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MEMORANDUM TO: Real Estate & Transportation Committee

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MEMORANDUM TO: Real Estate & Transportation Committee MEMORANDUM TO: Real Estate & Transportation Committee Commissioner Don Selvage, Chairman Commissioner Justin Troller Commissioner Phillip Walker FROM: City Attorney’s Office DATE: November 7, 2016 RE: Purchase of Two Right of Way Parcels for North Wabash Avenue Extension Project – Parcels 103 and 104 Two parcels located in the NW quadrant of the 10th Street/Wabash Avenue intersection are required for the North Wabash Avenue extension from 10th Street to Fairbanks Street. The property is vacant and is bisected by a large drainage ditch. An informal memorial to Deputy Matt Williams and K9 Diogi, who were killed in 2006, is located along the Wabash Avenue frontage. It is proposed that the entire 10.06-acre site be purchased. The new roadway will be constructed along the east portion of the property and a new stormwater retention pond will be constructed in the north 3/5 of the property. The City engaged L. Burl Wilson, Jr., MAI to appraise the property. Mr. Wilson’s comparable sales indicate a range of value of $3,525.94 per acre to $11,512.91 per acre for the land. His conclusion is that the per unit value for the property is considered to be $7,750 per acre, which indicates a total value for the property of $78,000. The City’s initial offer was made at Mr. Wilson’s appraised value. The owner’s counsel countered with an offer of $150,000. After several iterations, the parties have reached a proposed global settlement purchase price of $115,000, which is allocated as $108,500 for the value of the land (less closing costs) and $6,500 for attorney fees. The agreed purchase price equates to a per acre value of $10,785.28, which is within the range of value considered by the appraiser in this case. Taking into consideration the appraisal report and the potential expenses associated with eminent domain litigation, it is recommended that the subject property be purchased for $108,500, less associated closing costs, and $6,500 for attorney’s fees and expenses, for a total settlement purchase price of $115,000. Transportation Impact Fee revenue is allocated for this project in the FY 2017 Transportation Fund’s North Wabash Avenue Extension Right of Way Acquisition project budget. It is recommended that the City Commission authorize the appropriate City officials to purchase parcels 103 and 104 for the North Wabash Avenue Extension Project per the terms stated above. attachment AN APPRAISAL REPORT OF The Parent Tract of Parcel 103 and 104 of the North Wabash Extension Project VALUE DATE APRIL 13, 2016 PREPARED FOR THE CITY OF LAKELAND C/O AMERICAN ACQUISITION GROUP, LLC 711 N. SHERRILL STREET,SUITE B TAMPA, FL 33609 BY L. BURL WILSON,JR., MAI WILSON REAL ESTATE,INC. 625 EAST LIME STREET SUITE 2 LAKELAND, FL 33801 Table of Contents ADDRESS AND LOCATION ..................................................................................................... 2 PROPERTY OWNER NAME AND ADDRESS ............................................................................. 2 LEGAL DESCRIPTION ............................................................................................................ 2 PROPERTY INSPECTION ......................................................................................................... 2 HISTORY OF THE PROPERTY (LAST FIVE YEARS) .................................................................. 3 DESCRIPTION OF THE PROPERTY ........................................................................................... 3 DESCRIPTION OF BUILDING IMPROVEMENTS ......................................................................... 4 ZONING,LAND USE PLANNING, AND CONCURRENCY ........................................................... 8 ASSESSED VALUE,TAXES, AND SPECIAL ASSESSMENTS: ..................................................... 8 PROPERTY RIGHTS APPRAISED ............................................................................................. 8 PUBLIC AND PRIVATE RESTRICTIONS .................................................................................... 9 PURPOSE,INTENDED USE, AND INTENDED USER OF THE APPRAISAL .................................... 9 APPRAISAL PROBLEM ........................................................................................................... 9 DEFINITION OF MARKET VALUE ......................................................................................... 10 EFFECTIVE DATE (DATE OF VALUE) ................................................................................... 10 DATE OF REPORT ................................................................................................................ 10 AREA AND NEIGHBORHOOD ANALYSIS .............................................................................. 