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HomeMy Public PortalAbout1984.10.16 Appraisal of Stein Property DeinhardSewerandLiftStation CityoMcCall' OFFICE OF THE CLERK BOX 1065 MCCALL , IDAHO 83638 L , � Q; L U V Cl OCT 22 riii4 October 16 , 1984 William J . McKlveen Eberle , Berlin , Kadi ng , Turnbou & Gillespie , Chartered Capitol Park Plaza 300 North Sixth Street P . O . Box 1368 Boise , Idaho 83701 Re : Appraisal of Stein Property Dear Bill : Enclosed is a copy of the appraisal for Stei n ' s property which the City ' s interceptor line crosses . The appraisal amount is very small in respect to your earlier letter , I would suggest that you contact Dave Pifori and review it with him . I will wait your response before proceeding further , ` r ly , 9 11 mi th ty Admi n i s tator 10 / 19 / 84 Original Appraisal w / cc : Keith D . Stein n . b . to Keith : After you have had a chance to review this , let ' s discuss . WJM APPRAISAL OF Eastside Interceptor Keith Stein Property MC CALL , IDAHO For Mr . James Smith Administrator City of McCall McCall , Idaho Prepared by : Intermountain Appraisal Service , Inc . Boise , Idaho IAS - 117 - 84 . INTRODUCTION 1 I r I 11 INTERMOUNTAIN APPRAISAL SERVICE , INC . P. O . BOX 8354 , BOISE , IDAHO 83707 PHONE 344 - 1120 David S. Pifari , M . A . I . Ralph A . Pifari , M . A . I . October 4 , 1984 Mr . James Smith , Administrator City of McCall McCall , Idaho 83638 Re : Eastside Interceptor , Keith Stein property , McCall , Idaho IAS417 - 84 Dear Mr . Smith : In accordance with your request and for the purpose of estimating loss in value to the above captioned property caused by an easement for construction of an underground sewer line , a generator house , a pump station , and an underground power line , I have inspected the property and have made investigations and analysis of matters believed to be pertinent to the estimation of its value in a before condition , an after condition , and the value of the property where the easement will be . Subject to the assumptions and limiting conditions included herein and based on the information and analysis contained in this report and in my files the following values have been estimated : Value Before $ 61 , 400 Value After $ 115 , 000 Value of the Easement $ 1 , 532 Thank you for this opportunity to have been of assistance . If we may be of additional assistance or if clarification is needed on any point in this appraisal report , please do not hesitate to call me . Respectfully submitted , )7zzze-t_. David S . Pifari , INTERMOUNTAIN APPRAISAL SERVICE , INC . A cb TABLE OF CONTENTS Introduction Letter of Transmittal i Table of Contents ii Summary of Salient Facts and Conclusions iii Assumptions and Limiting Conditions iv Description , Analyses and Conclusions Statement of the Problem Identification of the Property 1 Legal Description 1 Purpose of the Appraisal 1 Market Value Defined 1 Definition of Easement 2 Statement of Ownership 3 Date of Value Estimate 3 Regional and City Data 4 Subject ' s Neighborhood Data 5 Zoning and Taxes 5 Property Evaluation The Appraisal Process 7 Appraisal Methods Used 8 Developer ' s Analysis 9 Summary and Conclusion 9 The Easement 11 After The Easement 12 Identification of the Property 13 Legal Description 13 Purpose of the Appraisal 13 Market Value Defined 13 Definition of Easement 13 Statement of Ownership 13 Date of Value Estimate 13 Regional Data 13 Subject ' s Neighborhood Data 13 Site Description 14 Zoning 14 Highest and Best Use Analysis 14 Summary and Conclusions 16 Certification 17 Addenda Legal Description A - 1 Plat Map A - 2 Idaho Code for Assessment of Damage A - 3 McCall Location Map A - 4 Qualifications for David Pifari A - 5 ii SUMMARY OF SALIENT FACTS AND CONCLUSIONS Identification of the Property : The property to be appraised is located approximately one to two miles southerly o f the city of McCall on the westerly side of the Payette River . Site : The site is a very irregular shaped parcel containing a total of 7 . 68 acres . It lies along the westerly side of the Payette River and incorporates somewhat level ground immediately adjacent to the ✓ iver and quite steep hillside rising up from the River Plain . Improvements : At the time of my inspection there were n o improvements to the property except for an underground sewer line which intersects the property approximately at its midpoint . Highest and Best Use : The highest and best use of the site is e stimated to be hold for speculation for future development . Estimated Market Value of the Site : Before the Easement , Rounded , $ 61 , 400 After the Easement , Rounded $ 115 , 000 Estimated Loss in Value due to the Easement : $ 1 , 532 Date of Value Estimate : September 10 , 1984 . iii ASSUMPTIONS AND LIMITING CONDITIONS This appraisal was made according to the following assumptions and limiting conditions : 1 . No legal questions are considered , such as title , encumbrances , etc . The property is appraised as though free and clear except as specifically noted within this report . 2 . All dimensions and legal descriptions found through available records or on - the - ground inspection are assumed to be correct . 3 . The subject property will be under management that is competent and ownership that is responsible . 4 . All information as found in data furnished is deemed to be reliable ; if any errors are found , the right is reserved to modify the conclusions reached . 5 . The sketch in this report is included to assist the reader in visualizing the property . The appraiser has made no survey of the property and assumes no responsibility in connection with such matters . 6 . The various approaches to value and mathematical calculations used in e stimating value are merely aids to the formulation of the opinion of value expressed by the appraiser in this report . In these calculations , certain arithmetical figures are rounded off to the nearest significant amount . 7 . The data and conclusions embodied in this appraisal are a part of the w hole valuation . No part of this appraisal is to be used out of context ; and , by itself alone , no part of this appraisal is necessarily correct in that it represents only part of the evidence upon which the final judgment of value is based . 