HomeMy WebLinkAboutC7. Sign Easement
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Carolyn Poissant – Manager of Trails, Open Space and Parks Design and Development
Mitch Overton – Director of Parks, Recreation and Cemetery
SUBJECT: Easement Agreement for Path to the M Trails, Open Space, and Parks Project - Parcel 106-027
MEETING DATE: May 16, 2016
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Approve the Memorandum of Agreement for acquisition of an
easement to facilitate construction of improvements associated with the “Path to the M” using previously allocated funding from the 2012 Parks, Trails, and Open Space bond fund and
authorize the City Manager to sign the appropriate documents.
BACKGROUND: Resolution 4484 approved the allocation of Trails, Open Space and Parks
(TOP) bond funding up to an amount of $600,000 for the design and construction of the “Bicycle
and Pedestrian Pathway to the M and Drinking Horse Mountain” project, which serves as match
for a Federal Lands Access Program grant funded by the Western Federal Lands division of the
Federal Highway Administration. The Project Agreement includes a budget of $140,000 for the
acquisition of rights-of-way in the form of public access easements for the multi-use path. This is
the first agreement to be secured out of five agreements for easements being negotiated with
property owners along the path alignment. The total project budget is $3.93 million, as
summarized below:
Item Estimates ($) Comments
ROW $140,000 Depending on final settlement
Utilities 40,000 Depending on impact
NEPA 20,000
Preliminary Engineering 620,000
Construction 2,800,000
Construction Engineer 280,000
Contingency 30,000
Total 3,930,000 Program amount
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An appraisal dated November 18, 2015 for Parcel 106-027 (Attachment F) lists the value of the
subject easement as $29,455. The sales contract price on the Closing Estimate is $29,400 with
$586.25 indicated as closing costs, for a total of $29,986.25 (Attachment C).
UNRESOLVED ISSUES: We are still negotiating with five property owners for additional easements. Two have verbally agreed and are being finalized and two are still reviewing the offer
packages.
ALTERNATIVES: The preferred path alignment as designed requires the easement. If any of
the requested easements are not able to be obtained, we may need to adjust the design, which would be considerably more costly than the current alignment.
FISCAL EFFECTS: Funding for the entire project was previously approved and allocated by
Commission. There is no additional expense associated with this agreement.
ATTACHMENTS: Attachment A – Memorandum of Agreement
Attachment B – Public Use Easement Attachment C – Escrow
Attachment D – Closing Estimate
Attachment E – Buyer’s Instructions
Attachment F - Appraisal
Report compiled on: May 10, 2016
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Montana Title & Escrow, Inc.
1925 N. 22nd Avenue, Suite 102
Bozeman, MT 59718
DATE: February22,2016
RE: ESCROW NO.: M-17227
PROPERTY: Parcel 0274
280 Bress Lantern Court
Bczeman, MT 5S715
You are handed herewith an executed
X Public Use Easemeni
Power of Attorney
X. Request for Taxpayer LD.# (1099 Repoting) if payment to be made to
Grantor.
Which you are authorized and instructed to record through the above referenced escrow:
Without demand for any consideration to the undersigned, monetary or otherwise,
for their delivery of said instrument or (Check One)X Provided you hold for the account of the undersigned the sum of $29,400.00
to be paid to James and Janet Simmcns
I am to be of no expense in connection with this transaction and no documentary transfer tax is
to be affixed to said EASEMENTS.
Transfer tax, if applicable, and recording fees are to be collected from the grantee. When
recorded, document is to be returned to the grantee. Preparation of this instrument and
recording of same is to be done at no expense to the undersigned.
READ, APPROVED AND ACCEPTED BY:
4annat t4 tlJltr+1ffi
Page I of 2 - February 24, 2016
Inshctions Deed - Rdail
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The above instruction and Deed mentioned therein have been reviewed and are hereby approved
by the undersigned. You are to record said PUBLIC USE EASEMEiIT concurrently with the oiher
dccuments contained in the above numbered escrow and charye my account for the cost
incurred.
CHRIS A KUKULSKI, CITY MANAGER
Montana Title & Escrow, lnc.
BY:
CANDACE D, ELSER
Page2 of2 - February 24,2016
I$tructiore - Deed - Rctail
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Montana Title & Escrow, lnc.
1925 N. 22nd Avenue, Suite 102 File Number: M'17227
Bozeman, MT 59718 Loan Number: :;lt "|- Dv/-trrrrAry rAl\\'trL
. (406)587-7702 sates price: $29,400.00
Close Date: 513112015
BORROWER(S) ESTIMATED CLoSING Disbursement Date:
Type: Sale
Property: 280 BRASS LANTERN COURT
BOZEMAN, MT 59715 (GALLATIN)
(06-0905-s3-1 -02-05-0000)
Bonowe(s): CITY OF BOZEMAN, A MONTANA MUNICIPAL CORP0RATION
PO BOX 1230
121 N. Rouse
Bozeman, MT 59771
Selle(s): JAMES C SIMMONS AND JANET SIMMONS
280 Brass Lantern Court
Bozeman, MT 59715
Lender:
Address:
Legat Desc: LOT 2 OF MTNOR SUBDIV|S|ON NO. 133, LOCATED tN THE NE1/4 OF SECTION 33, TOWNSHIP 1 SoUTH, RANGE 6 EAST'
P.M.M., GALLATIN COUNTY, MONTANA, ACCORDING TO THE OFFICIAL PLAT THEREOF ON FILE AND OF RECORD IN
THE OFFICE OF THE COUNTY CLERK AND RECORDER OF GALLATIN COUNTY, MONTANA.
I::::#rDE iit,,,ii:i :::t€cidit..s,::
$29,400.00
(ro lAn nn Prpmirrm S?61 00 ln Montana Title & Escrow. lnc.$261.00
Additional Title Work Charges to Montana Title & Escrow, lnc.$24.00
lnn (2^n Afi Tntal A?50 00 $250.00
trannr.linn Drrhlin llca Freamanl l^ [Il HC Recordin., A...nunt $28.00 $28.00
Recording temporary Construction Easement to MLHC Recording eq4q!--$4 iq $21.00
Cnrrnlv hand Dnliverv floe Fee to MLHC Recordino Account $2.25 $2.25
lotals $29,986.25 $0.00
Balance Due FROM Borrower: $29'986'25
lssued Dale:51312016
Lendeds Basic (non-discounted) Rate:
l/We hereby agree to pay all my proper costs and fees, including any taxes, assessments and liens of public record, and any
adjustments thereto, and authorize you to deduct same from tunOs oue me and remit the balance to me at an address designated
by the undersigned.
File Number: M-17227 1 of 2
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APPROVED AND ACGEPTED
BORROWER(S)
CIry OF BOZEMAN, A MONTANA MUNICIPAL CORPOMTION
Chris A. Kukulski, City Manager
File Number: M-17227 2 oI 2
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iflcntana Title & Escrow, lnc.
1925 N.22nd Avenue, Suite 102
Bozeman, MT 59718
Phone: (406)587-7702
Fax: {406)587-2891
Date: 51312016
Escrow No.: M-1V227-CE
Escrow Officer: Candace Elser
Property Address:
280 Brass Lantern Court, Bozernan,MT 59715
BUYER'S INSTRUCTIONS
Montana Title & Escrow, lnc., a Montana Carporation, is licensed to perform escrow services by the State of
Montana.
It is understood, by the parties hereto, that when the term "Escrow Holder" is used throughout these
instructions it is always referring to Montana Title & Escror,u, lnc. unless specifically stated othenrvise.
lAffe hand you herewith:
Cashier's check or verifiable funds in the arnount stated on the attached Estimated Settlement Statement.
You are hereby aulhorized to deliver and/or record all said documents and disburse said funds, together with
the proceeds of any easements mentioned, on account for the purchase price of the real property described in
your above numbered escrow and on acccunt for the other costs, fees and adjustments in connection
iherewith, when you can issue your 20C6 ALTA Standard Owners Policy of Title lnsurance in the amount of
$29,40il.0C.
Title to be as vested in the name of: CITY OF BOZ=MAN, A MONTANA MUNICIPAL CORPORATION
SUBJECT TO:
1. All printed exceptions and conditions in the policy.
2. All general and special taxes as shown in ltem 6 below.
3. The lien of supplemental taxes which may be assessed as a result of revised assessed values.
4. Bond and/or Special Assessments not delinquent.
5. Covenants, Conditions, Restrictions, Easements, Reservations now of record
6. Exceptions Numbered: 1 - 17 as shown on the Title Ccmmitnnent dated September 1 1 , 2015
The undersigned Buyer acknowledges that he/she has received and read a copy of the Preliminary Repart or
Title Commitment Order No. M-17227. Seiler to acknowledge that the information contained in the Preliminary
Report is correct to the best cf hislher knowledge.
The receipt by escrow of all documents and monies required to transfer title in accordance with these
instructions shall be deemed as sufficient indication that all contingencies and/or conditions contained in the
Purchase Agreement by and between the within Buyers and Sellers have been removed, complied with, or will
be satisfied outside of escrow.
s54.7S-1,_11t
Pagelof2-51312016
MLHC Buyer's Escrow Instructions58
These instructions are effective until revoked by any of the undersigned through written demand delivered to
Escrow Holder. I hereby agree to pay all my proper costs and fees, including any adjustments, and request
you to remit balance to me at the address shown below. Buyer's estimated settlement statement attached
hereto and made a part hereof.
BUYER:
CITY OF BOZEMAN, A MONTAI\'IA MUNICIPAL CORPORATION
Chris A. Kukulski, City Manager
Mailing Address:
By:
Phone:
Received by Montana Title & Escrow, lnc.
Email:
By:
1-17
Date:Time:
Page2of 2- 51312016
MLHC Buygr's Escrow Instuctio0s59
Hall – Widdoss & Company, P.C. 1
APPRAISAL REPORT IN A NARATIVE FORMAT OF
PARCEL 106-027
BOZEMAN TO BRIDGER MOUNTAINS TRAIL
BOZEMAN, MONTANA
FOR
DOWL HKM
PREPARED BY:
NICHOLAS J. HOGAN, MAI HALL - WIDDOSS & COMPANY, P.C.
1001 SW HIGGINS AVE., SUITE 201
MISSOULA, MT 59803
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Hall – Widdoss & Company, P.C.
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TABLE OF CONTENTS
INTRODUCTION:
Letter of Transmittal .................................................................................................................................. 3-5
REPORT:
Summary of Salient Facts and Conclusions ............................................................................................... 6-8
Scope of Work ......................................................................................................................................... 9-12
Record Owner/ Sales History ...................................................................................................................... 12 History of the Property ................................................................................................................................ 12
Location of Property ................................................................................................................................... 12
Legal Description ........................................................................................................................................ 13 Definition of Value ..................................................................................................................................... 13
Reasonable Exposure Time & Marketing Time .................................................................................... 13-14
Property Rights Appraised .......................................................................................................................... 14 General Area Map ....................................................................................................................................... 15
General Area Data and Trends ............................................................................................................... 16-18 Neighborhood Map ..................................................................................................................................... 19 Neighborhood Data and Trends .................................................................................................................. 20
Plat Map ...................................................................................................................................................... 21 Subject Photographs ............................................................................................................................... 22-24 Property Description .............................................................................................................................. 25-26
Taxes & Assessments ................................................................................................................................. 27
Highest & Best Use ............................................................................................................................... 28-30
The Appraisal Process ................................................................................................................................. 31
Sales Comparison Approach .................................................................................................................. 32-50
Easement Map ............................................................................................................................................. 44
VALUE ESTIMATE AND CERTIFICATION .................................................................................... 51-52
ADDENDA:
Assumptions and Limiting Conditions
Deed Taxes
USDA Web Soil Survey Map & Legend Land Sales Map & Sale write ups Appraisers Qualifications
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Hall – Widdoss & Company, P.C.
INTRODUCTION
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Appraisals and Consultations in Acquisitions/Dispositions, Feasibility Studies,
Partial Interests, Condemnation & Litigation, Investment Analysis. 3
Hall - Widdoss & Company, P.C.
Real Property Valuations & Consulting
1001 SW Higgins Avenue, Suite 201
Missoula, MT 59803
Ph. (406) 721-3822 Fax (406) 721-7848
Steve.Hall@hall-widdoss.com
nickhogan@gmail.com
matthall7667@hotmail.com
Steven A. Hall, MAI, CCIM
MT, ID & WY General Certified
Nicholas J. Hogan, MAI
MT, ID, WY General Certified
Matt S. Hall
MT General Certified
John Widdoss, MAI, ARA
Spearfish, SD 57783
(605) 642-8844
November 18, 2015 Tony Becken-Gaddo, P.E.
