HomeMy WebLinkAbout05-22-17 City Commission Packet Materials - A3. Ordinance 1969 Provisional, Kirk Park
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Carolyn Poissant – Manager of Trails, Open Space, and Park Development
Mitch Overton – Director of Parks and Recreation SUBJECT: Ordinance 1969 Provisional Adoption, Authorizing the City Manager to Enter Into an Exchange Agreement for the Realignment of a Park Boundary in the West Manor First Addition Subdivision with Privately Owned Tracts,
Providing Contingencies and an Effective Date
MEETING DATE: May 22, 2017
AGENDA ITEM TYPE: Action (Affirmative Vote of 4/5 of Commission Required)
RECOMMENDATION: Staff recommends the Commission hold a public hearing on the
ordinance, consider this staff memorandum, written and spoken public testimony, and
provisionally adopt by a two-third majority (i.e. four affirmative votes) Ordinance 1969
authorizing the City Manager to sign, upon expiration of the 30 day effective period, the Agreement to Exchange Land and subdivision exemption and to take all additional steps necessary to exchange property with BLOCK 6, LLC for the Kirk Park Boundary Line Adjustment
RECOMMENDED MOTION: Having conducted a public hearing on the ordinance I find the
equal exchange of 8117.40 square feet of real property between Kirk Park and the adjacent parcel owned by BLOCK 6, LLC meets the requirements of the Bozeman Municipal Code and hereby move to provisionally adopt Ordinance 1969 authorizing the City Manager to sign, upon expiration
of the 30 day effective period, the Agreement to Exchange Land and subdivision exemption and to
take all additional steps necessary to exchange property with BLOCK 6, LLC.
BACKGROUND: The Gallatin Valley Skate Park Association, with financial assistance from the Breakfast Optimist
Club of Bozeman, completed a Park Improvement Grant project to construct skate park facilities in
Kirk Park. At the time, it was assumed that the gravel driveway on the adjacent property to the south was indicative of the property line. No survey was conducted and the work was completed by an outside contractor in 2013. The contractor is no longer in business.
Recently, it was brought to the attention of the Director of the Parks Department that a portion of
the skate park facilities (specifically, the sound end of the “bowl”) is located on private property. It is estimated that demolition and reconstruction of the concrete skate bowl elsewhere in the park would be in excess of $30,000. The current owner of the property has agreed to a boundary line
276
adjustment which will eliminate the encroachment and add a small area of developable property to
his parcel. Parks Department staff will remove one swing set and two benches and relocate them
within Kirk Park.
Ordinance 1969 authorizes the equal exchange of approximately 8117.40 square feet square feet of
property via boundary line adjustment between Kirk Park and the adjacent parcel, authorizing the
City Manager to sign, upon expiration of the 30 day effective period, the Agreement to Exchange
Land and subdivision exemption and to take all additional steps necessary to exchange property
with BLOCK 6, LLC. .
I. AUTHORITY TO EXCHANGE REAL PROPERTY The City Commission has authority over the disposition of property owned by the City pursuant to
Chapter 2.06 of the Bozeman Municipal Code (BMC). This chapter was created by Ordinance
1658 (2006) and later amended by Ordinances 1683 (2006) and 1713 (2007). Section 2.06.870.C, BMC requires properties to be appraised in an exchange of real property and the property received
in exchange must be of equivalent value. In addition, Sect. 2.06.870.A, BMC allows the City to
exchange real property “that is not necessary to the conduct of city business or the preservation of
its property.”
The Commission must make findings under the real property exchange provisions of the Bozeman
Municipal Code. Recommended findings are addressed below.
II. RATIONALE FOR THE EXCHANGE
1) Exchange meets the requirements of the Bozeman Municipal Code a) The exchange is supported by an appraisal demonstrating the property to be
received by the City is of at least equivalent value as the property to be transferred
by the City. See the section below on the appraisal.
b) The property to be exchanged is of equivalent usefulness as park land; as such, the
property to be quitclaimed by the City is no longer necessary for the conduct of City business.
c) The exchange will allow the city to retain the previously constructed skate park
improvements as is while enhancing the developable portion of the adjacent parcel,
as agreed to by the owners.
2) Exchange is less costly than replacement of park improvements a) The cost of the exchange, including survey work, application fees, and appraisals, is
approximately $9,000. The cost of removing and replacing the skate park bowl
feature is estimated to be over $30,000. The cost of removing the skate park bowl
feature and restoring the area to irrigated turf is estimated to be approximately
$15,000.
III. APPRAISAL The proposed exchange is an equal amount of area and is the same in character, immediately
adjacent to the existing park, and does not change any allowed use of land by the City or BLOCK
6, LLC. No exchange of money will occur with the exchange of property. Full and equal utility in area of the land is being preserved. Appraisals dated March 20, 2017 indicate the value of the
property owned by BLOCK 6, LLC is equal to or greater than the value of the City park property
(as per Attachment C-1: Appraisal Report for Block 6 and Attachment C-2: City of Bozeman
Appraisal Report). BLOCK 6, LLC have approved the Land Exchange Agreement without any
277
monetary exchange in recognition of the cost incurred and work performed by the City to execute
the Agreement.
III. SUBDIVISION EXEMPTION and ZONE MAP AMENDMENT: The exchange of real property will be conducted through the approval of a boundary relocation as
shown on the proposed amended plat (Exhibit A). Subsequently, Subdivision Exemption and Zone
Map Amendment applications will be submitted to the Community Development Department for
processing. Due to the different zoning designations of the park (R2) and the adjacent parcel (B2),
the newly created parcel (Lot 1, Block 6 of Exhibit A) will need to be re-zoned to allow development under commercial zoning. The final plat will be recorded following the completion of
the Subdivision Exemption and Rezoning processes.
The Recreation and Parks Advisory Board unanimously approved the following motion at its
regular meeting on March 9, 2017: “Having considered all public input and information received to date, I hereby recommend that City Commission approve Ordinance 1969 for the Agreement to
Exchange Land for the Kirk Park Boundary Line Adjustment.”
IV. EXCHANGE AGREEMENT:
An Agreement to Exchange Land specifying the duties and responsibilities of both parties in the exchange, including copies of the subdivision exemption and the deeds which will execute the
exchange is attached (Attachment A with Exhibits). The subdivision exemption has been reviewed
by the Director of Community Development and is ready for printing and signatures. The City
Manager may not sign the exemption until the effective date of Ordinance 1969 has passed.
UNRESOLVED ISSUES: None.
ALTERNATIVES: 1) Approve Ordinance 1969 as presented and recommended. 2) Do not
approve Ordinance 1969. The Parks Department would need to remove the skate park feature and
restore the property to its original condition.
UNRESOLVED ISSUES: None.
FISCAL EFFECTS: The City is covering all the costs of this action within the Parks Division
budget (approximately $9,000).
ATTACHMENTS: Ordinance 1969 Attachment A –Agreement to Exchange Land
Attachment B1 and B2 – Quit Claim Deeds
Attachment C1 and C2 - Appraisals
Report compiled on: May 8, 2017
278
Page 1 of 6
ORDINANCE NO. 1969
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN
EXCHANGE AGREEMENT FOR THE REALIGNMENT OF A PARK BOUNDARY IN
THE WEST PARK MANOR SUBDIVISION WITH PRIVATELY OWNED TRACTS,
PROVIDING CONTINGENCIES AND AN EFFECTIVE DATE.
WHEREAS, the City of Bozeman owns real property indicated as “Park Area” on the
recorded subdivision plat of WEST PARK MANOR, FIRST ADDITION, A TRACT OF LAND
LYING IN THE EAST ONE HALF OF THE NORTHEAST ONE QUARTER OF SECTION
ELEVEN, TOWNSHIP TWO SOUTH, RANGE FIVE EAST, MONTANA PRINCIPAL
MERIDIAN, CITY OF BOZEMAN, MONTANA; and
WHEREAS, the subject Park Area, known as “Kirk Park,” is hereinafter below referred
to as the “Property”; and
WHEREAS, the City is desirous of adjusting the boundary of the Property to accept a
equal square footage of new park area for the park area exchanged in order to preserve an existing
skate park feature in Kirk Park; and
WHEREAS, Section 2.11 of the Bozeman City Charter requires adoption of an ordinance
when the City “convey[s]… or authorize[s] the conveyance… of any lands of the city”; and
WHEREAS, Section 2.06.850 of the Bozeman Municipal Code (BMC), grants the City
Commission the jurisdiction and power to receive property by donation or exchange; and
279
Ordinance 1969, Exchange Agreement for the Realignment of a Park Boundary in the West Park Manor Subdivision
Page 2 of 6
WHEREAS, Section 2.06.870 of the Bozeman Municipal Code (BMC), grants the City
Commission the jurisdiction and power to exchange any real property, however acquired,
belonging to the City that is not necessary to the conduct of city business or the preservation of
city property; and
WHEREAS, Section 2.06.880, BMC, states, “When the City Commission, after a public
hearing, has determined by a two-thirds vote of all the members, that any real property owned by
the city is not needed for public use, or that the public interest may be furthered, the City may sell
such property by… exchange…” and
WHEREAS, Section 2.06.880, BMC, also states, “Notice of …exchange… shall be
published as provided in MCA 7-1-4127”; and
WHEREAS, as the exchange of the Property is with the property the City will receive and
is immediately adjacent to the existing park, of equal utility, and no money will be exchanged;
WHEREAS, the appraised value of the property owned by BLOCK 6, LLC is equal to or
greater than the value of the City park property being exchanged; and
WHEREAS, BLOCK 6, LLC has executed an agreement for the exchange of the Property
subject to City Commission ratification of the City Manager’s signature; and
WHEREAS, the agreement to exchange the Property is attached to this Ordinance as
Attachment A; and
WHEREAS, should the Bozeman City Commission provisionally adopt this ordinance by
no less than a two-thirds vote of its total membership, notice of provisional adoption of this
ordinance shall be published in compliance with Sect. 7-1-4127, MCA, prior to final adoption.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOZEMAN, MONTANA:
280
Ordinance 1969, Exchange Agreement for the Realignment of a Park Boundary in the West Park Manor Subdivision
Page 3 of 6
Section 1
The Bozeman City Commission finds that:
1. The exchange of the Property as shown on Exhibit A to the Exchange Agreement will have
no adverse effect on the public’s use of Kirk Park and will further the public interest
because the exchange of the Property and related relocation of common boundaries will
aid in the continued provision of support services to City residents.
2. The land exchanged is of identical size, immediately adjacent to the existing park, and of
comparable value and utility for all public uses.
3. The exchange provides an equally functional space on the land to be deeded to BLOCK 6,
LLC and is not needed for City purposes.
4. The land exchange is not in conflict with the program of comprehensive planning for the
area.
Section 2
The Bozeman City Commission hereby authorizes the City Manager to sign the attached Exchange
Agreement. In doing so, the Commission authorizes, subject to fulfillment of the contingencies as
stated in the attached Exchange Agreement and those contingencies listed below, the conveyance
of the Property to BLOCK 6, LLC:
1. The exchange must be of the same amount of land area to both parties.
2. The exchange shall be enacted by the approval of an amended plat by the Director of
Community Development in substantially the same form as attached to the Exchange
Agreement and the recording of the amended plat.
3. The City shall pay the Subdivision Exemption filing fee and all closing costs and recording
fees.
4. The City Manager may not sign the Exchange Agreement until 30 days after final adoption
of this ordinance; as such, the Exchange Agreement shall not be binding on the City until
such time and until completion of all included contingencies.
281
Ordinance 1969, Exchange Agreement for the Realignment of a Park Boundary in the West Park Manor Subdivision
Page 4 of 6
5. The exchange shall close as stated in the agreement.
Section 3
Repealer.
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of
this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of
the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force
and effect.
Section 4
Savings Provision.
This ordinance does not affect the rights and duties that matured, penalties that were
incurred or proceedings that were begun before the effective date of this ordinance. All other
provision of the Bozeman Municipal Code not amended by this Ordinance shall remain in full
force and effect.
Section 5
Severability.
That should any sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect
the validity of this ordinance as a whole, or any part or provision thereof, other than the part so
decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman
Municipal Code as a whole.
Section 6
Codification Instruction.
The provisions of this Ordinance shall not be codified in the Bozeman Municipal Code;
282
Ordinance 1969, Exchange Agreement for the Realignment of a Park Boundary in the West Park Manor Subdivision
Page 5 of 6
rather, this Ordinance shall be maintained by the City Clerk in an indexed file of all Ordinances
not to be codified.
Section 7
Effective Date.
This ordinance shall be in full force and effect 30 days after final adoption.
PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman,
Montana, on first reading at a regular session held on the 22nd day of May, 2017.
____________________________________
CARSON TAYLOR
Mayor
FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the
City of Bozeman, Montana on second reading at a regular session thereof held on the 5th day of
June, 2017. The effective date of this ordinance is July 5th, 2017.
____________________________________
CARSON TAYLOR
Mayor
ATTEST:
___________________________________
ROBIN CROUGH
City Clerk
283
Ordinance 1969, Exchange Agreement for the Realignment of a Park Boundary in the West Park Manor Subdivision
Page 6 of 6
APPROVED AS TO FORM:
____________________________________
GREG SULLIVAN
City Attorney
284
Agreement to Exchanged Land – Ordinance 1969
AGREEMENT TO EXCHANGE LAND
THIS AGREEMENT is made and entered into this _____of _______, 2017, by and
between City of Bozeman, whose mailing address is P.O. Box 1230, Bozeman, MT 59771 hereinafter referred to as CITY, a Montana municipal and BLOCK 6, LLC, a Montana limited
liability company whose mailing address is 815 North 15th Avenue, Bozeman, Montana 59715
and (or assigns), hereinafter referred to as BLOCK 6, LLC.
WITNESSETH:
WHEREAS, CITY is the legal owner of the following described real property situated in
Gallatin County, State of Montana, more particularly described as follows, to wit:
WEST PARK MANOR 1ST ADD, S11, T02 S, R05 E, ACRES 12.33, NW4 KIRK PARK (“PARK PROPERTY”)
WHEREAS, BLOCK 6, LLC is the legal owner of the following described real property
situated in Gallatin County, State of Montana, more particularly described as follows, to wit:
All of Block 6 of West Park Manor, First Addition to the City of Bozeman, Gallatin
County, Montana, according to the official plat thereof on file and of record in the office of the
County Clerk and Recorder, Gallatin County, Montana, EXCEPTING THEREFROM a 10 foot
wide strip of land lying westerly of and contiguous to the westerly right of way line of North
20th Avenue as platted in West Park Manor First Addition to Bozeman, Montana, and more
specifically described as follows: Beginning at the southeasterly corner of Block 7 of West Park
Manor First Addition to Bozeman, Montana; thence along the easterly line of said Block 7 being
along a curve to the right of 412 feet radius and a central angle of 70°30’ a distance of 291.2 feet
to southeasterly corner of Block 6 of said West Park Manor First Addition, thence continuing
along said curve a distance of 215.71 feet to the point of tangency of said curve; thence North
50°01’41” East along the easterly line of Block 6 a distance of 115.82 feet to the northeasterly
corner of said Block 6; thence northwesterly along the northerly line of said Block 6 a distance
of 10 feet; thence southwesterly parallel to and 10 feet distant westerly from the easterly line of
said Block 6 a distance of 115.82 feet to the point of tangency of a curve to the left having a
central angle of 70°30’ and a radius of 422 feet; thence continuing along said curve to the left a
distance of 220.95 feet to a point on the southerly line of said Block 6; thence continuing along
said curve being parallel to and 10 feet westerly of the present westerly right of way line a
distance of 298.30 feet to a point of intersection with the southerly line of Block 7 of said West
Park Manor First Addition; thence easterly along said southerly line of said Block 7 a distance of
10 feet to the true point of beginning. According to Deed recorded in Film 16, Page 1386.
