HomeMy WebLinkAboutR22-579153
RESOLUTION R22-579
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW,
TEXAS DECLARING 0.8723 ACRES LOCATED AT 1-27 AND HIGHWAY
194 AND DESCRIBED AS LOTS 1 AND 2, 29TH STREET CLOSED ADJ.,
BLOCK 2, ALLBRICK, PLAINVIEW, HALE COUNTY TEXAS TO BE
SURPLUS REAL PROPERTY; AUTHORIZING THE CITY MANAGER TO
APPRAISE SAID PROPERTY AND ADVERTISE FOR SEALED BIDS
FOR APPRAISED VALUE FORGOING COSTS; DECLARING THAT THE
POLICY SERVES A PUBLIC PURPOSE.
WHEREAS, the City Council for the City of Plainview, Texas pursuant to the
constitution and laws of the State of Texas including, but not limited to, Article 11, Section
5 of the Texas Constitution as a home rule city, and Texas Local Government Code §
51.076 to hold and dispose of real property for the benefit of the citizens of the City of
Plainview; and
WHEREAS, the City of Plainview, Texas is the owner of certain real property,
located within the boundaries of the corporate city limits of the City of Plainview, Texas
described as follows:
Approximately 0.8723 acres located at the southwest corner of the intersection
of Interstate 27 and Highway 194 (Dimmitt Road) more particularly described
as Lots 1 and 2, 29th Street Closed Adj., Block 2, Allbrick, City of Plainview,
Hale County, Texas with Hale County Appraisal District account numbers
14097 and 21452 (the "Property"); and
WHEREAS, this Property was originally purchased to construct public facilities
thereupon but is no longer needed for such purposes and is no longer needed for a public
purpose and may be declared as surplus property of the City; and
WHEREAS, the City of Plainview Code of Ordinances, Article 1.08, Section
1.08.001, requires the City Council to declare by resolution that the Property is surplus
property before it can be sold or offered for sale; and
WHEREAS, the City of Plainview Code of Ordinances, Article 1.08, Section
1.08.002 further requires the City Manager to have the Property appraised to obtain an
appraised value for said surplus real property; and
WHEREAS, the City Council believes that it would be a benefit to the citizens of
the City of Plainview to declare the Property as surplus real property owned by the City
and that a public purpose and benefit does exist to return this surplus real property to the
tax rolls of all the taxing entities:
Resolution R22-579 Surplus Real Property Page 1 of 2
154
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PLAINVIEW THAT:
SECTION 1. In accordance with Plainview Code of Ordinances, Article 1.08, Section
1.08.001, the City Council hereby declares the following property to be surplus real
property:
Approximately 0.8723 acres located at the southwest corner of the
intersection of Interstate 27 and Highway 194 (Dimmitt Road) more
particularly described as Lots 1 and 2, 29th Street Closed Adj., Block 2,
Allbrick, City of Plainview, Hale County, Texas with Hale County Appraisal
District account numbers 14097 and 21452 (the "Property").
SECTION 2. The City Council hereby acknowledges and accepts the appraisal attached
hereto as Exhibit A and acceptable appraisal from a competent appraiser of the value of
the Property meeting the requirements of Plainview Code of Ordinances, Article 1.08,
Section 1.08.002.
SECTION 3. The City Manager is further authorized to publish a notice for sale of the
Property and to advertise for bids for the Property and for the City Attorney to prepare
and/or approve a sales contract for the sale of the Property in accordance with the
provisions of Plainview Code of Ordinances, Article 1.08.
SECTION 4. The City Manager is authorized to perform all necessary functions,
procedures and responsibilities not specifically enumerated in this resolution to bring to
the City Council the highest bid for cash for the Property in order for it to be conveyed
pursuant to an ordinance passed by the City Council authorizing the Mayor to sell and
convey the Property.
PASSED AND APPROVED this 25th day of October,
Charles( Staryfes, Mayor
ATT T:
Belinda Hinojosa, City Se tary
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Resolution R22-579 Surplus Real Property Page 2 of 2
155
EXHIBIT "A"
THE, S
Real
Mr. Jeffrey Snyder
City Manager
City of Plainview
901 Broadway Street
Plainview, Texas 79072
Dear Mr. Snyder:
3Rj
. RQW$R :pMPANY
a Appraisal and Services
toe and Associates
December 13, 2016
Re: Appraisal Report
Vacant Land
SWC I-27 & Dimmitt Hwy.
0.8723 Acres
Plainview, Texas
At your request, I have inspected and appraised the property as
described herein. Conditions pertinent to or indicative of the
value of the property were investigated.
This Appraisal Report sets forth my findings and conclusions
derived therefrom, together with plats, maps, photographs, etc.,
as are considered essential to explain the processes followed in
making the appraisal.
The Appraisal Institute conducts a voluntary program of continuing
education for its designated members. MAIs and SRAs who meet the
minimum standards of this program are awarded periodic educational
certification. I am currently certified under this program.
The estimate of Market Value, as defined within the Appraisal
Development, as of December 7, 2017, subject to assumptions and
limiting conditions stated herein, is:
$100,000
ONE HUNDRED THOUSAND DOLLARS
This appraisal has been prepared on an "as is" basis, unless
otherwise stated, and it is intended to conform with the Uniform
Standards of Professional Appraisal Practice (USPAP).
9220 FM 2590 (Soncy) (806) 358-7611
Amarillo, Texas 79119 Fax: (806) 353-6903
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Page 2
December 13, 2017
Mr. Jeffrey Snyder
The subject property does not have any significant natural,
cultural, recreational or scientific value in the appraiser's
judgment.
Employment of the appraiser was not conditioned upon the appraisal
producing a specific value or a value within a given range.
The true copy of this report, which contains 60 ages as issued
by the signatory appraiser(s) and retained in the appraiser(s)
work file, constitutes the record of the appraisal in its
entirety which is conveyed to the Client(s) and/or Intended
User(s) named herein. Any change to the content of this report
made by anyone other than the signatory appraiser(s) or their
agents is prohibited.
