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HomeMy WebLinkAboutResolution 73-39CITY OF COLUMBIA HEIGHTS ADMINISTRATIVE OFFICES · COLUMBIA HEIGHTS, MINNESOTA 55421 RESOLUTION #73-39 AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A CONTRAC'T FOR APPRAISAL SERVICES FOR LABELLE PARK. BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights that the ~yor and City Manager be and hereby are authorized to enter into a contract for appraisal services on behalf of the City of Columbia Heights with F. N. Shaffer Rea] Estate & Appraisal Service fn accordance with the requirements of the U.S. Department of Housing and Urban Development in accordance with the contract attached hereto as Exhibi't I and made a part hereof. [H.U.D. Form 1320.1, pages 1-21.) Passed this ~ day of Mcy, 1973 Offered by: Norberg Seconded by: Land Roll Call: All Ayes //~/~cretary to the Council Bruce 6. Nawrocki, Mayor EXHIBIT CONTRACT FOR APPRAISAL SERVICES THIS ~GRE~'~NT, entered into this day of !9 .... , by and between City Of ~Columbi~--~tghts ~r~x~ ,, State of Minnesota hereinafter referred to as the "Agency," and Fran Shaffer hereinafter referred to as the "Appraiser." W!TKESSETH THAT: WHitlEAS, the Agency proposes to acquire certain real property (more particularly described in~urtic!e ! of this Agreement) and desires that the Appraiser furnish the Agmncy certain services with ~espect to such property, including an appraisal of each parcel comprising part of such property, and the Appraiser represents that he is fully qualified to perform such services and will furruish such services personally; and WYSIREAS, the services to be provided under this AA~reement are necessary to achieve the purposes of appraisinK property in Exhibit A and the Uniform Relocation Assistmuce and Real Property Acquisition Policies Act of 1970 (82 Stat. 1894; Public Law 91-646), hereinafter referred to as the "Act." NOW, T~REFORE, the Agency and the Appraiser, for the considera- tions ~nd under the conditions hereinafter set forth, do agree as follows: ARTICLE 1. Pronerty To Be Aperaised. Descriptions of the real property ~ud tho estate or interest therein to be appraised, including identification of any interests in the real property to be specifically 'excluded from appraisal, are set forth in Exhibit A attached hereto and hereby made a p~rt of t}~s agreement. A separate appraisal is to be furnished for each "parcel," which term, as used in this agreement, means am~ tract or contiguous tracts of land in the same ownership, whether such tract or tracts consist of one or more platted lots or a fractional part thereof. An easement, separate ovaaerskip of mineral rights, or other separately held interest in two or more parcels shall be considered to be a separate parcel for appraisal pum~oses and an exception to the title to the parcels so encumbered. An easement in a parcel, if appurtenant to another parcel to be acquired by the Agency, shall be considered to be part of such other parcel and an exception to the title of the parcel encumbered. Each parcel, regard- less of how described, sb~lt be considered to include all right, title, and interest of the owner thereof in or to any adjacent or abutting streets, alleys, or other public rights of way. Page t 1/73 1320.t I Appendix 2 ARTICLE 2. Purpose and Basis of Valuations. 2'~! P~ose and Significance of Appraisals. The appraisals to be furnished under tt~s agreement are required by the Agency for its gu/dance in making fair and impartial determinations of fair market value and the just compensation to be offered to each property owner. The Appraiser shall be guided by those objectives of the Agency when est~tingvalues and when making his investigations and studies and analyzing each property and the evidences of its value. Appraisal reports will be reviewed carefully by the Agency. Accordingly, the text of each appraisal report must cover all matters germane to the required valuation findings and n~_st provide a full explanation of the Appraiser's reasoning and his analyses of the evidences of value, so that a reviewer will be able to follow the Appraiser's analyses and understand how he reached his valuation conclusions. 2.2 Appraisal Standards. In making his appraisals, the Appraise= shall be gu/ded by the Uniform Appraisal Standards for Federal Laud Acquisitions., issued by the (Federal) Interagency Land Acquisition Conference in 1971 and revised in 1972, to the extent that the principles stated therein for Federal acquisitions are consistent with State law. (This publication may be obtained from the Superintendent of Documents, U.S. Govezm_ment Printing Office, Washington, D.C. 20402, price 35 cents, Stock Number 5259-0002.)1-/ 2.3 Concept of Value. The Appraiser's opinion of the fair market value (or other equivalent term used in the State in which the property is located) shall be in accordance with the definition and concepts of value and the rules on the admissibility of evidence of value under the eminent domain law of the State, unless the Agency has notified the Appraiser in ~iting of a different basis or concept of value for the appraisal of specifically identified parcels. 1/The material in Section B-1 of such Standards, on "Data Documentation and Reporting Standards," is not ~.udatory for appraisals made under this agreement. Section B-1 may be considered to be applicable primarily to appraisals for Federal agencies mud the U.S. Department of Justice and, consequently, as applied to appraisals for the Agency, is relevant principally for gu/dance to matters appropri- ate for consideration in appraisals of large complex properties. Appraisal method and the organization of appraisal reports are not specified in this agreement because they are considered to be the prerogative of the Appraiser, provided that his appraisal methods and reports furnish adequately supported valuations correctly derived in accordance with State eminent domain law and furnish the information and findings required by this agreement. 