(“BLOCK 6, LLC PROPERTY”)
285
Agreement to Exchanged Land – Ordinance 1969
WHEREAS, CITY and BLOCK 6, LLC desire to exchange a portion of their respective
parcels of above-described real properties pursuant to a boundary realignment (“the Boundary
Realignment”) under the terms and conditions hereinafter set forth and as shown on the
attached Exhibit A which by this reference is made a part hereof.
NOW, THEREFORE, for good and valuable consideration the parties agree as follows:
1. FILING OF AMENDED PLAT: CITY and BLOCK 6, LLC shall file the Amended Subdivision Plat in order to complete the Boundary Realignment as shown on Exhibit A.
CITY and BLOCK 6, LLC acknowledge and agree that real property to be exchanged
pursuant to the Boundary Realignment are of equal size and relative value.
In order to convey its interest in that portion of the CITY PROPERTY to be included as
shown on Exhibit A, the CITY shall execute a Quit Claim Deed to BLOCK 6, LLC for
said portion of the PARK PROPERTY (WEST PARK MANOR 1ST ADD, S11, T02 S,
R05 E, ACRES 12.33, NW4 KIRK PARK). In order to convey its interest in that portion
of the BLOCK 6, LLC PROPERTY as shown on Exhibit A, BLOCK 6, LLC shall
execute a Quit Claim Deed to CITY for said portion of BLOCK 6, LLC PROPERTY
2. BOZEMAN CITY COMMISSION RATIFICATION CONTINGENCY: The parties recognize and agree the Boundary Realignment and the exchange of real property as set
forth herein is contingent upon ratification by the Bozeman City Commission of the City
Manager's approval of this Agreement by duly adopted ordinance of the Bozeman City
Commission pursuant to the requirements of Section 2.11 of the Bozeman City Charter
and Chpt. 2, Art. 6, Div. 5, BMC. Final ratification of this agreement shall not be effective until thirty (30) days after final adoption of such ordinance ("Effective Date").
Should the Bozeman City Commission fail to ratify the City Manager's approval of this
Agreement for whatever reason, this agreement shall be terminated, and neither party
shall have any further obligation to the other party.
3. BLOCK 6, LLC’S WARRANTY AND DISCLOSURE: BLOCK 6, LLC agrees and
represents that it has conducted an independent investigation and inspection of the CITY
PROPERTY and has entered into this Agreement in full reliance thereon, and that there
are no other agreements, verbal or otherwise, modifying or affecting the terms hereof,
and that BLOCK 6, LLC is not relying upon any oral representations made by the CITY or CITY's agents. BLOCK 6, LLC specifically understands that the CITY’s interest in
said PARK PROPERTY shall be conveyed "AS IS" AND WITHOUT WARRANTIES,
EITHER EXPRESSED OR IMPLIED, INCLUDING THE IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, EXCEPT THE WARRANTIES OF TITLE AS SET FORTH HEREIN. Likewise, the CITY specifically understands that BLOCK 6, LLC’s interest in said
BLOCK 6, LLC PROPERTY shall be conveyed "AS IS" AND WITHOUT
WARRANTIES, EITHER EXPRESSED OR IMPLIED, INCLUDING THE
IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
286
Agreement to Exchanged Land – Ordinance 1969
PARTICULAR PURPOSE, EXCEPT THE WARRANTIES OF TITLE AS SET FORTH HEREIN
4. TAXES AND ASSESSMENTS: There shall be no proration of taxes between CITY and BLOCK 6, LLC. BLOCK 6, LLC shall pay all taxes, fees and assessments accruing against said BLOCK 6, LLC PROPERTY subsequent to the date of Closing.
5. ZONING . The CITY agrees to process the application for rezoning of the reconfigured
tract owned by BLOCK 6, LLC subsequent to the boundary realignment process so as to be zoned entirely within the B-2 Zoning District in accordance with existing CITY policy that zoning boundaries conform to parcel boundaries. The CITY agrees to pay all
application fees for any administrative procedure relative to the zoning designation.
6. REMOVAL OF IMPROVEMENTS: At its own cost and expense, the CITY agrees to
remove all equipment and improvements from that portion of the PARK PROPERTY conveyed to BLOCK 6, LLC within 90 days of the completion of the boundary realignment and to restore any disturbed areas with turf. This provision shall survive
closing.
7. RISK OF LOSS: The parties hereto understand and agree that each party shall bear the risk of loss to their respective parcels of real property and appurtenances until title is conveyed at the date of Closing.
8. POSSESSION: Possession of the fully realigned parcels will be delivered on the date of
Closing.
9. MEGAN'S LAW DISCLOSURE: Pursuant to the provisions of Title 46, Chapter 23, Part 5 of the Montana Code Annotated, certain individuals are required to register their
address with the local law enforcement agencies as part of Montana's Sexual and Violent
Offender Registration Act. In some communities, law enforcement offices will make the
information concerning registered offenders available to the public. If either party desires further information, it should contact the local County Sheriff's office, the Montana Department of Justice, in Helena, Montana, and the probation officers assigned to the
area.
10. NOXIOUS WEEDS DISCLOSURE. Buyers of property in the State of Montana should be aware that some properties contain noxious weeds. The laws of the State of Montana require owners of property within this state to control, and to the extent possible,
eradicate noxious weeds. For information concerning noxious weeds and your obligations
as an owner of property, contact either your local County extension agent or Weed
Control Board.
11. CLOSING: Closing of the transaction set forth in this Agreement shall occur within 10
days of the Effective Date as defined in Section 2 of this Agreement and simultaneously
with the recordation of the plat set forth on Exhibit A. CITY and BLOCK 6, LLC may
287
Agreement to Exchanged Land – Ordinance 1969
mutually agree in writing to extend the Closing. Since no funds are being transferred, a
closing agent shall not be necessary. BLOCK 6, LLC agrees to pay all recording fees.
12. INSTRUMENTS OF FURTHER ASSURANCE; GOOD FAITH: Each of the parties hereto agrees, at their own expense, to execute and deliver to the other at or after the Closing any and all further instruments and documents as either may reasonably request
in order to carry out any of the provisions of this Agreement. CITY and BLOCK 6, LLC
shall act in good faith in all respects relative to the transactions contemplated hereby.
13. NOTICES: Any notice required or permitted hereunder shall be in writing and shall be deemed delivered if personally delivered or two (2) days after being sent by United States
First Class Certified Mail, postage prepaid, to the CITY or BLOCK 6, LLC at the
addresses specified herein below.
CITY: BLOCK 6, LLC:
Bozeman City Manager
City of Bozeman
121 N. Rouse Avenue
Bozeman, MT 59715
Eric Kummerfeldt, Member
BLOCK 6, LLC
815 North 15th Avenue
Bozeman, MT 59715.
Notices shall be addressed to any other person and address as may be specified from time
to time by any party by written notice to the other party.
14. PARTIES IN INTEREST; ASSIGNMENTS: This Agreement, and each and every term
and provision hereof, shall inure to the benefit of, and be binding upon and enforceable
against, BLOCK 6, LLC and CITY hereto and their respective legal representatives,
successors and assigns.
15. NO THIRD-PARTY BENEFITS: This Agreement is not intended, and shall not be
deemed or construed, to confer any rights, power or privileges on any person, firm,
partnership, corporation or other entity not a party hereto, except as otherwise provided.
16. TIME IS OF THE ESSENCE: Time is specifically declared to be of the essence of this
Agreement, and of acts required to be done and performed by BLOCK 6, LLC and CITY.
17. GOVERNING LAW: This Agreement is executed and delivered and is to be performed
in, and shall be governed by and construed in accordance with, the laws of the State of Montana without regard to principles of conflicts of law. The parties submit to the jurisdiction of the courts in Gallatin County, Montana and agree that any legal action or
proceeding relating to this Agreement may be brought in those courts.
18. ATTORNEY'S FEES: Should either party hereto reasonably retain counsel for the purpose of enforcing or preventing the breach of any provision or alleged breach hereof,
288
Agreement to Exchanged Land – Ordinance 1969
including but not limited to instituting any action or proceeding to enforce any provision
hereof, for damages by reason of any alleged breach of any provision of this Agreement,
for a declaration of such party's rights or obligations hereunder or for any other judicial
remedy, then the prevailing party shall be entitled to be reimbursed by the other party for all costs and expenses incurred in connection therewith, including but not limited to
reasonable attorney's fees for the services rendered to such prevailing party.
19. ENTIRE AGREEMENT: This Agreement expressly terminating all previous agreements
among the parties related to the property, and constitutes and contains the entire agreement between CITY and BLOCK 6, LLC and supersedes any and all prior negotiations, correspondence, understandings and agreements between the parties
respecting the subject matter hereof.
20. AMENDMENT: This Agreement may be amended only by a writing signed by each of the parties hereto.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
289
Agreement to Exchanged Land – Ordinance 1969
CITY OF BOZEMAN
_____________________________________ By: Interim City Manager
BLOCK 6, LLC
By: ____________________________________ Eric Kummerfeldt
Title: Member
APPROVED AS TO FORM
_______________________________
By: Greg Sullivan, Bozeman City Attorney
290
Agreement to Exchanged Land – Ordinance 1969
EXHIBIT A
(DRAFT AMENDED PLAT)
291
S89°17'19"E 997.93'N01°38'50"E 563.90'
S02°14'02"W 212.35'N86°55'09"W53.96'N01°30'40"E24.47'C1
C
2 C3L
1 L2L
3L4
POINT OF BEGINNINGSURVEYED BY:QUALITY CHECK:JOB NO.FIELDBOOKDRAWN BY:DATE:ENGINEERING CONSULTANTSTHOMAS, DEAN & HOSKINS, INC.292
After recording, please return to: BLOCK 6, LLC
815 North 15th Avenue
Bozeman MT 89715
QUIT CLAIM DEED
FOR ADEQUATE CONSIDERATION, the CITY OF BOZEMAN, a municipal corporation,
whose mailing address is P.O. Box 1230, Bozeman, MT 59771 as Transferor, does hereby
convey, remise, release, and forever quitclaim unto BLOCK 6, LLC, a Montana limited liability
company 815 North 15th Avenue, Bozeman, Montana 59715 as Transferee, the following
described real property located in Gallatin County, Montana, to wit:
All of Block 6 of West Park Manor, First Addition to the City of Bozeman, Gallatin
County, Montana, according to the official plat thereof on file and of record in the office of the
County Clerk and Recorder, Gallatin County, Montana, EXCEPTING THEREFROM a 10 foot
wide strip of land lying westerly of and contiguous to the westerly right of way line of North
20th Avenue as platted in West Park Manor First Addition to Bozeman, Montana, and more
specifically described as follows: Beginning at the southeasterly corner of Block 7 of West Park
Manor First Addition to Bozeman, Montana; thence along the easterly line of said Block 7 being
along a curve to the right of 412 feet radius and a central angle of 70°30’ a distance of 291.2 feet
to southeasterly corner of Block 6 of said West Park Manor First Addition, thence continuing
along said curve a distance of 215.71 feet to the point of tangency of said curve; thence North
50°01’41” East along the easterly line of Block 6 a distance of 115.82 feet to the northeasterly
corner of said Block 6; thence northwesterly along the northerly line of said Block 6 a distance
of 10 feet; thence southwesterly parallel to and 10 feet distant westerly from the easterly line of
said Block 6 a distance of 115.82 feet to the point of tangency of a curve to the left having a
central angle of 70°30’ and a radius of 422 feet; thence continuing along said curve to the left a
distance of 220.95 feet to a point on the southerly line of said Block 6; thence continuing along
said curve being parallel to and 10 feet westerly of the present westerly right of way line a
distance of 298.30 feet to a point of intersection with the southerly line of Block 7 of said West
Park Manor First Addition; thence easterly along said southerly line of said Block 7 a distance of
10 feet to the true point of beginning. According to Deed recorded in Film 16, Page 1386.
TOGETHER WITH all the tenements, hereditaments, and appurtenances thereto
belonging, and the reversions, remainder and remainders, rents, issues, and profits thereof; and
possession, claim and demand whatsoever as well in law as in equity of the Transferor.
TO HAVE AND TO HOLD, unto the said Transferee, its successors and assigns,
forever.
DATED this _______ day of ___________________, 2017.
293
CITY OF BOZEMAN, a Montana Municipal Corporation
____________________________________________
Signature
By: _________________________________________
Interim City Manager
STATE OF ___________________
:ss
County of ____________________
On this __________day of _____________________, 2017 before me, a Notary Public
in and for said State, personally appeared ________________________,
______________________ City Manager of the CITY OF BOZEMAN, a Montana
municipal corporation, known to me to be the person whose name is subscribed to the
within instrument and acknowledged to me that said corporation executed the same.
seal ________________________________________
Printed Name:_____________________________
Notary Public for the State of _________________
Residing at:_______________________________
My commission expires:_____________________
294
After recording, please return to: City Clerk
The City of Bozeman PO Box 1230
Bozeman, Montana 59771
QUIT CLAIM DEED
FOR ADEQUATE CONSIDERATION, BLOCK 6, LLC, a Montana limited liability
company whose mailing address is 815 North 15th Avenue, Bozeman, Montana 59715 as
Transferor, does hereby convey, remise, release, and forever quitclaim unto the CITY OF
BOZEMAN, a municipal corporation, whose mailing address is P.O. Box 1230, Bozeman, MT
59771, as Transferee, the following described real property located in Gallatin County, Montana,
to wit:
WEST PARK MANOR 1ST ADD, S11, T02 S, R05 E, ACRES 12.33, NW4 KIRK
PARK located in the city of Bozeman, Montana according to the official survey thereof
on file and of record in the office of the County Clerk and Recorder, Gallatin County,
Montana,
TOGETHER WITH all the tenements, hereditaments, and appurtenances thereto
belonging, and the reversions, remainder and remainders, rents, issues, and profits thereof; and
possession, claim and demand whatsoever as well in law as in equity of the Transferor.
