will be widened to 20'.
2. The cul-de-sac at the end of Lockridge Avenue will either have the cul-de-sac reduced
in size or an island created in the center.
3. Curb and gutter will be installed on a segment of Leeward Avenue to control drainage.
4. Rain gardens will be installed to help improve drainage.
5. Replace the existing storm sewer system to conform to City standards.
6. Driveway aprons (1 0' from road) will be installed; material will match existing surface. If
the apron is gravel, it will be upgraded to bituminous.
Consistent with past City practice, any park within the pavement management area will receive
improvements. The park that is proposed to see improvements is the Pine Coulee Park. It is
proposed to install curb and gutter and pave the parking lot (20 stalls), install bituminous trails,
a new swing set and benches, re-grade the ballfield, install a basketball court, add a gazebo
structure with picnic table, plant trees and install benches. The total cost of the park
improvements is $152,000, which is funded from Park Trust and Playground/Park Shelter
Replacement/Public Landscape Initiative, not assessments.
Staff's recommendation is to proceed with a rehabilitation outline for Pine Coulee and
Countrywood in 2011 for a. total project cost • $1,323,000. The total assessed portion would
be $595,350, which represents 45% of the total project cost. Pine Coulee and �ountrywood
have 87 equivalent units, so the cost per unit • residential lot would be $6,843.10. It should
be noted that the City's park land was charged 2 equivalent units.
0
City's policy, the assessment value is determined by special benefit appraisal. The special
benefit appraisal indicates a value of $12,000, which is consistent with the agricultural parcels
assessment in the River Acres neighborhood. The increased effect on the general levy from
the cap of $6,000 is $73,350, bringing the total general levy portion to $748,480.50. The cost
summary from the feasibility report is enclosed for review. Also, in Table 1 is a comparison of
past pavement management projects in relation to lot size, land value and assessments.
Pros (to proceed) (Order the Project):
1. The project costs remain stable and can take advantage of good bidding
environment
2. Reduced maintenance and labor for maintaining street and storm water.
on
Pine
Howard's
River Acres
2008
Pavement
Project Name
Coulee /Countrywood
Addition
pavement
Management
Management
Area
Road
Improvement
Approx. 11,775 feet
Approx.
Approx.
Approx.
Length
1,541 feet
13,063 feet
54,121 feet
13 parcels
Number of
selected
Residential
84 parcels selected
(excluding
113 selected
949 selected
Parcels
8.11 acre
parcel)
Average Land &
Building Market
$294,076
$332,262
$334,781
$212,946
Value
Median Land &
Building Market
$281,350
$336,900
$291,200
$211,700
Value
1.48 acres
1.53 acres
Average Lot Size
(excluding a 14.6 acre
(excluding a
8.11 acre
0.51 acre
0.32 acre
parcel)
parcel)
Assessment
$6,000*
$6,150*
$5,277
**
$2,160.00
Amount
$5,524.50
Pros (to proceed) (Order the Project):
1. The project costs remain stable and can take advantage of good bidding
environment
2. Reduced maintenance and labor for maintaining street and storm water.
on
3. The project will reverse the deteriorating state of the roads and result in a new
street surface with improved ride quality and drainage.
Cons (to delay) (Do Not Order the Project):
1. Delay will create an increased project cost of approximately 5-8% annually.
This directly would mean increased assessment by corresponding amount.
2. Increased maintenance cost for the area and less maintenance dollars for
street repairs in other areas of the City as more dollars would need to be
concentrated to this area.
3. Continue to further delay the other pavement management areas.
4. No park improvements will be made.
It is recommended the Council adopt a resolution ordering the project and authorize
preparation of plans and specifications for the 2011 Pavement Management Project, Pine
Coulee and Countrywood (District 1) and Howard's Addition (District A).
A
2011 Pavement Management/West Point Douglas Road Extensio
Neighborhood Meeting Notes
November 9, 2010 1
7:00pm City Hall
Staff Present: Jennifer Levitt, Les Burshten, Gary Orloff
Consultant Present: Dave Hanson and Mike Boex from Bonestroo
Residents: 41 residents in attendance
Residents were encouraged to check the box on the sign-in sheet if they wished for a site visit to
discuss specific concerns they had regarding the project or if they desired more information.
Please see next section that summarizes issues and concerns addressed.
Presentation was made on the project by Levitt.
Questions that were asked during the general presentation:
Q: Will there be curbing in Pine Coulee?
R: Only in vicinity of 60" culverts.
Q: What will assessments be for the businesses?
R: Costs were reviewed
Q: Why did City sell the park land?
R: City Officials (at that time) made the decision.
Q: Who pays the bill for amounts that exceed the special assessment cap per the benefit
appraisal?
R: The general tax payers.
Q: Why not leave a right turn only off Hwy 61 at the existing entrance?
R: Hwy 61 is a principal arterial. Ultimately the frontage road would be extended to the north.
Ultimately 95/61 intersection would become an interchange.
Q: Will residents vote on this project?
R: December 1 st is the public hearing when the Council will take a vote to proceed with the
project or not. You will have an opportunity at the hearing to have your voice be heard.
Q: How do partial payments work?
R: You can submit a partial payment of a minimum of $500 and at any time during the 15 years
you can pay off the remaining amount.
Q: Why is the City charging 7% interest? Seems high.
R: Council had recent discussion on this. Highlights: City has always charged 7% on past
projects and feels it's equitable to continue that practice.
Q: What will the 7% interest be used for?
R: The City pays the entire project cost up front and City pays the cost when/if people don't pay.
Q: Is the 7% interest annual?
R: 7%=APR
Q: Are there any different terms or exceptions for payment/interest?
R: Elderly, disabled, and veterans have additional options. Contact the finance director for more
information.
Q: If the benefit appraisal is less than the construction cost, does that indicate a poor ROI?
R: The two are not necessarily tied together. Not all road improvements can be evaluated on a
ROI, because how do you put a price on life saved or the prevention of an incapacitating injury
on a road.
Q: What are the options to not doing the pavement management project?
R: Option is to delay, future costs may increase.
Q: Will the speed limit on TH 95 be decreased?
R: MnDOT reviews the design of the project and MnDOT has jurisdiction over what happens on
TH 95.
Summary of follow up meetings with residents that were requested:
On site meeting with Tim Maslo ski - 1 Layton Avenue on 11/17/10. Concerns with
front yard drainage adjacent to the street knowing the proposed street will be raised 6",
and concern about street drainage affecting his septic system.
Response — Reviewed with Tim that the existing storm sewer system along Layton
Avenue directly in front of his home will be replaced and the catch basin can be located
horizontally and vertically to control the street drainage so that it will actually improve
the current drainage issue. Hanson reviewed the potential for a rain garden within the
right-of-way which could also improve drainage. He also was concerned about what it
would look like and is concerned about the change in slopes for him to maintain a rain
garden. Hanson told him the City would have further communication with him if a rain
garden is chosen to be constructed in the boulevard area by his home.
2. Phone conversation (was not interested in meeting on site) with Ross Peterson — 11611
Leeward Avenue on 11/16/10. Concerns with his concrete driveway and the existing flat
slope (2" in 70') related to the proposed raising of the street 6". He wanted a guarantee
that he would not have ponding water at the end of his driveway when the project was
complete.
Hi Iffe a to) 60444VALVIUM I ILI W&MB M IMM'd MIJU
t I joy
the existing street section, therefore the street would not be raised and he would not see
any change in elevation. Hanson told him that in the final design things could change
since his property was directly south of the intersection of Leeward and Layton, and this
intersection will require changes in elevation related to his neighbor's driveway at 11599
Leeward Avenue. There will be further opportunity to review and discuss the final
design with City staff before construction begins.
3. Phone conversation with Rob Newby — 7124 Granada Avenue on 11/18/10. He said all
his questions were answered at the neighborhood meeting, but is concerned about the
future centerline elevation possibly changing with the street rehabilitation. If the
centerline elevation changes, he will have a drainage issue.
Response — He would like an onsite meeting to review and discuss his centerline issues,
however he does not want to meet until the snow melts. He said he will call once the
snow melts, which he hopes happens in the next several days.
4. Phone messages -Les Williams — 11760 Layton Avenue Hanson talked with his wife and
left two other messages trying to set a time to meet with him on site, but have not heard
back from him. After talking with his son Dean, who lives at 11627 West Point Douglas
Road, he advised that Les has drainage issue he is concerned about. Further effort will be
made to understand the drainage concern.
5. On site meeting with Dean Williams —11627 West Point Douglas on 11/18/10. Dean
wants to make sure the City does not close the right turn lane off south bound Hwy.61 at
the entrance to the residential development. He needs this connection which enables him
to driveway up his steep paved driveway to his home. In the winter he needs to take a
run at it to make it up the slippery driveway.
Response - Informed Dean that this access point is under the jurisdiction of MnDot, and
they will be requiring this access be closed as part of the West Point Douglas Road
project. He wanted to make sure the City understood his steep driveway access concerns
and his inability to get up his driveway in the winter. Informed him that proceeding with
the West Point Douglas Road Project is a Council decision and that he should attend the
public hearing
6. On site meeting with Jim Clement — 11827 Leeward Court on 11/16/10. Jim's concern
was the drainage along his north property abutting Layton Avenue. The existing drainage
swale near the existing storm sewer system does not function and he hopes this issue will
be corrected with the new street project. Jim is also concerned that raising the street
would make the situation worse.
Response — Informed Jim that the existing storm sewer would be replaced and upgraded
to meet current City standards as part of the project. While doing this work, the existing
drainage sw. # • be - • # and improved, resolving his concerns about
drainage
7. On site meeting with Jim Stoker —11640 Lockridge Avenue on 11/15/10. Jim is
concerned about drainage along the front of his property and water that may be directed
down his driveway after the road is raised 6 ".
Response — Reviewed with Jim specifically how a new driveway apron /transition section
would be constructed so water would not flow down his driveway and into his garage.
Also reviewed how the drainage would be handled with a drainage swale across the front
of his property along the newly raised street section.
8. Phone conversation with Richard Hedlund 11620 Lockridge Ave. on 11/15/10. Richard
did not want to meet on site but was interested in more information related to the
assessments and financial options for the elderly and Vets, if the project moves forward.
Response — Informed Richard that someone from the City Finance Department would call
him back with more information.
9. On site meeting with Bill Berg - 11599 Leeward Avenue Bill had several concerns; how
will his driveway culvert, sprinkler system, and his driveway approach be affected by the
street construction.
Response — Informed Bill that since his driveway is at the intersection of Leeward
Avenue and Layton Avenue, that during the design stage of the project several options
will be reviewed to deal with drainage, elevation changes, his driveway culvert, his
driveway approach and proposed concrete curb and gutter. Hanson told him that his
sprinkler system would be affected, and that he, as the property owner, would be
responsible to temporarily pull back his system during construction. Hanson told him
that he will be contacted and involved during the design phase of the project since his
property is one of the properties most affected by the proposed construction. He also
was inquiring about the proposed pond as part of the West Point Douglas Road Project,
and was questioning the option to have the storm water along West Point Douglas be
directed towards the ravine in his backyard, because there is an open area where a pond
could be created within the ravine area. We will look at his proposal and have further
discussion with him.
1 On •
their concerns with the proposed - widths, - of concrete curb, employee parking
on - access to their site, and the project sch# impact in front of
their business.
B618 curb style and that they would have the street width needed to continue their
operations as normal. Levitt suggested they review their overall site operation and
possibly look at relocating one of their driveway openings at the north end of the site.
We also discussed the project construction schedule; their preference would be to have
construction occur from mid-June to the end of August to minimize the effect on their
busy part of the season from early May to mid June. Our response was that we would
consider their schedule and how it coordinates with the Pine Coulee and Countrywood
Project.
11. Richard Koch 11620 Leeward Avenue requested a copy of the feasibility report - a copy
was hand delivered on 1.1/ to his residence.
12. Sharon Lewis 11735 Layton Avenue requested that someone contact her after 12/6/10 for
an onsite visit. Follow up will occur if project is ordered.
�
#
<4
a
0
\\
«»
+
y
2
«
CD
CD
.
?
^
;
CD
&
.
?
.>
k .
»
:d
L
_
d
CD
d
:D
.
.
� .