1/73 Page 2 HUD-Wcsh., D, C. Appendix 2 2.4 Date of Valuation. The Appraiser's valuation sh~l! be as of a date concurrent with the preparation of his report, unless the A~ency has specified in writing an earlier date of valuation. 2.5 Relocation Assistance and Payments. The Appraiser's analyses and opinions of property value sh~ll not reflect auy consideration of or allowance for the relocation assistance and payments provided under Title II of the Act. 2.6 Ir_fluence of Project on Property Value. In forming'his opinion of the fair market value of a property, the Appraiser shall disregard any decrease or increase in the fair ~?ket value of the real property to be acquired (or the entire property of the owner in the case of a partial taking) prior to the date of valuation caused by the public improvement or project for which the property is to be acquired, or by the likelihood that the property would be acquired for such improve- ment or project, other than that due to physical deterioration with_in the reasonable control of the owner. In the case of a partial taking, using the before-and-after method of valuation, the Appraiser's opinion of the value of the remaining not-to-be-acquired portion of the property shall reflect any increase or decrease in value attrib- utable to the project. If the Appraiser believes that full compliance with the foregoing provisions would be contrary to State law, but he has not been so informed by the A~ency, he shall notify the Agency of his belief or question as to its applicability and request a ruling on the issue. If recognition or nonrecognition or the ~.nner of considering changes in value caused by the project is a problem, the Appraiser's report shall cite the ruling followed and its so~urce and shall explain the applicability and effect of the ruling on the Appraiser's opinion of value. ARTICLE 3. ~c.ope of Appraiser's Services. The Appraiser agrees to perform the following services: 3.1 Appraisals. Appraise each parcel comprising part of the real property described in~_~ticte 1 of this agreement and prepare and deliver to the Agency, within 15 calendar days after the date of this agreement, appraisal reports in l5 caleudar days cor~forming to the provisions of this a~reement. 3.2 ~roperty Inspection. Personally inspect each parcel, including all buildings, structures, improvements, fixtures, appurtenances, and other elements of value thereon or belonging thereto. The Appraiser shall give the ovmer an opportunity, by reasonable advance notice in writing or otherwise, to accompauy the appraiser, or to have his designated representative accompany the Appraiser, duringhis detailed inspection of the property. If an owner of a compensable interest in the property or a representative of such o~ner does not accompany the Appraiser during such inspection, the Appraiser shall include in his Page 3 1/73 HUD-Wmsh., ID. C. 1320.1 Appendix 2 appraisal report a copy of his notification to such owner of such opportunity to accompany the Appraiser, certified by the Appraiser to h~ve been delivered to such owner personally or by certified or registered mail not less than seven (7) days prior to his inspection of the property. In the process of inspecting property, the Appraiser shall, to the extent practicable, ascertain the rights of all parties in possession and note for consideration all factual information and comments furnished by the owner or his representative relevant to the · appraisal. If the Appraiser's inspection or investigation discloses a sale of a portion of a pa~ce! by an unrecorded contract ~of sale or otherwise, the Appraiser shall furnish separate reports for each separately owned portion of the parcel. If another appraiser is also to appraise the same property, the Appraiser may make his inspection with such other appraiser, but must otherwise prepare his appraisal report independently. 3.3 Valuation Data. Make such investigations, studies, and property inspections as are appropriate to enable the Appraiser to derive sound conclusions and to prepare the appraisal reports to be fumuaished under this agreement. The Appraiser shall ascertain the most recent sale of each oroperty appraised and any other sales of such property during the last five (~) years preceding the appraisal and shall investigate any recent offer or offers of the ov~_.er to sell his property. Such sale or sales of the property appraised and all recent sales of other properties that are sufficiently comparable to the property being appraised to be considered by the Appraiser in forming his opinion of fair market value shall be verified insofar as practical. Each such verification shall include inspecting the property and interviewing the seller, buyer, agent, or other person, who participated in the transaction, to ascertain the consideration paid, the terms and conditions of the sale, amj special factors affecting the amount of the sale price, and the actual character and condition of the property at the time of sale. 3.~ TestimoNy in Judicial ProceedinMs. Testify as an expert witness in behalf of the Agency in any judicial proceedings involving any property appraised under this agreement. Such services shall include such reasonable time as may be required for reinspection of the property, updating the Appraiser's valuation, participation in pretrial conferences with counsel for the Agency, and testifying in the judicial proceeding. 