Dowl HKM
2090 Stadium Drive
Bozeman, Montana 59715 RE: Parcel 106/027; Bozeman to Bridger Mountains Trail
Dear Mr. Becken-Gaddo:
In response to the contract located in the addenda of this report, I have prepared the following appraisal report. The purpose of the appraisal is for estimating the current fair market value,
before the imposition of the road easement, its current fair market value after imposition of the
road easement, and an estimate of compensation due to the property owner. I have appraised the
individual properties as a whole, owned in fee simple. I assume no responsibility for matters that are legal in nature nor do I render an opinion as to title.
Under general requirements, the appraisal has been prepared in conformance with the Uniform
Standards of Professional Appraisal Practice (USPAP). The appraisal of the subject will present
my findings and conclusion of the “as is” fee simple market value of the property as of the date of final inspection. Specific reference to the issue of competency is required. It is recognized that Nicholas J. Hogan, MAI has adequate current, practical experience in the appraisal of vacant
land and subdivision properties in Western Montana. As such, I believe I am competent to
provide this appraisal service.
The subject property consists of a 40 acre tract located on the northerly side of Bridger Canyon Road. The subject property is a sloping tract from north to south. The subject elevation near the
corner of Brass Lantern Lane and Bridger Canyon Road is roughly 4,920 feet above sea level.
Closer to the northerly end of the site the property is somewhere between 5,060 feet above sea
level and 5,190 feet above sea level at the north easterly corner. Generally the majority of the property is open and gently sloping. The property is zoned AEPD10 and is located within panel 30031C0828, effective September 2, 2011. The property is also located within Brass Lantern
PUD. The property is located within Zone X which is an area of minimal flooding. City water
and sewer are currently located at the intersection of Boylan Road and Bridger Canyon Road
west of the subject. There are currently no plans to extend sewer or water in the immediate area of the subject.
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4
There are structural improvements to the site all set back from Bridger Canyon Road and are not
impacted by the right away project. Therefore, these are not included within the analysis. This
is simply an analysis of the impact to the underlying land as a result of the right of way.
Property rights appraised are an encumbered fee simple title. The valuation reflects the market
value of the real estate only. There are no known environmental problems or hazards associated
with this property and no immediate adjacent influences that would imply infiltration issues. I
have assumed there are no environmental conditions that would detrimentally impact value or use of this property.
Based upon my investigations, studies and analyses, my opinion of the fee simple market value
of the subject site, before the imposition of the right of way or road easement, in its' "as is”
condition, considering the assumptions and limiting conditions discussed herein and as of October 21, 2015 to be:
ONE MILLION ONE HUNDRED SIXTY THOUSAND DOLLARS
($1,160,000.00)
Based upon my investigations, studies and analyses, my opinion of the fee simple market value
of the subject site, after imposition of the right of way or road easement, in its' "as is” condition,
considering the assumptions and limiting conditions discussed herein and as of October 21, 2015
to be:
ONE MILLION ONE HUNDRED THIRTY FIVE THOUSAND NINETY FIVE DOLLARS
($1,135,095.00)
Value of the Acquisition $0
Site Improvements $0
Construction Permit $0
Right of Way Easement $24,905
Depreciation of Fair Market Value $0
Cost To Cure $4,550
Total Compensation $29,455
Rounded $29,500
Lessee Interest
Not Applicable
Lessor Interest
Not Applicable
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Your attention is invited to the data found within the body of this report which, in part, are the
foundation of my conclusion. I wish to thank you for this opportunity; should you find need of
this firm's services again, please do not hesitate to contact me.
Professionally yours,
HALL - WIDDOSS & COMPANY, P.C.
Nicholas J. Hogan, MAI
MT General Certificate No. REA-REG-LIC-370
Expires 3/31/16
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SUMMARY OF SALIENT FACTS AND CONCLUSIONS
RECORD OWNER :James C. and Janet Simmons
LOCATION OF PROPERTY :The subject property is located at the north easterly
corner of Brass Lantern Court and Bridger Canyon
Road. The physical address is 280 Brass Lantern
Court, Bozeman, MT.
PROPERTY RIGHTS APPRAISED :Fee simple title
DATE OF VALUATION :October 21, 2015
DATE OF REPORT :November 18, 2015
PRESENT USE :Rural residential SFR
HIGHEST AND BEST USE :Rural residential SFR
SUMMARY DESCRIPTION OF PROPERTY BEFORE ACQUISITION:
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Land Size: :The subject property consists of a 40 acre site
located at the northeasterly corner of Brass Lantern
Court and Bridger Canyon Road. Shape/Configuration :Site is irregular in shape & configuration.
Street Improvements :The property has frontage and exposure to Bridger
Canyon Road that sets the southerly boundary of the subject property. Brass Lantern Court sets the
westerly boundary of the subject property. Both
streets are asphalt improved roadways.
Frontage/Access :The property has frontage to both Bridger Canyon Road and Brass Lantern Court. The subject
physical access is from Brass Lantern Court.
Topography/Terrain :The land is predominately sloping from north to
south. The subject elevation near the corner of Brass Lantern Lane and Bridger Canyon Road is
roughly 4,920 feet above sea level. Closer to the
northerly end of the site the property is somewhere
between 5,060 feet above sea level and 5,190 feet
above sea level at the north easterly corner. Generally the majority of the property is open and
gently sloping.
Soil Conditions :Not independently investigated nor is an opinion rendered on suitability for development, load bearing qualities or production. I have assumed no
soil problems exist.
Flood Hazard :The subject is located within panel 30031C0828, effective September 2, 2011. The property is located within Zone X which is an area of minimal
flooding.
Hazardous Substances :None observed. Utilities
Water ...................................................................................................... Well
Sewer....................................................................................................Sewer
Natural Gas ................................................................................ NW Energy Electrical .................................................................................... NW Energy
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Zoning: :The subject property is zoned AEDP10 which is an
agricultural exclusive district. The overall intent of
the regulation is to preserve agriculture as one of the primary occupational pursuits and an economic
endeavor in Bridger Canyon. A further intent is to
protect and preserve the existing rural character of
Bridger Canyon and to preserve existing developed
and undeveloped farmlands from unplanned residential, commercial and industrial development.
The property is also located within Brass Lantern
PUD.
Easements/Encroachments: :None noted.
Water Rights: :There are no water rights associated with the
subject property.
Mineral Rights: :An analysis of the mineral rights is outside the scope of this analysis and is not included.
Improvements: :There are structural improvements to the subject
property consisting of a single family residence and
outbuildings. These are not affected by the project and are not included within the scope of the
analysis.
Use History: :The subject is a single family residence since roughly 1994 according to current Montana Department of revenue records. It’s unknown if
there was a single-family residential development
on the property prior to that.
Rental History: :There have been no rental agreements or rental uses of the property.
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THE REPORT
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SCOPE OF WORK
The Scope of Work was previously defined as the Scope of the Appraisal. Based on requirements of the Uniform Standards of Professional Appraisal Practice (USPAP – 2014/15) promulgated by
the Appraisal Standards Board of the Appraisal Foundation and the guide notes to the Standards of
Professional Appraisal Practice adopted by the Appraisal Institute, this has become the primary
element defining the appraisal conducted here. USPAP involves binding requirements and specific
guidelines that deal with the procedures to be followed in developing an appraisal, an analysis or opinion and with the reporting or communication of that appraisal opinion defined as Standards 1
& 2. The appraisal service & reporting option must be consistent with the Scope of Work defining
the appraisal service and how it is to be communicated. The appraisal has complied with the
regulatory requirements of the State of Montana administered by the Montana Board of Appraisers
based on compliance with Standards & Ethics defined within USPAP.
The scope of work defines the appraiser’s conclusions as to what is deemed necessary to provide
a credible appraisal. Assignment conditions include assumptions, extraordinary assumptions,
hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that
affect the scope of work. Laws include constitutions, legislative and court-made law, administrative rules, and ordinances. Regulations include rules or orders, having legal force,
issued by an administrative agency. Pursuant to requirements found in USPAP the appraisal
assignment is defined by six elements.
These elements and the particulars of this appraisal are as follows:
1. client and any other intended users;
2. intended use of the appraiser’s opinions and conclusions;
3. type and definition of value; 4. effective date of the appraiser’s opinions and conclusions; 5. subject of the assignment and its relevant characteristics; and
6. assignment conditions.
1. Client/Intended Users: The client is identified as Dowl HKM and the city of Bozeman. Although the landowners will be provided a copy of the appraisal, that owner/entity is not recognized here as an intended user.
2. Intended use: The intended use will be to assist the client/intended user in
appropriately compensating the property owners for the imposition of the right away or road easement.
3. Type of value: The type of value required is market value.
4. Effective Date of Value: The effective date of value (effective date of appraisal) is identified and is consistent with the date of inspection, unless otherwise directed. The report date is November 18, 2015.
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5. Relevant characteristics: Deals with the extent of the subject property such as
inspection/property viewing, property rights appraised, etc. The client requested an
estimate of market value for the property in its “as is” condition, and as of the current date (consistent with the date of inspection). There are no other extraordinary
assumptions concerning demolition, etc. The only other limiting conditions of any
significance are reflective of the more typical assumptions & limiting conditions that are
contained in the addenda to this appraisal.
The extent of the Property Identification involves both physical characteristics of the
property (land, site improvements but not including any structural improvements) and
legal characteristics such as the fee simple estate limited by easement, covenants,
restrictions and other encumbrances relevant to the valuation problem. For this appraisal,
the extent of the subject inspection involved a viewing of the entire properties. The subject inspections included a review of courthouse records for identification of legal
description, easements of record, CAMA data, assessments, taxes and zoning. The
subject property owner was involved in the appraisal process. I spoke with the property
owner on the telephone and they agreed to meet for the physical inspection of the
property which included an interview to establish & verify observable as well as hidden elements of the improvements.
I make no assurances that the courthouse (CAMA) data is accurate but it is considered
relevant information as part of the appraisal process employed. The appraisers are not
inspectors and no opinion is rendered as to compliance with health codes, building codes or other such regulations.
6. Assignment Conditions: Refers to hypothetical conditions, assumptions & limiting
conditions. Please refer to the paragraphs below and other relevant sections of the report. The client requested an estimate of market value for the property in its “as is” condition, and as of the current date (consistent with the date of inspection). The only limiting
conditions of any significance are reflective of the more typical assumptions & limiting
conditions that are contained in the addenda to this appraisal. There are no personal
property items included within the valuation. There is one important hypothetical condition relative to these appraisals. As of the
effective date of this appraisal report the right away or road easement has not been
imposed and if all parties are in agreement, the easement will be imposed at a future date.
The value of the subject site after the imposition of the easement is subject to this easement being recorded and imposed on the subject site as explained within this project report. The analysis, after the imposition of the easement, would not be reasonable nor
with the value conclusion be credible if this project is not completed.
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For the reader’s edification, I have incorporated definitions for hypothetical conditions and
extraordinary assumptions. These definitions are taken from the USPAP 2014/15.
“HYPOTHETICAL CONDITION: a condition, directly related to a specific assignment, which
is contrary to what is known by the appraiser to exist on the effective date of the assignment
results, but is used for the purpose of analysis.
Comment: Hypothetical conditions are contrary to known facts about physical, legal, or
economic characteristics of the subject property; or about conditions external to the property,
such as market conditions or trends; or about the integrity of data used in an analysis.”
“EXTRAORDINARY ASSUMPTION: an assumption, directly related to a specific assignment,
as of the effective date of the assignment results, which, if found to be false, could alter the
appraiser’s opinions or conclusions.
Comment: Extraordinary assumptions presume as fact otherwise uncertain information about
physical, legal, or economic characteristics of the subject property; or about conditions external
to the property, such as market conditions or trends; or about the integrity of data used in an
analysis.
It is my opinion that I am qualified to provide this appraisal service. Qualifications have been included within the addendum of the report and these identify or serve as evidence of the
experience and expertise (competency) to provide this service. Specific to the property and
location of the subject of this appraisal, it is recognized that I, Nicholas J. Hogan, MAI routinely
provide appraisal services within this classification of real property & within this market area.
As such, the conclusion is expressed that sufficient knowledge and experience combined with
my professional qualifications are adequate to comply with technical & geographic competency
requirements of USPAP. The firm of Hall-Widdoss and Company has completed a number of
appraisals in the market area so there is a historical and geographic competency. In terms of the
appraisal problem identified, the subject neighborhood generally consists of single-family residential uses.
Relevant to the preceding paragraph, factual market data gathered or researched for this appraisal
includes land sales and improved sales. This data is utilized in arriving at the highest and best
use for the subject property and to estimate the market value of the property based on that conclusion of highest and best use. It is recognized that Montana is a non-disclosure State and
verification of sales is commonly handled through real estate agent confirmation as well as buyer
and/or seller verification. There are times when the confirming party does not wish to be
identified or where the price is not to be divulged in an appraisal report. All of these elements
are considered appropriate and common under peer review. There is an MLS service to assist in the appraisal research but private sources are also consulted as well as individual investor,
owner/operators, management companies, etc. are contacted for market data.
