HomeMy WebLinkAboutResolution 4938 Determination of Fair Market Value for Cash-in-lieu of Parkland Dedication v �
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COMMISSION RESOLUTION NO. 4938
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, SETTING THE FAIR MARKET VALUE OF LAND PER SQUARE FOOT
FOR CALCULATING CASH-IN-LIEU OF PARKLAND DEDICATION
WHEREAS, Section 38.420.030 of the Bozeman Municipal Code, ("Cash Donation in
lieu of Land Dedication") states that the city commission may adopt procedures to be used by the
director of parks and recreation to determine the fair market value for cash in lieu of parkland
dedication donations; and
WHEREAS, an appraisal report has been obtained from a qualified, licensed appraiser
to determine the fair market value of unsubdivided,unimproved land after it has been annexed and
given a municipal zoning designation in accordance with Montana Code Annotated Section 76-
3-621; and
WHEREAS, the appraisal report indicates the fair market value of residential property
for the purposes of cash donation in lieu of park land dedication is $1.50 per square foot (Exhibit
A);
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that the fair market value of residential property for the purposes of cash
donation in lieu of park land dedication is G1.50 per square foot and this value shall remain in
effect for up to one calendar year, subject to changes in market conditions that warrant an updated
appraisal.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 6th day of August, 2018.
I L. A � D US
Mayor
ATTEST:
B 0,>`O J.
ROBIN CROUGH U � '. " ■
• *
City Clerk r - •�� ,
�j f 1883
APPROVED AS TO FORM:
Zx
G G SULLIVAN
City Attorney
AN APPRAISAL REPORT OF:
Standard Property Valuation for the City of Bozeman's Cash in Lieu of Parkland Dedication
Process
FILE NO.:
C071718278
PREPARED FOR:
Mr. Mitchell Overton
City of Bozeman -Department of Parks and Recreation
415 North Bozeman Avenue
Bozeman, MT 59715
PREPARED ON:
July 18, 2018
EFFECTIVE DATE OF VALUATION:
July 1, 2018
PREPARED BY:
Keith O'Reilly, MAI, MT-400
Bridger Appraisals, Inc.
P.O. Box It 145
Bozeman,MT 59719
7 r
i: .
F'BRIDGER
APPRAISAf S;
July 18, 2018
City of Bozeman-Department of Parks and Recreation
415 North Bozeman Avenue
Bozeman, MT 59715
Re: Standard Property Valuation for the City of Bozeman's Cash in Lieu of
Parkland Dedication Process
Dear Mr. Mitchell Overton,
Per your request, I have gathered information and completed the following report to
establish a standard property valuation on a per square foot basis for Residential Single-
Household Low Density(R1),Residential Two-Household Medium Density (R2),
Residential Medium Density(R3),Residential High Density(R4), and Residential Office
(RO) districts within the City of Bozeman. This report is to be used for the City of
Bozeman's Cash in Lieu of Parkland dedication process. This appraisal is not of one
subject property but is rather a compilation of sales of large tracts of land within the City
as well as Gallatin County purchased for development purposes.
Per city code and state law:
Cash donation in-lieu of land dedication shall be equal to the fair market value of the
amount of land that would have been dedicated. For the purpose of these regulations, the
fair market value is the value of the unsubdivided,unimproved land after it has been
annexed and given an urban zoning designation. The city intends to obtain the highest
value for cash-in-lieu of park land that is allowable under state law.
ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report,the letter of transmittal, and certification are subject to the following
assumptions and limiting conditions; and also,any special qualifying conditions that may be
contained elsewhere in the report are incorporated by reference.
Assumptions
1. That the legal descriptions,as furnished, are correct; and that the titles to the properties are
good and marketable.All existing liens and encumbrances,if any,have been disregarded.
The properties are appraised as though free and clear of other burdens,under responsible
ownership and competent management.
2. That the land dimensions taken from available maps,plats, and/or surveys are correct.It has
been assumed that those boundaries that are apparent are correct.
3. It is assumed that the use of the land and improvements is confined within the boundaries or
property lines of the property described and that there is no encroachment or trespass unless
noted in the report.
4. That no adverse water table or soil conditions exist,and no representation regarding such
conditions is made in this report unless specifically stated; and,that the value estimated is
predicated on the absence of any such conditions occurring.
5. Those opinions,estimates,data and statistics supplied by others in the course of this study,
are correct;the assumption has been made that the sources are reliable,but no responsibility
has been inferred for their accuracy.
6. This report does not contemplate any court action,nor does it obligate the appraiser to give
any testimony or make any appearance in court,before commission,arbitrator or any other
individual,body or agency.If court action or appearance later becomes necessary in the
interest of the client,the terms of the additional service shall be negotiated at that time.
