HomeMy Public PortalAbout1991.05.29 Market Value AppraisalMARKET VALUE APPRAISAL
OF
FOUR SEPARATE PARCELS
LOCATED ON , OR NEAR
THE
MCCALL GOLF COURSE
MCCALL, IDAHO
FOR
CITY OF MCCALL
BUD SCHMIDT
AND
DON AND DICK MEDLEY
MCCALL, IDAHO
VALUATION DATE:
MAY 29, 1991
FILE # 91-248
BY
TREY KNIFE, MAI
REAL ESTATE CONSULTING GROUP, INC.
3000 NORTH LAKEHARBOR LANE
SUITE 200
BOISE, IDAHO 83703
REAL ESTATE CONSULTING GROUP, INC.
REAL ESTATE APPRAISERS • INVESTMENT ADVISORS • CONSULTANTS
Tom McKEvITT, MAI
TREY KNIPE, MAI
JACK COCHRAN, SRA
BRADFORD KNIPE
July 2, 1991
Mr. Bud Schmidt, City Administrator of McCall
Don and Dick Medley, D and D Lands
P. 0. Box 1065
McCall, Idaho 83638
Re: A narrative appraisal report on four separate parcels located on or near the
McCall Golf Course in McCall, Idaho. (Golf Course Exchange Parcels)
Gentlemen:
In accordance with your request for an appraisal on the above -referenced parcels, I have
conducted market investigations, gathered pertinent data, and performed certain analyses
necessary for the completion of the appraisal process.
The analysis in this appraisal consists of four separate parcels located on, or near, the McCall
Golf Course, in McCall, Idaho. Additionally, the analysis includes a 10 foot by 1,250 foot
strip of land along the right-of-way of Clements Road (extended). While this narrow strip of
land may be viewed as a part of the land area from which it was originally subdivided (under
these circumstance it could theoretically have a contributory value of approximately $24,000
to the larger parcel), from a practical standpoint, its value is nominal as it is currently
subdivided.
While this appraisal will be utilized as the basis for establishing the value of the respective
parcels appraised for the purpose of effecting a land exchange between the parties referenced
herein, it should be clearly understood by the reader of this report that the value estimates
remain unaffected under the definition of Market Value utilized, regardless of the intended
use or function of the appraisal. Although a range of value has been estimated for two of the
parcels, the range indicated in each case is based on differing assumptions as discussed in the
analysis of those specific parcels. Individual legal descriptions for each parcel are set forth
following in the report.
Based upon a physical inspection of each parcel, the analyses undertaken, and subject to the
assumptions and limiting conditions set forth in the report following, it is my concluded
opinion as of May 29, 1991, the estimated Market Value of each parcel in Fee Simple Title
was:
Parcel # 1 $148,000 to $170,500
Parcel # 2 $51,500 to $69,000
Parcel # 3 $234,000
Parcel # 4 $116,000
3000 NORTH LAKEHARBOR LANE • SUITE 200 • BOISE, IDAHO 83703 • TELEPHONE (208)853-2020 • FAX (208)853-2028
TABLE OF CONTENTS
COVER PAGE
LETTER OF TRANSMITTAL
Table of Contents iv
Certificate of Appraisal v
Abstract vi
APPRAISAL REPORT 1
Conditions for the Appraisal Report 2
Purpose of the Appraisal 2
Function of the Appraisal 2
Definition of Market Value 2
Identification of the Property(s) 3
Ostensible Owner 4
Property Rights Appraised 4
Date of Appraisal 4
Ownership History 4
Valley County Profile 5
Neighborhood Analysis 13
The Neighborhood Defined 13
Characteristics of the Neighborhood 13
Conclusions 15
Real Estate Taxes and Assessments 16
Zoning 17
The Appraisal Process 20
Scope of the Assignment 21
Estimation of Site Value 22
Sales Comparison Approach 22
Summary of Comparable Land Sales 23
Sales Location Map 25
Discussion of Comparable Land Sales 28
41
Analysis of Adjustments
Parcel 1 -
Parcel 2 -
Parcel 3 -
Parcel 4
1.910 Acres 45
0.488 Acres 62
2.970 Acres 74
- 0.832 Acres 87
ADDENDA 99
Land Sale Comparables
Idaho State Data
Reedy Lane and Fairway Drive Description
Warranty Deed
Map of Timberlost VI Subdivision
Golf Course Lots
Legal Description
Zoning Ordinance
Comprehensive Plan
Underlying Assumptions and Limiting Conditions
Appraiser's Qualifications
REAL ESTATE CONSULTING GROUP, INC. • iv
GOLF COURSE EXCHANGE PARCELS
CERTIFICATE OF APPRAISAL
I certify that, to the best of my knowledge and belief:
1. The statements of fact contained in this appraisal report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions and are my personal, unbiased professional
analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the subject of this
report, and I have no personal interest or bias with respect to the parties involved.
4. My compensation is not contingent on an action or event resulting from the analyses,
opinions, or conclusions in, or the use of, this report.
5. The appraisal assignment was not based upon a requested minimum valuation, a
specific valuation, or the approval of a loan.
6. My analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and
the Standards of Professional Practice of the American Institute of Real Estate
Appraisers. Additionally, the appraisal report is made in conformity with the
Uniform Standards of Professional Appraisal Practices.
7. The use of this report is subject to the requirements of the Appraisal Institute relating
to review by its duly authorized representatives.
8. I have made a personal inspection of the property that is the subject of this report.
9. No one provided significant professional assistance to the person signing this report.
10. The Appraisal Institute conducts a voluntary program of continuing education for its
designated members. MAIs who meet the minimum standard requirements of this
program are awarded periodic education certification. As of the date of this report, I,
Trey Knipe, have completed the requirements under the continuing education
program of the Appraisal Institute.
Based upon a physical inspection of each of the parcels, the analyses undertaken, and subject
to the assumptions and limiting conditions set forth in the report following, it is my
concluded opinion as of May 29, 1991, the Market Value of the parcel under appraisement in
Fee Simple Title was:
Parcel # 1 $148,000 to $170,500
Parcel # 2 $51,500 to $69,000
Parcel # 3 $234,000
Parcel # 4 $116,000
REAL ESTATE CONSULTING GROUP, INC. • v
GOLF COURSE EXCHANGE PARCELS
ABSTRACT
PROPERTY TYPE: FOUR SEPARATE PARCELS OF LAND
NAME: GOLF COURSE EXCHANGE PARCELS
LOCATION: MCCALL GOLF COURSE, IN MCCALL, IDAHO.
LEGAL DESCRIPTION: AS CONTAINED WITHIN THE ADDENDA.
OSTENSIBLE OWNER: CITY OF MCCALL / DON AND DICK MEDELY
SITE SIZE / CONFIGURATION: PARCEL # 1 1.910 ACRES
PARCEL # 2 - 0.488 ACRES
PARCEL # 3 - 2.970 ACRES
PARCEL # 4 - 0.832 ACRES
ZONING: LOW DENSITY RESIDENTIAL -A
HIGH DENSITY RESIDENTIAL -B
IMPROVEMENTS: N/A
HIGHEST AND BEST USE: RESIDENTIAL DEVELOPMENT
RIGHTS APPRAISED: FEE SIMPLE ESTATE
DATE OF APPRAISAL: MAY 29, 1991
SUMMARY OF VALUE ESTIMATES:
PARCEL 1-1.910 ACRES $148,000 TO $170,500
PARCEL 2 - 0.488 ACRE $51,000 TO $69,000
PARCEL 3 - 2.970 ACRES $234,000
PARCEL 4 - 0.832 ACRE $116,000
REAL ESTATE CONSULTING GROUP, INC. • vi
GOLF COURSE EXCHANGE PARCELS
APPRAISAL REPORT
REAL ESTATE CONSULTING GROUP, INC. • 1
GOLF COURSE EXCHANGE PARCELS
CONDITIONS FOR THE APPRAISAL REPORT
PURPOSE OF THE APPRAISAL
The purpose of this appraisal report is to estimate the Market Value of the Fee Simple
Estate for the various, legally described parcel's under analysis, and to clearly communicate
the data and reasoning leading to the formulation of the value estimates for each parcel.
FUNCTION OF THE APPRAISAL
It is the understanding of REAL ESTATE CONSULTING GROUP, INC. that the function of this
appraisal report will be to assist the city of McCall and D & D Lands in establishing current
estimation(s) of value (in Fee Simple) for four separate parcels of land located on, or near the
McCall Golf Course, in McCall, Idaho.
It should not be interpreted, however, that the function of the report, regardless of any
intended use or function, impacts the estimation of market value, as defined herein, or the
objectivity of the appraiser.
DEFINITION OF MARKET VALUE
For purposes of this report, the definition of Market Value will be that utilized by the
State of Idaho Judicial System. After discussions with the State of Idaho Attorney General's
Office and with other public sector legal counsel, the applicable, pertinent definition is:
Market Value of property is [the] price it will bring when offered for sale by one who
desires but is not obligated to sell, and is bought by one who is not obligated to
purchase property".1
Through various private and public inquiries, I have not found a more recent state judicial
interpretation; however, it is interesting to note that through the many years of defining
market value, the relied upon concept has changed very little, with only slight elaboration
apparent.
lIdaho Farm Development Co. v. Brackett, 36 Idaho 748, 213 P696 (1923).
REAL ESTATE CONSULTING GROUP, INC. • 2
GOLF COURSE EXCHANGE PARCELS
"NEW"
CLUB
HOUSE
CONDO ARCA
// t
fin/ / l
/
.K.415
I
FAIRWAY / e 0, I
/
). • I
i, 1
.//
/ 1 ®.,,,,, ..,
® a ' 7/
I &NZ ICVSS . 11 17
®
/SIVAIr k
I
/
.. II
0
SOSO .
:It
ooc
I 'CI
."4 •
1 :0® .....
i /
® '.1 1
/ Z
1. VW .4 ,
ta
1 • vas, tu‘
VY Mail
SSW
FAIRWAY
TIMBERLOST VI SUBDIVISION
_O _.10 zo ISO .1(la
Uwe Onphms. Inc OCOPYIIIONT
REAL ESTATE CONSULTING GROUP, INC.
REAL ESTATE APPRAISERS • INVESTMENT ADVISORS • CONSULTANTS
For example, Market Value is defined by the Uniform Standards of Professional
Appraisal Practice as:
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 and
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:
1. buyer and seller are typically motivated;
2. both parties are well informed or well advised, and acting in what they consider
their best interests;
3. a reasonable time is allowed for exposure in the open market;
4. payment is made in terms of cash in United States dollars or in terms of financial
arrangements comparable thereto; and
5. 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.
Substitution of another currency for LJnited States dollars in the fourth condition
is appropriate in countries or in reports addressed to clients from other countries.2
This definition is substantially the same definition as that used by the American Institute
of Real Estate Appraisers in the 1984 edition of The Dictionary of Real Estate Appraisal,
with the exception of the "all cash" requirement.
IDENTIFICATION OF THE PROPERTY (S)
As previously noted, this appraisal report will analyze four separate, legally defined
parcels located on, or near the McCall Golf Course, in McCall, Idaho. As this report
continues, each parcel will be addressed and analyzed separately. Therefore, at this time,
only a brief description is put forth for the individual parcel's appraised. A complete legal
description for each parcel appraised is provided in the addenda of the report.
Parcel # 1 - 1.910 Acres
Parcel # 2 - 0.488 Acres
Parcel # 3 - 2.970 Acres
Parcel # 4 - 0.832 Acres
2 Uniform Standards of Professional Appraisal Practice, The Appraisal Foundation, 1990 (as of 9-28-90).
REAL ESTATE CONSULTING GROUP, INC. • 3
GOLF COURSE EXCHANGE PARCELS
OSTENSIBLE OWNER
Based upon my discussions with Mr. Bud Schmidt, City Administrator of McCall, and
Don Medley, of D & D Land, ownership of the various parcels under appraisement is in the
name of:
City of McCall
OR
D&DLand
PROPERTY RIGHTS APPRAISED
Since the purpose of the assignment is to establish an estimate of value for exchange of
the respective parcels, it is necessary to address the rights of the unencumbered Fee Simple
Estate.