TO HAVE AND TO HOLD, unto the said Transferee, its successors and assigns,
forever.
DATED this _______ day of ___________________, 2017.
___________________________________________
____________________________________________
Signature
By: _________________________________________
Printed name and title
STATE OF ___________________
:ss
County of ____________________
On this __________day of _____________________, 2017 before me, a Notary Public
in and for said State, personally appeared ________________________,
______________________ of HELP CENTER, INC. a Montana non-profit corporation,
known to me to be the person whose name is subscribed to the within instrument and
acknowledged to me that said corporation executed the same.
seal ________________________________________
Printed Name:_____________________________
Notary Public for the State of _________________
Residing at:_______________________________
295
My commission expires:_____________________
296
AN APPRAISAL OF
THE 12.33ACRE SITE OWNED BY
THE CITY OF BOZEMAN
LOCATED AT THE SOUTHWEST CORNER
OF NORTH 20TH AVE AND WEST BEALL ST
IN BOZEMAN, MONTANA
DATE OF VALUATION
FEBRUARY 20, 2017
FOR
CAROLYN POISSANT
CITY OF BOZEMAN
BY
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
297
J. MICHAEL JOKI, MAI, SRA
P.O. BOX 281
HELENA, MONTANA 59624
Phone (406) 442-2159
March 15, 2017 FAX (406) 442-6196
Carolyn Poissant, MLA, AICP
Manager of Trails, Open Space and Parks Design
City of Bozeman-Department of Parks and Recreation
P.O. Box 1230
Bozeman, Montana 59771-1230
RE: An appraisal of the 12.33 acre (537,095 SF) site located at the SWC of N. 20th Avenue and West
Beall Street in Bozeman, Montana. This site supports a city park known as Kirk Park.
Dear Mrs. Poissant:
Per your request I have made the necessary inspection and analysis to appraise the above referenced
property. The attached report provides the essential data and detailed reasoning employed in my final value
estimate. The report contains 41 pages.
I have appraised the property as a whole, owned in fee simple and unencumbered. I assume no
responsibility for matters that are legal in nature nor do I render any opinion as to title.
The site being appraised is a 12.33 acre or 537,095 SF site that currently supports a city park known
as Kirk Park. There are a number of site improvements on this land (i.e. picnic tables, baseball diamonds)
but they are all related to the current use as a city park. The City of Bozeman is attempting to do a land
swap with the site off of the southeast corner that is owned by Simkins, Haggerty and Courtney.
The value reported is qualified by certain definitions, assumptions and limiting conditions, and
certification which are set forth within the attached report. This appraisal report is intended to conform with
the Uniform Standards of Professional Appraisal Practice.
Based on my analysis, the market value of the subject site as set forth, documented and qualified in
the attached report under conditions prevailing on February 20, 2017 was:
One Million and Twenty Thousand Dollars
$1,020,000
I direct your attention to the data, discussions and conclusions which follow.
Respectfully submitted,
J. Michael Joki, MAI, SRA
Montana State Certified General Real Estate Appraiser #152
298
I CERTIFY THAT...
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported Assumptions and
Limiting Conditions, and are my personal, impartial, and unbiased professional analyses, opinions,
and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report, and I have
no personal interest or bias with respect to the parties involved.
4. I have performed no services, as an appraiser or in any other capacity, regarding the property that is
the subject of this report within the three-year period immediately preceding acceptance of this
assignment.
5. My compensation is not contingent upon the reporting of a predetermined value or direction in
value that favors the cause of the client, the amount of the value estimate, the attainment of a
stipulated result, or the occurrence of a subsequent event. This appraisal assignment was not based
on a requested minimum valuation, or a specific valuation.
6. My analysis, opinions and conclusions were developed, and this report has been prepared, in
conformity with The Uniform Standards of Professional Appraisal Practice, and with the
requirements of the Code of Professional Ethics and the Standards of Professional Practice of the
Appraisal Institute.
7. The use of this report is subject to the requirements of the Appraisal Institute relating to the review
by its duly authorized representatives.
8. As of the date of this report, I, J. Michael Joki, have completed the requirements of the continuing
education program of the Appraisal Institute.
9. I have made a personal inspection of the property that is the subject of this report and have afforded
the owner, or their representative, the opportunity to accompany me on the inspection.
10. I have personally inspected and verified the comparable sales relied upon in making this appraisal.
11. No one provides significant real property appraisal assistance to the person signing this certification.
12. I have the necessary level of knowledge and experience to credibly estimate the value of the subject
property, or have taken reasonable steps to achieve such competency and to provide a professional
appraisal of the subject property, in accordance with the Uniform Standards of Professional
Appraisal Practice.
299
13. I am currently licensed in the State of Montana (Certificate #152) as a Certified General Real Estate
Appraiser, and hold the MAI and SRA designations conferred by the Appraisal Institute.
DATE: February 20, 2017 SIGNATURE:
Appraised By: J. Michael Joki, MAI, SRA
Certified General #152
300
5
J. Michael Joki, MAI, SRA
HELENA, MONTANA
ASSUMPTIONS AND LIMITING CONDITIONS
This is to certify that the appraiser in submitting this statement and opinion of value of subject property
acted in accordance with and was bound by the following principles, limiting conditions and
assumptions. Unauthorized use of this report is set forth below.
1. No responsibility is assumed for matters that are legal in nature nor is any opinion rendered on
title of property appraised.
2. Unless otherwise noted, the property has been appraised as though free and clear of all
encumbrances.
3. All maps, areas, plans, specifications, and other data furnished your appraiser were assumed to
be correct. No survey of the property was made by this firm. Furthermore, all numerical
references to linear measurements, area, volume or angular measurements should be assumed to
be "more or less" (+/-) and are accurate to a degree consistent with their use for valuation
purposes.
4. This appraisal considers only surface rights to the property with consideration of current zoning
and land use controls. The estimate of highest and best use will form the basis for the value
estimate. This appraisal does not consider mineral, gas, oil or other natural resource rights that
may be inherent in the ownership of the property.
5. In this appraisal assignment any potentially hazardous material found on the land which may or
may not be present on the property, has not been considered. The appraiser is not qualified to
detect such substances. Any interested party is urged to retain an expert in this field if there is
any question regarding such potentially hazardous material. If such material or substance is
present it could adversely affect the value reported.
6. The appraiser is not a seismologist. This appraisal should not be relied upon as to whether a
seismic problem exists, or does not actually exist on the property. The property which is the
subject of this appraisal is within a geographic area where earthquakes and other seismic
disturbances have previously occurred and where they may occur again. Except as specifically
indicated in the report, no seismic or geologic studies have been provided to the appraiser
concerning the geologic and/or seismic condition of the property. The appraiser assumes no
responsibility for the possible effect on the subject property on seismic activity and/or
earthquakes. I have not made a specific compliance survey and analysis of this property to
determine whether or not it is in conformity with any seismic requirements by the City or
County. It is possible that a survey of the property could reveal that the property does not meet
the required seismic requirements. If so, this fact could have a negative effect upon the value of
the property. Since I have no direct evidence relating to this issue, I did not consider possible
noncompliance requirements in estimating the value of the property.
301
7. All data contained in this report and in the appraiser's files, as obtained from other sources, upon
which to any degree the opinions and conclusions were based, are considered reliable and
believed to be true and correct. However, the appraiser does not assume responsibility for the
accuracy of such items that were obtained from other parties.
8. There shall be no obligation to give testimony or attendance in court by reason of this appraisal
with reference to the property in question unless arrangements have been previously made and at
an additional fee.
9. Disclosure of the contents of this appraisal report is governed by the by-laws and regulations of
the Appraisal Institute.
Neither all nor any part of the contents of this report especially the conclusions as to value, the
identity of the appraiser, or the firm with which he is connected, or to the MAI and SRA
designations, shall be disseminated to the public through advertising media, news media, public
relations media, sales media, or any other public means of communication without the prior
written consent of the appraiser.
10. J. Michael Joki, MAI, SRA, specifically does not authorize the out-of-context quoting from or
partial reprinting of this appraisal report.
11. The liability of J. Michael Joki, MAI, SRA and employees is limited to the client and to the fee
collected. Further, there is no accountability, obligations or liability to any third party. If this
report is placed in the hands of anyone other than client, the client shall make such party aware
of all limiting conditions and assumptions of the assignment and related discussions. The
appraiser assumes no responsibility for any costs incurred to discover or correct any deficiencies
of any type present in the property; physically, financially, or of a legal nature.
12. The fee for this appraisal report is for the service rendered and not for time spent on the physical
report or for the physical report itself.
13. This appraisal report is prepared for the appraisers’ client the City of Bozeman. It is my
understanding the City of Bozeman is working with the landowners of the 1.41 acre site off of
the southeast corner of the subject site to conduct a land swap of these two adjoining parcels.
No third parties are authorized to rely upon this report without the express written consent of
the appraiser.
14. This Appraisal Report is intended to comply with the reporting requirements set forth under
Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an
Appraisal Report. As such, it presents discussions of the data, reasoning, and analysis that were
used in the appraisal process to develop the appraiser’s opinion of value. Supporting
documentation concerning the data, reasoning and analysis is contained in the appraiser’s file.
302
SUMMARY OF IMPORTANT FACTS AND CONCLUSION
PURPORTED OWNER: City of Bozeman
LOCATION OF PROPERTY: This site is located at the SWC of N. 20th Avenue
and W. Beall Street in Bozeman Montana.
LAND SIZE: 12.33 acres or 537,095 SF
IMPROVEMENTS: The site has a number of site improvements but
they are all related to its city park use.
PROPERTY RIGHTS APPRAISED: Fee Simple
ZONING: R-2 (Residential Two Household Medium Density
District)
PRESENT USE: This site supports Kirk Park which has several
baseball diamonds, basketball courts, skate park
etc.
HIGHEST AND BEST USE: For a multi-family development.
DATE OF VALUATION: February 20, 2017
CONCLUDED ESTIMATE OF
MARKET VALUE $1,020,000
303
SUBJECT PROPERTY PHOTOGRAPH
Looking southwest at the subject property from its northeast corner.
304
DEFINITION OF MARKET VALUE
Market value, as used in this report is defined as follows:
“The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in
other precisely revealed terms, for which the specified property rights should sell after reasonable
exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller
each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue
duress.”1
Implicit in this definition is the consummation of a sale as of a specified date and the passing of
title from seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider
their own best interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in US dollars or in terms of financial
arrangements comparable thereto; and
5. The price represents the normal consideration of the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated
with this sale.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal report is to arrive at a supportable estimation of the market value.
1 The Appraisal of Real Estate, 12th Edition, (Appraisal Institute, 2006), p. 22.
305
INTENDED USE OF THE APPRAISAL AND INTENDED CLIENT
It is understood that the intended use of this appraisal report is to assist the City of Bozeman
with a swap of Kirk Park land and the 1.41 acre site off of its southeast corner. The client is the City of
Bozeman, and the intended users of the appraisal report are the City of Bozeman and the owners
(Simkins, Haggerty and Courtney) of the adjoining 1.41 acre site.
SCOPE OF THE APPRAISAL
Based on the requirements of the Uniform Standards of Professional Appraisal Practice and the
guide notes to the Standards of Professional Appraisal Practice adopted by the Appraisal Institute, the
Scope of Work has become the primary element when defining the appraisal problem. USPAP involves
binding requirements and specific guidelines that outline the procedures to be followed in developing an
appraisal, and analysis or opinion that pertain to reporting or communication of that appraisal opinion
defined as Standards 1 and 2. The appraisal service and reporting option must be consistent with the
Scope of Work in defining the appraisal service and how it is to be communicated. This appraisal is in
compliance with the regulatory requirements of the State of Montana administered by the Montana
Board of Real Estate Appraisers based on compliance with Standards and Ethics defined within USPAP.
The scope of work rule states that an appraiser must:
1. Identify the problem to be solved;
2. Determine and perform the scope of work necessary to develop credible assignment results;
3. Disclose the scope of work in the report.
Initially I spoke with Carolyn Poissant from the City of Bozeman- Department of Parks and
Recreation. Carolyn Poissant explained the City of Bozeman is attempting to do a land swap with the
adjacent 1.41 acre site that is located off of the southeast corner of the Kirk Park parcel. Apparently
some of the concrete skate park improvements that are part of Kirk Park are encroaching on the
306
unimproved 1.41 acre site. These two parties are attempting to do a land swap so the site improvements
(concrete for the skate park) owned by the City of Bozeman do not have to be relocated. As I
understand land on the north end of the 1.41 acre site will be exchanged for Kirk Park land that’s
adjacent to its west boundary. I was not provided an illustration depicting the exact areas that will be
exchanged. I have been asked by the City of Bozeman to estimate the market value of both sites so each
party can be appropriately compensated for the land that will be included in the proposed land exchange.
I inspected the subject property on February 20, 2017. I was given permission to inspect the
subject property unaccompanied by Carolyn Poissant. This is also the day all photographs of the subject
property were taken.
Real estate agents, local MLS Service, developers and real estate appraisers in Bozeman were
interviewed in an attempt to find relevant market data. Market data has been confirmed with the buyer,
seller or broker involved in the transaction. All of the comparable sales utilized in this appraisal report
are described in the body of the report and in more detail on the sales sheets included in the addenda.
As identified under Assumptions and Limiting Conditions and as explained under Property Rights
Appraised the title is assumed to be free and clear of liens and encumbrances.
The Scope of Work defines an appraiser's conclusions as to what is deemed necessary to provide
a creditable appraisal report. The property type suggests that only the Sales Comparison Approach to
land value is the relevant valuation methodology, and peer review would expect to see only this
technique used to produce this opinion of value. There is adequate sales data from within this
neighborhood and the surrounding community to produce a creditable result. The client is defined as the
City of Bozeman. The intended user is the client, and the intended use will be to assist the City of
Bozeman with a land swap involving the subject site and the unimproved 1.41 acre site off of its
southeast corner. The following sources provided me data that was used in this appraisal report.
• Gallatin County Clerk and Recorder's Office
• City of Bozeman Planning Department
• Keith O’Reilly, MAI, Appraiser
• Ed Jackson, Appraiser
• Jack Catron, Realtor
• Lloyd Mandeville, Realtor
307
12
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
• Donnie Olson, Realtor
• Karl Cook, Realtor
SUMMARY OF APPRAISAL PROBLEM
It is my understanding the City of Bozeman wants to swap land with the owners of the 1.41 acre
site that is adjacent to the southeast corner of Kirk Park. The City of Bozeman is attempting to complete
this land swap because some of the concrete for the skate park is encroaching on the 1.41 acre site. I
have been asked to estimate the current market value of both sites so the City of Bozeman and the
adjacent land owners can be appropriately compensated for their land involved in this proposed swap.
