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HomeMy WebLinkAboutOrdinance No. 187 ORDINANCE /g7 AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO OFFER AN APPRAISED VALUE FOR THREE (3) LAND TRACTS ADJACENT TO FM 423, REQUIRE DEDICATION DEED ON SAME, PAY APPRAISAL COSTS, AND APPROPRIATE FUNDS FROM THE STREET IMPROVEMENT BONDS APPROVED APRIL, 1979; ATTACHING THE APPROVED FORM OF THE DEDICATION AS EXHIBIT "A"; AND APPRAISAL INVOICE AS EXHIBIT "B"; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the City Manager of the City of The Colony, Texas, is hereby authorized to offer an appraised value for: 1. A 0.098 acre tract out of a 4.60 acre parcel of land in the Samuel E. Hayes Survey conveyed to Grace Union Presbytery, Inc,, - $2,500.00 2. A 0.109 acre tract out of a six acre parcel of land in the BBB & CRR Survey conveyed to Marvin E. Kenning,- $11,000.00 3. A 0.048 acre tract out of a 1.40 acre parcel of land in the BBB & CRR Survey conveyed to V. J. Etchieson, - $4,750.00 require that a dedication deed for each purchase be signed and put on file at the County Clerk's Office in Denton County, pay ~~,~ ~O~,~ in the amount of ~ ~ for appraisals on said property; and appropriate funds for these costs from the street improvement bonds approved by a vote of the people April, 1980. The approved form of the dedication deed is attached hereto as Exhibit "A", and appraisal invoice as Exhibit "B", and made a part hereof for such purposes. SECTION 2. This Ordinance shall take effect immediately from and after its passage by the City Council of the City of The Colony, Texas. DULY PASSED BY T~TY COUNCIL OF THE CITY OF THE COLONY, TEXAS, I / ON :/ DAY OF , 981. APPROVED AS TO FO~: ATTEST:  ECRET~RY --'HUNSICKER AND ASSOCIATES REAL ESTATE APPRAISERS CONSULTANTS '718 TWO TURTLE CREEK VIi LACE, DALLAS, TX 75219 · (214t 526 6190 December 2, 1981 Ms. Janice Carroll City of the Colony 5576 N. Colony Boulevard The Colony, TX 75056 Re: V. J. Etchieson Tract Located on W/s ?.M. 423, approximately 600 Feet South of S. Colony Boulevard, The Colony, Texas Proposed Acquisition of 10 Foot Wide Strip for the Widening of F.M. 423 Dear Ms. Carroll: In accordance with your request, I have inspected the above refer- enced property for the purpose of estimating fair Market Value. of the 10 foot wide strip as of November 18, 1981. The strip of land contains 0.048 acre, or 2,070 square feet and is located on the west side of F.M. 423 approximately 600 feet south of S. Colony Boulevard in The Colony, Texas. The tract is legally described as follows: Being a 0.048 acre tract out of a 1.40 acre parcel des- cribed as second parcel in the BBB & CRR Survey Abstract 173 conveyed to V. Jo Etchieson by Joe C. McWilliams, Jr. by deed dated March 26, 1969 and recorded in Volume 623, Page 85, Deed Records of Denton County, Texas, and being more fully described as follows: BEGINNING at a point in ~be existing West right of way of F.M. 423 said point being 45 feet at right angles from Engineer's Centerline Station 579 + 89; THENCE South 0o05'00'' West parallel to and 45 feet from Centerline along the existing West r~ght of way, a dis- tance of 207 feet to a point in the North line of a tract owned by Dick Chaplin; THENCE South 89056'52'' West along said line, a distance of 10.0 feet to a point 55 feet at right angles from Center- line; THENCE North 0o05'00'' East parallel to and 55 feet from Centerline, a distance of 207.00 feet to a point in the North line of the V. J. E~ch~eson tract 539.00 feet North 89056'52'' East from the northwest corner of the second parcel as shown in Volume 62~, Page 85; Ms. Janice Carroll December 2, 1981 Page 2 THENCE North 89°52'52" East along said line 10.0 feet to the Place of Beginning and containing 0.048 acres in the BBB & CRR Survey Abstract 173. The tract consists of a rectangular-shaped parcel containing 2,070 square feet of land with 207 feet of frontage on F.M. 423 and a uniform depth of 10 feet. The only improvements on the tract are two mailboxes and a four-foot high wire mesh fence which will have to be moved. ' After consideration of the factors noted above and following the attached procedures and approaches to value, it is my opinion that the fair market value forthe subject strip of land plus damages is as follows: Land Value $4,140 Damages + 600 Total .~4,740 Rounded to $4,750 Should you have any questions regarding any conclusions or re- quire further consultations, please feel free to contact our office. Yours very truly, HBH/dw SITE PLAN STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report is subject to the following assumptions and limiting conditions and to special assumptions set forth in various sections of the appraisal report. These special assumptions are considered necessary by the appraisers to make a proper estimate of value in accordance with the appraisal assignment and are made a part herein, as though copied in full. 1. It is assumed that title to the property herein appraised is good and merchantable, and is fee simple, unless other- wise specified. 2. The value is reported without regard to questions of title, boundaries, encroachments or any other encumbrances and the appraisers assume no responsibility in connection with such matter. 3. All data used in this appraisal report and the co~nents and conclusions derived therefrom represent the opinions of the appraisers.- The data has been obtained from sources believed to be reliable; however, the accuracy of the data cannot be guaranteed. The appraisers assume no liability for errors in fact, analysis or judgment. 4. Disclosure of the contents of this appraisal report is governed by the By-Laws and Regulations of the American Institute of Real Estate Appraisers of the National Asso- ciation of Real Estate Boards. Possession of this apprai- sal report, or a copy thereof, does not carry with it the right of publication, being made expressly for private use. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers or the firm to which they are connected, or any reference to the American Institute of Real Estate Appraisers or to the MAI or RM designation) shall be dis- seminated to the public through advertising or any other public means of communication without the prior written consent and approval of the undersigned. 5. Without the consent of the appraisers, neither whole nor any part of this appraisal report may be introduced into evidence or used as an exhibit before any State or Fed- eral Court or any agency, County or State, wherein the property is situated. Further, the appraisers are not to be required to give testimony or attendance in court or before any other legal authority by reason of this appraisal without prior agreement or arrangement between the employer and the appraisers. APPRAISAL THE APPRAISAL PROCESS There are three approaches which may be used in the appraisal of real property. These approaches to value include the Cost Approach, the Market Data Approach and the Income Approach. These approaches are defined in Real Estate Appraisal Term- inolo~y, sponsored by the American Institute of Real Estate Appraisers and the Society of Real Estate Appraisers (First Edition, 1981), as follows: The Cost p c a s 1 ch is b~sed r o n o pay no more than the cost of producing a substitute property with the same utility as the subject property. It is particu- larly applicable when the property being appraised involves relatively new improvements which represent the highest and best use of the land or when relativley unique or specialized improvements are located on the site and for which there exigts no comparable properties on the market." The Market Data Approach is "traditionally, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings, the former fix- ing the lower limit of value in static or advancing market (price- wise), and fixing the