3.~ Modification of Delivere& k~oraisa! Re~crts. X~dify or fu_~r!sh supplements to any appraisal report furnished hereunder, without additional cost to the A~ency, if (a) applicable principles of law with respect to the valuation of the property require the modification or supplementing of such appraisal, (b) material omissions, inaccura- cies, or defects in the appraisal report are discovered after delivery and acceptance of the report by the Agency, or (c) the Appraiser 1/73 Page HUD-W'~sh., D. C, 1320'1 Appendix receives or becomes aware of relevant additional appraisal information in existence prior to the date the Appraiser signed the report. If there is a significant delay between the date of valuation and the date of acquisition of any parcel or if the property has been m~teri- ally altered since the appraisal by a fire, a revised determination of the boundaries or the interest to be acquired, or other cause, the Appraiser shall, if requested by the Agency, furnish the Agency a supplementary report updating his valuation and the supporting data and analyses to a current date. The compensation for such updating of an appraisal shall be determined in accordance with Article 6 hereof. 3.6 Reservations in O~mers. Furnish the ~ency, if requested by the Agency, the Appraiser's esti~te of the value of any right or interest proposed to be reserved by the ovmer in a property appraised by the Appraiser, including such reservations as mineral rights, an easement for access to other property of the ovmer, the right to continue occupancy for an extended period after the Agency acquires the property, or the right to remove any building, structure, fixture, or other improvement, or a part thereof, at the owner's expense and without cost to the Agency. The compensation to be paid to the Appraiser for furnishing any such valuations, and such data and analyses as may be required to support the valuations, shall be determined in accordance with Article 6 hereof. 3.7 Retention of Appraisal Records. Retain a copy of each appraisal report and all notes and records germane to the appraisal for three (3) years after delivering the appraisal report to the Agency or until the property is acquired by the Agency or its proposed acquisi- tion of the property is abandoned, whichever is the later. 3.8 Consultation with A~enc~. Advise and consult with the Agency and its legal counsel regarding services oerformed and to be performed by the Appraiser and the real property acquisition aspects o£ the Agency's plans mud programs as related to the properties involved in this agreement, at such time or times as may be mutually convenient for the parties to this agreement, without ~dditional charge to the A~ency. The Appraiser shall initiate such consultations whenever he is in doubt as to whether an element of property is real or personal property or needs legal advice on ~ny aspect of the appraisals to be furnished under this agreement. There shall be no charge by any party for such consultations. ARTICLE 4. Contents of Appraisal Reports. The appraisal report or reports to be furnished by the Appraiser to the Agency in accordance with this agreement shall contain certain information and the Appraiser's conclusions and opinions, together with the data and analyses by which they were derived, as set forth below. A separate report shall be submitted for each parcel as defined in Article !. However, if the [Page ~ HUD-Wash., D~ C. 1/73 Appendix 2 Appraiser is to appraise several parcels in the same general area, he may also prepare and submit a separate overall report and data volume and use it as a data source and reference in the separate appraisal reports on the individual parcels. The appraisal report on each parcel shall consist of a cover sheet as provided in Paragraph 4.1, followed by a report furnishing the Appraiser's opinions and conclu- sions and the data and analyses on which they are based. The appraisal report on each parcel shall include the following: 2.1 }ppraisal Summary.. A cover sheet headed "Appraisal Report for (name of the Agency)," which may be a printed form, completed to provide the following: a. Project name and number. b. Date of the report. Parcel number, address of the property, brief identification of the interest in the property appraised, and the name of the owner or owners. de Date or dates of the Appraiser's inspection of the property with the owner, owners, or the owner's designated represen- tative, including the name of each owner or representative of an owner who accompanied the Appraiser during his inspection and the interest held in the property or representative capacity of each such person. Identify any owners of a compensable interest in the property, who were not present or represented during the Appraiser's inspection, including identification of the interest in the property held by each such owner. For each u~represented owner, include in the narrative portion of the appraisal report the evidence of notification required by Paragraph 3.2 of this agreeme~ and any further explanation deemed appropriate. ee The Appraiser's estimate of the fair market value of the property and the fair market value of the same interest in the land, if vacant. Any other fact or conclusion from the Appraiser's report which the Agency requests the Appraiser to include on the summary page. ge The timiting conditions of the appraisal, which may include assumptions (1) that the title is good and ~e.vketable, (2) that no responsibility