It is acknowledged that I lack special expertise or knowledge with respect to the detection and measurement of hazardous substances. For this appraisal, I have not been provided either a Phase I or Phase II environmental audit relating to this topic. I have assumed there to be no environmental
concerns relating to the subject property and this is a typical assumption & limiting condition.
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I have not been involved in an appraisal of the subject property at any time prior to this appraisal.
I have reviewed the previous ownership history of this property. I have discussed & analyzed
any previous sale of the subject property to the extent that information is available.
The following identifies the individuals, companies and governmental agencies that have been
contacted during this investigation. It should be noted that this is not considered to be an all-
inclusive list although it does identify the primary contacts made.
Gallatin County Treasurer Gallatin County Clerk and Recorder
Gallatin County Appraisal/Assessor Gallatin County Planning
Gallatin Gateway Water & Sewer Dist. Various landowners & investors
Sally Uhlmann Kristen Hoell
Sara Hahn Ray Atteberry Josh Vujovich Numerous other agents
Project Discussion:
This appraisal report is being completed for the R/W acquisition for the proposed M Trail. The right away acquisition is for the trail to the M TOP project which will install a new shared use
path to the M trailhead near Bozeman, Montana. The feasibility memorandum for the Bozeman
to Bridger Mountains Trail, MD DOT 86 (1) (January, 2015), trail alternative 2, is the basis for
the areas necessitating right away acquisition. The proposed trail generally runs from Story Mill
Road on the west along Bridger Drive, which becomes Bridger Canyon Road, to the M Trail parking lot on the east.
RECORD OWNER/SALES HISTORY According to the records of the Gallatin County Clerk and Recorder's Office, the subject
ownership is shown as James C. and Janet Simmons. The subject property has been under that
ownership for a time period exceeding 3 years.
HISTORY OF THE PROPERTY
The subject property was developed with the current single family residence in 1994. The
property has also been used in an agricultural capacity according to the owner.
LOCATION OF PROPERTY
The subject property is located at the north easterly corner of Bridger Canyon Road and Brass Lantern Court. The subject physical address is 280 Brass Lantern Court.
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LEGAL DESCRIPTION
According to information provided the subject property is legally described as:
DEFINITION OF VALUE
The purpose of this appraisal is to provide an opinion of the market value of the property
described herein and commonly referred to as the subject property in its’ “as is” condition.
The current fair market value has been developed and refined by the State of Montana and
found in state statute MCA70-30-313 and is as follows:
"Current fair market value is the price that would be agreed to by a willing and informed
seller and buyer, taking into consideration, but not limited to the following factors
1. The highest and best reasonably available use and its value for such use, provided
current use may not be presumed to be the highest and best use;
2. The machinery, equipment, and fixtures for the part of the real estate taken;
3. Any other relevant factors as to which evidence is offered."
REASONABLE EXPOSURE TIME & MARKETING TIME
It is a requirement of the Uniform Standards of Professional Appraisal Practice (USPAP) to incorporate discussion & analysis of Exposure Time within a market value analysis of the
subject property. As previously defined by the Appraisal Standards Board of the Appraisal
Foundation, the term states:
"The estimated length of time the property interest being appraised would have been
offered on the market prior to the hypothetical consummation of a sale at market value
on the effective date of the appraisal; a retrospective estimate based upon an analysis of
past events assuming a competitive and open market."
1. The time a property remains on the market.
2. The estimated length of time the property interest being appraised would have
been offered on the market prior to the hypothetical consummation of a sale at market
value on the effective date of the appraisal; a retrospective estimate based on an analysis
of past events assuming the competitive and open market.
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It is often assumed that this is consistent with the concept of Marketing Period (Time). This
has been defined within the "The Dictionary of Real Estate Appraisal, Fifth Edition",
published by The Appraisal Institute as follows:
An opinion of the amount of time it might take to sell a real or personal property interest
at the concluded market value level during the period immediately after the effective date
of an appraisal. Marketing time differs from exposure time, which is always presumed to
precede the effective date of an appraisal (Advisory Opinion 7 or the Appraisal
Standards Board of The Appraisal Foundation and Statement on Appraisal Standards
No. 6, “Reasonable Exposure Time in Real Property and Personal Property Market
Value Opinions” address the determination of reasonable exposure and market time.)
The simple issue between these two definitions is one of historical evidence (exposure time is always presumed to precede the effective date of the appraisal) and prospective or future
occurrence (marketing time). These may be the same in a stable market or opposite trends in a
changing market. The situation could be a relatively weak or soft market noted by historical
evidence yet current trends reflect a strong demand and investor expectations for continued
strong demand. That could present opposite exposure time and marketing time discussions/conclusion. Looking at the sales and current listings shown within the sales
comparison approach, the subject could be marketed and sold within a 12 month timeframe.
Therefore the exposure time and marketing time are both shown as 12 months.
PROPERTY RIGHTS APPRAISED
Property rights are assumed to be an encumbered fee simple title. I have assumed no
responsibility for the marketability of the title. It is recognized that utility easement(s) are common to most real property; a detailed discussion as to their existence on the subject properties will be provided only if it is deemed they impact (presumed negatively) the valuation
or use of the property.
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GENERAL AREA MAP
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GENERAL AREA DATA AND TRENDS
The subject property is located to the east of the city of Bozeman in the unincorporated area of Gallatin County. As indicated in the table below, the county and two primary towns having an
impact on the subject are identified.
Social Factors:
Area 1990 2000 2010 2014
City of Bozeman 22,660 27,509 37,280 41,660
City of Belgrade 3,411 5,728 7,389 7,798
Gallatin County 50,463 67,831 89,513 97,308 According to the U.S. Census Bureau, the City of Bozeman’s estimated population increased from 37,280 as of April 1, 2010 to 38,695 as of July 1, 2012 – an estimated increase of 1,415
people or 3.8%. The City’s actual population was determined to be 37,280 as of April 1, 2010
during the 2010 Census which was an actual increase of 9,771 people or 36%. The City of
Bozeman population estimate for 2013 is 38,695. Gallatin County’s estimated population was 93,785 in 2013 and is projected to be 95,470 in 2014.
In order to accommodate increasing population and business growth, new land for residential,
commercial and industrial development is annexed to the City. In 2010, the City was
approximately 12,318.93 acres (19.25 square miles) in size. The total amount of acreage annexed into the City for 2013 was 111.02 acres, which increased the total size of the City to 12,777.67 acres or roughly 19.96 square miles.
The city of Bozeman is characterized by a smaller average household size and a smaller portion
of families then Gallatin County as a whole. Bozeman has an average household size of 2.27 persons, while the average household size for Gallatin County is 2.49 persons. Bozeman also
exhibits a lower homeownership rate than the county as a whole, primarily due to the student
body of the University of Montana. The population of Bozeman is considerably younger than
Gallatin County as a whole in addition. The estimated median ages for Bozeman in Gallatin
County residents in 2000 were 30.5 years and 33 years respectively. The median age for Montana residents for this time period was just over 36 years.
Bozeman in Gallatin County have transformed over the past decade from a primarily agricultural
based community to a tourism related community. The attraction to Bozeman and Gallatin
County are due to the high quality of life. Overall crime rates are low and there are many cultural experiences and outdoor activities such as snow skiing, fly-fishing, hiking trails, and
other outdoor pursuits.
Economic Factors:
Bozeman is a slightly differing economy than many parts of the state of Montana. One primary
difference relates to the fact there are fewer large employers in this market. The largest primary
employer in Bozeman is Montana State University. The economy of Bozeman in Gallatin County is
broad-based and diverse with over 5300 establishments that employ over 42,000 persons.
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Major sectors of the economy include construction, government, manufacturing, technology,
retail service and agricultural all which play significant roles. Montana State University employs
over 3,500 permanent faculty and staff as well as graduate teaching and research assistance. Montana State University also employs over 2,000 students in part-time jobs. Overall the
student body of Montana State University has a significant effect on the local economy. Other
large employers consist of the state of Montana, Gallatin County, the city of Bozeman, Bozeman
Deaconess Hospital, right now technologies and Walmart. As the county’s employment base
continues to diversify the economic health will be buffered from a downturn in any of the county’s key industries.
After subdivision activity in and near Bozeman peaked in the early 1980's, activity slowed to the
point in 1986 where one major subdivision was submitted for approval and was turned down,
primarily due to the lack of present need at that time, and none were submitted for approval in 1987. Over the last 10 years, subdivision activity had resumed with vigor until the beginning of
2008 when construction activity declined and continued to decrease at an accelerated rate. That
has changed and there is significant construction activity in the Bozeman market again.
The city of Bozeman has developed a series of significant projects including the completion of a downtown parking garage, city of Bozeman Library and construction of the Gallatin County
Detention Center. Montana State University has also seen significant expansion with a remodel
of the ball stadium, addition of the Molecular Biology Center, renovations to the health and
physical education center, addition of the Black Box Theater and a renovation of Gaines Hall.
Governmental Factors:
The City of Bozeman is governed by a Commission-Manager system with most decision making
coming from the elected City Commissioners. Fire and police protection are rated as quite adequate for a town the size of Bozeman. The rural areas near Bozeman are served by rural volunteer fire districts with the Gallatin County Sheriff's Office handling the police duties.
Sanitation services are provided by the City through private contractors; the capacity to handle
demand is considered adequate at present.
Gallatin Field, the local airport, is serviced by Delta, Northwest Airlines, Skywest and Horizon Airlines. Gallatin Field is located between Bozeman and Belgrade. Montana Rail Link provides
rail freight service. Motor freight carriers include Garrett Freight Lines, Bozeman-Butte delivery
service, Northern Pacific Transport, Salt Creek Freightways, and United Parcel Service.
Greyhound Bus services Bozeman with numerous daily stops; Karst Stage Company offers charter buses and City Taxi provides local limousine and taxi service. The Yellowstone Park Company operates bus service between Bozeman and West Yellowstone, and Clark Fork Valley
Bus Lines operates daily service between Bozeman and Helena.
Medical facilities consist of a new Deaconess Hospital with 72 beds. The area is well serviced by the medical profession with almost all types of doctors noted. There are also two nursing homes in Bozeman.
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Bozeman and the area surrounding it provide excellent recreational opportunities. Within the city
limits of Bozeman are numerous city parks and playgrounds. The surrounding areas provide
hunting opportunities in nearby mountains while there is world-class fishing in surrounding rivers and streams. Other recreational pursuits include snow skiing at Bridger Bowl and Big Sky.
Bozeman and the Gallatin Valley newspaper needs are served by the Bozeman Daily Chronicle.
Bozeman is served by community cable TV. Six radio stations operate in the Gallatin Valley
providing adequate radio communication facilities.
The Bozeman school system includes five elementary schools, a city wide middle school, a city
wide junior high school and a senior high school. East of Bozeman is the Mount Ellis Academy,
a grade and high school operated by the Seventh Day Adventists. Montana State University is
located in Bozeman with a current enrollment of just over 10,000 students. Very recently, a $55 million bond was approved by the voters to build a new junior high school and remodel the
existing high school and add playing fields, etc.
Environmental Factors:
The Gallatin Valley is located at an elevation of 4,793 feet with a climate that is mild and dry.
The annual mean temperature is 43 degrees F. The February average maximum temperature is
36 degrees F., and the July average maximum temperature is 83 degrees F. The average annual
precipitation is 18.6 inches. The average annual snowfall is 83 inches.
Bozeman’s climate reflects its Mountain Valley location. Bozeman, Gallatin County and the
entire state of Montana have 4 seasons. Summers are generally pleasant and characterized by
warm to hot days, cool nights with an abundance of sunshine. Humid conditions are infrequent.
Bozeman is located in southwest Montana on US interstate highway 90. Access to the south toward Yellowstone National Park and Salt Lake City is via US Highway 191. Interstate highway
systems, state of Montana and Gallatin County maintain roadways provide access throughout the
region. Commercial air, truck and rail transportation are also considered adequate.
Conclusions:
There would appear to be a long term need for a variety of service facilities, both for the local
populace and for the traveling public. Tourism plays a significant role in the local economy with
Yellowstone Park providing substantial traffic. The location of Bozeman on I-90 and between Yellowstone Park and Glacier National Park produces strong motivation for service related businesses to locate here.
The real estate market has been improving over the past year to three years. There has been an
increase in subdivision activity and some of the development land sales are under construction. The predictions for the next year are sustained growth per Dr. Paul Polzin of the University of Montana BBER. The amount of commercial real estate activity has been less well pronounced.
Bozeman is regarded as a very popular small city. Up until the recession, the residential growth
had been quite strong. As is typical of real estate cycles, the commercial or non-residential
market has been in full growth because of the residential demand factors.