This appraisal report is solely for the use of the addressee. The
appraisal report was prepared under a specific list of contracted
assumptions, agreed on by both parties and should be utilized only
in its entirety. Reliance upon information herein by any third
party is strictly at said third party's risk.
SR/MZ
Respectfully submitted,
Steve Rogers, MAI, CCIM
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TABLE OF CONTENTS
IMPORTANT FACTS AND CONCLUSIONS ---------------------------- 4
ASSUMPTIONS AND CONDITIONS --------------------------------- 5
APPRAISAL DEVELOPMENT -------------------------------------- 11
GENERAL INFORMATION
LOCATION MAP --------------------------------------------- 16
CITY OF PLAINVIEW AND REGIONAL DATA ---------------------- 17
SITE DESCRIPTION ----------------------------------------- 25
HIGHEST AND BEST USE ------------------------------------- 32
LAND VALUE ESTIMATE -------------------------------------- 35
CORRELATION AND CONCLUSIONS -------------------------------- 49
CERTIFICATE ------------------------------------------------ 52
QUALIFICATIONS --------------------------------------------- 54
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158
IMPORTANT FACTS AND CONCLUSIONS
Vacant Land
LOCATION: SWC Interstate-27 & Dimmitt
Highway, Plainview, Texas
PROPERTY TYPE: Vacant Land
LAND SIZE: 38,000 SF - 0.8723 AC
LEGAL DESCRIPTION: Lot 1 and Lot 2, Block 2, 29th
Street Closed Adj., Allbrick,
PLV
CLIENT: Mr. Jeffrey Snyder
INTENDED USER: City of Plainview, and/or
their assigns
INTENDED USE: Market Valuation
VALUE INDICATIONS
ESTIMATED LAND VALUE
BY SALES COMPARISON APPROACH $100,000
FINAL MARKET VALUE ESTIMATE $100,000
EFFECTIVE DATE OF THE APPRAISAL: December 7, 2017
DATE THE REPORT/SIGNATURE: December 13, 2017
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ASSUMPTIONS AND CONDITIONS
It is assumed that title to the property herein appraised is in
fee simple and is good and merchantable. The market value opinion
is reported without regard to questions of title, boundaries,
encroachments, environmental regulations, licenses, or other
matters of a legal nature unless non-compliance has been stated,
defined, and considered in the appraisal report.
The market value opinion is concluded under the assumption that no
international or domestic political, economic, or military actions
will significantly affect real estate values throughout the
country.
Certain information concerning market and operating data
was
obtained from others. This information
is verified to the extent
possible and used in this appraisal
only if it is believed to
be
accurate and correct. However,
such information is
not
guaranteed. Dimensions and areas of
the subject property and
the
comparables were obtained by various
means deemed reliable but
not
guaranteed to be exact.
M
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Assumptions and Conditions, continued
Real estate values are influenced by many external factors. The
data contained herein is all of the data considered necessary to
support the market value opinion(s). The appraiser has not
knowingly withheld any relevant facts, but does not guarantee
personal knowledge of all factors that might influence the subject
property's market value. Due to potential or unforeseen changes
in external factors, the market value opinion is valid only as of
the effective date of the appraisal.
The value conclusions contained herein are estimates. There is no
guarantee,
written
or implied, that the
subject
property will
sell
for such
amounts.
The market value
opinion
assumes that
the
property is under responsible ownership and competent management.
The appraiser will not be required to give testimony or attend
court or other legal authority concerning this appraisal without
prior agreement and arrangement between the client and the
appraiser.
Disclosure of the contents of this appraisal report is governed by
the by-laws and regulations of the Appraisal Institute and the
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Assumptions and Conditions, continued
Ethics Rule of USPAP 2016-2017.
Neither all nor any part of this report's contents shall be
disseminated to the public through advertising media, public
relations media, news media, prospectus for securities, or any
other public means of communications without prior written consent
and approval of the undersigned. This is especially applied to
any value conclusions, the appraiser's identity or the firm with
which he is connected, or any reference to the Appraisal Institute
or the MAI or SRA designation.
It is assumed that no hidden or unapparent conditions of the
property, subsoil, or structures render it more or less valuable.
No responsibility is assumed for such conditions or for
engineering that may be required to discover them. This is
especially applied to the presence of asbestos contamination,
underground fuel storage tanks, or any other such environmental
pollutant.
The distribution of the total valuation in this report between
land and improvements applies only under the reported highest and
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Assumptions and Conditions, continued
best use of the land. The allocations of value for land and
improvements, if presented, must not be used in conjunction with
any other appraisal and are invalid if so used.
No environmental impact studies were either requested or made in
conjunction with this appraisal, and the appraiser hereby reserves
the right to alter, amend, revise, or rescind any of the value
estimates contained herein, based on any subsequent environmental
impact studies, research, or investigation. Unless otherwise
stated, the value estimates produced in this report assume the
property is environmentally clean.
If this appraisal is for proposed construction, it is assumed that
the improvements will be constructed in substantial conformity to
the plans and specifications furnished to the appraiser, and with
good materials and workmanship, and that it will be tenanted and
financed as proposed. It is also assumed that the proposed
foundation and construction techniques are adequate to the site's
existing subsoil conditions.
It is assumed that mortgage money is available at current market
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Assumptions and Conditions, continued
interest rates and terms for the subject property as stated in the
Income Capitalization Approach section of the report.
The estimates of costs to cure deferred maintenance in this report
are estimates of probable costs under current market conditions
and are based on the available information and the appraiser's
expertise. Deferred maintenance affecting the property includes
only those items specified in the Property Description section of
this
report.
The
appraiser
takes no responsibility for hidden
items
or items
of
which the
appraiser was not advised.
It is the appraiser's judgment that this appraisal report has been
prepared in accordance with the Uniform Standards of Professional
Appraisal Practice (USPAP) published by the Appraisal Standards
Board of the Appraisal Foundation.
To the best of the appraiser's knowledge, this appraisal report
conforms to F.D.I.C. regulations and meets generally accepted
lending guidelines.