higher limit of value in a declining market; and the latter fixing the higher limit in any market. It is a process of analyzing sales of similar, recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reliability of this technique is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data, (c) the degree of compara- bility or extent of adjustment necessary for time differences, and (d) the absence of non-typical conditions affecting the sales price. In essence, all approaches to value (particularly when the purpose of the appraisal is to establish market value) are market data ap- proaches since the data inputs are presumably market derived." The .Income Approach is "that procedure in appraisal analysis which converts anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value estimate. The income approach is widely applied to appraising income producing property. Anticipated future income and/or reversions are dis- counted to a present worth figure through the capitalization process." Each of the applicable approaches to value are utilized in this Appraisal Report. From a careful analysis and review of each of these approaches, the approach which most accurately represents all of the facts concerning the subject property and which pro- vides the greatest amount of reliable information is given the most weight in determining the final estimate of value. PROCEDURE AS TO VALUE OF SUBJECT Procedure: The following techniques, methods and analyses are used by the appraiser in o~der to estimate a value for the subject tract: A. Value of Whole Property B. If taking is a Partial TakinK: a. Value of Taking as: 1. Severed land if it has utility 2. Value as proportionate part of Whole if Taking has no self-sustaininK economic value b. Value of Remainder before the Taking c. Value of Remainder after the Taking d. Damages oF Enhancements to the Remainder after Taking (if any) In this appraisal, the V. 3. Etchieson tract contains a total of 1.40 acres, or 60,984 square feet and is improved with a single- family residence. The improvement comprises a 20-year old one-story brick veneer house with a two-story frame extension with composite shingle roof and integral double garage. The property has central heat and air conditioning, and there is a swimminK pool at the rear. The house contains a gross area of 4,496 square feet and com- prises master bedroom with bathroom, 4 bedrooms, 2 bathrooms, livinK room, kitchen, office, gameroom, laundry room, sauna room and sundeck. The property was in a poor to fair condition at the time of the inspection. Highest and Best Use Estimate: Highest and best use is defined in Real Estate Appraisal Term- ~, sponsored by the American Institute of Real Estate Appraisers and the Society of Real Estate Appraisers (Revised Edition, 1981), as: That reasonable and probable use that will support the highest present value, as defined, as of the effective date of the appraisal. Alternatively, that use from among reasonable, probable and legal alternative uses found to be physically pos- sible, 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 recongized 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, un- less and until land value in its highest and best use exceeds the total value of the property in its existing use. Also implied is recognition of that specific use of community environment or to community development goals, in addition to wealth maximiza- tion of individual property owners. The subject property is located on the west side of F.M. 423, which is a major north/south thoroughfare providing access to the City of The Colony. Across the street from the subject is a Stop 'N' Go, and also the northeast corner of F.M. 423 and S. Colony Boulevard is the proposed site of the Griffin Square Shopping Center. Therefore, after considering the desirability and community need for various alternative uses, as well as the site's shape, topography and access, it is the appraiser's opinion that the highest and best use is the use of the site for commer- cial development. This conclusion is substantiated by the two approaches to value; first, that the whole property is appraised according to its existing use, that is, the value of the improvements (by the reproduction cost nmthod) plus the value of land as residential. Second, the whole property is appraised as being unencumbered by any improvements, that is, the land is appraised as ready and available for commercial development. It is noted from the ap- praisal that the value of the land for commercial development is higher than its existing use as residential, and this indicates that the residential use is not tt~e highest an~] best use for the subject. REPRODUCTION COST ESTIMATE The reproduction cost estimate is based upon the cost to repro- duce the subject improvements less depreciation, plus the cur- rent market value of the site. Depreciation is defined in Real Estate Appraisal Terminology, sponsored by the American Insti- tute of Real Estate Appraisers and the Society of Real Estate Appraisers (Revised Edition, 1981), as: A loss of utility and hence value from any cause. An effect caused by deterioration and/or obsolescence. Deterioration or physical depreciation is evidenced by wear and tear, decay, dry rot, cracks, encrustations or structural defects. Obsolescence is divisible into two parts, functional and economic. Functional obsolescence may be due to poor plan, mechanical inadequacy or over- adequacy, functional inadequacy or overadequacy due to size, style, age, etc. It is evidenced by conditions within the property. Economic and/or locational ob- solescence is caused by changes external to the prop- erty, such as neighborhood infiltrations of inharmonious property uses, legislation, etc. It is also the actual decline in market value of the improvements to land from time of purchase to the time of resale. Several methods may be implemented to estimate the reproduction cost of the improvements, such as the cost per square foot method, cost per cubic foot method, or the quantitative survey method. The cost per square foot method is most often used in this area, and for this reason has been selected by the appraiser for use in this appraisal. From the inspection of the subject building and surroundin~ neiMh- borhood, it is the appraiser's opinion that there is a very con- siderable amount of depreciation in the form of economic and fun- tional obsolescence. The subject is generally in poor condition and is a non-conforming use as the highest and best use for this tract of land is for future commercial development. Also, the subject house is inharmonious with the surrounding area as the general neighborhood comprises modern single-family single-story Fox & Jacobs homes. After considering the above factors, it is the appraiser's opinion that the subject has depreciated in the region of 60%. A summary of the reproduction cost estimate is provided; also, these costs and depreciation are presented on the following pages. Reproduction Cost New of Improvements $151,532 Less Depreciation - 90,919 Depreciated Value of Improvements ~ Add Land Value Indicated Value by Cost Approach ~ Rounded to $82,000 REPRODUCTION COST ESTIb~TE Direct Building Costs: House - 4,496 s.f. @ $22.75 Two Fireplaces $102,284 Built-in Appliances 2,275 Swimming Pool 1,710 Paving 3,933 s.f. @ $2.00 9,450 Fencing 7,866 1,505 Current Cost Multiplier Local Multiplier x 0.96 Total Direct Building Costs ...... $133,296 Site Improvements: Site Preparation · $1,500 Landscaping 500 Total Site Improvements + 2,000 Total Direct Reproduction Cost .... $135,296 Indirect Costs: Architect, Legal and Engineerin~ Fees Interim Financing @12% 16,23_66 Total Estimated Reproduction Costs $151,532 Less Depreciation: 60% - 90,919 Total Estimated Cost of Improvements Less Depreciation ........... $ 60,613 Add Land Value (see