Fee Simple Estate is defined as:
"Absolute ownership unencumbered by any other interest or estate; subject only to
the limitations of eminent domain, escheat, police power, and taxation".3
DATE OF APPRAISAL
The date that this value estimate applies is May 29, 1991, with the physical inspection of the
parcel conducted on that and subsequent dates. This date is important because it sets the
critical point in time from which the appraiser examines the market and thus establishes the
context for the value estimate. Real estate markets are inherently cyclical in nature, and other
socioeconomic factors are constantly in a state of flux. Any valuation upon which future
investment decisions are to be predicated must be understood in light of the prevailing
economic conditions at the time of the valuation, and adjustments for changes in those
conditions must be made accordingly.
OWNERSHIP HISTORY
It is my understanding that the land area from which several of the subject parcel was
subdivided, now under the ownership of D & D Land, was purchased in 1990 as two separate
tracts of 5.56 and 5.76 acres. Both parcels were subsequently subdivided, together with a
3 The Dictionary of Real Estate Appraisal Terminology, American Institute of Real Estate Appraisers of
the National Association of Realtors, 1984, p. 180.
REAL ESTATE CONSULTING GROUP, INC. • 4
GOLF COURSE EXCHANGE PARCELS
The following narrative appraisal report sets forth the identification of each parcel, pertinent
facts about the investigations and analyses, and the reasoning leading to the conclusions set
forth.
I trust you will find the information contained in the report relevant to your decisions
regarding each of the parcel's appraised. Should you have any questions regarding this
report, or if I may be of further service to you on this or future projects, please contact me at
your earliest convenience.
Sincerely,
REAL ESTATE CONSULTING GROUP, INC.
//4r
Trey Knipe, MA
REAL ESTATE CONSULTING GROUP
The preceding profile of Valley County provides a good foundation and overview from
which to narrow the focus towards the City of McCall and the subject parcels.
McCall is located approximately 108 miles north of Boise, the State Capitol, and is the
major business center in Valley County, offering a wide range of services available. The
City of McCall is situated on the south shore of the glacially formed Payette Lake, and is the
largest community in Valley County with a population .of 2,670 full time residences,
escalating to nearly 10,000 during the summer months. This alpine community offers a wide
variety of multi -seasonal recreational opportunities for full time residences, and vacationers
alike.
McCall has an elevation of 5,021 feet above sea level and experiences temperatures
ranging from 80°-90° in the summer months, to below 0° in the coldest winter months.
Winter snow fall averages 60 inches in town to almost a 100 inch base at the Brundage
Mountain Ski area approximately five miles north of McCall's city center.
Electrical service is provided by Idaho Power Company; Continental Telephone
Company provides telephone service; and natural gas is supplied and distributed to local
residences by Cal Gas. The City of McCall provides both water and sewer service to local
residences within the city limits. Water is supplied from Payette Lake with a 3 mil GPD
capacity; 2.5 mil GPD peak load, and provides an infinite water supply. Storm and sanitary
sewer are serviced by a sediment type treatment plant providing a 2 mil GPD capacity.
State Highway 55 routes through McCall connecting with State Highway 95 in New
Meadows, 11 miles north, and provides paved year-round access to the area. The McCall
Municipal Airport is a 6,100' paved and lighted/VASI runway, with jet capabilities.
Presently, scheduled daily service (other than charter) from Boise is not available.
McCall has one elementary school (K-6) and one high school (9-12). The junior high
school (7-8) is located in Donnelly, some 11 miles south of McCall. Eighty-nine percent
(89%) of the McCall -Donnelly School District is state and federally owned land, while only
eleven percent (11%) is in private ownership. All of the schools in the McCall -Donnelly
School District are accredited with the State of Idaho, and the high school is also accredited
with the Northwest Accreditation Association.
McCall is once again vibrant and experiencing relatively strong growth, as compared
with just a few years ago when the local economy was stagnate. McCall's economy was
REAL ESTATE CONSULTING GROUP, INC. • 10
GOLF COURSE EXCHANGE PARCELS
particularly sluggish in the early to mid 1980's when interest rates were high, creating a
nonexistent secondary housing market, and leaving local businesses struggling for survival.
Over the last two decades McCall has seen a cyclical real estate market, but the foreseeable
future appears to warrant increased optimism.
Boise is also experiencing growth and development substantially above levels
experienced a few years earlier. This is notable because McCall's economy has typically
paralleled the expansion and contraction of Boise's economy. Additionally, much of
McCall's tourist population lives in the Boise Valley. Many valley resident's have second
homes in McCall, and this trend is expected to continue expanding into the foreseeable
future. One reason why this trend will likely increase in intensity is because of the pressure
on other recreational areas, such as Sun Valley, which have become high priced
comparatively, and now less affordable to the average professional living in Idaho. Also,
much of the current expansion and growth in the Boise market is the result of professionals
being transferred in from other areas, bringing with them incomes and equities sufficient to
purchase homes in the secondary housing market, such as that which is available in the
McCall market.
With the median price of housing at just under $75,000 in McCall, as compared with over
$350,000-$650,000 in Sun Valley/Ketchum areas of Blaine County, McCall offers
substantially more purchasing power for the dollar invested. From all accounts, McCall's
recreational market, offering both diversity and beauty, appears poised for a period of
increasing market appreciation.
The service and trade industries together form the largest sector of the employment base
in the community; however, the U.S. Forest Service is the largest single employer, positively
affecting the area's economy as it also maintains a large fire fighting base in McCall during
the summer fire season. McCall is the headquarters of the Payette National Forest, which
contains the Idaho Primitive Area.
Although the timber industry has typically been the economic mainstay over the years,
today, tourism is the primary industry in McCall. People from all over the United States
stream into McCall for year around recreation, taking advantage of the vast lakes, rivers, and
mountains. In the winter, Brundage Mountain Ski area provides some of the best powder
skiing in the West. Recent and planned expansion of the lodging and recreational facilities in
the area will further propel the local economy and make the area that much more available
and accommodating to the growth which is anticipated. Seasonal fluctuations still effect the
REAL ESTATE CONSULTING GROUP, INC. • 11
GOLF COURSE EXCHANGE PARCELS
economy, but now have less impact as growth and development seemingly continue
throughout the entire year.
As new and established businesses begin to flourish and prosper in this period of growth,
McCall's economy over the near term is likely to represent the boom side of a
supply/demand curve. Knowledgeable market participants will recognize this phase of the
development life cycle and invest accordingly. Guarded optimism is the watch word as
McCall's economy begins to blossom into the 1990's.
REAL ESTATE CONSULTING GROUP, INC. • 12
GOLF COURSE EXCHANGE PARCELS
S N.
S N.
a
37 32
0
.OA
PAYETTE LAKE
FITMI LN.
PONDEROSA
STATE
PARK
STRAINIKRRY LA11E
[V[KNI[EK LAK
MK LUTE
ROAD -
5000 STUN
.Fw
GOLF
COURSE
*two. t '0
Q
C
LAK
114141
MAP
'USN
Art Roberts
SSE hjark
Luz
UI
F
M
PARR IT.
9?.
to
COLORED° ST.
t K)
K IS
A10 VISTA 1BLVD.
CEO/
St
DEINNARn LAME
It
55
AkCALL
AIRPORT
-� Neighborhood Map
A'N
20 21
IM
RK LANE li 16
21 22
1
1
1
1
1
1
1
CIRCLE
•
E CinpwEE C.CO0771OHT lore
REAL ESTATE CONSULTING GROUP, INC.
REAL ESTATE APPRAISERS • INVESTMENT ADVISORS • CONSULTANTS
NEIGHBORHOOD ANALYSIS
A property is a fixed and integral part of its neighborhood, and as such, cannot be treated
as an entity separate from its environment. Thus, the value of real property is not intrinsic,
but flows into the property from the environing forces and shares the future with the
neighborhood in which it is located.
The economic life of a neighborhood is in turn determined by the physical characteristics
of the land, and the types of improvements located within it. In order for a property to
achieve maximum economic value in a neighborhood, the improvements must be designed
such that they complement the existing or transitory nature of that neighborhood, and appeal
to the users which they were designed to serve. Simply stated, maximum economic value is
achieved when a property is improved in such a way that both its appearance and its utility
are functionally homogeneous in relation to the character of the surrounding neighborhood.
THE NEIGHBORHOOD DEFINED
The subject parcels are located on or near the McCall 18 Hole Municipal Golf Course,
less than one (1) air mile northeast of the Central Business District of McCall. As might be
expected, the influence of the golf course itself is the single greatest geographic feature
impacting the subject parcels within the neighborhood. However, general neighborhood
boundaries are defined as Davis Avenue along the neighborhood's western boundary; Lick
Creek Road to the north; Wooley Avenue to the south; and to the east, undeveloped lands
border the golf course where the proposed third nine holes for the city course are proposed.
This proposed development will be discussed in greater detail following.
CHARACTERISTICS OF THE NEIGHBORHOOD
Existing development within the vicinity of the subject parcels consists primarily of
single family residential development in the form of secondary recreational housing;
however, primary residences are noted, which is becoming more prevalent in the entire
McCall market area. Additionally, higher density residential housing units in the form of
condominiums are noted on the periphery of the golf course, and this trend is continuing as
new development occurs. As such, a wide variety of home designs, sizes, and quality exist
throughout the various developments within the neighborhood, which appears typical of this
recreational market in general. The neighborhood as defined contains a mixture of single
family residential housing units ranging in price from around the $20,000 level for older
REAL ESTATE CONSULTING GROUP, INC. • 13
GOLF COURSE EXCHANGE PARCELS
homes off the golf course, to over $250,000 for new homes being developed on the golf
course. Condominiums in the defined neighborhood range in price from around $50,000 to
over $200,000.
As discussed previously, the population in McCall shifts dramatically upward in the
summer months, as recreational use intensifies. However, of interest to note, recent new
construction trends around the lake and the golf course indicate that substantial new
improvements are being developed allowing for year around use, as well as an increasing
number of individuals building homes as their primary residences.
Downtown McCall has recently seen an influx of new ownership and businesses (as a
result of bank foreclosures in the mid 1980's) that appear to have rejuvenated the downtown
area. New money is being invested, which is creating (at least the appearance of) prosperity
in this resort community. The landmark Hotel McCall was renovated about three years ago
and is now catering to a bed and breakfast type clientele. The Yacht Club has again
undergone substantial renovation, and is making a new start with new tenants and new
businesses. The McCall Mall and Lake Street Plaza are under new ownership, as is Medley
sports. Controlling interest of the common stock in the widely acclaimed Shore Lodge, with
110 rooms, was gained by Douglas F. Manchester last year, who substantially remodeled that
facility this past winter.
Brundage Mountain, located approximately five miles northwest of McCall, developed a
new chair lift in the summer of 1990, bringing their total to three chair lifts and a poma lift;
cat skiing off the mountain was also introduced this past ski season. There are plans for a
new lodge at the top of the mountain, which may be ready for the 1991-92 ski season.
Additional chair lifts are planned for the mountain, all of which will further promote winter
tourist travel in McCall, and help to reduce the seasonal fluctuations experienced by the
community in the past.
A large destination resort development known as ValBois, which recently received
approval after a lengthy environmental review and public comment, is to be located near
Donnelly, Idaho, some 15 miles south of McCall. This proposed development will
reportedly cost in excess of $100 million to develop, and is to include an entire village with
such additional amenities as: seven ski lifts and a gondola, an 18 hole golf course, 17 tennis
courts, equestrian and ice skating facilities, as well as a 250 slip boat marina on Cascade
Reservoir. The effect a development this size will have on the economy of McCall, and
Valley County as a whole is difficult to project, but would likely bolster the local economy
REAL ESTATE CONSULTING GROUP, INC. • 14
GOLF COURSE EXCHANGE PARCELS
beyond levels ever experienced. Some of the current enthusiasm found in the market must be
attributed to the possibility of the this development becoming a reality.