CD
CD
�
A SPECIAL BENEFITS APPRAISAL
RESTRICTED USE REPORT FORMAT
(BRKW File No. 6521)
SPECIAL BENEFITS VALUATION OF SEVEN RESIDENTIAL PROPERTIES
AND FOUR COMMERCIAL PROPERTIES
2011 PAVEMENT MANAGEMENT PROJECT — PINE COULEE
WEST POINT DOUGLAS ROAD EXTENSION PROJECT
CITY OF COTTAGE GROVE, MINNESOTA
VALUATION DATE: OCTOBER 18, 2010
•i
CITY OF COTTAGE GROVE
ATTN: HOWARD BLIN
COMMUNITY DEVELOPMENT DIRECTOR
7516 80 STREET SOUTH
COTTAGE GROVE, MN 55016
C
PAUL J. GLEASON
AND
WILLIAM E. PETERSEN
BR KW A INC.
REAL ESTATE VALUATION SERVICES
BRKW APPRAISALS, INC,
REAL ESTATE VALUATION SERVICES
November 8, 2010
City of Cottage Grove
ATTN: Howard Blin
Community Development Director
7516 80` Street South
Cottage Grove, MN 55016
RE: Special Benefits Valuation of Seven Residential Properties
and Four Commercial Properties
2011 Pavement Management Project — Pine Coulee
West Point Douglas Road Extension Project
Dear Mr. Blin:
In accordance with your request, we are providing you with a special benefits
appraisal pertaining to the above referenced public improvement projects proposed by
the City of Cottage Grove. The effective date of valuation is October 18, 2010, which
is the date of our inspection of the project area and subject properties. Based on our
prior agreement, this appraisal is presented in a restricted use report format, in
accordance with the requirements of the Uniform Standards of Professional Appraisal
Practice.
At your request, a total of 11 properties have been appraised herein. The purpose of
the special benefits appraisal is to provide an opinion of the increase in market value,
if any, that will accrue to each of the appraised properties as a result of proposed
street and related improvements. The intended use of the appraisal is to assist City of
Cottage Grove officials in determining the appropriate and equitable amount of
special assessments that may be levied against properties benefited by the above
proposed improvement projects. The intended users of the report are City of Cottage
Grove officials.
SPRUCE TREE CENTRE SUITE 314
1600 UNIVERSITY AVE ST PAUL MN .55104.
x451 FAX 451.446 8086 brkw brkw,ro
The value benefits, if any, of street, utility and other such public improvements
accrue to the land value component of a property, not to the value of buildings and
other improvements on the land. Consequently, this special benefits analysis is
limited to the valuation of only the land components of the properties appraised.
The before-and-after valuation methodology has been used in this appraisal, which
analyzes the market value of the subject land prior to the project in relation to the
market value of the land after the project. The difference between the before and
after opinions of market value reflects the value of special benefits to each of the
appraised properties, as of October 18, 2010, as shown below:
2011 Pavement Management Project - Pine Coulee
and West Point Douglas Drive Extension Project
Opinion of Land Values and Property Value Benefits
Property / Address
Tax
Parcel ID
Land
Area*
Value
Before
Value
After
Special Benefit
$
%
1. 11625 Leeward Avenue South
36-027-21-31-0007
0.54 ac.
$47,000
$53,000
$6,000
12.8%
2. 11620 Leeward Avenue South
36-027-21-31-0012
0.99 ac.
$76,500
$83,000
$6,500
8.5%
3. 11599 W. Point Douglas Road S.
36-027-21-42-0012
0.55 ac.
$46,000
$52,000
$6,000
13.0%
4. 11825 Leeward Court South
3 )6-027-21-34-0015
3.11 ac.
$121,000
$130,000
$9,000
7.4%
5. 11820 Lofton Avenue South
36-027-21-43-0023
1.96 ac.
$85,000
$92,000
$7,000
8.2%
16. 11860 Lockridge Avenue South
36-027-21-34-0006
1.88 ac.
$105,000
$113,000
$8,000
7.6%
7. 11344 Leeder Avenue
36-027-21-24-0001
14.60 ac.
$213,000
$225,000
$12,000
5.6%
8. 11721 Point Douglas Drive South
36-027-21-42-0021
3.84 ac.
$578,000
$628,000
$50,000
8.7%
9. 7 W. Point Douglas Road S.
36-027-21-44-0007
0.87 ac.
$202,000
$222,000
$20,000
9.9%
10. 11825 Point Douglas Road
36- 027 -21 -44 -0005
1.86 ac.
$305,000
$340,000
$35,000
11.5%
11. 11865 P oint Douglas Drive South
36-027-21-44-0014
t3.53 ac.
$307,100
$353,300
$46,200
15.0%
*Land area in acres excludes road R/W, if any
This appraisal assignment is not based on a requested minimum valuation or a specific
valuation for approval of a loan. The opinions of market value and special benefits
identified in this report were developed - independent of any undue influence.
The opinions of value assume all real estate taxes and special assessment balances, if
any, have been paid in full. The values are gross values with no allowances made for
brokerage commissions, real estate taxes or other carrying costs associated with a
property during its marketing period. This appraisal report has been prepared in
conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Foundation.
The facts and information contained in this report were obtained from sources that are
considered to be reliable and are true to the best of our knowledge and belief, but are
not guaranteed. This appraisal report is contingent upon the assumptions and limiting
conditions included within this report.
BRKW APPRAISALS, INC. PAGE 2
Your attention is directed to the following report which summarizes the data, analyses
and conclusions that support the opinions of value.
Sincerely,
BRKW APPRAISALS, INC.
Paul J. Gl�s
Certified General Real Property Appraiser
Minnesota License #4003073
William E. Petersen
Certified General Real Property Appraiser
Minnesota License #4001649
BRKW APPRAISALS, INC. PAGE 3
PURPOSE/INTENT K}F THE APPRAISAL/INTENDED USERS ..................................... %
SCOPEOF WORK ..................................................................................................... %
COMPETENCYPROVISION ...................................................................................... 3
PROPERTY RIGHTS APPRAISED .............................................................................. 3
ZONING.................................................................................................................... 3
MARKET VALUE DEFINITION ................................................................................. 4
CONTINGENT AND LIMITING CONDITIONS ........................................................... 5
DESCRIPTION OF SUBJECT PROPERTIES ............................................................... 6
DESCRIPTION OF EXISTING IMPROVEMENTS ...................................................... 1O
DESCRIPTION OF PROPOSED IMPROVEMENTS ..................................................... l2
PINE COULEE PROJECT AREA MAP ............................................................................... |4
WEST POINT DOUGLAS ROAD EXTENSION PROJECT AREA MAP ............................................ l5
20|l PAVEMENT MANAGEMENT PROJECT AERIAL MAP ..................................................... |6
CONCEPTUAL LAYOUT oF WEST POINT DOUGLAS ROAD EXTENSION .................................... 17
HIGHEST AND BEST USE ........................................................................................ l9
SPECKAX. BENEFIT CONCLUSIONS ...............,........................,.-.I9
SPECIAL BENEFIT ANALYSIS PROCESS ................................................................. 2l
OPINION OF LAND VALUES AND PROPERTY VALUE BENEFITS ........................... I%
CERTIFICATION..................................................................................................... Z3
PROFESSIONAL QUALIFICATIONS ......................................................................... 24
IDENTIFICATION OF PROPERTIES APPRAISED/LEGAL DESCRIPTIONS
The addresses, tax parcel numbers, owners and legal descriptions, some of which are
abbreviated, of the appraised properties, based on information provided by the
Washington County and the City of Cottage Grove, are presented below.
2011 Pavement Management Project - Pine Coulee
and West Point Douglas Road Extension Project
Property / Address
Tax Parcel #
Owner
Legal Description
1. 11625 Leeward Avenue S.
36-027-21-31-0007
Michael A. Kvamme
Lot 2, Block 4, Pine Coulee
Rosemary Kvamme
2. 11620 Leeward Avenue S.
36-027-21-31-0012
Richard B. & Dolores
Lot 2, Block 5, Pine Coulee
I. Koch RVC TRS
Dated 11/24/08
3. 11599 W. Point Douglas Rd. S.
36-027-21-42-0012
James J. Haines
Lot 2, Block 2, Pine Coulee
Sheri L. Haines
4. 11825 Leeward Court S.
36-027-21-34-0015
Roger L. Tokheirn
Lot 4, Block 6, Pine Coulee
Mary C. Tokheirn
5. 11820 Lofton Avenue S.
36-027-21-43-0023
Carmen M. Brown
Lot 13, Block 2, Countrywood
6. 11860 Lockridge Avenue S.
36-027-21-34-0006
Thomas R. McNiff
Lot 13, Block 1, Country
7. 11344 Leeder Avenue
36-027-21-24-0001
Michael J. Olson
Part of SEl/4-NW1/4 lying SLY
Mary L. Olson
of HWY 61, Sec. 36-027-21
8. 11.721 Point Douglas Drive S.
36-027-21-42-0021
J INV
RLS No. 71 Tract A-B & C
R LAKELAND INV
and part of Tract D
9. 11827 W. Point Douglas Rd. S.
36-027-21-44-0007
RSR Gerlach, LLC
RLS No. 51 Tract B
(except RIW)
10. 11825 Point Douglas Road
36-027-21-44-0005
Dubois Remodeling
RLS No. 51 Tract A
Depot, LLC
(except R/W)
11. 11865 Point Douglas Drive S.
36-027-21-44-0014
Alan E. Swenson
Lengthy, on file
Rhonda K. Ott-Swenson
BRKW APPRAISALS, INC. PAGE I
PURPOSE /INTENT OF THE APPRAISAL /INTENDED USERS
The purpose of the appraisal is to develop an opinion of the value of special benefits,
if any, that will accrue to seven residential properties and four commercial properties
resulting from the proposed 2011 Pavement Management Project - Pine Coulee and the
West Point Douglas Road Extension Project in Cottage Grove, Minnesota. The
aforementioned projects will be constructed within the same general time period. The
intent of the special benefits appraisal is to assist City of Cottage Grove officials in
determining the appropriate and equitable amount of special assessments that may be
levied against benefiting properties located in the area of the proposed improvements.
The intended users of the report are officials of the City of Cottage Grove.
The City of Cottage Grove is proposing to rehabilitate several streets in the Pine
Coulee area (which includes rural residential subdivisions Pine Coulee and
Countrywood) as part of its 2011 Pavement Management Project. Streets to be
rehabilitated include Lofton Avenue South, Lockridge Avenue South, West Point
Douglas Drive, Leeward Avenue South, Layton Avenue South, Lehigh Avenue South
and Leeward Court South. Leeward Avenue South between the Layton Avenue South
loop will be fully reconstructed. In addition, existing West Point Douglas Road will
be reconstructed and an extension will be constructed southeast to the existing
intersection at Highway 61 and Highway 95 (Manning Avenue). Project maps and a
more detailed description of the proposed improvements are presented on later pages.
A total of 11 properties within the area of the proposed improvements have been
appraised in this report. The opinions of special benefits developed in this appraisal
for the appraised properties will be used by the City of Cottage Grove as a basis for
levying special assessments to other benefiting properties in the area of the projects.
The exhibits on pages 14 -18 indicate properties proposed for assessment. A viewing
of the project area and exterior inspections of the 11 appraised subject properties
were made on October 18, 2010, which is the effective date of valuation.
Since the benefits of public improvement projects such as street rehabilitation accrue
to the land component of properties only, the valuation in this report involves land
only. Opinions of the market value of the subject properties have been developed in
this appraisal using the Direct Sales Comparison Approach. This approach, which is
the one most appropriate for valuing land, involves the comparison and analysis of
land parcels recently sold which are similar to the land being appraised. The
application of the Cost and Income Approaches typically applies only when a property
valuation includes buildings and other improvements having contributory value.
The subject land parcels are valued before and after the proposed project
improvements. The difference between the before and after opinions of market value
is the special benefit value attributable to the proposed project.
BRKW APPRAISALS, INC. PAGE 2
This report is presented in the restricted use report format in compliance with the
reporting requirements of Standards Rule 2-2 (c) of the Uniform Standards of
Appraisal Practice (USPAP). The results of the analysis and the conclusions
pertaining to the value benefits to the subject properties are presented in an
abbreviated manner in this report, at a level of detail sufficient for the needs of the
intended users. Additional notes, analyses, and supporting data are retained in the
appraisers' office workfile. The opinions and conclusions stated in this report may
not be understood properly without additional information in the workfile. The report
is intended to be read and used only by the intended users identified herein.
M E1312
Paul J. Gleason has been a full-time professional real estate appraiser since April
1992. William E. Petersen has been a full-time professional real estate appraiser
since November 1986. Provided later in this report are summaries of their
professional qualifications. The educational training and extensive work experience
of the appraisers, each of whom is licensed as a Certified General Real Property
Appraiser, enable completion of this appraisal assignment in a professional manner
consistent with the intent of the competency provision of the Uniform Standards of
Professional Appraisal Practice.
