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Home My WebLink AboutItem #12 Acceptance of an Offer to Buy City-owned Property on South Bluford Avenuel k4 l, N I rior iaa AGENDA ITEM COVER SHEET Meeting Date: July 1, 2014 Item # I Q Reviewed By: Contact Name: Al Butler, Support Services Department Director: Contact Number: 407 - 905 -3100, ext. 1543 City Manager: Subject: Acceptance of an offer to buy city -owned property on South Blufofd Avenue. (District 3 — Johnson) Background Summary: At its April 15, 2014 meeting, the City Commission accepted an initial offer from Mr. Satish Somwaru of Help My Auto, LLC, subject to certain terms and conditions, to purchase city property located on South Bluford Avenue. Mr. Somwaru's interest in the property was for construction of a high -end automotive repair facility. Among the imposed conditions are: (1) delivery of an appraisal of the property acceptable to the city; and (2) subsequent revision of the offered purchase price to meet or exceed the appraised value. Mr. Somwaru had 60 days from the date of the City Commission meeting, or until June 16, 2014, to provide the appraisal; this due date was subsequently extended by the City Commission. Once the appraisal was provided to the city, Mr. Somwaru then had 10 days to modify his offer to be at least as much as the appraised value. Alternatively, he could withdraw his offer. Mr. Somwaru provided the appraisal, which showed a market value of $121,000, whereupon he modified his purchase price to $121,000. Closing details have not been proposed. Issue: Should the City Commission accept the offer to purchase by Mr. Somwaru for the South Bluford Avenue property? Recommendations Staff recommends the City Commission accept the offer and authorize the City Manager and City Attorney to make the final negotiations regarding closing costs and complete the transfer of ownership in a timely manner. Attachments: Appraisal completed by David L. Taylor and Mr. Somwaru's modified offer to buy the property. Financial Impact: The sale of property will provide $121,000 in immediate revenue to the city, while the site's development by Mr. Somwaru will increase the property's value and subsequently provide greater ad valorem tax revenue to the city. Type of Item: (please mark with an `x') Public Hearing Ordinance First Reading Ordinance Second Reading _ Resolution X Commission Approval Discussion & Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by For Clerk's Dept Use: Consent Agenda Public Hearing Regular Agenda Reviewed by 2 N/A N/A N/A N/A Taylor Appraisal Company Appraisers Consultants Realtor An Appraisal Report of A Vacant Land Parcel, Located On The West Side of Bluford Avenue, 700 Feet South of Geneva Street Ocoee, Orange County, Florida Effective Date of Value May 1, 2014 Date of Report June 11, 2014 Prepared For Satish Somwaru 805 Mary's Park Place, # 4 Winter Garden, FL 34787 Prepared By David L. Taylor, MAI Taylor Appraisal Company Log No. 2014180 Taylor Appraisal Company Appraisers Consultants Realtor David L. Taylor, MAI President June 11, 2014 Satish Somwaru 805 Mary's Park Place, # 4 Winter Garden, FL 34787 Re: Bluford Avenue Vacant Land Parcel, Ocoee, Orange County, Florida Dear Mr. Somwaru: 966 Wildflower Way Longwood, Florida 32750 (407) 331 -0400 Fax: 888 - 683 -8067 In accordance with your request, I have prepared an appraisal report of the above referenced property. I have personally inspected the property and have collected market information which has been used in formulating an opinion of value. The accompanying report provides a summary of the Appraiser's analysis and rationale for the conclusions presented therein. This property is legally and physically described within the text of the report. The purpose of the appraisal was to estimate the market value of the fee simple interest in the subject property, as of the effective valuation date, May 1, 2014. This report has been prepared to assist the client in establishing a purchase offer for the property. The report is not intended for any other use. The intended user of this report is Satish Somwau. The site is irregular in shape and contains about 52,503 square feet or 1.21 acres of gross land area. The site is encumbered by a drainage easement which contains about 17,942 square feet, or 34% of total site area. Net usable area, excluding the drainage easement, is 34,561 square feet or 0.79 acres. The easement contains open ditches with active water flows. Given the size and shape of the easement and limitations associated with its use, the subject site has been valued based on net useable land area, excluding the easement. Your attention is directed to statements pertaining to Certification and General Underlying Assumptions and Limiting Conditions which are presented within the text of the accompanying report. Additionally, definitions of market value, fee simple interest and other appraisal terms are included herein. This appraisal has been prepared in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), as adopted by the Appraisal Standards Board of the Appraisal Foundation, and in accordance with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. Satish Somwar June 11, 2014 Page Two As a result of my analysis of market information, upon which my conclusion is predicated, it is my opinion that the market value of the fee simple interest in the subject property, as of May 1, 2014, was: ONE HUNDRED TWENTY -ONE THOUSAND DOLLARS ($121,000) This letter of transmittal precedes and is hereby made part of the appraisal report which follows, setting forth the data and reasoning which are used to estimate the value conclusion. Respectfully Submitted, TAYLOR APPRAISAL COMPANY M I M 146, David L. Taylor, MAI, President State - Certified General Real Estate Appraiser RZ 1046 TABLE OF CONTENTS Summary of Important Conclusions ........ ............................... 1 Certification ........................... ............................... 2 Photographs of Subject Property .......... ............................... 3 Property Identification and History ......... ............................... 5 Legal Description ...................... ............................... 5 Description of Appraisal Assignment ....... ............................... 6 Definitions of Important Terms ............ ............................... 7 General Underlying Assumptions and Limiting Conditions ...................... 9 Brief Area Description .................. ............................... 11 Neighborhood/ Location ................. ............................... 13 Site Analysis ......................... ............................... 14 Real Estate Tax Information ............. ............................... 16 Zoning / Future Land Use ............... ............................... 16 Highest and Best Use Analysis ........... ............................... 16 Exposure and Marketing Time ........... ............................... 18 Valuation Procedures .................. ............................... 18 Sales Comparison Approach ............ ............................... 19 EXHIBITS Area Map Neighborhood Map Tax Map Tax Aerial Map Site Sketch With Drainage Easement Flood Map Zoning Map Civil Engineer's Letter With Cost Estimates Comparable Land Sales Map Comparable Land Sale Descriptions Qualifications of the Appraiser SUMMARY OF IMPORTANT CONCLUSIONS Date of Valuation: Owner of Record: Location of the Property: Property Rights Appraised May 1, 2014 City of Ocoee West side of Bluford Avenue, about 700 feet south of Geneva Street, Ocoee, Orange County, Florida Fee simple interest Description of Site: The site is irregular in shape and contains about 52,503 square feet or 1.21 acres of gross land area. A drainage easement, with open ditches and active water flows, encumbers about 17,942 square feet of the subject site, or 34% of total site area. Net usable area, excluding the drainage easement, is 34,561 square feet or 0.79 acres. Description of Improvements: None Zoning /Future Land Use: Zoning: 1 -1, Restricted Manufacturing & Warehousing Future Land Use: Heavy Industrial Highest and Best Use: Commercial use with office /industrial flex considered a secondary use Value Indications: Cost Approach: Not Used Income Capitalization Approach: Not Used Sales Comparison Approach: $121,000 Value Conclusion: Marketing Period: Exposure Time: Hypothetical Condition(s) Extraordinary Assumption(s) $121,000 Nine to twelve months. Nine to twelve months. None. None. 1 CERTIFICATION I hereby certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analysis, opinions, and conclusions. 3. 1 have no present or prospective interest in the property that is the subject of this report, and I have no personal interest with respect to the parties involved. 4. 1 have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. 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. 7. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 8. 1 have made a personal inspection of the of the property that is the subject of this report. 9. No one provided significant real property appraisal assistance to the person signing this certification. 10. The reported analysis, opinions, and conclusions were developed, and this report has been prepared in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 12. As of the date of this report, I have completed the continuing education program of the Appraisal Institute. 