PROPERTY RIGHTS APPRAISED
This appraisal is made with the understanding and assumption that present ownership of the
subject property includes all rights that may be lawfully owned, and is therefore, title in fee simple as of
February 20, 2017. A fee simple estate is subject only to the limitations imposed by the governmental
powers of taxation, eminent domain, police power and escheat.
IDENTIFICATION OF PROPERTY AND LEGAL DESCRIPTION
The site that is the subject matter of this appraisal report consists of 12.33 acres and is located at
the southwest corner of North 20th Avenue and West Beall Street in Bozeman, Montana. The legal
description of the land is as follows:
“The 12.33 acres in West Park Manor 1st Addition (Kirk Park) located in the NW ¼ of Section
11, Township 2 South, Range 5 East, City of Bozeman, Gallatin County, Montana”
308
13
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
HISTORY OF THE PROPERTY
It is my understanding the land that constitutes Kirk Park was donated to the City of
Bozeman in the 1970’s by the Simkins and Haggerty families who are also percentage owners of the
adjacent 1.41 acre site that is part of the proposed land exchange. To the best of my knowledge the Kirk
Park parcel is not currently listed for sale by the City of Bozeman.
309
14
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
REGIONAL MAP
310
15
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
REGIONAL AND CITY ANALYSIS
Bozeman is the county seat of Gallatin County and is one of 56 counties in the State of
Montana. Gallatin County is located in a mountainous area of Montana north of the
Montana/Wyoming border and Yellowstone National Park. Bozeman primarily lies on the south
side of Interstate 90 and is located approximately 140 miles west of Billings, Montana and 80 miles
east of Butte, Montana.
Gallatin County has grown faster than any other county in the State of Montana over the
past decade according to the Census Bureau. Gallatin County includes almost 2,500 square miles of
mountainous lands that offer a variety of topography and climate. Nearly half of Gallatin County is
under public ownership by the Gallatin National Forest, State of Montana, Bureau of Land
Management or the National Park Service.
Forces Influencing Property Values
The value of real estate is influenced by the interaction of four major forces. Social
considerations, economic considerations, government and environmental considerations. The four
forces are discussed as follows:
Social Considerations
Social forces are exerted largely by population characteristics, including population growth,
density, and age distribution. According to the U. S. Census Bureau the population of the City of
Bozeman increased from 27,509 in 2000 to 37,280 as of April, 2010 and increase of nearly 9,800 people.
This represents an increase in population of approximately 35.5% over this 10-year period, or an average
rate of growth of about 3.55%/year. From April, 2010 to April, 2012 the population increased from
37,280 to 38,695, an increase of nearly 1,415 people which equated to a growth of 3.8% over this time
frame.
Gallatin County’s population increased from 67,831 in 2000 to 89,513 in 2010 or approximately
21,700 people. This represents an increase in population of approximately 32% over a 10-year period or
an average growth rate of 3.2%/year. Between April, 2010 and April, 2012 the population increased from
89,513 to 92,614 people or 3,101people which equates to a growth rate of about 3.5% over this time
period. Comparatively, the State of Montana grew from 989,417 people in April 2010 to 1,005,140
people in 2012 or 15,724 people which equates to a growth rate of 1.6% over that time frame.
311
16
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
In addition to population growth the City of Bozeman continues to see growth in its geographic
size. In 1990 the City of Bozeman was approximately 6,420 acres (± 10 square miles) and by the end of
2009 it had expanded to 12,300 acres (±19.25 square miles) resulting in an increase of ±92% over this 19-
year period. This growth was to accommodate the increasing population which required new land for
residential, commercial and industrial development. This growth significantly slowed in 2009 and 2010
which was being seen all throughout this region as the national economic recession took effect.
Bozeman has a significantly lower home ownership rate than most other communities in the
county primarily due to the student body of Montana State University. Bozeman also has a smaller
average household size and a smaller portion of families than other areas of Gallatin County. Bozeman
has an average household size of 2.27 people while the average household size for Gallatin County is 2.49
people. Just over half of the Bozeman households are families compared to ±63% countywide. The
population of Bozeman is considerably younger than Gallatin County as a whole, and even more so, in
comparison to the State of Montana. Again this emphasizes the significance of Montana State University
being located in Bozeman. Bozeman and Gallatin County has transformed over the past decade from a
primarily agricultural based community to a tourism related community. Bozeman and Gallatin County
offers a high quality of life due to its low crime rate, offering of many cultural experiences, the presence
of Montana State University and its education offerings. An abundance of outdoor activities that include
excellent downhill snow skiing, world class fly fishing rivers, streams and access to numerous state and
federally owned lands are all nearby.
Economic Considerations
Bozeman, like many communities in Montana experienced significant growth in population and
economy for a number of years. This area was affected by the national recession just like many other areas
in the country however new growth and development has begun again and the outlook for Bozeman and the
vicinity is quite positive based on a number of factors.
• County seat of Gallatin County.
• Wide range of skills in the labor force.
• Home of Montana State University.
• Well located in southwestern Montana
• Numerous recreational opportunities
312
17
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Bozeman is somewhat unique when compared to other communities in Montana because there are
few employers who employ a large amount of the population. Missoula, Montana, as an example was very
dependent on the lumber and timber industry and Butte, Montana had always relied heavily on the mining
industry. When those industries slowed those communities were very heavily impacted. The primary
employer in Bozeman is Montana State University. Other major sectors of the economy that provide
employment are construction, local and state government, manufacturing, technology, agricultural and
retail service. Montana State University currently employs about 3,500 people as permanent faculty/staff
and they also employ over 2,000 students in part time work. In the fall of 2,016 the student enrollment at
MSU was nearly at 16,000 people which certainly has a significant effect on the local economy. Other
major employers in Gallatin County include the State of Montana, Gallatin County, the City of Bozeman,
Bozeman Deaconess Hospital, Right Now Technologies. With such a diverse employment base the local
economy tends to be sheltered from a downturn in any of the Country’s key employment industries.
In 2010 Bozeman was declared as the most expensive place to live in Montana based upon a report
by Propera Business Network. This report stated that Bozeman’s 2009 cost of living was 4.4% above the
national average. The other Montana cities that showed an overall cost of living above the national average
were Missoula at 1.8% and Kalispell at 1.5%. Residential rent levels in Gallatin County have remained
stable primarily due to the presence of Montana State University. Rents in this community will periodically
show a slight decline however they tend to stabilize or even increase rather quickly due to the continued
growth of Montana State University.
Overall the economic growth has been much stronger in Bozeman and Gallatin County than what
is being seen statewide. Historically the sectors in Bozeman and Gallatin County that show the most
substantial growth are agricultural services, construction, manufacturing, finance, insurance, real estate and
lodging. Currently the unemployment rate in Montana is 6.4% and Gallatin County recorded a slightly
lower unemployment rate at 5.8%. Gallatin County’s labor force is currently estimated at 52,070
employees, the third largest labor force in Montana’s 56 counties.
Over the past ±10 years residential building permit activity in the City of Bozeman was on the rise
and reached its peak in 2005 and then began to decline over the next 5 years, and most significantly in 2008
and 2009. Residential building permits began to increase again in 2010 and have been on a steady incline.
Bozeman has been experiencing new growth in several areas of town but no area has provided as much
commercial real estate development at the 19th Avenue corridor. Recent stores and restaurants developed
along 19th Avenue include Sportsman’s Warehouse, Lowes, IHOP, Bed Bath and Beyond, Staples, World
Market and REI. Most recently a new Safeway grocery store (±58,000 SF) was completed in December,
2011 and a Kohls department store (±55,300 SF) was completed in October, 2011.
313
18
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
The City of Bozeman facilities over the past 5 years have seen significant development and/or
renovation which includes the fire stations, police station, waste water treatment facilities, the completion of
a downtown parking garage, City of Bozeman Library, construction of the Gallatin County Detention
Center, an expansion of the landfill building etc. Montana State University has also seen significant
expansion and renovation which include a significant remodel of the football stadium, addition of the
Molecular Biology Center, renovations to the Health and Physical Education Center, addition of the Black
Box Theater, renovation of Gaines Hall etc.
Tourism brings a significant number of visitors to the Bozeman area. Yellowstone National Park,
the first national park in the United States, is located approximately 65 miles south of Bozeman. Big Sky
Ski Resort is located approximately 45 miles south of Bozeman and has recently been listed as the seventh
best ski resort in the United States. This ski area averages over 300" of annual snowfall with skiing available
November through April. The Yellowstone Club lies adjacent to Big Sky Ski Resort and is an exclusive
vacation/residential development that includes both private skiing and golfing. This exclusive, private
development had filed for bankruptcy in 2008 and in 2010 was purchased by Cross Harbor Capital and for
several years saw significant decline in sales and values. However, the private development has begun to
rebound again as sales are starting to climb again. Other ski resorts in Gallatin County include Moonlight
Basin which is also adjacent to Big Sky and Bridger Bowl which lies approximately 15 miles to the north of
Bozeman.
Environmental Considerations
Environmental and physical forces, both natural and man-made, can influence property values.
These forces include climatic conditions, topography and natural barriers, and transportation systems.
Bozeman’s climate clearly reflects its mountain valley location. Bozeman truly has four seasons
with its short summers being pleasant which are typically characterized by warm to hot days and cool
nights. The average high temperature in the summer is in the upper 80°’s and the average low in the
winter is the mid to lower 30°’s. Spring tends to come late in the Gallatin Valley as ⅓ of its annual
precipitation ±19" falls during May and June. The average annual snowfall in Bozeman is ±72" and the
average length of the growing season is about 107 days. The climate of the county varies according to
elevation but is generally characterized by relatively cold winters and warm summers. Snow removal is a
common operating cost that will affect real estate in the winter months. In contrast air conditioning costs
314
19
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
are less during the fairly temperate summer months however heating bills can be quite high during the cold
winter months.
Bozeman is located on the south side of Interstate 90. Access to the south towards Yellowstone
Park is via U.S. Highway 91. There are numerous other state highways and Gallatin County maintained
roads that provide access throughout this region. Commercial air service, truck and rail transportation are
considered to be adequate. Gallatin Field which is located in the adjacent community of Belgrade is the
second busiest airport in the state and provides air service for this area.
Governmental Considerations
The City of Bozeman is a City Commission/City Manager form of government with an elected
municipal judge. There are five commissioners elected with no party affiliation and are elected to a four-
year term which are overlapping. The City Commissioner elections are held every two years and the terms
of the commissioners are staggered and the candidate who receives the most votes in an election becomes
the mayor the last two years of their term.
The City of Bozeman has approximately 40 police officers and the fire department has
approximately 18 firefighters plus the Fire Chief, Deputy Chief/Marshall, and seven captains. There are
three fire stations in the City of Bozeman and overall the fire and police protection services are considered
to be good.
The Department of Planning and Community Development processes applications for new
development in the city limits. This department enforces the zoning regulations within the city limits of
Bozeman. Gallatin County administers all zoning for properties outside the city limits and within the
“zoning donut”. The Gallatin County Comprehensive Plan encourages development near the existing city
limits and/or services and discourages development in more remote locations. In general, the planning
and zoning regulations in this area are considered stringent.
Conclusion
Bozeman and Gallatin County has population and overall growth trends that are continuing
upward. This area offers a wide variety of outdoor recreational opportunities, cultural resources, tourism,
and coupled with the presence of Montana State University this area is poised for continued growth.
315
20
Bozeman has a young and very well educated work force and coupled with its diverse economy the
general outlook for Bozeman, Belgrade and the surrounding small communities is good.
Overall the real estate market in Bozeman is strong. 2013 was the first year of strong market
conditions after 5+ recession years. Residential and commercial activity has increased significantly.
Residential apartment occupancy is more or less at 100%, and commercial lease rates and commercial
property values have been increasing as well.
316
21
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
NEIGHBORHOOD DATA & ANALYSIS
The subject site is located just west of the Main Street and North 19th Avenue intersection which
is one of the busiest intersections in all of Bozeman. Main Street is the primary east/west thoroughfare
providing access to the downtown area near the east end of the city limits and also provides access to
Four Corners and Belgrade to the west. North 19th Avenue is one of Bozeman’s primary north/south
traffic streets and supports much of Bozeman’s new commercial growth. North 19th Avenue provides
direct access to Interstate 90 to the north and Montana State University to the south.
Between Main Street/Huffine Lane and Interstate 90 there’s a mix of single family developments,
multi-family housing projects and the remaining farm and ranch properties. South of Main Street/Huffine
Lane is a mix of residential developments, rural residential home sites (1- 20 acres) and larger farm and
ranch properties. Retail development along Main Street has remained strong over the years but it has been
pushed to the west where Main Street transitions into Huffine Lane because simply there is little vacant
land left for development along Main Street.
Elementary schools, middle schools and Bozeman High School are all located nearby. The
Gallatin Valley Mall is located just to the southwest on the north side of Main Street/Huffine Lane. City
317
22
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
water and sewer services are readily available throughout this neighborhood, and natural gas and electrical
service are provided throughout the area by North Western Energy.
For a number of years’ most of the new commercial development in Bozeman was happening
along North 19th Avenue. However much of this land has become developed in recent years and now
more development is being seen along either side of Huffine Lane as the Bozeman city limits continue to
expand north and west. I expect this neighborhood will continue to development in this manor because
there is a lack a vacant, developable land at the east end of Bozeman. In my opinion market conditions
will remain strong in this neighborhood and most likely market values will appreciate accordingly. This
trend is consistent with what other neighborhoods are experiencing in the Bozeman city limits.
318
23
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
PROPERTY DESCRIPTION
Size: As shown on the property record card in the addenda the subject property
is 12.33 acres or 537,095 SF.
Shape: Somewhat irregular.
Topography: Most of the topography is level. Natural water drainage near the southeast
corner has created some undulations on this land.
Soil Conditions: Soil conditions are unknown and no soils test was provided to your
appraiser.
Easements: To the best of my knowledge there are no easements or encroachments on
the subject property that would adversely affect its market value. A title
policy should be used for the final determination of easements and
encroachments.
319
24
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Access: There is access from both North 20th Avenue and West Beall Street.
Utilities: It is my understanding city water and sewer service are readily available.
Natural gas and electrical service are provided by North Western Energy.
Functional Adequacy: This site is located at the SWC of N. 20th Avenue and W. Beall Street, and
is one block north of Main Street and 1 block west of N. 19th Avenue.
Obviously this site works well for its current use as a city park. But
considering its good access, slightly irregular shape, and mostly level
topography it appears this site is better suited for its highest and best use
which is multi family.
Flood Plain: The subject property is located in Flood Zone X which is an area of
minimal flooding. This information was extracted from FEMA's National
Flood Hazard Layer Website. The Community Panel No. is 30031 C 0812
D. This map is dated September 2, 2011.
Nuisances or Hazards: To the north is a mix of older single family and multi-family dwellings.