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NEIGHBORHOOD MAP
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NEIGHBORHOOD DATA & TRENDS
The neighborhood is a section along Bridger Creek Road that is located east of the town of Bozeman. The area is comprised of commercial developments closer to Bozeman with the
subject’s immediate area being residential in nature. That area west of the intersection of Story
Mill Road and Bridger Canyon Road has more commercial developments, with the area east of
Story Mill Road being residential in nature. Areas surrounding the subject are generally
undeveloped or have single family residential uses on larger lots. There is some subdivision activity located west of the subject but in closer proximity to Bozeman.
The topography of the area is valley bottom with the creek flowing in an east/west direction with
hillsides to the north and south of that creek. The lands along Bridger Canyon Road and Bridger
Creek are more level to slightly undulating. Trends are the same in this area as found for the overall Bozeman area. There is less sales volume in the area but prices are also significantly
higher especially for the larger lots than the general market conditions found closer to Bozeman.
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PLAT MAP
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SUBJECT PHOTOGRAPHS
ABOVE: View from in front of the subject single-family residence looking in a
southwesterly direction. Photograph taken by Nicholas J. Hogan, MAI on
October 21, 2015. (204)
BELOW: View from the intersection of Brass Lantern Court and Bridger Canyon
Road looking in a north easterly direction. Photograph taken by Nicholas J. Hogan, MAI on October 21, 2015. (855)
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ABOVE: View looking northerly along Brass Lantern Court. The subject property
is to the right of the photograph. Photograph taken by Nicholas J. Hogan,
MAI on October 21, 2015. (858)
BELOW: View from near the south easterly corner of the subject looking in a
northwesterly direction. Photograph taken by Nicholas J. Hogan, MAI on
October 21, 2015. (454)
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ABOVE: View from the intersection of Brass Lantern Court and Bridger Canyon Road looking in a westerly direction. The subject property is located
behind the photographer. Photograph taken by Nicholas J. Hogan, MAI
on October 21, 2015. (526)
BELOW: View near the south center part of the subject property looking in a
northerly direction. Photograph taken by Nicholas J. Hogan, MAI on
October 21, 2015. (223)
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PROPERTY DESCRIPTION
Land Size: :The subject property consists of a 40 acre site located at the northeasterly corner of Brass Lantern
Court and Bridger Canyon Road.
Shape/Configuration :Site is irregular in shape & configuration.
Street Improvements :The property has frontage and exposure to Bridger
Canyon Road that sets the southerly boundary of the
subject property. Brass Lantern Court sets the
westerly boundary of the subject property. Both
streets are asphalt improved roadways. Frontage/Access :The property has frontage to both Bridger Canyon
Road and Brass Lantern Court. The subject
physical access is from Brass Lantern Court. Topography/Terrain :The land is predominately sloping from north to
south. The subject elevation near the corner of
Brass Lantern Lane and Bridger Canyon Road is
roughly 4,920 feet above sea level. Closer to the
northerly end of the site the property is somewhere between 5,060 feet above sea level and 5,190 feet
above sea level at the north easterly corner.
Generally the majority of the property is open and
gently sloping. Soil Conditions :Not independently investigated nor is an opinion
rendered on suitability for development, load
bearing qualities or production. I have assumed no
soil problems exist. Flood Hazard :The subject is located within panel 30031C0828,
effective September 2, 2011. The property is
located within Zone X which is an area of minimal
flooding. Hazardous Substances :None observed.
Utilities
Water ...................................................................................................... Well Sewer....................................................................................................Septic Natural Gas ................................................................................ NW Energy
Electrical .................................................................................... NW Energy
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Zoning: :The subject property is zoned AEDP10 which is an
agricultural exclusive district. The overall intent of
the regulation is to preserve agriculture as one of the primary occupational pursuits and an economic
endeavor in Bridger Canyon. A further intent is to
protect and preserve the existing rural character of
Bridger Canyon and to preserve existing developed
and undeveloped farmlands from unplanned residential, commercial and industrial development.
Easements/Encroachments: :None noted.
Water Rights: :There are no water rights associated with the subject property.
Mineral Rights: :An analysis of the mineral rights is outside the
scope of this analysis and is not included. Improvements: :There are structural improvements to the subject
property consisting of a single family residence and
outbuildings. These are not affected by the project
and are not included within the scope of the
analysis.
Use History: :The subject is a single family residence since
roughly 1994 according to current Montana
Department of revenue records. It’s unknown if there was a single-family residential development on the property prior to that.
Rental History: :There have been no rental agreements or rental
uses of the property.
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TAXES AND ASSESSMENTS
The subject’s 2015 taxes are shown at $6,220.48. That includes the single-family residence and the subjects underlying land. The total market value is $781,867 and the taxable value is
$10,794. First-half taxes are due December 4, 2015 and are $3,113.55. The 2nd half taxes are
due May 31, 2016 and our $3,106.93.
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HIGHEST AND BEST USE
The following definition of Highest and Best Use is taken from The Appraisal Institute, "The Dictionary of Real Estate Appraisal, Fifth Edition."
"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.
Alternately, the probable use of land or improved property - specific with respect to the
user and timing of the use - that is adequately supported and results in the highest
present value."
As taken from this same source, the definitions of highest and best use of land or a site as
though vacant and the definition of highest and best use of property as improved are
presented for clarity of discussion.
AS VACANT:
"Among all reasonable, alternative uses, the use that yields the highest present land
value, after payments are made for labor, capital, and coordination. The use of a
property based on the assumption that the parcel of land is vacant or can be made vacant
by demolishing any improvements."
AS IMPROVED:
"The use that should be made of a property as it exists. An existing improvement should
be renovated or retained as is so long as it continues to contribute to the total market
value of the property, or until the return from a new improvement would more than offset
the cost of demolishing the existing building and constructing a new one."
Implied is that the determination of Highest and Best Use results from the appraiser’s interpretation of market evidence; e.g. that the use determined from analysis represents an interpretative opinion and not a fact to be found. In appraisal practice, the concept of Highest
and Best Use requires the appraiser give consideration to any and all uses to which the property
was capable of being adapted. Consideration must be given these uses, recognizing the
limitations imposed first by governmental regulations such as zoning ordinances, building codes and health standards and secondly, by the attitudes of the typical investors in real property of this type in the area encompassing the subject property.
The land value is based on a premise of the Highest and Best Use of the property as though
vacant. There are four tests which are considered in developing an opinion as to the Highest and Best Use of the property. These four tests include an examination of uses that are physically possible, legally permissible, financially feasible and maximally productive.
There are five general uses which are considered. These include residential, commercial,
industrial, agricultural and recreational.
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Within the Montana marketplace we have found it more prudent to begin the analysis with
legally possible since this helps refine the analysis quite quickly.
Legally Permissible:
The subject property is zoned AEDP10 which is an agricultural district. It is the intent of this
Regulation to preserve agriculture as one of the primary occupational pursuits and an economic
endeavor in Bridger Canyon. It is further the intent of this District to protect and preserve the
existing rural character of Bridger Canyon and to preserve existing developed and undeveloped
farm lands from unplanned residential, commercial and industrial development. The purpose of
the Agricultural Exclusive District is, when applied to particular land, to encourage the following
land use: a. the cultivation of ground, including the preparation of soil, planting or seeding and
raising and harvesting of crops; b. the raising, feeding and managing of livestock, poultry and
other animals; c. incidental uses which are customarily and necessarily related to and included
within an agricultural pursuit; and, d. incidental unrelated uses which are necessary to protect
and promote the health, safety, welfare and convenience of rural residential citizens.
6.2 Uses Allowed as a Matter of Right. The cultivation of ground, including the preparation of
soil, planting or seeding and the raising and harvesting of trees, timber, fruits, vegetables,
flowers, grains and other crops. The raising, feeding, managing and breeding of livestock,
poultry, fish, birds and other animals; the excavation of earth and the drilling of wells,
exclusively for agricultural and domestic uses; signs warning against trespass, shooting and
hunting on premises, without limitation as to number or size. Signs in accordance with Section
16. One single-family detached dwelling on each 40-acre parcel. Barns, corrals and other out
buildings and structures accessory to the foregoing uses. The sale on the premises of products
produced thereon. The packing, storing and processing of produce grown on the land, together
with accessory buildings and structures required therefore. Non-agricultural, home occupations
and hobbies when conducted within buildings and structures, the principle use of which is one of
the foregoing uses. Domestic Wireless Equipment.
6.3 Uses Permitted After Securing Approval of a Conditional Use Permit. Stands and other
facilities for the purpose of selling products grown on the land, together with accessory picnic
facilities and similar accommodations for the convenience of patrons; noncommercial airstrips
for the use of aircraft used for agricultural purposes, together with accessory buildings and
structure required therefore. Residential buildings, including mobile homes, to house persons
and their families who labor, either continuously or seasonally, on the same farm, ranch, or land
unit on which such buildings are situated (40- acre minimum does not apply). Commercial feed
lots; commercial chicken houses, commercial pig houses; public and private schools for the
academic education of children below the seventh grade level; the development and processing
of natural resources in BRIDGER CANYON ZONING REGULATION 17 accordance with
Appendix A, Natural Resources Conditional Use Permits; guest houses, commercial snowmobile
facilities, guest ranches; accessory buildings and structures the principle use of which is the
pursuit of non-agricultural, home occupations and hobbies; bed and breakfast inns; the
operation of private hunting and fishing clubs; caretaker's residences; Personal Wireless Service
Facilities, subject to Section 17; and electric transmission lines.
6.4 Similar Uses: Uses which in the opinion of the Zoning Commission are similar to those listed
In 6.2 and 6.3 above may be permitted therein.
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Essentially, several broad use categories can be eliminated as a result of the zoning issue. The
intent of the zoning is not to promote heavy industrial use within this zone. The same is true of
recreational use given that the property has no attributes that would lead toward specific recreational amenities. Therefore, the consideration of open space or parkland is not requisite or
probable. There are no influences that would imply a highest and best use for recreational
development. The same hold true for a commercial development. Any level of commercial use
is contrary to the zoning and has no demand in this neighborhood.
Under the terms and conditions of the Brass Lantern PUD there is a 20 acre minimum size.
Therefore the subject property could only be subdivided into 20 acre tracts less than the existing
zoning.
Physically Possible:
The subject represents a gross site area that has no deductions for right-of-way easements, etc.
with no floodplain areas associated. The subject property is irregular in shape and has frontage
to Bridger Canyon Road on the southerly end of the property as well as Brass Lantern Court on
the westerly side of the property. Utilities availability has shown no physical limitations whereas the site has full and complete access to electricity, natural gas, telephone service and private
garbage collection. Private sewer and water are typical for the subject neighborhood.
The terrain is generally sloping which is not a significant concern. This does create a view shed
looking to the south southwest and west. The site is irregular in shape but this does not lead to a significant limitation to use or development. Based on this discussion, the subject property has
no physical characteristics that would limit the type of agricultural or residential uses possible for
the site.
Financially Feasible/Maximally Productive:
The subject property would have an obvious implication for highest and best use correlated to
the legal permissible and physically possible expectations. This subject zoning is what would be
considered a rural residential type use, however the actual intent is primarily to preserve agriculture as one of the primary occupational pursuits. The zoning does allow for 10 acre tracts implying that there is a commonality between a single-family residential use and an agricultural
use. Ten acre tracts are typically insufficient for a strict and primary agricultural use. Basically
it would appear the intent of the zoning is for some level of agricultural use with a single-family
residential utility in conjunction. There current zoning and land use plans have directed the use of the property toward a residential/agricultural use.
Highest and Best Use – As Improved:
The subject property is currently developed with a single family residence. This is a legally permissible use that is in compliance with the current zoning. There is the potential for subdivision into four, ten acre lots. However, most properties in the subject’s immediate area
exceed 10 acres in size.
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THE APPRAISAL PROCESS
The appraisal process is an orderly procedure wherein the problem is defined, the work necessary to solve the problem is planned, and the data involved is acquired, classified, analyzed
and interpreted into an estimate of value.
There are three traditional approaches utilized by the appraisal professional which render a
preliminary indication of value. They are generally referred to as the Cost Approach, the Income Approach and the Sales Comparison Approach (oftentimes referred to as the Market Data
Approach).
The Cost Approach is an estimation of the value of the land, as if vacant, by market comparisons,
and then the depreciated or contributory value of the improvements is added. The Income Capitalization Approach produces a value indication by capitalizing the net income or earnings
power of the property by a rate reflected by market transactions or behaviors. The Sales
Comparison Approach is a technique that produces an indication of value by a direct comparison
of similar property types that have recently sold to the subject property; appropriate adjustments
made when and where necessary.
The three approaches to value do not necessarily apply to all types of property as the appraiser
must decide whether a particular approach is applicable in each instance. The key to this
decision is whether or not the approach is practical as a yardstick of market performance or
merely a theoretical application. These observations are particularly pertinent in the appraisal of properties in transition to a higher and better use as well as special use properties where value-in-
use is more applicable than market value.