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164
Assumptions and Conditions, continued
Any significant natural, cultural, recreational, or scientific
values of the subject property, if any, are specifically addressed
in the report.
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APPRAISAL DEVELOPMENT
Type and Definition of Value
This appraisal concludes an opinion of Market Value of the fee
simple interest of the subject property. Market Value is
defined as:
The most probable price in terms of money which a property
should bring in a competitive and open market under all
conditions requisite to a fair sale, assuming that (a) the buyer
and seller are each acting prudently and knowledgeably, and, (b)
assuming the price is not affected by undue stimulus. Implicit
in this definition is the consummation of a sale as of a
specified date and the passing of title from seller to buyer
under conditions whereby:
a. Buyer and seller are typically motivated;
b. Both parties are well informed or well advised
and acting in what they consider their own best
interests;
C. A reasonable time is allowed for exposure in the
open market;
d. Payment is made in terms of cash in U.S. dollars
or in terms of financial arrangements comparable
thereto, and;
e. The price represents the normal consideration for
the property sold unaffected by special or
creative financing or sales concessions granted
by anyone associated with the sale.
The source of the Definition of Market Value is the Financial
Institution Reform, Recovery, and Enforcement Act of 1111
(FIRREA).
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166
Appraisal Development, continued
Property Rights Appraised
Fee Simple Interest: Absolute ownership unencumbered by any
other interest or estate, subject only to the limitations
imposed by the governmental powers of taxation, eminent domain,
police power, and escheat. (Dictionary of Real Estate
Appraisal, 5th Edition, Appraisal Institute)
Client - Intended User - Intended Use
The Client is Mr. Jeffrey Snyder. The Intended Users of this
appraisal are Mr. Synder, the City of Plainview, and/or their
assigns. The Intended Use is for market valuation for internal
decision making.
Appraisal Assignment
The client requested a market value of opinion via telephone
conversation. This report outlines the standards and
requirements to which the client and the appraiser have agreed.
Date of the Appraisal - Date of the Report/Signature
The effective date of the appraisal is the date of inspection,
December 7, 2017. The date of the report and the date of
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Appraisal Development, continued
signature is December 13, 2017.
Hvpothetical Conditions - Extraordinary Assumptions
The subject property is appraised "as is." No extraordinary
assumptions or hypothetical conditions are employed.
Scope of Work
The Market Value Opinion stated in this report is based on
investigation and analysis of all known, relevant factors that
impact the market value of the Subject Property. This includes
external factors such as general economic, social, and political
influences, area and neighborhood trends, the neighborhood's
physical environment, and internal factors such as the physical
attributes of the Subject Property. Sources relied upon for the
data contained herein include: 1. A visual, surface inspection
of the subject property December 7, 2017, 2. Information
provided by the client, 3. The Hale County Appraisal District
(HCAD), 4. Hale County deed records, 5. The City of Plainview
and other public entities, 6. Local private sources including
real estate professionals such as other appraisers and brokers,
buyers, sellers and, 7. Sources with relevant and verified
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Appraisal Development, continued
information who require confidential status and whose identities
are retained in the appraiser work file. Information relevant
to the appraisal process is cited where appropriate throughout
the report.
The content of this Appraisal Report is consistent with the
intended use of the appraisal. The information deemed reliable,
necessary to the appraisal process, and most relevant to the
conclusion of the Market Value Opinion is presented herein.
Some of the information employed in the appraisal of the subject
property is retained in the appraiser's files. The relevance
and application of each of the three approaches to value are
discussed as follows:
The Sales Comparison Approach is employed when there is
sufficient data to produce a credible indication of value. In
this case, there are a sufficient number of comparable sales to
warrant its development. Like the subject, these comparable
sales feature the land tract as the major value component. The
building and site improvements found on such properties are
often nonexistent or, when present, are relatively minor value
contributors. Because of this, the Sales Comparison Approach is
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Appraisal Development, continued
employed to render an estimate of land value for the Subject.
The Sales Comparison Approach is developed as a separate, stand-
alone method of valuing the land.
The Cost Approach adds the value estimate of the "unimproved"
land to an estimate of the depreciated (physical, functional,
and economic) replacement cost of all building and site
improvements. There are no building improvements located on the
subject property. Therefore, the Cost Approach is not developed
in estimating the value of the subject property.
The Income Approach is based on the income -producing potential
of the property as developed with actual or proposed building
and site improvements. Because the appraisal assignment calls
for a market value opinion of the property as a vacant site
only, with no building improvements, it is not possible to
establish an income and expense stream either from actual
records or from market data. The Income Approach is not
developed for this appraisal.
Ll
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170
1 104
SUBJECT 00
SWC 1 21 & Dimmitt Hwy.
W 24th St
W lsth St
w
fRd 5
Urb—ty
/ = O
A
lnduvtnal Blvd 14 E 3401 St E 34th St
Seth Ward
W 24th St f 241A1 St E 24th St
. Plainvinr f s< E 16th St
W nth st Z
W Sth St g E 5th St E Sth St „
..
ph n
SW 31d Sl Ce. .,y
Hale Cotm y
Arryort IL
0
LOCATION MAP
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CITY OF PLAINVIEW AND HALE COUNTY DATA
Plainview, Texas, is the county seat of Hale County. The county
is located in the High Plains - Panhandle area of Texas and is
generally regarded as a major agricultural area of the
state. Agriculture remains the basic industry in the county, but
there has been some diversification in recent years.
Population
U.S. Government census figures have been made available for 1980,
1990 and 2000. The following are population figures for each
census year:
1990
21,700
2000
22,336
2010
21,324
The average annual temperature in the Plainview area is 60 degre-
es. The monthly average temperature in January is 41 degrees and
in July is 78 degrees.