Lake front residential property in McCall, comparatively speaking, has always sold at a
premium. This desirable real estate has jumped from $1,500 a front foot, within the last four
years, to a around $3,000 per front foot, and as stated by local real estate brokers, "will trend
towards $3,500 to 4,000 per front foot this summer, if any can be found for purchase".
CONCLUSIONS
In summary, Payette Lake and the surrounding national forests have numerous
recreational opportunities appealing to Idaho residences, tourists, and a growing number of
out-of-state buyers entering the state from all over the country. The subject neighborhood
offers residences the recreation of the golf course, coupled with good proximity to the lake
and other recreational opportunities in the vicinity. While demand for lake front property has
been at an all time high for the past couple of years, golf course lots have also seen good
demand and substantial price level increases over this same period. Appreciation rates seen
in this market over the recent past have ranged from 10% to over 100%, but realistically,
appreciation rates are not expected to continue at these upper end levels. In fact, the market
may experience a leveling off period, or even some declines in the near term after initial
demand serges have been satisfied emerging from a soft market. While modest appreciation
is more likely over the next couple of years, much depends on the national economy.
The local economy has been vibrant, with growth and development approaching record
levels in 1990; much the same is anticipated for 1991. Supply/demand factors keenly
observed by market participants may eliminate overbuilding, as experienced in the late 70's
and early 80's. While the effects of a softening national economy have begun to surface in
Idaho and cannot be entirely overlooked, continued demand for recreational property and
appreciation may reasonably be anticipated, barring an unforeseen lengthy national recession.
REAL ESTATE CONSULTING GROUP, INC. • 15
GOLF COURSE EXCHANGE PARCELS
REAL ESTATE TAXES AND ASSESSMENTS
Valley County is divided into 46 tax code areas and exhibits a variety of mill levy rates;
however, the subject parcels are located in Code Area 03 and all residential properties have
the same mill levy in this code area. The mill levy for 1990 for this area of the county, which
was set in October of 1990, was .012853. The mill levy for 1991 will not be set until
October of this year.
Since the majority of the subject parcels were subdivided in 1990, no assessments or
taxing histories have been established for the parcels. The city owned parcel's are not taxed,
therefore no further discussion will be presented concerning real estate taxes.
REAL ESTATE CONSULTING GROUP, INC. • 16
GOLF COURSE EXCHANGE PARCELS
ZONING
As discussed in the report preceding, the parcels under analysis are located in close
proximity to the McCall Golf Course, near residential neighborhoods offering compatible
homogeneous uses to that contemplated for the subject parcels. While in some cases the
residential improvements on the various lots throughout these neighborhoods may vary
dramatically in size, style, and quality, little difference in use is noted throughout the
neighborhood area. Higher density residential uses, typically in the form of condominiums,
are also noted, and are considered to be equally compatible to the generally established
neighborhood trends.
Discussions with the Planning and Zoning office in McCall indicate the subject parcel's
are located within the City Limits of McCall and have either a low density residential
development zoning classification consistent with "Zone A", or a medium density residential
zone classification consistent with "Zone B", as may be noted from the Zoning Ordinance of
the City of McCall.
The general purpose of Zone "A" is to:
(A) establish standards governing the development, construction and use of housing
and the residential environment in urbanized or partially urbanized areas of the
City of McCall;
(B) provide and protect residential lands for conventional single-family housing and
other uses beneficial to urban residential development;
(C) provide an opportunity for all groups of persons to obtain adequate housing within
each area of the city suitable for residential use in relation to other land uses and
consistent with the preservation of natural, scenic and historical resources;
(D) encourage a variety of housing types, sizes and densities necessary to meet the
needs of all economic groups.
The permitted uses in Zone A include (A) single-family and multifamily dwelling units of
no more than four (4) dwelling units per acre; (B) compatible limited commercial uses, such
as home occupations provided that such uses meet the approval of the commission; and (C)
outbuildings, sheds for tools, fuel and accessory to and used in connection with a residence
building.
REAL ESTATE CONSULTING GROUP, INC. • 17
GOLF COURSE EXCHANGE PARCELS
The reader is referred to the City of McCall Zoning Ordinance for a specific breakdown
of all the uses possible in this district. However, items within the Ordinance of particular
interest to this analysis are discussed following.
In the "A" Zone, the minimum average lot area shall be 10,000 square feet; no lot shall be
less than 7,500 square feet. Minimum lot width shall not be less than 60 feet; except a flag
lot, which shall not be less than 20 feet wide at the pole section of the lot. The average
length of any lot shall not be greater than three times the average width. Permitted density
shall not exceed four (4) dwelling units per acre. Additionally, no building will exceed 35
feet in height. On-site parking areas and setbacks will conform to the space requirements and
the standards set forth by the Ordinance.
The general purpose of Zone "B" is to:
(A) establish standards governing the development, construction and use of housing
and compatible uses in areas of McCall which already contain, or are suitable for
moderately intensive residential use;
(B) preserve the environmental quality of areas which attract more intensive
residential use;
(C) provide opportunity for all groups of persons to obtain adequate housing within
each area of the City suitable for residential use in relation to other land uses and
consistent with the preservation of natural, scenic and historical resources;
(D) encourage a variety of housing types, sizes and densities necessary to meet the
needs of all economic groups.
The permitted uses in Zone B include (A) single-family and multifamily dwelling units of
no more than eight (8) dwelling units per acre; (B) all limited commercial uses permitted in
Section 3-5-2-B (Low Density Residential District); and (C) Accessory uses located on the
same premises as permitted uses, such as private garages and the use of land for domestic
agricultural purposes defined in Section 3-4-1, (Definitions).
The reader is referred to the City of McCall Zoning Ordinance for a specific breakdown
of all the uses possible in this district. However, items within the Ordinance of particular
interest to this analysis are discussed following.
REAL ESTATE CONSULTING GROUP, INC. • 18
GOLF COURSE EXCHANGE PARCELS
In the "B" Zone, the minimum average lot area shall be 10,000 square feet; no lot shall be
less than 7,500 square feet. Minimum lot width shall not be less than 60 feet; except a flag
lot, which shall not be less than 20 feet wide at the pole section of the lot. The average
length of any lot shall not be greater than three times the average width. Permitted density
shall not exceed eight (8) dwelling units per acre. Additionally, no building will exceed 35
feet in height. On-site parking areas and setbacks will conform to the space requirements and
the standards set forth by the Ordinance.
Finally, development of the parcels to their respective Highest and Best Use potentials
will be governed by these legal limitations, as discussed in this section.
REAL ESTATE CONSULTING GROUP, INC. • 19
GOLF COURSE EXCHANGE PARCELS
THE APPRAISAL PROCESS
Real property appraisal is the systematic acquisition, classification, analysis and
presentation of data toward the goal of arriving at a qualified estimate of the value of a
subject property. The first step is defining the appraisal problem, e.g., identifying the real
estate, the effective date of the value estimate, the property rights being appraised, and the
type of value sought. Once this has been accomplished, the appraiser researches and
analyzes the factors that affect the market value of the subject property. Among other
considerations, these include Area and Neighborhood Analyses, Site and Improvement
Analysis, and Highest and Best Use Analysis. With the exception of the Highest and Best
Use analysis of each site, these factors have been the focus of the report up to this point.
In the remaining sections of the report, I will set forth my opinion of market value for
each cottage site discussed in this report. Typically, valuation is based on the application of
any or all of the three main approaches to estimating a property's value.
The three basic approaches normally used are known as the Cost Approach, Income
Capitalization Approach, and the Sales Comparison or Market Data Approach. All are
market-oriented in the sense that critical data is extracted from the market; however, the
rationale for each approach is distinct. These three approaches provide data from the market
through different sources when all are available, as explained below.
The Cost Approach involves the valuation of the site by comparing it to other sites in the
area that have sold in the recent past, and, if required, making adjustments for differences.
To the indicated site value is added the estimated cost to Reproduce or Replace the
improvements less any loss of value (depreciation) that may have occurred, if the
improvements are existing, and/or considering a loss in value due to External (economic)
factors whether the improvements are existing or proposed.
The Income Approach is a process of estimating potential market income generation
abilities of a property and developing the Net Income into an indication of value. This is
accomplished by analyzing current market rental activity (or the subject leases, if at market)
and processing the Gross Income to a Net Income position. Next, analysis of the relationship
of Net Income from similar properties to their selling prices, or prudent investor criteria, in
the market are investigated to establish an appropriate Capitalization Rate. (The relationship
between Net Income and selling price is called a Capitalization Rate.) The Net Income
REAL ESTATE CONSULTING GROUP, INC. • 20
GOLF COURSE EXCHANGE PARCELS
attributable to the property appraised is divided by the Capitalization Rate, or processed by a
Discounted Cash Flow analysis, to give an indication of value.
The Market Data Approach (or the Direct Sales Comparison Approach) involves a
comparison of the subject property with properties of a similar use, design, and utility that
have sold in the recent past. Adjustments, if required, are made to the comparable for
differences to indicate a value of the subject property.
Normally, these three approaches will each develop a slightly different indication of
value. A final value estimate is derived by carefully weighing the various facts considered in
each approach and correlating the value indications.
If any of the three approaches were determined to be inapplicable to the property under
appraisement, an explanation for the reasoning of such non -applicability would be included
preceding that portion of the report. Since the required valuation of each of the subject
parcels' is directed solely to the land, only the Direct Sales Comparison Approach is required.
SCOPE OF THE ASSIGNMENT
The analysis of the subject parcels involved the following:
•An in depth physical inspection of each parcel was made, including the
determination of size and dimensions of each parcel, each parcel's locational
attributes within the marketplace and proximity to demand generators, surrounding
neighborhood characteristics, access and exposure, governmental influences,
easements, as well as photographs of each parcel.
•Definition and evaluation of market area characteristics, including interviews with
representatives of the following organizations:
Valley County Assessors Office
Valley County Planning and Zoning Office
City of McCall Planning and Zoning Office
Various Area Realtors, Lands Specialists, and Appraisers
•After collecting the above data, a conclusion of each parcel's Highest and Best Use
was estimated. This analysis included the potential market positioning of each parcel
with demand characteristics in the marketplace.
REAL ESTATE CONSULTING GROUP, INC. • 21
GOLF COURSE EXCHANGE PARCELS
" T h e a n a l y s e s o f t h e s u b j e c t p a r c e l s a r e r e a s o n a b l y s t r a i g h t f o r w a r d s o t h a t o n l y t h e
M a r k e t D a t a A p p r o a c h t o v a l u e w a s u t i l i z e d i n d e v e l o p i n g a n o p i n i o n o f v a l u e f o r
e a c h p a r c e l i n t h e s e c t i o n s t o f o l l o w . H o w e v e r , w h e r e a p p l i c a b l e , a s i m p l i f i e d
s u b d i v i s i o n a n a l y s e s w a s u t i l i z e d t o t e s t t h e v a l u e s e s t i m a t e d . T h e m a r k e t
i n v e s t i g a t i o n s h a v e i n c l u d e d d i s c u s s i o n s w i t h G r a n t o r s / G r a n t e e s , r e a l e s t a t e a g e n t s ,
a p p r a i s e r s , a n d o t h e r k n o w l e d g e a b l e s o u r c e s i n t h e m a r k e t p l a c e .
E S T I M A T I O N O F S I T E V A L U E
T h e b a s i c p r i n c i p l e s o f s i t e v a l u a t i o n a r e t h e s a m e i n a n y t y p e o f p r o p e r t y a p p r a i s a l . I n
a p p l y i n g t h e s e p r i n c i p l e s , t h e t a s k i s t o m a k e s u r e o f t h e i r a p p l i c a b i l i t y t o t h e p r o p e r t y
a p p r a i s e d . I t i s n e c e s s a r y i n c e r t a i n t y p e s o f a p p r a i s a l s t o s e p a r a t e t h e s i t e v a l u e f r o m t h e
i m p r o v e m e n t s f o r r e a s o n s s u c h a s : t a x d e p r e c i a t i o n p u r p o s e s , p r o p e r t y t a x a s s e s s m e n t s ,
n e c e s s a r y a p p l i c a t i o n s o f I n c o m e A p p r o a c h t e c h n i q u e s , u s e i n c o n d e m n a t i o n t e s t i m o n y ,
e s t i m a t i n g b u i l d i n g v a l u e o n l y f r o m t h e m a r k e t r e m a i n d e r v a l u e w h e r e b u i l d i n g s a r e
d e s t r o y e d b y f i r e , m o r t g a g e l o a n r e q u i r e m e n t s , e t c . T h e l a n d v a l u e w i l l b e e s t i m a t e d b a s e d
u p o n i t s H i g h e s t a n d B e s t U s e a s v a c a n t a n d a v a i l a b l e f o r d e v e l o p m e n t .
