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ii <br />DAMAGES <br />An analysis of the property remainder after the proposed project indicates no <br />loss in the basic land value or improvement value as a result of the project in the <br />manner proposed. In the "after" condition, the remainder parcel value will remain the <br />same. No damages are indicated. <br />BENEFITS <br />Benefits only serve to offset damages. There are no damages; as such, it was <br />not necessary to analyze benefits as part of the appraisal process. <br />TEMPORARY CONSTRUCTION EASEMENT <br />A temporary construction easement is proposed to allow for construction of the <br />project as proposed. A review of the proposed agreement to assess the degree of <br />encumbrance on the property was completed in order to ascertain which rights the fee <br />owner retains. The impact on value may be a function of the loss of utility, access and <br />use rights to be transferred and the obligations of the parties during the construction <br />period. <br />Acquisition Estimated Area <br />Duration <br />TCE 18 months 650 Sq. Ft. <br />The TCE is intended to allow the contractor onto the site to complete <br />construction -related activities. The area provides the space needed to construct a new <br />sound wall. The presence of the proposed TCE appears to significantly restrict the <br />normal use of the area and a ground rent equivalent to 100% of the market ground <br />rental rate is indicated. <br />Ground Rent Analysis <br />Data to determine appropriate rates of return on land is limited. Ground lease <br />rents are typically based on a percent of the land value. A survey of real estate owners, <br />investors, brokers and developers reflects that the annual ground rent is usually <br />between 6.0% and 8.0% of the total land value. <br />A search for residential ground lease data was made, but none were found. A <br />survey of recent ground lease data reflects rental rates ranging from 6.3% to 8.2% of <br />the land value, which is consistent with the verbal survey data. <br />The rent data reflects the return a property owner expects to earn on their asset. <br />This rate is typically impacted by risk of payment default, division of expenses, lease <br />length, rental rate escalations during the lease term and inflation risk. <br />Kiley Company <br />750-24 <br />