10 SCOPE OF THE APPRAISAL ................................................................................................... 10 HIGHEST AND BEST USE ..................................................................................................... 12 Definition ....................................................................................................................... 12 Analysis ......................................................................................................................... 12 APPROACHES TO VALUE UTILIZED ..................................................................................... 13 DIRECT SALES COMPARISON APPROACH –AS VACANT ..................................................... 13 Cost Approach to Value ................................................................................................. 17 Sale Comparison Approach ........................................................................................... 17 Income Approach to Value ............................................................................................ 17 RECONCILIATION OF APPROACHES ..................................................................................... 17 VALUE OF THE PART TAKEN ................................................................................................... 18 VALUE AFTER THE TAKING ................................................................................................ 18 Summary of Values ........................................................................................................... 18 CERTIFICATE OF VALUE OF THE APPRAISER ....................................................................... 19 ASSUMPTIONS AND LIMITING CONDITIONS ......................................................................... 22 ADDENDA……………………………………………………………………………….26 LOCATION MAP .............................................................................................................. 27 LAST INSTRUMENT OF CONVEYANCE ............................................................................. 29 DEMOGRAPHIC INFORMATION ............................................................................. 32 SALES LOCATION MAP ................................................................................................... 33 COMPARABLE SALES ...................................................................................................... 35 DEFINITIONS ................................................................................................................... 48 QUALIFICATIONS OF THE APPRAISER ..................................................................... 52 1 ADDRESS AND LOCATION The subject property is located in the northwest quadrant of the intersection of Wabash Avenue N. and 10th Street W. in Lakeland, FL. It is identified with two tax identification numbers. Later analysis will indicate that the two parcels should be treated as one parent tract. There is no physical address listed but both parcels comprising the parent tract are identified as being on 10th Street West. PROPERTY OWNER NAME AND ADDRESS Faizool Rahamon 8635 104th Street Richmond Hill, NY 11418-1539 LEGAL DESCRIPTION PARENT PARCEL OF 103 & 104: THE EAST ½ OF THE SOUTHEAST ¼ OF THE SOUTHEAST ¼ OF THE NORTHEAST ¼ OF SECTION 10, TOWNSHIP 28 SOUTH, RANGE 23 EAST, AND THE WEST ½ OF THE SOUTHEAST ¼ OF THE SOUTHEAST ¼ OF THE NORTHEAST ¼ OF SECTION 10. TOWNSHIP 28 SOUTH, RANGE 23 EAST, LESS ROAD RIGHT OF WAY AS RECORDED IN OFFICIAL RECORD BOOK 4826, PAGE 1215, OF THE PUBLIC RECORDS OF POLK COUNTY, FLORIDA. Source: Deed Recorded in OR Book 6448, Page 2113 and also in OR Book 6448, Page 2114, Polk County Public Records PROPERTY INSPECTION The subject property has been inspected on numerous occasions from the roadside. At the request of the client representative no contact letter was sent to the owner. An inspection on April 5, 2016 included the road perimeter of the property and accessible interior areas on the north part of the densely vegetated site. No one accompanied me on this inspection. The property was last viewed from the roadside on April 13, 2016, the date of value. APPRAISAL REPORT FORMAT Appraisal Report, property is vacant land. This report is intended to comply with the requirements of USPAP. 2 HISTORY OF THE PROPERTY (LAST FIVE YEARS) The most recent transfer of the subject property was by two Warranty Deeds on October 14, 2005. The transactions are recorded in OR Book 6448, Page 2113 and Page 2114. The first was a transfer from Noretta K. Medford, a single woman Betty F. Dansby (this is exactly how listed) to Faizool Rahamon. This deed was signed only by Noretta K. Medford and indicated a consideration of $50,000. The second was signed only by Betty F. Dansby and indicated consideration
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