T h e r e a r e b a s i c a l l y f i v e d i f f e r e n t m e t h o d s o f e s t i m a t i n g s i t e v a l u e r e c o g n i z e d b y
p r o f e s s i o n a l a p p r a i s a l o r g a n i z a t i o n s . O f t h e s e , t h e S a l e s C o m p a r i s o n o r M a r k e t D a t a
A p p r o a c h i s c o n s i d e r e d m o r e a p p r o p r i a t e f o r t h e s u b j e c t p a r c e l s .
S A L E S C O M P A R I S O N A P P R O A C H
I n t h i s a p p r o a c h , s a l e s o f c o m p a r a b l e s i t e s i n t h e a r e a a r e i n v e s t i g a t e d , a n a l y z e d ,
c o m p a r e d a n d a d j u s t e d t o d e r i v e a n i n d i c a t i o n o f v a l u e f o r t h e s u b j e c t s i t e s ' b a s e d o n t h e
l o c a l a c c e p t e d u n i t o f c o m p a r i s o n . I n t h i s c a s e , t h e u n i t s o f c o m p a r i s o n a r e t h e p r i c e p e r
f r o n t f o o t , p r i c e p e r s q u a r e f o o t , a n d a p r i c e p e r l o t b a s i s o f a n a l y s i s . T h e r e a r e n u m e r o u s
e l e m e n t s o f c o m p a r i s o n w h i c h i n f l u e n c e v a l u e , t h e m o s t i m p o r t a n t b e i n g :
1 . F i n a n c i n g t e r m s .
2 . C o n d i t i o n s o f t h e t r a n s a c t i o n .
3 . C h a n g e s i n m a r k e t c o n d i t i o n s ( t i m e ) .
4 . P h y s i c a l c h a r a c t e r i s t i c s i n c l u d i n g z o n i n g , l o c a t i o n , a c c e s s i b i l i t y ,
s i z e , s h a p e , u t i l i t y a v a i l a b i l i t y , e t c .
R E A L E S T A T E C O N S U L T I N G G R O U P , I N C . " 2 2
G O L F C O U R S E E X C H A N G E P A R C E L S
On the pages that follow is a Summary of the Comparable Land Sales utilized in the
analyses, along with a discussion of each of the sales presented. The individual analysis and
conclusion of value for each of the subject parcels will follow this section. Each parcel is set
forth in it's own tabulated section which includes a discussion of the parcel's characteristics,
photographs of the parcel, discussion of the Highest and Best Use, the valuation analysis, and
the final estimate of value.
Information sheets on the individual land sales may be found in the Addenda of this
report.
REAL ESTATE CONSULTING GROUP, INC. • 23
GOLF COURSE EXCHANGE PARCELS
18
HNEWn
RIVING
RANGE
"NEW"
CLUB
HOUSE
CONDO AREA
MOOLEY
AVfNI/E
TIMBERL OS T VI SUBDIVISION
0 55 50 100 ,30 IOD
Comparable Land Sales
LOCATION
1. NEC Wooley &
Divot Lane
2. East side of
Divot Lane
3. East side of
Divot Lane
4. West side of
Eagle drive
5. West side of
Eagle Drive
6. West side of
Eagle Drive
7. West side of
Eagle Drive
8. West side of
Eagle Drive
9. East side of
Eagle Drive
SUMMARY OF COMPARABLE LOT SALES
SALES
PRICE
$40,000
$39,900 9-10-90 Terms
$39,900 6-4-90 Cash
$36,000 (ea) 8-9-90 Cash
$39,000 2-2-91 Cash
$39,900 12-17-90 Cash
SALE
DATE TERMS PRICE / SF
GOLF COURSE LOTS
9-1-90 Terms $2.80
$42,900
$44,900
$41,500
11-23-90 Cash
7-11-90 Terms
9-30-90 Terms
$3.80
$3.98
$3.16
$3.84
$3.72
$4.90
$3.72
$2.54
SIZE
14,288 SF
10,498 SF
10,019 SF
22,278 SF (total)
10,149 SF
10,716 SF
8,756 SF
12,066 SF
16,335 SF
TIME ADJUSTED
PRICE / SF
$3.02/SF
$4.09/SF
$4.42/SF
$3.43/SF
$3.96/SF
$3.93/SF
$5.15/SF
$4.11/SF
$2.74/SF
REAL ESTATE CONSULTING GROUP, INC.
GOLF COURSE EXCHANGE PARCELS • FILE # •91-248
"NEW"
j)
11
'RIVING
RANGE
18
L A N
"NEW"
CLUB
HOUSE
8
(?3
CONDO
AREA
4010.
,w/r
t3S /r
".3,3
GA
vis
8
•x,
f
\-
i7
4
N,530
00/
L'
a.s„
011.1
.3
..4N, 1(i
8
,3 n
00
111 1.104
WOOLEY AVENUE
TIMBERLOST VI SUBDIVISION
0 IS JO 100 00 ZOO
Comparable Land Sales
I SUMMARY OF COMPARABLE LOT SALES 1
SALES SALE TIME ADJUSTED
LOCATION PRICE DATE TERMS PRICE / SF SIZE PRICE / SF
GOLF COURSE LOTS
10. East side of $39,900 10-6-90 Cash $3.65 10,936 SF $3.92/SF
Eagle Drive
11. East side of $39,900 5-21-91 Terms $3.68 10,846 SF $4.12/SF
Eagle Drive
12. East side of $44,900 9-29-90 Cash $2.55 17,598 SF $2.75/SF
Eagle Drive
13. NWC Wooley $44,900 7-24-90 Terms $2.37 18,949 SF $2.61/SF
& Par Lane
14. West side of $39,900 9-10-90 Terms $4.22 9,453 SF • $4.58/SF
Par Lane
15. NWC Wooley $44,900 6-1-90 Cash $3.94 10,150 SF $4.41/SF
& Par Lane
16. West side of $40,900 7-14-90 Cash $4.15 9,860 SF $4.59/SF
Paz Lane
17. West side of $42,900 7-14-90 Terms $3.42 12,545 SF $3.78/SF
Birdie Blvd.
REAL ESTATE CONSULTING GROUP, INC.
GOLF COURSE EXCHANGE PARCELS • FILE # .91-248
I1 II "NEW"
RANGE
r..
CAN(
1
i
rc
CONDO
ARCA
NI 14
.5414
S \4S
pis
/3,
AV eV
V4JJ
,3.547
'7.347
54,5
()
.0.45.
.5440
94
Z.
0 54"
/CHO
01
# / 0; FAIRWAY
/ •4,H
8
,O /
'•
J4H j
1 50
/
IN5J0 , (I/
I� ,4' ��
(
4.035
3
WOOL Cr AVENUE
t
TIMBERL OST VI SUBDIVISION
0 55 50 000 730 300
Comparable Land Sales
1
SUMMARY OF COMPARABLE LOT SALES
SALES SALE TIME ADJUSTED
# LOCATION PRICE DATE TERMS PRICE / SF SIZE PRICE / SF
GOLF COURSE LOTS
18. West side of $26,500 7-25-90 Cash $2.17 12,197 SF $2.39/SF
Par Lane
19. East side of $27,900 11-90 Cash $2.30 12,153 SF $2.44/SF
Par Lane
20. East side of $11,000 3-89 Cash $0.95 11,550 SF
Fairway Dr. $25,000 3-90 $2.17 $2.47/SF
21. South side of $33,000 8-17-89 Cash $1.93 17,096 SF
Fairway Dr. $41,500 8-14-90 $2.43 $2.66/SF
22. North side of $32,500 6-90 Terms $3.48 9,344 SF $3.92/SF
Fairway Dr.
REAL ESTATE CONSULTING GROUP, INC.
GOLF COURSE EXCHANGE PARCELS • FILE # •91-248
Public
Bench
4S is,
Davis
Beach
(Public.
Boat
Ramp
Boa
Ra
POINT OF
ROCKS
PAYETTE
LAKE
(East Arm)
EJ
/2
Ponderosa
State
Park
KADOUSNT(NE
t NMD
PILGRIM COVE
/LYNN
LTNMILNNY
EVERGREEN
tp° Trm ww r.av ,ow
FpirpOE
Pork
AWO vc
Course
Mil/
Par
Boat
- Ra
q,
11
I .NE ..—
LII[
LEK NOED �•
--J
CINCLC
L_
Art Rober
City Por
:aJ
2..-
STREET "'
Ji
LITTLE
11
PAYETTE
q9 rT, I
*, 8
.� WASHINGTCd,i 5. , I—
•••-•
a F T--- , waSH.
Comparable Land Sales
1
# LOCATION
30. GREENBRIAR
7th Tee Box
31. ASPEN VILLAGE
13TH FAIRWAY
32. CANDLEWOOD
No direct golf
course frontage
SUMMARY OF COMPARABLE LAND SALES
SALES SALE
PRICE DATE TERMS PRICE / UNIT SIZE
COMPARABLE CONDOMINIUM LAND SALES
$127,500 4-90 Cash $14,062 34,500 SF
$531,000 *
$156,000
* Total aquisition cost for seven parcels
2-90 Cash
10-89 Terms
$5,625 to
$18,000
$6,000
Varies
96,703 SF
TIME ADJUSTED
PRICE / UNIT
$15,890
$$6,000 to
$18,000
$7,140
REAL ESTATE CONSULTING GROUP, INC.
GOLF COURSE EXCHANGE PARCELS • FILE # •91-248
DISCUSSION OF COMPARABLE SALES
In arriving at a conclusion of value for the various parcels under appraisement, I have
analyzed comparable land/lot sales offering similar amenities to that of the subject parcels.
Numerous other sales have also been considered, along with the sales presented, in arriving at
an opinion of value. However, the presented sales were believed to be the most recent and
best available for comparison and analysis in formulating an opinion of the market value of
each of the subject parcels.
While purchasers typically buy lots on a lot value basis, rather than on a square foot
basis, there also appears to be good trending established from the golf course lot sales
analyzed, suggesting square foot values are also reliable units of comparison. A linear
analysis based of the square foot prices established from the sales, depicts a straight line with
minor deviation and few aberrations. This will be discussed further in the correlation of the
data to follow.
Following is a brief discussion of each of the presented sales prior to formulating an
opinion of value for each of the subject parcels. More detailed information concerning each
sale may be found by referring to the addenda, where individual data sheets for each
comparable are presented.
GOLF COURSE LOT SALES
COMPARABLE SALE # 1
Comparable Sale # 1 is a golf course lot which is situated on the tee box of the eleventh
hole. The lot is below grade with Wooley Way and Divot Lane, and will require
development of an access road to Divot Lane from the lot.
This lot sold on September 9, 1990, for $40,000 on terms which were considered
equivalent to cash. This particular lot is larger than the average lot within the Timberlost VI
Subdivision and it has poor access to a developed roadway. Other lots listed for sale with
similar site characteristics adjoining this lot to the north along the eleventh fairway range in
price from $41,900 to $44,900; however, the upper end of the range is represented by lots
with superior site characteristics.
The square foot unit price indicated by this sale is $2.80, which is at the lower end of the
depicted price range of the square foot values from lot sales, but the sale correlates well with
REAL ESTATE CONSULTING GROUP, INC. • 28
GOLF COURSE EXCHANGE PARCELS
the linear relationship established by the other sales analyzed within the subdivision, based
on its larger size. Therefore, considering the site characteristics of this sale, it is believed to
be a good comparison for similar characteristics evidenced by the subject parcels.
