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Resolution - 2013 - 13-26 - Approving A Professional Valuation Services Agreement For An Appraisal Of Land At Ada/Eagle Sports Complex Park/City & Knipe Janoush Knipe, Llc - 12/10/2013 RESOLUTION NO. 13-26 BY THE COUNCIL: BUTLER, DEFAYETTE, GRASSER, PIERCE A RESOLUTION APPROVING A PROFESSIONAL VALUATION SERVICES AGREEMENT FOR AN APPRAISAL OF LAND AT ADA-EAGLE SPORTS COMPLEX PARK BY AND BETWEEN THE CITY OF EAGLE AND KNIPE JANOUSH KNIPE, LLC, COMMERCIAL REAL ESTATE SERVICES ("KJK"), DOING BUSINESS AS INTEGRA REALTY RESOURCES- BOISE ("IRR BOISE"); AUTHORIZING THE MAYOR AND CITY CLERK TO RESPECTIVELY EXECUTE AND ATTEST SAID AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Eagle desires to have an appraisal of property located at the Ada-Eagle Sports Complex in Ada County, Idaho; and WHEREAS, City of Eagle has annexed approximately 84.91 acres of Ada-Eagle Sports Complex that is currently owned by the County of Ada County, Idaho, and zoned PS (Public/Semipublic); WHEREAS, City of Eagle is interested in the potential purchase in fee simple of said 84.91 acres and the approximate 14.45 acres of land containing the Pump Track/ Jump Line improvements by City that is contiguous to the north of the annexed area, also owned by County of Ada County, Idaho. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF EAGLE, IDAHO: Section 1. That the PROFESSIONAL VALUATION SERVICES CONTRACT, attached hereto and incorporated herein by reference, be, and the same is hereby, approved as to both form and content. Section 2. That the Mayor and City Clerk be, and they hereby are, authorized to respectively execute and attest said PROFESSIONAL VALUATION SERVICES CONTRACT for and on behalf of the City of Eagle, Idaho. Section 3. That this Resolution shall be in full force and effect immediately upon its adoption and approval. ADOPTED by the Council of the City of Eagle, Idaho, this /O day of December, 2013. APPROVED by the Mayor of the City of Eagle, Idaho this /0 day of December, 2013. APPROVED: ATTEST: /,,, , , . aiL.,,,E. ..,„:„ ott000vesz####,,,,,, A i , . k....... L. p.., „..duilio, J es D. Reynolds • `S .• o R A •.•• S1'raron K. Bergmann AYOR c)." V- 'ACI1_Y CLERK . o t2 : I.* s At'4 Integra Realty Resources RiverWalk Center T 208.342.2500 Boise 1661 W.Shoreline Drive,Suite 200 F 208.342.2220 Boise,ID 83702 www.irr.corn irr December 5,2013 Ms.Susan Lynn Mimura Susan Lynn Mimura&Assc. PLLC 3541 E. Copper Point Dr.,Suite 106 Meridian ID 83642 By email:susan @idahoattys.com 208-286-3140 RE: Market Value Appraisal Eagle Bike Park Horseshoe Bend Rd. Eagle,ID Dear Ms. Mimura: This letter is to confirm our agreement to perform professional valuation services for your client on the above captioned property. Based on my understanding I will provide a complete appraisal in a summary format on the above captioned properties in their as is condition. I will provide a complete analysis as necessary to address all valuation issues surrounding the subject properties based on the nature of the appraisal problem and subject to the scope of work description attached. The following conditions will be the basis of a contract agreement between you ("Client") and Knipe Janoush Knipe, LLC,Commercial Real Estate Advisory Services("KJK"),doing business as Integra Realty Resources—Boise(IRR Boise). 1.Scope of Services: Sales comparison approach,or additional approaches as applicable. Should court testimony be required a fee of$350 per hour will be charged for all court preparation, trial preparation,and testimony. 2.Value Definition: Market Value per FIRREA 3.Independent Judgment/Conduct: IRR agrees to exercise independent judgment and to complete the appraisal or consulting assignment Ms.Susan Lynn Mimura Susan Lynn Mimura&Assc. PLLC December 5, 2013 Page 2 in accordance with sound appraisal practice and in conformity with and subject to the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. 4.Payment: Client agrees to pay IRR as compensation for appraisal services,as specified below: Retainer $0 Due upon execution of contract Upon Delivery $4,500 Total fee $4,500 The fee above will include a review of the information provided and interviews with those who may have information that could affect the value indication. The value reported will be subject to the standard assumptions and limiting conditions as included in all work product and any specific or hypothetical assumptions and conditions as deemed necessary to present a credible value opinion. The specific assumptions and hypothetical conditions include valuing the property in fee simple, both as if the existing lease from Ada County to the City of Eagle was vacated and as if the existing lease from Ada County to the City of Eagle was to remain in place.The subject annexed area (84.91 acres) is zoned by the City of Eagle as"PS" designated as "public/semipublic" and the specific assumption that this zoning will never change is included. The zoning of the subject non-annexed,excess 15 acres(approximately) is not currently known. The assignment will include the value of a total 100 acres(approximately)with values reported for the total,for the 84.91 acres currently annexed and for the excess 15 acres (approximately)to include the improved pump track/jump line area contiguous to the north of the annexed area. The report will be delivered to the client in as timely a fashion as is permissible to accomplish the due diligence and analysis necessary to address the valuation issues, anticipated to be within 30 days of the assignment and receipt of all necessary information to start.The appraiser will endeavor to deliver a preliminary conclusion in a brief consulting report by December 10, 2013.AI1 parties understand that time is of the essence. Please have your clients execute this contract and return to me. INTEGRA REALTY RESOURCES—BOISE Local Knowledge Nationally AGREED&ACCEPTED ON .2013. Brad Janoush,MAI, SRA Director AUTHORIZED SIGNATURE ATTACHMENT NAME(PRINT) Ms. Susan Lynn Mimura Susan Lynn Mimura&Assc. PLLC December 5, 2013 Page 3 ATTACHMENT I ASSUMPTIONS&LIMITING CONDITIONS This appraisal is based on the following assumptions,except as otherwise noted in the report. 