Given the analysis only includes the subjects underlying land, only the sales comparison approach is deemed necessary.
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SALES COMPARISON APPROACH
A definition of this approach taken from the "DICTIONARY OF REAL ESTATE APPRAISAL, Fifth Edition" published by The Appraisal Institute has shown the following:
Sales Comparison Approach. The process of deriving a value indication for the
subject property by comparing market information for similar properties with the
property being appraised, identifying appropriate units of comparison, and making
qualitative comparisons with or quantitative adjustments to the sales prices (or unit
prices, as appropriate) of the comparable properties based on relevant, market-derived
elements of comparison.
Under standard application of this approach, generally the comparable sales are reviewed in terms of physical similarities or dissimilarities, market condition differences, terms of sale,
motivation factors involved, etc. When sufficient data is available, the approach takes on added
dimension or credence. When there are very few comparable sales with only a relative degree of
similarity, the approach is considered to be less applicable and therefore less reliable as an
indication of value for the subject property.
As noted in the Thirteenth Edition of "The Appraisal of Real Estate" published by The Appraisal
Institute dated 2008, the following is the identified systematic procedure employed within this
technique:
"1. Research the competitive market for information on properties that are similar to
the subject property and that have recently sold, are listed for sale, or are under
contract. Consider the characteristics of the properties such as property type, date
of sale, size, physical condition, location, and land use constraints. The goal is to
find a set of comparable sales as similar as possible to the subject property to
ensure they reflect the actions of similar buyers. Market analysis and highest and
best use analysis set the stage for the selection of appropriate comparable sales.
2 Verify the information by confirming that the data obtained is factually accurate
and that the transactions reflect arm's-length market considerations. Verification
should elicit additional information about the property and the market so that
comparisons are credible.
3 Select the most relevant units of comparison in the market (e.g., price per acre,
price per square foot, price per front foot) and develop a comparative analysis for
each unit. The appraiser’s goal is to define and identify a unit of comparison that
explains market behavior.
4 Look for differences between the comparable sale properties and the subject
property using all appropriate elements of comparison. Then adjust the price of
each sale property, reflecting how it differs, to equate it to the subject property or
eliminate that property as a comparable. This step typically involves using the
most similar sale properties and then adjusting for any remaining differences. If a
transaction does not reflect the actions of a buyer who would also be attracted to
the subject property, the appraiser should be concerned about comparability.
5 Reconcile the various value indications produced from the analysis of
comparables to a value bracket and then to a single value indication.
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In terms of direct comparison, there are ten basic elements that should be factored into the
technique. These consist of:
1. Real property rights conveyed
2. Financing terms (i.e., cash equivalency)
3. Conditions of sale (i.e. motivation)
4. Expenditures made immediately after purchase
5. Market conditions (i.e., time)
6. Location
7. Physical characteristics (e.g., size, soils, access, construction quality, condition)
8. Economic characteristics (e.g., expense ratios, lease provisions, management,
tenant mix)
9. Use (e.g., zoning, water and riparian rights, environmental, building codes, flood
zones)
10. Non-realty components of value (e.g., business value, chattel, franchises,
trademarks)
The sales comparison approach is reflective of the basic principles of Anticipation, Balance,
Change, Competition, Contribution, Externalities, Opportunity Costs, Substitution, and
Supply/Demand. The essence of comparison is direct similarity and that focuses on similarity of
highest and best use and then physical characteristics.
Sale No.Location Date Price Acres Indication
1 530 Bridger Canyon Spur Road 7/29/2015 $1,150,000 38.809 $29,632
2 Greenridge Drive 3/20/2015 $710,000 27.310 $25,998
3 Laughing Horse Lane 12/24/2014 $725,000 40.349 $17,968
4 East of Grandview Heights; end of Gold Dust Tr. 8/4/2014 $240,000 58.785 $4,083
5 Bridger Hills Drive 6/14/2013 $215,000 15.162 $14,180
Listings
6 609 Brass Lantern Current $440,000 20.000 $22,000
7 5100 Maiden Rock Road Current $1,200,000 75.000 $16,000 Property Rights Appraised:
This is actually the first adjustment required in any sale-to-subject comparison. All sales shown
represent the fee simple purchase of the underlying land. Therefore, no adjustment is required for
property right variations in this appraisal.
Terms of Sale:
The sales were cash transactions or cash equivalent where a large cash down payment and an
assumption of an underlying contract were part of the analysis. We have not adjusted for terms of sale as all of the transactions were reflective of cash or its equivalent price. In simple terms, we
did not find any sale that was influenced by terms offered at the sales price.
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Conditions of Sale:
In this instance, we refer to a situation where the seller may have been unduly influenced to sell the property such as a lender in an OREO position. The sales shown represent open, market
transactions where they are referred to as "arms-length". Neither the seller nor the buyer were
under any undue influence to sell or purchase.
Expenditures Immediately After Sale:
None of the sales required expenditures immediately after sale. Therefore there is no requirement
for an adjustment under this category.
Market Conditions:
For the most part, the sales are fairly recent with the oldest one being in June 2013. There are
also only 5 sales so there is simply insufficient information to derive a market conditions
adjustment. There are too many other physical factors at play to simply extract a market
conditions adjustment. The two listings are shown at $16,000 per acre for a 75 acre tract and $22,000 per acre for a 20 acre tract. Listing No. 6 is a 20 acre tract shown at $22,000 per acre.
Comparing that to Sale No. 2, at $25,998 per acre shows some level of consistency between an
early 2015 sale and the current market. Overall, there is reasonable evidence to submit there is
no market conditions adjustment especially for the emphasized sales data.
Access/Frontage:
For the most part, the subject properties compare well to the individual sales. Where there is a
significant difference it will be discussed in the final analysis. There is insufficient information to derive an actual adjustment for access and/or frontage.
Location:
The sales data was taken from areas directly surrounding the subject properties and located east of the subject. The subject has a closer proximity to the city limits of Bozeman and could be considered superior to the majority of the sales for location. Sale No. 1, Sale No. 2 and Sale No.
3 are located just south and southeast of the intersection of Jackson Creek Road and Bridger
Canyon Road. This area is slightly farther removed from the subject’s immediate neighborhood
and the city limits of Bozeman. However there are offsetting factors such as seclusion that make these a mostly offsetting characteristic. Therefore I have not adjusted for location.
Size:
The subject property consists of a 40 acre tract. The sales shown range in size from a low of 15.162 acres to an upper end of 58.75 acres. The issue of size is taken into consideration in the final analysis. I was simply unable to derive a size adjustment looking at the 5 sales and 2 listings.
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However, Listing No. 6 and Listing No. 7 likely do show some insight into size. Listing No. 6 is
a 20 acre tract located just to the northwest of the subject. Listing No. 7 is located just southeast
of the subject property across Bridger Canyon Road. Listing No. 7 has some creek influence where Listing No. 6 has none. Listing No. 6 is shown at a price of $22,000 per acre for a 20 acre
tract. Listing No. 7 is shown at $16,000 per acre for a 75 acre tract. It would appear the majority
of the difference in these price levels is due to size but there are other differences such as
superior view sheds for Listing No. 6 and the superior creek frontage for Listing No. 7.
Shape:
The subject shape is regular but nothing that would impact use or value. The same holds true for
the sales information. Therefore no adjustment is required under this category.
Topography:
The subject property is a sloping tract but nothing that would affect an agricultural or single
family residential use. In terms of the sales, Sale No. 4 is a very steep tract that has some issues
with developability. That is a 58.75 acre tract that sold for $4,083 per acre and is not directly comparable to the subject. Sale No. 5 is a smaller tract located just east of the subject property.
This 15.162 acre tract sold for $14,180 per acre and is generally steeper. The building site is
located to the south easterly portion of this parcel with the remainder of the tract having a steeper
topography. Compare that sale with Sale No. 1, Sale No. 2 and Sale No. 3 with indications
ranging from $17,968 per acre to $29,632 per acre. Well there are size differences it would appear the majority of the difference in these price levels is due to the topography.
Simply the subject compares better to Sale No. 1, Sale No. 2 and Sale No. 3 as well as Listing
No. 6 and Listing No. 7. Sale No. 4 and Sale No. 5 art not emphasized to the same degree. I’ve not shown an adjustment for those simply they show the low end of the range with Sale No. 4 simply not emphasized.
Utilities:
The subject and all sales have access to telephone, and electricity. This area of Bozeman consists of wells and septic systems as standard. Overall, the subject compares well to all of the
sales and listings. No adjustment under this category is necessary.
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Zoning:
Sale No.Location Zoning
1 530 Bridger Canyon Spur Road AEDP20
2 Greenridge Drive AEDP20
3 Laughing Horse Lane AEDP20
4 East of Grandview Heights; end of Gold Dust Tr. Unzoned
5 Bridger Hills Drive AEDP20
Listings
6 609 Brass Lantern AEDP10
7 5100 Maiden Rock Road AS
Subject AEDP10
For the most part, the subject and the sales as well as the listings have similar zoning’s. Sale No.
1, Sale No. 2, Sale No. 3, Sale No. 5 and Listing No. 6 all have similar zoning designations.
AEDP20 allows for 20 acre tracts as a minimum size, where AEDP10 allows for 10 acre tracts as a minimum size. The subject property PUD only allows for 20 acre tracts less intense than the current zoning. Therefore the subject under the PUD would allow for subdivision reasonably
similar to the comparable sales. There is fairly minimal subdivision pressure on the subject and
each of the individual sales and listings. Therefore, while there is a slightly higher density for
the subject the impact on overall price is likely fairly minimal. Moreover the Brass Lantern PUD has a density reasonably similar to the majority of the sales. I’ve not adjusted for the slight differences in zoning, sale to subject.
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Reconciliation:
Sale No. 1:
This property is located at the south easterly corner of Bridger Canyon Spur Road and Cloud 9.
The property represents a mixture of mature trees and open areas as well as 3 small ponds. The
property has a slightly rolling characteristic with roughly 100 feet in elevation. This site was listed for $1,389,500 and sold for $1,150,000. This is a 38.809 acre tract that produced an indication of
$29,632 per acre. Overall, this sale compares well to the subject in terms of overall size, usability,
view sheds etc. The subject property has one small pond where this property has 3 small ponds.
In the final analysis, this property compares very well to the subject and is emphasized.
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Sale No. 2:
This property is located on Green Ridge Drive just off of Jackson Creek Road, southeast of the intersection of Jackson Creek Road and Bridger Creek Drive. Of the sales utilized within this
report, this sale is located farthest removed from the city of Bozeman. This is a 27.31 acre site
with good mountain views. This property also has a small pond on site and has an existing barn
with none to minimal value. This property was listed for $795,000 and sold for $710,000. That
produces an indication of $25,998 per acre. With the exception of the slightly removed proximity from Bozeman, this sale compares very well to the subject and is emphasized.
Considering the location as a slightly inferior factor the subject could be slightly higher.
Motivation for purchase of the site was for a fairly significant single-family residence with a cost
in excess of $4,000,000.
Sale No. 3: This sale is located on Laughing Horse Lane, just off of Jackson Creek Road. This is a 40.349
acre site that has good views, a pond and many springs. The building site is located on an open
meadow with a mixture of trees to the southwesterly corner of the site. This property was listed
for $850,000 with the final selling price shown at $725,000. That produces an indication of $17,968 per acre.
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Sale No. 4:
This property is located just north west of the subject and consists of a 58.785 acre tract that was
unzoned at the time of the sale. This property was listed for $299,000 and sold for $240,000. That produces an indication of $4,083 per acre. This property is significantly steeper than the subject but had several building sites available. Overall this property is not directly similar to the
subject and is not emphasized in the final analysis.
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Sale No. 5:
This sale is located northeast of the subject property on Bridger Hills Drive. This property was listed for $245,000 and sold for $215,000. It is a 15.162 acre site producing an indication of
$14,180 per acre. This property is steeper than the subject but had one building site along the
south easterly corner of the tract. It does have a common boundary with 10 acres of open space.
However the majority of this tract is steeper. Overall this is a low-end figure for the subject.
The subject would likely be no less than $14,000 per acre based on this sale.
Listing No. 6:
This property is a 10 acre listing located in close proximity to the subject. Access to this
property is just off of Brass Lantern Court and located just northeast of the subject. This
property is a slightly sloping tract but very usable, overall. This 20 acre site is listed for $440,000 or $22,000 per acre. This property is located in close proximity to the subject property, however, the subject property has an overall superior quality. The subject property would likely
be higher than $22,000 per acre shown by this listing.
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Listing No. 7:
This final property is located directly to the east of the subject property on the south side of
Bridger Canyon Road. This property consists of a total of 75 acres, 73 acres located to the south
side of Bridger Canyon Road and 2 acres located to the northerly side of Bridger Canyon Road. This property is listed for $1,200,000 or $16,000 per acre. There are structural improvements to the site, but the listing agent indicated those have very little to no value. This property does have
frontage to Bridger Creek. The far northerly part of the site represents open meadows while the
majority of the tract is mature trees situated on a hillside.