8 . Employment to make this appraisal does not require testimony in court unless mutually satisfactory arrangements are made in advance . The ✓ eport , and the work product required to prepare it , is considerably less than that required for a completely documented appraisal report . If court testimony is required by the appraiser , it will be necessary to prepare a completely documented appraisal report before such testimony is given . 9 . Fair market value as indicated herein is defined as the most prob - able selling price in terms of money which a property would bring in a competitive and open market under all conditions requisite to a fair sale with the buyer and seller each acting prudently and knowledgeably and assuming the price is not affected by undue stimulus . 10 . Disclosure of the contents of this appraisal report is governed by the bylaws and regulations of the American Institute of Real Estate Appraisers of the National Association of Realtors . iv ASSUMPTIONS AND LIMITING CONDITIONS Continued 11 . Neither all nor any part of the contents of this report ( especially any conclusions as to value , the identity of the appraiser or the firm w ith which he is connected , or any reference to the American Institute o f Real Estate Appraisers or to the M . A . I . or R . M . designations ) shall be disseminated to the public through advertising media , public relations media , news media , sales media or any other public means of communication without the prior written consent and approval of the appraiser . 12 . No study has been made to determine whether structures may have an infestation such as termites or dry rot . In the absence of such a study , it is assumed the property is free from such problems . 13 . The appraiser assumes that there are no hidden or unapparent conditions of the property , subsoil , or structures , which would render it more or less valuable . The appraiser assumes no responsibility for such conditions , or for engineering which might be required to discover such factors . 14 . The appraiser assumes no responsibility for any structural or e quipment defects hidden or unapparent , or conditions such as substandard insulation , plumbing or wiring , water leaks , defective ✓ oof condition , settlement , or structure problems ; or for engineering w hich might be required to discover such conditions or factors . 15 . The appraisers do not warranty the value or the condition of the property . The client and / or purchaser should satisfy himself/ herself that the price and the condition of the property are acceptable . 16 . It is further assumed that the property which is under consideration as the whole parcel could be subdivided in its as - is condition with septic tanks and drain fields which would meet central district health department standards as set forth in this report . v I i DESCRIPTION , ANALYSIS AND CONCLUSIONS I BEFORE THE EASEMENT STATEMENT OF THE PROBLEM IDENTIFICATION OF THE PROBLEM The real estate under appraisal is a 7 . 68 acre site located along the westerly bank of the Payette River approximately one to two miles south of the city of McCall . LEGAL DESCRIPTION The legal description of the larger parcel and the easements are contained in the addenda section of this report as Page A - 1 . PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the loss in value caused by an easement across a portion of the larger parcel which will be used for an underground sewer line , an underground power line , an underground pump station , and a generator house which reportedly will be partially above ground and partially below ground . It is understood that this appraisal will be used to value the easement for income tax purposes . MARKET VALUE DEFINED * The most probable price in terms of money which a property should bring in competitive and open market under all conditions requisite to a fair sale , the buyer and seller , each acting prudently , knowledgeably and assuming the price is not affected by undue stimulus . *American Institute of Real Estate Appraisers , Real Estate Appraisal Terminology , Rev . Ed . ( Ballinger Publishing Co . , 1982 ) Pg . 160 . 1 MARKET VALUE DEFINED Continued 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 each acting in what they consider their own best interest . 3 . a reasonable time is allowed for exposure in the open market . 4 . payment is made in cash or its equivalent . 5 . financing , if any , is on terms generally available in the community at the specified date and typical for the property type in its locale . 6 . the price represents a normal consideration for the property sold unaffected by special financing amounts and / or terms , services , fees , costs , or credits incurred in the transaction . DEFINITION OF EASEMENT * A non - possessing interest held by one person in the land of another person whereby the first person is accorded partial use of such land for a specific purpose . An easement restricts , but does not abridge , the rights of the fee owner to the use and enjoyment of the easement holder ' s rights . Easements fall into three broad classifications : surface easements , subsurface easements , and overhead easements . *American Institute of Real Estate Appraisers , Real Estate Appraisal Terminology , Rev . Ed . ( Ballinger Publishing Co . , 1982 , Pg . 86 ) . 2 STATEMENT OF OWNERSHIP The subject property is currently owned by Mr . Keith Stein of Boise , Idaho . DATE OF VALUE ESTIMATE The date of value estimated for the subject is September 10 , 1984 . 3 REGIONAL AND CITY DATA The city of McCall is located approximately 112 miles north of Idaho ' s capitol city , Boise . The population of McCall is approximately 2 , 188 . Valley County population is reported at approximately 5 , 600 . During the summer months these figures raise substantially due to the influx of summer residents . McCall is a recreational oriented community with year around activity . Summer activities include fishing , hiking , water skiing , swimming , and back packing in the surrounding mountains . Fall activities center around hunting while winter activities include downhill skiing , cross country skiing , snowmobiling and the well known , McCall Winter Festival . A large portion of the developments in McCall have centered around recreational homes including both condominiums and privately owned cabins . SUMMARY AND CONCLUSIONS The long range outlook for the McCall area is for controlled continued growth in recreational and tourist oriented developments , second homes and condominiums , and commercial business uses . 