PROPERTY RIGHTS APPRAISED
The property rights appraised are those of the fee simple estate.
MINIM
Zonine District
1.
11625 Leeward Avenue South
R-2, Residential Estate District
2.
11620 Leeward Avenue South
R-2, Residential Estate District
3.
11599 W. Pt. Douglas Road South
R-2, Residential Estate District
4.
11825 Leeward Court South
R-2, Residential Estate District
5.
11820 Lofton Avenue South
R-2, Residential Estate District
6.
11860 Lockridge Avenue South
R-2, Residential Estate District
7.
11344 Leeder Avenue
AG -1, Agricultural Preservation District
8.
11721 Point Douglas Drive South
B-2, Retail Business District
9.
11827 W. Point Douglas Road South
B-3, General Business District
10.
11825 Point Douglas Road
B-3, General Business District
11.
11865 Point Douglas Drive South
B-3, General Business District
BRKW APPRAISALS, INC. PAGE
' 1 elffo
Market Value as defined by the United States Department of the Treasury through the
Comptroller of the Currency and the Office of Thrift Supervision is:
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,
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:
♦ buyer and seller are typically motivated;
♦ both parties are well informed or well advised, and each acting in what he
considers his own best interest;
♦ a reasonable time is allowed for exposure in the open market;
♦ payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto; and
♦ 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.
This definition is also recognized by the Appraisal Foundation and is part of the
Uniform Standards of Professional Appraisal Practice (USPAP).
BRKW APPRAISALS,
This appraisal report is subject to the following Limiting Conditions and
Assumptions:
1. The legal descriptions contained herein are assumed to be correct.
2. The appraiser assumes no responsibility for matters legal in nature affecting
the property appraised or the title thereto, nor does the appraiser render any
opinion as to the title, which is assumed to be good and marketable. The
property is appraised as though under responsible ownership.
3. No survey has been prepared of the property by the appraiser and no
responsibility is assumed in connection with such matters. Sketches in this
report are included only to assist the reader in visualizing the property.
4. Information furnished by others is assumed to be reliable. However, the
appraiser assumes no responsibility for its accuracy.
5. In cases where no soil tests have been submitted, the appraiser has assumed a
good subsoil condition, subject to visual observations noted in the report.
6. The appraiser assumes that there are no hidden or unapparent conditions of the
property, subsoil or structures, which would render it more or less valuable.
The appraiser assumes no responsibility for such conditions or for engineering
that might be required to discover such factors.
7. The appraiser is not required to give testimony or appear in court because of
having made this appraisal with reference to the property in question, unless
arrangements have been previously made.
8. The distribution of the total valuation in this report between land and
improvements applies only under the highest and best use of the property.
9. The Bylaws and Regulations of the professional appraisal organizations with
which the appraiser is affiliated govern disclosure of the contents of the
appraisal report.
10. 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 proper written qualifications and only in its entirety.
11. Neither all nor any part of the contents of this report, or a copy thereof, shall
be conveyed to the public through advertising, public relations, news, sales or
any other media without written consent and approval of the appraiser. Nor
shall the appraiser, firm or professional organization of which the appraiser is
a member be identified without the written consent of the appraiser.
12. The value conclusion assumes all taxes and special assessments are paid in full.
13. The after improvements valuation in this appraisal assumes proposed
improvements have been completed in accordance with the description of the
proposed work provided to the appraisers by the City of Cottage Grove.
BRKW APPRAISALS, INC, PAGE 5
Neighborhood
The subject properties are located in an established residential and commercial area in
the extreme southeast part of Cottage Grove, commonly referred to as the Pine Coulee
area. The properties are in the southwest quadrant of Highway 61 and Highway 95
(Manning Avenue South). Properties require private well and septic since no public
utilities are available.
Sole access for residential and commercial properties from Highway 61 is at an
unsignalized access opening on the highway roughly midway between Lockridge and
Lofton Avenues. Left turns to and from the subject area are provided through a break
in the median. Highway 61 at this location has a traffic count of 29,500 vehicles per
day.
The majority of the residential lots are within two subdivisions: Pine Coulee and
Countrywood. There are 37 platted residential lots in Countrywood. One lot is
vacant and one house uses a double lot. Homes were built between 1974 and 1988,
with the exception of two. Home sites range from 1.47 to 3.51 acres. Most homes are
assessed in the mid - $200,000 to mid - $300,000 range for taxes payable in 2011. There
are 48 platted residential lots outside of Countrywood, 39 in Pine Coulee and nine in
R.L.S. #83. Homes were built between 1963 and 1988. Home sites range from 0.53
to 6.12 acres. Assessed values for 2011 taxes range from $188,700 to $323,200.
Highway 61 in the southeast part of Cottage Grove, and into nearby Hastings, is strip
commercial in character with marine, RV, automobile and power equipment businesses
typical.
Residential Properties
Following are brief descriptions of the seven appraised residential properties, which
include six platted single - family lots and one 14.60 -acre agricultural -zoned parcel
used as a residential building site. Land areas are provided by Washington County
and subject to survey.
1. 11625 Leeward Avenue South
BRKW APPRAISALS,
2. 11620 Leeward Avenue South
This property fronts the westerly side of Leeward Avenue South less than 100 feet
southwesterly of Lehigh Avenue South. The lot contains 43,078 square feet or 0.99
acres. Based on the inspection coupled with a review of aerial photos, the land is
generally level and has many mature trees throughout. The interior lot has the shape
of an irregular rectangle with 206.54 feet of frontage on Leeward Avenue South. The
estimated market value for payable taxes in 2011 is $196,300, which is divided
$80,400 land and $115,900 dwelling. The house on the site was built in 1969, which
is typical for the immediate area, where most of the homes date from the mid -1960s to
the mid- 1970s.
3. 11599 West Point Douglas Road South
This property fronts the southwesterly side of West Point Douglas Road South 100
feet northwesterly of Lockridge Avenue South. The land area is 24,000 SF or 0.55
acres. The interior lot has 120 feet of frontage on West Point Douglas Road South
with a depth of 200 feet. The site is generally level, at street grade, and has trees
along the edges with the house in the central portion. The estimated market value for
taxes payable in 2011 is $237,900, divided $80,400 land and $157,500 dwelling. The
house was built in 1982.
4. 11825 Leeward Court South
This property is on the south side of the Leeward Court South cul -de -sac. The land
area is 135,428 SF or 3.11 acres. Frontage on the cul -de -sac is about 128 feet. The
cul -de -sac paved turnaround lane is 13 feet wide, which is less than the required
minimum of 20 feet by the current fire code. The lot is wooded and has an elevated
view of the Mississippi River, with the rear of the site having a downward slope.
Approximately 37% of the lot is encumbered by a drainage and utility and walkway
easement. The estimated market value for taxes payable in 2011 is $280,500, which
is divided $126,700 land and $153,800 dwelling. The house was built in 1964.
5. 11820 Lofton Avenue South
This property fronts the westerly side of Lofton Avenue South adjacent to Erickson
Marine. The lot contains 85,203 SF or 1.96 acres, with 200 feet of frontage on Lofton
Avenue. The lot is generally level, slightly above street grade and partially wooded.
The metal storage buildings of Erickson Marine are adjacent along the northeasterly
lot line. The estimated market value for taxes payable in 2011 is $235,400, which is
divided $110,100 land and $125,300 dwelling. The house was built in 1988.
BRKW APPRAISALS, INC. PAGE 7
6. 11860 Lockridge Avenue South
This property is on the cul -de -sac at the southwesterly termination of Lockridge
Avenue South. The land area is 82,023 SF or 1.88 acres. The rectangular lot is
wooded and has an elevated view of the nearby Mississippi River. The front of the
site is at a higher elevation than the rear, which is within a DNR Protected
Watercourse with a creek. Approximately 27% of the lot is encumbered with a
flowage easement. The estimated market value for taxes payable in 2011 is $356,900,
which is divided $114,400 land and $242,500 dwelling. The house was built in 1974.
7. 11344 Leeder Avenue
This is a triangular- shaped agricultural -zoned parcel which is currently used as one
residential building site. Land area is 14.60 acres. The property is guided Rural
Residential and may not be subdivided. The property fronts the southerly side of
Highway 61, but has no access from the highway. The westerly 40 %, more or less, of
the land is used for crops. A single - family residence and outbuildings are in the
central part of the parcel. The easterly 60 %, more or less, of the site is wooded. No
public water or sanitary sewer is available.
Access to the property is from adjacent Layton Avenue South via a private gravel
driveway on a 60- foot -wide public right of way. The driveway is indicated as a
private road on the street sign. The estimated market value for taxes payable in 2011
is $371,200, which is divided $237,200 land and $134,000 dwelling. The house on
the land was built in 1973. The property is homesteaded and classified as residential
by the Washington County Assessor.
Commercial Properties
The four commercial properties are along the southerly side of Highway 61. Three of
the properties are improved and operational and the fourth is undeveloped. The
highway frontage road is called West Point Douglas Road. It is noted that the
highway frontage road is alternately referred to on various maps and informational
data as Point Douglas Road South, West Point Douglas Road South, Point Douglas
Drive South and Point Douglas Road West. The addresses below for the appraised
properties are those provided by Washington County.
BRKW APPRAISALS, INC. PAGE 8
9. 11827 West Point Douglas Road South
This lot, which is improved with a retail sales and service facility for Gerlach
Outdoor Power Equipment, is located at the southeasterly corner of West Point
Douglas Road and Lofton Avenue South. The land area is 38,032 SF or 0.87 acres.
The rectangular corner lot has roughly 192 feet along the highway frontage road,
which provides access. There also is about 214 feet of frontage and access on Lofton
Avenue South. The estimated market value for taxes payable in 2011 is $405,300,
which is divided $209,200 land and $196,100 improvements. The county provides a
building construction date of 1972 with an addition in 1999.
10. 11825 Point Douglas Road
This parcel fronts the southwesterly side of West Point Douglas Road approximately
200 feet southeast of Lofton Avenue South. The land area is 81,180 SF or 1.86 acres.
The interior lot is level and rectangular in shape with about 200 feet of road frontage.
The lot has direct access on the fronting street. The site is currently improved with
two buildings providing showroom, office and storage for Dubois Design and
Remodeling, a contractor for siding, doors, gutters and remodeling. The estimated
market value for taxes payable in 2011 is $673,000, which is divided $324,700 land
and $348,300 improvements.
11. 11865 Point Douglas Drive South
This undeveloped commercial -zoned parcel contains 153,912 SF or 3.53 acres, of
which 106,358 SF or 2.44 acres is considered buildable. The balance of the parcel,
approximately 1.09 acres, is unbuildable due primarily to topographical issues
including severe slope. The buildable portion is irregular in shape, generally level
and partially wooded. The property is near the dead end of existing West Point
Douglas Road and adjacent to the unimproved right of way for the proposed
construction of West Point Douglas Road to the Manning Avenue intersection.
BRKW APPRAISALS, INC. PAGE 9
Pine Coulee 2011 Pavement Management Project Area
The Pine Coulee project area includes several streets which are depicted in the color
map on page 16:
1. The streets within the project area were originally constructed in the early
1970s and are classified rural residential.
2. The streets are relatively thin with respect to the thickness of the pavement and
the underlying aggregate base. According to engineering tests, the average
street section consists of 3" bituminous paving over 2.75" of gravel.
Existing Street Sections - Pine Coulee/Countrywood
No.
Location
Materials
1
11880 Lofton Ave
3" Bituminous, 3.5" Gravel, 10" Lean Clay, Sand
2
11821 Lockridge Ave
4" Bituminous, 6" Gravel, 6" Sand with Silt
3
11701 Lockridge Ave
3" Bituminous, 3" Gravel, 4.5" Sand
4
11600 Lockrid ge Ave
3" Bituminous, 4" Gravel, 2" Sand, 6" Sand with Silt
5
11566 Leeward Ave
2.5" Bituminous, 3" Gravel, 5.5" Sand, Mixed Soils & Organics
6
11660 Lehigh Ave
2.5" Bituminous, 7" Mixed Soils, Clean Sand
7
11700 Lehigh Ave
3" Bituminous, 2" Gravel, Mixed Soils
8
11827 Leeward Ct
3" Bituminous, 3" Gravel, 3" Sand, Clay & Organics
9
11680 Leeward Ave
1.5" Bituminous, 1" Gravel, 5" Mixed Soils, Clay & Organics
10
11760 Layton Ave
4" Bituminous, 3" Gravel, Clean Sand
11
11680 Layton Ave
4" Bituminous, 2" Gravel, 7" Sand with Silt
12
11570 Layton Ave
3.5" Bituminous, 3" Gravel, 4" Mixed Soils, 7" Sand with Silt
Source: Bonestroo
3. Generally, streets range from 21 to 24 feet in width. The only exception is the
Leeward Court South cul-de-sac pavement which is 13 feet wide at the
turnaround. The minimum access width requirement per the fire code is 20
feet.