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Citv of Plainview Data, continued
Average annual rainfall ------------------------- 19.8"
Average annual snowfall ------------------------- 5" to 8"
Days between killing frost ---------------------- 205 days
Days over 90 degrees ---------------------------- 30 days
Agriculture
Major Products Grown Estimated Area of Production
Grain Sorghum
Wheat
Corn
Cotton
Soybeans
Other food produced in area:
Total Number of Irrigated
Acres in the Area:
5,800 lbs per acre
55 bushels per acre
8,800 lbs. per acre
825 lbs per acre
55 bushels per acre
Vegetables: onions, peppers,
potatoes, cucumbers, carrots,
cantaloupe, watermelon
400, 000
Livestock
Estimated
Units Raised/
Fed/Slaughtered
Annually
Cattle
1,000,000
Slaughtered
Hogs
6,000
On Feed
Sheep
4,000
On Feed
Cattle
118,921
On Feed
M.
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City of Plainview Data, continued
Plainview is served by a council/manager type government with 7
councilmen and a mayor. There are 35 full-time firemen and 39
full-time policemen. The fire insurance rating has a .28 key
rate. The city has a Planning Commission and zoning regulations.
Utilities and Services
Electricity is provided by Southwestern Public Service, while
natural gas is provided by Energas with a 20" transmission line.
Water is provided by the city from Lake Meredith and ground wells.
Maximum Daily Water Capacity - 15,700,000 gallons
Peak Load - 10,000,000 GPD
Storage Capacity - Overhead - 2,000,000 gallons
Ground - 6,000,000 gallons
Sewer Plant - Trickling Filter
Capacity - 3,300,000 GPD - Present Load - 750
Solid Waste Disposal - Landfill
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Citv of Plainview Data, continued
Major Employers
Business
Product/Service
Employees
Excel
Beef Packing Plant
1,850
Plainview Ind. Schools
Education
800
Wal-Mart Distribution
Distribution
1,000
Texas DCJ
Prison
468
Wal-Mart Store
Retail
240
Covenant Hospital
Medical Care
320
City of Plainview
City Government
200
Central Plains MH/MR
Mental Health Care
240
County of Hale
County Government
175
Azteca Mill
Corn Mill
217
Wayland Bapt. University
Education
240
Prairie House
Nursing Home
163
Hale County State Bank
Financial Institution
80
United Supermarket
Retail
195
Integrated Health
Nursing Home
75
Gebo Distributing
Retail
50
Hi -Plains Millwright
Grain Elevator
75
SW Public Service
Electricity
25
Source: plainviewfirst.com, 2011
General Information
The City of Plainview is served by a major interstate highway and
three state highways. Both the Burlington Northern and Santa Fe
Railroads provide service. TNM&0 bus service is available.
Intrastate freight service is provided by UPS, TexPack and Central
Freight Lines, while interstate service is provided by Central,
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Citv of Plainview Data, continued
Merchants, Yellow, Roadway, Consolidated, UPS, Federal Express and
TexPack. Hale County Airport is adequate for most private and
corporate air traffic, and three charter services are available.
A $1,000,000 airport construction project has extended the runway
to 6,000 feet. A regional airport serviced by ASA, Southwest,
American Eagle and United Express is located 35 miles south at
Lubbock, Texas.
Medical facilities are considered adequate with 100 hospital beds
available. There are three nursing homes with a total capacity of
281 beds and two retirement centers with 92 beds available. These
facilities are staffed by 30 doctors and 8 dentists.
The Plainview school system serves approximately 6,101 students
with seven elementary schools, three junior high schools and one
high school. There is one private school with 47 teachers and
approximately 213 students in grades K-12.
Wayland Baptist University is located in Plainview and has an
enrollment of approximately 2,000. Other nearby colleges include
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City of Plainview Data, continued
Texas Tech University in Lubbock, West Texas A & M University in
Canyon, and South Plains Junior College in Levelland.
Conclusions
The city has maintained a stable population in recent years, while
the county has had a decline in rural population. The national
recession of 2008-2009, the drought of 2012, and the generally
depressed condition of the agricultural markets have produced the
population decline in the region. However, the addition of the
new shopping space, the Wal-Mart distribution center expansion and
the Azteca Milling Company opening in 1990 have had a positive
effect on the economy. The rental housing market remains tight,
with a small percentage of units available for lease. Industrial
development is being hampered somewhat by the lack of available
housing. The office and retail segments of the market, however,
do not show the same strength, and there is ample available space
in each of these markets. The general economic outlook for
Plainview is average for a town of this size.
Current Market Conditions
Plainview's economy is based in agricultural production and
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Citv of Plainview Data, continued
processing. City leaders actively and successfully pursue
economic development that enhances the community's appeal.
However, the current widespread drought has forced reductions in
cattle herds in the region. Subsequent to the effective date of
this appraisal but prior to the report/signature date, Cargill
announced that its Plainview beef processing plant would be closed
on February 1, 2014. The immediate result will be a layoff of
2,000 workers and the possible loss of another 1,000 jobs in
support businesses in the extended term. This represents a major
reduction in the county's economic output, which could negatively
affect real estate values in the next few years. The negative
effects will be mitigated in the short run by company severance
packages and retraining and unemployment benefits from company and
government sources. Cargill's announcement indicated that the
plant is being idled and mothballed, not permanently closed,
pending improvements in the cattle supply and increased market
demand for beef processing. However, the company reportedly
anticipates no substantial improvements that would warrant
reopening the facility for several years. However, there is not
sufficient support for a credible "market conditions" adjustment
in the sales comparison approach as of the effective date of the
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Citv of Plainview Data, continued
appraisal due to the closing announcement's recent timing and the
mitigating effect of the potential economic countermeasures.
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1.1
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SITE DESCRIPTION
Location
The subject property is located in northwest Plainview at the
southwest corner of the intersection of Interstate 27 and Highway
194 (Dimmitt Road) .
Legal Description
Legal description provided by the client identifies the subject
as: Lots 1 and 2, 29th Street Closed Adj., Block 2, Allbrick, City
of Plainview, Hale County, Texas. The HCAD account number numbers
are 14097 and 21452.
Size and Shape
The site is rectangular. See the attached aerial map. According
to the Hale County Appraisal Districts records, the site contains
38,000 SF, or 0.8723 acres.
Topography and Soil
The topography is level. Natural drainage appears adequate. The
soil type is assumed suitable for all construction types.