Brid er Appraisals Inc.
Keith O'Reilly.KIM
7. Unless otherwise stated in this report,the appraiser has no knowledge of the existence of
hazardous material,which may or may not be present on the properties. I am not qualified to
detect such substances. The presence of potentially hazardous materials may affect the value
of the property. This extends to any leaks from underground fuel storage tanks, and
identification of Asbestos containing materials. The value estimate is predicated on the
assumption that there is no such material on or in the property.No responsibility is assumed
for any such conditions or for any expertise or engineering knowledge required to discover
them.The client is urged to retain an expert in this field,if desired.Any such environmental
risk discovered at a later date may require a revised estimate of value that may or may not be
simply a reduction of the value by the estimated cost to cure the environmental condition.
Properties known to have environmental risk may also carry a stigma in the market place that
may or may not affect the value.If future soil tests should reveal the existence of any such
soil conditions or hazardous waste,I reserve the right to review and adjust this appraisal
accordingly.
Limiting Conditions:
1. The appraiser is not responsible for any matter legal in character,nor is any opinion rendered
as to title,which is assumed to be marketable.
2. The value reflected in the analysis applies only to the program of utilization considered in this
report.The use of the value in conjunction with any other appraisal or under other influences
invalidates the conclusions developed.
3. This analysis and estimate of value is made for the exclusive use and benefit of the clients to
whom it is addressed; and,possession of this report or a copy,does not carry with it the right
of publication,nor may it be used for any purpose other than that intended without the
previous consent of the appraisers.In any event,only the entire report may be used and no
part shall be taken or used out of context.
4. Included as an integral part of this report are maps and photographs of the comparable
properties and sales.The maps and photographs were prepared and taken by the appraisers,
and although they do not purport to represent survey accuracy,they are substantially correct
and adequately serve as visual reference to the properties.
5. Disclosure of the contents of this 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 any
conclusions of value,the identity of the appraisers or the firm with which they are connected)
shall be disseminated to the public through advertising media,public relations,news media,
sales media, or any other public means of communication without the prior written consent
and approval of the authors.
6. The forecasts,projections,or operating estimates contained herein are based on current
market conditions, anticipated short-term supply and demand factors,and a continued stable
economy. These forecasts are,therefore, subject to changes with future conditions.
Bridber Appraisals Inc.
Keith O'Reilly,NLAI
SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
Client: Mitchell Overton, City of Bozeman - Department
of Parks and Recreation
Intended User: City of Bozeman - Department of Parks and
Recreation
Date of Valuation: July 1,2018
Date of Preparation: July 18, 2018
Rights Appraised: Fee Simple
Highest and Best Use: The highest and best use is not applicable to this
appraisal report as the valuation is not of a subject
property,but rather a compilation of sales to
establish a standard property valuation.
SCOPE OF THE APPRAISAL
The scope of work consists of the amount and type of information researched and
analyzed in an assignment.
In preparing the appraisal, I have considered pertinent characteristics of the comparable
sales in comparison to current market standards. I have gathered information and
completed the following report to establish a standard property valuation on a per square
foot basis for Residential Single-Household Low Density(Rl),Residential Two-
Household Medium Density(R2),Residential Medium Density(R3),Residential High
Density(R4), and Residential Office(RO) districts within the City of Bozeman.
General and specific data was obtained through personal and telephone interviews with
government officials,property managers, developers, and other market participants. I
have not considered the highest and best use as it is not applicable to the standard
property valuation on a per square foot basis of R1,R2,R3, R4, and RO districts within
the City of Bozeman.I have applied the sales comparison approach valuation method to
determine a standard property valuation method on a per square foot basis. This is the
only applicable approach to valuing vacant land. The results indicated by this method
have been reviewed and reconciled based on the reliability,relevance and reasonableness
of the data, and the purpose and intended user of the appraisal.
This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal
Practice under Standards Rule 2-2. This format provides a summary of the appraisal
process, subject and market data and valuation analyses. The information contained in
this report is specific to the needs of the client and for the intended use as stated in this
report.
PURPOSE AND INTENDED USE AND USER OF THE APPRAISAL
The purpose of this appraisal is to estimate a credible opinion of the Current Market
Value on a per square foot basis of the Fee Simple Interest for Residential Single-
Household Low Density(R1), Residential Two-Household Medium Density(R2),
Residential Medium Density(R3),Residential High Density(R4), and Residential Office
(RO) districts within the City of Bozeman, in accordance with the Uniform Standards of
Professional Appraisal Practice (USPAP) and supplemented by the Appraisal Institute.
The intended use of the appraisal is to assist the Client and Intended User, City of
Bozeman-Department of Parks and Recreation, in establishing a standard property
valuation for vacant land on a square foot basis to be used for the City of Bozeman's
Cash in Lieu of Parkland dedication process.