4 SUBJECT ' S NEIGHBORHOOD The subject is located approximately one to two miles south of the city of McCall on the westerly bank of the Payette River . Immediately n orth of the subject is an area which has been developed with single family ✓ esidential dwellings in a moderate to light density . Homes in this area are average to good quality , predominately year around residential dwellings . Some second home , or recreational home , uses may be interspersed . The area is developed with all utilities including central sanitary sewer and water . To the east of the subject , on the opposite side o f the Payette River is predominately undeveloped land which is currently being used as pasture or other agricultural uses . Approximately o ne - quarter mile to the east of the subject lies the McCall Municipal Airport . To the south of the subject along the river plain , is predominately undeveloped and currently unused except for some limited pasture and other agricultural uses . ZONING The property is currently outside the city limits of McCall but is within the impact area of the city of McCall . It is zoned for agricultural u se in the McCall city impact area . This zone allows four units per acre if central sanitary sewer is available , without sanitary sewer a maximum of o ne unit per acre is allowed if all other requirements by Central District Health can be met . HIGHEST AND BEST USE * That reasonable and probable use that supports the highest present ✓ alue , as defined , as of the effective date of the appraisal . Alternatively , that use , from among reasonably probable and legal alternative uses , found to be physically possible , appropriately supported , financially feasible , and which results in highest land value . *American Institute of Real Estate Appraisers , Real Estate Appraisal Terminology , Rev . Ed . ( Ballinger Publishing Co . , 1982 ) Pg . 126 . 5 HIGHEST AND BEST USE Continued The definition immediately above applies specifically to the highest and best use of land . It is to be recognized that in cases where a site has existing improvements on it , the highest and best use may very well be determined to be different from the existing use . The existing use will continue , however , unless and until land value in its highest and best use e xceeds the total value of the property in its existing use . Implied within these definitions is recognition of the contribution of that specific use to community environment or to community development goals in addition to wealth maximization of individual property owners . Also implied is that the determination of highest and best use results from the appraiser ' s judgment and analytical skill , i . e . , that the use determined from analysis represents an opinion , not a fact to be found . In appraisal practice , the concept of highest and best use represents the premise upon which value is based . In the context of most probable selling price ( market value ) another appropriate term to reflect highest and best use would be most probable use . In the context of investment value an alternative term would be most profitable use . Central District Health requirements include the following . A separation between the bottom of a drain field and the spring high - water table of a minimum of four feet ; enough level ground space to provide room for an original drainfield and a backup drain field in case the original field fails ; both primary and backup areas for drain fields should be in e xcess of 300 feet from any river , stream , or lake , but in no case can be closer than 200 feet to said river , stream , or lake . A general review of the subject ' s larger parcel indicates that all ground which is level and w ould be acceptable to Central District Health in terms of grade appears to lie within 200 feet of the Payette River . Additionally , some of this ground has either perched water or a very high water table with at least some water collecting on the surface . The remainder of the site which is in excess of 300 feet from the Payette River is comprised predominately of a steep hillside which would be unacceptable to Central District Health for use as a drain field location . 6 HIGHEST AND BEST USE Continued Approximately mid way of the subject ' s larger parcel there is a pump station currently owned by the Payette Lakes Water and Sewer District . Investigation into this pump station indicated that the subject larger parcel does not fall within the Payette Lakes Water and Sewer District and therefore does not have access to this existing sewer line . Without access to a sewer line the subject property cannot be developed until central sewer becomes available . In the before condition the subject does not have access to a central sewer line and therefore its highest and best use is estimated to be to hold for speculation until such time as a sewer line becomes available and demand indicates the feasibility of developing the property in some manner . 6a PROPERTY EVALUATION THE APPRAISAL PROCESS There are three basic approaches that may be used by appraisers in the e stimation of market value . These three approaches provide data from the market from three 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 making adjustments for differences . To the indicated site value is added the e stimated cost to reproduce or replace the improvements , less any loss of ✓ alue ( depreciation ) that may have occurred . The Income Approach is a process of developing the net income from a property into an indication of value . This is accomplished by analyzing the relationship of net income from similar properties to their selling prices in the market . The relationship between net income and selling price is called a capitalization rate . The net income is divided by the capitalization rate 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 u se , design , and utility that have sold in the recent past . Adjustments are made to the comparables for differences to indicate a value for the subject property . Normally , these three approaches will each indicate a different value . A final value estimate is derived by carefully weighing the various factors considered in each approach and correlating the value indications . If any one of the three approaches is not applicable in estimating market value , an explanation will be given for its exclusion . 