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d. UNDERSTANDING OF NEED <br />HLA's standard methodology and approach in appraising the fixtures and equipment of <br />businesses situated on properties to be acquired by public agencies are as follows: <br />* Upon commencement of the engagement, the real estate appraiser(s) is contacted to <br />discuss their approach to the property, as well as ours: in order to avoid duplication of <br />compensation. <br />At the earliest, as well as most appropriate time (which involves coordination with the <br />City), contact letters are sent to the business owners to introduce ourselves, explain our <br />function in the potential acquisition process and encourage their involvement in the <br />appraisal process_ Particularly as it pertains to identifying the fixtures and equipment <br />owned and/or installed by the business. Follow-up calls are placed to arrange field <br />visits. <br />V' Upon arrival on -site, we interview the business owner and/or management regarding the <br />history of the business and the tangible assets owned and request a tour of the facility. <br />f The Caulk of our on -site visit consists of preparing an inventory of the improvements <br />pertaining to the realty and movable equipment. Within our appraisals, we separate <br />improvements pertaining to the realty from movable equipment to better serve the client <br />as well as the other consultants involved in the assignment. <br />Once the field work is complete we utilize generally accepted valuation methodology <br />including primarily the cost approach and the market approach, to estimate the <br />replacement cost new, fair market value in place and salvage/liquidation value of the <br />appropriate items owned by each business. <br />Finally, a narrative report is produced, including pictures. Before the report is delivered. <br />we contact the real estate appraiser again to discuss our improvements list as a final <br />reconciliation to avoid duplication of compensation. <br />Additionally, HLA will coordinate appraisal activities with the City's other consultants, <br />representatives and legal counsel during the appraisal process. <br />Hodges Lacey & Associates is a partnership of two, very experienced appraisers and we are <br />very flexible and highly mobile in terms of availability and responsiveness to small and large <br />projects alike. We appreciate the importance of timely delivery as it can affect the overall <br />acquisition schedule. <br />City Council 28 — 305 5/17/2022 <br />