DEFINITION OF MARKET VALUE
Market value is defined as the most probable price, which a property should bring in a
competitive and open market under all conditions requisite to a fair sale, the buyer and
seller, each acting prudently and knowledgeably, and assuming the price is not affected
by undue stimulus. Implicit in this definition is consummation of a sale as of a specified
date and 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 each acting in what they consider
their own best interest;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto;
5. The price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated with
the sale.,
'[Source: Section 323.2 amended at 57 Fed.Reg.9049,Mach 16, 1992;59 Fed.Reg.2950],June 7,1994]
Badger Appraisals Inc.
Keith O'Reilly,NIAl
PROPERTY RIGHTS APPRAISED
Property rights are ownership interests in real estate and have value. It is important to
know what property right(s) or estate(s) are involved in the appraisal,because the estate
identifies the rights being valued. The subject property rights being appraised is the Fee
Simple Interest.
Fee Simple: Absolute ownership unencumbered by any other interest or estate, subject
only to the limitations imposed by the governmental powers of taxation, eminent domain,
police power and escheat.'
Leased Fee: A freehold(ownership interest)where the possessory interest has been
granted to another party by creation of a contractual landlord-tenant relationship (i.e. a
lease). 3
VALUATION DATE
The effective date of the appraisal is July 1, 2018. This is the date of valuation. The
comparable sales reflected in this report are the most current identifiable sales as of the
effective date.
2 The Dictionary ofReal Estate Appraisal,5th ed.(Chicago;Appraisal Institute,2010),p.78.
3 The Dictionary ofReal Estate Appraisal,5th ed.(Chicago;Appraisal Institute,2010),p.111.
MONTANA REGIONAL AND CITY MAPS
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Keith O'Reilly,MAI
REGIONAL, CITY, AND NEIGHBORHOOD ANALYSIS
Bozeman,Montana is located in Gallatin County, in an area more commonly referred to
as the Gallatin Valley. This report is for the Client and Intended User,the City of
Bozeman—Department of Parks and Recreation. Information regarding the City of
Bozeman has not been included as this information is provided from the City of Bozeman
and the client and intended user has access to this information.
THE APPRAISAL PROCESS
Typically,real estate can be valued by applying three approaches. All of these approaches to value,
(particularly when the purpose of the appraisal is to establish market value)are market data approaches
since the data inputs are presumably market derived.
Cost Approach: One of the approaches to value commonly applied in Market Value
estimates and many other valuation situations. A comparative
approach to the value of properly or another asset that considers,as
a substitute for the purchase of a given property, the possibility of
constructing another property that is an equivalent to the original
or one that could furnish equal utility with no undue cost resulting
from delay. The Valuer's estimate is based on the reproduction or
replacement cost of the subject property or asset, less total
(accrued) depreciation. The cost approach establishes the value of
a real property by estimating the cost of acquiring land and
building a new property with equal utility or adapting an old
property to the same use witli no undue cost due to delay. An
estimate of entrepreneurial incentive or developer's profit/loss is
commonly added to land and construction costs. For older
properties, the cost approach develops an estimate of depreciation
including items of physical deterioration and functional
obsolescence.
Sales Comparison Approach: A comparative approach to value that considers the sales of similar
or substitute properties and related market data and establishes a
value estimate by processes involving comparison. In general, a
property being valued (a subject property) is compared with sales
of similar properties that have been transacted in the open market.
Listings and offerings may also be considered. A general way of
estimating a value indication for personal property or an ownership
interest in personal property, using one or more methods that
compare the subject to similar properties or to ownership interests
in similar properties. This approach to the valuation of personal
property is dependent upon the Valuer's market knowledge and
experience as well as recorded data on comparable items.5
Income Approach: A comparative approach to value that considers income and
expense data relating to the property being valued and estimates
value through a capitalization process. Capitalization relates
income (usually net income) and a defined value type by
converting an income amount into a value estimate. This process
may consider direct relationships (whereby an overall
capitalization rate or all risks yield is applied to a single year's
income), yield or discount rates (reflecting measures or return on
investment)applied to a series of incomes over a projected
period, or both. The income approach reflects the principles of
substitution and anticipation. 6
$The Dictionary of Real Estate Appraisal,5th ed.(Chicago;Appraisal Institute,2010),p.250.
5 The Dictionary of Real Estate Appraisal,5th ed.(Chicago;Appraisal Institute,2010),p.244.
The Dictionary of Real Estate Appraisal,5th ed.(Chicago;Appraisal Institute,2010),p.256
Bridger Appraisals Inc. D
Keith O'Reilly,NIAI
Comparable Sales
The following sales have been used to estimate a value on a per square footage basis. The
compiled data represents the most recent known sales of speculative development land
within the City of Bozeman and Gallatin County.