is assumed by the Appraiser for legal matters, especially those affecting the title to the property, (3) that the legal description of the property and the interest therein to be appraised, furnished to the Appraiser Page 6 HUD-w ~:;h., D. C. 132o.1 Appendix 2 by the Agency, is cormect, amd (4) that no survey of the property has been made. Any other appropriate assumption or l~Jting condition may be added if it has been specifically approved in w?iting by the Agency. he The certifications of the Appraiser (i) that he personally made a thorough inspection of the property, (2) that, to the best of his knowledge and belief, every~hin~ contained in the report is true and no relevant and important' fact has been omitted, (3) that neither his employment nor his compensation is contingent on the valuation reported, and f4) that he has no past, present, or prospective interest including that of real estate agent or broker) in the property, the parties involved, or any other interest that would conflict in any way with the services performed or the making of am impartial report. A certification that, in the Appraiser's opinion, the fair ~ket value of the property is (au amount to be stated) as of (the date of valuation determined in accordance with Paragraph 2.4 of this mgreement). j. The signature of the Appraiser. 4.2 Ownership.. The name and axid_ress of the owner of the property amd the name and the address, if known, of any other party known or believed to hold a separate compensable interest in the property. For any party listed as holding a separate compensable interest in the property, furnish a description of the interest when providing the property delineation in accordance with Paragraph 4.3 hereof. 4.3 Delineation of property. The street address of the property and au accurate legal description of the real property and the interest therein appraised. The property description shall identify all conditions, restrictions, easements, servitudes, amd reservations affecting the title, but not mortgages, special assessment levies, or other liens securing the payment of indebtedness or claims against the owner. The property delineation shall specifically exclude and describe any separately held interest in the real property, which under the definition of "parcel" in Article I is to be appraised and acquired either separately or as an appurtenance of another parcel to be acquired. The description shall also specifically exclude all separately held interests which are not to be acquired and will not be~affected adversely by the Agency's project. If there are any separately held interests in a parcel, which are to be acquired with other interests in the same parcel, such as leaseholds, tenant-owned improvements, life estates, easements, amd wgter, gas, oil, or ~ueral rights, furnish a description of each separate interest comprising part of the property appraised amd the name of its owner. Page 7 1/73 HUD-WCsh., D. C. Appendix 2 4.4 Off-Record Title Information. Information with respect to out- ataudin~ interests or i~truments affecting the title, but not of record, such as leases, contracts of sale, and other interests or rights of parties in possession. Such information shall be reported, amd if the facts obtainable by inquiry and inspection gte sufficient, the Appraiser's report shall be based on such additional title information and so noted in the appraisal report. Otherwise, the Appraiser shall refer the matter to the Agency and defer completion of the appraisal until the question is resolved. . 4.~ Inventory of Imorovements. An inventory identifying each building, structure, or other improvement, including movable and ~ovable building equipment and other fixtures considered to be part of the real property. Tom thepurpose of delby!ting the real property improvements, any building, structure, fixture, or other improvement, which would be real property if or,ned by the owner of the land, shall be considered to be real property notwithstanding the right or obligation of a tenant, as against the owner of any other interest in the real property, to remove such building, structume, fixture, or other improvement, at the expiration of his term. The ownership of any improvement by auyone other than the land owner shall be identified on the inventory. In the case of a commercial, industrial, institutional, governmental, or farm property involving substantial quantities and kinds of fixtures, such as machinery and equipment, a property analysis shall be made in accordance with Paragraph 2.6 hereof. The property analysis shall be submitted to, and be approved by, the Agency before completing the appraisal and, as approved by the Agency, shall be included as an exhibit in the Appraiser's report. 4.6 Property Analysis.. A property ~analysis when required in accordance with Paragraph 4.~ hereof. The property analysis shall list, identify, and classify as to ownership and type of improvement, g!l items of physical property considered to be part of the real property. The property analysis shall also identify tangible personal property located on the premises to the extent reasonably necessary to prevent misunderstandings as to what is regarded as being real or personal property. Buildings including appurtenant mov~bte building equipment, structures, other improvements, and fixtures, including their accessories and spare parts, sh~l! be identified and classified as to ownership and type of property as follows: g. Ownership. (!) Owner of the land. (2) Each tenant in occupancy. (3) Each non-occupant o~mer of any fixtures or other improvements, or personal property on the premises. 