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VaIbridge <br />EXHIBIT 3 <br />Public Pay Parking Lot <br />Shape <br />HIGHEST AND BEST USE <br />PROPERTY ADVISORS <br />All to Site <br />Highest and Best Use <br />The Highest and Best Use of a property is the physically possible, legally permissible, and financially <br />feasible use that results in the highest value. An opinion of the highest and best use results from <br />consideration of the criteria, noted above under market conditions or likely conditions as of the <br />effective date of value. Implied in the definition is that the determination of highest and best use <br />results from the judgment and analytical skills of the appraiser; that is, the use determined from <br />analysis represents an opinion, not necessarily a fact to be found. In appraisal practice, the concept <br />of highest and best use represents the premise upon which value is based. <br />While improved properties may have a highest and best use different than the existing use, the <br />existing use will generally continue until the land value exceeds the property value at its existing use <br />plus demolition costs. It is not always necessary to determine the highest and best use of an <br />improved property both "As If Vacant' and "As Improved." In many cases, the determination of <br />whether the value as improved exceeds the site value is straightforward, not requiring an opinion of <br />market value for the site. In such cases, a determination of highest and best use of the site (aside <br />from excess land, if present) is neither germane nor required. However, if there is a reasonable <br />question as to whether the site value rises to such a level, then a determination of highest and best <br />use as if vacant is mandated. <br />Analysis of Highest and Best Use As If Vacant <br />In determining the highest and best use of the property site, we examine the potential for: 1) near <br />term development, 2) a subdivision of the site, 3) an assemblage of the site with other land, or 4) <br />holding the land as an investment. <br />Physically Possible <br />Multiple factors affect the uses with which land may be developed. These factors discussed earlier in <br />the Site Description are summarized in the following table, followed by a conclusion as to potential <br />limitations imposed by the physical characteristics. <br />PHYSICAL CHARACTERISTICS <br />Land Area <br />3,929 square feet / 0.09 acres <br />Shape <br />Rectangular <br />Utilities <br />All to Site <br />Visibility <br />Average <br />Flood Plain <br />Shaded X; Flood insurance is not required <br />Soil Conditions <br />No report provided, assumed adequate. <br />Environmental <br />Unknown, No apparent conditions <br />Other <br />None <br />Conclusion: There are no items of a physical nature that would materially limit any reasonable <br />development plan. <br />Legally Permissible <br />Another threshold of highest and best use is what is legally permissible. This analysis considers <br />applicable private restrictions and zoning constraints; and the potential for change of same, historic <br />district controls, urban renewal ordinances, and other possible legal factors that may result in <br />© 2015 VALBRIDGE PROPERTY ADVISORS I Penner and Associates, Inc. Page 23 <br />SA4-55 <br />