HomeMy WebLinkAboutSitka Appraisal of Marine Street Substation 1981SIT-G
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Lmr.~i YC ta>Y
APPRAISAL
of
Ma rine Street Substation
Sitka , Alaska
for
Alas k a Power Au thority
PROPERTY OF:
Alaska Power Authority
334 W. 5th Ave.
Anchorage, Alaska 99501
LAND FIELD SERVICES, INC.
APPRAISAL
of
Marine Street Substation
Sitka, Alaska
for
Alaska Power Authority
F:10PEETY Gr~:
A•aska Power f-u[: tc·city
334 W. 5th Av::-.
Anc~1orage, Alaska 9:·,~~C1
~----· ~-----
By
Land Field Services, Inc.
Donald R. Bruce
V. Lenny Reagin
Reviewed By
P. J. Sullivan
-·-, 7
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/ I • I LAND FIELD SERVICES, INC.
I' ' I fl .. , lll 1 I< l! I
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Alaska Power Authority
333 West Fourth Ave., Suite 31
Anchorage, Alaska 99501
ATTENTION: Mr. Eric P. Yould
Executive Director
Subject: Appraisal of Marine Street Substation Land
Green Lake Project
Sitka, Alaska
Gentlemen:
October 7, 1981
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As you have requested, the undersigned have made an inspection and analysis
of the above referenced property for the purpose of estimating the Market
Value. The accompanying report sets forth the most pertinent data gathered,
the techniques of valuation and the reasoning leading to an op1n1on of value.
In our opinion, the Harket Value of the subject property is:
Forty Five Thousand Two Hundred & Fifty Dollars
($45, 250)
Thank you for the opportunity to be of service. If you have any questions
regarding this appraisal, please contact us.
Very Truly Yours,
LAND FIELD SERVICES, INC.
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Enclosures
Do~ld R. Bruce
{/y /) v.·fen~t:?r
CERTlF I CATTON
The authors do hereby certify that, except as otherwise noted in this appraisal
report:
They have no present or contemplated future interest in the real
estate that is the subject of this appraisal report.
They have no personal interest or bias with respect to the subject
matter of this appraisal report, or the parties involved.
To the best of their knowledge and belief, the statements of fact
contained in this appraisal report, upon which the analyses, opinions
and conclusions expressed herein are based, are true and correct.
This appraisal report sets forth all of the limiting conditions
(imposed by the terms of the assignment or by the authors) affect-
ing the analyses, opinions and conclusions contained in this report.
No one other that the authors prepared the analyses, conclusions
and opinions concerning real estate that are set forth in this
appraisal report.
Donald R. Bruce
/)/ ~. b~&:,~Mr=-
v. Lenny Reagin
ASSUMPTIONS AND LIHJTING CONDITIONS
1. No legal questions are considered in this analysis, such as titles,
encumbrances, etc ••. The property is considered as if free and clear.
2. All dimensions and legal descriptions are assumed to be correct, as
furnished.
3. All information, as found in data furnished, is deemed to be reliable.
If any errors are found, the right is reserved to modify the conclusions
reached.
4. No study has been made to determine whether structures may have an
infestation, such as termites or dry rot. In the absence of such study,
it is assumed the property is free of such problems.
5. The data and conclusions embodied in this appraisal are a part of the
whole valuation. No part of this appraisal is to be used out of context;
and, by itself alone, no part of this appraisal is necessarily correct,
as being only part of the evidence upon which final judgment as to
replacement value is based.
6. Employment to make this appraisal does not require testimony in court,
unless mutually satisfactory arrangements are made in advance.
7. This report is delivered subject to the stipulation that neither all nor
any part of the contents shall be conveyed to the public media through
advertising, public relations, news, sales or any other media without
the written consent and approval of the author, particularly as to
valuation conclusions, the identity of the appraiser or his firm.
QUALIFICATIONS OF THE APPRAISER
Land
Education:
John Muir College
University of California
University of California
Hastings College of Law
American Institute of Real Estate
Appraisers
International Right of Way
Association
Experience:
Inc.