note below) ~ 2i~00~ Indicated Value by Cost Approach $ 81,613 Rounded to $82,000 Note: Residential land within the City of The Colony has been selling for between $10,000 to $15,000 per acre depend- ing on size, location, availability of utilities, etc. The subject site contains 1.40 acres and is well located on the west side of F.M. 423 and for these reasons, your appraiser has selected a figure of $15,000 per acre, or $21,000 (1.40 acres x $15,000). Say $21~000 MARKET APPROACH TO VALUE Site Value Estimate: In order to arrive at an indication of market value for the subject site as of the date of appraisal, your appraiser has concluded a thorough study of land sales within the subject neighborhood and in the City of The Colony. The market sales, which are considered comparable to the subject site, are listed on the following pages, Comparable No. 1: Location: NEC F.M. 423 and S. Colony Boulevard, The Colony Grantor: Fox & Jacobs, Inc. Grantee: Lincoln Colony, Ltd. Date of Sale: March 26, 1981 Recorded: Volume 1067, Pages 311-315, Deed Records, Denton County, filed on March 27, 1981 Size: 0.867 acre (gross), or 37~767 square feet Zoning: SC - Shopping Center Utilities: Ail available Consideration: $3.00 per square foot Comments: The site is level and clear. Source: Ms. Mar±lyn Putman of Fox& Jacobs, Inc. Comparable No. 2: Location: NE Quadrant F.M. 423 and S. Colony Boulevard, The Colony Grantor: Fox & Jacobs, Inc. Grantee: Wal-Mart Properties, Inc. Date of Sale: March 26, 1981 Recorded: Volume 1067, Pages 305-307, Deed Records, Denton County, filed on March 27, 1981 Size: 6.208 acres gross, or 270,420 square feet Zoning: SC Shopping Center Utilities: All available Consideration: $401,029.50, or $1.48 per square foot Comments: A K-Mart store will be constructed on the site. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 3: Location: E/s F.M. 423, approximately 400 feet north of S. Colony Boulevard, The Colony Grantor: Fox & Jacobs, Inc. Grantee: Lincoln Colony, Ltd. Date of Sale: March 26, 1981 Recorded: Volume 1067, Pages 316-320, Deed Records, Denton County, filed on March 27, 1981 Size: 6.627 acres gross, or 288~672 square feet Zoning: SC - Shopping Center Utilities: All available Consideration: $1.50 p.er square foot Comments: The Griffin Square Shopping Center will be constructed on the site. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 4: Listing Location: SWC F.M. 423 and N. Colony Boulevard, The Colony Size: 6.76 acres, or 294~466 square feet Zoning: SC Shopping Center Utilities: All available Consideration: AskingS2.50 per square foot Conmlents: The site is level and clear. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 5: Listing Location: NWC F.M. 423 and N. Colony Boulevard, The Colony Size: 8.72 acres, or 379~843 square feet Zoning: SC Shopping Center Utilities: Ail available Consideration: Asking $2.50 per square foot Comments: The site is level and clear. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 6: Location: N/s Camey Road, approximately 600 feet east of Paige Road, The Colony Grantor: Sharon Renee Fazlani Grantee: Lake Cities Medical and Surgical Clinics, Associated Date of Sale: September 4, 1981 Recorded: Volume 1099, Pages 539-541, Deed Records, Denton County, filed on September 18, 1981 Size: 0.499 acre, or 21~736 square feet Zoning: NS - Neighborhood Services Utilities: Water only Consideration: $55,000, or $2.53 per square foot Comments: The site is level and partly wooded. Source: Dr. Fazlani LOCATION MAP - LAND SALES SITE VALUE CONCLUSION A. Value of Whole Property Summary of Land Sales: No Property Site Area Sales Price S.F. Per S.F. 1 NEC F.M. 423 & S. Colony 37,767 $3.00 2 NE Quadrant F.M. 423 & S. Colony 270,420 1.48 3 E/s F.M. 423, 400 ft. north of S. Colony 288,672 1.50 4 SWC F.M. 423 & N. Colony 294,466 2.50 (L) 5 NWC F.M. 423 & N. Colony 379,843 2.50 (L) 6 N/s Camey, 600 it. east of Paige 21,736 2.53 The preceding market sales of nearby properties offer a variety of sizes and locations and, in the appraiser's opinion, offer sufficient comparability to provide a reasonable estimate as to the market value of the subject tract. Each sale has been analyzed on a sale price per square foot basis and generally, small tracts tend to sell for more on a per square foot basis than do larger tracts. Also, sites such as corner parcels or properties with extensive street frontage and good exposure to major thoroughfares tend to sell for more than do parcels with limited street frontage. Other factors which influence values include availability of utilities, topography, site utility, zoning and date of sale. The foregoing comparables represent a variety of sites suitable for commerical development, which range in size from 21,736 square feet (0.499 acre) to 379,843 square feet (8.72 acres) with a sales price range of from $1.48 to $3.00 per square foot. Comparable No. 1 comprises a corner parcel, which is consider- ably smaller than the subject and a downward adjustment will be required when compared with the subject. Comparable No. 2 surrounds Comparable No. 1 and is located just to the north of the subject and will require a slight upward adjustment for time of sale. Comparable No. 3 is located immediately to the north of Comparable No. 2 and will also require a slight upward adjustment for time of sale. Comparable Nos. 4 and 5 are listings for corner parcels and will require a downward adjust- ment for superior location, when compared with the subject. Comparable No. 6 is a recent sale of a 0.499 acre tract located to the east of the subject. For comparison to the subject a downward adjustment will be required to compensate for size. In view of the foregoing and after considering all the factors which influence sales prices such as time, size, topography, site utility, etc., it is the appraiser's opinion that the market value of the whole parcel is $2.00 per square foot, or $121,968 (60,984 s.f. x $2.00). Value of Entire Parcel of Land (say) $121~968 A. Value of Whole Property: The value of the whole property as determined by the Market Approach to Value is $121,968. Value of Whole (say) $121,968 B. a. Value of Taking The value of the taking is the value per square foot multi- plied by the amount of land being acquired. Therefore 2,070 s.f. x $2.00 = $4,140. - ' Value of Taking (say) $4,140 b. Value of Remainder before the Taking This is simply the value of the whole property minus the value of the taking ($121,968 ~ $4,140), which equals $117,828. Value of Remainder'before the Takin~ (say) $117,828 c. Value of Remainder after the Taking The appraiser has considered the Value of the Remainder after the Taking and is of the opinion that the acquisition of the ten foot strip along the frontage is not a damaging influence, and will cause no loss to the remainder of the property. Therefore, considering the use to which the part taken is to be subjected (proposed widening of F.M. 423), the market value of the remainder immediately after the taking is $121,968. Value of Remainder after the Taking (say) $121,96g d. Damages or Enhancements (if any) The only ir~rovments on the subject strip of land are two mail boxes and a four-foot high wire mesh fence and two 15- foot high poles which will have to be moved back. Your ap- praiser contacted Delta Fencing Company in Lewisville re- garding an estimate for the moving of the fence and wooden poles, and the estimate is $400 and $150, respectively. Therefore, the amount of damages is computed as follows: Moving of Fence $400.00 Moving of Mail Boxes (say) 50.00 Moving of Wooden Poles 150.00 Total Amount of Damages ~$600.00 Amount of Damages (say) $600.00 Conclusion: The amount of compensation and damages is determined as follows: Value of Part Taken $4,140 Value of Remainder Before Taking $117,828 Value of Remainder After Taking -~,968 Damages or