SA FULL PACKET_2017-10-17 - Laserfiche WebLink

Home Browse Search

,`p\`� EXHIBIT 3 Valbridge Public Pay Parking Lot `1ti1✓/ PROPERTY ADVISORS HIGHEST AND BEST USE limitations on development. The primary limiting factors are typically associated with the zoning of the site and easements, which reduce development potential. The elements associated with these potential influences are summarized below. LEGAL ISSUES Conclusion: The zoning controls the general nature of permissible uses but is appropriate for the location and physical elements of the subject, providing for a consistency of use with the general neighborhood. The location of the subject is appropriate for the uses allowed and a change in zoning is unlikely. There are no known easements, encroachments, covenants or other use restrictions that would unduly limit or impede development of a probable nature. Financially Feasible After determining uses that are physically possible and legally permissible, an appraiser considers uses that are likely to produce an adequate return on investment. All uses yielding a positive return are financially feasible. Feasibility is initially tested through market observation of supply/demand trends and market values. If necessary, a more exacting analysis involves a cost/benefit analysis. Shown below is a summary of the analyses associated with the primary and probable uses determined to be both physically possible and legally permissible. ISSUES OF FINANCIAL FEASIBILITY . - General Plan P (Professional) Zoning P, Professional Value Trend Professional business and Feasibility administrative offices, banks , Permitted Uses medical and dental offices, pharmacies, child care facilities, and freestanding restaurants Probability of Change Unlikely Easements/Regulations None Conclusion: The zoning controls the general nature of permissible uses but is appropriate for the location and physical elements of the subject, providing for a consistency of use with the general neighborhood. The location of the subject is appropriate for the uses allowed and a change in zoning is unlikely. There are no known easements, encroachments, covenants or other use restrictions that would unduly limit or impede development of a probable nature. Financially Feasible After determining uses that are physically possible and legally permissible, an appraiser considers uses that are likely to produce an adequate return on investment. All uses yielding a positive return are financially feasible. Feasibility is initially tested through market observation of supply/demand trends and market values. If necessary, a more exacting analysis involves a cost/benefit analysis. Shown below is a summary of the analyses associated with the primary and probable uses determined to be both physically possible and legally permissible. ISSUES OF FINANCIAL FEASIBILITY . - Demand Stable Supply Balanced Value Trend Increasing Feasibility Currently Positive Maximally Productive Among the financially feasible uses, the use that results in the highest value (the maximally productive use) is the highest and best use. The subject is located within a pocket of office buildings on a minor traffic street. Most of the existing development in the immediate subject neighborhood consists of office uses, multifamily and single family residences. The primary generator of activity in the immediate area is the Orange County Courthouse. Considering the factors outlined above, the maximally productive uses of the property as though vacant would be office. Presently, demand has improved as indicated by a dropping vacancy rate and rising rental rates. However, construction financing is still difficult to obtain and office land availability is limited resulting in low new construction levels. Thus, it is our conclusion that the most maximally productive use of the subject © 2015 VALBRIDGE PROPERTY ADVISORS I Penner and Associates, Inc. Page 24 SA4-56