13. Pursuant to the Florida Statues, Chapter 475, Part II, the State of Florida has enacted certification of real estate appraisers. David L. Taylor, MAI has met these requirements and is certified by the State of Florida, as of the date of this report. David L. Taylor, MAI State - Certified General Real Estate Appraiser RZ 1046 2 PHOTOGRAPHS OF SUBJECT PROPERTY Front View of Subject Property From Bluford Avenue, Looking Northwest Front View of Subject Property From Bluford Avenue, Looking Southwest 3 PHOTOGRAPHS OF SUBJECT PROPERTY Street View, Looking North Along Bluford Avenue, Subject Property To Left Street View, Looking South Along Bluford Avenue, Subject Property To Right In PROPERTY IDENTIFICATION AND HISTORY Identification of the Property The subject property is a vacant land parcel located on the west side of Bluford Avenue, 700 feet south of Geneva Street in Ocoee, Orange County, Florida. The site is irregular in shape and contains about 52,503 square feet or 1.21 acres. Additional information identifying the subject property is provided below. Mailing Address: South Bluford Avenue (address not provided) Ocoee, Florida 34761 Tax Identification No.: Orange County County Tax Roll 19- 22 -28- 0000 -00 -080 Owner of Record: City of Ocoee Three Year History of the Property According to the Public Records, there have been no sales transactions involving the subject property within the past three years. In December 2013, an unsolicited offer of $60,000 was submitted to purchase the north 0.452 acres of the subject site by the owner of the adjoining retail center on the north. His intended use of the site was to provide additional parking for his adjoining property. This offer was rejected, as the reported intent of the city of Ocoee was to sell the entire property. The client for this assignment has submitted a $70,000 purchase offer to acquire the subject site, with the final price offering based upon the valuation estimate of this assignment. The property is not currently listed for sale, nor has it been listed for sale. There is no asking price for the property. Information regarding title history or abstract of title was not provided for this assignment. LEGAL DESCRIPTION A legal description for the subject site, as well as, a legal description for the drainage easement encumbering the property were not available for use in this assignment. Therefore, the following abbreviated legal description, obtained from the Orange County Property Appraiser's office, has been used. BEG S 88 DEG W 484.73 FT & S 25 DEG E 719.27 FT FROM NE COR OF SE1/4 TH S 25 DEG E 401.03 FT S 150.48 FT N 35 DEG W 545.01 FT N 64 DEG E 142.85 FT TO POB IN SEC 19- 22 -28. 5 DESCRIPTION OF APPRAISAL ASSIGNMENT Purpose of the Appraisal The purpose of the appraisal was to estimate the market value of the fee simple interest in the subject property, as of the effective valuation date, May 1, 2014. Intended Use of the Appraisal This report has been prepared to assist the client in establishing a purchase offer for the property. The report is not intended for any other use. Intended User of the Appraisal Report The intended user of this report is Satish Somwau. Use of the report by others is not intended by the Appraiser. Scope of the Appraisal The scope of the appraisal requires compliance with the Uniform Standards of Professional Appraisal Practice, as promulgated by the Appraisal Standards Board of the Appraisal Foundation, and the Guide Notes to the Standards of Professional Appraisal Practice adopted by the Appraisal Institute. These standards contain binding requirements and specific guidelines that deal with the procedures to be followed in developing an appraisal, analysis, or opinion. These uniform standards establish requirements for communicating the Appraiser's analyses, opinions, and conclusions in a manner that will be meaningful and not misleading in the marketplace. Property data such as land /building size, location, quality, and zoning are considered and presented in this report. Market data, including land sales, and supply /demand characteristics are among the items researched, analyzed, and presented. These data are used to consider the highest and best use of the subject property and to estimate market value. The Appraiser lacks the knowledge and experience with respect to the detection and measurement of hazardous substances. Therefore, this assignment does not cover the presence or absence of such substances as discussed in the General Underlying Assumptions and Limiting Conditions section. However, any visual or obviously known hazardous substances affecting the property will be reported and an indication of its impact on value will be discussed. on The site is irregular in shape and contains about 52,503 square feet or 1.21 acres of gross land area. The site is encumbered by a drainage easement which contains about 17,942 square feet, or 34% of total site area. Net usable area, excluding the drainage easement, is 34,561 square feet or 0.79 acres. The easement contains open ditches with active water flows. Given the size and shape of the easement and limitations associated with its use, the subject site has been valued based on its net useable land area, excluding the easement. The documentation necessary to arrive at the value is considered in this appraisal report. The market data has been collected, confirmed, and analyzed. Comparable sales were chosen for their similar highest and best use or comparability, as outlined within the report. In performing this assignment, the three approaches to value (i.e., the Cost Approach, the Income Capitalization Approach, and the Sales Comparison Approach) have been considered in accordance with the General Underlying Assumptions and Limiting Conditions, and Certification Statements, presented herein, as well as, appraisal standards promulgated by the Appraisal Institute and Appraisal Foundation. The Sales Comparison Approach has been used for this assignment but not the Income Capitalization and Cost Approaches. David L. Taylor, MAI, personally inspected the subject property on May 1 and May 29, 2014. DEFINITIONS OF IMPORTANT TERMS Definitions of various important valuation terms follow: Market Value - The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and 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: • Buyer and seller are typically motivated; • Both parties are well informed or well advised and each acting in what they consider their own best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or terms of financial arrangements comparable thereto; and • 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. ' 'Title XI, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( "FIRREK) - United State Treasury Department, Comptroller of the Currency 12CFR part 34.43 (f). 7 Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by governmental powers of taxation, eminent domain, police power, and escheat. 2 Leased Fee Interest - The ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of lessor (the leased fee owner) and the lessee are specified by contract terms contained within th lease. 3 Retrospective Value Opinion - An opinion of value that is likely to have applied as of a specified historic date. A retrospective value opinion is most frequently sought in connection with appraisals for estate tax, condemnation , inheritance tax, and similar purposes. 4 Prospective Value Opinion - A forecast of the value expected at a specified future date. A prospective value opinion is most frequently sought in connection with real estate projects that are proposed, under construction or under conversion to a new use, or those that have not achieved sellout or a stabilized level of long -term occupancy at the time the appraisal report is written. 5 Highest and Best Use - The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Hypothetical Condition - That which is contrary to what exists, but is supposed for the purpose of analysis. Comment Hypothetical conditions assume conditions contraryto know facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.' Extraordinary Assumption - An assumption, directly related to a specific assignment, which, if found to be false, could alter the Appraiser's opinions or conclusions. Comment: Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the 2 The Dictionary of Real Estate Al 3 The Dictionary of Real Estate Al ' The Dictionary of Real Estate Al ' The Dictionary of Real Estate Ar ' The Dictionary of Real Estate Ar ' Uniform Standard of Profession-, > raisal, Fourth Edition, 2002, Published by the Appraisal Institute, Page 113 raisal, Fourth Edition, 2002, Published by the Appraisal Institute, Page 161 rp sisal Fourth Edition, 2002, Published by the Appraisal Institute, Page 248 i raisal, Fourth Edition, 2002, Published by the Appraisal Institute, Page 224 raisal, Fourth Edition, 2002, Published by the Appraisal Institute, Page 135 it Appraisal Practice 2010 -2011 Edition, Page U -3 i property, such as market conditions or trends; or about the integrity of data used in an analysis. GENERAL UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS Legal Matters The legal description given to the Appraiser is presumed to be correct, but has not necessarily been confirmed by survey. The Appraiser assumes no responsibility for such a survey, or for encroachments or overlapping or other discrepancies that might be revealed thereby. The Appraiser renders no opinion of legal nature, such as to ownership of the property or condition of title. The Appraiser contemplates that the title to the property to be marketable; that, unless stated to the contrary, the property is appraised as an unencumbered fee which is not used in violation of applicable ordinances, statutes, or other governmental regulations. Unapparent Conditions Unless otherwise stated in this report, the Appraiser contemplates that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable than otherwise comparable property. The Appraiser assumes no responsibility for such conditions orfor engineering which might be required to discover such conditions. Hazardous Materials Unless otherwise stated herein, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the Appraiser become aware of such during the Appraiser's inspection. The Appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The Appraiser, however, is not qualified to test such substances or conditions. The presence of such substances, such as asbestos, formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property. The value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for the expertise or engineering knowledge required to discover them. ' Uniform Standard of Professional Appraisal Practice 2010 -2011 Edition, Page U -3 9 It is the position of the Appraisal Institute that any duty and liability placed on the Appraiser be commensurate with the level of knowledge, training, and experience required of the average Appraiser in the normal course of appraising real property for market value determinations. This should reflect the Appraiser's frame of reference, not the services that only an environmental engineer or comparable