Enhancement + 600 Total Compensation $4,740 Rounded to $4,750 REAL ESTATE APPRAISAL AND INVESTMENT ~UALIFICATIONS OF HARRY g. HUNSICKER PROFESSIONAL MEmbERSHIPS Member, American Institute of Real Estate Appraisers (No. 4342) Member and Past Director and Executive Vice President, Dallas Apartment Association Member and Past Director, Texas Apartment Association Member, Dallas Board of Realtors Member, Dallas Home and Apartment Builders Member, Self Storage Association of AraerJca APPRAISAL EXPERIENCE Types of Properties Appraised: Warehouses, hospitals, medical centers, apartments, motels, office buildings, retail stores, shopping centers, single purpose industrial property, subdivisions, single family homes; specializing in income properties of all types. The American Institute of Real Estate Appraisers conducts a voluntary program of continuing education for its designated members, b~i's and ~M's who meet the minimum standards of this program are awarded periodic educational certification. I am certified under this program through December 31, 1983. BUSINESS EXPERIENCE Hunsicker & Associates, Real Estate Investments, Dallas, Texas. Presently and since November, 1967, a sole proprietorship appraising throughout the Southwest and develop- ing and managing apartments, shopping centers and office properties in the Central and North Texas area. Chairman, The Colony Bank, The Colony, Texas President, The Colony Municipal Utility District #1 of Denton County, The Colony, Texas Past Chairman (2 years), The Colony Planning & Zoning Commission, The Colony, Texas Director, Human Ecology Research Foundation of the Southwest, Dallas, Texas EDUCATION Oberlin College; BA Degrees - 1952 Harvard University Graduate School of Business, P~A Degree - 1954 Case Institute of Technology; City Planning - 1958 Michigan State University; Case Study Seminar on Income Properties - 1962 Michigan State University; Advanced Case Study Seminar on Income Properties - 1963 HUNSICKER AND ASSOCIATES REAL ESTATE APPRAISERS CONSULTANTS December 2, 1981 Ms. Janice Carroll City of The Colony 5576 N. Colony Boulevard The Colony, Texas 75056 Re: Grace Union Presbytery Inc. Tract located at the SEC F.M. 423 and Nash Drive The Colony, Texas Proposed Acquisition of 10 foot wide strip for the widening of F.M. 423 Dear Ms. Carroll: In accordance with your request, I have inspected the above referenced property for the purpose of estimating fair Mar- ket Value of the 10 foot wide strip as of November 18, 1981. The strip of land contains 0.098 acre or 4,269 square feet and is located at the southeast corner of F.M. 423 and Nash Drive in the Colony, Texas. The tract is legally described as follows: Being a 0.098 acre tract out of:a 4.60 acre parcel of land in the Samuel E. Hayes Survey Abstract 648 conveyed to Grace Union Presbytery, Inc. by Fox & Jacobs, Inc. by deed dated June 26, 1979 and recorded in Volume 967, Page 493, deed records of Denton County, Texas, and being more fully described as fo]lows: BEGINNING at a point in the East right of way line of F.M. 423, said point being in the South right of way of Nash Drive as shown in a plat of The Colony No. 9 and being 45.03 feet North 89° 24' 25" East from Centerline Station 530 + 34.05; THENCE NORTH 89© 24' 25" East along said line a distance of 10.00 feet to a point 55 feet right angles from Center- line, said point being 460.00 feet South 89° 24' 25" West from the northeast corner of the Grace Union Presbytery, Inc. tract; THENCE SOUTH 0© 25' 00" West parallel to and 55 feet from Centerline a distance of 425.18 feet to a point in the South line of said tract; THENCE NORTH 89° 35' 00" West a distance of 10.00 feet to a point in the existing East right of way of F.M. 423; THENCE NORTH 0° 25' 00" East parallel to and 45 feet from Centerline along said existing right of way 425.00 feet to the place of beginning and containing 0.098 acres of land out of the Samuel E. Hayes Survey Abstract 648. The tract consists of a near rectangular-shaped parcel con- taining 4,269 square feet of land with 425.00 feet of front- age of F.M. 423 and a uniform depth of 10 feet. There are no improvements on the tract which would have to be removed. After consideration of the factors noted above and following the attached procedure and approach to value, it is my opin- ion that the fair market value of the subject s~ip of land plus damages (if any) is as follows: Land Value $2,450 Damages or Enhancement -0- Total ~,450 Rounded to $2,500 Should you have any questions regarding any conclusions or require further consultations, please_ feel free to contact our office. Yours ,very truly, Ha ~ #4342 '/ HBH/dw SITE PLAN STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report is subject to the following assumptions and limiting conditions and to special assumptions set forth in various sections of the appraisal report. These special assumptions are considered necessary by the appraisers to make a proper estimate of value in accordance with the appraisal assignment and are made a part herein, as though copied in full. 1. It is assumed that title to the property herein appraised is good and merchantable, and is fee simple, unless other- wise specified. 2. The value is reported without regard to questions of title, boundaries, encroachments or any other encumbrances and the appraisers assume no responsibility in connection with such matter. 3. All data used in this appraisal report and the comments and conclusions derived therefrom represent the opinions of the appraisers.- The data has been obtained from sources believed to be reliable; however, the accuracy of the data cannot be guaranteed. The appraisers assume no liability for errors in fact, analysis or judgment. 4. Disclosure of the contents of this appraisal report is governed by the By-Laws and Regulations of the American Institute of Real Estate Appraisers of the National Asso- ciation of Real Estate Boards. Possession of this apprai- sal report, or a copy thereof, does not carry with it the right of publication, being made expressly for private use. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers or the firm to which they are connected, or any reference to the American Institute of Real Estate Appraisers or to the MAI or RM designation) shall be dis- seminated to the public through advertising or any other public means of communication without the prior written consent and approval of the undersigned. 5. Without the consent of the appraisers, neither whole nor any part of this appraisal report may be introduced into evidence or used as an exhibit before any State or Fed- eral Court or any agency, County or State, wherein the property is situated. Further, the appraisers are not to be required to give testimony or attendance in court or before any other legal authority by reason of this appraisal without prior agreement or arrangement between the employer and the appraisers. APPRAISAL THE APPRAISAL PROCESS There are three approaches which may be used in the appraisal of real property. These approaches to value include the Cost Approach, the Market Data Approach and the Income Approach. These approaches are defined in Real Estate Appraisal Term- inolo~y, sponsored by the American Institute of Real Estate Appraisers and the Society of Real Estate Appraisers (First Edition, 1981), as follows: The Cost Approach is "that approach in appraisal analysis which is based on the proposition that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility as the subject property. It is particu- larly applicable when the property being appraised involves relatively new improvements which represent the highest and best use of the land or when relativley unique orspecialized' · improvements are located on the site and for which there exists no comparable properties on the market." The Market Data Approach is "traditionally, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings, the former fix- ing the lower limit of value in static or advancing market (price- wise), and fixing the higher limit of value in a declining market; and the latter fixing the higher limit in any market. It is a process of analyzing sales of similar, recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reliability of this technique is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data, (c) the degree of compara- bility or extent of adjustment necessary for time differences, and (d) the absence of non-typical conditions affecting the sales price. In essence, all approaches to value (particularly when the purpose of the appraisal is to establish market value) are market data ap- proaches since the data inputs are presumably market derived." The Income Approach is "that procedure in appraisal analysis which converts anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value estimate. The income approach is widely applied to appraising income producing property. Anticipated future income and/or reversions are dis- counted to a present worth figure through the capitalization process." Each of the applicable approaches to value are utilized in this Appraisal Report. From a careful analysis and review of each of these approaches, the approach which most accurately represents all of the facts concerning the subject property and which pro- vides the greatest amount of reliable information is given the most weight in determining the final estimate of value. ~RKET APPROACH TO VALUE Procedures: The following techniques, methods and analyses are used by the appraiser in order to estimate a value for the subject tract: A. Value of Whole Property B. If taking is a Partial Taking: a. Value of Taking as: 1. Severed land if it has utility 2. Value as proportionate part of Whole if Taking has no Self-sustaining Economic Value b. Value of Remainder before the Taking c. Value of Remainder after the Taking d. Damages or Enhancements to the Remainder after Taking (if any) In this appraisal, the Grace Union Presbytery, Inc. tract contains a total of 4.60 acres or 200,376 square feet and there are no improvements on the tract which would have to be removed. Site Value Estimate (as a whole) In order to arrive at an indication of Market Value for the subject site, your appraiser has concluded a thorough study of comparable sites within the subject neighborhood which have recently sold or are offered for sale. Those sales deemed most comparable to the subject tract are documented on the following pages. Comparable No. 1 Location: E/s F.M. 423, approximately 800 feet north of S. Colony Boulevard, The Colony Grantor: Fox & Jacobs, Inc. Grantee: Campbell/Felton Properties Date of Sale: June 12, 1981 Recorded: Volume 1084, Pages 257-260 Deed Records, Denton County, filed on June 23, 1981 Size: 4.968 acres gross Zoning: SC Shopping Center Utilities: Ail available Consideration: $122,316 or $24,621 per acre Comment: The Colony Cable Company have constructed their facility on the site. Source: Ms. Marilyn Putman of Fox & Jacobs Inc. ' Comparable No. 2 Location: N/s S. Colony Boulevard, approxi- mately 625 feet east of F.M. 423, The Colony Grantor: Fox & Jacobs, Inc. Grantee: The American Lutheran Church Date of Sale: August 13, 1981 Recorded: Volume 1095, Pages 756-759 Deed Records, Denton County, filed on August 18, 1981 Size: 9.136 acres Zoning: SC - Shopping Center Utilities: Ail available Consideration: $157,380 or $17,226 per acre Comments: The site is relatively level and clear of improvements. The tract is the future home of the Good Shepherd Lutheran Church. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 3 Location: NWC Anderson Drive and Keys Drive, The Colony Grantor: Fox & Jacobs, Inc. Grantee: Church of Jesus Christ of Latter Day Saints Date of Sale: March 24, 1981 Recorded: Volume 1067, Pa%es 359-360, Deed Records, Denton County, filed on March 27, 1981 Size: 5 acres Zoning: SF - Single family Utilities: Ail Available Consideration: $112,500 or $22,500 per acre Comments: The site is level and clear of improvements. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 4 Location: SWC Paige Road and Kisor Drive, The Colony Grantor: Fox & Jacobs, Inc. Grantee: Kevin L. Seidler Date of Sale: January 13, 1981 Recorded: Volume 1055, Pages 446-449, Deed Records, Denton County, filed on January 15, 1981 Size: 1.838 acres Zoning: 0-1 Office Utilities: All available Consideration: $40,031.64 or $21~780 per acre Comments: The site is level and clear of improvements. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. ~omparable No. 5 Location: SEC Paige Road and Gates Drive, The Colony Grantor: Fox & Jacobs, Inc. Grantee: The Colony Church of Christ Date of Sale: November 30, 1978 Recorded: Volume 926, Pages 475-477, Deed Records, Denton County, filed on December 5, 1978 Size: 3.815 acres Zoning: SP-1 Special Permit for church Utilities: All available Consideration: $66,762.50 or $17,500 per acre Comments: The Colony Church of Christ has been constructed on the site. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 6 Location: NEC Taylor Drive and N. Colony Boulevard, The Colony Grantor: Fox & Jacobs, Inc. Grantee: Denton Baptist Association Date of Sale: March 31, 1980 Recorded: Volume 1011, Pages 216-219, Deed Records, Denton County, filed on April 9, 1980 Size: 5.4685 acres Zoning: NS ~ Neighborhood Services Utilities: Ail available Consideration: $101,216.25 or $18~509 per acr~ Comments: The Colony Park Baptist Church is under construction. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 7 - Listing Location: E/s F.M. 423, % mile south of F.M. 720, Frisco Size: 10 acres Zoning: Unzoned Utilities: Water only Consideration: Asking $25~000 per acr~ Comments: The site is level and clear and is in the process of being purchased by the Catholic Church. Source: Ms. Doris Howard of Century 21 broker LOCATION MAP - LAND SALES SITE VALUE CONCLUSION A. Value of Whole Property Summary of Land Sales: No. Property Site Area Sales Price Acres Per Acre 1 E/s F.M. 423, 800 ft. north of S. Colony 4.968 $24.621 2 N/s S. Colony, 625 ft. east of F.M. 423 9.136 17 226 3 NWC Anderson and Keys 5.000 22 500 4 SWC Paige and Kisor 1.838 21 780 5 SEC Paige and Gates 3.815 17 500 6 NEC Taylor & N. Colony 5.4685 18 509 7 E/s F.M. 423, ~ mile south of F.M. 720 10.000 25,000 (L) The preceding market sales of nearby properties offer a variety of sizes and locations and, in the appraiser's opinion, offer sufficient comparability to provide a reasonable estimate as to the market value of the subject tract. Each sale has been analyzed on a sale price per acre basis and generally, smaller tracts tend to sell for more on a per-acre basis than do larger tracts. Also, sites such as corner parcels or properties with extensive street frontage and good exposure to major thorough- fares tend to sell for more than do parcels with limited street frontage. Other factors which influence values include avail- ability of utilities, topography, site utility zoning and date of~sale. The foregoing comparables represent a variety of sites suitable for a church or commercial development, which range in size from 1.838 acres to 10.000 acres with a sales price range of from $17,226 to $25,000 per acre. Comparable No. 1 is a recent sale of a 4.968 acre tract located on F.M. 423, just to the south of the subject and is considered very comparable. Com- parable No. 2 is located to the east of F.M. 423 on S. Colony Boulevard and the location is considered inferior when compared with the subject and anupward adjustment will be required. Com- parable Nos. 3, 4, 5, and 6 are corner parcels located on side streets within the city as compared with the subject which is located on a main thoroughfare (F.M. 423). Therefore upward ad- justments