Associate Arts Degree
Bachelor of Science Degree
(Political Science)
Two Years
Course I
Appraisal 101
Appraisal of Easements 401
Landman, Standard Oil Company of California -6 years
Appraiser, Alaska Land and Title Company -2 years
Senior Appraiser, Land Field Services, Inc. -8 years
Review Appraiser, Land Field Services, Inc. - 6 years
Expert Witness, Superior Court, 4th Judicial District
Expert Witness, Superior Court, 3rd Judicial District
Expert Witness, U.S. District Court, Alaska
Appraised properties in the following areas of Alaska:
Anchorage Fairbanks Juneau
Ketchikan Petersburg Wrangell
Cordova Valdez Copper Center
Glennallen Tok Delta
North Pole Prudhoe Bay Kotzebue
Nome Bethel Dillingham
Palmer Wasilla Willow
Kodiak Seldovia Homer
Kenai Seward Cantwell
Sitka
Business and Professional Affiliations:
Senior Member -International Right of Way Association
Past Regional Officer -International Right of Way Association
Associate Member -Society of Real Estate Appraisers
Former Member -State of Alaska -Board of Land Appeals
Appraisal Clients Include:
Alaska National Bank
Mt. McKinley Mutual Savings
The Anaconda Company
State of Alaska -Department of Public Works
Greater Anchorage Area Borough
Alyeska Pipellne Service Company
Copper Valley Electric Association
Horner Electric Association
Kenai Pipeline Company
Standard Oil Company of California
H.C. Price Company
Professional Contractors, Inc.
Morrison -Knudsen Co., Inc.
State of Alaska -Department of Highways
Alaska Airlines, Inc.
Kodiak Electric Association
Golden Valley Electric Association
Ely, Guess and Rudd
Fairbanks North Star Borough
Alaska Power Authority
Education:
QUALIFICATIONS OF THE APPRAISER
Donald H. !3ruce
Land Field Services, Inc.
University of Michigan
American Institute of Real
Estate Appraisers
International Right of Way
Association
International Right of Way
Association
Experience:
Real Estate Broker -Casper, Wyoming -4 years
Business Administration
Course I
Report Writing Course
Land Titles Course
Appraiser, Federal Housing Administration -Wyoming and Alaska -2 years
Appraiser, State of Alaska, Department of Highways -2 years
Vice President, Hortgage Loan Department -Alaska National Bank of
Fairbanks. (Hade all appraisals for bank real estate loans -12~ years.)
Appraiser, Land Field Services, Inc. -4 years
Appointed by State of Alaska superior Court as ~1aster in condemnation
hearings in Fourth Judicial District -1963 to present
Appointed by City of Fairbanks and North Star Borough to Property Tax
Advisory Board to the Assessor's office-1962-1966
Appointed by United States District Court as Land Commissioner in Federal
condemnation cases. 1978 to present.
Appraised properties in the following areas of Alaska:
Fairbanks
Sitka
Cordova
Tok Junction
Homer
Kotzebue
Anchorage
Ketchikan
Valdez
Delta
Kenai
Prudhoe Bay
Business and Professional Affiliations:
Member -International Right of Way Association
Juneau
Wrangell
Glennallen
Seward
Nome
Copper Center
Member-Fairbanks North Star Borough's Land Value Advisory Commission
Appraisal Clients Include:
Morrison-Knudsen Company, Inc.
National Bank of Alaska
Hickel Investment Company
Alyeska Pipeline Service Company
Copper Valley Electric Association
Alaska National Bank of the North
Alaska Teamsters Employee Pension
Fund
H. C. Price Company
Box Boy
City of Fairbanks
Albright Corporation
State of Alaska, Department
of Highways
City Electric
Teamsters Local 959
Federal Housing Administration
Polaris Investment Company
Professional Contractors, Inc.
The Anaconda Company
<}UALIFJCATIONS tH' TilE Al'l'IZAISI.:R
Education:
University of Alaska
~cm!._l _ _l\eE_S_in
Land Field Services, Inc.
Tanana Valley Community College
University of Alaska
University of Alaska
Society of Real Estate Appraisers
International Right of Way Association
International Right of Way Association
Business Administration
Real Estate Appraisal
Real Estate and Land Economics
Principles, Hethods, and Tech-
niques of Real Estate Appraising
Narrative Report Writing Seminar
R-2 Examination
Report Writing Course
Land Titles Course
General Real Estate Appraisal, including residential, recreational, and
commercial properties - 9 years
Approved appraiser for Veterans Administration - 6 years
Qualified as an Expert Witness, Superior Court, 4th Judicial District, State
of Alaska
Completed appraisals which have been accepted by the Federal Home Loan
Mortgage Corporation and the Federal National Mortgage Association
Associate Appraiser for Yerkes, Street and Associates -3~ years
Appraiser/owner, V. Lenny Reagin & Associates - 1 year
Loan Examiner II, State of Alaska Department of Commerce, Division of Veterans
Affairs -1~ years
Appraiser, Land Field Services, Inc. - 3 years
Appraised properties in the following areas of Alaska:
Fairbanks
Nenana
Galena
Anchorage
Delta
Prudhoe Bay
Business and Professional Affiliations:
Member -International Right of Way Association
North Pole
Tok Junction
Glennallen
Copper Center
Member -Fairbanks North Star Borough's Land Value Advisory Commission
Appraisal Clients Include:
National Bank of Alaska
Alaska National Bank of the North
First National Bank of Anchorage
First National Bank of Fairbanks
Ht. McKinley Mutual Savings
Coast Mortgage Company
State of Alaska, Department of Highways
State of Alaska, Division of Veterans Affairs
U.V. Industries, Inc.