expert is equipped to perform. Americans with Disabilities Act (ADA) The Americans with Disabilities Act ( "ADA ") became effective January 26, 1992. The Appraiser has not made a specific compliance survey and analysis of the subject property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the subject property. Since the Appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA in estimating the value of the property has not been considered. Information and Data The information and data, supplied to the Appraiser by others and considered in the valuation, is from sources believed to be reliable, but no further responsibility is assumed for its accuracy. It is assumed data or information provided from the owner, representatives of the owner, or the client is accurate and correct; however, in the event that evidence to the contrary is presented, the Appraiser reserves the right to recertify the value opinions set forth herein. Use of the Appraisal Possession of the report does not carry with it the right of publication. The appraisal report may not be used for any purposes, other than for that which it is made, without written permission of the Appraiser. All the valuations in the report are applicable only under the stated program of the highest and best use and are not necessarily applicable under other programs of use. The distribution of the total valuation in this report between land and improvements is applicable only as a part of the whole property. The land value, or the separate value of improvements, must not be used in conjunction with any other appraisal or estimate and is invalid if so used. 10 Any sketches included in the report are only for the purpose of aiding the reader in visualizing the property and are not necessarily as a result of survey. The Appraiser's duties, pursuant to his employment to make the appraisal, are complete upon delivery and acceptance of the appraisal report. Disclosure of the contents of this report is governed by the ByLaws and Regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the Appraiser or firm with which he is connected, or any reference to the Appraisal Institute or to the MAI designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication without prior written consent and approval of the author. An appraisal related to an estate in land that is less than the whole fee simple estate applies only to the fractional interest involved. The value of this fractional interest plus the value of all other fractional interest may or may not equal the value of the entire fee simple estate considered as a whole. An appraisal report related to a geographical portion of a larger parcel is applied only to such geographical portion and should not be considered as applying with equal validity to other portions of the larger parcel or tract. The value for such geographical portions plus the value of all other geographical portions may or may not equal the value of the entire parcel or tract considered as an entity. The Appraiser will not be required to give testimony or appear in court because of having made this appraisal, with reference to the properties in question, unless arrangements have previously been made thereof. BRIEF AREA DESCRIPTION The metropolitan area encompassing the subject property is known as the Orlando - Kissimmee- Sanford Metropolitan Statistical Area (MSA). This central Florida region includes Orange, Seminole, Osceola and Lake counties and the city of Orlando represents the largest and principal municipality. The Orlando- Kissimmee - Sanford MSA is approximately 50 miles west of the Atlantic Ocean, 75 miles east of the Gulf of Mexico and 190 miles south of the Florida /Georgia line. Highway accessibility is good via U.S. Interstate 4 which runs northeast to southwest through the metropolitan area. This highway also connects to U.S. Interstate 95 at Daytona Beach and Interstate 75 near Tampa, providing convenient access to other areas of the state. The Florida Turnpike links Orlando with other state regions. This toll road connects Orlando with U.S. Interstate 75 north of Leesburg, in Wildwood and extends southerly to 11 Miami. There are also numerous local arteries which provide convenient access to various portions of the metropolitan area. The 2013 population for the Orlando- Kissimmee - Sanford MSA was 2,225,730 having increased from 2,139,615 in 2010. This is the 26th largest metropolitan statistical area in the United States, the 5th largest metropolitan area in the Southeastern United States, and the 3rd largest metro area in Florida. Between 1976 and 1990, the area grew quickly, due primarily to net migration. Since that time a slower growth pace has occurred, with a significant slow down occurring in recent years prompted by a national depression. The economic base of the area has changed significantly over the last forty years. Historically, the area was known for its prime citrus groves. The arrival of Martin Marietta, now known as Lockheed Martin, a major employer in the area, as well as, construction of Disney World plus development of many tourist related improvements was an impetus for change from dependence on agriculture to a more diversified economy. Employers are varied, and industries range from low paying service employers (Walt Disney Enterprises) to higher paying technology oriented employers (Lockheed Martin). The area is home to the University of Central Florida, the nation's 2" largest university, based on enrollment, and the Orlando International Airport, an airport of national and international importance. Within the last six years, the area economic climate declined significantly, consistent with the national economy, reflecting heightened unemployment and depressed real estate markets. However, gradual recent improvement has been experienced for the local residential real estate market. Likewise, the area's office, warehouse and retail commercial space markets, which experienced depressed sales and rents, have exhibited recovery. Local county governments are governed by County Commissions which are subject to popular election. Orlando is the largest city in the area and is governed by a mayor - council form of government. Most of the small municipalities have an elected city council and an appointed city manager. These forms of local government have had good success and are accepted by the populace. Future growth will also likely place some stress on local government services such as water and sewer, roads, police /fire protection and schools. This is a concern that is being addressed by various governmental agencies. The collection of impact fees has helped to provide the needed funds for highway improvements and other services/ infrastructure. Improvements to Interstate 4 and roadway expansion projects by the various counties and the Orlando- Orange County Expressway Authority have also helped to improve roadway needs. Overall, the outlook for the Orlando metropolitan area is for economic improvement and continuing recovery in real estate markets from historic market declines. 12 NEIGHBORHOOD / LOCATION The subject neighborhood is located in western Orange County within the city of Ocoee. The neighborhood is bordered on the north by Silver Star Road, on the south by Colonial Drive (State Road 50) on the east by Clark Road, and on the west by the Daniel Webster Western Expressway (State Road 429) a limited access toll road. The neighborhood is improved with a mixture of industrial, commercial and residential properties. The neighborhood has experienced transition from agricultural and rural residential land uses to various industrial, commercial and higher density residential uses. Important north -south routes serving the neighborhood include the Daniel Webster Western Beltway (State Road 429), Ocoee - Apopka Road (State Road 437) Maguire Road (State Road 439), Bluford Avenue and Clark Street, while important east -west routes serving the neighborhood include Colonial Drive (State Road 50), Story Road, White Road and Silver Star Road. Additionally the confluence of the East - West Expressway (State Road 408) with the Florida Turnpike and Daniel Webster Western Beltway (State Road 429), significantly enhance the importance of the neighborhood as hub of connecting transportation routes. The subject neighborhood occupies a position of growing importance within the metropolitan area, being within a path of expanding growth from Orlando on the east, Windermere on the south and Apopka on the north. Established residential areas exist in the neighborhood, east of Bluford Avenue. West of Bluford Avenue are established and growing areas oriented to industrial, warehousing and auto sales /auction use. Significant commercial development has occurred along Colonial Drive in the area of the subject neighborhood, as well as, neighborhoods to the east and west.. Adjoining the subject property to the north is a retail center and to the west of the subject is vacant land plus industrial /flex uses. South of the subject is vacant land. Across Bluford Avenue from the subject property are various office and service uses including veterinary clinic plus auto repair and monument sales business. Recovery from the past economic downturns is exhibited in the local residential, commercial and industrial real estate markets, with improved demand for retail, office and industrial space and residential dwellings. Overall, the neighborhood represents an area of mixed uses which benefit from the location of the nearby employment centers and key transportation routes. Signs of recovery from past the market downturn is evident and the longer term outlook for the neighborhood is favorable. 