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FROM :-THE TAYLOR APPRAISAL CO. Mr. William G. 'Hawkins Page 2 July 17, 2000 PHONE NO. : 6125429381 Jul. 17 200 12 : 30PM P3 These ten (10) studies had an average difference of $2,964. in the city of Lino Lakes, similar type properties with public sewer and water will sell for about $2,900 ®, more than those with private wells and septic systems. However, if you will notice the sales that had addresses on Orange Street and Olive Street had a different average for the differences. These five (5) sales are shown below. TABLE TWO ADDRESS DIFFERENCE AVERAGE 819 Orange Street $ 3,678 836 Olive Street $ 162 819 Orange Street $ 741 843 Orange Street $ 8,595 855 Orange Street $13,133 AVERAGE $ 5,261 ® The private water or sewer systems on these streets, Olive and Orange., have lately come under stress. They (according to the city) have reported that replacement or repair is beginning to become a problem and I would guess that the buyers and sellers are becoming aware of it, and are reflecting it in the sales prices. In conclusion, I would suggest that if the private water and sewer systems are working well, you could expect a house with public water and sewer will sell for about $2,000 to $3,000 more. However, on the other hand, if the area in which the private systems are beginning to experience some trouble, I would estimate that the public systems could add $5,000 to $10,000. In the case of 855 Orange Street it was $13,100 ®. We experienced some difficulty in this assignment because our first research and analysis (Table One) produced no results. It flies in the face of logic. So we started to back track and redid our thinking on the type of comparables we can use. It seems to me that if a house, or a subdivision, is having well and sewer problems, the value difference would be the cost to cure, i.e., the cost of the city utilities.