HomeMy WebLinkAbout2010-12-01 PACKET 06.B.REQUEST OF CITY COUNCIL ACTION
COUNCIL
MEETING
DATE 12/01/2010
Engineering
ORIGINATING DEPARTMENT
AGENDA
ITEM # 411
6 . 4 6
Jennifer Levitt
STAFF AUTHOR
COUNCIL ACTION REQUEST:
Adopt resolution ordering the project and authorizing the plans and specifications for the West
Point Douglas Road Extension.
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Recommend the Council adopt resolution ordering the project and authorizing the plans and
specifications for the West Point Douglas Road Extension.
ADVISORY COMMISSION ACTION:
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❑ PUBLIC WORKS
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❑ PARKS AND RECREATION
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❑ HUMAN SERVICES/RIGHTS
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❑ ECONOMIC DEV. AUTHORITY
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0011199• :491 I'M
❑ MEMO/LETTER: Jennifer Levitt, November 22, 2010, Robin Roland, November 23, 2010,
Adam Josephson, November 16, 2010, and Craig A. Woolery, November 15, 2010.
❑ RESOLUTION:
F ORDINANCE:
F - ] ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
Z OTHER: Zoning Map, Cost Estimate, Informational Meeting attendees, Turning Movement
Map, Benefits Appraisal, Preliminary Project Layout Petition, and Conceptual Layout.
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COUNCIL ACTION TAKEN. )4A ROVED F1 DENIED [:1 OTHER
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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: W. Point Douglas Rd. from TH 61 to Leeward Ave. So.; and Lofton
Ave. So. from W. Point Douglas Rd. to 300' west of W. Point Douglas Rd.; 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 the 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
NOVI THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF COTTAGE
GROVE, MINNESOTA:
Such improvement is necessary, cost - effective, and feasible as detailed in the
feasibility report. The improvement shall include road reconstruction, signal system
modifications, storm sewer, and stormwater pond construction.
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 1 st day of December, 2010.
Attest:
Myron Bailey, Mayor
Caron M. Stransky, City Clerk
From: Jennifer M. Levitt, P.E., City Engineer
Date: November 22, 2010
Re: West Point Douglas Road Extension
Order the Project
Authorize Preparation of Plans and Specifications
On September 1, 2010 the City Council authorized a feasibility report be prepared for the 2011
Pavement Management Area, which included the West Point Douglas Road Extension. The
West Point Douglas Road Extension is a project that would be constructed under MnDOT
State Aid standards. Since this project's standards would be too burdensome and costly to the
residential street project (2011 Pavement Management), a separate feasibility report was
prepared for the project. The City Council held a workshop session on October 20, 2010 to
discuss the various elements of the proposed improvements.
Onsite meetings were held with Erickson Marine, Gerlach's and Dubois Remodeling to outline
the project scope and financial impact of the project. A neighborhood meeting was held on
November 9, 2010 at 7:00 p.m. at City Hall in the Council Chambers.
•
Subdivision Ordinance relative to street curbing requirements is described in Section 10-5-3F
which requires bituminous or concrete street surfaces with curb and gutter and the subsequent
subsection (1)(c ) requires concrete curbs and gutters on both sides of streets. It also
references "Standard Specification for Highway Construction", state highway design
specification No. 2531 and design No. B618 or design D curb.
The reconstruction of Lofton Avenue adjacent to the businesses would have surmountable
curb. The curb section in conjunction with storm sewer will improve drainage in the area and
better define the driving lanes. From our meetings with the businesses, their desire is to keep
parking adjacent to the street. The proposed plan does keep parking on Lofton Avenue for
their employees. A request was made by Gerlach's to confirm that a semi-truck could still
enter their property for deliveries. A turning template was run for movement requested and
was found to work; the template is enclosed.
Resident Concerns
A resident had expressed concern regarding the speed on TH 95 as it related to the curved
radii that would exist on the West Point Douglas Road extension. The key thing is that the
MnDOT will be conducting review and approval of the design, so all signing will be in
conformance with Minnesota Manual on Uniform Traffic Control Devices (MnMUTCD). For
example, signing could include chevrons along the radii, advance warning on TH 95, and/or a
curve warning sign to address the resident's concern. It should also be noted that right-of-way
will be clear and will provide an area of recovery if a vehicle were to lose control.