Follett and Associates
American Hineral and Petroleum Corporation
of Delaware
Dames and Moore
Wien Air Alaska
Veterans Administration
Rymac Realtors
Meyeres Real Estate
Golden North Realty
Earl Cook Real Estate
Johnson Real Estate
R & A, Inc. Realtors
B.C. Price Company
Professional Contractors, Inc.
The Anaconda Company
Alyeska Pipeline Service Company
Sitka and Reglonnl Arcn Data:
Sitka is located on the west coast of Baranof Island in southeastern
Alaska. It is approximately mid-way between Seattle, \.Jashington, and Anchorage,
Alaska, and a 20 minute flight west from Juneau, Alaska's capital. It is the
only city in the southeast that fronts on the Pacific Ocean. All other major
population centers are located on the Inside Passage.
Sitka was founded by the Russians in 1804 and from 1806 to 1867 was the
capital of Russian America. When the United States purchased Alaska in 1867
for $7,200,000, Sitka remained the capital until 1900, when territorial
administration was transferred to Juneau.
The local government is Home Rule Charter with an assembly and administrator.
The City and Borough of Sitka covers 4,600 square miles of marine and mountain
terrain. Over 90% of the land area belongs to the federal government and is
part of the Tongass National Forest. The population is approximately 8,700
at the present time, most of them located in a twelve mile strip-type develop-
ment along Sitka Sound which includes the city of Sitka.
The Japanese current, which flows just west of Sitka, keeps the climate
moderate all year long. The average mean temperatures are 32° in the winter
and 55° in the summer. Average annual precipitation is 96.6 inches.
Sitka has three main industries-logging, fishing, and tourism. The
Japanese-owned Alaska Lumber and Pulp Company, Inc. has a $70,000,000 pulp
mill 4~ miles southeast of Sitka. Fishing and fish processing are also very
important industries. Due to the historic value of Sitka, tourism has been
growing at an amazing pace in the last 10 years since the introduction of the
Alaska Ferry System and the building of the new airport which can handle large
jet aircraft. New hotels have been built with close to 300 modern rooms
available.
The Sitka area has a very bright future for expansion and growth as the
Green Lake power project will help it meet all its power needs for the coming
years when it goes on line toward the end of 1981.
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Locat· J.on Hap
HALIBUT
64'
6 760 •' +I ~ .,
()_
(1350!\l
63~
90'
HEMLOCK
"'II 3~27\
r 5.5<!1•'
e~·
18909
60~
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6390•1 "' .J "'
(13510)
59t
POINT
N51"42'W
60' 65 a~· 84 65'
6,9!15•1 9,000•1
;;r "' <?o "' ~<I ..
2 (I 3485)
(I 3490)
s~·
ROAD
80 26' 61.46'
71127 •' 7,656 of ~ -......
-t le ...,,..,
" 19 -Cl ~~
CX) '" "' "' ~ 1/}
(I~·
(I 3460)
eo'
12219'
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Looking at corner of Marine Street and Erler Street.
Looking north along Marine Street.
Marine Street Substation on right.
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Looking east at Marine Street Substation
from west side of Marine Street.
Looking east down Erler Street,
Marine Street Substation on left.
APPRAISAL REPORT
Ostensible Owner:
Location of Property:
Legal Description:
Date of Inspection:
Date of Appraisal:
ASS~~TIONS AND LIMITING CONDITIONS:
The City and Borough
of Sitka, Alaska
Corner of Erler Street and
Marine Street
Lots 11 and 12, Block 25,
(Harbor Heights Subdivision)
of U.S.S. 1474
September 21, 1981 through
September 25, 1981
September 28, 1981
All appraisals are made subject to certain assumptions and limiting conditions.
For those that apply to this appraisal please refer to the sheet in the preface
portion of this book.