1/73 Page 8 HUD-V~sh., D. O. Appendix 2 b. Type of property. (1) Bu/lding, structure, or other fixed improvement. (2) Building equipment, movable. (3) Fixtures, classified as to whether economically movable for reuse, movable for salvage only, or immovable. Personal property, identified as to types aud approx~m~.te amounts, or otherwise, as needed to obviate misunder- standings as to the classification of any item. If any building, strmoture, or other improvement is not to be acqu/red, will not be adversely affected by the Agency's project, and will not be required by the Agency to be removed, such as a pipeline in an easement not to be acquired, such improvement shall be identified as excluded from the appraisal. 4.7 ~ropertM Data. Description of the property, including information pertinent to the appraisal with respect to such matters as (a) the environment and location of the property, (b) the zoning and any restrictive covenants, conditions, or servitudes affecting the available use or occupancy of the land, (c) the assessed value of the real property and the current annual real estate tax burden, (d) the use and occupancy of the property at time of appraisal, (e) the public improvements, services, and utilities serving and providin~ access to the property~ ~f) the character, topography, dimensions, and area of the land, (g) the freedom of the property from or susceptibility to special hazards, (h) the current rental and rental history of the property, if rented, (i) the estimated annual costs of ownership and for operation audmaintenance of the property, and a description of the buildings, structures, fixtures, and other improvements, if any, appurtenant to the land, including relevant information as to type of improvement, designed use, construction materials and finish, equipment, dimensions, floor area, ~ge, condition, space or room arrangement, functional utility, and auy other characteristics or attributes of the improvements germaine to the value of the real property. The appraisal report shall contain a sketch plat showing the shape and dimensions of the land, the location of the principal improvements on the land, the location of any ease- ments in the land, and the abutting streets, alleys, or other public rights of way. The report shall also include such exterior and interior photographs, each clearly identified, as are appropriate as part of the description of the property. Page 9 t/73 HUD-Wash., D. C. Appendix 2 4.8 Le~t. aud Title Matters Affectin~ Value. Report of any official citations or personal observations by the Appraiser of any condition or occupancy of the property in violation of law and any other legal or title matters affecting the available lawful uses or the value of the property. 4.9 Highest and Best Use. The Appraiser's opinion as to the highest and best use for the property. The appraisal report shall also include the Appraiser's opinions as to any variations of such use and any other uses or kinds of use for which the property is reasonably suitable or adaptable. Any differences between the Appraiser's est~m~.te of highest and best use and the actual use of the property at the time of valuation shall be explained. If the highest and best use is self-evident and not materially different from the actual existing use, a statement to that effect will suffice. However, if the property is unused vacant land or the highest and best use is found to differ significantly from the present use, the appraisal report shall contain the analyses by which the Appraiser reached his conclusions as to the highest and best use and as to the relative suitability or adaptability of the property for any other available uses for which the property could reasonably be considered to be suitable or adaptable. The analysis of a potential use shall include consideration of relevant matters, such as the suitability of the location, the environment, and the legal and pk~sical attributes of the property for such use, the estimated cost, if any, of converting the property to such use, and the supply, sale price levels, and relative desirability of other properties that would compete for the same kind of use. Because the Appraiser's finding as to the highest and best use is a conclusion that the property does not have a higher present value for any other use, the analysis of the property for the future use or uses found to be the highest and best use is part of the process of appraising the property mud, therefore, may be included in the valuation analysis furnished in accordance with Paragraph 4.10 hereof. 4.10 Pr.operty Valuation and Appraisal Analysis.. The opinion of the Appraiser as to the fair market value of the property. The appraisal report shall contain a description of the reasoning process used by the Appraiser in reaching _his conclusion as to value and all data and analyses needed to explain and support his valuation. The supporting data and analyses fu_~aished in the appraisal report shall include, among other things, the following: An analysis of the property, as identified and described in accordsnce with the preceding paragraphs of this Article 4, from the point of view of evaluating the effect of its characteristics and attributes on its value for the available use or uses for which the property is best suited. Partic~a~ 1/73 Page 10 HUD-W=sh. D. C. 1320.! Appendix 2 attention shall be given to the characteristics of the property most relevant to its value, such as, in the case of an investment property, the income potential and the expenses of o~nership, maintenance, and operation. Evaluation of information with respect to previous sales of