13 SITE ANALYSIS The subject site has been analyzed with regard to such items as its physical characteristics and supporting infrastructure. This analysis plus review of zoning /land use requirements, aids in understanding the subject property, and in organizing data which will be used in estimating the highest and best use of the site. The subject site is located on the west side of West side of Bluford Avenue, about 700 feet south of Geneva Street. It is irregular in shape and contains, according to the Orange County Property Appraiser's office, 52,503 square feet of land are area, or 1.21 acres. The site has 401.03 feet of road frontage, 142.85 feet along its north boundary, 545.01 feet along its west or rear boundary and 150.48 feet along its south boundary. Information regarding property size and dimensions was obtained from the Orange County Property Appraiser's office, as a survey and legal description of the property was not available for this assignment. The site is encumbered by a drainage easement, along the west boundary and south portion of the property. Within this easement is an open drainage ditch along the west boundary of the site, as well as, a drainage canal /ditch, extending in an east -west direction, at the south end of the site. The latter waterway extends under Bluford Avenue. The land area within the drainage easement is estimated to be about 17,942 square feet, or 34% of total site area. The usable area of the site, excluding the drainage easement is estimated to be 34,561 square feet, or 0.79 acres. A drainage ditch also exists along the west side of Bluford Avenue in front of the subject site. Site access if available from Bluford Avenue. The area of the easement was estimated using data and mapping tools from the Orange County Property Appraiser's website. Copies of a tax map and an aerial for the subject site are presented in the Exhibits section to assist the reader in visualizing the shape and orientation of the subject property. Additionally a site sketch depicting the property with drainage easement is also provided in the Exhibits section. The subject site is has a gradual downward sloping topography from north to south. Soil and subsoil tests were not performed as part of this appraisal and a report concerning the sub soil conditions has not been provided for this assignment. According to the city Future Land Use Map, a small portion of site at the southerly end of the property is designated as conservation and appears to be within the southerly easement area. According to the FEMA flood zone map with panel # 12095CO220F, dated September, 25 2009, the subject site is located within flood zone AE. This a designated special flood hazard area, where base flood elevations are determined for the 1 % annual chance flood (100 -year flood), also known as the base flood, which is the flood that has a 1% chance of being equaled or exceeded in any given year. This special flood hazard area is the area subject 14 to flooding by the 1 % annual chance flood and would most likely require flood insurance if developed. A flood map of the site is presented in the Exhibits section. Water utility service is provided to the subject, but no sewer service. Use of septic tanks is not permitted. The cost of providing sewer service to the subject has been estimated by a consulting civil engineer to be about $34,600, not including surveying, design and permitting fees. This amount includes constructing a on -site lift station and extending a 4" force main northward along Bluford Avenue, then west along Geneva Street to a connection at Maguire Road. Additional costs for surveying the force main extension area, design and permitting were estimated by the engineer to be approximately $12,000 to $13,000. Adding these to the $34,600 costs indicates total costs of about $47,000, rounded. A copy of the consulting engineer's letter with cost estimates is presented in the Exhibits section. It should be noted, that alternative ways of providing sewer service would include connection with the lift station at the adjoining property to the north, or extending a connecting line westward across private property to the sewer main on Maguire Road. The engineer reported that these alternatives were not considered due to the uncertainties and potential problems of favorably negotiating cost effective outcomes. The engineer's letter also includes costs for enclosing the drainage ditch along the west boundary of the site in order to enhance development use potential, as the site is shallow in depth (front to rear of site) and landscape /building setback requirements diminish the usable area suitable for development. Constructing building improvements within the drainage easement is not permitted, however, parking, driveway and landscape site improvements would be permitted, provided associated ditch areas are properly enclosed with pipe to allow unimpeded water flow. Additionally, the engineer has provided cost estimates for enclosing part of the front drainage ditch along Bluford Avenue for ingress and egress. The engineer's cost estimate for enclosing the rear ditch with 36 concrete pipe is $21,950, including manhole, while the cost for providing concrete pipe in the front ditch along Bluford Ave is $5,900. In summary, excluding the drainage easement, the site has adequate characteristics in terms of size, shape, orientation, access and availability of water service to support various uses. However, in order to allow development, sewer service will have to be provided and the flood prone characteristic of the site addressed. The land area encumbered by the drainage easement, with open ditches with active waterflows, has negligible utility for a user of the remainder of the site. The restrictions imposed by the drainage easement are not typical in the market and none of the comparable sale properties used in this report have similar easements. Recognizing these conditions, the subject site has been valued herein relying upon the usable area of the site, excluding the drainage easement. 15 The subject property is identified as tax parcel number 19- 22 -28- 0000 -00 -080. Since the subject is owned by the City of Ocoee, no taxes are due. If the site were privately owned, the taxes for 2013 would have been $2,025.07. The proposed assessment for 2014 is $105,006. Below is a summary of this information. SUBJECT TAX PARCEL NUMBER Tax ID: 19- 22 -28- 0000 -00 -080 2013 Total Assessed Value $105,006 2013 Ad Valorem Taxes If Private) Owned $2,025.07 ZONING / FUTURE LAND USE The subject property is zoned 1 -1, Restricted Manufacturing and Warehousing District, within the city of Ocoee and the future land use designation for the site is Heavy Industrial. The 1 -1 district is intended primarily for manufacturing and assembly plants and warehousing that are conducted so the noise, odor, dust and glare of each operation is completely confined within an enclosed building. These industries may require direct access to rail, air or street transportation facilities; however, the size and volume of the raw materials and finished products involved should not produce the volume of freight generated by the uses of the general industrial districts. Buildings in this district should be architecturally attractive and surrounded by landscaped yards. This district is primarily intended for areas shown on the Future Land Use Map as "Light Industrial." Permitted uses include a variety of industrial uses plus commercial uses such as retail sales, professional offices, clinics, convenience stores, restaurants, motels, theaters, furniture stores, gasoline stations, veterinary hospitals /kennels and various other business services. The Heavy Industrial future land use designation for the site does not impose a restriction on development of the subject with the various permitted industrial and commercial uses. HIGHEST AND BEST USE Highest and best use is defined as 1) The reasonable and probable use that supports the highest present value of vacant land or improved property, as defined, as of the date of the appraisal. 2) The reasonably probable and legal use of land or sites, as though vacant, found to be physically possible, appropriately supported, financially feasible, and that results in the highest present land value. 3) The most profitable use. 16 This definition applies to the highest and best use of land, as if vacant. It is recognized that in cases where a site has existing improvements, the highest and best use, as if vacant, may be different from the highest and best use, as improved. The existing use will continue, however, unless and until land value in its highest and best use, as if vacant, exceeds the total value of the property in its existing use. Highest and Best Use, As If Vacant Physically possible uses are those uses which could be physically placed on the subject site. These uses change with the size, shape, soil, and terrain of the property. This test also considers whether public utilities are available to the site. The subject site is irregular in shape, contains a land area of approximately 52,503 square feet, or 1.21 acres and has adequate site access. The usable area of the site, excluding drainage easement is 34,561 square feet, or 0.79 acres. The subject site has various known disadvantages relating to the presence of a drainage easement with open ditches, conservation designation, flood prone designation and lack of sewer utility service. Also, the shape of the site with its shallow depth and prevailing municipal landscape /building setback requirements provides additional challenges. A review of site development potential by a civil engineer, employed by the client, indicates the presence of these site conditions and related costs for addressing these conditions, as was previously discussed in the Site Description section. Legally permissible uses are those uses which are legally allowed on the subject site. These vary with the type of zoning, building codes, deed restrictions, and environmental restrictions imposed on the subject site. As discussed earlier the subject site has a industrial zoning and heavy industrial land use classification within the city of Ocoee, which would permit a variety of industrial, commercial and retail uses. The third test of highest and best use, that of being financially feasible, evaluates those uses which are both physically possible and legally permissible and which are determined to generate a positive return to the property. A return is positive if the income of the property is greaterthan the property's operating expenses. The legally permissible uses noted above are physically possible on the subject site and are considered to be a financially feasible use, pending recovery of the market. Over the years, relatively good demand by investors and owner /users has resulted in many successful industrial and commercial developments in the immediate