are required to compensate for location and Comparable No. 5 will also require an upward adjustment for time of sale. Comparable No. 7 is a 10 acre tract located to the north of The Colony and is in the process of being sold to the Catholic Church. In view of the foregoing and after considering all the factors which influence sales prices such as time, size, topography, site ~tility, etc., it is the appraiser's opinion that the mar- ket value of the whole parcel is $25,000 per acre or $115,000 (4.60 acres x $25,000). Value of Whole Property (.say) $115~000 B. a) Value of Taking The value of the taking is the value per acre multiplied by the amount of land being acquired. Therefore 0.098 acre x $25,000 = $2,450. Value of Taking (say) $2,450 b) Value of Remainder before the Taking This is simply the value of the whole property minus the value of the taking ($115,000 - $2,450) which equals $112,550. Value of Remainder before the Taking (say) $112~550 c) Value of Remainder after the TakinE The appraiser has considered the Value of the Remainder after the Taking and is of the opinion that the acquisition of the ten foot strip along the frontage is not a damagin% influence, and will cause no loss to the remainder of the property. There- fore, considering the use to which the part taken is to be subjected (proposed widening of F.M. 423), the market value of the remainder immediately after the taking is $115,000. Value of Remainder after the Taking $115,000 d) Damages or Enhancements (if any) There are no improvements on the subject strip of land such as fences, etc., which have to be moved and the whole property has reasonable depth so that the acquisition of the ten foot strip along the frontage will neither damage or enhance the remainder. Therefore, it is the appraiser's opinion that the amount of damages is zero. Conclusion The amount of compensation is determined as follows: Value of Part Taken: $2,450 Value of Remainder Before Taking $112,550 Value of Remainder After Taking '~115,000 Damages or Enhancement: -0- Total Compensation: ~2,450 Rounded to $2,500 REAL ESTATE APPRAISAL AND INVESTMENT QUALIFICATIONS OF HARRY B. HUNSICKER PROFESSIONAL MEMBERSHIPS Member, American Institute of Real Estate Appraisers (No. 4342) Member and Past Director and Executive Vice President, Dallas Apartment Association Member and Past Director, Texas Apartment Association Member, Dallas Board of Realtors M~mtar, Dallas Home and Apartment Builders Member, Self Storage Association of America APPRAISAL EXPERIENCE Types of Properties Appraised: Warehouses, hospitals, medical centers, apartments, motels, office buildings, retail stores, shopping centers, single purpose industrial property, subdivisions, single family homes; specializing in income properties of all types. The American Institute of Real Estate Appraisers conducts a voluntary program of continuing education for its designated members. MAI's and RM's who meet the minimum standards of this program are awarded periodic educational certification. I am certified under this program through December 31, 1983. BUSINESS EXPERIENCE Hunsicker & Associates, Real Estate Investments, Dallas, Texas. Presently and since November, 1967, a sole proprietorship appraising throughout the Southwest and develop- ing and managing apartments, shopping centers and office properties in the Central and North Texas area. Chairman, The Colony Bank, The Colony, Texas President, The Colony Municipal Utility District #1 of Denton County, The Colony, Texas Past Chairman (2 years), The Colony Planning & Zoning Commission, The Colony, Texas Director, Human Ecology Research Foundation of the Southwest, Dallas, Texas EDUCATION Oberlin College; BA Degrees - 1952 Harvard University Graduate School of Business, MBA Degree - 1954 Case Institute of Technology; City Planning - 1958 Michigan State University; Case Study Seminar on Income Properties - 1962 Michigan State University; Advanced Case Study Seminar on income Properties - 1963 I-IUNSICKER AND ASSOCIATES REAL ESTATE APPRAISERS CONSULTANTS December 2, 1981 Ms. Janice Carroll City of The Colony 5576 N. Colony Boulevard The Colony, Texas 75056 Re: Marvin E. Kenning Tract located on W/s F.M. 423, approximately 850 feet south of S. Colony Boulevard The Colony, Texas Proposed Acquisition of 10 foot wide strip for the widening of F.M. 423 Dear Ms. Carroll: In accordance with your request, I have inspected the above referenced property for the purpose of estimating fair Market Value of the 10 foot wide strip as of November 18, 1981. The strip of land contains 0.]09 acre, or 4,761 square feet and is located on the west side of F.M. 423 approximately 850 feet south of S. Colony Boulevard in The Colony, Texas. The tract is legally described as follows: Being a 0.109 acre tract out of ~ 6 acre parcel of land in the EBB & CRR Survey Abstract 173 conveyed to Marvin E. Kenning by Nelson Griffin by deed dated May 24, 1963 and recorded in Volume 494, page 536, deed records of Denton County, Texas, and being more fully described as follows: BEGINNING at a point in the ex~sting West right of way of F.M. 423, said point bei~g 45 feet at ri¢.ht angles from Station 582 + 10, and being in the South line of a 14 feet x 275.75 feet strip of ]and owned by Dick Chaplin; THENCE SOUTH 0° 05' 00" West parallel to and 45 feet from Centerline, along said existing r~ght of way 476.10 feet to a point in the South line of the KenninK tract; THENCE SOUTH 89© 56' 52" West along said line a distance of 10.0 feet to a point 55 feet at right ankles from Center- line, said point being 535.50 feet North 89° 56' 52" East from Southwest corner of the Kenning tract; THENCE NORTH 0° 05' 00" East parallel to and 55 feet from Centerline, a distance of 476.10 feet to the north Line of said tract; THENCE NORTH 89° 56' 52" East a distance of 10.00 feet to the place of beginning and containing 0.109 acres in the BBB & CRR Survey Abstract 173. ~le tract consists of a rectangular-shaped parcel containing 4,761 square feet of land with 476.10 feet of frontage on F.M. 423 and a uniform depth of 10 feet. The only improvements on the tract are The Colony Realtor sign utility pole and mail box, which will have to be removed. ' After consideration of the factors noted above and following the attached procedure and approach to value, it is my opinion that the fair market value of the subject strip of land plus damages is as follows: Land Value: $10,712 Damages: 225 Total: $10,937 RoUnded to $11,000 Should you have any questions regarding any conclusions or require further consultations, please feel free to conts_ct our office. Yours,very truly, H { M. A. ~,~ #4342 HBH:ds SITE PLAN STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report is subject to the following assumptions and limiting conditions and to special assumptions set forth in various sections of the appraisal report. These special assumptions are considered necessary by the appraisers to make a proper estimate of value in accordance with the appraisal assignment and are made a part herein, as though copied in full. It is assumed that title to the property herein appraised is good and merchantable, and is fee simple, unless other- wise specified. 2. The value is reported without regard to questions of title, boundaries, encroachments or any other encumbrances and the appraisers assume no responsibility in connection with such matter. 3. All data used in this appraisal report and the comments and conclusions derived therefrom represent the opinions of the appraisers.- The data has been obtained from sources believed to be reliable; however, the accuracy of the data cannot be guaranteed. The appraisers assume no liability for errors in fact, analysis or judgment. 