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Adjustment Grid:
Sale No. 12367
Size 38.81 27.31 40.35 20.00 75.00
Unit Price 29,632$ 25,998$ 17,968$ 22,000$ 16,000$
Date of Sale Jul-15 Mar-15 Dec-14 Current Current
Current Date Oct-15 Oct-15 Oct-15 Oct-15 Oct-15
Time Lapse (months)3 7 10 0 0
Adjustments:
Property Rights $0.00 $0.00 $0.00 $0.00 $0.00
Financing Terms $0.00 $0.00 $0.00 $0.00 $0.00
Conditions of Sale $0.00 $0.00 $0.00 $0.00 $0.00
Market Conditions $0.00 $0.00 $0.00 $0.00 $0.00
Adjusted Base Unit Price $29,632 $25,998 $17,968 $22,000 $16,000
Physical Conditions:
Access $0.00 $0.00 $0.00 $0.00 $0.00
Location $0.00 $0.00 $0.00 $0.00 $0.00
Size $0.00 $0.00 $0.00 $0.00 $0.00
Shape $0.00 $0.00 $0.00 $0.00 $0.00
Topography $0.00 $0.00 $0.00 $0.00 $0.00
Utilities $0.00 $0.00 $0.00 $0.00 $0.00
Zoning $0.00 $0.00 $0.00 $0.00 $0.00
Adjusted Unit Price $29,632 $25,998 $17,968 $22,000 $16,000
Sales Listings
The 3 emphasized sales compare fairly well to the subject in terms of overall comparability.
These 3 indications range from a low of $17,968 per acre to an upper end of $29,632 per acre.
There is a 20 acre listing in close proximity to the subject at $22,000 per acre in a 75 acre listing just east of the subject at $16,000 per acre.
Sale No. 1 is a reasonable comparison to the subject property. The site size is similar and each
has a mixture of open tillable areas as well as some mature trees. This 38.81 acre tract sold for $29,632 per acre. It is also the most recent sale uncovered closing in July 2015.
Sale No. 2 is another reasonable comparison for the subject, albeit a slightly smaller property.
This property also has a mixture of open areas, mature trees and a small pond. This is another
2015 sale closing in March 2015 at $25,998 per acre. The last emphasized sale is Sale No. 3. This property also compares well to the subject with a
mixture of open areas, mature trees and a small pond. This 40.349 acre tract sold for $17,968 per
acre but there may have been issues with the financial institution as the seller.
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The subject property is superior to Listing No. 6 even though it is located in close proximity to
the subject. The subject property is located closer to the base of the mountain and has some
mature trees as well as a ravine. Listing No. 6 is a fairly open parcel with no mature tree cover.
In the final analysis I’ve emphasized Sale No. 1, Sale No. 2, and Listing No. 6. Those 3 produce
a range of indications from $22,000 per acre to an upper end of $29,632 per acre. My final
conclusion is the subject would be toward the upper end of that range with the final conclusion
shown at $29,000 per acre.
Before Category
Subject Size 40
SF 1,742,400
Per Acre $29,000.00
Total Value, Before $1,160,000
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EASEMENT MAP
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Scope of the Project – Subject Site:
The map on the previous page outlines the specific effects to the subject site. The intent of the overall project is to extend a path from the intersection of Story Mill Road and Bridger Drive on
the west to the M parking lot just east of the intersection of Bridger Canyon Road and Fish
Hatchery Road. The easement area impacting the subject consists of a total of .904 acres located
along the southerly side of the subject property. Value of the Easement:
Tony Becken-Gaddo provided a copy of a sample public use easement similar to the one that will
be imposed on the subject property. Given the conditions of the easement is my opinion the
property owner will lose the vast majority of their rights under the terms of this easement. I’ve shown a total loss in value of 95%. The following outlines the value of the easement area.
Category Amount
Easement 0.904
Per Acre $29,000
Indicated Value 95%
Total Value of the Easement $24,905 Value of the Remainder, Before:
The value of the remainder, before, is the value of the larger parcel, before, less the value of the
easement as part of the whole, before. The calculations are shown below.
Total Value Before $1,160,000
Total Value of the Easement $24,905
Value of the Remainder, Before $1,135,095
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ABOVE: View from the intersection of Brass Lantern Court and Bridger Canyon Road. This photograph was taken looking in a westerly direction. The
stakes show the northern boundary of the proposed right away.
Photograph taken by Nicholas J. Hogan, MAI on October 21, 2015. (805)
BELOW: View from the intersection of Brass Lantern Court and Bridger Canyon
Road looking in an easterly direction. The stakes show the northerly
boundary of the proposed right away easement. Photograph taken by
Nicholas J. Hogan, MAI on October 21, 2015. (836)
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ABOVE: View from the subject’s south easterly corner looking in a westerly
direction. The stake to the center of the photograph shows the northerly
boundary of the proposed right away easement. Photograph taken by
Nicholas J. Hogan, MAI on October 21, 2015. (449)
BELOW: View from near the subject’s southwesterly corner looking in an easterly
direction. The stakes show the northerly boundary of the proposed right
away easement. Photograph taken by Nicholas J. Hogan, MAI on October 21, 2015. (046)
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Identification of the Site, After:
The use of the subject site is the same in the after situation. This is a single family residential/agricultural property located in a desirable area of Bozeman. Other than the
imposition of the easement there is no difference before and after.
Site Description, After Imposition of the Easement:
There is no difference in the site area before and after. The site area will remain 40.0 acres but
there will be a new easement area as defined above. The property owner will lose the majority
of the property rights within the new easement area. After the project is complete the size,
access, topography and shape will remain the same. All physical components of the subject
property are the same with the exception of the imposition of the easement.
Highest and Best Use, After:
After acquisition, the subject site will contain 40.0 acres. There is no change to the legally
permissible, physically possible, financially feasible, or maximally productive characteristics of the subject property. Therefore based on my highest and best use analysis, before, is my opinion
is the highest and best use of the remainder, after, is unchanged.
Land Valuation, After: Land values are based on the sales comparables contained within the sales catalog. Since the
area of acquisition does not materially affect the highest and best use of the site, the analysis of
land value, after, is the same as the analysis of the land value, before.
After the project is completed 39,378 square feet will be encumbered with a right away easement. Given the use and specifications of the right away easement I’ve shown the property
owner to have a 5% portion of the property rights remaining in the easement area. The land
value, after is shown below.
Size, After 39.096
Per SF 29,000.00$
Easement Area 0.904
Per SF 29,000.00$
5%
Land Value, After 1,135,095$
Depreciation to Current Fair Market Value:
Depreciation to current fair market value is calculated by deducting the estimated market value of the property after imposition of the easement from the value of the remainder, before. The calculations are shown as follows. The below calculation shows there is no depreciation to the
current fair market value of the site by imposition of the easement.
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Value After Imposition 1,135,095$
Value of the Remainder, Before 1,135,095$
Depreciation to Current Market Value -$ Cost to Cure:
There are is one issue under a cost to cure category. There is a brick and block entry at the
corner of Brass Lantern Court and Bridger Canyon Road. This will be located within the right of way but Tony Backen-Gaddo indicated there will be no requirement for removal of that. Therefore, that has not been included in a cost to cure. There are issues with the fencing under a
cost to cure category. I looked at the Marshall Valuation Service as well as several local fencing
contractors in the Bozeman area.
Marshall Valuation Service Low Range High Range
Three rail split - 36" - 48" high 10.60$ 15.50$
Barbed wire four strands with wood posts 7.32$ 11.86$
Quantity deductions
600 linear feet 5%
2,000 linear feet 10%
4,500 linear feet 15%
6,000 linear feet 20%
Liberty Fence Low Range High Range
Three rail split - 36" - 48" high 16.00$ 17.00$
Barbed wire four strands with wood posts 3.50$ 4.00$
Fence Pros Low Range High Range
Three rail split - 36" - 48" high 10.00$ 14.00$
Barbed wire four strands with wood posts 5.00$ 8.00$
Plus bracing $150 each brace The subject property has 910 linear feet of 4 strand barbed wire fencing that is impacted by the
project. This four wire strand fencing has wood posts.
Fencing type Linear Feet Per Foot RCN
Four strand barb wire 910 $5.00 $4,550
Total Cost to Cure $4,550
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Value of the Remainder, Cured:
There are no issues under this category.
Remaining Depreciation of the Fair Market Value:
There are no issues under this category.
Special Benefits:
There are no issues under this category.
Recapitulation of the Compensation:
Value of the Acquisition $0
Site Improvements $0
Construction Permit $0
Right of Way Easement $24,905
Depreciation of Fair Market Value $0
Cost To Cure $4,550
Total Compensation $29,455
Rounded $29,500
Lessee Interest
Not Applicable
Lessor Interest
Not Applicable
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VALUE ESTIMATE AND CERTIFICATION
The undersigned does hereby certify that (except as otherwise noted in this appraisal report):
1. I have made a personal, detailed inspection of the subject property. I have inspected all sales
and listing data consulted for a derivation of market value unless otherwise specifically identified as not being personally viewed. I have performed no services as an appraiser, or in
any other capacity regarding the property that is the subject of this report within a three year
period immediately preceding acceptance of this assignment.
2. I have no present or perspective 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.
3. 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.
4. I certify that the appraisal assignment was not based on a requested minimum valuation, a
specific valuation, or the approval of a loan. Employment of the appraiser was not conditioned
upon the appraisal producing a specific value or a value within a given range.
5. I certify that, to the best of my knowledge and belief the statements of fact contained in this
report are true and correct. Furthermore, no important facts have been knowingly withheld or overlooked.
6. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and is my personal, unbiased professional analyses, opinions, and
conclusions. The hypothetical conditions and/or extraordinary assumptions required of this
appraisal assignment are specifically noted within the Scope of Work are critical to the analyses and conclusions expressed herein. The reader is directed to fully understand the
conditions contained in that section of the report. 7. The reported analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform
Standards of Professional Appraisal Practice.
8. As of the date of this report, I, Nicholas J. Hogan, MAI, have completed the continuing
education program of the Appraisal Institute.
9. The use of this report is subject to the requirements of the Appraisal Institute relating to review
by its duly authorized representatives.
10. No one provided significant professional assistance to the person (s) signing this report.
11. The report contains necessary discussion concerning a reasonable marketing period for the subject property within the estimated value shown.
12. This report is in compliance with applicable regulations governing appraisal services and appraisal reporting requirements for the State of Montana.
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Based upon my investigations, studies and analyses, my opinion of the fee simple market value
of the subject site, before the imposition of the right of way or road easement, in its' "as is”
condition, considering the assumptions and limiting conditions discussed herein and as of October 21, 2015 to be:
ONE MILLION ONE HUNDRED SIXTY THOUSAND DOLLARS
($1,160,000.00)
Based upon my investigations, studies and analyses, my opinion of the fee simple market value
of the subject site, after imposition of the right of way or road easement, in its' "as is” condition,
considering the assumptions and limiting conditions discussed herein and as of October 21, 2015
to be:
ONE MILLION ONE HUNDRED THIRTY FIVE THOUSAND NINETY FIVE DOLLARS
($1,135,095.00)
Value of the Acquisition $0
Site Improvements $0
Construction Permit $0
Right of Way Easement $24,905
Depreciation of Fair Market Value $0
Cost To Cure $4,550
Total Compensation $29,455
Rounded $29,500
Lessee Interest
Not Applicable
Lessor Interest
Not Applicable
NICHOLAS J. HOGAN, MAI
MT General Certificate No. REA-REG-LIC-370
Expires 3/31/16
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ADDENDA
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ASSUMPTIONS AND LIMITING CONDITIONS
By this notice, all persons and firms reviewing, utilizing or relying on this report in any manner bind
themselves to accept these assumptions and limiting conditions. Do not use this report if you do not so
accept. These conditions are a part of the appraisal report, they are a preface to any certification,
definition, fact or analysis, and are intended to establish as a matter of record that the appraiser's functionis to provide a present market value indication for the subject property based upon the appraiser's
observations as to the subject property and the local and/or regional real estate market. This appraisal
report is an economic study to estimate value as defined in it. It is not an engineering, construction, legalor architectural study nor survey and expertise in these areas, among others, is not implied.
1. LIMIT OF LIABILITY:
The liability of the firm HALL - WIDDOSS AND COMPANY, P.C. and employees and affiliatedindependent contractors is limited to the CLIENT ONLY AND TO THE FEE ACTUALLY RECEIVED BYAPPRAISER (TOTAL PER APPRAISAL). FURTHER, THERE IS NO ACCOUNTABILITY,
OBLIGATION, OR LIABILITY to any third party. If this report is placed in the hands of anyone other thanthe client, the client shall make such assignment and related discussions. The Appraiser is in no way to be
responsible for any costs incurred to discover or correct any deficiencies of any type present in the property;physically, financially, and/or legally. In the case of limited partnerships or syndication offerings or stock
offerings in real estate, client agrees that in case of lawsuit (brought by lender, partner, or part owner in anyform of ownership, tenant, or any other party), any and all awards, settlements of any type in such suit,
regardless of outcome, client will hold Appraiser completely harmless in any such action.