4. The Pavement Condition Index (PCI) of these streets ranges from 22 to 40 on a
scale of I to 100, with 100 being the condition of a new street. Streets in the
22 to 40 PCI range are classified as "poor" and "very poor". Seal coats and
overlays are no longer viable options to maintain the streets.
5. The streets have no concrete curb and gutter. The original gravel shoulders
have been either overlayed with new bituminous or covered with vegetation
over time.
6. There is a very small amount of existing storm sewer within the area. Existing
storm sewer has been pieced together over time with product materials and
construction methods that do not follow typical City of Cottage Grove
standards.
BRKW APPRAISALS, INC. PAGE 10
7. There is no public sanitary sewer or watermain.
8. Lofton Avenue is the only street that consistently has culverts at driveways.
Other streets have little to no ditch definition. Yards have typically been
graded out to the edge of the street. Drainage follows the street and must cross
over driveways.
9. Leeward Avenue has three parallel 60" culverts that convey runoff through a
major drainway. The street section adjacent to the cross culverts has
bituminous curb and gutter.
10.The sole access into the project area is from an unsignalized access on
Highway 61, which provides left turns across a break in the median. The
highway carries 29,500 vehicles per day.
West Point Douglas Road Extension Project Area
1. West Point Douglas Road has one access on Highway 61 approximately midway
between Lofton Avenue South and Lockridge Avenue South. The access is
available to both northbound and southbound traffic on the highway. There is
a break in the highway median to allow for left turns.
2. West Point Douglas Road extends from its present access on Highway 61
approximately 1,100 feet southeast where it terminates at a residential
driveway. The driveway is approximately 700 feet northwest of the
intersection of Highway 61 and Highway 95 (Manning Avenue South). The
area between the residential driveway and the intersection is undeveloped.
3. West Point Douglas Road has bituminous paving ranging from 2" to 2.25" thick
over an aggregate base course ranging from 3.5" to 18" thick.
4. There is no public sanitary sewer or watermain.
5. There is no curb and gutter. The storm sewer system utilizes the adjacent
Highway 61 ditch as a primary means to convey flow out of the area.
Reportedly, some areas have sheet flow of water across the road to discharge
into the highway ditch.
6. The intersection of Highway 61 and Highway 95 is a signalized three - legged
intersection.
BRKW APPRAISALS, INC. PAGE 11
Pine Coulee 2011 Pavement Management Project
1. For the majority of the streets, it is proposed to add 2 to 4 inches of add -rock
over the existing pavement prior to reclamation. The add -rock, pavement and
existing gravel base will be reclaimed to a depth of approximately eight inches.
The reclaimed material will be shaped and graded to allow for 3.5 inches of
new pavement. The resulting street section will have 3.5 inches of new
bituminous over 7 to 8 inches of reclaimed aggregate base. The streets will be
raised 5 to 8 inches, improving the depth of the adjacent shallow ditches and
bringing uniformity to the pavement sections.
2. The section of Leeward Avenue between the Layton Avenue loop will be
reconstructed. Subgrade excavation will be performed, followed by placement
of an aggregate backfill, construction of aggregate base, and paving.
3. All streets will remain the same width with the exception of the Leeward Court
South cul -de -sac. The existing pavement at the cul -de -sac turnaround has a
width of 13 feet. The turnaround will be widened to meet the minimum access
width of 20 feet per the fire code.
4. Each driveway will receive an apron, either bituminous or concrete depending
on what exists in the before situation.
5. A bituminous bump -out will be constructed for each mailbox, helping to reduce
wheel rutting adjacent to the edge of the road.
6. Existing storm sewer will be replaced with materials conforming to current city
standards.
7. Existing bituminous curb and gutter along the culverts at Leeward Avenue will
be replaced with concrete curb and gutter.
8. Approximately seven infiltration features will be constructed along the project
corridor to provide water quality treatment and runoff volume reduction.
Residents will be offered the option of rain gardens instead of turf grass in
these locations.
2. The intersection of Highways 61 and 95 will become a four - legged intersection,
with West Point Douglas Road constituting the fourth leg.
3. The signal system at the intersection will be modified to allow for controlled
access onto Highway 61 from West Point Douglas Road.
4. The existing Highway 61 access will be closed and graded as a continuation of
the existing ditch.
5. A right turn lane at the Highway 95 intersection will be constructed for
southbound Highway 61 traffic. A left turn lane will be constructed at the
Highway 95 intersection for northbound traffic on Highway 61.
6. Approximately 300 feet of Lofton Avenue South will be reconstructed as it
extends southwesterly of West Point Douglas Road. This will allow for
drainage issues to be addressed through the intersection.
7. Parking bays will be provided along the easterly side of West Point Douglas
Road to maintain current parking that occurs in that area. Parking bays will
also be provided on reconstructed Lofton Avenue South.
8. Existing accesses will be reconstructed to the right -of -way line. Surmountable
curb will be used in areas where existing parking areas are located directly
adjacent to the roadways.
9. Barrier curb will be installed along the entire east side of West Point Douglas
Road to prevent parking in the ditch area between the roadway and Highway
61.
10. The existing segment of West Point Douglas Road will continue to drain into
the adjacent Highway 61 ditch.
1 1 . The new segment of West Point Douglas Road will drain to a storm water
feature that is proposed to include a pre - treatment water quality cell and
biofiltration basin to provide water quality treatment.
12. The new portion of West Point Douglas Road will be constructed with an urban
road section with curb and gutter and catch basins at appropriate locations to
provide proper drainage.
13.The West Point Douglas Road extension will provide the primary an• sole
access from • residential properties Pine Coulee project
area, including the Pine Coulee and Countrywood subdivisions, as well as to
the commercial properties fronting West Point Douglas Road.
BRKW APPRAISALS, INC. PAGE 13
PINE COULEE & HOWARD'S ADDITION
CITY OF COTTAGE GROVE, MN FIGURE 3
2011 PAVEMENT MANAGEMENT PR03ECT (= oitag e Grove
1:�4B\48102890\CAD\DWGW10289ZFDO6.DM DATE: COMM:
BRKW APPRAISAI,S, INC. PAGE 14
COTTAGE GROVE, MINNESOTA FIGURE: I
WEST POINT DOUGLAS ROAD EXTENSION
1:\48WIG2840yCA \DW(3�1810284ZFDO3.DWG DATE: 10/14110
COMM: 4810294
BRKW APPRAISALS, INC. PAGE 15
\
�>
f \{
4�<
\ D
\/
\ �
\
ƒ
\f\
\/\
\ \\
tu \\ /
LU
f u
I=
-
w
0
a
�
O
z
7
Q
4
K
4
m
\
4
�
¢
q
r -
r-I
P.
00
rl
I
Highest and Best Use - Before Proposed Improvements
As Vacant The highest and best use of each of the platted residential lots is for a
single family homesite, which is how they are currently used. The 14.60 -acre parcel
zoned AG -1, Agricultural Preservation District may not be subdivided. Its highest
and best use is for one building site, which is how it is now used. The four
commercial -zoned lots in the West Point Douglas Road Extension Project area have a
highest and best use for commercial purposes in conformance with their existing
zoning.
As Improved Only the land components of the subject properties are being
appraised. Therefore, the highest and best use, as improved, is not addressed.
Highest and Best Use - After Proposed Improvements
After the proposed street and related improvements are completed, the highest and
best use of the subject properties is unchanged relative to the before improvements
position.
SPECIAL BENEFIT CONCLUSIONS
Before the proposed improvements, the roads in the project area are old and
deteriorated. The roadways are approaching the end of their physical lives. It
can be anticipated that further deterioration will result in a worsening of
problems associated with advanced age, including improper drainage, uneven
driving surfaces, increased formation of potholes, etc.
2. It is recognized that the condition and quality of streets serving and fronting
residential properties influences the value, curb appeal and general desirability
of the properties.
3. The proposed rehabilitation of the roads serving the subject properties will
substantially improve the safety, convenience and general appeal of access into
and out of the subject properties. The project will reverse the deteriorating
state of the roads and result in new street surfacing.
4. Safety aspects for vehicles traveling on a new street are enhanced by the
elimination of potholes, cracks, etc. Street icing problems are reduced as water
is more efficiently diverted off the roadway surface that could otherwise
collect in the deteriorated street areas during frost seasons.
5. The installation of rain gardens in the Pine Coulee project area will better
handle heavy rain events and eliminate ponding of water and /or washouts along
roadways.
KW APPRAISALS, INC. PAGE 19
6. The raising of the streets by 5 to 8 inches in the Pine Coulee project area will
improve overall drainage and water runoff, improving the depth of existing
drainage ditches along the roadways.
7. The creation of a wider turnaround lane on the Leeward Court South cul -de -sac
will increase the quality of ingress and egress for emergency vehicles.
8 The special benefit accruing to each of the properties in the project areas can
vary somewhat from property to property. This is due to differences among the
properties with respect to lot size and property value, among other factors.
9. The closing of the existing Highway 61 access on West Point Douglas Road, in
conjunction with the extension of West Point Douglas Road to the signalized
highway intersection at Manning Avenue, will increase overall safety into the
area. The new access at the signalized Highway 61 /Highway 95 intersection
will create a safer ingress and egress for area residents and for owners,
employees and patrons of the commercial properties.
In the before situation, the existing access into the area on Highway 61 is
uncontrolled by a signal system and requires left turns through a break in the
median on a highway carrying 29,500 vehicles per day. The West Point
Douglas Road Extension Project results in a safer access route to and from the
highway, benefitting all area properties. Commercial properties in particular
rely heavily on good access quality. The ease, convenience and safety with
which vehicles can enter and exit a commercial establishment is a significant
factor that contributes at least in part to the success of that establishment.
10.A significant amount of benefit resulting from the projects is special, attaching
to the properties directly fronting and accessing the rehabilitated streets,
including the subject properties.
BRKW APPRAISALS, INC. FAGS 20
Arriving at an opinion of special value benefits accruing to each of the subject
properties as a result of the proposed improvements is accomplished by developing
"before improvements" and "after improvements" opinions of market value for the
eight appraised land parcels. The improvements on the land are concluded to have the
same value contributions to the total property value in both the "before and after"
improvements positions. Consequently, the opinion of direct value benefits from the
public improvements project can be reliably developed by analyzing the value of the
land only, by processing the Direct Sales Comparison Approach.
The Direct Sales Comparison Approach, which involves the comparison of recently
sold land parcels similar to the subject land parcels, is applied to the valuation of the
subject properties. The comparable sales are analyzed and adjustments are made for
value - related differences relative to the subject properties. The result of the analysis
and adjustments is the generation of value indications for each of the appraised
subject properties. The strengths and weaknesses of each comparable sale and its
value indication are evaluated before arriving at a final value opinion of each subject
property.
Additional data and analyses employed during the before - and -after valuation process,
including adjustment grids, are retained in the office workfile at BRKW Appraisals.
Opinion of Land Value Before Improvements
The subject properties vary greatly with respect to type, size and value. Accordingly,
the comparable sales are comprised of several different land types. The appropriate
comparable sales were chosen in the valuation of each of the subject properties. After
adjustments are made to the prices of the comparable land sales for value - related
differences in relation to the subject land, the comparables provide value indications
for each of the subject properties. Before - improvements value opinions are developed
for each of the subject properties based on the value indications of the comparable
sales. The appraisers reviewed current listings of land, since that often provides an
indication of present values. The opinions of value for the subject properties prior to
the proposed street and related improvements are shown on the next page.
1 r
11 11 iiiiiiiiij iiiiiiiiiiiiilliil
u— Mom
Similar to the before - improvements valuation, in the after - improvements valuation the
comparable sales are again analyzed and compared to the subject land. An after -
improvements value opinion is developed for each of the subject properties based on
the value indications provided by the comparable sales. The opinions of value after
improvements for each subject property are shown on the next page.
BRKW APPRAISALS, INC. PAGE 21
Special Value Benefits From Improvements Project
The before-improvements values are subtracted from the after - improvements values,
resulting in opinions of special value benefits to each of the subject properties
resulting from the proposed roadway rehabilitation project, as indicated below.
