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Home My WebLink About20- Engagement Letter - Big Sky Appraisal Services, Inc. - Fire Station 1 Appraisal (Not Approved)Big Sky Appraisal Services, Inc. P.O. Box 1601 Bozeman, MT 59771 406-522-0183 ross@bigskyappraisalservcies.com June 30, 2020 Engagement Letter David Fine and Jeff Mihelich Urban Renewal Program Manager City of Bozeman Economic Development PO Box 1230 Bozeman, MT 59771 Email: DFine@BOZEMAN.NET Dear Mr. Mihelich, Pursuant to your request, I am happy to submit a proposal for the current market value appraisal for the property known as the Downtown Fire Station. The appraisal shall be prepared for acquisition analysis and is for the exclusive use of the City of Bozeman. I understand the appraisal is for the City of Bozeman and it is the public right to know provisions of the Montana Constitution and it is likely this appraisal will become public knowledge. The assignment will be to appraise the Downtown Fire Station for acquisition analysis. The legal interest to be appraised will be the fee simple interest. The property will be valued with a current date of value. The appraisal will be prepared in accordance with the Uniform Standards of Professional Practice. Attached to the letter you will find the Statement of Limiting Conditions and Appraiser's Certification which will be attached to the appraisal report prepared by this office. Please review the attached pages and acceptance of this proposal is also your acceptance of the attached Statement of Limiting Condition's and Appraiser's Certification. In addition, I have included my qualifications. The estimated completion date of this appraisal will as of the effective date. I can only complete the appraisal by this date if we receive from you in a timely manner any relevant information needed for the preparation of the report. In order to complete this appraisal, the following information will be needed: signed engagement letter. I will furnish you with an electronic PDF copy of the appraisal report along with printed copies upon request. My fee for this appraisal will be $4,000. The fee includes all costs of certain expenses that may be incurred in the preparation of the report. A bill in the amount of $4,000 for the appraisal fee will be presented and immediate payment will be requested at the time the report is completed. I will proceed with the preparation of this appraisal upon receipt of a signed copy this letter. If you have any questions about anything contained in this letter or in any of the attachments, please give me a call. Sincerely, Ross Wenger Jeff Mihelich, Limiting Conditions and Assumptions Acceptance of and/or use of this report constitutes acceptance of the following limiting conditions and assumptions; these can only be modified by written documents executed by both parties. This appraisal is to be used only for the purpose stated herein. While distribution of this appraisal in its entirety is at the discretion of the client, individual sections shall not be distributed; this report is intended to be used in whole and not in part. No part of this appraisal, its value estimates or the identity of the firm or the appraiser(s) may be communicated to the public through advertising, public relations, media sales, or other media. All files, work papers and documents developed in connection with this assignment are the property of Big Sky Appraisal Services, Inc. Information, estimates and opinions are verified where possible, but cannot be guaranteed. Plans provided are intended to assist the client in visualizing the property; no other use of these plans is intended or permitted. No hidden or unapparent conditions of the property, subsoil or structure, which would make the property more or less valuable, were discovered by the appraiser(s) or made known to the appraiser(s). No responsibility is assumed for such conditions or engineering necessary to discover them. Unless otherwise stated, this appraisal assumes there is no existence of hazardous materials or conditions, in any form, on or near the subject property. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, was not called to the attention of the appraiser nor did the appraiser become aware of such during the appraiser's inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test for such substances. The presence of such hazardous substances may affect the value of the property. The value opinion developed herein is predicated on the assumption that no such hazardous substances exist on or in the property or in such proximity thereto, which would cause a loss in value. No responsibility is assumed for any such hazardous substances, norfor any expertise or knowledge required to discover them. Unless stated herein, the property is assumed to be outside of areas where flood hazard insurance is mandatory. Maps used by public and private agencies to determine these areas are limited with respect to accuracy. Due diligence has been exercised in interpreting these maps, but no responsibility is assumed for misinterpretation. Good title, free of liens, encumbrances and special assessments is assumed. No responsibility is assumed for matters of a legal nature. Necessary licenses, permits, consents, legislative or administrative authority from any local, state or Federal government or private entity are assumed to be in place or reasonably obtainable. It is assumed there are no zoning violations, encroachments, easements or other restrictions which would affect the subject property, unless otherwise stated. The appraiser(s) are not required to give testimony in Court in connection with this appraisal. If the appraisers are subpoenaed pursuant to a court order, the client agrees to pay the appraiser(s) Big Sky Appraisal Services, Inc. regular per diem rate plus expenses. Appraisals are based on the data available at the time the assignment is completed. Amendments/modifications to appraisals based on new information made available after the appraisal was completed will be made, as soon as reasonably possible, for an additional fee. Americans with Disabilities Act (ADA) of 1990 A civil rights act passed by Congress guaranteeing individuals with disabilities equal opportunity in public accommodations, employment, transportation, government services, and telecommunications. Statutory deadlines become effective on various dates between 1990 and 1997. Appraisal Co. Valuation & Consulting has not made a determination regarding the subject's ADA compliance or non-compliance. Non-compliance could have a negative impact on value, however this has not been considered or analyzed in this appraisal. Certification Statement I certify that, 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 future interest in the property that is the subject of this report, and have 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 estimate, 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 Appraisal Practice (USPAP). • No one provided significant real property appraisal assistance to the person(s) signing this certification. • 1 certify sufficient competence to appraise this property through education and experience, in addition to the internal resources of the appraisal firm. • The appraiser has not performed any prior services regarding the subject within the previous three years of the appraisal date. • Ross Wenger has made an inspection of the subject property. • The reported analysis, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • The use of this report is subject to the requirements of the Appraisal Institute relating to review be its duly authorized representatives. • As of the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute. • As of the date of this report, I have completed the Standards and Ethics Education Requirements for Candidates of the appraisal Institute. Qualifications State of Montana Business Standards Division Board of Real Estate Appraisers REA-RAG-LIC-753 Status: Active Expires: 03/31/2021 ROSS WENGER PO BOX 1601 BOZEMAN, MT 59715 This certificate verifies licensure as: CERTIFIED GENERAL APPRAISER Supervises: ALYSE DORAN With endorsements of: 'REAL ESTATE APPRAISER MENTOR Montana Department of LABOR &INDUSTRY RENEW OR VERIFY YOUR tJCEN5E AT: p . , https://eNz.at.gw/pot j Ross WENGER, MAI, SRA REA-RAG-LIC-753 ross@bigskyappraisalservices.com (v) 406-522-0183 P.O. Box 1601 (f) 406-522-0243 Bozeman, Montana 59771-1601 Education Bozeman Senior High School, 1987-1989. 205 North 11th Avenue, Bozeman, MT 59715 Diploma awarded 1989 Montana State University, 2000-2004. 