7 APPRAISAL METHODS USED A thorough search of market sales in the McCall area revealed no recent sales of large parcels similar to the subject for which information could be obtained to make a direct comparison to the subject . Therefore a developer ' s analysis will be used to estimate value of the land to a potential purchaser . As no projections have been made by the owner , engineers , or other persons involved with the property as to how it might possibly be developed The appraiser will have to make certain assumptions with respect to the number of potential lots , development expenses , including sales expense and holding expense , and profit to the developer . 8 DEVELOPER ' S ANALYSIS In the before condition the greatest number of lots possible for the subject larger parcel is one per acre or seven lots . In reality this is probably higher than what could feasibly be developed on the site without central sewer but it is recognized that a developer who might be willing to speculate on the property may be willing to make a similar assumption . Research in the McCall area indicated the following developed sites have recently sold . A two acre site located in Carefree Estates , approximately one to two miles south of the subject recently sold for $ 25 , 000 . This property has frontage on Lake Fork Creek , has a domestic water supply , but does not have central sewer . This sale indicates a selling price per square foot of $ . 29 . In June of . 1984 one and one - half acres sold to a single purchaser in Valley View Heights . Total purchase price was $ 41 , 613 for approximately 65 , 340 square feet of site . This indicates a selling price per square foot of site area of $ . 64 . This site was purchased as two separate parcels and assembled into one . It does not have frontage on a stream . In November of 1982 Lot 17 , Lake Fork Estates , sold for of $ 25 , 000 . The site was 1 . 6 acres in size and had approximately 200 front feet along Lake Fork Creek . Selling price per square foot was $ . 36 . SUMMARY AND CONCLUSIONS The 1 . 5 acre site located in Valley View Heights is considered to be a superior location , closer to McCall and , while it did not have frontage directly on the Payette River , it reportedly did have a view of the river . The sale in Lake Fork Estates and Carefree Estates not only have an inferior location , but have less utilities than the Valley View Estates site . In comparing to the subject , the Valley View Estates site is 9 SUMMARY AND CONCLUSIONS considered somewhat superior in terms of its utilities . The second two comparables are considered to be inferior in terms of their location but more similar in terms of having frontage on a stream and available utilities . It is unfortunate that better comparable data could not be located to give some additional support in valuing the subject , and that a conclusion must be drawn from three sales with widely varying characteristics , locations , and dates of sale . After giving consideration to each of these factors it is the appraiser ' s opinion that the market value of the proposed seven , approximately 1 . 1 acre sites which are assumed to be developable on the subject ' s larger parcel can be estimated at approximately $ . 50 per square foot per site or $ 23 , 895 rounded to $ 24 , 000 per site . A general rule of thumb when developing property is the final selling price of the finished product can be approximately divided into thirds . That is one - third of the selling price going to the developer for his profit and overhead , one - third of the selling price allocated to development and selling expenses , and one - third of the sales price allocated to raw land valuation . This would indicate a raw land value of $ 8 , 000 per acre , or $ . 18 per square foot . Total value of the property in the before condition , therefore is estimated to be 7 . 68 acres @ $ 8 , 000 per acre $ 61 , 440 , Rounded to $ 61 , 400 10 THE EASEMENT The easement proposed for taking is very irregular in shape , lies at the approximate middle of the subject site and is predominately an u nderground easement . ( See facing page ) The majority of the easement is shown in the dark unbroken lines in the drawing . A small portion not shown o n the drawing exists to the west of that portion which is shown . Portion AB of the easement is for an underground power line running between an underground pump station ( at Point A ) and the proposed underground pump station ( Point B ) . The portions marked C on the drawing are reported to be the only above - ground appurtances in the easement . The balance of the e asement is an underground easement with approximate dimensions as shown . Additionally an access easement will have to be provided which will allow o ccasional access to both pump station and the generator house . The location of this access easement is flexible and can be worked in with a possible plan for development . For purposes of use almost the entire e asement can be landscaped , walked over , will have no view obstructions ( appurtances from the pump station are reportedly planned to be at ground level ) , and with the exception of the generator house are anticipated to have very low visibility once construction is complete and natural ✓ egetation has had an opportunity to reestablish itself . The legal description of the easement is contained in the addenda section of this ✓ eport as Page A - 1 . Total size of the easement is reported by the engineer to the appraiser as being . 322 acres or 14 , 026 square feet . 