The businesses expressed interest in extending parking on the east side of the street through
the area adjacent to the intersection of Lofton Avenue. After reviewing the situation, staff does
not recommend extending the parking area (or connecting the two areas) through the
intersection for a number of reasons. The extended parking area could cause confusion for
motorists that are approaching the intersection on Lofton Avenue. Also, by not extending the
parking area, more protection is offered for parked vehicles because parked cars would not
have the potential to be struck by a vehicle making a turning movement. Also, there is a
sloped grade toward the intersection and parking area, so it would be safer to avoid creating
an additional conflict point in slippery conditions.
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along Hwy 61 by reducing direct access to/from Hwy 61 at uncontrolled intersections. Access
to this neighborhood and business area is best served at the Hwy 95 signal."
Some residents expressed concerns regarding the closure of the existing access point.
Because there is additional distance to travel on TH 61 to enter the neighborhood, they felt the
response time of police, fire or EMS would be negatively affected. Public Safety Director Craig
Woolery reviewed the concern and concluded 'Focusing all traffic to a semaphore controlled
intersection with an opticom (which allows emergency vehicles to control the signal) is the
overall preferred solution for this intersection'. The memo from Director Woolery, dated
November 15, 2010, also addresses the issue of response time, which is minimal. According
to Woolery, 'Response times in general, vary for several reasons, such as the location of the
first responder when the call is received, the weather, the levels of traffic congestion and time
of day.'
Concern was expressed about the additional distance traveled as it relates to additional time to
reach a residence with the extension of a frontage road to the Th61/TH95 signal. A review
was done of the situation with results as follows:
The typical commute will be from the development to either northbound or southbound
TH 61 in the morning, returning home in the evening.
A review was done looking at peak hour movements, as people tend to leave and return
during these periods.
The assumptions made were the average running speed of 25 mph was assumed on
the new frontage road and 45 mph on TH 61. Note that these are running speeds, and
not posted speeds.
Then the analysis took into account the time spent waiting for the signal to provide
green arrows, or in the case of the existing condition, the time spent waiting for a gap to
appear.
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64 seconds in the evening. The total additional time for this trip would be 94 seconds, or
•`
In staff's opinion, the delay is insignificant in comparison to reducing the potential for a fatality
or an incapacitating injury that could occur if the existing access point is left open. The
additional 3,600 feet a resident has to travel to the signal amounts to only pennies a day in
additional gas.
The businesses requested that construction not start until mid-June to allow for no disturbance
during their peak time of spring business. The specifications will be written to not allow
construction to start until after the peak spring operation and will also have a completion date
specified before the fall peak season for the businesses. This schedule will work well with the
2011 Pavement Management area and maintaining access to the area. Plus, the businesses
do not have to worry about as much conflict with construction related traffic in front of their
businesses from the 2011 Pavement Management Project, because the contractor would still
be utilizing the access point.
Funding Review
The total estimated project cost for the road work, storm sewer, and signal system is
$1,567,900. According to the City's policy, 100% of the total project is assessed against the
benefiting properties. Since the street only has parcels on one side of the street, the
assessment amount was reduced by 50%. The total project value that was proposed to be
assessed was $581,557.50. The Cost Estimate Summary from the Feasibility Report is
enclosed.
The City had a special benefits appraisal conducted by BRKW Appraisals, Inc. on four parcels
within the project area. The completed special benefits valuation of West Point Douglas Road
Extension dated October 18, 2010 is enclosed. The results of the special benefit valuation
indicate that an average increase of 11.275% is realized in special benefit when the road
improvement occurs, which ranges from $20,000 to $50,000 in value. Staff recommends
capping the assessment at the value indicated in the special benefit appraisal. The following
chart shows the proposed value of the assessment, which is indicated as special benefit value,
and also shows the comparison of the value indicated in the feasibility report. The feasibility
report value was determined using the City's policy as outlined in the IMTF report.
M_
Feasibility
Special
Difference
W60
Report Valuem
Benefit
Value
IN 32721420021 (Erickson M
L _$212,797.65—
$50,000
$162,797.65
ID 3602721440007 (Gerlach's)
ID 3602721440014 (Swenson)
$146,484.42
10 1 MCMINFEAM M LIMA U@=, _Mn--Z1
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$0
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The businesses have expressed concern over the proposed lower assessment value. The
Finance Director has provided a comparison of other business assessments that have been
levied against businesses properties for infrastructure projects in the City. Please see Director
Roland's memo dated November 23, 2010.