2310 University Way, Bozeman, MT 59715 Major: B.S. in Business Management diploma awarded 2004: Course study; Management, Economics, Entrepreneurship and Small Business, Finance, Business Communications, and Accounting Appraisal Institute Successfully Completed Fundamentals of Separating Real Property, Personal Property and Intangible Business Assets April 26-27, 2012 Advanced Applications September 101h_ 16"2009 Business Practices and Ethics January 22nd 2009 Report Writing and Valuation Analysis October 20th -25th 2008 Advanced Sales Comparison and Cost Approaches October 18th -24th 2007 Highest & Best Use and Market Analysis April 2nd -April 7th 2007 Advanced Income Capitalization October 51h -11th 2006 General Applications August 14th -19th, 2006 Basic Income Capitalization January 26th -February V 2006 15 -Hour National USPAP Course April 26th -27th 2004 Appraisal Procedures April 19th -24th 2004 Appraisal Principles April 12th -17th 2004 Attended Seminars 7 -Hour National USPAP Update Course January 27, 2016 Litigation Appraising: Specialized Topics and Applications October 1-2, 2015 General Demonstration Report Writing October 22, 2014 Residential Applications Part 2: September 19, 2014 Introduction to Green Buildings: Principles and Concepts March 11, 2014 7 -Hour National USPAP Update Course January 31, 2014 Business Practices and Ethics September 13, 2013 Appraising the Appraisal, Appraisal Review -General September 18, 2012 7 -Hour National USPAP Update Course January 27, 2012 Advanced Spreadsheet Modeling for Appraisal Applications, October 6-7, 2011 The Uniform Appraisal Dataset from Fannie Mae & Freddie Mac, June 17, 2011 Attacking and Defending an Appraisal in Litigation, May 19-20, 2011 The Discounted Cash Flow Model October 4, 2010 Hotel Appraising October 5, 2010 Comprehensive Appraisal Workshop -Ted Whitmer March 18-21, 2010 7 -Hour National USPAP Update Course February 5, 2010 Online Subdivision Valuation December, 14, 2008 7 -Hour National USPAP Update Course January 25, 2008 7 -Hour National USPAP Update Course March 27, 2006 The Professional's Guide to the URAR June 30, 2005 National Association of Independent Fee Appraisers Successfully Completed Residential Report Writing January 26-27, 2004 Principles of Residential Real Estate Appraising January 15-18, 2004 Work Experience Big Sky Appraisal Services, Inc. P.O. Box 1601, Bozeman, MT 59771, Ross Wenger 406-522-0183 October 2007- Present, Bozeman, Montana. President and Owner of Big Sky Appraisal Services, Inc. My commercial experience includes multi and single tenant office buildings, retail buildings, industrial buildings; commercial condominiums; residential and commercial condominium development; apartment complexes; mixed-use buildings; subdivision analysis; special use properties; and vacant land. In addition, my residential experience includes single-family, 2-4 multi -family, condominiums, luxury homes, and subdivision lots. Appraisal Services of Bozeman P.O. Box 1706, Bozeman, MT 59771, Jerry Gossel 406-587-5044 Aug 2004 -October 2007, Bozeman, Montana. Started as a part-time trainee, then a full-time residential appraiser, and then a full-time Certified General Appraiser. My commercial experience included multi and single tenant office buildings, retail buildings, industrial buildings; commercial condominiums; residential and commercial condominium development; mixed-use buildings; subdivision analysis; special use properties; and vacant land. In addition, my residential experience included single-family, 2-4 multi -family, condominiums, luxury homes, and subdivision lots. • Joel Peterson Appraisals, Inc. 421 W Mendenhall St., Bozeman, MT 59715, Joel Peterson 406-587-5641 Jan 2003 -June 2004, Bozeman, Montana. Part-time appraiser in Training of various residential properties that included single-family, multi -family, condominiums, and subdivision lots. Memberships Designated Member of the Appraisal Institute Montana Chapter Appraisal Institute National Association of Realtors® Montana Association of Realtors® References Jeren Star, American Bank of Montana 1632 W. Main St. Bozeman, MT 59715 (406) 522-3548 Scott Nicholson, First Interstate Bank 2800 W. Main St. Bozeman, MT 59718 (406) 556-4881 Deborah Charnholm, American Federal Savings Bank 1455 West Oak St. Bozeman, MT 59715 (406) 587-7711 BIG SKY APPRAISAL SERVICES, INC. PO Box 1601 www.bigskyappraisalservices.com 406-522-0183 Bozeman, MT 59771 ross@bigskyappraisalseivices.com 06/30/2020 Mr. David Fine City of Bozeman PO Box 1230 Bozeman, MT 59771 Re: Appraisal Report, Real Estate Appraisal The Downtown Fire Station 34 N Rouse Ave, Bozeman, Gallatin County, MT, 59715 Invoice #: 1 File Name: The Downtown Fire Station Dear Mr. Fine: The table below details our invoice for services: Service Appraisal Report, Real Estate Appraisal File Name: The Downtown Fire Station Additional Copies Terms: 30 Days Net Respectfully submitted, Big Sky Appraisal Services, Inc. Total $4,000 $0 Total $4,000.00 UN® p'CCT OBJE-T PROJECT 01 D 12 H L�l_ s—� -SO--)O Description