11 AFTER THE EASEMENT STATEMENT OF THE PROBLEM IDENTIFICATION OF THE PROBLEM Same as before the easement . LEGAL DESCRIPTION Same as before the easement . PURPOSE OF THE APPRAISAL Same as before the easement . MARKET VALUE DEFINED Same as before the easement . STATEMENT OF OWNERSHIP Same as before the easement . DATE OF VALUE ESTIMATE Same . as before the easement . REGIONAL DATA Same as before the easement . SUBJECT ' S NEIGHBORHOOD Same as before the easement . 13 PROPERTY DATA SITE DESCRIPTION Same as before the easement . ZONING Same as before the easement . HIGHEST AND BEST USE ANALYSIS * That reasonable and probable use that supports the highest present value , as defined , as of the effective date of the appraisal . Alternatively , that use , from among reasonably probable and legal alternative uses , found to be physically possible , appropriately supported , financially feasible , and which results in highest land value . The definition immediately above applies specifically to the highest and best use of land . It is to be recognized that in cases where a site has existing improvements on it , the highest and best use may very well be determined to be different from the existing use . The existing use will continue , however , unless and until land value in its highest and best use exceeds the total value of the property in its existing use . Implied within these definitions is recognition of the contribution of that specific use to community environment or to community development goals in addition to wealth maximization of individual property owners . Also implied is that the determination of highest and best use results from the appraiser ' s judgment and analytical skill , i . e . , that the use determined from analysis represents an opinion , not a fact to be found . In appraisal practice , the concept of highest and best use represents the premise upon which value is based . In the context of most probable selling 14 HIGHEST AND BEST USE ANALYSIS Continued price ( market value ) another appropriate term to reflect highest and best use would be most probable use . In the context of investment value an alternative term would be most profitable use . After the easement the subject will have access to a wet sewer line w hich will enable the property to be developed to its highest possible density given the existing topography and drainage problems in some areas o f the site . Some restrictions may be placed on the number of lots which could be developed in the area of the easement . Principally where the power station is to be located because of the topography of the hill to the n orth of the station and the wetness to the south of the station it is highly unlikely that this area could be used as a building site without substantial drainage work and fill dirt . The remainder of the property , although having a utility easement across it , in all likelihood could be utilized and developed with individual sites substantially smaller than an acre in size , or with a planned unit development which would incorporate the concept of density transfer . Again no study has been provided to the appraiser to indicate the number of feasible sites which could be developed on a site as irregular in shape and topography , and with ground water characteristics as the subject has . However , it is without doubt that once a sewer line has been installed the subject site could be developed with substantially more sites than it could be in the before condition . It is questionable as to whether or not the site could be developed with four units per acre due to its steepness . Some density transfer could conceivably take place which would allow a substantially higher density than one unit per acre . Therefore , assuming that at least three units per acre could be developed the resulting density would be a total of 23 units . The highest and best use of the larger parcel after the easement would be for development with a residential development containing approximately 23 units . 15 DEVELOPMENT ANALYSIS SUMMARY Each potential lot would have a total size of approximately 14 , 545 square feet before allowing for roads . Obviously these sites are going to have a somewhat lesser value on a per site basis than the larger 1 . 1 acre site . Of the three comparables previously used , the second comparable , w hich was located in Valley View Estates and is quite close to the subject , was the sale of a one acre lot and a one - half acre lot to a single buyer . These were adjacent parcels and where combined into a single parcel . The half - acre lot sold for a reported $ 17 , 613 . Adjusting this down slightly for the smaller size of the proposed 23 lots it is reasonable to estimate a market value for the 23 lots at $ 15 , 000 each . Again , using the one - third rule and allocating one - third of the selling price of each lot as raw land ✓ alue , the indicated market value for the larger parcel with the easement would be $ 5 , 000 x 23 or $ 115 , 000 . SUMMARY AND CONCLUSIONS It can be readily seen by the two analyses presented that the subject property can be expected to benefit substantially by the installation of the proposed sewer line . Therefore , it is the appraiser ' s conclusions that n o damages accrue to the subject parcel due to the easement which is proposed for the subject . Therefore , according to Idaho Code , the only compensation allowable to the land owner is for the use of the easement o ver his property . In the before condition the land was estimated to have a value of $ 8 , 000 per acre or $ . 18 per square foot . Total size of the e asement is 14 , 026 square feet which indicates a total value for the e asement land of $ 2 , 575 . The easement holder would almost have exclusive ✓ ights to approximately 3000 square feet . The remainder of the easement would be approximately shared by both land owner and the easement holder . The value of the easement is calculated as follows . 3 , 000 sq . ft . @ $ . 18 / sq . ft . _ $ 540 1 / 2 interest in 11 , 026 sq . ft . @ $ . 18 / s . f . _ $ 992 Total $ 1 , 532 16 SUMMARY AND CONCLUSIONS Therefore , subject to the assumptions and limiting conditions attached and based on the analysis and conclusions contained in the attached appraisal , fair market value of the proposed easement is estimated to be * * * ONE THOUSAND FIVE HUNDRED THIRTY - TWO DOLLARS * * * * * * $ 1 , 532 * * * 17 CERTIFICATION I , David S . Pifari , M . A . I . , do hereby certify that except as otherwise noted in this report : 1 . I have personally inspected the subject property . 