PURPOSE OF THE APPRAISAL:
The purpose of this appraisal is to estimate the Market Value of the above
described property.
Harket Value is defined as, "the highest price in terms of money that a
property will bring if exposed for sale on the open market, allowing a
reasonable length of time to find a purchaser who buys with full knowledge of
all the uses to which it is adapted and for which it is capable of being used."
PROPERTY RIGHTS APPRAISED:
The fee simple estate is appraised.
HIGHEST AND BEST USE:
Highest and Best Use is defined as, "that reasonable and probable use which
will support the highest present value."
The highest and best use of the subject property is considered to be as used-
in conjunction with a utility substation.
Site -9,526 square feet
The subject lots are irregular in shape with a combined total of 9,526
square feet of area. The subject lots have been cleared, and are currently
improved with the Marine Street Substation.
Access
The subject site is a corner lot with 47.95 feet of frontage along Marine
Street and 143.82 feet of frontage along Erler Street. Marine Street is
a two lane asphalt surfaced street. Erler Street is a two lane gravel
surfaced street.
Zoning
R-2 District -Multi-Family Residential District
This zone allows for public uses and structures, primarily serving the
surrounding residential area.
Assessed Value and Real Estate Taxes
Not applicable to City and Borough properties.
Improvement Description
The site is improved with a utility substation. The improvements are not
given any consideration in this report.
-2-
PROPERTY VALUATION:
Site -9,526 square feet
A search of the general neighborhood of the subject property and the City of
Sitka was made to locate comparable land sales. The search resulted in the
location of six sales that are most similiar to the subject land. These sales
are listed in the Addendum and discussed below:
Summary of Sales
Sale Sale Date Price Size/Area Price/per square foot
1 2-11-77 $28,000.00 8,497 sq. ft. $3.30
2 7-1-79 $18,500.00 8,000 sq. ft. $2.31
3 9-9-80 $89,000.00 30,150 sq. ft. $2.95
4 9-27-78 $20,000.00 6,254 sq. ft. $3.20
5 9-24-79 $125,000.00 22,240 sq. ft. $5.62
6 2-24-80 $67,000.00 16,828 sq. ft. $3.98
Comparable Sale Number 1 is located approximately 5 blocks east of the subject
at the corner of Smvrnill Creek State Highway and Baronof Street. It was
purchased in Febuary of 1977 at the rate of $3.30 per square foot. This sale
requires an upward adjustment for time and has an inferior zoning classification.
Comparable Sale Number 2 is located approximately 10 blocks northeast of the
subject property. This property has an inferior location, zoning classification
and would require an upward adjustment for time.
Comparable Sale Number 3 is located approximately 8 blocks from the subject
property. This was a purchase of 4 lots for residential development. The
property was acquired approximately 1 year ago and requires adjustment for
size, time and inferior location.
Comparable Sale Number 4 was acquired in September of 1978. It has the same
zoning classification and is similiar in location. This sale is slightly
smaller and would require an adjustment for time.
Comparable Sale Number 5 is a level uncleared tract of land considered to have
a superior location. The site is approximately twice the size of the subject
with the same zoning classification. This transaction occurred in September
of 1979 for a price of $5.62 per square foot.
Comparable Sale Number 6 is located approximately 4 blocks east of the subject
property. It has the same zoning classification. Although slightly larger
this site is considered most similiar in location. This property was purchased
in Febuary of 1980 at a rate of $3.98 per square foot.
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After careful consideration of the six sales, the location, size nnd zoning
of each, it is our opinion that the indicated value of the subject site
would be at the rate of $4.75 per square foot.
Therefore:
9,526 square feet at $4.75 per square foot=
Rounded
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$45,248.50
$45,250.00
Sale 112 , ..
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CHANNEL Comparable Land Sales
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COMPARABLE LAND SALE NO. 1
LOCATION: Sawmill Creek State Highway
LEGAL DESCRIPTION: Lot 1, Block 22, U.S.S. 1474 Tract A, the Subdivision of the
Townsite of Sitka.
Access: Sawmill Creek State Highway
Terms: N/D
Date: Febuary 11, 1977
Instr.: Warranty Deed
Bk/Pag.: Book 38, Page 504
GRANTOR: LLOYD F. HAMES & BARBARA R. HAMES
GRANTEE: HAMES CORPORATION
SALE CONFIRHED BY: Charles Horan
Zoning: R-1
Use: Vacant
Size:8,497 square feet
Price: $28,000.00
PROPERTY DETAILS: Vacant cleared tract of land -currently used as a parking lot.