Revised Cost Estimate Summary:
Cost Estimate Summary
Assessment Breakout City Funds Breakout
Location
Construction
Cost
Total Cost*
Assessed
Amount
Assessed
Amount
(Commercial /
Industrial)
Assessed
Amount
(Rural
Residential)
City Funds
Stormwater
Utility Fund
Street
Light utility
General
Levy
West Point Douglas Road
See Report
for
Calculation
$868,385
$1,128,900
$179,653
$162,545
$17,108
$949,2471
$130,250
$0
$818,997
Signal System
100% of Total
$300,000
$390,000
$0
$0
$0
$390,000
$0
$390,000
$0
TH 95
100% of Total
$37,692
$49,000
$0
$0
$0
$49,000
$0
$0
$49,000
Land Acquisition
$328,000.00
$328,000.00
Totals
1 $1,206,0771
$1,567,9001
$179,653
$162,5451
$17,1081
$1,388,2471
$130,250
$390,000
$867,997
* Includes 10% Contingency + 30% Indirect Costs
The decreased amount in assessments will result in additional $401,905 funded by the City.
The proposed funding to cover this gap will be from the City's MSA and Pavement
Management Debt Service funds.
Special Assessment Policy
The special assessment policy states:
For commercial/industrial lots outside the MUSA, 100% of - project c
be assessed against benefited commercial/industrial lots. The assessment shall include
both surface and sub-surface assessments . • will be apportioned among the
W,etefited commercial/industrial lots as follows:
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One third of the project costs will be apportioned among the commercial properties
based on the number of linear feet abutting the improved street surface. Two thirds of
the project costs will be apportioned among the commercial properties based on the
areas of the properties, in square feet.
5.5.1.2. Sub-Surface Improvements
Storm sewer - One third of the project costs will be apportioned among the commercial
properties based on the number of linear feet abutting the improved street surface. Two
thirds of the project costs will be apportioned among the commercial properties based
on the areas of the properties, in square feet.
Final evaluation of options
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.
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. The City would have to notify the MnDOT that the $594,000 would not be
accepted. There is no guarantee if this funding could again be secured at a
future date or at what level. Currently the City has received the maximum
amount.
2. The $150,000 of concrete turn lanes on TH 61 would not be utilized.
3. Delay will create an increased project cost of approximately 5-8% annually.
This directly would mean increased assessment by corresponding amount.
4. 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.
5. Safety concerns would still exist with an at-grade crossing on a principal
arterial.
51 1 71 1 ! 0
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City of Cottage Grove Memo
Public Safety
To: Honorable Mayor and City Council
City Administrator Ryan Schroeder
From: Director of Public Safety Craig A. Woolery
Date: November 15, 2010
Subject: RESPONSE TO CONCERNS REGARDING THE PROPOSED HIGHWAY
61/95 INTERSECTION IMPROVEMENTS
In response to citizen concerns raised at a recent community meeting held on
November 9, 2010 in the Pine Coulee/Country Wood neighborhood, the Public Safety
Department was asked to make comments on the citizens' recommendations.
Residents expressed concern that the extension of the frontage road would increase
response times of Public Safety to the Pine Coulee/Country Wood neighborhoods. The
additional time required for a southbound Highway 61 responder would be minimal.
Response times in general, vary for several reasons, such as the location of the first
responder when the call is received, the weather, the levels of traffic congestion and
time of day.
The benefits of removing an uncontrolled access and crossing of Highway 61 in lieu of
all access being controlled by semaphores, greatly outweigh the minimal added time for
first responders.
There was also the mention of a slip ramp for southbound Highway 61 vehicles to exit to
the frontage road in a residential speed zone. The Public Safety Department would
prefer that all traffic be directed by the semaphore and not the slip ramp as this could
create more opportunity for accidents at an uncontrolled intersection.
Focusing all traffic to a semaphore controlled intersection with an opticom (which allows
emergency vehicles to control the signal) is the overall preferred solution for this
intersection. The Public Safety Department supports the improvements to the
intersection and frontage road as proposed by MNDOT.