COMPARABLE SALE # 2
Comparable Sale # 2 is a golf course lot situated on the fairway of the eleventh hole. The
lot is slightly below grade with Divot Lane, but will not require the development of an access
road to Divot Lane from the lot, similar to what was required for Comparable Sale # 1 above.
This lot sold on September 10, 1990, for $39,900 on terms which were considered
equivalent to cash. The lot size is considered typical of the average lot within the Timberlost
VI Subdivision. Other lots listed for sale with similar site characteristics adjoining this lot to
the north and south along the eleventh fairway range in price from $44,900 to $47,900;
however, the upper end of the range is represented by lots with superior proximity to the
eleventh green. The lower end of the listed price range represents an approximate price
increase of 12.5% since the sale of this comparable.
The square foot unit price indicated by this sale is $3.80, which is at the approximate
mid -point of the depicted price range of the square foot values from lot sales and correlates
well with the linear relationship established by the other sales analyzed based on its size.
COMPARABLE SALE # 3
Comparable Sale # 3 is a golf course lot also situated on the fairway of the eleventh hole.
This lot is slightly below grade with Divot Lane and slopes down toward the golf course.
The lot sold on June 4, 1990, for $39,900 and was a cash transaction. The lot size is
considered typical of the average lot within the Timberlost VI Subdivision. Other lots listed
for sale with similar site characteristics adjoining this lot to the north and south along the
eleventh fairway range in price from $44,900 to $47,900, with the upper end of the range
represented by lots on either side of this sale which have similar proximity to the eleventh
green. Assuming sales at the $47,900 level, the listed prices of these adjoining lots represent
an approximate 20% price increase since the sale of this comparable.
The square foot unit price indicated by this sale is $3.98 which is at the approximate mid-
point of the depicted price range of the square foot values from lot sales, and correlates well
with the linear relationship established by the other sales analyzed based on its size.
REAL ESTATE CONSULTING GROUP, INC. • 29
GOLF COURSE EXCHANGE PARCELS
COMPARABLE SALE # 4
Comparable Sale # 4 is the sale of two golf course lots to a single purchaser which are
located on the opposite side of the fairway of the eleventh hole from Sales #'s 1, 2, and 3
discussed previously. The two lots are near grade with Eagle Drive, but are slightly below
grade with the golf course fairway. The buyer purchased both lots for the purpose of
building a single residence.
These lots sold on August 9, 1990, for $36,000 each and the terms of sale were reportedly
cash. The lot size of each lot is considered within the range of the typical size of the average
lot within the Timberlost VI Subdivision. Other lots listed for sale with similar site
characteristics adjoining these lots to the north and south along the eleventh fairway are listed
for sale at the $42,900 level. Assuming a sale at this level, the listed prices represent a 19%
price increase since the sale of these lots. Based on this it would appear as if some discount
was achieved by purchasing two lots simultaneously.
The square foot unit price indicated by this sale is $3.16 which is the lower mid -point of
the depicted price range of the square foot values from lot sales, and thus, correlates slightly
below the linear relationship established by the other sales analyzed based on their size.
COMPARABLE SALE # 5
Comparable Sale # 5 is a golf course lot also situated on the fairway of the eleventh hole.
The sale parcel is level and near grade with Eagle Drive. The lot is nicely wooded and offers
good privacy and appeal.
This lot sold on February 2, 1991, for $39,000 and was a cash transaction. The lot size is
considered typical of the average lot within the Timberlost VI Subdivision. Other lots listed
for sale with similar site characteristics adjoining this lot to the north and south along the
eleventh fairway are listed for sale at the $42,900 level. Assuming sales at the $42,900 level,
the listed prices represent a 10% price increase since the sale of this comparable. However,
this sale only sold four months ago.
The square foot unit price indicated by this sale is $3.84 which is at the approximate mid-
point of the depicted price range of the square foot values from lot sales, and correlates well
with the linear relationship established by the other sales analyzed based on its size.
REAL ESTATE CONSULTING GROUP, INC. • 30
GOLF COURSE EXCHANGE PARCELS
COMPARABLE SALE # 6
Comparable Sale # 6 is a golf course lot located next to Sale # 5 above, and is also
situated on the fairway of the eleventh hole. The sale parcel is level and near grade with
Eagle Drive. The lot is nicely wooded and offers good privacy and appeal.
This lot sold on December 17, 1990, for $39,900 and was a cash transaction. The lot size
is considered typical of the average lot within the Timberlost VI Subdivision. Other lots
listed for sale with similar site characteristics adjoining this lot to the north and south along
the eleventh fairway are listed for sale at the $42,900 level. Assuming sales at the $42,900
level, the listed prices represent a 7.5% price increase since the sale of this comparable in
December. However, this sale only sold five months ago and thus indicates an annualized
rate of 18%.
The square foot unit price indicated by this sale is $3.72, which is at the approximate
mid -point of the depicted price range of the square foot values from lot sales, thus it also
correlates well with the linear relationship established by the other sales analyzed based on its
size.
COMPARABLE SALE # 7
Comparable Sale # 7 is a golf course lot located north of Sale # 6 above, and is also
situated on the fairway of the eleventh hole. The sale parcel is level and near grade with
Eagle Drive. The lot is nicely wooded and offers good privacy and appeal.
This lot sold on November 23, 1990, for $42,900 and was a cash transaction. This lot's
size is considered to be smaller than the average lot within the Timberlost VI Subdivision,
yet still offers Similar amenities and appeal as compared with the other lots within the
subdivision. Another lot of similar size is listed for sale at the $44,900 level, and has similar
site characteristics as that of the sale parcel. The listed parcel adjoins the sale parcel to the
north along the eleventh fairway; however, this lot has a slightly superior view of the
eleventh green as compared to the sale parcel. Assuming a sale at the $44,900 level, the
listed price represents a 5% price increase since the sale of this comparable. However, the
sale property only sold six months ago, indicating an annualized rate of 10%.
The square foot unit price indicated by this sale is $4.90, which is at the extreme upper
end of the depicted price range of the square foot values from lot sales, and thus correlates
REAL ESTATE CONSULTING GROUP, INC. • 31
GOLF COURSE EXCHANGE PARCELS
outside (above) the linear relationship established by the other sales analyzed based on its
size.
COMPARABLE SALE # 8
Comparable Sale # 8 is a golf course lot located adjacent to the green on the eleventh
hole. The sale parcel is level and near grade with Eagle Drive. The lot is nicely wooded and
offers good privacy and appeal.
This lot sold on July 11, 1990, for $44,900 on terms considered to be equivalent to cash.
The lot size is larger than the average lot within the Timberlost VI Subdivision and the lot
has frontage on the eleventh green. There are no other lots listed for sale of similar size and
having similar locational characteristics as the that of the sale parcel. However, it is of
interest to note that Sale # 9, discussed below, is of similar size to this parcel, but does not
have frontage on a golf green. These two sales ( Sale #'s 8 and 9) indicate an increase in the
square foot lot price of approximately 45% for lots with frontage on a golf green.
The square foot unit price indicated by this sale is $3.72, which is at the approximate
mid -point of the depicted price range of the square foot values from lot sales, but considering
its larger size, the sale correlates outside (above) the linear relationship established by the
other sales analyzed.
COMPARABLE SALE # 9
Comparable Sale # 9 is a golf course lot located on the tenth fairway, on the opposite side
of Eagle Drive from Sale #8, discussed above. The sale parcel is level and near grade with
Eagle Drive. The lot is nicely wooded and offers good privacy and appeal.
This lot sold on September 3, 1990, for $41,500 on terms considered to be equivalent to
cash. The lot size of the sale parcel is larger than the average lot within the Timberlost VI
Subdivision. The lot has frontage on the tenth fairway and is located adjacent to the new
club house and parking area. Another lot (Lot # 41) which is of similar size and currently
listed for sale for $44,900 is also located on the tenth fairway. This price difference
represents an increase of approximately 8% since the date when the sale parcel was
purchased, or an annualized rate of 12%.
REAL ESTATE CONSULTING GROUP, INC. • 32
GOLF COURSE EXCHANGE PARCELS
The square foot unit price indicated by this sale is $2.54, which is at the lower end of the
depicted price range of the square foot values from lot sales, but considering its larger size,
the sale correlates well with the linear relationship established by the other sales analyzed.
COMPARABLE SALE # 10
Comparable Sale # 10 is a golf course lot located on the fairway of the tenth hole. The
sale parcel is sloping and while near street grade with Eagle Drive, slopes down from the
fairway of the tenth hole. The lot is marginally wooded and offers average privacy and
appeal.
This lot sold on October 6, 1990, for $39,900 and was a cash transaction. The lot size is
considered typical of the average lot within the Timberlost VI Subdivision. Other lots listed
for sale with similar site characteristics adjoining this lot to the north along the tenth fairway
are listed for sale at the $44,900 level. Assuming sales at this level, the listed prices represent
a 12.5% price increase since the sale of this comparable.
The square foot unit price indicated by this sale is $3.65, which is at the approximate
mid -point of the depicted price range of the square foot values from lot sales, and correlates
well with the linear relationship established by the other sales analyzed based on its size.
COMPARABLE SALE # 11
Comparable Sale # 11 is a golf course lot also located on the fairway of the tenth hole.
The sale parcel is sloping, and while near street grade with Eagle Drive, slopes down from
the fairway of the tenth hole. The lot is marginally wooded and offers average privacy and
appeal.
This lot sold on May 21, 1991, for $39,900 and was on terms considered to be cash
equivalent. The lot size is considered typical of the average lot within the Timberlost VI
Subdivision. Other lots listed for sale adjoining this lot to the north along the tenth fairway
are listed for sale at the $44,900 level; however, these lots have superior topographical
features, suggesting a discount of approximately 10% to 12% for a sloping lot.
The square foot unit price indicated by this sale is $3.68, which is at the approximate
mid -point of the depicted price range of the square foot values from lot sales, and correlates
well with the linear relationship established by the other sales analyzed based on its size.
REAL ESTATE CONSULTING GROUP, INC. • 33
GOLF COURSE EXCHANGE PARCELS
COMPARABLE SALE # 12
Comparable Sale # 12 is a golf course lot located on east side of Eagle Drive on the
fairway of the tenth hole and offers a partial or distant view of the tenth green, depending on
development of the site. The sale parcel slopes upward to the fairway from grade with Eagle
Drive and will require some development considerations in its development to its Highest
and Best Use. The lot is wooded but is triangular in shape, thus offering less utility
comparatively.
This lot sold on September 29, 1990, for $44,900 based on a cash sale. The lot size of the
sale parcel is larger than the average lot within the Timberlost VI Subdivision. The lot has
frontage on the tenth fairway but also offers a view of the tenth green. Another lot (Lot # 41)
which is of similar size and currently listed for sale for $44,900, is also located on the tenth
fairway, but it does not have a view of a golf green. Considering the sale parcels reduced
utility and sloping topography, the listed price of a comparably sized lot available for sale
(considering its escalated price level) suggests that the sale price of this lot reflects its
reduced utility and sloping topography.
The square foot unit price indicated by this sale is $2.55, which is at the lower end of the
depicted price range of the square foot values from lot sales, but again, considering its larger
size, reduced utility and sloping topography, the sale correlates well with the linear
relationship established by the other sales analyzed.
COMPARABLE SALE # 13
Comparable Sale # 13 is a golf course lot located on west side of Par Lane overlooking
the tenth green. The sale parcel slopes downward from grade with Par Lane and is actually
below grade with the fairway. Some fill may be require in order to fully utilize the lot to its
maximum potential. The lot is marginally wooded and is irregular in shape, thus it offers less
utility as compared with other more rectangular golf course lots.
This lot sold on July 24, 1990, for $44,900 on terms considered to be equivalent to cash.
The lot size of this parcel is larger than the average lot within the Timberlost VI Subdivision.
The lot is currently available for sale for $62,500, which represents an increase of 28% since
it originally sold; however, there have been no offers to purchase at this level as of the date of
appraisal.
