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HomeMy WebLinkAbout- City of Port Orchard - Contract Limited Restricted AppraisalAppntrsAl Gnoup On Tsn NonrHwEST LLP for Larry Bailey Association of Washington Cities Property Insurance Pool 1076 Franklin Street SE Olympia, WA 98501-1346 by Jerry C. Sidwello Appraiser Appraisal Group of the Northwest LLP 1980 llzth Avenue NE, Suite 270 Bellevue, WA 98004 Limited Restricted Appraisal of Port Orchard Library Building Located at 87 Sidney Street Port Orchard, WA 98366 c-1936A AppnaISAL GnOup OF THE NONTHWEST LLP Central Park Building 1980 112tn Ave. N.E.o Suite 270 Bellevue, WA 98004-2940 (42s) 4s3-9292 (800) 4s3-4408 FAX: (425) 455-9740 E-Mail: agnw@ix.netcom.com June 8,2001 Larry Bailey Association of Washington Cities Property Insurance Pool 1076 Franklin Street SE Olympia, WA 98501-1346 Re: Replacement cost of the Port Orchard library located at 87 Sidney Street, Port Orchard, Washington under ECS-XL project number 0108-6021. Dear Mr. Bailey: In accordance with your request, the undersigned has completed an appraisal, in a restricted report format, of the replacement cost of the building, the subject property, referenced above. The most pertinent data gathered and the techniques of valuation are set forth in this report. This appraisal report is intended to comply with the Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal Foundation. Based upon an inspection of the property, and the analysis of cost data, it is concluded that the current replacement cost of the subject building, effective June l, 2001, is: SrvnN HuNonnn TwBNrv Ftvn TnousaNo Dor,r,.lns $725,000 Thank you for the opportunity to be of service. If you have any questions regarding this appraisal, please feel free to contact us. Sincerely, J C. Sidwell Certified General R.E. Appraiser, WA 27011 SI-DW-EJ-C498CQ JCS jcs c-1936A APPRAISAL GROUP ON TUT NORTHWEST LLP Page I This is a restricted appraisal report that is intended to comply with the reporting requirements set forth under Standards Rule 2-2(c) of the Uniform Standards of Professional Appraisal Practice for a restricted appraisal report. As such, it does not present discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained in the appraiser's files. The depth of discussion contained in this report is specific to the sole needs of the client and for the specific intended use stated below. The appraiser is not responsible for unauthorized use of this report. Furthermore, in accordance with prior agreement between the client and the appraiser, this report is the result of a limited appraisal process in that certain allowable departures from specific guidelines of the Uniform Standards of Professional Appraisal Practice were invoked, inasmuch as this report provides the current replacement cost of the improvements only. The intended user of this report is warned that the reliability of the value conclusion provided may be impacted to the degree there is departure from specific guidelines of USPAP. CLIENT:Mr. Larry Bailey Association of Washington Cities Property Insurance Pool 1076 Franklin Street SE Olympia, WA 98501-1346 APPRAISERS: Jerry C. Sidwell Appraisal Group of the Northwest LLP 1980 l l2th Avenue NE, Suite 270 Bellevue, WA 98004 SUBJECT:Port Orchard Library building 87 Sidney Street Port Orchard, WA 98366 REAL ESTATE APPRAISED The building (Port Orchard library) located at 87 Sidney Street, Port Orchard, WA. OSTENSIBLE OWNER City of Port Orchard PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the replacement cost of the subject building. c-t936A APPRAISAI., GROTJP OR.I.UN NOR.I.HWEST LLP Page2 INTENDED USE OF REPORT The replacement cost conclusion will be used by Larry Bailey on behalf of the Association of Washington Cities Property Insurance Pool, the client, for insurance purposes under ECS- XL project number 0108-6021. INTEREST VALUED Replacement cost of the building EFFECTIVE DATE OF VALUE June I ,200I DATE OF REPORT June 1,2001 PROPERTY DESCRIPTION The following is a summary of the information obtained by the appraiser at the time of inspection. c-1936A APPRAISAL GROUP OF THE NORTHWEST LLP Page 3 LIBRARY 87 Sidney Port 0rchard . ,.., .! Location Number:Library Construction Masonry Year Built:1960 Number of Floors:I Above Ground SF:8,847 Perimeter Msmt.:378 Basement SF:0 Walls Roof Structural:Block/Poured Structural:Wood Exterior Finish:Stucco/Concrete/Non-Standard Decking:Wood Interior Finish:Painted Plaster/Drywall Surface Hot Tar lnterior Finish:Acoustic tile/Non- Standard Floorine Carpet Sprinkler System:None HVAC:Forced air Coverage:004 c-1936A APPRAISAL GROUP OR'IUC NORTHWEST LLP Page 4 SUBJECT PHOTOS Looking South at Old Portion of the Library Looking Southwest at New