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iv <br />Letter of Transmittal – Continued <br /> <br /> <br />Extraordinary Assumptions <br /> <br />The appraised values provided in this report are based on various scenarios from the City of <br />Mounds View. Because none are approved, any user should not rely on them for decision making <br />purposes. The values are only intended to give the city guidance regarding a potential sale price. If <br />the city changes any of the assumptions relied upon in this report the values could differ <br />significantly. <br /> <br /> <br />Hypothetical Conditions <br /> <br />None <br /> <br /> <br />Property Rights Appraised <br /> <br />− Fee Simple Interest: The property is vacant land. As such the appraised value reflects the Fee <br />Simple interest. <br /> <br /> <br />Property Components Appraised <br /> <br />− Real Estate: The appraised value includes the real estate value opinion. <br /> <br />− Furniture, Fixtures, & Equipment (FF&E): The appraised value does not include any values of <br />fixtures, furnishings and equipment. The appraised value reflects real estate only. <br /> <br />− Business Value: The appraised value does not include business value. <br /> <br /> <br /> <br />Highest and Best Use Conclusions <br /> <br />− As Vacant: Develop with a multi-family or commercial use. <br /> <br /> <br />− As Improved: Not applicable as the subject is vacant land. <br /> <br /> <br />Valuation Methodology <br /> <br />The highest and best use of the subject is for apartment or commercial development. <br /> <br />Given the highest and best use, the following approaches are used: <br /> <br />− Cost Approach: Not applied due to subjective depreciation amounts. <br /> <br />− Sales Comparison Approach: Apartment and commercial land sales. <br /> <br />− Income Approach: Not applied as development land is rarely rented in the market. <br /> <br /> <br />