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used for other than its intended use; the physical report(s) remain the property of HALL - WIDDOSS ANDCOMPANY, P.C. for the use of the client; the fee being for the analytical services only.
The Bylaws and Regulations of the Appraisal Institute require each Member and Candidate to control the use
and distribution of each appraisal report signed by such Member or Candidate except as hereinafter provided,
the client may distribute copies of this appraisal report in its entirety to such third parties as he may select;HOWEVER, selected portions of this appraisal report shall NOT be given to third parties without the prior
written consent of the signatories of this appraisal report. Neither all nor any part of this appraisal report shallbe disseminated to the general public by the use of advertising media, public relations, news, sales or other
media for public communication without the prior written consent of the Appraiser.
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This appraisal is to be used only in its entirety and no part is to be used without the whole report. All
conclusions and opinions concerning the analysis as set forth in the report were prepared by the Appraiser(s)whose signature(s) appear on the appraisal report, unless indicated as "Review Appraiser". No change of any
item in the report shall be made by anyone other than the Appraiser and/or officer of the firm. The Appraiserand firm shall have no responsibility if any such unauthorized change is made. The Appraiser may not
divulge the material (evaluation) contents of this report, analytical findings or conclusions, or give a copy ofthe report to anyone other than the client or his designee as specified in writing except as may be required by
the Appraisal Institute as they may request in confidence for ethics enforcement, or by a court of law or bodywith the power of subpoena. Sales information obtained during the course of this appraisal assignment is theAppraiser's and it can be used or exchanged without consent of the client.
4. TRADE SECRETS:
This appraisal was obtained from HALL - WIDDOSS AND COMPANY, P.C. and/or its individuals or
related independent contractors and consists of "trade secrets and commercial or financial information"which is privileged and confidential and exempted from disclosures under 5 U.S.C. 552 (b) (4). Notify the
Appraiser(s) signing report or a principal in Hall - Widdoss and Company, P.C. for any request to reproduce
this appraisal in whole or in part.
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5. INFORMATION USED:
No responsibility is assumed for accuracy of information furnished by work of or work by others, the client,
his designee, or public records. We are not liable for such information or the work of possible subcontractors.Be advised that some of the people associated with Hall - Widdoss & Company, P.C. and possibly signing
the report are independent contractors.
The comparable data relied upon in this report has been confirmed with one or more parties familiar with thetransaction or from affidavit or other source thought reasonable; all are considered appropriate for inclusion to the best
of our factual judgement and knowledge. An impractical and uneconomic expenditure of time would be required inattempting to furnish unimpeachable verification in all instances, particularly as to engineering and market-related
information. It is suggested that the client consider independent verification as a prerequisite to any transaction
involving sale, lease, or other significant commitment of funds for subject property.
6. TESTIMONY, CONSULTATION, COMPLETION OF CONTRACT FOR APPRAISAL SERVICE:
The contract for appraisal, consultation or analytical service is fulfilled, and the total fee is payable prior todelivery of the report. The Appraiser(s) or those assisting in preparation of the report will not be asked or
required to give testimony in court or hearing because of having made the appraisal, in full or in part, norengage in post appraisal consultation with client or third parties except under separate and specialarrangement and at additional fee. If testimony or deposition is required because of any subpoena, the client
shall be responsible for any additional time, fees, and charges regardless of issuing party.
7. EXHIBITS:
The sketches and maps in this report are included to assist the reader in visualizing the property and are notnecessarily to scale. Various photos, if any, are included for the same purpose as of the date of the photos.
Site plans are not surveys unless shown from separate surveyor.
8. LEGAL, ENGINEERING, FINANCIAL, STRUCTURAL, OR MECHANICAL NATURE HIDDEN
COMPONENTS, SOIL:
The Appraiser and/or firm has no responsibility for matters legal in character or nature, nor of anyarchitectural, structural, mechanical, or engineering nature. No opinion is rendered as to the title, which is
presumed to be good and merchantable. The property is appraised as if free and clear, unless otherwise statedin particular parts of the report.
The legal description is assumed to be correct as used in this report as furnished by the client, his designee, or asderived by the Appraiser. Please note that no advice is given regarding mechanical equipment or structural integrity or
adequacy nor soils and potential for settlement, drainage, and such (seek legal assistance), and such. The lender andowner should inspect the property before any disbursement of funds; further it is likely that the lender or owner may
wish to require mechanical or structural inspections by qualified and licensed contractor, civil or structural engineer,architect, or other expert.
The Appraiser has inspected as far as possible, by observation, the land and the improvements; however, it
was not possible to personally observe conditions beneath the soil or hidden structural, or other components.
We have not critically inspected mechanical components within the improvements and no representations aremade herein as to these matters unless specifically stated and considered in the report. The value estimate
considers there being no such conditions that would cause loss of value. The land or the soil of the are beingappraised appears firm, however, subsidence in the area is unknown. The Appraiser(s) do not warrant against
this condition or occurrence of problems arising from soil conditions.
The appraisal is based on there being no hidden, unapparent, or apparent conditions of the property site, subsoil, orstructures or toxic materials which would render it more or less valuable. The Appraiser and firm have noresponsibility for any such conditions or for any expertise or engineering to discover them. All mechanical components
are assumed to be in operable condition and status standard for properties of the subject type. Conditions of heating,cooling, ventilating, electrical and plumbing equipment is considered to be commensurate with the condition of the
balance of the improvements unless otherwise stated. No judgement may be made by us to adequacy of insulation, typeof insulation, or energy efficiency of the improvements or equipment which is assumed standard for subject age and
type.
If the Appraiser has not been supplied with a deficiency or hazard inspection, survey or occupancy permit,no responsibility or representation is assumed or made for any costs associated with obtaining same or for
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HALL - WIDDOSS & COMPANY, P.C.
any deficiencies discovered before or after they are obtained. No representation or warranties are madeconcerning obtaining the above mentioned items. The Appraiser has no responsibility for any costs or
consequences arising due to the need, or the lack of need for flood hazard insurance. An Agent for the
Federal Flood Insurance Program should be contacted to determine the actual need for Flood HazardInsurance.
9. LEGALITY OF USE:
The appraisal is based on the premise that, there is full compliance with all applicable federal, state and local
environmental regulations and laws unless otherwise stated in the report; further, that all applicable zoning,building, use regulations and restrictions of all types have been complied with unless otherwise stated in the
report; further, it is assumed that all required licenses, consents, permits, or other legislative or administrative
authority, local, state, federal and/or private entity or organization have been or can be obtained or renewedfor any use considered in the value estimate.
10. COMPONENT VALUES:
The distribution of the total valuation in this report between land and improvements applies only under the
existing program of utilization. The separate valuations for land and building must not be used in conjunctionwith any other appraisal and are invalid if so used.
11. AUXILIARY AND RELATED STUDIES:
No environmental or impact studies, special market study or analysis, highest and best use analysis study orfeasibility study has been requested or made unless otherwise specified in an agreement for services or in the
report.
12. DOLLAR VALUES, PURCHASING POWER:
The market value estimated, and the costs used, are as of the date of the estimate of value. All dollar amounts
are based on the purchasing power and price of dollar as of the date of value estimate.
13. INCLUSIONS:
Furnishings and equipment or personal property or business operations except as specifically indicated andtypically considered as part of real estate, have been disregarded with only the real estate being
considered in the value estimate unless otherwise stated. In some property types, business and real estate
interests and values are combined and essentially integrated to comprise the property in total, i.e.Hotels/Motels.
14. PROPOSED IMPROVEMENTS, CONDITIONED VALUE:
Improvements proposed, if any, on or off-site, as well as any repairs required are considered, for purposes of
this appraisal to be completed in good and workmanlike manner according to information submitted and/orconsidered by the Appraiser(s). In cases of proposed construction, the appraisal is subject to change uponinspection of property after construction is completed. This estimate of market value is as of the date shown
which is indicative of a hypothetical condition or an extraordinary assumption.
15. VALUE CHANGE, DYNAMIC MARKET, INFLUENCES, ALTERATION OF ESTIMATE BYAPPRAISER:
The estimated market value, which is defined in the report, is subject to change with market changes over
time; value is highly related to exposure, time, promotional effort, terms, motivation, and conditionssurrounding the offering. The value estimate considers the productivity and relative attractiveness of theproperty physically and economically in the marketplace. In cases of appraisals involving the capitalization
of income benefits, the estimate of market value or investment value or value in use is a reflection of suchbenefits and Appraiser(s) interpretation of income and yields and other factors derived from general and
specific client and market information. Such estimates are as of the date of the estimate of value; they arethus subject to change as the market and value is naturally dynamic. "The Opinion of Market Value" in the
appraisal report is not based in whole or in part upon the race, color or national origin of the present ownersor occupants of the properties in the vicinity of the property appraised. Appraisal report and value estimate
are subject to change if physical or legal entity or financing is different than that envisioned in the report.
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HALL - WIDDOSS & COMPANY, P.C.
16. MANAGEMENT OF THE PROPERTY:
It is assumed that the property which is the subject of this report will be under prudent and competent
ownership and management; neither inefficient nor super-efficient.
17. CONTINUOUS EDUCATION:
The Appraisal Institute conducts a voluntary and a mandatory program of continuing education for itsdesignated members depending upon date of membership. Those who meet the minimum standards of this program
are awarded periodic educational certification. Please refer to the Appraisers Certification for compliance with theAppraisal Institute’s requirements addressing continuing education.
18. FEE:
The fee for this appraisal or study is for the service rendered and not for the time spent on the physical reportor the physical report itself. Amount of payment of fee for services is not contingent on any result, approval
amount or other estimates or statements.
19. AUTHENTIC COPIES:
The authentic copies of this report are signed in blue ink and have embossed type seal. Any copy that does
not have the above is unauthorized and may have been altered.
20. INSULATION AND TOXIC MATERIALS:
Unless otherwise stated in this report, the existence of hazardous material, which may or may not be presenton the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such
materials on or in the property. The appraiser, however, is not qualified to detect such substances. The
presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardousmaterials may affect the value of the property. The value estimate is predicated on the assumption that there
is no such material on or in the property that would cause a loss in value. No responsibility is assumed forany 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.
21. REVIEW:
Unless otherwise noted herein, any named Review Appraiser from Hall - Widdoss and Company, P.C.
has reviewed the report as to general appropriateness of technique and format, and has agreed to acceptfull responsibility for the contents and conclusions noted therein.
22. CHANGES, MODIFICATIONS:
The Appraiser(s) and/or principals of Hall - Widdoss and Company, P.C., reserve the right to alter
statements, analyses, conclusions or any value estimate(s) in the appraisal if there becomes known to us factspertinent to the appraisal process which were unknown to us when the report was finished.
23. AFTER TAX ANALYSIS AND/OR VALUATION:
Any "after" tax income or investment analysis and resultant measures of return on investment are intended to
reflect only possible and general market considerations, whether as part of estimating value or estimatingpossible returns on investment at an assumed value or price paid; note that the Appraiser(s) does not claim
expertise in tax matters and advises client and any other using the appraisal to seek competent tax advice asthe Appraiser(s) is in no way to be considered a tax advisor or investment advisor.
24. ACCEPTANCE OF, AND/OR USE OF, THIS APPRAISAL REPORT BY CLIENT OR ANY THIRDPARTY CONSTITUTES ACCEPTANCE OF THE ABOVE CONDITIONS. APPRAISER
LIABILITY EXTEND ONLY TO STATED CLIENT, NOT TO SUBSEQUENT PARTIES OR USERSOF ANY TYPE, AND THE TOTAL LIABILITY OF APPRAISER AND FIRM IS LIMITED TO THEAMOUNT OF FEE RECEIVED BY HALL - WIDDOSS & COMPANY.
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Soil Map—Gallatin County Area, Montana, and Gallatin National Forest Area, Montana
Natural Resources
Conservation Service
Web Soil Survey
National Cooperative Soil Survey
10/19/2015
Page 1 of 35061600506170050618005061900506200050621005062200506230050616005061700506180050619005062000506210050622005062300501100501200501300501400501500501600
501100 501200 501300 501400 501500 501600
45° 42' 54'' N 110° 59' 12'' W45° 42' 54'' N110° 58' 42'' W45° 42' 26'' N
110° 59' 12'' W45° 42' 26'' N
110° 58' 42'' WN
Map projection: Web Mercator Corner coordinates: WGS84 Edge tics: UTM Zone 12N WGS84
0 200 400 800 1200Feet
0 50 100 200 300Meters
Map Scale: 1:4,210 if printed on A portrait (8.5" x 11") sheet.