2011 Pavement Management Project - Pine Coulee
and West Point Douglas Drive Extension Project
Opinion of Land Values and Property Value Benefits
Property / Address
Tax
Parcel ID
Land
Area*
Value
Before
Value
After
Special Benefit
$
%
1. 11625 Leeward Avenue South
36-027-21-31-0007
0.54 ac.
$47,000
$53,000
$6,000
12.8%
2. 11620 Leeward Avenue South
36-027-21-31-0012
0.99 ac.
$76,500
$83,000
$6,500
8.5%
3. 11599 W. Point Douglas Road S.
36-027-21-42-0012
0.55 ac.
$46,000
$52,000
$6,000
13.0%
4. 11825 Leeward Court South
36-027-21-34-0015
3.11 ac.
$121,000
$130,000
$9,000
7.4%
5. 11820 Lofton Avenue South
36-027-21-43-0023
1.96 ac.
$85,000
$92,000
$7,000
8.2%
6. 11860 Lockridge Avenue South
36-027-21-34-0006
1.88 ac.
$105,000
$113,000
$8,000
7.6%
7. 11344 Leeder Avenue
36-027-21-24-0001
14.60 ac.
$213,000
$225,000
$12,000
5.6%
8. 11721 Point Douglas Drive South
36-027-21-42-0021
3.84 ac.
$578,000
$628,000
$50,000
8.7%
. 11827 W. Point Douglas Road S.
36-027-21-44-0007
0.87 ac.
$202,000
$222,000
$20,000
9.9%
10. 11825 Point Douglas Road
36-027-21-44-0005
1.86 ac.
$305,000
$340,000
$35,000
1 1.5%
11. 11865 Point Douglas Drive South
36-027-21-44-0014
3.53 ac.
$307,100
$353,300
$46,200
*Land area in acres excludes road R/W, if any
B. APPRAISALS, INC. PAGE22
CERTIFICATION
The undersigned does hereby certify that in this appraisal report:
1 . This appraisal assignment is not based on a requested minimum valuation or specific
valuation for approval of a loan. The estimate of market value identified in this
report was developed independent of any undue influence.
2. Neither our engagement to make this appraisal (or any future appraisals for this
client), nor any compensation, therefore, are contingent upon the development or
report of a predetermined value or direction in value that favors the cause of the
client, the amount of value estimate, the attainment of a stipulated result, or the
occurrence of a subsequent event directly related to the intended use of the appraisal.
3. Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
4. We have no present or contemplated future interest in the real estate that is the
subject of this appraisal report.
5. We have no personal interest or bias with respect to the subject matter of this
appraisal report or the parties involved.
6. To the best of our knowledge and belief the statements of fact contained in this
appraisal report upon which the analyses, opinions and conclusions expressed herein
are based, are true and correct.
7. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are our personal, impartial, and unbiased
analyses, opinions, and conclusions.
8. This appraisal report has been made in conformity with and is subject to the
requirements of the Code of Professional Ethics and Standards of Professional
Conduct of the Appraisal Institute, and the Uniform Standards of Professional
Appraisal Practice.
9. No one provided significant professional assistance to the persons signing this
certification.
10. We have made a personal inspection of the property that is the subject of this report.
11. The use of this report is subject to the requirements of the Appraisal Institute
relating to review by its duly authorized representatives.
12. As of the date of this report, Paul J. Gleason has completed the Standards and Ethics
Education Requirement of the Appraisal Institute for Associate Members.
13. The by -laws and regulations of the Appraisal Institute govern disclosure of the
contents of this appraisal report.
14. 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 he /she is connected, or
any reference to the Appraisal Institute or MAI designation) shall be disseminated to
the public through advertising media, public relations media, news media, sales
media, or any other public means of communication without the prior written consent
and approval of the undersigned.
15. We have the knowledge and experience to complete this appraisal in a competent
manner. Neither our company nor ourselves individually have been sued by a
regulatory agency or financial institution for fraud or negligence involving an
appraisal report.
Paul J. GleWon William E. Petersen
Certified General Real Property Appraiser Certified General Real Property Appraiser
Minnesota License #4003073 Minnesota License 44001649
BRKW APPRAISALS, INC. PAGE 23
PROFESSIOrIAL Q11ALIFICATIO11S
PAUL J. GLEASON
BRKW APPRAISALS, INC.
1600 University Avenue, Suite 314
St. Paul, Minnesota 55104
Telephone: (651) 646 -6114
Facsimile: (651) 646 -8086
e -mail: pgleason @brkw.com
PROFESSIONAL MEMBERSHIPS AND ASSOCIATIONS
General Associate Member - The Appraisal Institute
To date, all required courses for Member of Appraisal Institute (MAI)
designation have been taken and course examinations passed; Comprehensive
Examination for MAI designation has been passed.
LICENSE
Certified General Real Property Appraiser - State of Minnesota —
License #4003073
EDUCATION
University of Wisconsin at La Crosse, Wisconsin, 1985
Bachelor of Science Degree in Business Administration
PROFESSIONAL REAL ESTATE STUDIES
The Appraisal Institute
Course 110:
Appraisal Principles (examination passed), 1994
Course 120:
Appraisal Procedures (examination passed), 1994
Course 210:
Residential Case Study, 1994
Course 310:
Basic Income Capitalization, 1996
Course 410:
National Uniform Standards of Prof. Appraisal Practice, 2003
Course 420:
Business Practices and Ethics, 2003
Course 510:
Advanced Income Capitalization, 2002
Course 520:
Highest and Best Use and Market Analysis, 2000
Course 530:
Advanced Sales Comparison and Cost Approaches, 1999
Course 540:
Report Writing and Valuation Analysis, 2001
Course 550:
Advanced Applications, 2000
Prosource Educational Services, St. Paul, MN
Appraisal
101:
Intro to Appraisal Principles I, 1992
Appraisal
102:
Intro to Appraisal Principles I1, 1992
Appraisal
103:
Intro to Appraisal Practices 1, 1992
Appraisal
104:
Intro to Appraisal Practices 11, 1992
Appraisal
105:
Intro to Appraisal Standards and Ethics, 1992
Numerous Additional Seminars and Classes For Continuing Education From
Appraisal Institute and Other Sources, 1993 - present
I'RKW APPRAISALS, INC. PAGE 24
Professional Qualifications - Paul J. Gleason Page 2
EXPERIENCE
Principal — BRKW Appraisals, Inc., St. Paul, MN 1/07-present
Staff Appraiser — BRKW Appraisals, Inc., St. Paul, MN 10/93-12/06
Certified Appraisers, Excelsior, MN 8/93 - 10/93
Stiles Appraisals, Inc., Plymouth, MN 4/92 - 08/93
PARTIAL LIST OF CLIENTS
City of Burnsville City of Cottage Grove
City of Eagan City of Plymouth
City of Savage City of Woodbury
Dakota County Parks Department M&I Bank
Minnesota Bank & Trust Minnesota Department of Transportation
Various other communities, counties, attorneys and individuals
Revised: October 2010
BRKW APPRAISALS, INC. PAGE25
.. iII 1, 1
WILLIAM E. PETERSEN
BRKW APPRAISALS, INC. Telephone: (651) 646 -6114
1600 University Avenue, Suite 314 Facsimile: (651) 646 -8086
St. Paul, Minnesota 55104
EDUCATION:
D.D.S. Degree, School of Dentistry, University of Minnesota, Minneapolis, MN 1970
St. Paul Central High School, St. Paul, MN 1963
PROFESSIONAL REAL ESTATE STUDIES
S.R.E.A. Course 101: "Introduction to Appraising Real Property ", 1987
S.R.E.A. Course 102: "Applied Residential Property Valuation ", 1988
S.R.E.A. Course 201: "Principles of Income Property Appraising ", 1987
S.R.E.A. Course 202: "Applied Income Property Valuation ", 1989
Appraisal Institute Course 410: "Standard of Professional Practice (Part A) ", 1991
Appraisal Institute Course 420: "Standards of Professional Practice (Part B) ", 1991
Advanced Yield Capitalization, Prosource, 1993
How to Avoid Environmental Hazards Liability, Prosource, 1994
1994 Appraisal Standards and Regulatory Update, Prosource, 1994
Discounted Cash Flow Analysis, University of St. Thomas, 1994
Appraisal 205: Office and Retail Appraisal, Prosource, 1995
Appraisal Institute Course 430: "Standards of Professional Practice (Part C) ", 2001
2003 National USPAP Standards and Ethics Update, Prosource, 2003
2005 National USPAP Update Course, Appraisal Institute 2005
2006 National USPAP Update Course, Appraisal Institute 2007
2008 National USPAP Update Course, Appraisal Institute 2009
Subdivision Valuation, Appraisal Institute 2009
Various other short courses and seminars.
EMPLOYMENT HISTORY:
Staff Appraiser — BRKW APPRAISALS, INC., St. Paul, MN, April 1996 - Present
Staff Appraiser - Dahlen & Dwyer, Inc., St. Paul, MN, November 1986 - March 1996
Appraisal assignments include commercial, industrial, and
multi - family residential properties.
Dentist, Northpark Dental Clinic; Blaine, MN, July 1972 - November 1986
Dentist, U.S. Army, July 1970 - July 1972
Expires 08/31/11
BRKW APPRAISALS, INC. PAGE 26
Professional Qualifications - William E Pete
PROFESSIONAL EXPERIENCE:.
Appraisal assignments have been completed for the following purposes:
Mortgage financing
Condemnation/Litigation
Estate \/uinu1ion
Client Consultation
[lB0 Portfolio \/u\uuTiou
Buy/Sell Decisions
Property types appraised include the following:
Apartment Buildings
/\n10 Service Centers
Banks
Churches
Office Buildings
Office- Showrooms
Office-Wurebouuoo
Subdivision Land
Manufacturing 8|dga.
Medical Clinics
Mini-Storage
Mixed Use Properties
Shopping Centers
Single Family Homes
Special Purpose Properties
Railroad Corridors
Recreation Facilities
Restaurants
Retail Stores
7ovvobonoeo
Convenience Stores
Dealerships
(}ua Stations
Vacant Land
PARTIAL LIST OFCLIENTS
Bremer Bank, M&} Bank, D.S. Bank, TCF Bank, Wells Fargo Bank, Minnesota
Department of Transportation, Dakota County CDA, Ramsey County, Hennepin
County, various nouoicipu\ihco law firms; builders, developers, and investors.
Revised: January - 2010
BRKW ArPRA%SALS,KNC. PAGE27
-'
MPANY PROFILE
BRKW APPRAISALS, INC.
1600 University Avenue, Suite 314
St. Paul, Minnesota 55104
Phone: 651- 646 -6114
Fax: 651 646 -8086
e -mail: brkw @brkw.com
BRKW Appraisals, Inc. (formerly known as Bettendorf Rohrer Knoche Wall, Inc.) is a
full service professional real estate appraisal company formed in 1991. The three
principals have more than 80 years of combined experience in the valuation of a wide
variety of real estate. Located in the Midway area of St. Paul, we concentrate on the
appraisal of real estate primarily in the Twin Cities Metropolitan Area, as well as
outlying communities in Minnesota.
Our extensive professional training and experience enable us to provide the expertise
necessary for consistently reliable real estate valuation. Our appraisal reports are
confidential documents completed in accordance with all current standards of
professional appraisal practice and ethics. All of the appraisers employed by the
company have the Certified General Real Property Appraiser license from the State of
Minnesota. Our appraisers stay current with advances in appraisal techniques and the
changing real estate market through continuing education programs.
At BRKW Appraisals, Inc. we strive to build and maintain long - lasting relationships
with our clients. Our goal is to provide high - quality professional real estate
valuation services in a timely manner that is consistent with the needs of our clients.
Appraisal & Consulting Services
Real Estate Appraisals
Mortgage Financing Appraisals
Condemnation /Litigation Appraisals
Review Appraisals
Real Estate Tax Abatements
Special Benefits Analysis
Expert Witness Testimony
REO Portfolio Valuation
Feasibility Studies
Market Surveys
Partial Interest Valuations
Property Types
Commercial Properties
Industrial Properties
Multiple Family Residential
Single Family Residential
Subdivision Analysis
Vacant Land Parcels
Special Purpose Properties
Gas Station / Convenience Stores
Schools and Churches
Recreation Facilities
Railroad Corridors
BRKW a t A <,.