and general market area of the subject property. However, past economic downturn had resulted in diminished demand for industrial /commercial space, lower rents and higher vacancies. As the market has exhibited signs of recovery, the support for future industrial and commercial use at the subject the property is now available. Recognizing this improving trend and supported by the existence of adjoining and nearby commercial uses, the highest and best use of the site, is estimated to be for commercial use with office /industrial flex considered a secondary use. 17 EXPOSURE AND MARKETING TIME Prior to the sale of a property, it is usually exposed on the open market for a period of time before a buyer is found and closing occurs. Exposure time for the subject is estimated to be 10 to 12 months. This is also considered to represent the marketing time for the subject. These estimates are based on data related to market transaction contained within the Appraiser's files and discussions with market participants. VALUATION PROCEDURES Estimating the market value of real property involves a systematic process in which the problem is defined, the work necessary to solve the problem is planned, and the required data is gathered, classified, analyzed and interpreted into an estimate of market value. Traditionally, there are three approaches utilized in the valuation of real property, the Cost Approach, the Income Capitalization Approach and the Sales Comparison Approach. The Cost Approach provides a value indication, which combines the value of the land under its highest and best use, plus the depreciated replacement or reproduction cost of the improvements. The Cost Approach is based on the principal of substitution, which states that no prudent person would pay more for a property than the cost to develop an equally desirable substitute property of similar utility. The basic steps of the Cost Approach are to estimate the replacement cost of the improvements, less accrued depreciation caused by physical deterioration, functional deficiencies or superadequacies and any adverse economic influences external to the property. Added to this is an appropriate amount for developer's overhead and profit and the value of the land. This approach is considered to provide a good indication of the upper end of value, especially when the building improvements are newer with little accrued depreciation. The Income Capitalization Approach is concerned with the present worth of future benefits of ownership, generally identified by the amount of net income the property will produce during an anticipated holding period and receipt of sale proceeds at the end of the period. The Income Capitalization Approach method relies primarily upon the capitalization process. The steps utilized in this approach include estimating potential gross income, subtracting a market derived vacancy and collection loss and other appropriate expenses to arrive at the net operating income. The net operating income is capitalized into an estimate of value by using a market derived capitalization rate extracted from comparable sales, or obtained from other market sources such as investor surveys, or use mortgage- equity techniques suitable in calculating capitalization rates reflective of the market. The Sales Comparison Approach focuses on comparison of the subject property with similar properties that have sold recently, or for which listing prices or offering prices are known. This approach is based on the premise that an informed purchaser would pay no more for a property than the cost or amount to acquire an equally desirable substitute property with the same or similar utility. The information on typically comparable properties is used, and comparisons are made to estimate a probable price at which the subject property would sell for if offered on the market. Preferably all properties are in the same area or in similar neighborhoods. This approach is most reliable when an active market provides sufficient quantities of sales data which can be verified from authoritative sources. Market supported adjustments are necessary to the comparable sales in many instances since no two properties are identical. The last step in the appraisal process is the consideration of the value indications derived from each of the approaches. A final value conclusion is estimated based upon a reconciliation of the value indications from each approach. Since the subject property is a vacant parcel of land, only the Sales Comparison Approach has been used in this assignment. SALES COMPARISON APPROACH The Sales Comparison Approach involves a comparison of the subject property with similar properties which have recently sold in the same or competitive market. The approach is based primarily on the principle of substitution which states, when several commodities or services with substantially the same utility are available, the lower price attracts the greatest demand and widest distribution. Alternatively, a prudent investor /purchaser would not pay more to acquire a given property in the market, considering that an alternative property may be purchased for less. The comparable land sales data summarized on the following page have been used as a basis for estimating the land value of the subject property. A map indicating the locations of the comparable properties is presented in the Exhibits section, along with more detailed descriptions of each comparable sale property. Additionally, as previously discussed in the report, the site is irregular in shape and contains about 52,503 square feet or 1.21 acres of gross land area. The site is encumbered by a drainage easement which contains about 17,942 square feet, or 34% of total site area. Net usable area, excluding the drainage easement, is 34,561 square feet or 0.79 acres. The easement contains open ditches with active water flows that can be used for site improvements only after enclosing the ditch areas with pipe that do not impede water flows. Piping can be a costly process and would most likely only be undertaken when necessary in areas close to development on the site. Given the size and shape of the easement and the use limitations that it imposes, the subject site has been valued herein based on its net useable area, excluding the easement. 19 LAND VALUATION - SALES COMPARISON APPROACH SUMMARY Subject Sale 1 Sale 2 Sale 3 Sale 4 Address Bluford Avenue 640 Garden Com 1450 Good Homes Rd W. Colonial Dr 2851 Weston Ln City Ocoee Winter Garden Orange County Ocoee Orange County Date of Sale Nov. 22, 2013 Feb. 12, 2014 Sept. 5, 2013 July 11, 2013 Sales Price $170,000 $115,500 $412,500 $417,000 Shape Irregular Generally Rectangular Generally Rectangular Generally Rectangular Rectangular Size - Net SF Area 34,561 42,301 17,995 46,787 64,072 Price / Square Foot $4.02 $6.42 $8.82 $6.51 Land Sale Adjustments Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Adjustment $0 $0 $0 $0 Financing Terms Market Market Market Market Adjustment $0 $0 $0 $0 Conditions of Sale Arms Length Divorce Arms Length Arms Length Adjustment $0 $17,500 $0 $0 Market Conditions Typical Typical Typical Typical Adjustment $0 $0 $0 $0 Adjusted Price /SF $4.02 $7.39 $8.82 $6.51 Other Adjustments Location Good Inferior Better Superior Better Adjustment 10.0% -5.0% -30.0% -15.0% Land Size /Shape 42,301 17,995 46,787 64,072 Adjustment -5.0% -10.0% -5.0% 0.0% Off -Site Retention Not Available Available Not Available Available Not Available Adjustment -15.0% 0.0% -15.0% 0.0% Water /Sewer Utilities Water/ No Sewer Water /Sewer Water /Sewer Water /Sewer Water /Sewer Adjustment -28.0% - 35.0°% -11.0% -11.0% Flood Hazard Zone Zone AE Zone X Zone X Zone X Zone X Adjustment -5.0°% -5.0% -5.0% -5.0% Zoning Industrial /Com. Industrial Commercial Commercial Commercial Adjustment 15.0% 0.0°% 0.0% 0.0% Net Adjustment - 28.0°% -55.0% - 66.0°% -31.0% Adjusted Unit Price $2.89 $3.33 $3.00 $4.49 Estimate of Value Net Land Area X Unit Value = Value Conclusion 34,561 T X $3.50 = $120,964 Value Conclusion, Rounded Amount $121,000 20 Sale 1 consists of an industrial site, containing 42,301 square feet, or 0.97acres, located on the west side of Garden Commerce Parkway, 345 feet south of Story Road in Winter Garden. The property was acquired in November 2013, in an all cash transaction, for $170,000, or $4.02 per square foot of land area. The parcel has 148.53 feet of road frontage and a depth of about 250 feet. The parcel has the benefit of off -site storm water retention and is located within Flood Zone X, which is not a flood prone area. No adjustments were necessary or applied to this comparable sale for differences in property rights conveyed, financing terms, conditions of sale or market conditions. The location of this sale property is considered inferior to the subject, requiring upward adjustment to the subject in the amount of 10 %. It should be noted that being within an industrial park, the comparable sale property is suitably located for industrial use, but is regarded as inferior to the subject as a location for commercial use. The adjustment for differences in land size takes into consideration that larger land parcels typically sell for lower unit prices than smaller parcels and alternatively, smaller parcels tend to sell for higher unit prices than larger parcels. The adjustment for differences in land size has been evaluated based upon the net usable area of the subject site of 34,561 square feet. This amount, excludes the area within the drainage easement which contains about 17,942 square feet, or 34% of total site area. Comparing the subject's net usable land area with the land area of the comparable sale of 42,301, indicates that these amounts are sufficiently similar as to not warrant an adjustment for difference in land size. However, the sale property is considered to have a better shape with adequate site depth when compared to the subject site. Therefore, a downward adjustment was made for this difference in the amount of 5 %. A downward adjustment of 15% was made for the benefit of this comparable's off -site stormwater retention, a feature that is not available at the subject site. The amount of this adjustment corresponds to the typical area required for retention areas in new developments, as reported by the consulting