ANALYSIS: $28,000 + 8,497 square feet = $3.30 per square foot.
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COMPARABLE LAND SALE NO. 2
LOCATION: 501 Verstovia
LEGAL DESCRIPTION: Lot 11, Block '3, Sirstad Addition No. 3
Access: Verstovia Street
Terms: N/D
Date: July 1, 1979
Instr.: Warranty Deed
Bk/Pag.: Book 46, Page 475
Zoning: R-1
Use: Vacant
Size: 8,000 square f eet
Price: $18,500.00 ·
GRANTOR: WAYNE L. PATTISON & LYNETTE M. PATTISON
GRANTEE: MICHAEL K. REIF and/or MARTIN 0. REIF
SALE CONFIRMED BY: Charles Horan
PROPERTY DETAILS: Vacant tract of land above road grade.
ANALYSIS: $18,500 T 8,000 square feet = $2.31 per square foot.
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COMPARAilLI~ LAND SALE NO. 3
LOCATION: Finn Alley & Barlow Street
LEGAL DESCRIPTION: Lots 1, 2, 3, and 4 of Crescent View Subdivision of a portion
of Lot 20, Block 13, U.S.S. 1474-A
Access: Finn Alley & Barlow Street
Terms: $21,000.00 Down
Date: September 9, 1980
Instr.: Warranty Deed
Bk/Pag.: Book 50, Pages 422, 423, 424 and
425
GRANTOR: . AGNES N. FORBES
Zoning: R-1
Use: . Residential Development
Size: 30,150 square feet
Price: $89,000.00
GRANTEE: STANLEY C. JOHNSON and KATHRYN JOHNSON
WAYNE L. PATTISON and LYNETTE M. PATTISON
SALE CONFIRMED BY: Charles Horan
PROPERTY DETAILS: Currently· being residentially improved.
ANALYSIS: $89,000 ~ 30,150 square feet $2.95 per square foot.
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COMPARABLE LAND SALE NO. 4
LOCATION: 510 Lake Street
LEGAL DESCRIPTION: Lot 5, Block 2, Sirstad Addition #1
Access: Lake Stre·et
Terms: N/D
Date: September 27, 1978
Instr.: Warranty Deed
Bk/Pag.: Book 44, Page 353
GRANTOR: THOMAS H. LAVALLEE
Zoning: R-2
Use: Vacant*
Size: 6,254 square feet
Price: $20,000.00
GRANTEE: JAMES E. MARTIN and JOYCE M. MARTIN
SALE CONFIRMED BY: Charles Horan
PROPERTY DETAILS:*Property has an old garage which is considered to have little
to no value. This is a corner lot.
ANALYSIS: $20,000 T 6,254 square feet = $3.20 per square foot.
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COMPARAUI.I·: LAND SAI..E NO. 5
LOCATION: 404 Lake Street
LEGAL DESCRIPTION: Fractional part of Lots 7 and 8, Block 19, U,'S.S. No. 1474
Tract A.
Access: Lake Street
Terms: $37,600.00 Down
Date: September 24, 1979
Instr.: Statutory Warranty Deed
Bk/Pag.: Book 47, Page 148
GRANTOR: EVA N. JONES & GLENN R. JONES
Zoning: R-2
Use: Vacant
Size: 22,240 square feet
Price: $125,000.00
GRANTEE: CUSTOM MECHANICAL AND FRANK 'S PLUMBING AND HEATING SHEETMETAL, J.V., INC.
SALE CONFIRHED BY.: Charles Horan
PROPERTY DETAILS: Vacant tract of. land at street grade.
ANALYSIS: $125,000 + 22,240 square feet $5.62 per square foot.
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COMPARABI.I~ LAND SALE NO. 6
LOCATION: Monastery Street
LEGAL DESCRIPTION: Lots A and B Martens ResubCliyision
Access: Monastery Street
Terms: N/D
Date: Febuary 24, 1980
Instr.:Statutory Warranty Deed
Bk/Pag.: Book 48, Page 664
GRANTOR: JERRY C. MARTENS
Zoning: R-2
Use: Vacant
Size:l6,838 square feet
Price:$67,000.00
GRANTEE: JOHN W. SARGENT and JOAN A. SARGENT
SALE CONFIRMED BY: Charles Horan
PROPERTY DETAILS: Vacant corner lot .at street grade.
ANALYSIS: $67,000 + 16,828 square feet = $3.98 per square foot.
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