REAL ESTATE CONSULTING GROUP, INC. • 34
GOLF COURSE EXCHANGE PARCELS
The square foot unit price indicated by this sale is $2.37, which is at the lower end of the
depicted price range of the square foot values from lot sales, but again, considering its larger
size, reduced utility and topography which is partially below grade, the sale correlates well
with the linear relationship established by the other sales analyzed.
COMPARABLE SALE # 14
Comparable Sale # 14 is a golf course lot located on west side of Par Lane overlooking
the tenth green. The sale parcel is level to sloping from near road grade with Par Lane, and
offers an excellent view of the tenth green.
This lot sold on August 10, 1990, for $39,900 on terms considered to be -equivalent to
cash. The lot size of this parcel is typical of the average lot within the Timberlost VI
Subdivision.. Comparing this lot with with the adjoining lot to the south (Lot # 33), indicates
that larger lots (lots that are twice as large) sell for approximately 40% less. Of course, some
consideration must be given to the fact that Lot # 33 is below grade with the fairway and may
reasonably require some fill.
The square foot unit price indicated by this sale is $4.22, which is at the approximate
mid -point of the depicted price range of the square foot values from lot sales, and correlates
well with the linear relationship established by the other sales analyzed based on its size.
COMPARABLE SALE # 15
Comparable Sale # 15 is a golf course lot located on west side of Par Lane overlooking
the fairway of the tenth hole. The sale parcel is sloping and is above road grade with Par
Lane.
This lot sold on June 1, 1990, for $40,000 based on a cash sale. The lot size of this parcel
is typical of the average lot within the Timberlost VI Subdivision. Other lots listed for sale
with similar site characteristics adjoining this lot to the north along the tenth fairway are
listed for sale at the $44,900 level. Assuming sales at the $44,900 level, the listed prices
represent a 12.25% price increase since the sale date of this comparable.
The square foot unit price indicated by this sale is $3.94, which is at the approximate
mid -point of the depicted price range of the square foot values from lot sales, and correlates
well with the linear relationship established by the other sales analyzed based on its size.
REAL ESTATE CONSULTING GROUP, INC. • 35
GOLF COURSE EXCHANGE PARCELS
COMPARABLE SALE # 16
Comparable Sale # 16 is a golf course lot located on west side of Par Lane overlooking
the fairway of the tenth hole. The sale parcel is sloping and is above road grade with Par
Lane.
This lot sold on July 14, 1990, for $40,900 based on a cash sale. The lot size of this
parcel is typical of the average lot within the Timberlost VI Subdivision. Other lots listed for
sale with similar site characteristics adjoining this lot to the north along the tenth fairway are
listed for sale at the $44,900 level. Assuming sales at the $44,900 level, the listed prices
from these listed lots represent about a 10% price increase since the sale date of this
comparable.
The square foot unit price indicated by this sale is $4.15, which is at the approximate
mid -point of the depicted price range of the square foot values from lot sales, and correlates
well with the linear relationship established by the other sales analyzed based on its size.
COMPARABLE SALE # 17
Comparable Sale # 17 is a golf course lot located on west side of Birdie Boulevard
fronting the fairway of the tenth hole. The sale parcel is level and near grade with Birdie
Boulevard. The site is marginally wooded and offers average appeal.
This lot sold on July 14, 1990, for $42,900 based on terms considered equivalent to cash.
The lot size of this parcel is larger than the average lot within the Timberlost VI Subdivision.
Other lots listed for sale with similar site characteristics and size that are adjoining this lot to
the south along the tenth fairway are listed for sale at the $44,900 level. Assuming sales at
this level, the listed prices represent about a 5% price increase since the sale date of this
comparable.
The square foot unit price indicated by this sale is $3.42, which is at the lower mid -point
of the depicted price range of the square foot values from lot sales, and thus correlates well
with the linear relationship established by the other sales analyzed based on its size.
COMPARABLE SALE #'S 18 AND 19
Comparable Sale #'s 18 and 19 are located off the golf course, on the east side of Par
Lane, opposite lots which have golf course frontage. The sale parcels are level and near
REAL ESTATE CONSULTING GROUP, INC. • 36
GOLF COURSE EXCHANGE PARCELS
grade with Par Lane. Both sites are marginally wooded and offer only fair appeal as
compared with lots fronting the golf course.
Sale # 18 sold on July 25, 1990, for $26,500 based on a cash sale. Sale 19 sold in
November of 1990 for $27,900, and the sale is pending as of the date of this appraisal. The
lot sizes of these parcels are larger than the average lot within the Timberlost VI Subdivision.
Other lots listed for sale with similar site characteristics and size that are adjoining these lots
are listed for sale in the range of $27,900 to $29,900. Assuming sales at the $27,900 level,
the listed prices represent about a 5% price increase since the sale date of Comparable # 18.
Comparing the square foot price indicators from these two lots with the square foot prices
developed from golf course lots of similar size, indicates about a 60% increase for golf
course fronting lots.
The square foot unit price indicated by Sale # 18 is $2.17, while Sale #19 indicates $2.30
per square foot. As indicated, these sales are below the depicted price range of square foot
values from lot sales which front on the golf course, but are substantially above the square
foot prices of lots located away from the golf course which do not have any golf course
influence.
COMPARABLE SALE # 20
Comparable Sale # 20 is a golf course lot located on east side of Fairway Drive fronting
the fairway of the fourteenth hole. This golf course lot is located within Timberlot V and is
the sale of a golf course fronting lot in the secondary market. The sale parcel is level and
near grade with Fairway Drive. The site is sparsely wooded and offers average appeal.
This lot sold in March of 1989 for $11,000, and then sold again in March of 1990 for
$25,000, representing an increase over this twelve month period of 127%. This increase is in
part due to an appreciating market over this time period, but also was prior to the sales within
Timberlost VI, which helped to boost prices for golf course lots above levels previously
achieved prior to this time.
The lot size of this parcel is larger than the average lot within the Timberlost VI
Subdivision. The square foot unit price indicated by the most recent sale is $2.17, which is
well below the depicted price range of the square foot values from lot sales occurring in
Timberlost VI, and therefore does not correlate with the linear relationship established by
these other sales based on its size.
REAL ESTATE CONSULTING GROUP, INC. • 37
GOLF COURSE EXCHANGE PARCELS
COMPARABLE SALE # 21
Comparable Sale # 21 is a golf course lot located on south side of Fairway Drive fronting
the fairway of the ninth hole. This golf course lot is located within Timberlot V and is the
sale of a golf course lot in the secondary market. The sale parcel is sloping away from
Fairway Drive toward the fairway of the ninth hole. The site is heavily wooded and offers
good appeal.
This lot sold on August 17, 1989, for $33,000, and then sold again on August 14, 1990,
for $41,500, representing an increase over this twelve month period of 25.76%. This increase
is in part due to the lot values being achieved for Timberlost VI, but also reflects an
appreciating market over the period of the sale re -sale.
The lot size of this parcel is larger than the average lot within the Timberlost VI
Subdivision; however, the square foot unit price indicated by the most recent sale is $2.43,
which is clearly supported by the depicted price range of the square foot values from lot sales
occurring in Timberlost VI. Based on its size, this sale correlates well with the linear
relationship established by these other sales.
COMPARABLE SALE # 22
Comparable Sale # 22 is a golf course lot located on north side of Fairway Drive fronting
the fairway of the thirteenth hole. This golf course lot is located within Timberlot V
Subdivision and is the sale of a golf course lot in the secondary market. The sale parcel is
level at grade with Fairway Drive, but is above the fairway of the thirteenth hole. The site is
heavily wooded and offers good privacy and appeal.
This lot sold in June of 1990 for $32,500, on terms considered equivalent to cash. The lot
size of this parcel is typical with the average lot within the Timberlost VI Subdivision and the
square foot unit price indicated by this sale is $3.48, which is slightly lower than the depicted
price range of the square foot values from lot sales occurring in Timberlost VI. Thus, based
on its size, this sale correlates below the linear relationship established by these other sales.
REAL ESTATE CONSULTING GROUP, INC. • 38
GOLF COURSE EXCHANGE PARCELS
CONDOMINIUM LAND SALES
COMPARABLE LAND SALE # 30
Comparable Sale # 30 is a condominium land sale and is located with frontage on the tee
box of the seventh hole of the McCall Golf Course adjoining the Greenbriar Condominiums.
The Greenbriar Condominiums are an upper end condominium project and could reasonably
be expected to positively impact the sale price of comparably utilized land adjoining this
project. The site was improved with eight foundations valued at $14,000 by the purchaser of
the site. Therefore, the abstracted value of the land at the time it sold in April of 1990 was
$112,500. However, approvals were all in place and the project was ready to build at the
time of purchase, which may have potentially enhanced the price paid. This sale reflects a
per unit buildable price of approximately $14,000/unit, or a square foot price of $3.26.
The parcel is currently back on the market available for sale for $180,000; however, the
Realtor stated that the seller would likely entertain an offer in the range of $160,000.
COMPARABLE SALE # 31
Comparable Sale # 31 is the February 1990 cash sale of two separate sites located within
the Aspen Village Condominium project. The two sites sold to the same purchaser who has
built condominium units consistent with the style and size of the other units within the
project. The project has amenities including a club house with indoor pool, and three outside
tennis courts.
Site L, within this comparable, is approved for six units and is located on the golf course.
This site sold for $56,000, or $9,333 per unit. Site Q sold for $45,000, and is approved for
eight units, or $5,625 per unit. The two land sales indicate a 66% premium, or superiority for
units which front on the golf course, as opposed to those that do not front the golf course.
As can be seen, this comparable supports the full range of values for non -golf course
parcels, golf course parcels without any proximity to a green, and golf course parcels with
green frontage. The purchaser optioned five other condominium parcels from the seller at
prices ranging from $6,000 per unit to $18,000 unit, with the upper end of the range
representing a parcel with frontage on the thirteenth green of the golf course. As indicated
from the sales data presented, it may be seen that non -golf course parcels sell for about 66%
REAL ESTATE CONSULTING GROUP, INC. • 39
GOLF COURSE EXCHANGE PARCELS
less than parcels with golf course frontage; however, the optioned parcels demonstrate a
premium of about 87.5% for golf course versus non -golf course frontage.
Considering some of the other relationships demonstrated by these optioned parcel's
(Parcels H and J, as compared with Parcel P), indicates a value premium of 125% for parcels
with green frontage as compared with those without any golf course frontage at all; and a
premium ranging from 20% to 93% for golf course frontage as compared with the more
desirable green frontage (Parcels L and N, as compared with Parcel P). However, Parcel L,
which represents the 93% relationship with Parcel P, is further from the green than Parcel N,
but it also sold over one year ago. Even after adjusting this sale upward by 20% for the
passage of time, indicates a value difference of about 60% for the lack of green frontage. As
such, this comparable demonstrates a premium for parcels with green frontage ranging from
20% to 60% above parcels with golf course frontage only, which brackets the 45% indication
developed from the lot sales analyzed within Timberlost VI for the premium of having green
frontage.
COMPARABLE SALE # 32
Comparable Sale # 32 is the September 1989 sale of a medium density zoned site located
on the west side of Davis Street, across the street from the McCall Golf Course. The site
contains 96,703 square feet and sold for $156,000 cash, or $6,000 per unit. Although the
grantor and grantee agreed to joint venture the construction of the condominium units, the
unit price set for the land was considered to be "arms length" and at market levels by the
parties to the transaction. The project is approved for a 26 unit condominium project, as a
result of a PUD allowing for a higher density than otherwise possible.
The square foot price indication from this sale is $1.61, which is lower than the other
condominium sales analyzed, but considering its lack of golf course frontage and its size, the
developed indicator is believed to be a fair indication to be utilized in the analysis of the
subject parcel of similar Highest and Best Use.
From the above discussion and analysis, the following adjustments will be presented for
developing a value indication for the subject parcel's.