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Site Description, continued
1
The subject site is not located within a FEMA-designated hazardous
flood zone according to Flood Insurance Rate Map #48189CO205D,
dated February 18, 2011.
Hazardous Substance Comment
The visual, surface inspection of the subject did not reveal the
obvious presence of any environmental contamination. However,
the appraisers have no special training or expertise to examine
for such contamination, and no warranty is made or implied that
such contamination does not exist. The subject property is
assumed environmentally clean.
Services
All utilities (electricity, gas, water and sewer) are available
to the site. Police and fire protection are provided by the
city.
Street Improvements
The site fronts on the Dimmitt Highway and the Interstate-40
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Site Description, continued
south bound access road. Both streets are asphalt paved. The
Dimmitt Highway is a five -lane traffic carrier, at the subject
property. Interstate-27 is a four -lane, divided highway that
travels from Lubbock, Texas to Amarillo, Texas.
Access and Visibility
The site has good access from the Dimmitt Highway and Interstate-
27. Private property abuts the subject's south and west
boundaries.
Zoning
The property is zoned "C-2"
- Commercial.
It
is
assumed any
building improvements would be
in compliance
with
this
zoning.
Assessed Value and Taxes
The 2017 land value concluded by Hale County Appraisal District
for the two tax accounts are as follows:
Tax Account: Lot size: Assessed Value:
14097 23,750 square feet $3,125
21452 14,250 square feet $1,875
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Site Description, continued
Ownership History
The current owner, the City of Plainview, has owned the property
in excess of three years. The property is neither listed for
sale, nor under contract of sale.
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MAP DATA
FEMA Special Flood Hazard Area No
Map Number 48189CO205D
Zone.X
Map Date: February 18, 2011
FIPS 48189
Prepared for Steve Rogers Company
2906 Dimmitt Rd
Plainview, TX 79072
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Areas inundated by 100-year flooding ® Floodway
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im•
1
NORTH ALONG 1-27 ACCESS ROAD
SUBJECT PROPPRTY FROM ACCESS ROAD
1
31
SUBJECT PROPERTY FACING 1-27
SUBJECT FROM INTERSECTION
me
ANALYSIS OF HIGHEST AND BEST USE
A fundamental principle in real property valuation is highest and
best use: that use, as of the effective date of the appraisal,
most likely to produce the greatest return to the land over a
given period. It is also a "proper" use readily achieved and
likely to be in demand. To determine an opinion of its highest
and best use, a property is judged by four criteria: 1. legal
permissibility, 2. physical possibility, 3. financial feasibility,
and 4. maximum profitability. Highest and best use is
foundational to the appraisal process.
Highest and best use principles are applied to a property under
two scenarios: 1. assuming that the site is a vacant, unimproved
tract, 2. taking into account the physical site with existing
and/or proposed improvements.
Highest and Best Use - As If A Vacant Site
Legal Permissibility
The subject site is zoned "C-2" - Commercial. Commercial uses
from a broad range of activities are allowed by this zoning.
32
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1
Highest and Best Use, continued
Physical Qualities Influencing Utility
The subject property is an 38,000 square foot vacant land tract.
The site is level. It is not located in a FEMA-designated
hazardous flood area. The soil type is assumed suitable for most
building projects. It is assumed there are no adverse easements
or encroachments. Access is good from two public roadways, and
all public utilities and services are available. The subject is
sufficient in size and configuration to accommodate a variety of
development project types. There are no improvements present on
the site.
Locational Influences
The subject is located at the southwest corner of Interstate 27
and Dimmitt Highway. Visibility is good. Access is good.
Surrounding land uses include a mix of commercial uses. No
detrimental locational factors are present.
Financial Feasibility - Probability of Neighborhood Change
The subject's size, frontage location, configuration, and
terrain are well suited to the development of a commercial
operation. The Plainview economy is currently stable. This
33
Highest and Best Use, continued
trend is expected to continue. Both internal and external
factors favor the financial feasibility of a land use for a
commercial business.
Maximum Profitabilit
The use of the property by owners/users would maximize profits for
the owner. If used as an investor property, current market rents
would support a suitable project to return maximum profits on the
investment. The traffic flow along Interstate 27 and the Dimmitt
Highway leads to a judgment that the site would return maximum
profits if developed for use as any number of high -visibility,
good -access, commercial enterprises.
An analysis of the subject property employing the four criteria
cited above leads to an opinion of the highest and best use of the
vacant subject site to be for future commercial in keeping with
ongoing development in the immediate area. This conclusion serves
as the basis for the formulation of the land value estimate in
this report.
34
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LAND VALUE ESTIMATE
35
190
LAND VALUE ESTIMATE
The estimate of Land Value can be derived by use of one of six
different procedures. They are:
1. Sales Comparison
2. Allocation
3. Extraction
4. Subdivision Development
5. Land Residual
6. Ground Rent Capitalization
The Sales Comparison Approach may be used to value land that is
actually vacant or land that is considered as though vacant for
appraisal purposes. Sales comparison is the most common
technique for valuing land, and it is the preferred method when
comparable sales are available. The greatest weight is placed
on actual sales of similar land made at times relatively
concurrent with the date of the appraisal and subject to similar
conditions.
The estimate of value for the subject site can be obtained by
NO
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191
Land Value Estimate, continued
applying the Direct Sales Comparison Approach. In this
Approach, sales and asking prices of comparable area tracts were
investigated as a basis for estimating the value of the subject
site.
Comparable tracts must be located in similar market environments
when compared to the subject. Investor attitudes toward the
comparable sales must be reasonably compatible with probable
investor attitudes toward the subject site.
Adjustments are made to the selected tracts to compensate for
the differences between the sales and the subject property.
Generally, adjustments are made to the sales to compensate for
dissimilarities for the factors of time, location, condition of
the sales and physical characteristics (utility). Physical
characteristics can include topography, size, shape, utility
availability, etc.