Michael J. Bettendorf, MAI - Principal
Active as an appraiser since 1971, Michael has the MAI designation of the Appraisal
Institute and specializes in commercial, industrial, multiple- family, residential, and
special purpose property appraisals with extensive litigation experience. Court
appointed Commissioner in Ramsey County, past President of Minnesota Chapter
A.I.R.E.A. (1987), instructor of appraisal courses and seminars. Michael is a
graduate of St. John's University. Licensed as a Certified General Real Property
Appraiser.
Marc E. Knoche, MAI - Principal
Marc has been an appraiser since 1982, and has the MAI designation of the Appraisal
Institute. He specializes in commercial, industrial, multiple family, residential, vacant
land, and special purpose property appraisals. Marc has done numerous condemnation
acquisition appraisals and special benefit studies involving a wide variety of property
types. Marc has extensive litigation / expert witness experience and has served as a
court appointed commissioner. He is a Past President of the Metro /Minnesota Chapter
of the Appraisal Institute (1992 & 1993). A graduate of Macalester College, Marc is
licensed by the State of Minnesota as a Certified General Real Property Appraiser.
Paul J. Gleason - Principal
Paul has been appraising real estate since 1992. He has in -depth experience in the
valuation of numerous real estate property types. Over the years, he has developed
special expertise in the valuation of land and in eminent domain appraising. Paul is a
graduate of the University of Wisconsin at La Crosse. Associate Member of the
Appraisal Institute and licensed as a Certified General Real Property Appraiser.
BRKW APPRAISALS, INC. PACE 29
William E. Petersen, Appraiser
Bill has been an active appraiser since 1986 specializing in the valuation of
commercial, industrial, multi - family, office and special purpose properties with
experience as an expert witness. Bill is a graduate of the University of Minnesota and
practiced dentistry from 1970 -1986 before becoming licensed as a Certified General
Real Property Appraiser.
Joseph P. Deutsch, Appraiser
Joe has been appraising real estate since 1998, specializing in commercial properties.
Types of property appraised include multi - family, industrial, office, retail, and
special purpose properties. Joe worked for two years as a city building inspector prior
to becoming an appraiser. Joe is a graduate of the University of Minnesota majoring
in accounting and is a Certified General Real Property Appraiser.
Terry A. Ward, Appraiser
Terry has over 20 years of experience in business management, operations and
marketing. Since 2002, she began applying this experience to commercial real estate
appraising. Types of properties appraised include office, industrial, hotel /motel,
retail /commercial, and other special use properties. She has a degree in Business
Management from St. Cloud State University and a Mini Masters in Real Estate
Appraising from St. Thomas University. Terry is a Certified General Real Property
Appraiser.
Mark is a third generation real property appraiser and has been appraising since 2003.
Types of property appraised include office, industrial, hotel /motel, retail /commercial,
and other special use properties. Mark is a graduate of the University of Minnesota,
is an Associate Member of the Appraisal Institute, and is licensed as a Certified
General Real Property Appraiser.
..; APPRAISALS,
A SPECIAL BENEFITS APPRAISAL
RESTRICTED USE REPORT FORMAT
(BRKW File No. 6520)
SPECIAL BENEFITS VALUATION OF TWO RESIDENTIAL PROPERTIES
HOWARD'S ADDITION
2011 PAVEMENT MANAGEMENT PROJECT
CITY OF COTTAGE GROVE, MINNESOTA
VALUATION DATE: OCTOBER 18, 2010
••
CITY OF COTTAGE GROVE
ATTN: HOWARD BLIN
COMMUNITY DEVELOPMENT DIRECTOR
7516 80 STREET SOUTH
COTTAGE GROVE, MN 55016
Im
PAUL J. GLEASON
AND
WILLIAM E. PETERSEN
REAL ESTATE VALUATION SERVICES
November 8, 2010
City of Cottage Grove
ATTN: Howard Blin
Community Development Director
7516 80` Street South
Cottage Grove, MN 55016
RE: Special Benefits Valuation of Two Residential Properties
2011 Pavement Management Project - Howard's Addition
Dear Mr. Blin:
In accordance with your request, we are providing you with a special benefits
appraisal pertaining to the above referenced public improvement project proposed by
the City of Cottage Grove. The effective date of valuation is October 18, 2010, which
is the date of our inspection of the project area and subject properties. Based on our
prior agreement, this appraisal is presented in a restricted use report format, in
accordance with the requirements of the Uniform Standards of Professional Appraisal
Practice.
At your request, two properties have been appraised herein. The purpose of the
special benefits appraisal is to provide an opinion of the increase in market value, if
any, that will accrue to each of the appraised properties as a result of the proposed
2011 Pavement Management Project — Howard's Addition. The intended use of the
appraisal is to assist City of Cottage Grove officials in determining the appropriate
and equitable amount of special assessments that may be levied against properties
benefited by the proposed improvement project. The intended users of the report are
City of Cottage Grove officials.
SPRUCE TREE CENTRE SUITE 314
1600 UNIVERSITY AVE sr PAUL MN 55104
651646.61 14 FAX 651 •646 ao86 brkw@ brkw.ca
The value benefits, if any, of street, utility and other such public improvements
accrue to the land value component of a property, not to the value of buildings and
other improvements on the land. Consequently, this special benefits analysis is
limited to the valuation of only the land components of the properties appraised.
The before - and -after valuation methodology has been used in this appraisal, which
analyzes the market value of the subject land prior to the project in relation to the
market value of the land after the project. The difference between the before and
after opinions of market value reflects the value of special benefits to each of the
appraised properties, as of October 18, 2010, as shown below:
2011 Pavement Management Project - Howard's Addition
Opinion of Land Values and Property Value Benefits
Property
Address
Tax
Parcel ID
Land
Area
Value
Before
Value
After
Spe cial B e ne fit
$
%
7001 Granada Avenue South
07- 027 -21 -12 -0012
1.51 ac.
$84,000
$91,000
$7,000
8.33%
7123 Granada Avenue South
07- 027 -21 -12 -0009
1.50 ac.
$88,000
$95,000
$7,000
7.95%
This appraisal assignment is not based on a requested minimum valuation or a specific
valuation for approval of a loan. The opinions of market value and special benefits
identified in this report were developed independent of any undue influence.
The opinions of value assume all real estate taxes and special assessment balances, if
any, have been paid in full. The values are gross values with no allowances made for
brokerage commissions, real estate taxes or other carrying costs associated with a
property during its marketing period. This appraisal report has been prepared in
conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Foundation.
The facts and information contained in this report were obtained from sources that are
considered to be reliable and are true to the best of our knowledge and belief, but are
not guaranteed. This appraisal report is contingent upon the assumptions and limiting
conditions included within this report.
Your attention is directed to the following report which summarizes the data, analyses
and conclusions that support the opinions of value.
Sincerely,
f�
� q
v
4
Certifi P r o perty Ap praiser
Minnesota License #40016
BRKW APPRAISALS, INC. PAGE 2
PURPOSE/INTENT OF THE APPRAISAL/INTENDED USERS ..................................... I
QWCOPE OF WORK ..................................................................................................... I
IDENTIFICATION OF PROPERTIES APPRAISED/LEGAL DESCRIPTIONS ............... 2
PROPERTY RIGHTS APPRAISED .............................................................................. 2
ZONING/LAND USE PLAN ........................................................................................ 2
COMPETENCY PROVISION ...................................................................................... 2
MARKET VALUE DEFINITION ................................................................................. 3
CONTINGENT AND LIMITING CONDITIONS ........................................................... 4
DESCRIPTION OF SUBJECT PROPERTIES ............................................................... 5
PLATMAP ................................................................................................................ 6
DESCRIPTION OF EXISTING IMPROVEMENTS ....................................................... 7
DESCRIPTION OF PROPOSED IMPROVEMENTS ...................................................... 7
HOWARD'S ADDITION PROJECT AREA MAP ....................................................................... 8
2011 PAVEMENT MANAGEMENT PROJECT AERIAL MAP ...................................................... 9
HIGHEST AND BEST USE ........................................................................................ 10
SPECIAL BENEFIT CONCLUSIONS ......................................................................... 10
SPECIAL BENEFIT ANALYSIS PROCESS ................................................................. 11
OPINION OF LAND VALUES AND PROPERTY VALUE BENEFITS ...........................12
CERTIFICATION..................................................................................................... 13
PROFESSIONAL QUALIFICATIONS ......................................................................... 14
19"'J a 7.y1111►Y Ii 11►�1 IZ/ : " : _ _ ► ► 1 1 ,
The purpose of the appraisal is to develop an opinion of the value of special benefits,
if any, that will accrue to two residential properties resulting from the proposed 2011
Pavement Management Project for Howard's Addition in Cottage Grove, Minnesota.
The intent of the special benefits appraisal is to assist City of Cottage Grove officials
in determining the appropriate and equitable amount of special assessments that may
be levied against benefiting properties located in the project area. The intended users
of the report are officials of the City of Cottage Grove.
SCOPE OF WORK
The City of Cottage Grove is proposing to rehabilitate Granada Avenue South and 71
Street South within a 12 -lot subdivision called Howard's Addition in the northwest
part of the city. The proposed street rehabilitation is part of the 2011 Pavement
Management Project. A detailed description of the project and project maps are
presented on later pages.
Two properties in the project area have been appraised in this report. The opinions of
special benefits developed in this appraisal for the two appraised properties will be
used by the City of Cottage Grove as a basis for levying special assessments to other
benefiting properties in the project area. The exhibits on pages 8 and 9 indicate
properties proposed for assessment. A viewing of the project area and exterior
inspections of the two subject properties were made on October 18, 2010, which is the
effective date of valuation.
Since the benefits of public improvement projects such as street rehabilitation accrue
to the land component of properties only, the valuation in this report involves land
only. Opinions of the market value of the subject properties have been developed in
this appraisal using the Direct Sales Comparison Approach. This approach, which is
the one most appropriate for valuing land, involves the comparison and analysis of
land parcels recently sold which are similar to the land being appraised. The
application of the Cost and Income Approaches typically applies only when a property
valuation includes buildings and other improvements having contributory value. The
subject land parcels are valued before and after the proposed project improvements.
The difference between the before and after opinions of market value is the special
benefit value attributable to the proposed project.
BRKW APPRAISALS, INC. PAGE 1
The addresses, tax parcel numbers, owners and legal descriptions of the appraised
properties, based on information provided by the City of Cottage Grove and
Washington County, are presented below.
2011 Pavement Management Project - Howard's Addition
Address
Tax Parcel #
Owner
Legal Description
7001 Granada Avenue South
07- 027 -21 -12 -0012
Frank R. Kirchner
Lot 1, Block 3, Howard's Addition
7123 Granada Avenue South
07- 027 -21 -12 -0009
David L. Schuck
Mary C. Schuck
Lot 3, Block 2, Howard's Addition
PROPERTY RIGHTS APPRAISED
The property rights appraised are those of the fee simple estate.
ZONING /LAND USE PLAN
The appraised properties, and all properties in Howard's Addition, are zoned R -2,
Residential Estate District. Areas zoned R -2 are planned to exist without public
sewer and water systems. The minimum required lot area is 1'/z acres.
COMPETENCY PROVISION
Paul J. Gleason has been a full -time professional real estate appraiser since April
1992. William E. Petersen has been a full -time professional real estate appraiser
since November 1986. Provided later in this report are summaries of their
professional qualifications. The educational training and extensive work experience
of the appraisers, each of whom is licensed as a Certified General Real Property
Appraiser, enable completion of this appraisal assignment in a professional manner
consistent with the intent of the competency provision of the 'uniform. Standards of
Professional Appraisal Practice.
BRKW APPRAISALS, INC. PAGE 2
Market Value as defined by the United States Department of the Treasury through the
Comptroller of the Currency and the Office of Thrift Supervision is:
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,
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:
♦ buyer and seller are typically motivated;
both parties are well informed or well advised, and each acting in what he
considers his own best interest;
s a reasonable time is allowed for exposure in the open market;
payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto; and
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.
This definition is also recognized by the Appraisal Foundation and is part of the
Uniform Standards of Professional Appraisal Practice (USPAP).
IIIBKw APPRAISALS, INC. PAGE 3
This appraisal report is subject to the following Limiting Conditions and
Assumptions:
1. The legal descriptions contained herein are assumed to be correct.
2. The appraiser assumes no responsibility for matters legal in nature affecting
the property appraised or the title thereto, nor does the appraiser render any
opinion as to the title, which is assumed to be good and marketable. The
property is appraised as though under responsible ownership.
3. No survey has been prepared of the property by the appraiser and no
responsibility is assumed in connection with such matters. Sketches in this
report are included only to assist the reader in visualizing the property.