Land Comparable 1
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Transaction
ID 1014 Verification Source Confidential
Address 5528 Stucky Rd Price $2,900,000
City Bozeman Price Per Acre $59,434.00
State MT Financing Cash to Seller
Tax ID RGG6891 Property Rights Fee Simple
County Gallatin Days on Market --
Grantor Big Sky Western Bank,a Division of Recording Date 07/18/17
Glacier Bank
Grantee RHans,LLC Recording Number 2585905
Legal Description Tracts 1,3 and 4 of C.O.S.No.2725,being a relocation of common boundaries between Tracts 1 &2
of C.O.S.No.2122 and Tract IA-1 of C.O.S.No.2029 and Parcel II,loc.in N1/2 of Sec.23,T2S,
RSE,P.M.M.,City of Bozeman,Gallatin Co.,MT.
Site
Acres 48.8 Topography Mostly Level
Land SF 2,125,467 Zoning Residential High Density(R4),
Residential Medium Density(R3)
Road Frontage -- Flood Zone No
Dimensions Irregular Encumbrance or Easement None
Utilities NorthWestern Energy Environmental Issues None
Access Stucky Rd,Graf St Price Per Land SF $1.36
Comments
The subject is located in southwest Bozeman,near Montana State University.The site is annexed into the city.The
surrounding area has seen recent growth with a mix of commercial and residential development.This sale was a bank owned
property that went to auction.
Bridger Appraisals Inc. C7
Keith O'Reilly,MAI
Land Comparable 2
BN�.NlPlr
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Transaction
ID 893 Verification Source Contract-Dick Steffani
Address Oak Street and Davis Lane Price $764,600
City Bozeman Price Per Acre $76,231.00
State MT Financing Cash to Seller
Tax ID RGG9336 Property Rights Fee Supple
County Gallatin Days on Market --
Grantor William and Betty Anne Sipple Recording Date 01/18/17
Grantee City of Bozeman Recording Number 2569512
Legal Description A Tract of land containing 10.03 acres in the West Half of the West Half of the Southwest Quarter of
Section 2,Township 2 South,Range 5 East,Gallatin County,MT
Site
Acres 10.0 Topography Level
Land SF 436,906 Zoning SRR,Semi-Rural Residential Zone
Road Frontage -- Flood Zone None
Dimensions Rectangular Encumbrance or Easement None
Utilities NorthWestern Energy Environmental Issues None
Access Oak Street Price Per Land SF $1.75
Comments
This is a vacant 10 acre tract of land located south of Oak Street where Davis Lane will intersect.All public utilities including
water,sewer,electriety and natural gas are to the site.However,the site has not been annexed into the City of Bozeman.The
site has good access off of Oak Street.The City of Bozeman is the purchaser and bought the land to extend Davis Lane from
Oak Street to Durston Rd.
Land Co m -able 3
11110111
■
. T
Transaction
ID 726 Verification Source Jerry Pape-Broker
Address 5200 Durston Road Price $715,700
City Bozeman Price Per Acre $82,711.00
State MT Financing Conventional
Tax ID RGG7243&RGG9606 Property Rights Fee Simple
County Gallatin Days on Market 571
Grantor Paul Christenot Recording Date 06/09/14
Grantee JBE,LLC Recording Number 2482934&2482935
Legal Description Lengthy;retained in file
Site
Acres 8.7 Topography Level
Land SF 376,925 Zoning R-3&R 4
Road Frontage Durston Road Flood Zone None
Dimensions Irregular Encumbrance or Easement None
Utilities NorthWestern Energy Environmental Issues None
Access Durston Road Price Per Land SF $1.90
Comments
This was the sale of a speculative piece of residential land.It is more or less an infill type property.There are residential
subdivisions bordering it on all sides.The site was located in the county at the time it sold but was approved for annexation into
the city which has since occurred.There was an older house located on one of the property that has since been demolished.The
property was listed for sale with an asking price of$735,700 at the time it went under contract.