IMEM11=1
Minnesota Department of Transportation
Metro District
Waters Edge Building
O F — 1500 West County Road B-2
Roseville, MN 55113
November 16, 2010
(sent bv email only)
Jennifer Levitt, KE,
Cottage Grove City Engineer
8G3S West Point Douglas Road
Cottage Grove, K8N55O16
Re: Hwy 61/Pt Douglas Drive Extension
Dear Ms. Levitt:
This letter b|n response to the city's question about a southbound Vwy 's 61
Dou8�sDr�eSouth remain aL the cunent|ouadoninsteadof turning et the Hwy 95 signal ao planned with
the frontage road extension project. Leaving any movements at this location b not compatible with the
purpose of this project. K8n/DOT agreed to provide funds to the project because all access was being
shifted to the signal, we would not support this type of project change.
M general goal is to improve the safety along Hwy 61byreducing direct access Hwy 6lat
uncontrolled intersections. Access to this neighborhood and business area b best served attheHwygS
signal. The frontage road extension tothe Hwy 61/95 signal provides reasonable access and iu the safest
location for all the traffic movements tooccur.
KAn/DOTb appreciative of the city's efforts to help improve the safety of Hwy 61bv pursuing this
Cooperative Agreement Access Project and potentially other future coop projects along Hwy 61.
Sincerely
Adam Josephson
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(M City of Cottage rove
Finance Department
TO: Honorable Mayor and City Council
Ryan Schroeder, City Administrator
FROM: Robin Roland, Finance Director
DATE: November 23, 201
SUBJECT: Special Assessments levied against commercial/industrial properties on City
projects
As Council considers the 2011 Pavement Management/West Point Douglas Road project,
questions may arise as to the amounts assessed against Commercial Properties in
comparison to other completed City projects.
The commercial properties on West Point Douglas Road are proposed to be assessed for
amounts which, although significantly less than the amounts identified in the project feasibility
study, still range from $20,000 to $50,000 per property. Although appraisals support these
potential assessment values, the property owners may question whether they are being
singled out to bear more of a burden than others.
• Feasibility Special
Report Value Benefit
Value
- Tir , - MI1 Z - Er - Fcff s n n e $212,797.65 En M-I Ill
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Ilk 36!1,272144#1147 (Gerlach's) 111111MITITIT11111111
MEM - 1-1 ' $35,00
011 $192,684.42 $46,200
A historical analysis of pavement management projects from 1994 through the Thompson
Grove phases I & 11 reflects that of the $7,336,106 in total special assessments, $1,029,737
(14%) was assessed to commercial/school district properties.
Honorable Mayor, City Council, and Ryan Schroeder
Page 2 of 2
Other projects with significant assessments to business included the 2000 Street
Improvements project and the Roundabout project. Commercial properties assessed with the
Roundabout project included Acorn Mini Storage ($34,917), Allina Health ($26,877), Menards
($59,296) and the Soo Line Railroad ($212,899) to name a few.
Statutory requirements hold that as long as special assessments increase the value of a
benefiting property, and said increase can be supported by appraisal valuation information,
those special assessments are valid whether against residential or commercial properties.
For Council's information only.
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1:\48\48102840\CAD\DWG\4810284ZFDO5.DWG DATE: 11/10/10 COMM: 48-10284-0
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
FOR
CITY OF COTTAGE GROVE
ATTN: HOWARD BLIN
COMMUNITY DEVELOPMENT DIRECTOR
7516 80 STREET SOUTH
COTTAGE GROVE, MN 55016
I: 1
PAUL J. GLEASON
AND
WILLIAM E. PETERSEN
B 4L f! 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.
SPRUCE TREE CENTRE SUITE 314
1600 UNIVERSITY AVE ST PAUL MN 55104
651 °646 °6114 FAX 651 brkw @brkw,com
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
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.
1 $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. 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
11.5%
11. 11865 Point Douglas Drive South
36- 027 -21 -44 -0014
3.53 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 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.