civil engineer previously cited in this report. The subject property has water but no sewer service. Septic tank use is not permissible for the subject property, therefore, sewer service will have to be provided in order to permit development. Since Sale 1 has both water and sewer utility service, downward adjustment was applied to this comparable for the cost of providing sewer service to subject site. As previously discussed in the Site Description section, the cost of providing sewer service has been estimated by the consulting civil engineer to be approximately $47,000. This amount is equivalent to 28% of the purchase price which represents the amount of the adjustment. Downward adjustment was made to this sale as it is located in Flood Zone X , an area of minimal flooding, and one that doesn't require flood insurance. The subject is located in Flood Zone AE, an area where base flood elevations are determined for the 1% annual chance flood (100 -year flood), also known as the base flood, which is the flood that has a 21 1 % chance of being equaled or exceeded in any given year. This special flood hazard area is the area subject to flooding by the 1 % annual chance flood and would most likely require flood insurance if developed. For this reason, downward adjustment of 5% was applied to this comparable sale. Upward adjustment of 15% was applied to the comparable sale, since its zoning classification permits industrial uses and not commercial uses. After adjustment, for the various elements of comparison, the unit price for Sale 1 is $2.89 per square foot. A listing of the foregoing adjustments is presented in summary schedule within this section of the report. Sale 2 represents a commercial site, containing 17,995 square feet, or 0.41 acres, located on the west side of Good Homes Road, 118.5 feet south of White Road in unincorporated Orange County. The property was acquired in February 2014, in an all cash transaction, for $115,500, or $6.42 per square foot of land area. The parcel has 100 feet of road frontage and a depth of about 180 feet. The parcel does not have off -site storm water retention and is located within Flood Zone X, which is not a flood prone area. No adjustments were necessary or applied to this comparable sale for differences in property rights conveyed, financing terms or market conditions. However, upward adjustment of 15% or about $17,500 was applied for conditions of sale, as the sellers were going through marital divorce at the time of sale which promoted a lower sales price. The location of this comparable sale is considered slightly better than the subject, therefore a downward adjustment of 5% was applied for this difference. Comparison of traffic counts provides a basis of support for this adjustment. The average daily traffic count for the subject is 8,906 compared to 12,794 for the sale property. Downward adjustment of 10% was applied to the comparable sale property due to its smaller land size and better shape when compared to the subject property. Off -site storm water retention is not available for the subject property which is a similar characteristic for this comparable sale property. Therefore, no adjustment is required forthis element of comparison. The comparable sale property has the availability of water and sewer service. Therefore, downward adjustment was made to this sale for the lack of sewer service at the subject property. The cost of providing sewer service at the subject is estimated to be $47,000 or 35% of the comparable sale price, which is the amount of the adjustment applied to this sale. Downward adjustment of 5% was applied to comparable sale property for differences in flood zone characteristics. The sale property is within Flood Zone X, which is not a flood 22 prone area, whereas the subject is within Flood Zone AE, a flood prone area which will probably require flood insurance when developed. The subject zoning category of 1 -1, within Ocoee, represents an industrial classification which also permits a wide variety of commercial improvements. Since the sale property has a commercial zoning classification which permits similar commercial uses, no adjustment was necessary for difference in zoning between the subject and comparable sale property. After adjustment, for the various elements of comparison, the unit price for Sale 2 is $3.33 per square foot. Sale 3 represents a commercial site, containing 46,787 square feet, or 1.07 acres, located on the south side of W. Colonial Drive, 375 feet east of Westurn Road in Ocoee Orange County. The property was acquired in September 2013, in an all cash transaction, for $412,500, or $8.82 per square foot of land area. The parcel has 192 feet of road frontage and a depth of about 243 feet. The site is generally rectangular in shape, level in topography and even with road grade. The parcel has off -site storm water retention and is located within Flood Zone X, which is not a flood prone area. No adjustments were necessary or applied to this comparable sale for differences in property rights conveyed, financing terms, conditions of sale or market conditions. Downward adjustment of 30% was applied to this sale for differences in location, when compared to the subject property location. The average daily traffic count for this property is 44,000 versus 8,906 for the subject property. No adjustment was applied to this sale for differences in land area size as the land area for this sale property considered sufficiently similar to the subject's net usable land area, as to no warrant adjustment. However, the sale property is considered to have a better shape with adequate site depth when compared to the subject site. Therefore, a downward adjustment was made for this difference in the amount of 5 %. A downward adjustment of 15% was made for the benefit of this comparable's off -site stormwater retention, a feature that is not available at the subject site. The comparable sale property has the availability of water and sewer service. Therefore, downward adjustment was made to this sale for the lack of sewer service at the subject property. The cost of providing sewer service at the subject is estimated to be $47,000 or 11 % of the comparable sale price, which is the amount of the adjustment applied to this sale. Downward adjustment of 10% was applied to comparable sale property for differences in flood zone characteristics. The sale property is within Flood Zone X, which is not a flood 23 prone area, whereas the subject is within Flood Zone AE, a flood prone area which will probably require flood insurance when developed. The subject zoning category of 1 -1, within Ocoee, represents an industrial classification which also permits a wide variety of commercial improvements. Since the sale property has a commercial zoning classification which permits similar commercial uses, no adjustment was necessary for difference in zoning between the subject and comparable sale property. After adjustment, for the various elements of comparison, the unit price for Sale 3 is $3.00 per square foot. Sale 4 represents a commercial site, containing 64,072 square feet, or 1.47 acres, located at the northeast corner of Forest City Road and Weston Lane in unincorporated Orange County. The property was acquired in July 2013, in an all cash transaction, for $417,000, or $6.51 per square foot of land area. The parcel has approximately 304 feet of road frontage on the east side of Forest City Road and 210 feet of frontage on the north side of Weston Lane. The site is rectangular in shape, level in topography and even with road grade. The parcel does not have off -site storm water retention and is located within Flood Zone X, which is not a flood prone area. No adjustments were necessary or applied to this comparable sale for differences in property rights conveyed, financing terms, conditions of sale or market conditions. Downward adjustment of 15% was applied to this sale for differences in location, when compared to the subject property location. The average daily traffic count for this property is 20,000 versus 8,906 for the subject property. Upward adjustment of 5% was applied to the comparable sale property due to its larger land size, when compared to the net area of the subject property, excluding the drainage easement. The sale property is considered to have a better shape with adequate site depth when compared to the subject site. Therefore, a downward adjustment was made for this difference in the amount of 5 %. These adjustments are offsetting, therefore no size /shape adjustment has been applied for this sale. Off -site storm water retention is not available for the subject property which is a similar characteristic for this comparable sale property. Therefore, no adjustment is required for this element of comparison. The comparable sale property has the availability of water and sewer service. Therefore, downward adjustment was made to this sale for the lack of sewer service at the subject property. The cost of providing sewer service at the subject is estimated to be $47,000 or 11 % of the comparable sale price, which is the amount of the adjustment applied to this sale. 24 Downward adjustment of 10% was applied to comparable sale property for differences in flood zone characteristics. The sale property is within Flood Zone X, which is not a flood prone area, whereas the subject is within Flood Zone AE, a flood prone area which will probably require flood insurance when developed. The subject zoning category of 1 -1, within Ocoee, represents an industrial classification which also permits a wide variety of commercial improvements. Since the sale property has a commercial zoning classification which permits similar commercial uses, no adjustment was necessary for difference in zoning between the subject and comparable sale property. After adjustment, for the various elements of comparison, the unit price for Sale 4 is $4.49 per square foot. The foregoing sales provided adjusted unit prices, ranging from $2.89 to $4.49 per square foot. After review of the data, a unit value conclusion was estimated, giving relatively equal weight to each sale. Based on this analysis, a unit value of $3.50 per square foot has been estimated and applied to the usable area of the site, providing a value conclusion as follows: 34,561 SF x $3.50 /SF = $120,964, Rounded to $121,000 (Equivalent to $2.30 /SF of gross land area) 25 EXHIBITS Area Map Neighborhood Map Tax Map Tax Aerial Map Site Sketch With Drainage Easement Flood Map Zoning Map Civil Engineer's Letter With Cost Estimates Comparable Land Sales Map Comparable Land Sale Descriptions Qualifications of the Appraiser AREA MAP Orange Bend Eustis S eneca : r 13 on Junction Silver Lake l Tj Seminole Springs 10✓tor 452 , -Farms ' •- a d - .. L 11 „ Leesburg ��- Oald 441 Sorrento 46A Ethel o _ 17 o arlfOFd 415 Mount Dora u Sunnyside - ° Mount Plymouth UUekiva Tavares Mo w Upsala „ Canon Cisky Park ll� Ellsworth D'tibrin" 435 Paola f ' I G ,enbriar Mldwa ''`` Hawthorne Lane Park Junction 437 _ E 1`0 1 N L F 0 Yalaha 448 Bay Ridge Lake Mary Sland Camero 10kahumpka -- L-ake Jem Ider Esta s City 561 Errol $ rugs Hovey in the Hills 48 Estates 'ldlrnter "Jones Orange Astatula Springs Larding Blossom- Plymouth Sanlando! Springs ?"