Portion of Library c-r936A Appnnrs,lr- Gnoup oF THE NonrHwrsr LLP Page 5 SUBJECT PHOTOS Looking North - Old Portion to Left & New Portion to Riglrt Interior of Old Portion of Library - Near Entrance c-1 936A AppRArsAr- GRottp olr'l'HE NORTHwES'r t,LP Page 6 SUBJECT PHOTOS Interior of Old Portion of Library Interior of New Portion of Library c-19364 APPRAISAL GROuP OP TUB NORTHWEST LLP Page 7 APPRAISAL DEVELOPMENT AND REPORTING PROCESS There are three distinct approaches to valuing property: the cost approach, the sales comparison approach, and the income capitahzation approach. Depending on the type of property and the data available, one or more of these approaches are used in any valuation assignment. In this appraisal, the replacement cost of the building is the only value requested by the client, and therefore no land value is required, so none of these methods are then used in their entirety. The estimation of the cost of the improvements (building) is derived by using a nationally recognized cost reporting authority. VALUATION Replacement Cost of Building The replacement cost is the current cost to construct improvements of equivalent utility (as opposed to reproduction cost, which is the cost to make an exact replica). The source used for estimating the replacement costs of the subject's improvements is the Marshall Valuation Service Manual, by Marshall and Swift, a nationally recognized cost reporting authority. The estimates include labor, materials, supervision, contractor's profit and overhead, architect's fees, normal site preparation, utilities from structure to lot line, sales taxes, interim interest on normal financing, and insurance; as well as multipliers to compensate for differing costs in different regions. Not included is a provision for developer's gross margin, which is the profit to the developer for his time, effort, risk, and skill in bringing the project to a successful completion. Consideration has been given to all the building characteristics and adjustments have been made accordingly. According to information from this manual, the replacement cost of the subject is: $725,000 Depreciation and Obsolescence The subject property is being considered as replacement structure, with similar utility and with current costs and materials, and thus would not have any depreciation nor any functional or economic obsolescence. c-19364 AppRArsAL GRoup or Tun NoRTHwEST LLP Page 8 ASSUMPTIONS & LIMITING CONDITIONS 1. The enclosed valuation is of replacement cost only for structures with similar utility using current technology. 2. This valuation is prepared from an onsite inspection by the appraiser and information by a city representative. The information furnished by others is assumed to be reliable. 3. It is assumed that the existing structure could be replaced with a similar structure on-site according to current zone and code restrictions. All required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. The property conforrts to all applicable zoning and use regulations and restrictions. The use of the land and improvements is within the boundaries or properfy lines of the property described and there is no encroachment or trespass. 4. A local multiplier for location and type of structure was used. 5. All utilities are assumed to be present and extended to building site. 6. Costs do not include the land, infrastructure, mitigation, permits or financing. 7. Demolition costs and temporary housing costs are not included. Hazardous materials or conditions are not identified nor were cost adjustments made to clean up or remove such materials. 8. No additional value has been place on the structure for historical value. 9. There are no hidden, unapparent conditions of the property, subsoil, or structures that render it more or less valuable. This includes any toxic waste or asbestos insulation that may be present. We take no responsibility for such conditions or for arranging for engineering studies that may be required to discover them. 10. We did not observe any hazardous materials, which may or may not be present, on the property. We have no knowledge of the existence of such materials on or in the property, but am not qualified to detect such substances. The presence of such substances as asbestos, urea-formaldehyde foam insulation, and other potentially hazardous materials may affect the value of the property. The value is estimated under the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for such conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. I 1 . Possession of this report, or a copy thereof does not carry with it the right of publication. c-1936A APPRAISAL GRCIUP OF THE NORTHWEST I,LP Page 9 12. No appraiser, by reason of this appraisal, is required to give further consultation or testimony or to be in attendance in court with reference to the property in question unless prior amangements have been made. 13. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of any appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval ofthe appraiser. 14. Appraisal Group of the Northwest and its associate appraisers and employees assume liability only to the client and only up to the amount of the fee actually received for this assignment. 15. Appraisal Group of the Northwest and its associate appraisers and employees are not responsible for any costs incurred to discover or coffect any deficiency in the property. If a lawsuit is instigated by a lender, partner, part owner in any form of ownership, tenant, or any other party wherein this report is used in evidence; in the disposition of any and all awards, settlements, or cost, regardless of outcome, Appraisal Group of the Northwest and its associate appraisers and employees will be held completely harmless. 16. The forecasts or projections estimates contained herein are based on current market conditions, anticipated short-term supply-and-demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes with future conditions. 17. The Americans with Disabilities Act (ADA) became effective January 26,7992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirernents of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA was not considered in estimating the value of the property. c-1936A APPRAISAT, GROIIp OF'I.HE NORTHWEST LLP Page 10 CERTIFICATION I certify that, to the best of my knowledge and beliefl 1. The statements of fact contained in this 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, impartial, and 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 with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occunence of a subsequent event directly related to the intended use of this appraisal. 7. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 8. I certify that, to the best of my knowledge and belief, the reported 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 Appraisal practice of the Appraisal lnstitute. 9. I, Jerry C. Sidwell, have made a personal inspection of the property that is the subject of this report. 10. No one has provided significant real property appraisal assistance to the person signing this certification. 1 1. The use of this report is subject to the requirements of the Appraisal lnstitute regarding review by its duly authorized representatives. J Date c-19364' C. Sidwell APPRAISAL CROUP OF THE NORTHWBST LLP Page 11 QUALIFICATIONS OF APPRAISER JERRY C. SIDWELL EDUCATION Bachelor of Science in Mechanical Engineering: University of Washington, Seattle, Washington (1980) CONTINUING EDUCATION Appraisal of Partial Acquisitions. IRWA (October, 1998) Highest and Best Use and Market Analysis. Appraisal Institute (April, 1998) Advanced lncome Capitalization. Appraisal lnstitute (May, 1997) General Applications. Appraisal lnstitute (April, 1996) Basic Income Capitalization. Appraisal Institute (February, I99 6) Standards of Professional Practice, Part B. Appraisal lnstitute (September,1994) Standards of Professional Practice, Part A. Appraisal Institute (September,1994) Appraisal Practices. Appraisal Institute (April, 1994) Principles of Real Estate. Bellevue Community College (Winter Quarter, 1994) EXPERIENCE Currently: General Partner, Appraisal Group of the Northwest LLP Formerly: Staff Appraiser, Appraisal Group of the Northwest LLP (1993-1996) Currently certified in Washington State as a General Appraiser (#27 0 - | I - S r-DW-EJ-C4 e 8 CQ) AFFILIATIONS Appraisal Institute - Associate Member International Right of Way Association -- Member CLIENTS SERVED Alderwood Water and Sewer District Bank of Califomia Bricklin & Gendler Central Washington Bank Century Telephone Chevron USA, Inc. Coldwell Banker Relocation Services City of Tacoma Columbia Bank Enumclaw School District Hallmark Mortgage lnterwest Bank Kent School District King County Metro Transit Division Korea Exchange Bank National Mortgage Company O'Rourke, John, Attorney O.R. Colan Associates, lnc. Port Blakely Communities Prudential Relocation Management Puget Sound Energy Reid Middleton, Inc. Shiers Chrey Cox Caulkins DiGiovanni & Zak c-1936A.APPRAISAL Gnoup oF THE NORTHWES.T LLP Qualifications ofJpRRv C. Stowpt-1, Appraiser Page12 Snohomish County Sound Transit Union Bank of California United States Fidelity and Guaranty Co. Universal Field Services Washington Capital Management, Inc. Washington Cities Insurance Authority (wcIA) Washington State Dept. of Transportation Washington State Parks & Recreation Commission Weyerhaeuser Co. c-19364'AppR,AIseL GROUp OF THE NORTHWEST LLP