4. Disclosure of the contents of this appraisal report is governed by the By-Laws and Regulations of the American Institute of Real Estate Appraisers of the National Asso- ciation of Real Estate Boards. Possession of this apprai- sal report, or a copy thereof, does not carry with it the right of publication, being made expressly for private use. Neither all nor any part of the contents of this report ' (especially any conclusions as to value, the identity of the appraisers or the firm to which they are connected, or any reference to the American Institute of Real Estate Appraisers or to the MAI or RM designation) shall be dis- seminated to the public through advertising or any other public means of communication without the prior written consent and approval of the undersigned. 5. Without the consent of the appraisers, neither whole nor any part of this appraisal report may be introduced into evidence or used as an exhibit before any State or Fed- eral Court or any agency, County or State, wherein the property is situated. Further, the appraisers are not to be required to give testimony or attendance in court or before any other legal authority by reason of this appraisal without prior agreement or arrangement between the employer and the appraisers. APPRAISAL THE APPRAISAL PROCESS There are three approaches which may be used in the appraisal of real property. These approaches to value include the Cost Approach, the Market Data Approach and the Income Approach. These approaches are defined in Real Estate Appraisal Term- lnolosy, sponsored by the American Institute of Real Estate Appraisers and the Society of Real Estate Appraisers (First Edition, 1981), as follows: The Cost Approach is "that approach in appraisal analysis which is based on the proposition that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility as the subject property. It is particu- larly applicable when the property being appraised involves relatively new improvements which represent the highest and best use of the land or when relativley unique or specialized improvements are located on the site and for which there exists no comparable properties on the market." The Market Data Approach is "traditionally, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings, the former fix- ing the lower limit of value in static or advancing market (price- wise), and fixing the higher limit of value in a declining market; and the latter fixing the higher limit in any market. It is a process of analyzing sales of similar, recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reliability of this technique is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data, (c) the degree of compara- bility or extent of adjustment necessary for time differences, and (d) the absence of non-typical conditions affecting the sales price. In essence, all approaches to value (particularly when the purpose of the appraisal is to establish market value) are market data ap- proaches since the data inputs are presumably market derived." The ~ncome Approach is "that procedure in appraisal analysis which converts anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value estimate. The income approach is widely applied to appraising income producing property. Anticipated future income and/or reversions are dis- counted to a present worth figure through the capitalization process." Each of the applicable approaches to value are utilized in this Appraisal Report. From a careful analysis and review of each of these approaches, the approach which most accurately represents all of the facts concerning the subject property and which pro- vides the greatest amount of reliable information is given the most weight in determining the final estimate of value. MARKET APPROACH TO VALUE Procedure: The following techniques, methods and analyses are used by the appraiser in order to estimate a value for the subject tract: A. Value of Whole Property B. If taking is a Partial Taking: a. Value of Taking as: 1. Severed land if it has utility 2. Value as proportionate part of Whole if Taking has no Self-sustaining Economic Value b. Value of Remainder before the Taking c. Value of Remainder after the Taking d. Damages or Enhancements to the Remainder after taking (if any). In this appraisal, the Marvin E. Kenning tract contains a total area of 6 acres or 261,360 square feet and the only improvements on the tract are a portable office building, a lean-to metal building which has been partly damaged by the recent storms and are considered of nominal value. Your appraiser considers the value of the property to lie in the land value and therefore, the appraisal of the whole is consider- ed on this basis. Also the eastern portion of the site (476.10 feet x 146.0 feet = 69,511 square feet), which is level and at street grade is considerably more valuable than the western portion (191,849 square feet), which slopes away toward the lake. Site Value Estimate (as a whole) In order to arrive at an indication of Market Value for the subject site, your appraiser has concluded a thorough study of comparable sites within the subject neighborhood which have recently sold or are offered for sale. Those sales deemed most comparable to the subject tract are documented on the following pages. Comparable No. 1: Location: NEC F.M. 423 and S. Colony Boulevard, The Colony Grantor: Fox & Jacobs, Inc. Grantee: Lincoln Colony, Ltd. Date of Sale: March 26, 1981 Recorded: Volume 1067, Pages 311-315, Deed Records, Denton County, filed on March 27, 1981 Size: 0.867 acre (gross), or 37~767 square feet Zoning: SC - Shopping Center Utilities: All available Consideration: $3.00 per square foot Comments: The site is level and clear. Source: Ms. Marilyn Putman of Fox& Jacobs, Inc. Comparable No. 2: Location: NE Quadrant F.M. 423 and S. Colony Boulevard, The Colony Grantor: Fox & Jacobs, Inc. Grantee: Wal-Mart Properties, Inc. Date of Sale: March 26, 1981 Recorded: Volume 1067, Pages 305-307, Deed Records, Denton County, filed on March 27, 1981 Size: 6.208 acres gross, or 270~420 square feet Zoning: SC - Shopping Center Utilities: Ail available Consideration: $401,029.50, or $1.48 per square foot Comments: A K-Mart store will be constructed on the site. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 3: Location: E/s F.M. 423, approximately 400 feet north of S. Colony Boulevard, The Colony Grantor: Fox & Jacobs, Inc. Grantee: Lincoln Colony, Ltd. Date of Sale: March 26, 1981 Recorded: Volume 1067, Pages 316-320, Deed Records, Denton County, filed on March 27, 1981 Size: 6.627 acres gross, or 288,672 square feet Zoning: SC - Shopping Center Utilities: Ail available Consideration: $1.50 per square foot Comments: The Griffin Square Shopping Center will be constructed on the site. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 4: Listing Location: SWC F.M. 423 and N. Colony Boulevard, The Colony Size: 6.76 acres, or 294,466 square feet Zoning: . SC - Shopping Center Utilities: Ail available Consideration: Asking $2.50 per square foot Comments: The site is level and clear. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. ~omparable No. 5: Listing Location: NWC F.M. 423 and N. Colony Boulevard The Colony Size: 8.72 acres, or 37_~9 843 square fee~ Zoning: SC - Shopping Center Utilities: Ail available Consideration: Asking $2.50 per square foot Comments: The site is level and clear. Source: Ms. Marilyn Putman of Fox & Jacobs, Inc. Comparable No. 6: Location: N/s Camey Road, approximately 600 feet east of Paige Road, The Colony Grantor: Sharon Renee Fazlani Grantee: Lake Cities Medical and Surgical Clinics, Associated Date of Sale: September 4, 1981 Recorded: Volume 1099, Pages 539-541, Deed Records, Denton County, filed on September 18, 1981 Size: 0.499 acre, or 21~736 square feet Zoning: NS - Neighborhood Services Utilities: Water only Consideration: $55,000, or $2.53 per square foot Comments: The site is level and partly wooded. Source: Dr. Fazlani LOCATION MAP - LAND SALES SITE VALUE CONCLUSION A. Value of Whole Property Summary of Land Sales: No. Property Site Area Sales Price S.F. Per S.F. 1 NEC F.M. 423 & S. Colony 37,767 $3.00 2 NE Quadrant F.M. 423 & S. Colony 270,420 1.48 3 E/m F.M. 423, 400 ft. north of S. Colony 288,672 1.50 4 SWC F.M. 423 & N. Colony 294,466 2.50 (L) 5 NWC F.M. 423 & N. Colony 379,843 2.50 (L) 6 N/s Camey, 600 ft. east of Paige 21,736 2.53 The preceding market sales of nearby properties offer a variety of sizes and locations and, in the appraiser's opinion, offer sufficient comparability to provide a reasonable estimate as to the market value of the subject tract. Each sale has been analyzed on a sale price per square foot basis and generally, small tracts tend to sell for more on a per square foot basis than do larger tracts. Also, sites such as corner parcels or properties with extensive street frontage and good exposure to major thoroughfares tend to sell £or more than do parcels with limited street frontage. Other factors which influence values include availability of utilities, topography, site utility, zoning and date of sale. The foregoing comparables represent a variety of sites suitable for commerical development, which range in size from 21,736 square feet (0.499 acre) to 379,843 square feet (8.72 acres) with a sales price range of from $1.48 to $3.00 per square foot. Comparable No. 1 comprises a corner parcel, which is consider- ably smaller than the subject and a downward adjustment will be required when compared with the subject. Comparable No. 2 surrounds Comparable No. 1 and is located just to the north of the subject and will require a slight upward adjustment for time of sale. Comparable No. 3 is located immediately to the north of Comparable No. 2 and will also require a slight upward adjustment for time of sale. Comparable Nos. 4 and 5 are listings for corner parcels and will require a downward adjust- ment for superior location, when compared with the subject. Comparable No. 6 is a recent sale of a 0.499 acre tract located to the east of the subject. For comparison to the subject a downward adjustment will be required to compensate for size. In view of the foregoing and after considering all the factors which influence sales prices such as time, size, topography, site utility, etc, it is the appraiser's opinion that the market value of the eastern portion is $2.25 per square foot, or $156,400 (69,511 s.f. x $2.25). Your appraiser considers that the western portion is worth considerably less than the eastern portion as it slopes toward the lake; therefore, a value of $0.75 per square foot, or $143,887 (191,849 s.f. x $0.75) is allocated to this area. A summary of the market value of the whole parcel is as follows: 69,511 s.f. (eastern portion) x $2.25 = $156,400 191,849 s.f. (western portion) x $0.75 = $143,887 Total $300,287 Value of Whole Property (say) $300~287 B. a) Value of Taking The value of the taking is the value per square foot multiplied by the amount of land being acquired. Therefore, 4 761 square feet x $2.25 = $10,712. , Value of Taking (say) $10~7]? b) Value of Remainder before the Takin~ This is simply the value of the whole property minus the value of the taking ($300,287 - $10,712) which equals $289,575. Value of Remainder before the Taking (say) $289,5/5 c) Value of Remainder after the Taking The appraiser has considered the Value of the Remainder after the Taking and is of the opinion that the acquisition of the ten foot strip along the frontage is not a damaging influence, and will cause no loss to the remainder of the property. Therefore considering the use to which the part taken is to be subjected (proposed widening of F.M. 423) the market value of the remainder immediately after the taking is $300,287. Value of Remainder after the Taking.(say) $300,287 d) Damages or Enhancements (if any) The only improvements on the subject strip of land are a mail box, utility pole and an identification sign for the attorney and realtor's office which will have to be moved back. Your appraiser contacted Roger Signs in Lewisville regarding an estimate for the moving of the sign and utility pole and the estimate is $200. Therefore the amot~nt of damages is computed as follows: Moving of Sign $125~00 Moving of Mail Box (say) 25.00 Moving of Utility Pole 75.00 Total Amount of Damages ~ Amount of Damages (sa)yJ~_225.00 Conclusion: The amount of compensmtion and damages is determined as follows: Value of Part Taken $10,712 Value of Remainder Before Taking ~ Value of Remainder After Taking _ Damages or Enhancement 225 Total Compensation $10,937 Rounded to $11,00q REAL ESTATE APPRAISAL AND INVESTMENT QUALIFICATIONS OF HARRY B. HUNSICKER PROFESSIONAL MEMBERSHIPS Member, American Institute of Real Estate Appraisers (No. 4342) Member and Past Director and Executive Vice President, Dallas Apartment Association Member and P~st Director, Texas Apartment Association Member, Dallas Board of Realtors Member, Dallas Home and Apartment Builders Member, Self Storage Association of America APPRAISAL EXPERIENCE Types of Properties Appraised: Warehouses, hospitals, medical centers, apartments, motels, office buildings, retail stores, shopping centers, single purpose industrial property, subdivisions, single family homes; specializing in income properties of all types. The American Institute of Real Estate Appraisers conducts a voluntary program of continuing education for its designated members. MAI's and RM's who meet the minimum standards of this program are awarded periodic educational certification. I am certified under this program through December 31, 1983. BUSINESS EY~PERIENCE Hunsicker & Associates, Real Estate Investments, Dallas, Texas. Presently and since November, 1967, a sole proprietorship appraising throughout the Southwest and develop- ing and managing apartments, shopping centers and office properties in the Central and North Texas area. Chai'rman, The Colony Bank, The Colony, Texas President, The Colony Municipal Utility District #1 of Denton County, The Colony, Texas Past Chairman (2 years), The Colony Planning & Zoning Commission, The Colony, Texas Director, Human Ecology Research Foundation of the Southwest, Dallas, Texas EDUCATION Oberlin College; BA Degrees - 1952 Harvard University Graduate School of Business, MJlA Degree - 1954 Case Institute of Technology; City Planning - 1958 Michigan State University; Case Study Seminar on Income Properties - 1962 Michigan State University; Advanced Case Study Seminar on Income Properties - 1963 HUNSICKER AND ASSOCIATES REAL ESTATE APPRAISERS · CONSULTANTS December 2, 1981 Ms. Janice Carroll City of the Colony 5576 N. Colony Boulevard The Colony, TX 75056 Re: V. J. Etchieson Tract Located on W/s F.M. 423, Approximately 600 Feet South of South Colony Boulevard, The Colony, Texas Proposed Acquistion of 10 Foot Wide Strip for the Widening of F.M. 423 STATEMENT For Appraisal Services Rendered ........ $1,500.00 Payable Upon Receipt. Thank you! HUNSICKER AND ASSOCIATES REAL ESTATE APPRAISERS CONSULTANTS December 2, 1981 Ms. Janice Carroll City of the Colony 5576 N. Colony Boulevard The Colony, TX 75056 Re: Marvin E. Kenning Tract Located on W/s F.M. 423, Approximately 850 Feet South of South Colony Boulevard, The Colony, Texas Proposed Acquisition of 10 Foot Wide Strip for the Widening of F.M. 423 STATEMENT For Appraisal Services Rendered ......... $1,000.00 Payable Upon Receipt. Thank you! HUNSICKER AND ASSOCIATt{ REAL ESTATE APPRAISERS CONSULTANTS Oecember 2, 1981 Ms. Janice Carroll City of the Colony 5576 N. Colony Boulevard The Colony, TX 75056 Re: Grace Union Presbytery, Inc. Tract Located at the SEC F.M. 423 and Nash Drive The Colony, Texas Proposed Acquisition of 10 Foot Wide Strip for the Widening of F.M. 423 STATEMENT For Appraisal Services Rendered ........ $900.00 Payable Upon Receipt. Thank you!