Item 37 - Bristol Street and Memory Lane Intersection Improvements

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ATTACHMENT 3 Valuation of the remainder parcel as part of the whole is measured by subtracting the value of the part acquired from the larger parcel value, as follows: Remainder as a Portion of the Whole Value of the Larger Parcel (Land Only) $5,732,496 Less: Permanent Acquisition (Land Only)-$88,260 Remainder as a Portion of the Whole $5,644,236 The figure above is useful for comparison purposes, with the value of the remainder in the after condition, as the method for estimating damages to the remainder. Value of the Remainder in the After Condition Before Considering Benefits In the after condition, the subject property will continue to function as a 64-unit apartment complex. The 81,893 square feet of land area that existed in the before condition will be reduced to 80,627 square feet in the after condition. Compensation for the permanent acquisitions was previously concluded. One parking space will be lost due to its proximity to the new right of way. Some curative work will need to be done to re-establish the landscaping and fencing as well as the conversion of the parking stall to a landscaped set back area. As part of the project, the City will install a retaining wall along the sloping portion of the property, which is adjacent to the apartment units. The six apartment units along Bristol Street will lose screening and be substantially closer to the public right of way in the after condition. A survey of eight apartment complexes in the area was made to determine if a rental reduction would result due to the proximity of the street. The majority of the property managers indicated no reduction in rent due to little or no vacancy in their complexes. One property manager reports that there is a $45 per month differential in rent between interior and street -facing units. As such, a $45 per month rent reduction will be made for the six units facing Bristol Street in the after condition. Also, one guest parking space will be permanently lost in the after condition. Extra parking spaces at the subject may be rented for $50 per month. A deduction to income will be made in the direct capitalization analysis due to this loss in parking. The value of the remainder is based on the revised income and expenses data concluded in the income approach to value previously (except for real estate taxes which adjust based on different values). The value conclusion remains similar on a price per square foot basis in both the "before" and "after" conditions. Calculations are shown below: Page 8