Bridger Appraisals Inc. O
Keith O'Reilly,MAI
Land Comparable 4
1 S SE 35
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Transaction
ID 445 Verification Source Buyer
Address 1067 Thomas Drive Price $536,000
City Bozeman Price Per Acre $53,600.00
State MT Financing Cash to Seller
Tax ID RFG9580 Property Rights Fee Simple
County Gallatin Days on Market 563
Grantor Kenneth and Jill Davenport Recording Date 09/30/16
Grantee O'Reilly Partnership LLC Recording Number 2559333
Legal Description N1/2 S1/2 NE1/4 SP/1/4 Section 25,Township 1 South,Range 5 East,P.M.M.Gallatin County,MT
(Deed Reference:Film 29,Page 277)
Site
Acres 10.0 Topography Level
Land SF 435,600 Zoning Residential High Density(R4)
Road Frontage -- Flood Zone None
Dimensions Rectangular Encumbrance or Easement None
Utilities NorthWestern Energy Environmental Issues None
Access Thomas Drive Price Per Land SF $1.23
Comments
This is a 10 acre tract of speculative development land.The site fronts what is now Thomas Drive,but will become North 27th
Avenue.North 27th Avenue currently end at Cattail Street and Baxter Lane.The site has been annexed into the City of of
Bozeman and is zoned R 4.Water and sewer has been installed along Thomas Drive.There are minimal wetlands of less than.5
acres associated with this site.
Land Comlrarable 5
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Transaction
ID 1055 Verification Source Donnie Olsson-Broker
Address SW Corner of Love Ln.&Baxter Price $2,550,000
Ln.
City Bozeman Price Per Acre $43,031.00
State MT Transaction Type Closed
Tax ID RGG11911 Financing Cash to Seller
County Gallatin Days on Market 1
Grantor Vma Del Mar Holdings,LLC Recording Date 07/28/17
Grantee Bozeman Development Fund,LLC Recording Number 2587075
Legal Description Tracts 1 and 2 of C.O.S.No.2939,located in the NE 1/4 of Section 6,Township 2 South,Range 5
East,Gallatin County,Montana.
Site
Acres 59.3 Topography Level
Land SF 2,581,366 Zoning RR/A,Rural Residential&
Agricultural
Road Frontage Love Ln.&Baxter Ln. Flood Zone None
Dimensions Irregular Encumbrance or Easement None
Utilities NorthWestern Energy Environmental Issues None
Access Love Ln.&Baxter Ln. Price Per Land SF $0.99
Comments
This is a 59.260-acre tract of speculative development land on the southwest corner of Love Lane and Baxter Lane that the
buyer intends to develop with 104 single-family residential lots.As of the date of purchase,the property was not in the Four
Corners Water&Sewer District;however,the adjacent property to the west is in the district and the buyer hopes to tie into the
water and sewer system and purchase water and sewer entitlements for development of the proposed subdivision.The property
has an attractive location for a subdivision given its good views of the surrounding mountain ranges.The property was listed for
sale with an asking price of$2,900,000 at the time it went under contract.
Bridger Appraisals Inc. Q
Keith O'Reilly,MAI
Land Comparable 6
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Transaction
ID 1057 Verification Source Jennifer Trainer-Broker
Address NW Corner of Gooch Hill Rd.& Price $4,000,000
Huffine Ln.
City Bozeman Price Per Acre $51,593.00
State MT Financing Cash to Seller
Tax ID RGG60568 Property Rights Fee Simple
County Gallatin Days on Market 28
Grantor Mudhead,LLC Recording Date 08/10/17
Grantee Gooch Hill Opportunities,LLC Recording Number 2589101
Legal Description Tract 2A of C.O.S.No.2682A,a tract of land located in the East 1/2 of Section 8,Township 2 South,
Range 5 East,Gallatin County,Montana.
Site
Acres 77.5 Topography Level
Land SF 3,377,207 Zoning M-I&N-S
Road Frontage Huffine Ln.&Gooch Hill Rd. Flood Zone None
Dimensions Rectangular Encumbrance or Easement None
Utilities NorthWestern Energy Environmental Issues None
Access Huffine Ln.&Gooch Hill Rd. Price Per Land SF $1.18
Comments
This is a 77.530-acre tract of speculative development land that is located on the northwest corner of Gooch Hill Road and
Huffine Lane,in-between the Bozeman city limits and Four Corners.Approximately 75%of the property is zoned M-1,
Manufacturing and Industrial District while the remaining approximate 25%is zoned N-S,Neighborhood Service District.There
are no water and sewer services available to the site.The buyer was Town Pump and the property was purchased for potential
future development.There are some wetland areas on the site.The property was listed for sale with an asking price of
$4,300,000 at the time it went under contract.
Land Comparable 7
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Trans action
B) 1056 Verification Source Buyer
Address TBD Huffine Lane Price $1,800,000
City Bozeman Price Per Acre $43,552.00
State MT Financing Cash to Seller
Tax ID RGG61787 Property Rights Fee Simple
County Gallatin Days on Market None
Grantor Winchester Holdings,LLC Recording Date 10/10/17
Grantee Skeeter,Cayman,Quantum,&3B Recording Number 2595275
Legal Description Lot 2 of Minor Subdivision No.418,located in the SW 1/4 of Section 8,Township 2 South,Range 5
East,Gallatin County,Montana.