Land directly to the east has been developed with newer retail buildings
that have frontage on N. 19th Avenue or Main Street. To the south there
are several undeveloped lots and older retail buildings fronting Main
Street. Directly to the west is Lessley Estates Condominium Development.
These uses are typically to this neighborhood and do not adversely affect
the market value of the subject site.
Site Improvements:
There are a number of site improvements on this land that are
specific to its use as a city park. These site improvements include 2
baseball diamonds, numerous picnic tables and benches, a concrete
320
25
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
skate park near the SEC, basketball court, playground equipment,
storage sheds, restrooms and a paved parking area off of West
Beall Street. There is mature landscaping throughout the site. None
of the site improvements are valued in this appraisal report, and
only the underlying land is valued for a potential land swap.
321
26
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
SUBJECT PROPERTY PHOTOGRAPHS
Photograph shows the NEC of the subject site.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
Restrooms and parking area on W. Beall Street.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
322
27
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
SUBJECT PROPERTY PHOTOGRAPHS
Photograph taken from NWC and showing one of the
baseball diamonds.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
Basketball court just south of restrooms.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
323
28
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
SUBJECT PROPERTY PHOTOGRAPHS
Photograph taken near the SEC and looking west.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
Photograph taken near the SEC and looking north.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
324
29
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
SUBJECT PROPERTY PHOTOGRAPHS
Looking north at the skate park area.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
Looking west at the skate park area.
Photograph taken February 20, 2017 by J. Michael Joki, MAI,
325
30
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
ZONING
I confirmed at the City of Bozeman Planning Department that the subject site is zoned R-2
(Residential Two Household Medium Density District). The intent of the R-2 zoning district is to
provide for one and two household residential development at urban densities within the city in areas
that present few or no development constraints, and for community facilities to serve such development
while respecting the residential quality and nature of the area.
A complete copy of the zoning ordinance is included in the addenda which further explains the
allowed uses, conditional uses, building coverage ratios, etc.
326
31
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
HIGHEST AND BEST USE OF LAND
"The reasonably probable and legal use of vacant land or an improved property that is
physically possible, appropriately supported, financially feasible and that results in the
highest value. The four criteria the highest and best use must meet are legal
permissibility, physical possibility, financial feasibility, and maximum productivity.
Alternatively, the probable use of land or improved property - specific with respect to
user and timing of the use - that is adequately supported and results in the highest present
value."2
The definition above applies to the highest and best use of vacant land or improved property. It
is to be recognized that in cases where a site has existing improvements on it, the highest and best use
may very well be determined to be different from the existing use. The existing use will continue,
however, unless and until land value in its highest and best use exceeds the total value of the property in
its existing use.
Quite often in estimating the highest and best use of land, the appraiser is controlled by
governmental regulations. These controls are generally zoning ordinance, parking requirements and
building codes. Also, in the estimate of highest and best use, one must recognize the attitude of typical
investors in the marketplace.
Real estate will usually fall into certain definite development patterns, and their uses can be
classified as: residential, agricultural, recreational, industrial, commercial and public use. In valuing the
highest and best use of the land both as if vacant and improved, the following criteria must be met. 1)
legally permissible, 2) physically possible, 3) financially feasible, and 4) maximally productive.
Legally Permissible
The existing R-2 (Residential Two Household Medium Density District) zoning allows for a
number of residential uses, including multi-family uses. In addition to the permitted uses there are lot
area, width and building height requirements that must be met. There are no known private deed
2 The Dictionary of Real Estate Appraisal, 5th ed., s.v. "highest and best use".
327
32
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
restrictions on the subject site which would prohibit any of the allowed uses under this zoning ordinance.
There are no known public reactions, or no known public intent of a re-zoning of the subject site that
would potentially affect its development.
Several of the development classifications previously discussed can be eliminated from
consideration. This zoning does not allow for commercial, industrial, agricultural, or recreational use and
therefore these uses can be eliminated from consideration. The only remaining use that is a reasonable
use and a legally permissible use of this site is for development with a residential use.
Physically Possible
As previously explained there is good access to the subject site from either North 20th Avenue or
West Beall Street. City services are readily available and natural gas and electrical service have been
extended throughout this neighborhood. Soil conditions in the area have proven adequate for
development of all property types. Based on the physical characteristics of the subject site and the
existing properties within this neighborhood the legally permissible uses permitted by the R-2 zoning
would be physically possible.
Financially Feasible
Bozeman has been experiencing growth again, particularly in the past three years, and demand
for single family and multi-family housing in this neighborhood out ways the supply. The R-2 zoning
allows for development with a residential use, including multi-family, which has seen a significant
increase in demand in this neighborhood as well as most areas of Bozeman. It will be shown in the
following land valuation section of this appraisal report that the highest and best use of this site is for
development with a multi-family use.
Maximally Productive
The use that conforms with the requirements of the first three tests and will provide maximum
productivity of the subject site is for development with a residential use, more particularly a multi-family
use. In concluding to the highest and best use of a property the physical use, the timing of the use and
the user’s/most probable buyers needs to be defined. The maximally productive use of the subject site
328
33
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
would be for development with a residential use that would be conducive to the surrounding residential
uses in this neighborhood. In terms of the most likely buyer and user of this site there are two options.
An end-user sale is a sale to a buyer who intends to immediately utilize the property to its highest and
best use. A speculative-investor sale is the sale to a buyer who purchases the property with no intention
of immediately utilizing the property to its highest and best use. It is my opinion the subject site would
be purchased by an end user who intends to immediately utilize the property to its highest and best use.
329
34
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
PROPERTY VALUATION
In the Sales Comparison Approach an indication of value is derived by comparing the relative
utility and desirability of the subject site with comparable properties that have recently sold or are
currently listed for sale. Basic to this approach is the principle of substitution which states that "when a
property is replaceable in the market, its value tends to be set by the price required to acquire an equally
desirable substitute property."
In this appraisal report vacant land is valued therefore the Cost and Income Approaches to value
are not applicable.
SITE VALUATION
The method employed to value the site as if vacant and available for sale is the Sales Comparison
Approach. An investigation of the market revealed several sales and listings indicative of what a well-
informed buyer or seller would consider in forming an opinion of value. Three sales were chosen as
being most appropriate to compare against the subject site. Descriptive data and photographs of these
comparables are contained in the Addenda.
Adjustments
All comparables differ somewhat from each other, and from the subject in various ways. The
usual differences are for cash equivalency, market conditions, location, and a number of physical
characteristics. Many of these factors, in varying degrees, are applicable in the appraisal of the subject
property. When dissimilarities are found in comparable properties, they are adjusted for by adding to the
comparable price when the dissimilar factor is inferior to the same factor found in the subject property.
330
35
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Likewise, a minus adjustment should be made when the comparable sale has a factor which is superior to
that found in the subject property. The sale properties, then, are adjusted to the subject property.
However, in the market it is often difficult and sometimes impossible to accurately isolate a given
factor. In short, one very seldom finds sales which are identical in all respects but one, and thus is able
to prove conclusively the value, or lack of it, for any one factor due to a difference in sale price. Often,
there are plus and minus factors which offset each other. Thus, the use of subjective judgment, to some
degree, may be exercised.
Nevertheless, the differences in values are real and adjustments based on as much fact as can be
found, will be made. Then, the appraiser may call upon his experience to make subjective judgments.
Property Rights
Each of the sales involve fee simple property rights. As a result, no property rights adjustments
were warranted.
Financing:
All Sales were cash to the seller or on terms considered cash equivalent, and no adjustments were
required.
Conditions of Sale:
No non-market conditions motivating the buyer or seller involved in the transactions are known,
therefore no adjustments are required.
Expenditures Immediately After Sale:
None of the sales required expenditures immediately after sale, and therefore no adjustments are
required. If expenditures were verified they were typically associated with annexation into the city limits.
331
36
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Market Conditions:
A market conditions (time adjustment) is required to bring all comparable sale properties up to
the effective date of the appraisal report which is February 20, 2017. Bozeman was experiencing
significant decline in real estate values when the local and national recession was in effect. Since 2011 real
estate values have rebounded in this market, and have become particularly strong since 2013, with new
projects being developed again. Demand for unimproved land is now out weighing its supply.
I will utilize three comparables in the following analysis with one sale closing in 2013, one sale
closing in 2016, and the other closing in 2017. Each of the developers, real estate agents and real estate
appraisers I interviewed in this market were of the opinion market conditions are strong in Bozeman
with more demand than supply of vacant land. The persons I interviewed were consistently of opinion
the price of unimproved sites, particularly those with a highest and best use of multi-family, have
conservatively appreciated 10% since 2016, 20% since 2015 and at least 30% since 2013.
To provide some support for the information given to me in the aforementioned interviews I
have completed a paired sales analysis using Sale No. 2 and No. 3 from the following land sale
adjustment grid. Sale No.2 sold on 12-6-13 for $1.50/SF and Sale No. 3 sold on 1-18-17 for $1.75/SF.
This paired sales analysis indicates values increased 16.67% over this three year period or 5.56% per year.
Both of these sales are very similar in terms of their physical aspects except they have a difference in
zoning. Sale No. 3 is not annexed and therefore has no city zoning and certainly would require an
upward adjustment for this characteristic which would increase the annual appreciation rate. A true
paired sales analysis with two sales having all of the same physical characteristics with the only difference
being time of sale are difficult to find even in an active sales market like Bozeman. But at least this paired
sales analysis provides some support with market data for the information provided to me during my
interviews. I have considered the information given to me during my interviews and this paired sales
analysis and will adjust Sale No. 1 upward by 5% (based on 10% per year) and will adjust Sale No. 2
upward by 30% for market conditions. Sale No. 3 closed in 2017 and just 30 days prior to the effective
date of this report and therefore is not adjusted for market conditions.
332
37
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Remaining Adjustments:
The remaining adjustments will be explained in a qualitative analysis which is an effective
technique that recognizes the inefficiencies of a real estate market and the difficulty in expressing the
adjustments with mathematical precision. The adjustments included in the qualitative analysis are
location, size, access, topography, utilities, and use. The land sales adjustment grid can be seen on the
following page.
333
38
LAND SALE LOCATION MAP
334
39
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
LAND SALE ADJUSTMENT GRID
SUBJECT SALE 1 SALE 2 SALE 3
Sale Price $536,000 $800,000 $764,600
Size 12.33 acres or
537,095 SF
10.00 acres or
435,600 SF
12.25 acres or
533,610 SF
10.03 acres or
436,907 SF
Price/SF $1.23 $1.50 $1.75
Date of Sale 9/30/16 12/6/13 1/18/17
Market Adjustment +$26,800 +$240,000 -0-
Adjusted Price $562,800 $1,040,000 $764,600
Adjusted Price/SF $1.29 $1.95 $1.75
Location SWC of N. 20th Ave
& W. Beall St.
West side of
Thomas Drive
East side of Fowler
Ave, Just S. of W.
Babcock
South side of Oak
Street
Comparability Inferior Similar Similar
Size 12.33 acres or
537,095 SF
10.00 acres or
435,600 SF
12.25 acres or
533,610 SF
10.03 acres or
436,907 SF
Comparability Similar Similar Similar
Access N. 20th Ave & W.
Beall St.
Thomas Drive Fowler Avenue Oak Street
Comparability Similar Similar Similar
Topography Mostly level Level Mostly level Level
Comparability Similar Similar Similar
Utilities All City Services All City Services All City Services All City Services
Comparability Similar Similar Similar
Highest & Best Use R-2 Multi-Family R-4 Multi-Family R-3 & R-4
Multi-Family
County Rural
Residential Zoning
Comparability Superior Similar Inferior
Overall Comparability Inferior Similar Inferior
335
40
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Sales Analysis:
The subject site is located at the southwest corner of North 20th Avenue and West Beall Street. This
slightly irregular shaped site is 12.33 acres or 537,095 SF, has mostly level topography and all city services
are available. The R-2 zoning allows this site to be developed with a multi-family use.
Comparable No.1 is the sale of a 10.00 acre or 435,600 SF site that sold September 30, 2016 at
$536,000 or $1.23/SF. The time adjusted price is $1.29/SF. Comparable No. 1 is located on Thomas Drive
and before any development can occur North 27th Avenue has to be extended so significant infrastructure
expense will have to be incurred. This site is zoned R-4 which is a higher density multi-family zoning and is
superior to the subjects R-2 zoning. Even though this comparable is quite similar to the subject site in all of
its other aspects this comparable is considered to be inferior because of its location and pending
infrastructure expenses.
Comparable No. 2 is a 12.25 acre or 533,610 SF site that sold on December 6, 2013 at $800,000 or
$1.50/SF. The time adjusted price is $1.95/SF. Comparable No. 2 is located just to the west of the subject
property and is very similar to the subject property in terms of its physical aspects. The only superior feature
of this site might be its mix of R-3 and R-4 zoning. However this site was purchased by the City of
Bozeman and is now Bozeman Ponds Park and has the same use as the subject site. Overall comparable
No. 2 is considered to be similar to the subject property.
Comparable No. 3 is the sale of 10.03 acre or 436,907 SF site that sold on January 18, 2017 at
$764,600 or $1.75/SF. This recent sale is not adjusted for market conditions. This comparable is also very
similar to the subject site in terms of its physical aspects and the only difference is this site was still in the
county at the time of sale and only had county zoning.
336
41
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
The value indications derived from the comparables are reconciled into a single value indication by
arranging the three comparables in an array relative to the subject.
BRACKETING THE SUBJECT PROPERTY
As shown in the chart above the most similar comparable is Comparable No. 2. Comparable No. 1
is considered to be inferior because of its location, and Comparable No. 3 is inferior because of its county
zoning. Comparable No. 1 and No.2 both have the same highest and best use as the subject property as
multi family, but more importantly, Comparable No. 2 is being used for the same use as a city park.
Considering this information, it is my opinion the subject site has a current market value of $1.90/SF.
