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