Site
Acres 41.3 Topography Level
Land SF 1,800,335 Zoning MU,Mixed-Use District
Road Frontage Huffine Lane Flood Zone None
Dimensions Rectangular Encumbrance or Easement None
Utilities NorthWestern Energy Environmental Issues None
Access Huffine Lane Price Per Land SF $1.00
Comments
This is a 41.330-acre tract of speculative development land located near the northeast corner of Love Lane and Huffine Lane
in the Four Corners area of Bozeman.The buyer purchased the property for future development.There are no water or sewer
services available to the site.The property was not openly marketed and the transaction was privately negotiated between the
buyer and the seller.
Bridger Appraisals Inc. CC)
Keith O'Reilly-,MAI
Land Comparable 8
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Transaction
ID 1060 Verification Source Copy of Buy-Sell
Address TBD Cottonwood Road Price $3,169,210
City Bozeman Price Per Acre $112,835
State MT Financing Conventional
Tax ID RGG65187 Property Rights Fee Supple
County Gallatin Days on Market Unknown
Grantor Crescent Cross,LLP Recording Date -
Grantee Reservoir Real Estate,LLC Recording Number Pending
Legal Description Lot 3A-1 of Minor Subdivision 454C,a relocation of common boundaries between Lot 3A of Minor
Subdivision No.454A and Lot 4 of Minor Subdivision No.454,located in the West 1/2 of Section 15,
Township 2 South,Range 5 East,Gallatin County,Montana.
Site
Acres 28.1 Topography Level
Land SF 1,223,470 Zoning R-5,Residential Mixed Use High
Density
Road Frontage Cottonwood Road Flood Zone None
Dimensions hregular Encumbrance or Easement None
Utilities NorthWestern Energy Environmental Issues None
Access Cottonwood Road Price Per Land SF $2.59
Comments
This is a large tract of multi-family residential development land along Cottonwood Road that was previously located adjacent
to the western Bozeman city limit border;however,it was annexed into the city of Bozeman in October of 2017 and will be
zoned R-5,Residential Mixed Use High Density District.The$3,169,210 purchase price is reflective of a$3,100,000 base
price in addition to a$69,210 annexation related fee that will be paid for by the buyer.The buyer intends to develop the site
with 157 rental townhomes and 166 rental apartments over two phases.Based on the 323 total units and the$3,169,210
purchase price,the price per proposed unit is equal to approximately$9,812.The buyer will tie into the existing City of
Bozeman water and sewer infrastructre at an additional cost to the buver.
/-Y - i �Sp`ringhillPark � - J��•^� �1.,E _ r/�{�'i✓J'
,�--- ,�)Riverside Country'CIuCt�-.
r }1 ��►. ,�.Costco olesae� � Y _ .
_ � , �"BridyerCreel.
Sale 4J.
- Gulf Course•.
Sale 5
le 2
31,
f Iona dark ;r. �
y. Sale3 r in9c' l
• `„'tr 1 I` t ,. I S_ r .BnAg�e� a �jll ;t( BOZefllanr r-' � L C4
IX
Sal
�, tvloriiariaState t• �3 ,
t _ «■.o tviuseum of the Rpckles 7
Sale 8
-14
t r
Comparable Sale 5, 6, and 7 are sales of large tracts of land that have not been annexed
into the City but were purchased for speculative development purposes. The per square
foot range of values for these sales was $0.99 to $1.18. These comparables help to
establish to the lower limit of value on a per square foot basis. The per square foot value
of these comparables is lower than those sites annexed into the City,which is expected,
as the purchasers of these sites would have additional costs for annexation and accessing
utilities. Comparable 5 is planned to be developed residentially, while Comparables 6 and
7 will most likely be developed with commercial and residential improvements. There is
not a large difference in per square foot value on the residential sale versus the
commercial/residential.
Comparable 8 is a failed sale but was included to bracket the very upper limit of value. At
the time of contract,this site was not annexed into the City. However, the contract price
was inclusive of the annexation fee to be paid by the buyer. This parcel of land was zoned
R-5,Residential Mixed-Use High-Density District. This sale failed due to the costs for
off-site improvements. For this reason,it is indicated the per square foot value for a Cash
in Lieu valuation must be lower than the per square foot value of this contract.