— H ° Nehe 'L'ohgwood 71111 owey 441 - 33 Height o popk 19 Lake �� o asselberry 417 >_ South Apopk ; Forest City 436 Clay Island a X Y ° Altamonte do 27 r �;� - -- ;� 455 Paradise Heightsl't d mont ... .......,...p.... S rin s g rsla 'a 565 Q "s ^' Subject Property itland Bertha - ,a Jam or �. Fullers , Alom'a G01 od o Montverde L ^. L; E v Mescotte Minneola Mo ` Winter Ocoee 3 - F L ' Garden n. � 8 �� , ` n II' 5 � 434 JGroveland Sop a Ji' Pine "ills 7 "IR z+ 17 - Clermont 1 , astl e Hill` - 408 Toll Unlon 408 - -. t. Harlem ° :.� Orlovi So 4th 14eightso ulah r Azalea Orange _ Clemont i 1 Mountain i Park 561 439 435- eConway = take l mmerport Edgewood ` La[tils2 Beach Bay Hill 1 545' Oak Pi Pine' V Belle Isle 1- ! Castle 4 3 -_ � ndo I _ f33' ( Doctor" 423 ,.,=' "- VTaft �•, - :_ i,Philli s UNiNiamsburg Sauthchase i 27 ti ,, Vine ' d �/` 17 - o = ' Lake Hart Toll 4i4 B Lake e Buena : 6 417 15 .: 2 .. :........... s 53 "' ;192 = 535 o Eva J Yh F i Y ")sir O av 1988 -2012 iAtr6 A Comoro -r, a-c,pr r. =. s o�Ilers. All r reserveC NEIGHBORHOOD MAP �� 6�r fF —l �c 2 elling A d: nil 9E fI P b 438 11 J e Division St E w OEM ='TD_ Star Rd 438 r - =91 Ocoee '3 IDE _�43111111 ay St El— 5't,?rkP_ L ake or IZ] v LLLL—L, G Smith St E7 Subject Property I d _ of - 7r= : S�o =1 - c) 03 1::1 =- L I�U 1 , �E. 537 E Stor y Rd Story Rd C2_ 2 � ri � Cil W Cft 60 � 50 (D 429 7A Id WinL 7 -626 Fforida's Tpke I Lake B lvd LWy C d S t a l St L- 408 IA Cz 1 4 0 Warrior R Roper Rd J Fk� c her �2 i 4 Lake Al ut, _ C( > L.-Ik R05 e Beulah �" C LL L Q Morton Jones Rd 435 Roberson R d Freedom Park Gathe comratw reor m rwi*m An qv,,,,ereg TAX MAP 87.12 30632 Quality Vaults Quality 15 Vaults Inc 439 o City Of Ocoee 215.2 1 Ex o1ic Car Tran sport rr Carisma.ALItO 4� Wholesale Irwin John W bt "'i AERIAL TAX MAP 4 _v O ` ' \ _ n \ r F \ \ \ \ \ \ i � o \ n a \ ch Im CL OL � "Y _ E �'oN= R R a C N Eu �g E LL .2 W O W o� = � f Q Q O d mN Q � ati .: y g. z o LL d ¢ T, d p d W - am o w W g_ a m Q Q m o ��N � W E- N e- d' Qi �iR�Ri $ - 2N . o V Q p LL =' W i S J Q O p E d t,' 3 y a cf o z V a u. LL � ors s �_ �`��LL x of `' a o a z o c o o �� `( ` gOSP r ' LJ N Z �` r C o II aI Z J Q ��¢ yE y i s 5�Effi.c 2 U W dJ o O LLL U r o 6L O � W 0 $m O fi Q Z w W n o a O O W _ � W i U C a J LL 6S. a w 8613 i fr 3;NS _ Q O a LL 8 N E a m SR Nyam IL f I� N mao 9f w ti rs 4, r Np O •� .� f .► s. o , O N ,> \—J f1 S • _ O j O .../ 49 ram t _ OO d31H. a '� Y o v i 32108 +�N N 0 W law 4 �r - a } W - c a2{�O'J3l1VIJ O Ol=S n W F, +, N - z ilk r— LLJ � �w v ' O z imv sVgdNV8 _ _ �- O 1� aly L V LL 4" } n 3AV SVWOIVd - - 7 1 Q z LLJ'" 1 w °� o W% O,y ORANGE _ Q W 1 o L Z �1WON0� 3AV 33WWISSIN S w 0 J '•� v N z O — d . c• c� _ ,, '_ _ '_ ..�+ � � ,` ' as M m T ... . ZONING MAP 19 TAWI LL ENGINEERING, INC. CIVIL ENGINEERING DESIGN • CONSULTING + PERMITTING TO : Mr. Satish Somwaru C/O Help My Auto 805 Mary's Park Place # 4 Winter Garden, FL, 34787 June 7, 2014 RE : Vacant Lot West Side of Bluford Ave. & Just South of Geneva Street Ocoee, FI_. Dear Mr. Somwaru, Per your request I had evaluated above said property, which consists of 1.12 Acres, for potential development and can conclude that the site is very challengeable to develop due to the drainage easements that exists on the property, the required building and landscape setbacks and the lack of sewer availability Below is the estimated cost of improvements that are needed to bring the site to a minimal and reasonable developable condition. Such improvements to include piping the rear ditch, piping part of the front ditch to allow ingress ; egress and to provide sewer Item # Description uanti!) Unit Unit Cost Total Cost I Lift - Station 1 EA $ 21,000 $ 21,000 2 4"Force Main 1,700 L.F. $ 8 $ 13,600 3 36" RCP 450 L. F. $ 45 $ 20,250 4 24" RCP 100 L. F, $ 35 $ 3,500 5 24" MES 4 EA $ 600 $ 2,400 6 Manhole 1 EA $ 1,700 $ 1,700 TOTAL $ 62,450 It is also important to know that the south part of the site is a drainage easement that receives offsite runoff and is connected to a canal. This area should and must be excluded from any part of future development of the property. Please note that the above costs are only an estimate. I trust this is sufficient for your immediate needs. Please let me know if I can be of any further help. Respectfuliy, /Tawill ;Lngineering, Inc. ' n Faiid Tawill, P.E. { FL. Lic. #i 38845 ) President PA Box 690757 • Orlando, Florida 32869 -0757 • Phone 407- 399 -1161 • Fax 407- 876 -6857 COMPARABLE LAND SALES MAP South Toll 414 Paradise Heightso GQrmICk Rd W Lake A p a l' k a 437 Clarcona a � Fuller OcoeV rn Crown Point § Q 435 LAKE ,. o Subject Property rk Oakland: Johns L ake Harlem Heights 546 T L 07 •r Garden g; Tildenville E St I F: 4 1% _ Beulah Sale 3 &aa's - L*e Pine 536 40 Sale 2 436 434" SEMI NC,LE Orie 434 Gard take L1014n Sale 4 Windermere 4 Mania Cutter Riverside Beggs Rd d Lock h Acres Beach Beach (D o _. 438A 535 � L .�r; r. �u'?i r' r Bay Hill 433 Ro emonC Fairview Lake The Shores reser*O o 441 College Park„ 4=z. . Pine 536 40 Sale 2 rlando 17 Tangent Park Sky Lake,. take L1014n Lake Windermere Cutter port Lake Lake Cain Hills Beach Beach Bessie 535 � L .�r; r. �u'?i r' r Bay Hill L 435 Lake The A CoMoratlon wdw IM reser*O rlando 17 Tangent Park Sky Lake,. COMPARABLE LAND SALE NO. 1 Nd U1M IB %umbnp l,x. I 11 LOCATION: West side of Garden Commerce Pkwy., 345 feet south of Story Road, Winter Garden, Orange County, Florida ADDRESS: 640 Garden Commerce Pkwy., Winter Garden, FL 34787 SALES DATE: November 22, 2013 SELLER: TSM Industrial Park, LLC BUYER: Trink Holdings, LLC LEGAL DESCRIPTION: Lot 18, WINTER GARDEN COMMERCE CENTER PHASE 1, according to the plat thereof, as recorded in Plat Book 72, Page 133, Public Records of Orange County, Florida O.R. BOOK/ PAGE: O.R. Book 10670, Page 3513 PROPERTY RIGHTS CONVEYED: Fee Simple Interest TAX ID NO: 24- 22 -27- 9385 -00 -180 COMPARABLE LAND SALE NO. 1 CONTINUED SITE DATA: 42,301 square foot site (0.97 acres), with 148.53 feet of frontage on the west side of Garden Commerce Pkwy., and approximately 250 feet of depth. Site access provided from Garden Commerce Pkwy. The site is generally rectangular in shape, level in topography and even with road grade; off -site storm water retention is provided. UTILITIES: Water and sewer service available FLOOD MAP DESIGNATION: Zone X, outside 2% annual chance floodplain ZONING/ LAND USE: Zoning - PID - Planned Industrial Development, Winter Garden Future Land Use - MOI - Multi Office, Industrial, Winter Garden HIGHEST AND BEST USE: Industrial TRAFFIC DATA: Data unavailable for Garden Commerce Pkwy, but Story Road, which is 345 feet north of the sale property, has an average daily traffic count of 9,770 vehicles per day. FINANCING TERMS: All cash transaction CONDITIONS OF SALE: Arms length transaction with no unusual conditions of sale SALES PRICE: $170,000 UNIT PRICE: $4.02 per square foot of land area CONFIRMATION: Wilson McDowell, selling broker, May 28, 2014; Other sources: public records and CoStar Comps; Confirmed by David L. Taylor, MAI COMPARABLE LAND SALE NO. 2 85 137 5i 9281 1A'H e_ ROAD teo ) I tm Em ggmy Co n NIHl IW Of od-d. AI LY SfO�w he N V t MaAmnad N 3 4 4 18D 194 LOCATION: West side of Good Homes Road, 118.5 feet south of White Road, unincorporated Orange County, Florida ADDRESS: 1450 Good Homes Road, Orlando, FL 32818 SALES DATE: February 12, 2014 SELLER: Robert and Savitri Vaverchak, husband and wife BUYER: Darryl V. and Natasha Forbes Thorne, husband and wife LEGAL DESCRIPTION: A detailed metes and bounds description being part of Lot 17, ROSEHILL GROVES, as recorded in Plat Book H, Page 146, and more particularly described in OR Book 10705, Page 1741, Public Records of Orange County, Florida O.R. BOOK/ PAGE: O.R. Book 10705, Page 1741 PROPERTY RIGHTS CONVEYED: Fee Simple Interest TAX ID NO: 21- 22 -28- 7668 -00 -170 COMPARABLE LAND SALE NO. 2, CONTINUED SITE DATA: 17,995 square feet site (0.41 acres), with 100 feet of frontage on the west side of Good Homes Road, and approximately 180 feet of depth. Site access provided from Good Homes Road. The site is generally rectangular in shape, gently sloping topography (downward from west to east or back to front) and is above road grade; off -site storm water retention is not provided. UTILITIES: Water and sewer service available FLOOD MAP DESIGNATION: Zone X, outside 2% annual chance floodplain ZONING/ LAND USE: Zoning - C -1, General Commercial, Orange Co. Future Land Use - Commercial, Orange Co. HIGHEST AND BEST USE: Commercial TRAFFIC DATA: Good Homes Road - 12,794 vehicles per day FINANCING TERMS: All cash transaction CONDITIONS OF SALE: Arms length transaction, with seller motivation for a quick sale prompted by marital divorce. According to MLS records, the property had been off and on the market since 2007. The original list price was $399,900, gradually being reduced to $149,900 in April 2013 and going under contract/closing in February 2014. SALES PRICE: $115,500 UNIT PRICE: $6.42 per square foot of land area CONFIRMATION: Gailann Singh, selling broker, June 6, 2014; Other sources: public records, MLS and CoStar Comps; Confirmed by David L. Taylor, MAI COMPARABLE LAND SALE NO. 3 ca it) di!, 1.1ithae1 C. 2 R� 4 � R Salf .x .