REAL ESTATE CONSULTING GROUP, INC. • 40
GOLF COURSE EXCHANGE PARCELS
ANALYSIS OF ADJUSTMENTS
Because of the inherent subjectivity involved in making adjustments, a bracketing technique
will be utilized where possible, in order to eliminate the need for making more adjustments than
are necessary to arrive at a reasonable estimate of value.
FINANCING TERMS
Implicit in the definition of market value is the condition that payment is made in cash or its
equivalent. The equivalent of cash is attained when the seller provides financing that is on
terms generally available in the community at a specified date, and typical for the property in its
locale. _
Approximately half of sales analyzed were transacted on a cash basis. Where the terms of
sale can be verified and are believed to influence the price paid, a cash equivalency is
performed. Of the sales analyzed, all were considered to be transacted on terms equivalent to
cash, and therefore did not require a cash equivalency adjustment.
CONDITIONS OF SALE
When the conditions of a sale are not typical, the sales price is often higher or lower than
that of a normal "arms length" transaction.
Based on my analysis of the comparables and the discussions made previously concerning
each sale, all of the transactions, with the exception of Sale #4, were believed to be normal and
do not require adjustments relative to conditions of sale.
Sale # 4 appeared to reflect a discount for the simultaneous purchase of two lots by the same
purchaser. Based on other data presented, it appeared that a discount of approximately 10% was
achieved by the purchaser of Sale # 4 for the bulk purchase of two lots.
MARKET CONDITIONS (TIME)
A time adjustment is warranted when the market is appreciating, or value is increasing
over the time period when the sales transactions utilized in the analysis were occurring. The
reason for making a time adjustment is so that sales which have taken place in the past may
be viewed on a current and consistent basis with sales which are occurring today. In other
words, older sales may be brought forward, or adjusted upward, in order that they may reflect
REAL ESTATE CONSULTING GROUP, INC. • 41
GOLF COURSE EXCHANGE PARCELS
current values as of a certain date; in this case, the date of appraisal, May 29, 1991. Once a
comparable's sale price has been brought forward to a current date, various differences may
then be more readily discernable, quantified, and compared to the various parcel's under
appraisement for an indication of each parcel's current market value.
The sales analyzed in the course of this and other analyses in the McCall market, develop
appreciation rates from a low of 8%, to a high of well over 100% per year over the various
time periods represented. However, the upper end rate levels indicated are considered to be
unsustainable over any extended time period. In fact, the market may experience some
decline in the future as a result of these abnormal escalations in value. Nonetheless, it is the
appraiser's responsibility to reflect the market over the time period of the sales presented for
analysis. The data presented is believed to fairly represent an accurate portrayal of the
markets upward escalation over the time period of the sale dates of the sales presented in this
analysis.
Differences between dates of sale of the comparables utilized in the analysis and the date of
appraisal have been calculated based on a 365 day year. All sales utilized in the analysis have
been time adjusted to the date of appraisal.
As indicated, the McCall market has recently (1988-89 forward) seen appreciation rates
from sale/re-sales at levels typically above market norms, as evidenced by Sale #'s 20 and 21, as
well as other sale/resales analyzed, together with the price escalations indicated for lots
currently for sale within Timberlost VI. The appreciation rates reflected in the sale/resales
considered are over the same period of time of the comparable sales presented for analysis.
Lake front lot sales, and lots sales influenced by the lake in the McCall market which have been
analyzed on previous assignments, indicate appreciation levels near 25%, further supporting the
upward escalation of values in this market over the last couple of years.
Based on the golf course lot sales analyzed within this analyses, it is my opinion that an
appreciation rate of between 8% and 25% is supportable. However, most of the data analyzed
appeared to center around 12% to 15% per year. In my opinion, a rate of 12% is most applicable
for the golf course lots which have sold over the past 12 months within the Timberlost VI
Subdivision. Therefore, I have estimated a rate to be applied to the lot sales analyzed at the
12% level through the date of appraisal. This rate should be reasonably consistent with the
price level increases seen for the majority of the lots available for sale within the Timberlost VI
Subdivision, since being introduced on the market in mid 1990.
REAL ESTATE CONSULTING GROUP, INC. • 42
GOLF COURSE EXCHANGE PARCELS
PHYSICAL CHARACTERISTICS
(SIZE, TOPOGRAPHY, UTILITIES, GOLF COURSE FRONTAGE, ETC.)
Due to the inherent differences in the physical characteristics between the various parcel's
under appraisement, various comparables have been selected in an attempt to quantify these
differences. The various sales data presented has provided a unique opportunity to abstract
differences between the sales analyzed, with the intent of identifying the values attributable to
differing property characteristics, which may then be abstracted and applied in the analysis of
this data so that consistent value conclusions may be developed for the subject parcel's.
The size adjustment is based on Sale #'s 13 and 14 which both sold in the mid to later part
of 1990. Sale # 13 sold for $2.37 per square foot and contains approximately 18,949 square feet
of land area, while Sale # 14 sold for $4.22 per square foot and contains approximately 9,453
square feet. Sale # 13 is almost exactly twice as big as Sale # 14 and sold for approximately
40% less. Therefore, while a size adjustment is usually less consistent because of the variety of
differences in size between parcels, it would appear that the price of a golf course lot will
decline approximately 40% when the size differential is at least two times as large.
As discussed in the analysis of Sale # 11, sloping topography, which typically increases
development costs of a parcel, would appear to decrease value by approximately 10% to 12%.
This is demonstrated by comparing Lot # 31, which recently sold for $3.68 per square foot, with
the asking prices of other lots along the eighth fairway which do not have sloping topography.
This was further supported by Sale #16, which is located across the fairway from Sale # 11.
Utility extensions which may be required are based on the cost of extending the various
utility to the edge of the lot, or parcel. Such costs vary from $50 to $100 per lineal foot
depending on a variety of factors.
As discussed in the analysis of Sale #'s 8, 9, and 31, a premium exists for golf course lots
facing a golf green as compared with lots fronting the golf course. This premium appears to be
approximately 45%, but may be found to exist in a a range between 20% and 60% depending on
varying distances and proximities to golf course greens. Also, the difference of golf course
frontage to non -golf course frontage, as evidenced by comparing Sale #'s 17 and 18, is about a
60% premium. Sale # 31 supports a premium above this level; however, 60% is believed to be
the most reasonable adjustment developed for this premium from the data analyzed.
REAL ESTATE CONSULTING GROUP, INC. • 43
GOLF COURSE EXCHANGE PARCELS
Following are the specific analyses of each of the parcels under appraisement. Each parcel
has been analyzed separately from this point forward, in order to provide the reader with an
individualized valuation and discussion of the property characteristics which are particularly
relevant to each parcel appraised.
REAL ESTATE CONSULTING GROUP, INC. • 44
GOLF COURSE EXCHANGE PARCELS
COD
v,
y
y
m
c.
1
z
x1
H O
0
LA
.
ton
DO 6)0 roe
N 1/16 10,5°
AVE.— ...,a12%'1�(
-,,L5.38
S 89°49'09"E
sere
�,
od
FA/R WAY
385.92'
cws
N0.
Gw5 ,4
S -B3
Lot 1, Blk. 5, Timberlost .If Aa City of Mc
Book 7, Page 20 of Plats
i
PARCEL A
;, 2.970 AC.
co
o)
co
Li" S 89° 53' Od' E
198.26'
co
Po
c7
O
Clubhouse -
NO°08'41"E
59 N „(
45•00i"`1
3'1
58N
KI
1.i
11
1•
5TN - \,•
Id
\ t
SRUNDASE MTN. RD \I
A.1
144
1
CEDAR KNOLL
,v
CEDAR
ACRES
'+e ■1250103
a Iv
Bat 500
I1 12 c,
60RTN taCN /'>�
SORT RAMP
r -
t e,
PAYETTE LAA
COTTAGE SITE
•TNE SAROEN
1RUNDAGE MTN. R0.
16 15
KOLL0
:CLOW
Y
CADIM'
\ 3,31 TES
ti
112' .. 1
%llll!//IzJ�
eie,..w 29 26
C,ee. 13
0
M %
NA IM ro 0
CC6�2 PANLb EP7
`14231% / 24 ) 4f
I\, 'AC ,GAR ISL , /
lou
6i�N AC e. -1:
2• 30 `
CONOON Ni llSr
NS 6 9.
�
CAMP TA PAW MGA 4
/' ',ALL CR. RD. •
Bay
Manisa. BSean Caw 5.
3.e.
1...
16
•S
90.
(0.e
of 5:.
-1- I.
54.0. 1212
20
: I b.•
SUCKLEE
CAMPGROUND
I6
/42.••
Late
ar
L03100
1600121
13
52
P
11
4x15
7
33 34
Waal East Aeo2 Sub' s • ICA SLICK
er
Noma Cau
. US.
2 Kq5 • &• ///A I% //7/`1 ROCK
@ONOEROSA
STAT PAR '1O" �. Z::///////////1//////
OLE
19th & 6;
SU6
ry1 Rae Yefj L
Lao,. 10 II
aS2R6E
R::.N__. TK._ P�1I MOBIL
MI",(e1`,2A,(P� ESTA
4AK( fVRESi Sub
rpreen
MCI
16
AY
SV
1
6
N
Bast
Cay
sta. S:
ICN R0.
502'
•
21 CAI
v _
29 Y 2
•
RIVER i LA x 1.
R
SNOWN0B1
• 121
TINIER R
sua
27
PEM 3
Jar
LUNe
A1'e1/e
141042 1
E DACE T ACK
W T PLACE SUS
23 / 24 e,
• 11.11 . Fork Al
PAW
12
092
R
OWN 1
POND
CRUI=3P NK
RE3. \\
13 16•
1 LA [! {II EMLAN
:IT'
711 12 i 1 _ 34
0 0 - E 'rsY
l
/410.0,, SOY sob; • . 4
6 '1
WILDE our .1
f
4 •
T -
t•
L1•
7 126 11
V45•7 Lw.>A
' ISN.2 .9:9 J
I -
16 7�II 4,7
7 > ;
I5
56
or
0
I Lake
9Fork
26
fee
56 .
MORE µ
34
N POTTE IAN
:n1j111429Ea +uoNA6olc
• l" a vas •
14. R .436 TON ,
t1/SSub. IIb LANE 12
ParA Ls •E12.
A<r4e2 c K
14
+0• •ear, '• t
Y•
.D06 S ..R0• _
- Late Fort ;
22 ,`311 23
Fb I
.111±..57,_ !LANE
'I 26 �� 27L6 2
1 1 •
J • I iCFEL1Nt LN. PADDY PLAT
c mN1MYERlKO COV[
33.211 33
T y
lI 0 \r
a
�L
SPINK
0
t
LANE
SUS 1-
N. 81231713
AXE
OErc
4
•
6
17
1•
•
2 I1
.11 tOj .. .� L7o•e
-...
S 0.1101 _,/ .) •e.tinsur
wets.. `V'
{ v 3 IS -L lei - 7 K Pea.
;.. i -,r'
w
c4i:
[... + 2r ..f `yr
��- _ NA1
24
21
26
35
AKE PORK •
1 Al2P6IIOUNI I /
104(
'-4
to sat 6 5
9 y 10
16 J% 16
1
10
z Lear,
i
\to t j 2I
1\�
i
O19
Es, 0
30 29
J?.
/
•
6`
EST -rl[
li ..
246-
RANDLE /
III/ILANOS•6 r.
7 3 K
13
OVNC• _,/ 16%- 1 �I • / 16 moi/
LAN ; \\a I � i',.•/16
124 1// ./(0 661
1 19�,///2a '04•/4,4. 2r 22
32
//
v 14
0
2\ 2 Aw.MtM .
OUL DE6'1 4 ,F 23.
II id �1
i
NOLLENDECK
�E
/LW'29
1 %soy -E uyRO.
C1..t
r 0
;, RPE. 4
2
25
t
\
Ina
4,�
S
S7i
29 56
35
4 K
Mo.
PEAK
#L .4c. a
•
at c
IS
v.
as
•/4
N:rt L...
3.214.,.