BIBKW 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. Glel ' on
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 OF THE APPRAISAL/INTENDED USERS ..................................... %
PROPERTY DLI&:BT8 APPRAISED .............................................................................. S
MARKETVALUE DEFINITION ................................................................................. 4
CONTINGENT AND LIMITING CONDITIONS ........................................................... 5
DESCRIPTION K}FSUBJECT PROPERTIES ............................................................... 6
DESCRIPTION OF EXISTING IMPROVEMENTS ...................................................... 1O
DESCRIPTION OF PROPOSED IMPROVEMENT8.,.-...........,,.,-.............,-J%
PINE COULEE PROJECT AREA MAP ............................................................................... l4
WEST POINT DOUGLAS ROAD EXTENSION PROJECT AREA MAP ............................................ l5
20ll PAVEMENT MANAGEMENT PROJECT AERIAL MAP ..................................................... }6
comcErnzAL LAYOUT op WEST POINT DOUGLAS ROAD EXTENSION .................................... l7
HIGHEST AND BEST USE ........................................................................................ l9
SPECIAL BENEFIT CONCLN8%ON8......,........,,,........,...,....,,.......,..-.......,,.J9
SPECIAL BENEFIT ANALYSIS PROCESS ................................................................. Zl
CERTIFICATION ..................................................................................................... %3
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. Tokheim
Lot 4, Block 6, Pine Coulee
Mary C. Tokheim
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, Countrywood
7. 11344 Leeder Avenue
36- 027 -21 -24 -0001
Michael J. Olson
Part of SE1 /4 -NW1 /4 lying SLY
Mary L. Olson
of HWY 61, Sec. 36- 027 -21
8. 11721 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 R/W
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 1
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
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.
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.
The property rights appraised are those of the fee simple estate.
r�re.�ncel
RKW APPRAISALS, INC. PAGE 3
Property
Zoning 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
RKW APPRAISALS, INC. PAGE 3
MARKET VALUE DEFINITION
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, INC. PAGE
4
1 1- 1 1 i
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.
IO.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.
It. 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.
i 1 MIUSIM=
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 Lockridge Ave
3" Bituminous, 4" Gravel, 2" Sand, 6" Sand with Silt
5
11566 Leeward Ave
2.5" Bituminous, 3" Gravel, 55' 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
Bituminous, 1" Gravel, 5" Mixed Soils, Clay & Organics
10
11760 Layton Ave
— 1.5"
4" Bituminous, 3" Gravel, Clean Sand
11
11680 Layton Ave
4" Bituminous, 2" Gravel, 7" Sand with Silt
-- T27.11570
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 now 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.
T;RKW 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.
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.
West Point Douglas Road Extension
BRKW APPRAISALS, INC. PAGE 12
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.
11. 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 and sole
access from Highway 61 to residential properties in the Pine Coulee project
area, including the Pine Coulee and Countrywood subdivisions, as well as to
the commercial properties fronting West Point Douglas Road.
$ILKW APPRAISALS, INC. PAGE 13
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PINE COULEE & HOWARD'S ADDITION
CITY OF COTTAGE GROVE, MN FIGURE 3 Cottage Grove
2011 PAVEMENT MANAGEMENT PROJECT =
1'.\48\ 48102890\CAD\DM\4810289ZFDO&DWG DATE: COMM:
BRKW APPRAISALS, INC. PAGE 14
LOCATION PLAN t-
COTTAGE GROVE, MINNESOTA FIGURE. I jw
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WEST POINT DOUGLAS ROAD EXTENSION
I:X48W102840'��WA DWG�4810284ZFD03.DWG DATE: 10114/10 COMM: 4810284
BRKW APPRAISALS, INC. PAGE 15
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HIGHEST AND BEST USE
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
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
1. 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.
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.
BRKW 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, _.
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.
after-
improvements Opinion of Land Value After Improvements
Similar to the b efore- improvements valuation, in the after-improvements valuation tho
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.
RKW 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.
j $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 Loclaidge 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. 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
11.5%
11. 11865 Point Douglas Drive South
36- 027 -21 -44 -0014
3.53 ac.
$307,100
$353,300
$46,200
15.0%
*Land area in acres excludes road R /W, if any
BRKW APPRAISALS, INC. PAGE
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.