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions, notwithstanding the Lease Agreement Between Ada County and the City of Eagle for Ada-Eagle Sports Complex, dated August 24th, 2004 (the "Lease"), the Addendum to Lease Agreement Between Ada County and the City of Eagle for Ada-Eagle Sports Complex Concerning Trails Property, dated May 2"d, 2012 (the "Addendum"), and the City of Eagle's easement granting it access to the water tank on the subject property. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property, except that the parties to the Lease (Ada County and the City of Eagle) are at odds regarding the interpretation of the Lease, and Ada County may terminate the Lease as a result. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore,there is no asbestos in the property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal,state and local laws, regulations and codes. 6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal is subject to the following limiting conditions, except as otherwise noted in the report. 1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation,the Internal Revenue Code)are anticipated. 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. Ms.Susan Lynn Mimura Susan Lynn Mimura&Assc. PLLC December 5,2013 Page 4 5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability, and civil, mechanical, electrical,structural and other engineering and environmental matters. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property.The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the person signing the report. 11. Information, estimates and opinions contained in the report and obtained from third-party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 14. No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property;only the real property has been considered. 15. The current purchasing power of the dollar is the basis for the value stated in our appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16. The value found herein is subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. Ms.Susan Lynn Mimura Susan Lynn Mimura&Assc. PLLC December 5,2013 Page 5 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner's financial ability with the cost to cure the non- conforming physical characteristics of a property,a specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 19. The appraisal report is prepared for the exclusive benefit of the Client, its subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property and the person signing the report shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 21. The person signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. We are not qualified to detect such areas and therefore do not guarantee such determinations.The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non- existent or minimal. 22. Integra — Boise is not a building or environmental inspector. Integra - Boise does not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 23. It is expressly acknowledged that in any action which may be brought against Integra Realty Resources — Boise, Integra Realty Resources, Inc. or their respective officers, owners, managers, directors, agents, subcontractors or employees (the "Integra Parties"), arising out of, relating to, or in any way pertaining to this engagement, the appraisal reports, or any estimates or information contained therein, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was Ms.Susan Lynn Mimura Susan Lynn Mimura at Assc. PLLC December 5,2013 Page 6 fraudulent or prepared with gross negligence. It is further acknowledged that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the appraisal report unless the appraisal was fraudulent or prepared with gross negligence. Finally, it is acknowledged that the fees charged herein are in reliance upon the foregoing limitations of liability. 24. Integra — Boise, an independently owned and operated company, has prepared the appraisal for the specific purpose stated elsewhere in the report. The intended use of the appraisal is stated in the General Information section of the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless we provide our prior written consent.We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report(even if their reliance was foreseeable). 25. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews,existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. Integra Realty Resources, Inc. and the undersigned are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 26. All prospective value estimates presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. As will be determined during the course of the assignment, additional extraordinary or hypothetical conditions may be required in order to complete the assignment.The appraisal shall also be subject to those assumptions. As will be determined during the course of the assignment, additional extraordinary or hypothetical conditions may be required in order to complete the assignment. The appraisal shall also be subject to those assumptions.