1.b 16
Orn
24 19 20. B'N)n ��
..f�
�Ciree. 1
Let. /
� ?�'„BVctnorn='
le 26 • t Mts. e
• • l02e "4.
Bou/Gtr S.w,w r
JLMe
• sG/ "L
\14)[Me 34 36
AI/
es, ' ST ANOAR
_-oy�N61W .E
♦ p
9112 2
• IJOS + •1
3
10
,lnr
bud; 11
a .5.,34 I 36
0` 6AS11I LANE /^
11
71' • ELD',ILAII.E
III' 1 ,,
lip* PT. acci 150 11
"IN-Fcn• DONNELLY ' :
V
/MELTON e
REa
56 30 \ 29
/ 1
.•SClosed r
c t/
W36 /.. �( 3, \' �1,-r32�
A
\
w( // ///////
0
i 26
d4 17
1 J 1
/ IS
16 b,o4
1 `
`ter r,,, ( ♦,rti`
411
22
..4a1
P
26
0.
Map. •
[.3. 17ti•ICS
Lake
14
C_NP
EK R
33
A
r111011.12”..-007 PL IT
34 CAYSP6ROUI0
OLO R1 LROAD
{ GRAD[
1
1.1,1
1. kI
-) w, 1i.
3
6.
A
32
PARALLE.
1022
Let./
13 ,6 y7�Ei SON
II CR. ' RD
ID CR. R )
s.4
2
Sae 11_10 W ER
9 1.tr 57C1
L1
1.
11/ KEN NALL
t \J ( CAMPER
6-1
30
36 j
2 %,rL , t
S1, 01111
Sloans '
Point
10 se•0' 262 12
S2
6
9
26
6
33
2
R.
UN L
33
4
11..1 6.... &sea . 20 Owrt
oo,ll1612
REAL ESTATE CONSULTING GROUP
Valley
FARMS WITH SALES OF $10,000 & OVER
Farms by Size (Acres) Principal Occupation of Operator
1982 1987 1982
Under 10 3 4 Farming 41
10 to 49 2
50 to 179 1 0 1 4
180 to 499 1 2 8
500 to 999 1 1 9
1,000 & Over 21 1 7
Other
1987
36
18 16
Value of Land & Buildings
1982
Avg. Value Per $952,071
Farm
Avg. Value Per
Acre
$544
1987
$363,1 76
$436
Vii. MISCELLANEOUS
Motor Vehicles Registered
1980 1988
Cars and Pickups 6,403 7,979
Other 1 ,147 490
Per Capita Total Vehicles 1.35 1.23
Driver's & Chauffeurs Licenses
1980
1988
4,923 5,669
City Population Changes
City 1970 1980 1986 (est.).
Cascade 833 945 1 ,070
Donnelly 1 1 4 139 21 0
McCall 1 ,758 2,188 2,670
Idaho Department of Commerce
700 W. State Street, Boise, Idaho 83720
(208) 334-2470
IDC 90-01 10 220 1.1M
Valley
VI. AGRICULTURE
SUMMARY DATA - ALL FARMS
Inventory: Farms, Cropland, & Livestock 1 9 8 2 1 9 8 7
Total Number, All Farms 1 2 6 1 1 3
Total Acres in Farms 1 1 4 ,1 74 81 ,8 1 9
Avg. Farm Size (acres) 9 0 6 72 4
Total Farms in Crops 8 8 8 0
Total Acres in Crops 19 , 9 6 2 20,639
Cattle and Calves Inventory 15,284 10,538
Hogs and Pigs Inventory 1 6 1 5
Farms by Size (Acres)
Under 10 4 9
10 to 49 2 9 1 9
50 to 179 3 1 3 3
180 to 499 2 4 1 9
500 to 999 1 4 1 2
1,000 & Over 2 4 2 1
Value of Land & Buildings & Products
Avg. Value Per Farm $523,950 $327,920
Avg. Value Per Acre $566 $532
Avg. Value Per Farm $50,819 $70,769
of Products Sold
Principal Occupation
Farming 5 8 6 3
Other 6 8 5 0
Valley
V. NATURAL RESOURCES
LAND OWNERSHIP
Federal Land
BLM
Nat'l Forests
Other
State Land
Endowment Land
Fish & Game
Parks & Recreation
Acres
2,073,032
3,933
2,030,391
38,708
76,677
73,676
1,720
1,281
Percent
Total
88.3%
0.2%
86.4%
1 .6%
3.3%
Private Land 197,097 8.4 %
County Land 2,180 0.1%
Municipal Land 0 0.0%
Total 2,348,986 100.0%
LAND USE * Percent
Acres Total
Urban Land 2,100 0.1 %
Agricultural 76,100 3.2%
Rangeland 244,100 10.2 %
Forest 2,014,800 84.2%
Water 34,400 1.4%
Wetland 11,300 0.5%
Barren Land 9,700 0.4%
Tundra 500 0.0%
Perennial Snow 0 0.0%
Total 2,393,000 100.0%
` U.S.G.S. land use/cover classification system. The water
category and the rounding and estimating of satellite -based
data usually results in slightly higher totals for land use.
Valley
IV. EDUCATION AND SOCIAL INDICATORS
Education Funding Level - 1987-88
State Funds All Funds
/Average /Average
Daily Daily
School District Attendance Attendance
McCall $1,054.22 $3,161.76
Cascade $1 ,298.85 $3,776.22
Education Level
*
1970 1980
Four + Years College(%) 1 1 .4 21.1
High School Graduates(%) 57.3 80.3
Median Years Completed 1 2.2 12.9
Population age 25 or over
Percent Below Poverty
1 969 1979
Families 7.9 7.2
Persons 9.2 9.0
Average Monthly Welfare Roll - 1988 Health Care - 1988
No. of Casea
Aid to Aged, Blind & Disabled 7
Aid to Dependent Children 2 8
Number
Persons Per Physician 850.0
Number of Hospitals 2
Total Hospital Beds 31
Ambulance/EMS Services 7
Crime Number of Offenses Other Social Indicators - 1987
1 9 8 0 1 9 8 4 1 9 8 8 County State
Murder 0 0 0 Suicide Rate Per 100,000 14.5 17.6
Rape 3 0 2 Marriage Rate Per 1,000 13.5 1 1 .5
Robbery 2 2 0 Divorce Rate Per 1,000 8.7 5.9
Aggravated Assault 2 3 6 2 7
Burglary 159 85 62
Larceny 1 78 1 2 0 1 4 7
Motor Vehicle Theft 2 0 1 1 2 2
Valley
LABOR FORCE
Average Monthly °!° Unemployed - 1988
Jan. 15.0 May 10.7 Sept. 4.0
Feb. 16.5 June 5.7 Oct. 4.7
Mar. 17.0 July 4.7 Nov. 5.6
Apr. 16.6 Aug. 4.2 Dec. 7.7
Annual % Labor Force Unemployed
1978
1980
1984
1988
13.1
13.7
12.1
9.1
LOCAL GOVERNMENT REVENUES
Travel & Convention Room Tax (2%)
Total Sales
FY 1983 $1,029,723.52
FY 1986 $2,168,694.73
FY 1989 $2,853,913.62
Property Taxes
Taxable Market Value All Property - 1988
Property Taxes Budgeted - 1988
Property Tax As A % Of Market Value - 1988
Urban 1.2999
Rural 0.8922
Percent Females (16+) in Labor Force
1970 41.7
1980 55.4
1988 56.4
Tax Receipts
$17,158.25
$38,133.06
$51,760.45
$565,236,934
$5,667,848
After homeowner exemption
INCOME 1980 1983 1985 1987
Per Capita Income $9,750 $10,501 $10,565 $1 1 ,958
Percent of National Average 98.3 86.8 76.0 77.2
Percent of State Average 1 1 3.8 106.2 97.6 100.7
Government Transfer Payments $7,847 $11,142 $12,506 $14,092
(in thousands of dollars)
BUSINESS 1980 1982 1984 1986
Total Business Establishments 1 82 1 9 7 251 2 33
Total Retail Businesses 5 5 7 0 7 5 6 5
Valley
III. ECONOMY
EMPLOYMENT- Full & Part Time by Place Of Work •
Total Employment
1980
3,085
1983
3,314
1985
3,230
1987
3,456
Employment By Type 1 980 1 9 8 3 1 9 8 5 1 9 87
Wage & Salary Employment 2,348 2,382 2,277 2,421
Farm Proprietors 117 130 129 119
Non -Farm Proprietors 620 802 824 916
Employment By Industry 1 9 80 1 9 8 3 1 9 8 5 1 9 87
Farm 173 174 168 163
Ag. Serv., Forest., Fish. & Other 47 46 31 38
Manufacturing 195 217 224 211
Mining 14 2 3 10 51
Construction 273 216 201 233
Transport., Comm., & Pub. Util.'s 115 134 1 1 5 95
Wholesale Trade 29 5 6 34 30
Retail Trade 623 726 695 702
Finance, Insur., & Real Estate 235 294 322 342
Services 603 656 652 777
Federal Civilian 335 303 273 278
Federal Military 43 2 9 30 36
State & Local Government 400 440 475 500
• Source: U.S. Bureau of Economic Analysis
(D) = Not shown to avoid disclosure of confidential material
(L) = Less than 10
Valley
II. HOUSING
Housing Units
Total
Mobile Homes or Trailers
Overcrowded Units
(1.5+ Persons Per Room)
Units Lacking Some or
All Plumbing
Household Composition (Household Size by %)
1 to 2 Persons
3 to 5 Persons
6 + persons
Tenure
Owner Occupied Units
Renter Occupied Units
Vacant Units
Value
Median Housing Value
Median Rent
Plumbing Facilities (Year-round Housing on)
Public Sewer
Public Water System
or Private Company
1970
2,431
82
20
96
47.2
43.1
9.7
829
321
407
$1 3,200
$67
196Q
5,1 07
334
32
134
56.0
40.1
3.9
1 ,458
605
972
$52,100
$163
1 ,088 1 ,775
1 ,058 1 ,944
Age of Housing Stock - Year Structures Built
Number Built 1970 to March 1980 1 ,222
Number Built 1960 to 1969 491
Number Built 1950 to 1959 3 6 6
Number Built 1940 to 1949 321
Number Built 1939 or Earlier 6 3 2
New Housing Units Authorized in Permit Issuing Places
Place 1980-1983. 1984-1988
Cascade 1 2 1 4
Donnelly 1
Mc Call 39 8 1 0 2
Valley County Unincorporated Area 4 0 7 1 88
In many cases, permit totals do not represent a complete number for the county.
County Profiles of Idaho
Valley
County Seat: Cascade
I. PEOPLE
POPULATION
Total
Pop. per sq. mi.
1970
3,609
1.0
Population Change (%)
Percent Rural
Percent Urban
1980
5,604
1.5
1988
6,800
1.9
1970-1980 1980-1988
55.3 21.5
1980 1986
100 61.3
0 38.7
DEMOGRAPHIC COMPONENT CHANGES
1970-198Q 1980-1988
Births 800 900
Deaths 400 400
Net Migration 1,500 600
Percent Migration 41.9 11.2
1980 1987
Birth Rate 24.1 10.7
Fertility Rate 115.4 46.5
1970 1980 1987
Med. Age 30.9 29.7 31.8
Under 18 Years (%) 35.7 29.3 27.2
18 to 64 Years (%) 55.4 62.5 63.9
65+ Years (%) 8.9 8.2 8.9
Persons Per Household 3.10 2.69 2.63
Geographic Mobility: 1980
Percent of Persons 5 years + Living in a Different County in 1975 42.0
Percent of Persons 5 years + Living in a Different State in 1975 24.5
third 7.27 acre tract, into Timberlost VI Subdivision which contains a total of 52 lots. As
currently subdivided, the parcels under appraisement within this subdivision do not have a
sales history. Parcel #1, also owned by D & D Land and within the Timberlost V
Subdivision, borders Timberlost VI Subdivision to the north and has not sold within the
previous three years.
The City of McCall has owned their respective parcels for more than a three year period.
REAL ESTATE CONSULTING GROUP, INC. • 5
GOLF COURSE EXCHANGE PARCELS