? Pa�ul d JGleJ,n
Certifie General Real Property App raiser
Minnes License #40
William E. Petersen
Certified General Real Property Appraiser
\I #, w s • t . r 9
BRKW APPRAISALS, INC. PAGE 23
PROFESSIONAL QUALIFICATIONS
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 44003073
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 Educal
Appraisal 101:
Appraisal 102:
Appraisal 103:
Appraisal 104:
Appraisal 105:
ional Services, St. Paul, MN
Intro to Appraisal Principles I, 1992
Intro to Appraisal Principles II, 1992
Intro to Appraisal Practices 1, 1992
Intro to Appraisal Practices 11, 1992
Intro to Appraisal Standards and Ethics, 1992
Numerous Additional Seminars and Classes For Continuing Education From
Appraisal Institute and Other Sources, 1993-present
BRKW APPRAISALS, INC. PAGE 2
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. PAGE 25
.. �>
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
112
Certified General Real Property Appraiser - State of Minnesota - License #4001649
Expires 08/31/11
BRKW APPRAISALS, INC. PAGE 26
Professional Qualifications - Willia 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, M &I 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: January - 2010
... _. _.. _...........
BRKW APPRAISALS, INC. PAGE 27
X UL V A I MOM M INIM
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 APPRAISALS, INC. PAGE 28
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
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. WAGE 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.
••
third Mark is a generation real property appraiser and has been appraising since 2003.
Types of property appraised • office, • •
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.
III2KW APPRAISALS, INC. PAGE 30
Preliminary Project Layout
Hwy 61 and Point Douglas Dr So.
City of Cottage, Nin
West Point Douglas Road Extension
Entrance displayed at intersection 11+00 - 12 +00 (Hwy 61 and Point Douglas Dr. So. to
be allowed for right turn exit from Highway 61 south only, This is to accommodate
owner's driveway at 11627 Point Douglas Dr. So. Because during winter months the
incline of steep hill will cause the residence to be inaccessible. This access will also
provide for better availability from Hwy 61 to the 60 residents of both Pine Coulee,
County Wood developments and 3 Businesses on the Point Douglas Dr. So, frontage rd..
Name Address
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Preliminary Project Layout
Hwy 61 and Point Douglas Dr So.
City of Cottage, Mn
West Point Douglas Road Extension
Entrance displayed at intersection 11+00 -12+00 (Hwy 61 and Point Douglas Dr. So. to
be allowed for right turn exit from Highway 61 south only, This is to accommodate
owner's driveway at 11627 Point Douglas Dr. So. Because during winter months the
incline of steep hill will cause the residence to be inaccessible. This access will also
provide for better availability from Hwy 61 to the 60 residents of both Pine Coulee,
County Wood developments and 3 Businesses on the Point Douglas Dr. So, frontage rd.
Address
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Preliminary Project Layout
Hwy 61 and Point Douglas Dr So.
City of Cottage, Mn
West Point Douglas Road Extension
Entrance displayed at intersection 11+00 - 12 +00 (Hwy 61 and Point Douglas Dr. So. to
be allowed for right turn exit from Highway 61 south only, This is to accommodate
owner's driveway at 11627 Point Douglas Dr. So. Because during winter months the
incline of steep hill will cause the residence to be inaccessible. This access will also
provide for better availability from Hwy 61 to the 60 residents of both Pine Coulee,
County Wood developments and 3 Businesses on the Point Douglas Dr. So, frontage rd..
Name Address
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Preliminary Project Layout
Hwy 61 and Point Douglas Dr So.
City of Cottage, Mn
West Point Douglas Road Extension
a
Entrance displayed at intersection 11+00 - 12 +00 (Hwy 61 and Point Douglas Dr. So. to
be allowed for right turn exit from Highway 61 south only, This is to accommodate
owner's driveway at 11627 Point Douglas Dr. So. Because during winter months the
incline of steep hill will cause the residence to be inaccessible. This access will also
provide for better availability from Hwy 61 to the 60 residents of both Pine Coulee,
County Wood developments and 3 Businesses on the Point Douglas Dr. So, frontage rd..
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Name Address
Preliminary Project Layout
Hwy 61 and Point Douglas Dr So.
City of Cottage, Mn
West Point Douglas Road Extension
Entrance displayed at intersection 11+00 - 12 +00 (Hwy 61 and Point Douglas Dr. So. to
be allowed for right turn exit from Highway 61 south only, This is to accommodate
owner's driveway at 11627 Point Douglas Dr. So. Because during winter months the
incline of steep hill will cause the residence to be inaccessible. This access will also
provide for better availability from Hwy 61 to the 60 residents of both Pine Coulee,
County Wood developments and 3 Businesses on the Point Douglas Dr. So, frontage rd..
Name
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