$1.90/SF x 537,095 SF = $1,020,481
$1,020,000 (R)
Comparable Adjusted Price/SF
Overall
Comparability
2 $1.95 Similar
Subject Property
3 $1.75 Inferior
1 $1.29 Inferior
337
J. Michael Joki, MAI, SRA
HELENA, MONTANA
TABLE OF CONTENTS
INTRODUCTION Page
Letter of Transmittal
Certification
Assumptions and Limiting Conditions 5
Summary of Important Facts and Conclusions 7
Subject Property Photograph 8
DESCRIPTION, ANALYSIS AND CONCLUSION:
Definition of Market Value 9
Purpose of Appraisal 9
Intended Use of the Appraisal and Intended Client 10
Scope of Appraisal 10
Summary of the Appraisal Problem 12
Property Rights Appraised 12
Identification of Property and Legal Description 12
History of the Property 13
Regional Map 14
Regional and City Analysis 15
Neighborhood Analysis 21
Property Description 23
Subject Property Photographs 26
Zoning 30
Highest and Best Use Before 31
The Valuation Process 34
Site Valuation 34
Land Sale Location Map 38
Land Sale Adjustment Grid 39
Bracketing the Subject Property 41
338
J. Michael Joki, MAI, SRA
HELENA, MONTANA
ADDENDA:
Property Record Card
Zoning Ordinance
Comparable Land Sale Sheets with Photographs
Qualifications of the Appraiser
State License
339
J. Michael Joki, MAI, SRA
HELENA, MONTANA
ADDENDA
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
AN APPRAISAL OF THE
1.41ACRE SITE ON THE WEST
SIDE OF NORTH 20TH AVE AND
JUST SOUTH OF WEST BEALL ST
IN BOZEMAN, MONTANA
DATE OF VALUATION
FEBRUARY 20, 2017
FOR
CAROLYN POISSANT
CITY OF BOZEMAN
BY
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
373
J. MICHAEL JOKI, MAI, SRA
P.O. BOX 281
HELENA, MONTANA 59624
Phone (406) 442-2159
March 16, 2017 FAX (406) 442-6196
Carolyn Poissant, MLA, AICP
Manager of Trails, Open Space and Parks Design
City of Bozeman-Department of Parks and Recreation
P.O. Box 1230
Bozeman, Montana 59771-1230
RE: An appraisal of the 1.41 acre (61,650 SF) site located on the west side of N. 20th Avenue and just
south of West Beall Street in Bozeman, Montana.
Dear Mrs. Poissant:
Per your request I have made the necessary inspection and analysis to appraise the above referenced
property. The attached report provides the essential data and detailed reasoning employed in my final value
estimate. The report contains 38 pages.
I have appraised the property as a whole, owned in fee simple and unencumbered. I assume no
responsibility for matters that are legal in nature nor do I render any opinion as to title.
The site being appraised is a 1.41 acre or 61,650 SF unimproved site. There are site improvements
on the adjacent Kirk Park site that encroach on this site therefore the City of Bozeman is attempting to do a
land swap with these two sites.
The value reported is qualified by certain definitions, assumptions and limiting conditions, and
certification which are set forth within the attached report. This appraisal report is intended to conform with
the Uniform Standards of Professional Appraisal Practice.
Based on my analysis, the market value of the subject site as set forth, documented and qualified in
the attached report under conditions prevailing on February 20, 2017 was:
Eight Hundred and Twenty Five Thousand Dollars
$825,000
I direct your attention to the data, discussions and conclusions which follow.
Respectfully submitted,
J. Michael Joki, MAI, SRA
Montana State Certified General Real Estate Appraiser #152
374
I CERTIFY THAT...
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported Assumptions and
Limiting Conditions, and are my personal, impartial, and unbiased professional analyses, opinions,
and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report, and I have
no personal interest or bias with respect to the parties involved.
4. I have performed no services, as an appraiser or in any other capacity, regarding the property that is
the subject of this report within the three-year period immediately preceding acceptance of this
assignment.
5. My compensation is not contingent upon the reporting of a predetermined value or direction in
value that favors the cause of the client, the amount of the value estimate, the attainment of a
stipulated result, or the occurrence of a subsequent event. This appraisal assignment was not based
on a requested minimum valuation, or a specific valuation.
6. My analysis, opinions and conclusions were developed, and this report has been prepared, in
conformity with The Uniform Standards of Professional Appraisal Practice, and with the
requirements of the Code of Professional Ethics and the Standards of Professional Practice of the
Appraisal Institute.
7. The use of this report is subject to the requirements of the Appraisal Institute relating to the review
by its duly authorized representatives.
8. As of the date of this report, I, J. Michael Joki, have completed the requirements of the continuing
education program of the Appraisal Institute.
9. I have made a personal inspection of the property that is the subject of this report and have afforded
the owner, or their representative, the opportunity to accompany me on the inspection.
10. I have personally inspected and verified the comparable sales relied upon in making this appraisal.
11. No one provides significant real property appraisal assistance to the person signing this certification.
12. I have the necessary level of knowledge and experience to credibly estimate the value of the subject
property, or have taken reasonable steps to achieve such competency and to provide a professional
appraisal of the subject property, in accordance with the Uniform Standards of Professional
Appraisal Practice.
375
13. I am currently licensed in the State of Montana (Certificate #152) as a Certified General Real Estate
Appraiser, and hold the MAI and SRA designations conferred by the Appraisal Institute.
DATE: February 20, 2017 SIGNATURE:
Appraised By: J. Michael Joki, MAI, SRA
Certified General #152
376
5
J. Michael Joki, MAI, SRA
HELENA, MONTANA
ASSUMPTIONS AND LIMITING CONDITIONS
This is to certify that the appraiser in submitting this statement and opinion of value of subject property
acted in accordance with and was bound by the following principles, limiting conditions and
assumptions. Unauthorized use of this report is set forth below.
1. No responsibility is assumed for matters that are legal in nature nor is any opinion rendered on
title of property appraised.
2. Unless otherwise noted, the property has been appraised as though free and clear of all
encumbrances.
3. All maps, areas, plans, specifications, and other data furnished your appraiser were assumed to
be correct. No survey of the property was made by this firm. Furthermore, all numerical
references to linear measurements, area, volume or angular measurements should be assumed to
be "more or less" (+/-) and are accurate to a degree consistent with their use for valuation
purposes.
4. This appraisal considers only surface rights to the property with consideration of current zoning
and land use controls. The estimate of highest and best use will form the basis for the value
estimate. This appraisal does not consider mineral, gas, oil or other natural resource rights that
may be inherent in the ownership of the property.
5. In this appraisal assignment any potentially hazardous material found on the land which may or
may not be present on the property, has not been considered. The appraiser is not qualified to
detect such substances. Any interested party is urged to retain an expert in this field if there is
any question regarding such potentially hazardous material. If such material or substance is
present it could adversely affect the value reported.
6. The appraiser is not a seismologist. This appraisal should not be relied upon as to whether a
seismic problem exists, or does not actually exist on the property. The property which is the
subject of this appraisal is within a geographic area where earthquakes and other seismic
disturbances have previously occurred and where they may occur again. Except as specifically
indicated in the report, no seismic or geologic studies have been provided to the appraiser
concerning the geologic and/or seismic condition of the property. The appraiser assumes no
responsibility for the possible effect on the subject property on seismic activity and/or
earthquakes. I have not made a specific compliance survey and analysis of this property to
determine whether or not it is in conformity with any seismic requirements by the City or
County. It is possible that a survey of the property could reveal that the property does not meet
the required seismic requirements. If so, this fact could have a negative effect upon the value of
the property. Since I have no direct evidence relating to this issue, I did not consider possible
noncompliance requirements in estimating the value of the property.
377
7. All data contained in this report and in the appraiser's files, as obtained from other sources, upon
which to any degree the opinions and conclusions were based, are considered reliable and
believed to be true and correct. However, the appraiser does not assume responsibility for the
accuracy of such items that were obtained from other parties.
8. There shall be no obligation to give testimony or attendance in court by reason of this appraisal
with reference to the property in question unless arrangements have been previously made and at
an additional fee.
9. Disclosure of the contents of this appraisal report is governed by the by-laws and regulations of
the Appraisal Institute.
Neither all nor any part of the contents of this report especially the conclusions as to value, the
identity of the appraiser, or the firm with which he is connected, or to the MAI and SRA
designations, shall be disseminated to the public through advertising media, news media, public
relations media, sales media, or any other public means of communication without the prior
written consent of the appraiser.
10. J. Michael Joki, MAI, SRA, specifically does not authorize the out-of-context quoting from or
partial reprinting of this appraisal report.
11. The liability of J. Michael Joki, MAI, SRA and employees is limited to the client and to the fee
collected. Further, there is no accountability, obligations or liability to any third party. If this
report is placed in the hands of anyone other than client, the client shall make such party aware
of all limiting conditions and assumptions of the assignment and related discussions. The
appraiser assumes no responsibility for any costs incurred to discover or correct any deficiencies
of any type present in the property; physically, financially, or of a legal nature.
12. The fee for this appraisal report is for the service rendered and not for time spent on the physical
report or for the physical report itself.
13. This appraisal report is prepared for the appraisers’ client the City of Bozeman. It is my
understanding the City of Bozeman is working with the owners of the subject site to do a land
swap with the adjacent Kirk Park site because some of the park improvements are encroaching
on the subject site. No third parties are authorized to rely upon this report without the express
written consent of the appraiser.
14. This Appraisal Report is intended to comply with the reporting requirements set forth under
Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an
Appraisal Report. As such, it presents discussions of the data, reasoning, and analysis that were
used in the appraisal process to develop the appraiser’s opinion of value. Supporting
documentation concerning the data, reasoning and analysis is contained in the appraiser’s file.
378
SUMMARY OF IMPORTANT FACTS AND CONCLUSION
PURPORTED OWNER: Simkins, Haggerty and Courtney
LOCATION OF PROPERTY: This site is located on the west side of N. 20th
Avenue and just south of W. Beall Street in
Bozeman Montana.
LAND SIZE: 1.41 acres or 61,650 SF
IMPROVEMENTS: None.
PROPERTY RIGHTS APPRAISED: Fee Simple
ZONING: B-2 (Community Business District)
PRESENT USE: Unimproved.
HIGHEST AND BEST USE: For development with an office or retail use.
DATE OF VALUATION: February 20, 2017
CONCLUDED ESTIMATE OF
MARKET VALUE $825,000
379
SUBJECT PROPERTY PHOTOGRAPH
Looking south at the subject site from its northwest corner.
380
DEFINITION OF MARKET VALUE
Market value, as used in this report is defined as follows:
“The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in
other precisely revealed terms, for which the specified property rights should sell after reasonable
exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller
each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue
duress.”1
Implicit in this definition is the consummation of a sale as of a specified date and the passing of
title from seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider
their own best interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in US dollars or in terms of financial
arrangements comparable thereto; and
5. The price represents the normal consideration of the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated
with this sale.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal report is to arrive at a supportable estimation of the market value.
1 The Appraisal of Real Estate, 12th Edition, (Appraisal Institute, 2006), p. 22.
381
INTENDED USE OF THE APPRAISAL AND INTENDED CLIENT
It is understood that the intended use of this appraisal report is to assist the City of Bozeman
with a swap of land from Kirk Park and the subject site. The client is the City of Bozeman, and the
intended users of the appraisal report are the City of Bozeman and the owners of the subject site
(Simkins, Haggerty and Courtney).
SCOPE OF THE APPRAISAL
Based on the requirements of the Uniform Standards of Professional Appraisal Practice and the
guide notes to the Standards of Professional Appraisal Practice adopted by the Appraisal Institute, the
Scope of Work has become the primary element when defining the appraisal problem. USPAP involves
binding requirements and specific guidelines that outline the procedures to be followed in developing an
appraisal, and analysis or opinion that pertain to reporting or communication of that appraisal opinion
defined as Standards 1 and 2. The appraisal service and reporting option must be consistent with the
Scope of Work in defining the appraisal service and how it is to be communicated. This appraisal is in
compliance with the regulatory requirements of the State of Montana administered by the Montana
Board of Real Estate Appraisers based on compliance with Standards and Ethics defined within USPAP.
The scope of work rule states that an appraiser must:
1. Identify the problem to be solved;
2. Determine and perform the scope of work necessary to develop credible assignment results;
3. Disclose the scope of work in the report.
Initially I spoke with Carolyn Poissant from the City of Bozeman- Department of Parks and
Recreation. Carolyn Poissant explained the City of Bozeman is attempting to do a land swap with the
subject site for some land in the adjacent Kirk Park parcel. Apparently some of the concrete skate park
improvements that are part of Kirk Park are encroaching on the north end of the subject site and the
382
owners of these two sites are attempting to do a land swap so the concrete skate park improvements do
not have to be relocated. As I understand land on the north end of the subject site will be exchanged for
Kirk Park land along the subject sites west boundary. I was not provided an illustration depicting the
exact areas that will be exchanged. I have been asked by the City of Bozeman to estimate the market
value of both sites so each party can be appropriately compensated for the land that will be included in
the proposed land swap.
I inspected the subject property on February 20, 2017. I was given permission to inspect the
subject property unaccompanied by Tom Starner who is one of the listing agents for the subject site.
This is also the day all photographs of the subject property were taken.
Real estate agents, local MLS Service, developers and real estate appraisers in Bozeman were
interviewed in an attempt to find relevant market data. Market data has been confirmed with the buyer,
seller or broker involved in the transaction. All of the comparable sales utilized in this appraisal report
are described in the body of the report and in more detail on the sales sheets included in the addenda.
As identified under Assumptions and Limiting Conditions and as explained under Property Rights
Appraised the title is assumed to be free and clear of liens and encumbrances.
The Scope of Work defines an appraiser's conclusions as to what is deemed necessary to provide
a creditable appraisal report. The property type suggests that only the Sales Comparison Approach to
land value is the relevant valuation methodology, and peer review would expect to see only this
technique used to produce this opinion of value. There is adequate sales data from within this
neighborhood and the surrounding community to produce a creditable result. The client is defined as the
City of Bozeman. The intended user is the client, and the intended use will be to assist the City of
Bozeman with a land swap involving land in Kirk Park and land in the subject site. The following
sources provided me data that was used in this appraisal report.
• Gallatin County Clerk and Recorder's Office
• City of Bozeman Planning Department
• Keith O’Reilly, MAI, Appraiser
• Mike Basile, Realtor
• Jack Catron, Realtor
• David Everett, Realtor
383
12
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
• Donnie Olson, Realtor
• Karl Cook, Realtor
• Tom Starner, Realtor
SUMMARY OF APPRAISAL PROBLEM
It is my understanding the City of Bozeman wants to swap land from the subject site with land
from the adjacent Kirk Park parcel. The City of Bozeman is attempting to complete this land swap
because some of the concrete for their skate park in Kirk Park is encroaching on the subject site. I have
been asked to estimate the current market value of both sites so the City of Bozeman and the owners of
the subject site can be appropriately compensated for the land involved in this proposed swap.
PROPERTY RIGHTS APPRAISED
This appraisal is made with the understanding and assumption that present ownership of the
subject property includes all rights that may be lawfully owned, and is therefore, title in fee simple as of
February 20, 2017. A fee simple estate is subject only to the limitations imposed by the governmental
powers of taxation, eminent domain, police power and escheat.