4. Information furnished by others is assumed to be reliable. However, the
appraiser assumes no responsibility for its accuracy.
S. In cases where no soil tests have been submitted, the appraiser has assumed a
good subsoil condition, subject to visual observations noted in the report.
6. The appraiser assumes that there are no hidden or unapparent conditions of the
property, subsoil or structures, which would render it more or less valuable.
The appraiser assumes no responsibility for such conditions or for engineering
that might be required to discover such factors.
7. The appraiser is not required to give testimony or appear in court because of
having made this appraisal with reference to the property in question, unless
arrangements have been previously made.
8. The distribution of the total valuation in this report between land and
improvements applies only under the highest and best use of the property.
9. The Bylaws and Regulations of the professional appraisal organizations with
which the appraiser is affiliated govern disclosure of the contents of the
appraisal report.
lO.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 proper written qualifications and only in its entirety.
I I. Neither all nor any part of the contents of this report, or a copy thereof, shall
be conveyed to the public through advertising, public relations, news, sales or
any other media without written consent and approval of the appraiser. Nor
shall the appraiser, firm or professional organization of which the appraiser is
a member be identified without the written consent of the appraiser.
12. The value conclusion assumes all taxes and special assessments are paid in full.
13. The after improvements valuation in this appraisal assumes proposed
improvements have been completed in accordance with the description of the
proposed work provided to the appraisers by the City of Cottage Grove.
BRKW APPRAISALS, INC. PAGE 4
Neighborhood
The subject properties are located in an established residential area in the northwest
part of Cottage Grove. Howard's Addition is a fully developed 12 -lot subdivision on
the south side of 70 Street South at Granada Avenue South. There are two
residential streets in Howard's Addition: Granada Avenue South and 71 Street South.
Homes in Howard's Addition were built during the period 1980 to 1990. All the lots
are either 1.50 or 1.51 acres in size, with the exception of 7110 Granada Avenue
which contains 1.95 acres. The assessed market values of the homes for taxes payable
in 2011 range from $242,600 to $330,500, with nine at $293,900 and less. The area
has no availability to public water and sanitary sewer.
Properties
Following are brief descriptions of the two appraised properties. Land areas were
provided by Washington County and are subject to survey.
7001 Granada Avenue South
This property fronts the east side of Granada Avenue South between 70 Street South
and 71 Street South. The rectangular lot contains 65,558 square feet or 1.51 acres.
The lot has 232.27 feet of frontage on Granada Avenue South, with direct access. The
north side of the lot has 293.99 feet along the 70 Street South right of way. At the
subject location, the average daily traffic volume on 70 Street South is 8,200
vehicles. 71 Street South extends east of Granada Avenue along the south lot line
for 68.41 feet.
The sides of the lot along Granada Avenue and 70 Street South slope down to the
central part of the site, which is at a lower elevation than the streets. The site has
mature trees along all four lot lines and scattered in the central portion. The assessed
market value for taxes payable in 2011 is $275,500, which is divided $106,800 land
and $168,700 dwelling. The house, which was built in 1990, is located in the
northwest part of the site.
7123 Granada Avenue South
-- 575- -
711TH STREET SQIITTH
r�x r� cis
-- M5 __
II p
Plat I1�Iap
BI2KW APPRAISALS, INC. PAGE 6
�5aaa
6
�
S
�i
zanaz
Y
+
2N.00
1
n
r.
Plat I1�Iap
BI2KW APPRAISALS, INC. PAGE 6
Following is a description of existing improvements in the project area according to
information provided by the City of Cottage Grove.
1. The streets within Howard's Addition, Granada Avenue South and 71" Street
South, were originally constructed in 1974.
2. The streets are approximately 34 feet wide from back of curb to back of curb.
Streets have B618 concrete curb and gutter. Sections of the curb have settled,
cracked or have defects that require replacement. Approximately 15% of the
curb and gutter is in poor condition.
3. The Pavement Condition Index (PCI) ranges from 35 to 63 on a scale of 1 to
100, with 100 being the condition of a new street. A PCI of 35 is identified as
poor.
4. The bituminous paving is relatively thin by current standards, as the following
test results by Bonestroo indicate:
.,,
Ito.
Locaton
Materials
1
5588 71st Street
3" Bituminous, 11" Gravel, Clay/Sand
2
7123 Granada Acre
2.75" Muminous, 45" Gravel, Dirty Gravel and Sand
3
7128 Granada Ave
2.75" Bituminous, 6" Gravel, 12" Sand
5. There is no public sanitary sewer or watermain.
6. There is virtually no existing storm sewer. No catch basins or storm pipe are
present in the project area. There is one cross culvert at the very south end of
the project limits that drains to the west.
The main objective of the project is to improve the condition of the existing streets
and perform any necessary drainage improvements.
1. It is proposed to reclaim the pavement and gravel base to a depth of 6 -9 inches.
The top 3.5 inches of reclaimed material will be hauled off -site to allow for 3.5
inches of new bituminous pavement.
2. Existing B618 concrete curb and gutter will be evaluated and replaced where
needed.
3. The existing cross culvert at the south end of the project will be evaluated for
replacement.
BRKW APPRAISALS, INC. PAGE 7
BRKW APPRAISALS, INC. PAGE
0
z
Gi
N
Ld
O
LU
LL
0
CJ
a
uj
Z
LLJ
z
tu
2:
Ul
a:
O
I
14MIE"M W.10 1'
Highest and Best Use - Before Proposed Improvements
As Vacant Without water and sewer, the required minimum lot size is at least 1.5
acres. Each of the appraised properties meets this requirement. The highest and best
use of each of the properties is for a single family homesite, which is how they are
currently used.
As Improved Only the land components of the subject properties are being
appraised. Therefore, the highest and best use, as improved, is not addressed.
Highest and Best Use - After Proposed Improvements
After the proposed street and related improvements are completed, the highest and
best use of the subject properties is unchanged relative to the before improvements
position.
SPECIAL BENEFIT CONCLUSIONS
1. Before the proposed improvements, the roads in the project area are old,
deteriorated and approaching the end of their physical lives. It can be
anticipated that further deterioration will result in a worsening of problems
associated with advanced age, including improper drainage, uneven driving
surfaces, increased formation of potholes, etc.
2. It is recognized that the condition and quality of streets serving and fronting
residential properties influences the value, curb appeal and general desirability
of the properties.
3. The proposed rehabilitation of the roads serving the subject properties will
substantially improve the safety, convenience and general appeal of access into
and out of the subject properties. The project will reverse the deteriorating
state of the roads and result in new street surfacing.
4. Safety aspects for vehicles traveling on a new street are enhanced by the
elimination of potholes, cracks, etc. Street icing problems are reduced as water
is more efficiently diverted off the roadway surface that could otherwise
collect in the deteriorated street areas during frost seasons.
5. A significant amount of benefit resulting from the project is special, attaching
to the properties directly fronting and accessing the rehabilitated streets,
including the subject properties.
tM
SPECIAL BENEFIT ANALYSIS PROCESS
Arriving at an opinion of special value benefits accruing to each of the subject
properties as a result of the proposed improvements is accomplished by developing
"before improvements" and "after improvements" opinions of market value for the
two appraised land parcels. The improvements on the land are concluded to have the
same value contributions to the total property value in both the "before and after"
improvements positions. Consequently, the opinion of direct value benefits from the
public improvements project can be reliably developed by analyzing the value of the
land only, by processing the Direct Sales Comparison Approach.
The Direct Sales Comparison Approach, which involves the comparison of recently
sold land parcels similar to the subject land parcels, is applied to the valuation of the
subject properties. The valuation of the appraised properties includes an analysis of
similar -sized residential lots in the subject market area, having no public water or
sanitary sewer. The comparable sales are analyzed and adjustments are made for
value - related differences relative to the subject properties. The result of the analysis
and adjustments is the generation of value indications for each of the appraised
properties. The strengths and weaknesses of each comparable sale and its value
indication are evaluated before arriving at a final opinion of value for an appraised
property.
Additional data and analyses employed during the before - and -after valuation process,
including adjustment grids, are retained in the office workfile at BRKW Appraisals.
Opinion of Land Value Before Improvements
After adjustments are made to the prices of the comparable land sales for value -
related differences in relation to the subject land, the comparables provide value
indications for each of the subject properties. Before - improvements value opinions
are developed for each of the subject properties based on the value indications of the
comparable sales. The appraisers reviewed current listings of lots, since that often
provides an indication of present values. The opinions of value for the subject
properties prior to the proposed street and related improvements are shown in the
exhibit on the next page.
13M33MMEM=
Similar to the before- improvements valuation, in the after- improvements valuation the
comparable again analyzed and compared to
after-
improvements opinion developed for each of •r based on
the value indications provided by - comparable sales. The opinions of . - after
improvements for the subject properties are shown in the exhibit on the next page.
BRKW APPRAISALS, INC. PAGE 11
Special Value Benefits From Improvements Project
The before - improvements values are subtracted from the after - improvements values,
resulting in opinions of special value benefits to each of the subject properties
resulting from the proposed roadway rehabilitation project, as indicated below.
2011 Pavement Management Project - Howard's Addition
Opinion of Land Values and Property Value Benefits
Property
Address
Tax
Parcel ID
Land
Area
Value
Before
Value
After
Special Benefit
$
%
7001 Granada Avenue South
07- 027 -21 -12 -0012
1.51 ac.
$84,000
$91,000
$7,000
8.33%
7123 Granada Avenue South
07- 027 -21 -12 -0009
1.50 ac.
$88,000
$95,000
$7,000
7.95%
B,., APPRAISALS, PAGE 12
CERTIFICATION
The undersigned does hereby certify that in this appraisal report:
1. This appraisal assignment is not based on a requested minimum valuation or specific
valuation for approval of a loan. The estimate of market value identified in this
report was developed independent of any undue influence.
2. Neither our engagement to make this appraisal (or any future appraisals for this
client), nor any compensation, therefore, are contingent upon the development or
report of a predetermined value or direction in value that favors the cause of the
client, the amount of value estimate, the attainment of a stipulated result, or the
occurrence of a subsequent event directly related to the intended use of the appraisal.
3. Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
4. We have no present or contemplated future interest in the real estate that is the
subject of this appraisal report.
5. We have no personal interest or bias with respect to the subject matter of this
appraisal report or the parties involved.
6. To the best of our knowledge and belief the statements of fact contained in this
appraisal report upon which the analyses, opinions and conclusions expressed herein
are based, are true and correct.
7. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are our personal, impartial, and unbiased
analyses, opinions, and conclusions.
8. This appraisal report has been made in conformity with and is subject to the
9. requirements of the Code of Professional Ethics and Standards of Professional
Conduct of the Appraisal Institute, and the Uniform Standards of Professional
Appraisal Practice.
10. No one provided significant professional assistance to the persons signing this
certification.
11. We have made a personal inspection of the property that is the subject of this report.
12. The use of this report is subject to the requirements of the Appraisal Institute
relating to review by its duly authorized representatives.
13. As of the date of this report, Paul J. Gleason has completed the Standards and Ethics
Education Requirement of the Appraisal Institute for Associate Members.
14. The by -laws and regulations of the Appraisal Institute govern disclosure of the
contents of this appraisal report.
15. 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 he /she is connected, or
any reference to the Appraisal Institute or MAI designation) shall be disseminated to
the public through advertising media, public relations media, news media, sales
media, or any other public means of communication without the prior written consent
and approval of the undersigned.
16. We have the knowledge and experience to complete this appraisal in a competent
manner. Neither our company nor ourselves individually have been sued by a
regulatory agency or financial institution for fraud or negligence involving an
appraisal report.
r �
Paul J. G a son
Certified General Real Property Appraiser
Minnesota License 94003073
.. .
Certified General Real Property Appraiser
Minnesota License 94001649
BRKW APPRAISALS, INC. PAGE 13
PAUL J. GLEASON
BRKW APPRAISALS, INC.
1600 University Avenue, Suite 314
St. Paul, Minnesota 55104
Telephone: (651) 646 -6114
Facsimile: (651) 646 -8086
e -mail: pgleason @brkw.com
PROFESSIONAL MEMBERSHIPS AND ASSOCIATIONS
General Associate Member - The Appraisal Institute
To date, all required courses for Member of Appraisal Institute (MAI)
designation have been taken and course examinations passed; Comprehensive
Examination for MAI designation has been passed.