LandAradlysis(kid Com 1 Co 2 Co 3 Ca 4 Co 5 Co 6 Co 7 Ccrops
Address 552R Stucky Rd OakStrcet and Dave 5200 Dumton Road 1067Thortnc Drive SWComeroflnve NWComerofGooch TBDHuBinelane TBDCottoneood
Lane In.&BaAerin. Hill Rd.&Milne ln. Road
C51y Box- Box= Box®n Boaeovn Boxrrsm Box= Boxrmn Bo.-
Slate MT MT MT KIT MT NIT MT MT
Date 711/2018 7/1812017 1/11112017 6"N2014 9/30/2016 7/2812017 VIM17 10/102017 7/l/2018
Price S2,900,030 $764,600 S715,700 S536,000 S21550,000 S4,000,000 $1,800,000 S3,169,210
Acres 0.00 48.79 10.03 &65 10.00 59.26 77.53 4133 28.09
Ace Unit Price S59,434 S76,731 S8Z711 S53,600 S43,031 S51,593 S43,552 S11Z835
TransactionA'usmtents
Property Rights F.Simple Fee Smpk 0.01:Fee Smpk 0.0% Fee S pk 0.0%Fee Sanpk 0.01.Fx S nple 0.01; Fee Smpk 0.0% Ftt Smple 0.0%Fee Smple 0.0!:
Financing Canvml'avaI Cash to Seller 0.0%Cash to Mle, 0.0% Co-tioval 0.0%Cash to SeU" 0.0l:Cashro Seler 0.0% Cash to Seller 0.0% Cashto Seller 0.00:Covvevtiova1 0.01.
Cov&tiovsorssk Gash rnf.kn h 0.0%AntAlLength 0.0% Ann's Length 0.0%A-%L<.gth 0.01:Arms Lev h 0.01; Armes Leo h 0.0% A-.U.gth 0.01:Arms U.g1h 0.0%
Epe di-AOer$k $0 SO so SO So SO SO So
A'ust<dAcre l,WtPrlce $59434 $76231 SB2,711 S53,600 S43,031 $51 93 S43 52 $112,835
Market irmds ihro 7/I/18 10.01% 9S4 14.8% 473% 18.2% 9.2a/a 8.9% 7.1% 0.01A
A'ustedAcre Unit Price $65,087 S87,523 S12I,827 $63,333 S17,001 55 le W660 S114835
Incatinn trod Caod Cnod Good Good Good Good Caod Cnod
%Ad'
stment 0% 0% 0°A 0°5 (PA O°A 0'A I&
SAd'stint $0 $o $0 SO SO So $0 SO
Acres 0.00 48.79 10.03 865 10.00 59.26 7753 4133 28.09
%Adjust�m 0% O'A Oy 0'•o O'k 0% 0% 036
SAd'shot SO So SO SO SO So $0 So
Topography Ievel Mostly level Ievel level level level IEV'I Level level
,el
O'A U/a 0% 0% 0% 0% 0% N
SLj,stmenl SO SO SO SO $0 SO $0 SO
Shape Site shape Irregular Rectangular Irregular Rectangular Irregular Rectangular Rectangular Irregular
%Adjustrrcnt 0% 0% O'A 0114 MA MA 0a/a Oak
SAd' trrent SO $0 SO SO $o SO $0 SO
UtiGlies FJectricity,Water, NorthWestem NeuhWestem Northwest- NorthWestem NorthWestem NodhWestem NorthWestem NorthWestem
Soo,Gas Fnergy Fnergy F-My Fnergy F-gy Fnetgy F c%y F-gy
%Adjustroant 01% N O% Os,: Os/. 0% (M. 0%
SAd'ustrrent SO SO So SO So SO $0 SO
Zoning Northwestern Resideatbl High SRR,Seni-Rural R3&Rd Residential Agh RR/A,Rural NI4&NS MU,Mi¢d-Use R-S,Residentirl
Nasky(R4), Residential Zone Density(R4) Residential& District hlbed Use High
Residential Medium Agricuhuml Density
Density(113)
%Ad'shot Os/, 0% Os/a M. 0% 0% 0% 0%
A'ustedAcre Unit Price 565087 S87 23 S121627 S63 33 547001 S56167 546660 $112835
NetAdjushnenh O.Oao 0.03E 0.0aA &0;5 0.01A 0.0%
O.0% QO'/a
Cross Adustments O.O'.o 0.0aA a0% 0.0% 0.01A OA% 0.01% 0.01A
The provided sales give a good indication of the per square foot valuation for vacant land
in the City of Bozeman. This valuation is for Residential Single-Household Low Density
(R1),Residential Two-Household Medium Density(R2), Residential Medium Density
(R3),Residential High Density(R4), and Residential Office (RO) districts.
Sale 1 is current and actually fits the criteria and defmition for the Cash in Lieu program.
This property will likely be developed mixed-use residential. This sale is also of a more
moderately sized site of 49 acres; thus,there are sales that are smaller and larger.
Typically, the larger the site,the lower the value per acre, and the smaller the site,the
higher the value per acre. Sale 1 is a typical site where the developer will literally have to
give up the physical land for park. After a market condition adjustment,the indicated
value is $65,000 per acre or$1.50psf.
