Loading...
HomeMy WebLinkAboutSitka Appraisal of Marine Street Substation 1981SIT-G 006 c. 2 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 ( ..J / I • I LAND FIELD SERVICES, INC. I' ' I fl .. , lll 1 I< l! I } IIi 1'1Wl 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 ' • 1i 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. / I • I . \ ,_> \ ~~ 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. I / Locat· J.on Hap HALIBUT 64' 6 760 •' +I ~ ., ()_ (1350!\l 63~ 90' HEMLOCK "'II 3~27\ r 5.5<!1•' e~· 18909 60~ •I 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' I I I I I I I I I I I I I I I I I ' I . I Looking at corner of Marine Street and Erler Street. Looking north along Marine Street. Marine Street Substation on right. I I I I I I I I I . I ' I I I I I I I I I I 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. -3- 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 -4- $45,248.50 $45,250.00 Sale 112 , .. ,c l• ,' st/t -? J . ~ ...... 1/' ' • I • . ··@~ '• ' ..• ~ • ,. I;) -~ I ~ . - •• CHANNEL Comparable Land Sales I I I I I I I 1 I I I I I I 1: I I I I 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. I I I I I I I I I I I I ' I I I I I I I I 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. r I ~' I I I I I I I I I I I I I I I I I I 1: I I 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. I I ' I I l I I I I I I I I I I I I 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. I I I I I I I I I I I I I I I I I I 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. I I I I I I I I I I I , I I I I I I I I 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. ..