384
13
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
IDENTIFICATION OF PROPERTY AND LEGAL DESCRIPTION
The site that is the subject matter of this appraisal report consists of 1.41 acres or 61,650 SF and
is located on the west side of North 20th Avenue and just south of West Beall Street in Bozeman,
Montana. The legal description of the land is as follows:
“Block 6, West Park Manor 1st Addition, located in the NW ¼ of Section 11, Township 2 South,
Range 5 East, City of Bozeman, Gallatin County, Montana”
HISTORY OF THE PROPERTY
It is my understanding the subject site is the last remaining site from a much larger parcel
of land that has been developed over many years by the Simkins and Haggerty families. I confirmed with
Karl Cook, co-listing agent with Tom Starner for the subject site, that the subject site was listed for sale
in July, 2015 at $925,000. Reportedly the subject site was put under contract in October, 2016 at
$825,000. I have not been provided a copy of the buy/sell agreement but a copy of the multiple listing
sheet is included in the addenda. The pending sale of the subject site is further discussed in the sales
analysis section of this appraisal report on page 36. It is my understanding the buyer intends to develop
the subject site with a retail use.
385
14
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
REGIONAL MAP
386
15
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
REGIONAL AND CITY ANALYSIS
Bozeman is the county seat of Gallatin County and is one of 56 counties in the State of
Montana. Gallatin County is located in a mountainous area of Montana north of the
Montana/Wyoming border and Yellowstone National Park. Bozeman primarily lies on the south
side of Interstate 90 and is located approximately 140 miles west of Billings, Montana and 80 miles
east of Butte, Montana.
Gallatin County has grown faster than any other county in the State of Montana over the
past decade according to the Census Bureau. Gallatin County includes almost 2,500 square miles of
mountainous lands that offer a variety of topography and climate. Nearly half of Gallatin County is
under public ownership by the Gallatin National Forest, State of Montana, Bureau of Land
Management or the National Park Service.
Forces Influencing Property Values
The value of real estate is influenced by the interaction of four major forces. Social
considerations, economic considerations, government and environmental considerations. The four
forces are discussed as follows:
Social Considerations
Social forces are exerted largely by population characteristics, including population growth,
density, and age distribution. According to the U. S. Census Bureau the population of the City of
Bozeman increased from 27,509 in 2000 to 37,280 as of April, 2010 and increase of nearly 9,800 people.
This represents an increase in population of approximately 35.5% over this 10-year period, or an average
rate of growth of about 3.55%/year. From April, 2010 to April, 2012 the population increased from
37,280 to 38,695, an increase of nearly 1,415 people which equated to a growth of 3.8% over this time
frame.
Gallatin County’s population increased from 67,831 in 2000 to 89,513 in 2010 or approximately
21,700 people. This represents an increase in population of approximately 32% over a 10-year period or
an average growth rate of 3.2%/year. Between April, 2010 and April, 2012 the population increased from
89,513 to 92,614 people or 3,101people which equates to a growth rate of about 3.5% over this time
period. Comparatively, the State of Montana grew from 989,417 people in April 2010 to 1,005,140
people in 2012 or 15,724 people which equates to a growth rate of 1.6% over that time frame.
387
16
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
In addition to population growth the City of Bozeman continues to see growth in its geographic
size. In 1990 the City of Bozeman was approximately 6,420 acres (± 10 square miles) and by the end of
2009 it had expanded to 12,300 acres (±19.25 square miles) resulting in an increase of ±92% over this 19-
year period. This growth was to accommodate the increasing population which required new land for
residential, commercial and industrial development. This growth significantly slowed in 2009 and 2010
which was being seen all throughout this region as the national economic recession took effect.
Bozeman has a significantly lower home ownership rate than most other communities in the
county primarily due to the student body of Montana State University. Bozeman also has a smaller
average household size and a smaller portion of families than other areas of Gallatin County. Bozeman
has an average household size of 2.27 people while the average household size for Gallatin County is 2.49
people. Just over half of the Bozeman households are families compared to ±63% countywide. The
population of Bozeman is considerably younger than Gallatin County as a whole, and even more so, in
comparison to the State of Montana. Again this emphasizes the significance of Montana State University
being located in Bozeman. Bozeman and Gallatin County has transformed over the past decade from a
primarily agricultural based community to a tourism related community. Bozeman and Gallatin County
offers a high quality of life due to its low crime rate, offering of many cultural experiences, the presence
of Montana State University and its education offerings. An abundance of outdoor activities that include
excellent downhill snow skiing, world class fly fishing rivers, streams and access to numerous state and
federally owned lands are all nearby.
Economic Considerations
Bozeman, like many communities in Montana experienced significant growth in population and
economy for a number of years. This area was affected by the national recession just like many other areas
in the country however new growth and development has begun again and the outlook for Bozeman and the
vicinity is quite positive based on a number of factors.
• County seat of Gallatin County.
• Wide range of skills in the labor force.
• Home of Montana State University.
• Well located in southwestern Montana
• Numerous recreational opportunities
388
17
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Bozeman is somewhat unique when compared to other communities in Montana because there are
few employers who employ a large amount of the population. Missoula, Montana, as an example was very
dependent on the lumber and timber industry and Butte, Montana had always relied heavily on the mining
industry. When those industries slowed those communities were very heavily impacted. The primary
employer in Bozeman is Montana State University. Other major sectors of the economy that provide
employment are construction, local and state government, manufacturing, technology, agricultural and
retail service. Montana State University currently employs about 3,500 people as permanent faculty/staff
and they also employ over 2,000 students in part time work. In the fall of 2,016 the student enrollment at
MSU was nearly at 16,000 people which certainly has a significant effect on the local economy. Other
major employers in Gallatin County include the State of Montana, Gallatin County, the City of Bozeman,
Bozeman Deaconess Hospital, Right Now Technologies. With such a diverse employment base the local
economy tends to be sheltered from a downturn in any of the Country’s key employment industries.
In 2010 Bozeman was declared as the most expensive place to live in Montana based upon a report
by Propera Business Network. This report stated that Bozeman’s 2009 cost of living was 4.4% above the
national average. The other Montana cities that showed an overall cost of living above the national average
were Missoula at 1.8% and Kalispell at 1.5%. Residential rent levels in Gallatin County have remained
stable primarily due to the presence of Montana State University. Rents in this community will periodically
show a slight decline however they tend to stabilize or even increase rather quickly due to the continued
growth of Montana State University.
Overall the economic growth has been much stronger in Bozeman and Gallatin County than what
is being seen statewide. Historically the sectors in Bozeman and Gallatin County that show the most
substantial growth are agricultural services, construction, manufacturing, finance, insurance, real estate and
lodging. Currently the unemployment rate in Montana is 6.4% and Gallatin County recorded a slightly
lower unemployment rate at 5.8%. Gallatin County’s labor force is currently estimated at 52,070
employees, the third largest labor force in Montana’s 56 counties.
Over the past ±10 years residential building permit activity in the City of Bozeman was on the rise
and reached its peak in 2005 and then began to decline over the next 5 years, and most significantly in 2008
and 2009. Residential building permits began to increase again in 2010 and have been on a steady incline.
Bozeman has been experiencing new growth in several areas of town but no area has provided as much
commercial real estate development at the 19th Avenue corridor. Recent stores and restaurants developed
along 19th Avenue include Sportsman’s Warehouse, Lowes, IHOP, Bed Bath and Beyond, Staples, World
Market and REI. Most recently a new Safeway grocery store (±58,000 SF) was completed in December,
2011 and a Kohls department store (±55,300 SF) was completed in October, 2011.
389
18
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
The City of Bozeman facilities over the past 5 years have seen significant development and/or
renovation which includes the fire stations, police station, waste water treatment facilities, the completion of
a downtown parking garage, City of Bozeman Library, construction of the Gallatin County Detention
Center, an expansion of the landfill building etc. Montana State University has also seen significant
expansion and renovation which include a significant remodel of the football stadium, addition of the
Molecular Biology Center, renovations to the Health and Physical Education Center, addition of the Black
Box Theater, renovation of Gaines Hall etc.
Tourism brings a significant number of visitors to the Bozeman area. Yellowstone National Park,
the first national park in the United States, is located approximately 65 miles south of Bozeman. Big Sky
Ski Resort is located approximately 45 miles south of Bozeman and has recently been listed as the seventh
best ski resort in the United States. This ski area averages over 300" of annual snowfall with skiing available
November through April. The Yellowstone Club lies adjacent to Big Sky Ski Resort and is an exclusive
vacation/residential development that includes both private skiing and golfing. This exclusive, private
development had filed for bankruptcy in 2008 and in 2010 was purchased by Cross Harbor Capital and for
several years saw significant decline in sales and values. However, the private development has begun to
rebound again as sales are starting to climb again. Other ski resorts in Gallatin County include Moonlight
Basin which is also adjacent to Big Sky and Bridger Bowl which lies approximately 15 miles to the north of
Bozeman.
Environmental Considerations
Environmental and physical forces, both natural and man-made, can influence property values.
These forces include climatic conditions, topography and natural barriers, and transportation systems.
Bozeman’s climate clearly reflects its mountain valley location. Bozeman truly has four seasons
with its short summers being pleasant which are typically characterized by warm to hot days and cool
nights. The average high temperature in the summer is in the upper 80°’s and the average low in the
winter is the mid to lower 30°’s. Spring tends to come late in the Gallatin Valley as ⅓ of its annual
precipitation ±19" falls during May and June. The average annual snowfall in Bozeman is ±72" and the
average length of the growing season is about 107 days. The climate of the county varies according to
elevation but is generally characterized by relatively cold winters and warm summers. Snow removal is a
common operating cost that will affect real estate in the winter months. In contrast air conditioning costs
390
19
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
are less during the fairly temperate summer months however heating bills can be quite high during the cold
winter months.
Bozeman is located on the south side of Interstate 90. Access to the south towards Yellowstone
Park is via U.S. Highway 91. There are numerous other state highways and Gallatin County maintained
roads that provide access throughout this region. Commercial air service, truck and rail transportation are
considered to be adequate. Gallatin Field which is located in the adjacent community of Belgrade is the
second busiest airport in the state and provides air service for this area.
Governmental Considerations
The City of Bozeman is a City Commission/City Manager form of government with an elected
municipal judge. There are five commissioners elected with no party affiliation and are elected to a four-
year term which are overlapping. The City Commissioner elections are held every two years and the terms
of the commissioners are staggered and the candidate who receives the most votes in an election becomes
the mayor the last two years of their term.
The City of Bozeman has approximately 40 police officers and the fire department has
approximately 18 firefighters plus the Fire Chief, Deputy Chief/Marshall, and seven captains. There are
three fire stations in the City of Bozeman and overall the fire and police protection services are considered
to be good.
The Department of Planning and Community Development processes applications for new
development in the city limits. This department enforces the zoning regulations within the city limits of
Bozeman. Gallatin County administers all zoning for properties outside the city limits and within the
“zoning donut”. The Gallatin County Comprehensive Plan encourages development near the existing city
limits and/or services and discourages development in more remote locations. In general, the planning
and zoning regulations in this area are considered stringent.
Conclusion
Bozeman and Gallatin County has population and overall growth trends that are continuing
upward. This area offers a wide variety of outdoor recreational opportunities, cultural resources, tourism,
and coupled with the presence of Montana State University this area is poised for continued growth.
391
20
Bozeman has a young and very well educated work force and coupled with its diverse economy the
general outlook for Bozeman, Belgrade and the surrounding small communities is good.
Overall the real estate market in Bozeman is strong. 2013 was the first year of strong market
conditions after 5+ recession years. Residential and commercial activity has increased significantly.
Residential apartment occupancy is more or less at 100%, and commercial lease rates and commercial
property values have been increasing as well.
392
21
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
NEIGHBORHOOD DATA & ANALYSIS
The subject site is located just west of the Main Street and North 19th Avenue intersection which
is one of the busiest intersections in all of Bozeman. Main Street is the primary east/west thoroughfare
providing access to the downtown area near the east end of the city limits and also provides access to
Four Corners and Belgrade to the west. North 19th Avenue is one of Bozeman’s primary north/south
traffic streets and supports much of Bozeman’s new commercial growth. North 19th Avenue provides
direct access to Interstate 90 to the north and Montana State University to the south.
Between Main Street/Huffine Lane and Interstate 90 there’s a mix of single family developments,
multi-family housing projects and the remaining farm and ranch properties. South of Main Street/Huffine
Lane is a mix of residential developments, rural residential home sites (1- 20 acres) and larger farm and
ranch properties. Retail development along Main Street has remained strong over the years but it has been
pushed to the west where Main Street transitions into Huffine Lane because simply there is little vacant
land left for development along Main Street.
Elementary schools, middle schools and Bozeman High School are all located nearby. The
Gallatin Valley Mall is located just to the southwest on the north side of Main Street/Huffine Lane. City
393
22
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
water and sewer services are readily available throughout this neighborhood, and natural gas and electrical
service are provided throughout the area by North Western Energy.
For a number of years’ most of the new commercial development in Bozeman was happening
along North 19th Avenue. However much of this land has become developed in recent years and now
more development is being seen along either side of Huffine Lane as the Bozeman city limits continue to
expand north and west. I expect this neighborhood will continue to development in this manor because
there is a lack a vacant, developable land at the east end of Bozeman. In my opinion market conditions
will remain strong in this neighborhood and most likely market values will appreciate accordingly. This
trend is consistent with what other neighborhoods are experiencing in the Bozeman city limits.
394
23
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
PROPERTY DESCRIPTION
Size: As shown on the property record card in the addenda the subject site is
61,650 SF.
Shape: Relatively long and narrow.
Topography: Mostly the topography is level except for a mild down slope to the west.
There is natural water drainage near the southwest corner.
Soil Conditions: Soil conditions are unknown and no soils test was provided to your
appraiser.
Easements: To the best of my knowledge there are no easements or encroachments
on the subject site that would adversely affect its market value. A title
policy should be used for the final determination of easements and
encroachments.
395
24
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Access: Access is from North 20th Avenue.
Utilities: It is my understanding city water and sewer service are readily available.
Natural gas and electrical service are provided by North Western Energy.
Functional Adequacy: This site is located on the west side of N. 20th Avenue and just south of
W. Beall Street, and is ½ block north of Main Street and 1 block west of
N. 19th Avenue. This is considered to be a secondary retail or office
location because it does not have frontage on either N. 19th Ave or Main
Street. However, this site still appears to be well suited for development
with an office or retail use which is the highest and best use of this site.
Flood Plain: The subject property is located in Flood Zone X which is an area of
minimal flooding. This information was extracted from FEMA's National
Flood Hazard Layer Website. The Community Panel No. is 30031 C
0812 D. This map is dated September 2, 2011.
Nuisances or Hazards: To the north is Kirk Park and there is a mix of older single family and
multi-family dwellings just across W. Beall Street. Land directly to the east
has been developed with newer retail buildings that have frontage on N.
19th Avenue or Main Street. To the south there are several undeveloped
lots and older retail buildings fronting Main Street. Directly to the west of
Kirk Park is Lessley Estates Condominium Development. These uses are
typical to this neighborhood and do not adversely affect the market value
of the subject site.
Site Improvements:
With exception of several mature trees along the west boundary
this site is unimproved.