Based upon these sales, I would estimate the per square foot value for vacant land in the
Residential Single-Household Low Density(R1),Residential Two-Household Medium
Density(R2),Residential Medium Density(R3), Residential High Density(R4), and
Residential Office(RO) districts within the City of Bozeman at$1.50psf as of July 1,
2018.
If I can be of further assistance,please do not hesitate to contact me.
Sincerely,
Keith O'Reilly,MAI
General Certified Appraiser
State of Montana#400
Bridger Appraisals Inc. O
Keith O'Reilly,MAI
CERTIFICATION
As a result of a request for an appraisal assignment of the property,identified as:
Standard Property Valuation for the City of Bozeman's Cash in Lieu of Parkland
Dedication Process
I certify:
To the best of my knowledge and belief the statements of fact contained in this report are
true and correct. 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.
I have no present or prospective interest in the property that is the subject of this report
and no personal interest with respect to the parties involved.
I have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment. My engagement in this assignment was not contingent
upon developing or reporting predetermined results. My compensation for completing
this assignment is not contingent upon the development or reporting of a predetermined
value or direction in value that favors the cause of the client,the amount of the value
opinion,the attainment of a stipulated result, or the occurrence of a subsequent event
directly related to the intended use of this appraisal.
My analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional,4ppraisal Practice
and the requirements of the Code of Professional Ethics and Standard of the Professional
Appraisal Practice of the Appraisal Institute.
The use of this report is subject to the requirements of the Appraisal Institute relating to
its duly authorized representatives.
As of the date of this report, I,Keith O'Reilly,MAI,have completed the continuing
education program of the Appraisal Institute.
Heidi Switzer provided significant real property appraisal assistance to the person signing
this certification,including market research and input as to the final reconciled value.
Respectfully Submitted,
Y
Keith O'Reilly,MAI
General Certified Appraiser#400
State of Montana
Keith(!Rein,'AIM
State of MN=w CvamrA CestiBcate EVim 3-31-2019
QUALIFICAPONS
EDUCATION AISAL EDUCATION COURSES
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Bridrer Appraisals Inc. O
Keith O'Reilly,MAI
State of Montana Th s ccrtfi ate venfies hcens,re as.
Business Standards Division CERTIFIED GENERAL APPRAISER
Board of Real Estate Appraisers Supervises.DANIEL WHEELER
Supervises:SI IAWNA OOSTEMA
License#: REA-RAG-LIC-400 Supervises:HEIDI SWITZER
Status: Active With endorsements of:
REAL ES TA TE APPRAISER MENTOR
Expiration Dale. 03/31/2019
KEITH PATRICK O REILLY
BRIDGER APPRAISALS
147 MCGEE DR
PO BOX 11145
BOZEMAN,MT 59719 �r,
t AHOR n INDUS1 HN
LAD
CRIDGER
APPRAISALS
Bridger Aprxai als,Inc.
P.O.Box 11143
Rama m,titan sane 39719
June Is•20IN
City of Bowman—Department of Patics and Rcvration
Carolyn Poissant-MLa,b1PA,AICP
415 North Bmruoan Start
lion xnan,;off 59713
Re:Prupczsal for Standard Property Valuation 1'ar the City of Bo7wrim'+Cash in 1 iva of Parkland Dedication Pniau
Ms.Poissant,
Per pour request.I am proposing to complete a report for the City of Bozcman's Cash in Licu of Parkland dedication proo=.
The intended wt of this report is to establish a standard property valuation on a per square foot basis for R3-R4,and RO zoning
districts-Per city code and state lase:
Cash donation in-li a of land drylicatiun shall hi:equal to the fair rnukct value of the amount of land that would have been
dedicated.For the purpose ofthrse regulations,the fair mori el value is the value of the unsubdi%ided.unimproved land at?rr it
has bean annexed and given an urban zoning designation,lie city intends to obtain the highest value for rnsh-in-lieu of prk I:mot
that is allowable under state Imo.
the report will compile sales of speculative development land to estimate the value on a per square foot bails.The ke for the
orihimol mpon wmthd be$Z,51R1 and the t'ttinmhsi delivery date would Iw June 29.201&Every six months,the iepon will lr
updated to include any new sales tcicvaot to the assignment-The f^o for these updates will be$600 each time.
Upon remipt of this proposal,please sign and return a mpy at your earliest"evcniertm.Thank you and pdsan at it'you have
any grxstions or concems.
Sinceroly,
i`
Keith ORcilly,MA1
Bridger Appraisals,Inc /fit
Proposal AeIlv�"4'll
tept�By:
The undersigned ac=pts the terms a.-td Bond ions of this proposal. l v-ec
Please sign and rctum a copy of this aqc L
Bridaer Appraisals Inc. C7
Keith O'Reilly,MA1