Required adjustments can be determined after a thorough analysis
of available comparable market data which is detailed on the
following pages. The appraiser has attempted to utilize the
37
192
Land Value Estimate, continued
"paired sales" technique, where available data makes it
possible, coupled with judgment to extract the amount of each
adjustment for dissimilar characteristics.
W.
1
1
193
1
Land Sale No. 1
Procerty Identification
Record ID 2840
Property Type Vacant Land, Vacant Lot
Property Name Vacant Land
Address 2201 W. 5th St, Plainview, Hale County, Texas
Legal East 10' of Lot 3, all of Lots 4-5, Block 55, College Hill
Addn.
Sale Data
Grantor Highwater Enterprises Inc
Grantee Maria Dejesus Munoz Alcala
Sale Date January 01, 2012
Deed Book/Page 2012-4162
Conditions of Sale Cash to Seller
Sale Price $57,000
Land Data
Zoning C-2, Commercial
Land Size Information
Gross Land Size 0.424 Acres or 18,460 SF
Indicators
Sale Price/Gross Acre $134,503
Sale Price/Gross SF $3.09
Remarks
Vacant lot located at the corner of W. 5th St and Utica. Sale confirmed through MLS
#11-289 & Morgan -Eaves Real Estate.
39
194
Land Sale No. 2
Property Identification
Record ID 2970
Property Type Vacant Land
Property Name Vacant Land
Address 1011 W. 5th St., Plainview, Hale County, Texas
Legal Unit 1 out of E 1/2 Section 40, Block JK-2, Hartley
Addition, City of
Legal Plainview, Hale County, Texas
Sale Data
Grantor Maurice and Loretta Hastey
Grantee Plainview Clean Holdings, LLC
Sale Date March 11, 2014
Deed Book/Page 2014/851
Conditions of Sale Cash to Seller
Sale Price $53,189
Land Data
Zoning C-2, Commercial
Land Size Information
Gross Land Size 1.033 Acres or 45,000 SF
Indicators
Sale Price/Gross Acre $51,487
Sale Price/Gross SF $1.18
Remarks
An older building was removed for use of the vacant lot. Proposed to be improved with a
dry cleaners.
40
195
Land Sale No. 3
Property Identification
Record ID 3746
Property Type Vacant Land
Property Name Vacant Land
Address Interstate 27 & 16th Street, Plainview, Hale County, Texas
Tax ID 73234
Legal Watergate PLV Unit 2, Lot 11
Sale Data
Grantor
Bethel Baptist Church
Grantee
Jimmy Hill
Sale Date
April 17, 2015
Deed Book/Page
2015/1407
Conditions of Sale
Cash to Seller
Sale Price
$201,000
Land Size Information
Gross Land Size
1.170 Acres or 50,965 SF
Indicators
Sale Price/Gross Acre
$171,796
Sale Price/Gross SF
$3.94
1
Remarks
Property was transferred for remaining debt on the property. Verified by sales contract
retained in appraiser's files.
41
196
Land Sale No. 4
Property Identification
Record ID 3745
Property Type Vacant Land
Property Name Vacant Land
Address 322 W. 6th , Plainview, Hale County, Texas
Tax ID 19953
Legal OT PLV Block 45, Lots 10-11
Sale Data
Grantor Apex Collision Center, LP
Grantee Casey Covington
Sale Date August 16, 2016
Deed Book/Page 2016/2655
Conditions of Sale Cash to Seller
Sale Price $30,000
Land Data
Zoning C-3
Land Size Information
Gross Land Size 0.299 Acres or 13,006 SF
Indicators
Sale Price/Gross Acre $100,477
Sale Price/Gross SF $2.31
Remarks
Verified by MLS # 13-20.
42
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197
1
1
� I
County Road 60
Cnunry Road 60
y>
3
o i
u
Industrial Blud
SUBJECT
SWC I-27 & Dimmitt Highway
N
W 31,1 St
�n 8i W 291h St
D �SI
K W 26th St N
O g
� W 24th St E
W 24th St
z o
COMPARABLE No. 3 Q z
Interstate 27 & 16th Street
_ o
Wl11h $t
W 16th St
W 160 St W 15th St
n
W 141h St
3
W13thSt
W131hSt
s
w
COMPARABLE No.4
g
_ w nth St
322 W 6th St
COMPARAtf1
Woyw—d ttatrst ° W Bth St
2201 W
W tthSt'rs"
t.,
a
a�
W Sth St
W 4th St
VJ 4tt+
0
3
40
Rtrgtonal
�
Rurvtirtg WPter Pk�
Pad East CO1"04b
y
COMPARABqSt
,�
Z
SW 3rd St
1011 W St
Hale Coumy Atrporr
K
COMPARABLE LAND SALES MAP
43
E 34th St
E S—th St
E Canpotea
Earl end
E ltth St
W 91h st
3 �
4 Z
m&
W lit St
7
BroadwP
Patin
w
Land Value Estimate, continued
LAND SALES SUMMARY
Sale
1
2
Date
0112012
0312014
0412015
0812016
Location
2201 W..5h Street
1011 W..5° Street
I-27& I'Street
322 W. B'
Iinancing
Cash to Seller
Cash to Seller
Cash to Seller
Cash to Seller
Price
$57, 000
$53,189
$201, 000
$30, 000
.Size/SF
18,460 SF
45, 000 SF
50,965SF
13, 006SF
Price/SF
$3.09
$1.18
$3.94
$2.31
LAND SALES ADJUSTMENT GRID
Sale
I
2
Price/Acre
<$3.09
$1.18
P.94
$2.31
Frnancv29
0
0
0
0
Market CondrlioalT ne
0
0
0
0
Transactional Adjusted
Price/Acre
�83.09
.$1.18
�83.94
Size
0
0
0
0
1 tilili-
0
+40%
0
0
Location
-10106
-10%
0
-10%
Access
0
0
0
0
Net Adjusanent
-10%
+301%
0
-101%
Adjusted I rice/Acre
$2.78
$1.53
$3.94
$2.08
44
1
1
1
199
1
1
Land Value Estimate, continued
The Adjustment Process: The adjustment process reconciles each
sale to the subject where various property elements differ
significantly. The adjusted unit -prices reflect market response
to the subject property. Adjustments are applied in a two-step
process: 1. Transactional adjustments are applied sequentially,
based on the following order.