2 . I have no present or contemplated future interest in the real estate that is the subject of this appraisal report . 3 . I have no personal interest or bias with respect to the subject matter of this appraisal report or the parties involved . 4 . The fee for this assignment is in no way contingent upon the value reported . 5 . To the best of my knowledge and belief , the statements of fact con - tained in this appraisal report , upon which the analyses , opinions , and conclusions expressed herein are based , are true and correct . 6 . This appraisal report sets forth all of the limiting conditions im - posed by the terms of my assignment or by the undersigned affecting the analyses , opinions , and conclusions in this report . 7 . This appraisal report has been made in conformity with and is subject to the Code of Professional Ethics and Standards of Professional Conn duct of the American Institute of Real Estate Appraisers of the National Association of Real Estate Boards . 8 . No one other than the undersigned prepared the analyses , opinions , and conclusions concerning real estate that are set forth in this appraisal report . 9 . The American Institute of Real Estate Appraisers conducts a voluntary program of continuing education for its designated members . M . A . I . ' s and R . M . ' s who meet the minimum standards of this program are awarded periodic educational certification . I am certified under t. hi 5 program through September 15 , 1986 . r wt J / / a j�� �� � �i : ! r tj �¢. IT David S . Pifari , M . A . I .' I ADDENDA � l I A parcel of land situate in the NE1 / 4 , Section i / , Township 18 North , R . 3 E , B . M . Valley County , Idaho , more particularly described as follows : Commencing at the C 1 / 4 corner , Section 17 , Township 18 North , R . 3 E , B . M . Valley County , Idaho , thence N 89 ° 57 ' 20 " E , 644 . 45 feet to a meander corner on the Westerly Bank of the North Fork of the Payette River ; thence N 48 ° 00 ' E , 100 feet along said bank to the real point of beginning : Thence West 200 . 00 feet Thence North 120 . 00 feet Thence S 80 ° 00 ' W , 102 . 97 feet Thence N 84 ° 12 ' W , 420 . 23 feet to the Westerly line of the NE 1 / 4 of said Section 17 , Thence N 0 ° 11 ' 40 " W , 125 . 00 feet to the South West corner of Rio Vista Subdivision No . 4 . Thence along the Southerly boundary of Rio Vista Subdivision No . 4 ; N 89 ° 48 ' 18 " E , 70 . 00 feet Thence on a non tangent curve to the left whose radius point bears N 89 ° 48 ' 18 " E . 46 . 26 feet , a delta angle of 63 ° 12 ' 36 " , 51 . 04 feet , Thence on a curve to the left whose radius is 76 . 33 feet and delta angle is 51 ° 30 ' 00 " 68 . 61 feet Thence N 65 ° 05 ' 42 " E , 50 . 65 feet , Thence on a curve to the right whose radius is 140 . 90 feet and delta angle is 50 ° 32 ' 48 " 124 . 30 feet Thence S ,64 ° 21 ' 30 " E . , 38 . 65 feet Thence on a curve to the left whose radius is 95 . 98 feet and delta angle is 41 ° 47 ' 12 " 70 . 00 feet Thence N 73 ° 51 ' 18 " E , 127 . 80 feet Thence on a curve to the right whose radius is 176 . 01 feet and delta angle is 16 ° 08 ' 42 " , 49 . 60 feet Thence East 150 . 00 feet Thence on a curve to the left whose radius is 178 . 30 feet and delta angle . is 10 ° 42 ' 48 " 33 . 34 feet Thence N 79 ° 17 ' 12 " E , 98 . 28 feet Thence on a curve to the left whose radius is 125 . 27 feet and delta angle is 47 ° 11 ' 12 " , 103 . 17 feet Thence N 32 ° 06 ' 00 " E , 573 . 93 feet to the Northeast corner of Lot 1 , Rio Vista Subdivision No . 4 Thence N 54 ° 17 ' 48 " E , 102 . 49 feet to the Northerly line of Lot 26 , Rio Vista Subdivision No . 3 , Thence S 69 ° 14 ' 45 " E , 71 . 00 feet along said Northerly line to the right bank of the North Fork of the Payette River Thence S 1 ° 00 ' E , 105 . 90 feet along said right bank Thence N 70 ° 22 ' 49 " W , 82 . 43 feet Thence on a curve to the left whose radius is 20 . 0 feet and delta angle is 77 ° 31 ' 11 " , 27 . 06 feet Thence S 32 ° 06 ' W , 65 . 88 feet Thence S 70 ° 22 ' 49 " E , 146 . 30 feet to the right bank of the North Fork of the Payette River Thence S 1 ° 00 ' E , 78 . 62 feet along said right bank Thence S 16 ° 00 ' W , 180 . 00 feet along said right bank Thence S 37 ° 00 ' W , 75 . 00 feet along said right bank Thence S 57 ° 30 ' W , 200 . 00 feet along said right bank Thence S . 66 ° 00 ' W , 180 . 00 feet along said right bank Thence S 56 ° 28 ' 48 " W , 332 . 22 feet along said right bank To the point of beginning SUBJECT to existing , reserved or granted easements , restrictions , or rights of way . Legal Description Larger Parcel A - la /I' r oil ill . /"° c t oxL -.);:s2t, ACk \ i 60tt i ") R lo V ‘ 3-r a c , ( c -- • , i ep 1 / • A . / � J� ;' � 37 • j UC �Y .hoe' fit * i � p � Lo ' . A ao4. � 3� a � 1 _ 1v , GA gp . , , , /c's J i Ji E; i - yd . ,�, 3s• S� Q.+ 1. .J . o ' r N . ( rx t. �, p • - . .b • (j. ' \ , • i SI.yam `W ��J) - 74 ' 1v. 3o 4 J l - /,i D ,, 1 LA2G � R (�' RR 1 ® n � ik. �� ( `/ ? , • if? c $ OQto ► r � ` ' Lz a4- rz < < e... M , t }•I eACoc , t \�J ( � _ _ ^- ___ ._ __ 1, ( : — NA•im Ni .4I biaton! - sz� — ; CoVva \ off, . _v�, `� �� � � , � � , ( yQ \ .,I � 6 CdM , ,, Al: f r' : , P1at Map A - 2a • 7 -707 SPECIAL PROCEEDINGS 98 (2) The state of Idaho or any political subdivision thereof shall be entitled to escrow the funds for the acquisition of the omitted lands until a letter of acquiescence or other documentation is received from the federal govern- ment, at which time all of the funds shall be remitted to the landholder . [I . C . , § 7-704A , as added by 1982 , ch . 125 , § 1 , p . 361 . ] Compiler' s notes . Section 2 of S .L. 1982 , Sec . to sec . ref. This section is referred to ch . 125 is compiled as § 40-705 . in § 40-705 . Cross ref. Condemnation of rights-of-way , § 40-705 . 7-707 . Complaint. ANALYSIS for condemnation did not exist. Erickson v . Amoth , 99 Idaho 907 , 591 P . 