396
25
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
SUBJECT PROPERTY PHOTOGRAPHS
Photograph taken from SWC and looking north.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
Photograph taken from the SWC and looking east.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
397
26
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
SUBJECT PROPERTY PHOTOGRAPHS
Photograph taken from NEC and looking southwest.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
Photograph taken from the SEC and looking northwest.
Photograph taken February 20, 2017 by J. Michael Joki, MAI, SRA.
398
27
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
ZONING
I confirmed at the City of Bozeman Planning Department that the subject site is zoned B-2
(Community Business District). The intent of the B-2 zoning district is to provide for a broad range of
mutually supportive retail and service functions located in clustered areas bordered on one or more sides
by limited access arterial streets.
A complete copy of the zoning ordinance is included in the addenda which further explains the
allowed uses, conditional uses, building coverage ratios, etc.
399
28
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
HIGHEST AND BEST USE
"The reasonably probable and legal use of vacant land or an improved property that is
physically possible, appropriately supported, financially feasible and that results in the
highest value. The four criteria the highest and best use must meet are legal
permissibility, physical possibility, financial feasibility, and maximum productivity.
Alternatively, the probable use of land or improved property - specific with respect to
user and timing of the use - that is adequately supported and results in the highest present
value."2
The definition above applies to the highest and best use of vacant land or improved property. It
is to be recognized that in cases where a site has existing improvements on it, the highest and best use
may very well be determined to be different from the existing use. The existing use will continue,
however, unless and until land value in its highest and best use exceeds the total value of the property in
its existing use.
Quite often in estimating the highest and best use of land, the appraiser is controlled by
governmental regulations. These controls are generally zoning ordinance, parking requirements and
building codes. Also, in the estimate of highest and best use, one must recognize the attitude of typical
investors in the marketplace.
Real estate will usually fall into certain definite development patterns, and their uses can be
classified as: residential, agricultural, recreational, industrial, commercial and public use. In valuing the
highest and best use of the land both as if vacant and improved, the following criteria must be met. 1)
legally permissible, 2) physically possible, 3) financially feasible, and 4) maximally productive.
Legally Permissible
The existing B-2 (Community Business District) zoning allows for a number of retail and office
uses. In addition to the permitted uses there are lot area, width and building height requirements that
must be met. There are no known private deed restrictions on the subject site which would prohibit any
2 The Dictionary of Real Estate Appraisal, 5th ed., s.v. "highest and best use".
400
29
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
of the allowed uses under this zoning ordinance. There are no known public reactions, or no known
public intent of a re-zoning of the subject site that would potentially affect its development. Land in the
immediate vicinity, particularly to the east, is also zoned B-2.
Several of the development classifications previously discussed can be eliminated from
consideration. This zoning does not allow for residential, agricultural, or recreational use and therefore
these uses can be eliminated from consideration. Light industrial use is a legally permissible use through a
conditional use permit however there are other light industrial zoned areas within the Bozeman city
limits that are better suited and more conducive for a light industrial use. Therefore light industrial use
can reasonably be eliminated from consideration. The only remaining, reasonable use that is a legally
permissible use of this site is for commercial development.
Physically Possible
In the immediate vicinity of the subject site there is new retail development just to the east and
south along North 19th Avenue and Main Street. This site has good access from North 20th Avenue and
all city services are readily available. Based on the physical characteristics of the subject site and the
existing properties within this neighborhood the legally permissible uses permitted by the B-2 zoning
would be physically possible.
Financially Feasible
Bozeman has been experiencing growth again, particularly in the past three years, and demand
for undeveloped land in this neighborhood out ways the supply. The B-2 zoning primarily allows for
development with a commercial use and as shown in the following land valuation section the highest and
best use of this site is indeed for development with a commercial use, and that could be for either an
office or retail use. The subject site has a secondary retail or office location because it does not have
frontage on North 19th Avenue or Main Street. However the subject site is an infill site meaning most of
the surrounding sites are already developed.
401
30
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Maximally Productive
The use that conforms with the requirements of the first three tests and will provide maximum
productivity of the subject site is for development with a commercial use, more particularly an office or
retail use. In concluding to the highest and best use of a property the physical use, the timing of the use
and the user’s/most probable buyers needs to be defined. The maximally productive use of the subject
site would be for development with a commercial use that would be conducive to the surrounding uses
in this neighborhood. In terms of the most likely buyer and user of this site there are two options. An
end-user sale is a sale to a buyer who intends to immediately utilize the property to its highest and best
use. A speculative-investor sale is the sale to a buyer who purchases the property with no intention of
immediately utilizing the property to its highest and best use. It is my opinion the subject site would be
purchased by an end user who intends to immediately utilize the property to its highest and best use.
402
31
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
PROPERTY VALUATION
In the Sales Comparison Approach an indication of value is derived by comparing the relative
utility and desirability of the subject site with comparable properties that have recently sold or are
currently listed for sale. Basic to this approach is the principle of substitution which states that "when a
property is replaceable in the market, its value tends to be set by the price required to acquire an equally
desirable substitute property."
In this appraisal report vacant land is valued therefore the Cost and Income Approaches to value
are not applicable.
SITE VALUATION
The method employed to value the site as if vacant and available for sale is the Sales Comparison
Approach. An investigation of the market revealed several sales and listings indicative of what a well-
informed buyer or seller would consider in forming an opinion of value. Three sales were chosen as
being most appropriate to compare against the subject site. Descriptive data and photographs of these
comparables are contained in the Addenda.
Adjustments
All comparables differ somewhat from each other, and from the subject in various ways. The
usual differences are for cash equivalency, market conditions, location, and a number of physical
characteristics. Many of these factors, in varying degrees, are applicable in the appraisal of the subject
property. When dissimilarities are found in comparable properties, they are adjusted for by adding to the
comparable price when the dissimilar factor is inferior to the same factor found in the subject property.
403
32
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Likewise, a minus adjustment should be made when the comparable sale has a factor which is superior to
that found in the subject property. The sale properties, then, are adjusted to the subject property.
However, in the market it is often difficult and sometimes impossible to accurately isolate a given
factor. In short, one very seldom finds sales which are identical in all respects but one, and thus is able
to prove conclusively the value, or lack of it, for any one factor due to a difference in sale price. Often,
there are plus and minus factors which offset each other. Thus, the use of subjective judgment, to some
degree, may be exercised.
Nevertheless, the differences in values are real and adjustments based on as much fact as can be
found, will be made. Then, the appraiser may call upon his experience to make subjective judgments.
Property Rights
Each of the sales involve fee simple property rights. As a result, no property rights adjustments
were warranted.
Financing:
All Sales were cash to the seller or on terms considered cash equivalent, and no adjustments were
required.
Conditions of Sale:
No non-market conditions motivating the buyer or seller involved in the transactions are known,
therefore no adjustments are required.
Expenditures Immediately After Sale:
None of the sales required expenditures immediately after sale, and therefore no adjustments are
required. If expenditures were verified they were typically associated with annexation into the city limits.
404
33
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Market Conditions:
A market conditions (time adjustment) is required to bring all comparable sale properties up to
the effective date of the appraisal report which is February 20, 2017. Bozeman was experiencing
significant decline in real estate values when the local and national recession was in effect. Since 2011 real
estate values have rebounded in this market, and have become particularly strong since 2013, with new
projects being developed again. Demand for unimproved land is now out weighing its supply.
I will utilize three comparables in the following analysis with two sales closing in 2016 and one
sale closing in 2017. Each of the developers, real estate agents and real estate appraisers I interviewed in
this market were of the opinion market conditions are strong in Bozeman with more demand than
supply of vacant land. The persons I interviewed were consistently of opinion the price of unimproved
sites, particularly well located commercial sites, have conservatively appreciated 10% since 2016.
Finding two sales for a true paired sales analysis with the two sales having all of the same physical
characteristics and the only difference being time of sale are difficult to find even in an active sales
market like Bozeman. A case certainly could be made that Sale No. 1 and Sale No. 2 would not require a
market conditions adjustment because these are both recent sales from 2016. But I have considered the
information given to me during my interviews and will adjust Sale No. 1 upward by 10% and Sale No. 2
upward by 5% (based on 10% per year). Sale No. 3 closed in 2017 and just 3 days prior to the effective
date of this report and therefore is not adjusted for market conditions.
Remaining Adjustments:
The remaining adjustments will be explained in a qualitative analysis which is an effective
technique that recognizes the inefficiencies of a real estate market and the difficulty in expressing the
adjustments with mathematical precision. The adjustments included in the qualitative analysis are
location, size, access, topography, shape, utilities, and use. The land sales adjustment grid can be seen on
the following page.
405
34
LAND SALE LOCATION MAP
406
35
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
LAND SALE ADJUSTMENT GRID
SUBJECT SALE 1 SALE 2 SALE 3
Sale Price $995,000 $325,000 $583,704
Size (SF) 61,650 SF 73,415 SF 28,065 SF 37,222 SF
Price/SF $13.55 $11.58 $15.68
Date of Sale 1/7/16 11/28/16 2/17/17
Market Adjustment +$99,500 +$16,250 -0-
Adjusted Price $1,094,500 $341,250 $583,704
Adjusted Price/SF $14.91 $12.16 $15.68
Location West side N. 20th
Ave, ½ block north
of Main Street
SWC of Huffine
Lane & Cottonwood
Road
NEC of
Professional Dr.
and College St.
South side W.
Babcock, 1 block
south of Main Street
Comparability Superior Inferiior Similar
Size (SF) 61,650 SF 73,415 SF 28,065 SF 37,222 SF
Comparability Similar Superior Superior
Access N. 20th Ave Winnow Circle Professional Dr. W. Babcock Street
Comparability Similar Similar Similar
Topography Mostly level Level Mostly level Level
Comparability Similar Similar Similar
Shape Long & narrow Long & narrow Long & narrow Long & narrow
Comparability Similar Similar Similar
Utilities All City Services All City Services All City Services All City Services
Comparability Similar Similar Similar
Highest & Best Use Development with an
office or retail use
Development with
an office or retail use
Development with a
multi-family use
Re-develop with an
office or retail use
Comparability Similar Slightly Inferior Similar
Overall Comparability Slightly Superior Inferior Superior
407
36
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
Sales Analysis:
The subject site is located on the west side of North 20th Avenue and ½ block north of Main Street.
This is a secondary location for an office or retail use but the subject site is an infill site and there are few
remaining in this neighborhood as much of the surrounding land is already developed. The subject site is
61,650 SF, has mostly level topography and all city services are available. The subject was listed for sale at
$925,000 ($15.00/SF) and is now under contract at $825,000 ($13.38/SF), and reportedly it is the buyer’s
intent to develop this site with a retail use.
Comparable No.1 is the sale of a 73,415 SF site that sold on January 7, 2016 for $995,000 or
$13.55/SF. The time adjusted price is $14.91/SF. Comparable No. 1 is located at the SWC of Huffine Lane
and Cottonwood Road. Main Street turns into Huffine Lane as it heads west towards Four Corners. This
location is at the western edge of the city limits but having direct frontage on Huffine Lane makes this
comparable superior to the subject site on an overall basis. All of the comparables other physical aspects are
considered to be similar to the subject site. This comparable site is slated for development with a medical
office use.
Comparable No. 2 is a 28,065 SF site that sold on November 28, 2016 at $325,000 or $11.58/SF.
The time adjusted price is $12.16/SF. Comparable No. 2 is located at the NEC of Professional Drive and
College Street near the northwest edge of the MSU campus. The R-O zoning allows for an office or multi-
family use and the buyer intends to develop this site with a multi-family project which is consistent with the
surrounding uses. The only superior aspect of this comparable is its smaller size, but on an overall basis I
consider this comparable inferior to the subject site because this location and this sites zoning lack the
potential for retail use.
Comparable No. 3 is the sale of a 37,222 SF site that sold on February 17, 2017 at $583,704 or
$15.68/SF. This recent sale is not adjusted for market conditions. This comparable is located just southeast
of the subject site on the south side of West Babcock Street and one block south of Main Street. This site is
408
37
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
zoned R-O and as explained on the comparable sale sheet in the addenda it is the intent of the buyer to raze
or move the building improvements, get the site re-zoned and then re-develop the site with a higher density
use. It was the listing agent opinion the sale price was based on the buyers getting a zoning change and
having the ability to re-develop this site otherwise the buyer may have paid over market value. The only
superior aspect of this sale when compared to the subject site is its smaller size.
The value indications derived from the comparables are reconciled into a single value indication by
arranging the three comparables in an array relative to the subject.
BRACKETING THE SUBJECT PROPERTY
As shown above these comparables range in price from $12.16/SF to $15.68/SF. The mean of
these prices is $13.92/SF which equates to a value estimate of $858,000 ($13.92/SF x 61,650 SF) which I do
not find unreasonable. The subject site is currently under contract at $13.38/SF which is nearly at the mean
price/SF of these comparables. In my opinion it is prudent to give as much emphasis to the pending sale
price of the subject site ($825,000) as the comparables I used in this analysis. I’m giving equal emphasis to
the pending sale price of the subject site because simply this is a reflection of a price that a willing buyer will
Comparable Adjusted Price/SF
Overall
Comparability
3 $15.68 Superior
1 $14.91 Slightly Superior
Subject Property
2 $12.16 Inferior
409
38
J. MICHAEL JOKI, MAI, SRA
HELENA, MONTANA
pay for this site, and this price is well within the range shown by the comparable sales. Considering this
information it is my opinion a reasonable, current market value estimate of the subject site is $825,000 or
$13.38/SF.
410
J. Michael Joki, MAI, SRA
HELENA, MONTANA
TABLE OF CONTENTS
INTRODUCTION Page
Letter of Transmittal
Certification
Assumptions and Limiting Conditions 5
Summary of Important Facts and Conclusions 7
Subject Property Photograph 8
DESCRIPTION, ANALYSIS AND CONCLUSION:
Definition of Market Value 9
Purpose of Appraisal 9
Intended Use of the Appraisal and Intended Client 10
Scope of Appraisal 10
Summary of the Appraisal Problem 12
Property Rights Appraised 12
Identification of Property and Legal Description 13
History of the Property 13
Regional Map 14
Regional and City Analysis 15
Neighborhood Analysis 21
Property Description 23
Subject Property Photographs 25
Zoning 27
Highest and Best Use Before 28
The Valuation Process 31
Site Valuation 31
Land Sale Location Map 34
Land Sale Adjustment Grid 35
Bracketing the Subject Property 37
411
J. Michael Joki, MAI, SRA
HELENA, MONTANA
ADDENDA:
Property Record Card
Multiple Listing Sheet
Zoning Ordinance
Comparable Land Sale Sheets with Photographs
Qualifications of the Appraiser
State License
412
J. Michael Joki, MAI, SRA
HELENA, MONTANA
ADDENDA
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443