Transactional Elements
Property rights conveyed
Financing terms
Conditions of sale
Expenditures immediately after sale
Market conditions
2. After transactional adjustments are applied, the unit prices
of the sales are adjusted for property elements in the following
categories. Property element adjustments are applied
cumulatively and in any order.
Property Elements
Location
Physical characteristics
Economic characteristics
Use
Non -realty components of value
45
200
Land Value Estimate, continued
A limited sales database precludes in-depth, paired -sales analysis
to establish adjustment amounts. The adjustments applied are
estimates based on the appraisers' general market experience and
analysis of the subject and the comparable properties.
Transactional Adjustments
The transactional elements that most often affect the adjustment
process are financing (cash equivalency) and market conditions
(date of sale/time). These categories are cited in the grids
above. Analysis of the market environment of the subject and the
comparables indicates that no transactional elements deviate from
current market norms to a degree that requires adjustments in
these two categories. The adjustment categories for property
rights, conditions of sale, and expenditures immediately after
purchase affect the adjustment process much less frequently, are
not required for this appraisal, and are excluded from the grids.
Property Adjustments
Size: The subject property is a small commercial tract of land.
The comparable properties range in size from 13,006 SF to 50,965
SF. This is not a large enough difference to require adjustments.
O,
1
201
Land Value Estimate, continued
Therefore, there is no adjustment for size.
Utility:
All comparables are considered
to have level,
flat
topography,
similar to the
subject's.
Comparable 2
had a
structure that was removed after the purchase. An upward
adjustment is indicated for the utility of this comparable.
Location: Location strongly influences buying decisions.
Properties with good visibility, good access, and reasonable
conformity to surrounding development trends typically sell for
more than properties inferior in these categories. Adjustments
are required to Sales 1, 2 and 4 to reconcile them to the
subject's inferior location. They are in the commercial district
of Plainview.
Access: Access is considered similar between the subject and all
four comparables. No adjustments for access are required.
Summary and Conclusion
The adjusted sales price range is from $1.53/SF to $3.94/SF. The
subject property is a contiguous land tract. The Comparable sales
were taken into account when determining the final Indicated Value
47
202
Land Value Estimate, continued
of the subject property.
38,000 SF x $2.50/SF = $ 95,000
38,000 SF x $3.00/SF = $114,000
Indicated Value Say, $100,000
W:3
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203
CORRELATION AND CONCLUSIONS
The subject property is a tract of land at the southwest corner
of Interstate 27 and the Dimmitt Highway in Plainview, Texas.
The following are the market value estimates based on the three
methods:
Sales Comparison Approach $100,000
Income Approach $ N/A
Cost Approach $ N/A
Three methods are available to the appraisers for concluding a
market value opinion: the Cost Approach, the Income Approach,
and the Sales Comparison Approach. Any or all of these
approaches may be employed when appropriate. In the appraisal
of vacant land, the Cost Approach and the Income Approach are
not relevant indicators, as noted in the Appraisal Development
section of this report. The Sales Comparison Approach is relied
upon as the sole guide to value for the subject tract. Land
sales of commercial tracts were employed that reflect the best
information available regarding size, topography, location, and
zoning. Significant differences between these comparable sales
49
204
Correlation and Conclusions, continued
and the subject were reconciled through a percentage adjustment
process that addressed various important property elements. The
adjusted value range that this process produces is the basis for
the market value opinion.
The market value opinion concluded for the subject property, as
of December 7, 2017, is:
$100,000
ONE HUNDRED THOUSAND DOLLARS
Exposure Time
Exposure time is, "the estimated length of time the property
interest being appraised would have been offered on the market
prior to the hypothetical consummation of a sale at market value
on the effective date of the appraisal; a retrospective opinion
based on an analysis of past events assuming a competitive and
open market."
50
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1
Correlation and Conclusions, continued
USPAP, 2016-2017 Edition, Appraisal Foundation, p. U-2-3) Based
upon the comparable sales used in this appraisal, the estimated
exposure time to achieve pricing generally aligned with the
concluded market value is anticipated to be within twelve to
eighteen months.
1
1
51
�J
CERTIFICATE
I certify that, to the best of my knowledge and belief, ...
- The statements of fact contained in this letter are true
and correct.
- 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.
I have no (or the specified) present or prospective
interest in the property that is the subject of this
report, and I have no (or the specified) personal interest
to the parties involved.
- I have no bias with respect to the property that is the
subject of this report or to the parties involved with
this assignment.
My engagement in this assignment was not contingent upon
developing or reporting predetermined results.
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 occurrence of a
subsequent event directly related to the intended use of
this appraisal.
My analyses, opinions, and conclusions were developed, and
this update letter has been prepared, in conformity with
the Uniform Standards of Professional Appraisal Practice.
- I have made a personal inspection of the property that is
the subject of this report.
- No one provided significant real property appraisal
assistance to the person signing this certification.
I certify that, to the best of my knowledge and belief,
the reported analyses, opinions, and conclusions were
developed, and this update has been prepared, in
conformity with the requirements of the Code of
52
207
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Certificate, continued
Professional Ethics &Standards of Professional Appraisal
Practice of the Appraisal Institute.
I certify that the use of this report is subject to the
requirements of the Appraisal Institute relating to review
by its duly authorized representatives.
As of the date of this report, I have completed the
continuing education program of the Appraisal Institute.
- This represents an appraisal report and the content is
consistent with the appraisal assignment and the intended
use of the appraisal.
I have not provided any real estate services regarding the
subject property, as an appraiser or in any other capacity,
within the three years immediately preceding acceptance of this
appraisal assignment. I have provided real estate services for
the adjacent property within the last three years.
Megan Zanchettin, has participated in the preparation, analyses,
conclusions, and opinions concerning real estate that are set
forth in this appraisal.