2d 1074 ( 1978) . Burden of proof. Evidence. Offer to Purchase. Offer to purchase . Where the evidence showed that plaintiff Burden of Proof. power company was building a 230 kv high Where landowners specifically alleged that tension power transmission line and needed a the condemnors had alternative means of three-quarters of a mile right-of-way across defendants' land to erect three self-supporting access and produced evidence of such alterna- double circuit steel towers in connection with five means of access, including one road then that project, that plaintiff made some 20 in use by the condemnors pursuant to a contacts over a period of 13 months in an license agreement it was then incumbent attempt to purchase the right-of-way, that upon the condemnors to prove that the alter- plaintiff had two independent appraisals of native means of access were not available to the land made in addition to its own , and them or that such means of access were not referred defendants to two other appraisers, reasonably adequate or sufficient for their that plaintiffs offered the defendants the top purposes. 07Er4 ( 1978) . Amoth , 99 Idaho 907 , appraisal figure after making several upward 591 P. 2d 1074 adjustments based upon possible future corn- Evidence. mercial potential , and that defendants consis- The fact that the plaintiffs' existing access tently refused while failing to offer any other was by way of a license , rather than an ease- appraisal in support of their position , the trial ment across the land of other adjoining prop- court correctly held that plaintiff had erty owners does not destroy either the satisfied the requirement of subsection (6) of evidence or the finding of the court that alter- this section. Idaho -Power Co. v. Lettunich, native access routes existed nor the trial 100 Idaho 582 , 602 P .2d 540 ( 1979) . court's holding based thereon that necessity 7-711 . Assessment of damages . — The court, jury or referee must hear such legal testimony as may be offered by any of the parties to the pro- ceedings , and thereupon must ascertain and assess : 1 . The value of the property sought to be condemned , and all improve- ments thereon pertaining to the realty , and of each and every separate estate or interest therein; if it consists of different parcels , the value of each parcel and each estate or interest therein shall be separately assessed . 2 . If the property sought to be condemned constitutes only a part of a larger parcel , the damages which will accrue to the portion not sought to be condemned , by reason of its severance from the portion sought to be condemned , and the construction of the improvement in the manner proposed by the plaintiff. 3 . Separately , how much the portion not sought to be condemned , and each estate or interest therein , will be specially and directly benefited, if at all , by the construction of the improvement proposed by the plaintiff; and if Idaho Code A - 3a 99 EMINENT DOMAIN 7 - 718 the benefit shall be equal to the damages assessed , under subdivision 2 , the owner of the parcel shall be allowed no compensation except the value of the portion taken ; but if the benefit shall be less than the damages so assessed , the former shall be deducted from the latter , and the remainder shall be the only damages allowed in addition to the value . 4 . If the property sought to be condemned be for a railroad , the cost of good and sufficient fences along the line of such railroad , and the cost of cattle guards where fences may cross the line of such railroad . 5 . As far as practicable , compensation must be assessed for each source of damages separately . 6 . If the property sought to be condemned is private real property actively devoted to agriculture , the damages which will accrue because of the costs , if any , of farming around electrical transmission line structure (s) . for a transmission line with a capacity in excess of two hundred thirty ( 230) KV (kilovolts ) . If the property sought to be condemned has been the subject of a previous condemnation proceeding or proceedings for electrical transmission line structure ( s) and at the time of condemnation the field holds other electrical transmission line structure ( s) , such evidence of costs referred to above may also include the cumulative effects , if any , of con- ducting farming operations around other electrical transmission line struc- ture(s) in the same field , whether such structure ( s) are of the condemnor or not . [C . C . P . 1881 , § 861 ; R . S . , R . C . , & C . L . , § 5220 ; C . S . , § 7414 ; I . C . A . , § 13 -711 ; am . 1983 , ch . 115 , § 2 , p . 246 . ] Compiler's notes . Section 1 of S . L. 1983 , tion Co . v . Twin Falls Canal Co . , 101 Idaho ch . 115 is compiled as § 7 -704 . 604 , 619 P. 2d 122 ( 1980 ) , cert . denied , 451 U .S. 912 , 101 S . Ct. 1983 , 68 L. Ed . 2d 301 ANALYSIS ( 1981) . Prospective future interference . Special Verdict. Special verdict. In an eminent domain action , special Prospective Future Interference . verdict which conformed with this section but When an easement owner loses the exclu- also contained a space for the jury to indicate sive right to use his easement, he may well be its total award , which corresponded with the damaged by the prospective future interfer- total of the compensation due for the property ence with his use , even if such interference plus the damage caused by severance , was not does not prevent or seriously impair his enjoy- erroneous . State ex rel . Moore v . Bastian , 98 ment of the easement . Canyon View Irriga- Idaho 888 , 575 P . 2d 486 ( 1978) . 7-712 . Damages — Date of accrual . Date for Valuation . tions explicitly directing the jury to deter- In eminent domain action , if error occurred mine value as of the date of the taking. State in the admission of evidence regarding cap- ex rel. Moore v . Bastian , 98 Idaho 888 , 575 italization of annual rentals accruing after P . 2d 486 ( 1978 ) . the time of the taking, it was cured by instruc- 7-718 . Costs . Attorney's Fees . discretion and , as in other areas of the law , An award of reasonable attorneys' fees to such award will be overturned only upon a the condemnee in an eminent domain pro- showing of abuse; the condemnee's costs may ceeding is a matter for the trial court's guided be awarded under I . R. C . P . 