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'5dtz-;�J\15 <br />MEMO TO: Clerk -Administrator and City Council <br />1 <br />FROM: Director of Public Works/Community Development <br />DATE: July 9, 1985 <br />SUBJECT: APPRAISAL REPORT OF THE HERHST PROPERTY <br />Attached please find a copy of the Ery Herbst appraisal report <br />conducted by Russell Smith & Associates, Inc. <br />To summarize the report, the approximately 22 acres that Ery Herbst <br />owns has been valued by Russell Smith at $10,000 an acre for a <br />total fair market value of the underlying land at $220,000. This <br />report specifically states that no consideration as to the value of <br />the building improvements have been given in preparing this <br />report. This single lot has Perkins Restaurant and the Herbst <br />Warehouse on it. <br />City Code Chapter 42.13 states that a reasonable portion of each <br />proposed subdivision shall be dedicated to the public for public <br />use as parks, playgrounds, public open space or storm water holding <br />areas or ponds, or at the option of the municipality, at its sole <br />discretion, that the subdivider contribute an equivalent amount in <br />cash based on a fair market value of the undeveloped land. <br />I quote this because the issue becomes, does the fair market value <br />of the undeveloped land include the cost of the buildings on that <br />land. The Parks Director has indicated to me that the Parks and <br />Recreation Commission recommends a cash payment. I have requested <br />Attorney Meyers opinion on this issued. <br />RECOMMENDATION: I recommend securing a second appraisal report of <br />this land because the present appraiser in his section entitled, <br />The Valuation Process, states that other land in the area has sold <br />for up to $lu,000 per acre. <br />The City should consider offering Herbst & Sons $220,000 for his <br />land. <br />SWT/bac <br />