Based upon my investigation and my experience, I conclude that
the Market Value of the subject property, as of December 7,
2017, under the assumptions and limiting conditions as stated
herein, is:
$100,000
ONE HUNDRED THOUSAND DOLLARS
Megan Zanchettin
Texas Certified
General Appraiser
TX-1380738-G
53
Steve Rogers, MAI, CCIM
Texas Certified
General Appraiser
TX-1320765-G
209
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QUALIFICATIONS
STEVEN ROGERS, MAI, CCIM
GENERAL
Consultant to The Steve Rogers Company, Appraisal and Counseling
in Real Estate, located at:
9220 FM 2590 (Soucy Road)
Amarillo, Texas
PROFESSIONAL EXPERIENCE
Over three years appraisal experience with Smith Real Estate
Associates, Inc., in Waco, Texas. Duties include real property
appraising of residential, commercial, industrial, and
development properties. Have also testified as an expert
witness in McLennan County Court, Waco, Texas.
Over two years appraisal experience with Toland, McClellan,
Massey, Inc. and McClellan, Massey, Mashburn, Inc., in Dallas,
Texas. Duties include real property appraising of commercial
and industrial properties as well as appraising for eminent
domain proceedings.
Over thirty years of appraisal experience with Steve Rogers
Company in Amarillo, Texas. Experience includes real property
appraising of residential, commercial, and industrial
properties. Have also testified as expert witness in various
Texas Panhandle courts.
Over seven years' experience in commercial real estate brokerage
with J. Gaut and Associates, Amarillo, Texas. Closed in excess
of $45,000,000 in real estate transactions during the time
period from 2003 - 2011.
55
210
Qualifications, continued
PROFESSIONAL AFFILIATIONS
American Institute of Real Estate Appraisers, Texas Plains Chapter
MAI Designation, certificate #6342
Certified Commercial Investment Member, CCIM Institute,
Member #13409
Real Estate Broker - Texas Real Estate Commission
Certified Texas General Real Estate Appraiser -
Certificate #TX-1320765-G
Certified New Mexico General Real Estate Appraiser -
Certificate #03403-G
EDUCATIONAL BACKGROUND
General: Bachelor of Science (B.S.), Texas Tech
University, Lubbock, 1971
Specific: Several courses of the American Institute of Real
Estate Appraisers, and cost estimating seminars
in Dallas (1976 and 1977), presented by the
Marshall and Stevens Publications Company, and
Boeckh Valuation Service. Baylor
University - Post Graduate Study in Real Estate.
Completed CI 101, CI 102, CI 103, CI 104, and
Comprehensive Examination, CCIM Institute, 2006.
Professional: Currently certified by both the Appraisal
Institute and the Texas Real Estate Licensing
Board. All education requirements are current.
Testimony: Over 35 years' experience in litigation support.
Recent testimony includes appearances before US
Bankruptcy Court, Potter and Randall County
District Courts and Courts of Law. Over 70
appearances before special commissioners in
right-of-way hearings during 2011-2013. Over 50
depositions given during the past 25 years.
1
211
1
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State of New Mexico
REAL ESTATE APPRAISERS BOARD
D d PO Box 25101 Santa Fe, NM 87505 (505) 476-4622 D d
j This is to certify that
D a Steven Rogers #03403-G D d
Having complied with the provisions of the New Mexico Real Estate Appraisers
Act is hereby granted a license to practice as a r
D a General Certified Appraiser D a
tr
D This appraiser is eligible to perform in Federally Related Transactions
Issue Date: 11/21/2014 Date Expires: 04/30/2018 n
v N E MU T,BE CONSPICUQUSLY POSTED IN PLACE OF BUSINE-4,,
57
212
Texas Zlppraioer litenoing ana Certification Jgoara
P.O. Box 12188 Austin, Texas 78711-2188
Certified General Real Estate Appraiser
Number TX 1320765 G
Issued: 05/26/2017 Expires: 05/31/2019
Appraiser: STEVEN ROGERS
Having provided satisfactory evidence of the qualifications required by the
Texas Appraiser Licensing and Certification Act, Texas Occupations Code,
Chapter 1103, is authorized to use this title, Certified General Real Estate
Appraiser.
uglas E. Old ixon
Commissioner
Li
1
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1
QUALIFICATIONS
MEGAN A. ZANCHETTIN
GENERAL
Employed with Travis Loe and Associates, Inc. dba The Steve
Rogers Company, Appraisal and Counseling in Real Estate, since
September 2014, located at:
9220 FM 2590 (Soncy Road)
Amarillo, Texas 79119
Phone: (806)358-7611
Email: megan@steverogersco.com
PROFESSIONAL AFFILIATIONS
Licensed by the Texas Appraiser Licensing and Certification
Board as a Certified General Real Estate Appraiser #TX 1380738 G
Certificate Expires 09/30/2019
Licensed by the Texas Real Estate Commission as an Individual
Real Estate Broker #595618
Candidate for Designation, Appraisal Institute, October 2017-
Present
EDUCATIONAL BACKGROUND
General:
Bachelor of Business Administration (B.B.A.), Finance,
Texas A & M University, 2008
Master of Real Estate
Texas A & M University, 2010
Specific:
Basic Appraisal Principles, 2014
Basic Appraisal Procedures, 2014
National USPAP, 15-Hour, 2014
General Appraiser Market Analysis & HBU, 2015
7-Hour National USPAP Update Course 2016-2017, 2016
General Appraiser Site Valuation and Cost Approach, 2017
Business Practices and Ethics, 2017
59
214
Texag Qppraiger Iftenging anb Certification Aioarb
P.O. Box 12188 Austin. Texas 78711-2188
Certified General Real Estate Appraiser
Number TX 1380738 G
Issued 09/26/2017 Expires: 09/30/2019
Appraiser. MEGAN AARON ZANCHETTIN
Having provided satisfactory evidence of the qualifications required by the
Texas Appraiser Licensing and Certification Act. Texas Occupations Code,
Chapter 1103. is authorized to use this title. Certified General Real Estate
Appraiser.
60
uglas E. Old
Commissioner
1
1