123
MAP LEGEND MAP INFORMATION
Area of Interest (AOI)
Area of Interest (AOI)
Soils
Soil Map Unit Polygons
Soil Map Unit Lines
Soil Map Unit Points
Special Point Features
Blowout
Borrow Pit
Clay Spot
Closed Depression
Gravel Pit
Gravelly Spot
Landfill
Lava Flow
Marsh or swamp
Mine or Quarry
Miscellaneous Water
Perennial Water
Rock Outcrop
Saline Spot
Sandy Spot
Severely Eroded Spot
Sinkhole
Slide or Slip
Sodic Spot
Spoil Area
Stony Spot
Very Stony Spot
Wet Spot
Other
Special Line Features
Water Features
Streams and Canals
Transportation
Rails
Interstate Highways
US Routes
Major Roads
Local Roads
Background
Aerial Photography
The soil surveys that comprise your AOI were mapped at 1:24,000.
Warning: Soil Map may not be valid at this scale.
Enlargement of maps beyond the scale of mapping can cause
misunderstanding of the detail of mapping and accuracy of soil line
placement. The maps do not show the small areas of contrasting
soils that could have been shown at a more detailed scale.
Please rely on the bar scale on each map sheet for map
measurements.
Source of Map: Natural Resources Conservation Service
Web Soil Survey URL: http://websoilsurvey.nrcs.usda.gov
Coordinate System: Web Mercator (EPSG:3857)
Maps from the Web Soil Survey are based on the Web Mercator
projection, which preserves direction and shape but distorts
distance and area. A projection that preserves area, such as the
Albers equal-area conic projection, should be used if more accurate
calculations of distance or area are required.
This product is generated from the USDA-NRCS certified data as of
the version date(s) listed below.
Soil Survey Area: Gallatin County Area, Montana
Survey Area Data: Version 18, Sep 3, 2014
Soil Survey Area: Gallatin National Forest Area, Montana
Survey Area Data: Version 6, Sep 3, 2014
Your area of interest (AOI) includes more than one soil survey area.
These survey areas may have been mapped at different scales, with
a different land use in mind, at different times, or at different levels
of detail. This may result in map unit symbols, soil properties, and
interpretations that do not completely agree across soil survey area
boundaries.
Soil map units are labeled (as space allows) for map scales 1:50,000
or larger.
Date(s) aerial images were photographed: Aug 17, 2011—Aug
19, 2011
The orthophoto or other base map on which the soil lines were
compiled and digitized probably differs from the background
imagery displayed on these maps. As a result, some minor shifting
of map unit boundaries may be evident.
Soil Map—Gallatin County Area, Montana, and Gallatin National Forest Area, Montana
Natural Resources
Conservation Service
Web Soil Survey
National Cooperative Soil Survey
10/19/2015
Page 2 of 3124
Map Unit Legend
Gallatin County Area, Montana (MT622)
Map Unit Symbol Map Unit Name Acres in AOI Percent of AOI
65C Bigbear loam, 4 to 8 percent
slopes
5.0 12.5%
65D Bigbear loam, 8 to 15 percent
slopes
7.5 18.9%
354D Farside loam, 8 to 15 percent
slopes
10.0 25.2%
366E Windham cobbly loam, 15 to 35
percent slopes, stony
13.9 35.0%
454E Bielenberg-Catgulch, very
stony-Breeton complex, 15 to
45 percent slopes
0.6 1.6%
614D Adel loam, cool, 4 to 15 percent
slopes
2.7 6.9%
Subtotals for Soil Survey Area 39.9 100.0%
Totals for Area of Interest 39.9 100.0%
Gallatin National Forest Area, Montana (MT623)
Map Unit Symbol Map Unit Name Acres in AOI Percent of AOI
87-1B Typic Calciborolls-Typic
Argiborolls-Rock outcrop
complex, steep
0.0 0.0%
Subtotals for Soil Survey Area 0.0 0.0%
Totals for Area of Interest 39.9 100.0%
Soil Map—Gallatin County Area, Montana, and Gallatin National Forest Area, Montana
Natural Resources
Conservation Service
Web Soil Survey
National Cooperative Soil Survey
10/19/2015
Page 3 of 3
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Hall – Widdoss & Company, P.C.
Land Comparable 1
Transaction
ID Date 7/29/15
Address 530 Bridger Canyon Spur Road Price $1,150,000
City Bozeman Price per Acre
$29,632
State Montana Financing Cash to seller
Tax ID 00RFI10039 Property Rights Fee Simple
Grantor Dorothy L. Ballantyne Trust, Dorothy L. Ballantyne Trustee Days on Market Zoning 533 AEDP20
Grantee Paul Russell Verification Source Sally Uhlmann 406 223 5964
Legal Description Lot A, COS 1746 Document # 2519255
Site
Acres 38.809 Topography Sloping
Zoning Residential
Road Frontage Bridger Canyon Spur Road Flood Zone None
Shape Mostly rectangular Encumbrance or
Easement
None known
Utilities Telephone, electricity, private well and
sept
Environmental Issues None known
Comments This property is located at the south easterly corner of Bridger Canyon Spur Road and Cloud 9. The property
represents a mixture of mature trees and open areas as well as 3 small ponds. The property has a slightly rolling
characteristic with roughly 100 feet in elevation. This site was listed for $1,389,500 and sold for $1,150,000. This
is a 38.809 acre tract that produced an indication of $29,632 per acre. Overall this sale compares well to the
subject in terms of overall size, usability, view sheds etc. The subject property has one small pond where this
property has 3 small ponds. In the final analysis, this property compares very well to the subject and is
emphasized.
.
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Hall – Widdoss & Company, P.C.
Land Comparable 2
Transaction
ID Date 7/6/2015
Address Greenridge Drive Price $710,000
City Bozeman Price per Acre $25,998
State Montana Financing Zoning Cash to seller AEDP20
Tax ID 00RFI42839 Property Rights Fee Simple
Grantor Dan Goldberger Days on Market 133
Grantee John Ryan Brennan, Stefanie Newsome Ryan Verification Source Kirsten Heoll 406
580 0245 Legal Description Lot 4 Minor 198B Document # 2507062
Site
Acres 27.310 Topography Sloping
Zoning Residential
Road Frontage Breeze Lane Flood Zone None known
Shape Rectangular Encumbrance or Easement None known
Utilities Telephone, electricity Environmental Issues None known
Comments
This property is located on Green Ridge Drive just off of Jackson Creek Road, southeast of the intersection of
Jackson Creek Road and Bridger Creek Drive. Of the sales utilized within this report, this sale is located farthest
removed from the city of Bozeman. This is a 27.31 acre site with good mountain views. This property also has a
small pond on site and have an existing barn with none to minimal value. This property was listed for $795,000
and sold for $710,000. That produces an indication of $25,998 per acre. With the exception of the slightly
removed proximity from Bozeman, this sale compares very well to the subject and is emphasized. Considering the
location as a slightly inferior factor the subject could be slightly higher. Motivation for purchase of the site was for
a fairly significant single-family residence with a cost in excess of $4,000,000.
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Hall – Widdoss & Company, P.C.
Land Comparable 3
Transaction
ID Date 12/22/14
Address Laughing Horse Lane Price $725,000
City Bozeman Price per Acre $17,968
State Montana Financing Cash to seller
Tax ID 00RFI42097 Property Rights Fee Simple
Grantor US Bank Trust Company Days on Market 190
Grantee Jeffrey J. and Janice E. List Verification Source Sara M. Hahn via
email Legal Description Lot 5 Minor 348 Document # 2500155
Site
Acres 40.349 Topography Sloping
Zoning AEDP20
Road Frontage Flanders Mill Road Flood Zone Unknown
Shape DOM Irregular 190 Encumbrance or Easement None known
Utilities All city services available Environmental Issues None known
Comments
This sale is located on Laughing Horse Lane, just off of Jackson Creek Road. This is a 40.349 acre site that has
good views, a pond and many springs. The building site is located on an open meadow with a mixture of trees to
the southwesterly corner of the site. This property was listed for $850,000 with the final selling price shown at
$725,000. That produces an indication of $17,968 per acre.
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Hall – Widdoss & Company, P.C.
Land Comparable 4
Transaction
ID Date 8/4/14
Address End of Gold Dust Trail Price $240,000
City Bozeman Price per Acre $4,083 State Montana Financing Cash to seller
Tax ID 000RFH7584 Property Rights Fee Simple
Grantor Ronald G. Thomas, et.al. Days on Market 12
Grantee Bairstow, LTD Verification Source Ray Atteberry 406 556 5053
Legal Description Lot 1 of Minor Subdivision 340, S10, T02S, R05E Document # 2488101
Site
Acres 58.785 Topography Sloping to steep
Zoning Unzoned
Road Frontage Easement from Gold Dust Trail Flood Zone Unknown
Shape Irregular Encumbrance or Easement None known
Utilities Telephone and electric Environmental Issues None known
Comments
This property is located just north west of the subject and consists of a 58.785 acre tract that was unzoned at the
time of the sale. This property was listed for $299,000 and sold for $240,000. That produces an indication of
$4083 per acre. This property is significantly steeper than the subject but had several building sites available.
Overall this property is not directly similar to the subject and is not emphasized in the final analysis.
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Hall – Widdoss & Company, P.C.
Land Comparable 5
Transaction
ID Date 6/14/13
Address 10 Bridger Hills Drive Price $215,000
City Bozeman Price per Acre
$14,180
State Montana Financing Conventional
Tax ID 00RFJ29551 Property Rights Fee Simple
Grantor Joshua L. Vujovich Days on Market 61
Grantee Ashley and Troy Butler Verification Source Josh Vujovich 406 570 9536
Legal Description Tract 10 COS 38 Document # 2452591
Site
Acres 15.162 Topography Sloping to steep
Zoning AEDP20
Road Frontage Bridger Hills Drive Flood Zone Unknown
Shape Irregular Encumbrance or Easement
None known
Utilities Telephone, electric Environmental Issues
None known
Comments
This sale is located northeast of the subject property on Bridger Hills Drive. This property was listed for $245,000
and sold for $215,000. It is a 15.162 acre site producing an indication of $14,180 per acre. This property is steeper
than the subject but had one building site along the south easterly corner of the tract. It does have a common
boundary with 10 acres of open space. However the majority of this tract is steeper. Overall this is a low-end
figure for the subject. The subject would likely be no less than $14,000 per acre based on this sale.
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APPRAISER QUALIFICATIONS - NICHOLAS J. HOGAN, MAI
APPRAISAL AND RELATED BUSINESS EXPERIENCE:
January 1, 1994 to Present:Staff Appraiser for HALL - WIDDOSS & COMPANY, P.C. Work
covers appraisals and consultation for all types of property in the same territory noted above.
June 1, 1992 to December 31, 1993: Intern and Apprentice for HALL - WIDDOSS & COMPANY, P.C.,a Real Estate Appraisal and Consulting business primarily covering the States of Montana and Wyoming. The firm specializes in urban investment property, recreational and development land appraisals.
Appraisal work involves land, residential and multi-family properties, as well as research and assistancefor various other property types. Work comprises value estimates for loan purposes, estate planning,marketing, condemnation, accounting requirements and various others.
EDUCATION:
• University of Montana - Bachelor of Science in Business Administration (12/92)
APPRAISAL INSTITUTE COURSES AND SEMINARS:COURT TESTIMONY:
• R-2, G-2 Appraising the Single Family Residence • Tax Appeal Hearing, Missoula County
• 410 Part A & B Standards of Professional Practice • Deposition for Bankruptcy Hearing in
U.S. Bankruptcy Court, Western District of Washington• 110 Appraisal Principles
• 120 Appraisal Procedures
• 310 Basic Income Capitalization
• 510 Advanced Income Capitalization
• 520 Highest & Best Use/Market Analysis
• 530 Advanced Sales Comparison & Cost Approaches
• 540 Report Writing & Valuation Analysis
• 550 Advanced Applications
• American=s With Disabilities Act Seminar
PROFESSIONAL AFFILIATIONS:
Member Appraisal Institute - MAI No. 12400
Montana General Certificate No. REA-RAG-LIC-370
Wyoming Certified General No. 1090Idaho Certified General No. CGA-3332
Board Member, Montana Property Tax Reappraisal Advisory Committee (No longer active committee)
REPRESENTATIVE CLIENTS:
Associates Commercial Corporation
1st Interstate Bank - Missoula
First Security Bank - MissoulaCalifornia Bank and Trust
Galena Resort - Reno, Nevada
U.S. Bureau of Reclamation4B=s Restaurants, Inc.
Missoula Federal Credit Union
US BankWells Fargo Bank
Montana Department of Transportation
Bank of AmericaGlacier Bank
Various Individual Clients
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