LICENSE
Certified General Real Property Appraiser - State of Minnesota —
License #4003073
EDUCATION
University of Wisconsin at La Crosse, Wisconsin, 1985
Bachelor of Science Degree in Business Administration
PROFESSIONAL REAL ESTATE STUDIES
The Appraisal Institute
Course 110:
Appraisal Principles (examination passed), 1994
Course 120:
Appraisal Procedures (examination passed), 1994
Course 210:
Residential Case Study, 1994
Course 310:
Basic Income Capitalization, 1996
Course 410:
National Uniform Standards of Prof. Appraisal Practice, 2003
Course 420:
Business Practices and Ethics, 2003
Course 510:
Advanced Income Capitalization, 2002
Course 520:
Highest and Best Use and Market Analysis, 2000
Course 530:
Advanced Sales Comparison and Cost Approaches, 1999
Course 540:
Report Writing and Valuation Analysis, 2001
Course 550:
Advanced Applications, 2000
Prosource Educai
Appraisal 101:
Appraisal 102:
Appraisal 1.03:
Appraisal 104:
Appraisal 105:
Tonal Services, St. Paul, MN
Intro to Appraisal Principles 1, 1992
Intro to Appraisal Principles 11, 1992
Intro to Appraisal Practices I, 1992
Intro to Appraisal Practices II, 1992
Intro to Appraisal Standards and Ethics, 1992
Numerous Additional Seminars and Classes For Continuing Education From
Appraisal Institute and Other Sources, 1993 - present
Professional Qualifications - Paul J. Gleason Page 2
Principal — BRKW Appraisals, Inc., St. Paul, MN 1/07-present
Staff Appraiser — BRKW Appraisals, Inc., St. Paul, MN 10/93-12/06
Certified Appraisers, Excelsior, MN 8/93 - 10/93
Stiles Appraisals, Inc., Plymouth, MN 4/92 - 08/93
PARTIAL LIST OF CLIENTS
City of Burnsville City of Cottage Grove
City of Eagan City of Plymouth
City of Savage City of Woodbury
Dakota County Parks Department M&I Bank
Minnesota Bank & Trust Minnesota Department of Transportation
Various other communities, counties, attorneys and individuals
Revised: October 2010
BRKW APPRAISALS, INC. PAGE 1.11
M,
WILLIAM E. PETERSEN
BRKW APPRAISALS, INC. Telephone: (651) 646 -6114
1.600 University Avenue, Suite 314 Facsimile: (651) 646 -8086
St. Paul, Minnesota 55104
EDUCATION:
D.D.S. Degree, School of Dentistry, University of Minnesota, Minneapolis, MN 1970
St. Paul Central High School, St. Paul, MN 1963
PROFESSIONAL REAL ESTATE STUDIES
S.R.E.A. Course 101: "Introduction to Appraising Real Property ", 1987
S.R.E.A. Course 102: "Applied Residential Property Valuation ", 1988
S.R.E.A. Course 201: "Principles of Income Property Appraising ", 1987
S.R.E.A. Course 202: "Applied Income Property Valuation ", 1989
Appraisal Institute Course 410: "Standard of Professional Practice (Part A) ", 1991
Appraisal Institute Course 420: "Standards of Professional Practice (Part B) ", 1991
Advanced Yield Capitalization, Prosource, 1993
How to Avoid Environmental Hazards Liability, Prosource, 1994
1994 Appraisal Standards and Regulatory Update, Prosource, 1994
Discounted Cash Flow Analysis, University of St. Thomas, 1994
Appraisal 205: Office and Retail Appraisal, Prosource, 1995
Appraisal Institute Course 430: "Standards of Professional Practice (Part C) ", 2001
2003 National USPAP Standards and Ethics Update, Prosource, 2003
2005 National USPAP Update Course, Appraisal Institute 2005
2006 National USPAP Update Course, Appraisal Institute 2007
2008 National USPAP Update Course, Appraisal Institute 2009
Subdivision Valuation, Appraisal Institute 2009
Various other short courses and seminars.
Staff Appraiser — BRKW APPRAISALS, INC., St. Paul, MN, April 1996 - Present
Staff Appraiser - Dahlen & Dwyer, Inc., St. Paul, MN, November 1986 - March 1996
Appraisal assignments include commercial, industrial, and
multi - family residential properties.
Dentist, Northpark Dental Clinic; Blaine, MN, July 1972 - November 1986
Dentist, U.S. Army, July 1970 - July 1972
am
Certified General Real Property Appraiser - State of Minnesota - License #4001649
Expires 08/31/11
Professional Qualifications - William E. Petersen
PROFESSIONAL EXPERIENCE:
Appraisal assignments have been completed for the following purposes:
Mortgage financing
Condemnation /Litigation
Estate Valuation
Client Consultation
REO Portfolio Valuation
Buy /Sell Decisions
Property types appraised include the following:
Apartment Buildings
Auto Service Centers
Banks
Churches
Office Buildings
Office- Showrooms
Office - Warehouses
Subdivision Land
Manufacturing Bldgs.
Medical Clinics
Mini - Storage
Mixed Use Properties
Shopping Centers
Single Family Homes
Special Purpose Properties
Railroad Corridors
Recreation Facilities
Restaurants
Retail Stores
Townhomes
Convenience Stores
Dealerships
Gas Stations
Vacant Land
PARTIAL LIST OF CLIENTS
Bremer Bank, U.S. Bank, TCF Bank, Wells Fargo Bank, Minnesota
Department of Transportation, Dakota County CDA, Ramsey County,
Hennepin County, various municipalities, law firms; builders,
developers, and investors.
Revised: September - 2010
BRKW APPRAISALS, INC. PAGE 17
COMPANY PROFILE
BRKW APPRAISALS, INC.
1600 University Avenue, Suite 314
St. Paul, Minnesota 55104
Phone: 651- 646 -6114
Fax: 651 646 -8086
e -mail: brkw @brkw.com
BRKW Appraisals, Inc. (formerly known as Bettendorf Rohrer Knoche Wall, Inc.) is a
full service professional real estate appraisal company formed in 1991. The three
principals have more than 80 years of combined experience in the valuation of a wide
variety of real estate. Located in the Midway area of St. Paul, we concentrate on the
appraisal of real estate primarily in the Twin Cities Metropolitan Area, as well as
outlying communities in Minnesota.
Our extensive professional training and experience enable us to provide the expertise
necessary for consistently reliable real estate valuation. Our appraisal reports are
confidential documents completed in accordance with all current standards of
professional appraisal practice and ethics. Our appraisers stay current with advances
in appraisal techniques and the changing real estate market through continuing
education programs.
At BRKW Appraisals, Inc. we strive to build and maintain long - lasting relationships
with our clients. Our goal is to provide high- quality professional real estate
valuation services in a timely manner that is consistent with the needs of our clients.
Appraisal & Consulting Services
Real Estate Appraisals
Mortgage Financing Appraisals
Condemnation /Litigation Appraisals
Review Appraisals
Real Estate Tax Abatements
Special Benefits Analysis
Expert Witness Testimony
REO Portfolio Valuation
Feasibility Studies
Market Surveys
Partial Interest Valuations
Property Types
Commercial Properties
Industrial Properties
Multiple Family Residential
Single Family Residential
Subdivision Analysis
Vacant Land Parcels
Special Purpose Properties
Gas Station / Convenience Stores
Schools and Churches
Recreation Facilities
Railroad Corridors
BRKW APPRAISALS, INC. PAGE 18
F.11209MIR ♦ c
Michael J. Bettendorf, MAI - Principal
Active as an appraiser since 1971, Michael has the MAI designation of the Appraisal
Institute and specializes in commercial, industrial, multiple family, residential, and
special purpose property appraisals with extensive litigation experience. Court
appointed Commissioner in Ramsey County, past President of Minnesota Chapter
A.LR.B.A. (1987), instructor of appraisal courses and seminars. Michael is a
graduate of St. John's University. Licensed as a Certified General Real Property
Appraiser.
Marc E. Knoche, MAI - Principal
Marc has been an appraiser since 1982, and has the MAI designation of the Appraisal
Institute. He specializes in commercial, industrial, multiple family, residential, vacant
land, and special purpose property appraisals. Marc has done numerous condemnation
acquisition appraisals and special benefit studies involving a wide variety of property
types. Marc has extensive litigation / expert witness experience and has served as a
court appointed commissioner. He is a Past President of the Metro /Minnesota Chapter
of the Appraisal Institute (1992 & 1993). A graduate of Macalester College, Marc is
licensed by the State of Minnesota as a Certified General Real Property Appraiser.
Paul J. Gleason - Principal
Paul has been appraising real estate since 1992. He has in -depth experience in the
valuation of numerous real estate property types. Over the years, he has developed
special expertise in the valuation of land and in eminent domain appraising. Paul is a
graduate of the University of Wisconsin at La Crosse. Associate Member of the
Appraisal. Institute and licensed as a. Certified General Real Property Appraiser.
William E. Petersen, Appraiser
Bill has been an active appraiser since 1986 specializing in the valuation of
commercial, industrial, multi - family, office and special purpose properties. Bill is a
graduate of the University of Minnesota and practiced dentistry from 1970 -1986
before becoming licensed as a Certified General Real Property Appraiser.
Joseph P. Deutsch, Appraiser
Joe has been appraising real estate since 1998, specializing in commercial properties.
Types of property appraised include multi- family, industrial, office, retail, and
special purpose properties. Joe worked for two years as a city building inspector prior
to becoming an appraiser. Joe is a graduate of the University of Minnesota majoring
in accounting and is a Certified General Real Property Appraiser.
Terry A. Ward, Appraiser
Terry has over 20 years of experience in business management, operations and
marketing. Since 2002, she began applying this experience to commercial real estate
appraising. Types of properties appraised include office, industrial, hotel /motel,
retail /commercial, and other special use properties. She has a degree in Business
Management from St. Cloud State University and a Mini Masters in Real Estate
Appraising from St. Thomas University. Terry is a Certified General Real Property
Appraiser.
Mark is a third generation real property appraiser and has been appraising since 2003.
Types of property appraised include office, industrial, hotel /motel, retail/commercial,
and other special use properties. Mark is a graduate of the University of Minnesota,
is an Associate Member of the Appraisal Institute, and is licensed as a Certified
General Real Property Appraiser.
BRKW APPRAISALS, INC. PAGE 20
Date:
1I/11/10
To:
Jennifer Levitt
From:
DaveSchuok
Subject:
Howard's Addition Proposal
VVe the neighbors of the Howard's addition would like to propose an alternative tu the proposed road
reclamation project. We would prefer to have the entire Granada project done at one time which would
include all of Hidden Oaks and Howmnda Addition for the following reasons:
1\ VVe are nna dead end street with only one entrance.
2) Our road b about ten years older than the rest of Granada in Hidden Oaks
3) The base of the road on Howard's Addition isgood
4\ if we do a thorough hot patching of Howard's addition and then seal coat it, we are told it would
extend the life of the road for ten years. This would extend the life of the Howard's addition
road tu allow the entire project 0zbe done at one time.
If we would have the entire Granada project done at one time we would receive the following benefits:
1) We would not have heavy trucks crossing Howards addition road into Hidden Oaks with the
incumbent damage to the new road.
2) Since we are on a dead end street, it would reduce the inconvenience of people having to walk
into their houses to one project time frame, rather than two times.
CL
rD
LA 0
rD
rD
rD
rD
CD
rD
rD
Ln
cr
rD
CD
CL
rD
rD
- Ct7 -
n r)
o �
CD
O
•
•
M
"ALI
Hinton Avenue So.
o
Lr)
(D
(D
M
"ALI
Hinton Avenue So.
o
O
h i—
Jamaica Avenue so.
LO
LO
O
Keats Avenue so.
s
�T
v
qr►
" 71ST ST, S
a
m
CONS
CONS7
1990
1992
1993
1996
I T
1:14B�48ICr DATE6 10122110 COW, 48-lD-n9-0
f
x p
{ t � E ��• Yx „�4.G �.
i
r �
.'x�` �, �J�11 fi r t'
t -
�'6
k
!x9aj
� to
a
J. T
= qj
J �a
zg �
S
C
l y k
�. ��'.�.� -. Mme.. ✓� ��# �.4 a." = =.
4'�
NP
r "
t*s3i�i "
'4 k
m .
x p
{ t � E ��• Yx „�4.G �.
i
r �
.'x�` �, �J�11 fi r t'
t -
�'6
k
!x9aj
� to
a
J. T
= qj
J �a
zg �
S
C
l y k
�. ��'.�.� -. Mme.. ✓� ��# �.4 a." = =.
4'�
4'�
-g g \ Fg Ee g
A i2 /� /� /� / /� /§
z
LU / / \ / / b \ \ / / / )
0
uj
«\
I