�9? : .rc Ini a Kapa Hr,spi tah ly LL C LOCATION: South side of W. Colonial Drive (SR 50), about 375 feet east of Westurn Road, Ocoee, Orange County, Florida ADDRESS: W. Colonial Drive, Ocoee, FL 34761 (street number unavailable) SALES DATE: September 5, 2013 SELLER: West 50 Properties BUYER: Michael D. Cavinder LEGAL DESCRIPTION: A detailed metes and bounds description of The West 192.33 Feet of Lot 3, WEST 50 COMMERCIAL, as recorded in Plat Book 70, Page 84, and more particularly described in OR Book 10631, Page 1035, Public Records of Orange County, Florida O.R. BOOK/ PAGE: O.R. Book 10631, Page 1035 PROPERTY RIGHTS CONVEYED: Fee Simple Interest COMPARABLE LAND SALE NO. 3, CONTINUED TAX ID NO: 30- 22 -28- 9172 -03 -001 SITE DATA: 46,787 square foot site (1.07 acres), with about 192 feet of property width along the south side of W. Colonial Drive (SR 50) and an average depth of approximately 243 feet. Site access provided from both W. Colonial Drive on the north and Westurn Road on the south. The site is generally rectangular in shape, level in topography and even with road grades; off -site storm water retention is provided. UTILITIES: Water and sewer service available FLOOD MAP DESIGNATION: Zone X, outside 2% annual chance floodplain ZONING/ LAND USE: Zoning - C3 - General Commercial, Ocoee Future Land Use - Commercial, Ocoee HIGHEST AND BEST USE: Commercial TRAFFIC DATA: W. Colonial Drive - 44,000 vehicles per day FINANCING TERMS: All cash transaction CONDITIONS OF SALE: Arms length transaction with no unusual conditions of sale SALES PRICE: $412,500 UNIT PRICE: $8.82 per square foot of land area COMMENTS: The seller reported that the site was acquired for development of a animal boarding /kennel facility and that closing was delayed about 8 months for development approval. CONFIRMATION: Tom Hewitt, representative of West 50 Properties, on June 5, 2014; Other sources: public records and CoStar Comps; Confirmed by David L. Taylor, MAI COMPARABLE LAND SALE NO. 4 - J zs, `_. .. ._ •raj 210.46 .rte 2W WESTON LN 733.97 M1� LOCATION: Northeast corner of Forest City Road (SR 434) and Weston Lane, Unincorporated Orange County, Florida. ADDRESS: 2851 Weston Lane, Orlando, FL 32810 SALES DATE: July 11, 2013 SELLER: Forest City - Weston Investments, LLC BUYER: Concept Development, LLC LEGAL DESCRIPTION O.R. BOOK/ PAGE: PROPERTY RIGHTS CONVEYED: A detailed metes and bounds description being part of SE 1/4 of Section 33, Township 21 South, Range 29 East, more particularly described in OR Book 10601, Page 9083, Public Records of Orange County, Florida O.R. Book 10601, Page 9083 Fee Simple Interest COMPARABLE LAND SALE NO. 4, CONTINUED TAX ID NO: 33- 21 -29- 2824 -01 -000 SITE DATA: 1.47 acre site (64,072 SF), with about 304 feet of frontage on the east side of Forest City Road (SR 434) and approximately 210 feet of frontage on the north side of Weston Lane. Site access is provided from Weston Lane. The site is rectangular in shape, level in topography and even with road grade; off -site storm water retention is not provided. UTILITIES: Water and sewer service available FLOOD MAP DESIGNATION: Zone X, outside 2% annual chance floodplain ZONING/ LAND USE: Zoning - PD - Planned Development, Orange Co. Future Land Use - Planned Development, Orange Co. HIGHEST AND BEST USE: Commercial TRAFFIC DATA: Forest City Road - 20,000 vehicles per day FINANCING TERMS: All cash transaction CONDITIONS OF SALE: Arms length transaction with no unusual conditions of sale SALES PRICE: $417,000 UNIT PRICE: $6.51 per square foot of land area COMMENTS: After purchase, the site was improved with a Dollar General store, containing 9,094 square feet, which opened for business in April 2014. CONFIRMATION: Matt Cason, representative of Concept Development, LLC, June 4, 2014; Other sources: public records and CoStar Comps; Confirmed by David L. Taylor, MAI QUALIFICATIONS OF APPRAISER DAVID L. TAYLOR, MAI President of TAYLOR APPRAISAL COMPANY Real Estate Appraiser and Consultant 966 Wildflower Way Longwood, Florida 32750 -4045 Telephone (407) 331 -0400 Fax (888) 683 -8067 State Appraisal Certification David L. Taylor, MAI, is currently registered as a Certified General Appraiser (License No. RZ 1046) within the State of Florida. College Education University of Florida - Bachelor of Science Degree in Business Administration -1971; Major in Real Estate and Urban Land Studies; Member of Real Estate and Urban Land Studies Society Professional Education - Appraisal Courses AIREA (1 -A) Basic Principles, Methods & Techniques - 1974 - C * SREA (201) Income Property Valuation & Capitalization - 1975 - C AIREA (1 -B) Capitalization Theory & Techniques - 1975 - E AIREA (6) Investment Analysis - 1979 - C * AIREA (8) Residential Properties - 1979 - C AIREA (2 -3) Standards of Professional Practice - 1983 - A AIREA (10) Market Analysis - 1984 - A * AIREA (1 BA) Capitalization Theory & Techniques, Part A - 1985 - A AIREA (4) Litigation Valuation - 1986 - A * AIREA (SPP) Standards of Professional Practice - 1989 - A Al (SPP) Standards of Professional Practice - Part B - 1992 - C * C = Course & exam passed; E = Exam passed only; A = Attended course only. Real Estate and Appraisal Seminars Attended Numerous seminars attended since 1975, including such seminars as The Uniform Standards of Professional Appraisal Practice, Market Extractions - Income Properties, Rates, Ratios And Reasonableness, American With Disabilities Act, Appraisal Reporting of Complex Residential Properties, Condemnation: Legal Rules & Appraisal Practices, and Depreciation Analysis. QUALIFICATIONS OF APPRAISER, CONTINUED Professional Designations Member of the Appraisal Institute holding the MAI designation, Certificate No. 6092. Employment History Taylor Appraisal Company - President - February, 1986 - Present Secretary /Stockholder - Irwin Appraisal Company - 1982 - 1986 Rex - McGill Realty, Inc. - Appraisal Department - 1980 -1982 Florida Appraisal & Research Services, Inc. - 1974 -1980 Stockton, Whatley & Davin Mortgage Company - Commercial Loan Department - 1973 - 1974 Professional Experience David L. Taylor, MAI has been active in the preparation of valuation studies, narrative appraisal reports and feasibility studies, as well as, consulting assignments. Assignments have included appraisals of a variety of residential, commercial and industrial properties including the following: Planned Unit Developments Subdivisions Vacant Land - Acreage Apartment Complexes Condominiums Office Buildings Commercial Buildings & Sites Retail Properties Shopping Centers Theaters Bowling Alleys Day Care Centers Automobile Dealerships Restaurants Fast Food Restaurants Motels and Hotels Water Bottling Plant Refrigeration Plants Mini - Warehouses Medical - Dental Buildings Hospitals Nursing Homes Adult Congregate Living Facilities Golf Courses Tennis & Health Clubs Service Station Auto Service Centers Trucking Terminal Ranches Plant Nurseries Utility Systems (Water /Sewer Plants) Warehouses, Industrial Parks & Sites QUALIFICATIONS OF APPRAISER, CONTINUED Continuing Education - Recertification The Appraisal Institute conducts a voluntary program of continuing education for its designated members. MAI's who meet the minimum standards of this program are awarded periodic educational certification. David L. Taylor, MAI, is currently certified under this program. Professional Memberships Member of Appraisal Institute State - Certified General Appraisal - Florida License No. RZ 1046 Representative Clientele Provident National Assurance Company Lumbermen's Mutual Insurance Company New York Life Insurance Company Aetna Life & Casualty Company John Hancock Mutual Life Insurance Company Mutual Benefit Life Insurance Company Protective Life Insurance Company Security Life Insurance Company of New York Laurentian Capital Corporation Texaco Shell Oil Sunn Refining & Marketing Company Sun Oil Company Great Western First Family Federal Savings & Loan First Indiana Federal Savings Bank Southeast Bank Barnett Bank Royal Bank of Canada Indiana National Bank Dominion Financial Company Tucker State Bank Century Mortgage Company New Financial Mortgage Corporation Mortgage Guaranty Insurance Company Avatar Properties, Inc. Orlando /Orange County Expressway Authority Major Realty Corporation Dr. P. Phillips Foundation Chicago Title Insurance Orlando Central Park A T & T Communications Central Florida Research Park Holiday Inn Resorts, Inc. Greater Construction Public Storage General Rent -a -Car U.S. Postal Service Keyes Realty Eagle Office Products Epoch Properties Landmark Group Reynolds, Smith & Hills, Inc. National Ambulance Builders Condev Group, Inc. Senior Meadows Retirement Center Seminole County School Board Orange County School Board Orange County Government City of Orlando City of Altamonte Springs City of Casselberry Red Lobster Inns of America Sunley Holdings of America, Inc. Satish Somwaru Help My Auto LLC. 805 Marys Park Place #4 Winter Garden F.L. 34787 321 6639486 J. Fi f&d; b enzfixer - .com City of Ocoee 6/16/14 Re: Property on South Bluford Avenue To Whom It May Concern I am interested in purchasing the property in whole that is currently owned by the City of Ocoee. I have submitted a copy of an appraisal that has been done at my expense to determine value of property. I have revised my previous offer of $70,000 to appraised value of $121,000. Thank you for time and kind consideration in this matter. Best R g rds, �Satish Somwaru OO � �Q ISR gnat Q I Fa the Fount medo ®I� Date PuNshed and Medc a Name SUND JUINF ?.2, 2014 Dh Orlando Sentinel — AdIveMsement or ArV deb NO TICE OR THE P RC11ASE OF PROF RTY OWNED BY THE CITY OF OCOEE Notice is hereby given that the City of Ocoee. Florida, will consider or, unsolicited offer of $121,000 to Purchase the following described real Property, which is currently vacant: Parcel No. 19- 22 -28- 0000 -00 -080 700 Block of South Bluford Avenue, Ocoee, FL 34761 1.205 Acres Zoned 1�1 A Palo I C hearing will be held at the July 1, 2014, meeting of the City Commission of the City of Ocoee beginning at 7:15 pm or soon thereafter fn the City Hall Commission Chambers located at 150 North Lakeshore Drive, Ocoee, FL 34761. Interested parties will be given the opportunity to be heard during the public hearing, after which the City Commission will take up the question of whether to accept the offer. Beth Eikenberry City Clerk ORG2473807 0622201 ".