54 ( d )( 1 )(C ) or Idaho Code A - 3b 1 l _— c es 1 1 I # L1 I C • 0 N. \ \, \ \ \ I .- 1 \ - ir-A \. A - 2b STEIN PROPERTY 1 ) Beginning at a point 644 . 45 feet N 89 ° 20 ' 44 " E ( Formerly East ) o f the center of Section 17 , T . 18N . , R . 3E . , B . M . , Valley County , Idaho ; Thence N 48 ° E 100 . 00 feet to a point on the west bank of the North Fork of the Payette River , said point being the southeast property corner described by Instrument No . 112650 , said point being the True Point of Beginning of easement ; thence S 89 20 ' 44 " W 39 . 16 feet to a point ; thence N 40 ° 27 ' 57 " W 51 . 89 feet to a point ; thence N 49 ° 32 ' 03 " E 100 . 00 feet to a point ; thence S 40 ° 27 ' 57 " E 88 . 02 feet more or less where said easement intersects the property line of said property ; thence along said property line S 56 28 ' . 48 " W 72 . 53 feet more or less to the True Point of Beginning . Said easement being a construction easement . 2 ) Beginning at the True Point of Beginning described above ; thence N 400 27 ' 57 " W 40 . 00 feet to a point ; thence N 49 ° 32 ' 03 " E 44 . 00 feet to a point ; thence S 40 ° 27 ' 57 " E 45 . 36 feet more or less where said line intersects the property line of said property ; thence along said property line S 56 28 ' 48 " W 44 . 32 feet more or less to the True Point of Beginning . Said easement being a permanent easement . 3 ) Beginning at a point 644 . 45 feet N 89 ° 20 ' 44 " E of the center of said Section 17 ; thence N 48 ° E 100 . 00 feet ; thence N 9 ° 14 ' 06 " E 38 . 68 feet to the True Point of Beginning of easement ; thence . along the centerline of sewer , with a permanent easement of 10 feet left and 10 feet right and a construction easement of 25 feet left and 25 feet right of said centerline , N 829 14 ' 45 " W 202 . 12 feet , more or less where said easement intersects the property line of said property . 4 ) Beginning at a point on the north - south 4 section line of said Section 17 , said point being 216 . 56 feet N 00 ° 20 ' 15 " W from the center of said Section 17 , said point being the True Point of Beginning of 'easement ; thence along said north - south section line N 00 20 ' 15 " W 19 . 67 feet to a point ; thence S 89 ° 14 ' 45 " E 438 . 66 feet more o r less where said line intersects the property line of said property ; thence along said property line S 80 ° 00 ' W 16 . 90 feet to a property corner ; thence along the property line N 84 ° 12 ' W 420 . 05 feet more o r less to the True Point of Beginning . Said easement being a construction easement . Legal Description Easement A - lb STEIN PROPERTY EASEMENT FOR GENERATOR BUILDING Beginning at the center of Section 17 , T . 18N . , R . 3E . , B . M . , Valley County , Idaho ; thence N 89° 20 ' 44 " E • 644 . 45 feet to a point ; thence N 43° E 100 . 00 feet to a point on the west bank of the North Fork of the Payette River ; thence S 89° 20 ' 44 " W 200 . 00 feet to a point ; thence N 00° 20 ' 15 " W 120 . 00 feet to the TRUE POINT OF BEGINNING ; thence S 82° 14 ' 45 " E 54 . 00 feet ; thence S 7 ° 45 ' 15 " W 41 . 25 feet ; thence N 82° 14 ' 45 " W 48 . 63 feet more - or - less where said line intersects the property line ; thence along said property line N 00° 20 ' 15 " W 41 . 59 feet to the TRUE POINT OF BEGINNING . Said easement being a permanent easement . Legal Description For Generator Building A � 1c MI OH. \• �` \o x ��P Cld 300' 6M 00 'sod 2400' 3000' ..... o o ixFy . W - a HAYES ST ` rl z HAYES Sj l J en 1 �_i)11 l/i All 1 fffsr_ tf • 'f 114 / i ,moo \ \\� _ � ;4A ?. I::::-:„ , \, ,.war 1 , F D x . ub/ic —� - 3' > > -L3 � LAKE SIDE AVE.AVE Beach Z \ \ N Lij X ,1 W. LAKE ' _- . ry1 ` RIVER d ST, // "` ` z // / °■ o E. LAKE O On,. R T �_�—� 1 Emil. r Er J �, C/RCFATfR Sr T. ■ N 1 '5u1l _ ituS3111.1 �` - x �y Wf BURNS 0 °1 HOSP " ' a PARK S7REE1 iz PINEDALE ST. FOREST► - 11ST. I Pao C. �P�NE1 Ro de +1 IE^ rlI � � c Z J s.9 \\ NATO-CRY` -' 1/• / / \ � IDAHO ST o IFk m :LC* . ? Art WN^., ` G`Z` ` � \ Qoo S\ GENA `NAY FRN`c ..N.. \ - YaR10 VISTA BLV �, AMAIy 0 \ m RP I School II ST0 � ANOq WAY MAtHE� ? *0 ."" ' \ill 7 8 N /82 /7 OR, , -- �\ / y� 1 / 7 /6 STIBNITE o ,74 t RIO VISTA BLVD. /oard G/ r ' S / t l I 9 BLVD. CMCME Z , 0 �Ein CE WAY \II CZ" 4 / in - - t f - _ i ' / CEMETERY L 11I K\\___ _ _, 43__ ___ i..N_„ --„/.. -, -, a--i,_-_--I/-- zt. e — _ _ _ ► I _ v wl 1 ,A RIO V ,5 iii � � I� � „ a '� � i a ,��c. /` G Wn _ _ AM \\ I //� (t QP � , l --L_ i \ I A I I j) - /, O � % „ z // 11 II — _ _ _\ fi iJ `11 \\i . ; I _ � II I� - \toss J /// �� / - /// (a)rr-----::-----------f-3/4.N.-e-ee--e-N"%..t.j. � ' ° ' /9 20 o���o v�F \\` ; _ = Location Map A - 4 e /�: QUALIFICATIONS OF DAVID S . PIFARI , M . A . I . Educational Background B . B . A . Finance , Boise State University Real Estate Courses Completed : Fundamentals of Real Estate , Boise State University , 1971 Appraisal of Real Estate , Boise State University , 1971 Real Estate Finance , Boise State University , 1972 American Institute of Real Estate Appraisers , Course VIII , 1975 American Institute of Real Estate Appraisers , Exam 1 - A , March , 1979 Income Capitalization Seminar , 1979 Capitalization Theory & Techniques , 1979 , challenged 1 - B exam , March , 1980 Condominium Valuation Seminar , 1979 Case Studies in Real Estate Valuation , 1980 Litigation / Valuation , 1981 Standards of Professional Practice , 1981 Related Work Experience - Two years construction with Hardee Construction - Eight months as cost estimator for Boise Cascade Corporation - Three years with United First Federal Savings & Loan Association of Boise as loan officer , chief appraiser , and branch manager - Fee appraiser since April , 1978 Professional Designation M . A . I . - Member of the American Institute of Real Estate Appraisers , December , 1982 . Court Testimony Qualified as expert witness , Fourth Judicial Court , State of Idaho , 1978 , 1980 The American Institute of Real Estate Appraisers conducts a voluntary program of continuing education for its designated members . M . A . I . ' s and R . M . ' s who meet the minimum standards of this program are awarded periodic educational certification . I am certified under this program through December 31 , 1985 . A - 5