the property appraised and any recent offers of the owner to sell the property. The data and the analyses that constitute the principal basis for the Appraiser's opinion of the fair market value. Information shall be furnished with respect to recent sales of other properties which are considered by the Appraiser to be comparable with, smd to provide useful evidence of the value of, the property appraised. The information furnished with respect to each such comparable property and its sale shall include, among any other pertinent facts, the names of the grantor and grantee, the date of the sale, the sale price, any special terms or conditions or circumstances of the sale that affected the transaction, and a description of the property and its condition at time of sale in sufficient detail for use in comparing it with the property appraised. The appraisal report shall contain the Appraiser's analysis of each comparable property amd its sale in relation to the property appraised. The Appraiser's a~ualysis in each case shall reflect consideration of, and appropriate allowances for, the difference in the time of the sale and the date of appraisal and the differences in the utility, desirability, and productivity of the properties that are pertinent to their relative value. The aopraisal report shall contain a valuation data map showing t~e location of the property appraised and the comparable properties referred to in the appraisal report. All other information, analyses, and estimates considered by the appraiser to be relevant to the estim~tion of the fair market value of the property. If the property appraised is part of a larger parcel in the same ownership or is less than the entire interest of the owner in the property, the appraisal report shall contain the Appraiser,s opinion of just compensation for a taking of such property or interest, using the before-and-after method of valuation as interpreted under State !aw un!ess it is obvious that there would be no damages or benefits to the remaining property or interest of the owner. However, if the part or interest to be taken is such a small part of the whole property that the damages for the taking can be more Page 11 MUD-w,ush., D. C. 1/73 Appendix 2 accurately estimated directly, that method may be used if permitted under State law, without estimating the fair mamket value of the entire property of the owner. The foregoing opinions of the Appraiser shall be supported in his report by the data and aualyses by which he reached his conclusions. The appraisal report shall also contain, for information pu_vposes only (unless required by State law), the Appraiser's estimates of the fair market value of the to-be-acquired part or interest as part of the whole property and the net d~s or benefits to the remaining property of the owner. If in the opinion of the Appraiser, acquisition of the part of, or interest in, the property proposed for acquisition would leave the owner with an uneconomic remnant, the Appraiser shall furnish a separate estimate of the fair market value of the entire property and interests of the owner unless informed by the Agency that it does not have authority legally to acquire the remnant. A remainder parcel or interest shall be considered to be an uneconomic remnant if by itself it is not capable of being used economically. f. Such maps, plans, photographs, or other exhibits, as necessa-~y, to explain or illustrate the analyses of the Appraiser. g. The Appraiser's evaluation of the indications of value deduced from his separate analyses of the v~rious evidences of value and an explanation of how he reached his final conclusion as to the fair market value of the property. ~.ll Land Value. The opinion' of the Appraiser as to the fair market value of the land, if vacant. The valuation shall be for the same interest in the land as is to be acquired in the real property. The report shall contain information with respect to the available use or uses for which the land would be suitable if vacant, the opinion of the Appraiser as to its highest and best use, and the Appraiser's analysis of the evidences of value and of the use potential by which he reached his conclusions as to the highest and best use and the land value · ~.12 Additional Findings in Certain Cases. Additional conclusions, if applicable, as follows: a. Parcels Comprised of Independently Marketable Properties. If the parcel is marketable as two or more separate properties, the appraisal report shall, in addition to furnishing the Appz-aiser's opinion of the fair market value of the entire parcel, identify each separately m_~rketable property by street address and the actual or an assumed suitable legal description and provide a separate estimate of the fair market value of each such separately marketable property as 1/73 Page 12 MUD-Wash., D, C. z32o.1 Appendix 2 an independent property. The appraisal report on the entire parcel in such a case may be presented as sepa~rate reports, one for each separately marketable proper~y, with an overall report on all such properties considered as a single property. Any difference between the sum of the Appraiser's opinions of the fair market value of the separately marketable properties and his opinion of the fair market value of the entire parcel shall be explained. S. eparatel~ Held Interests. If there are separately held interests in the real property to be acquired, such as ease- ments, leaseholds, air rights, life estates, and oil, gas, or mineral rights, and the division of o%a~ership is not of such character as to destroy the practical u~ity of the property, the Appraiser shall apportion his estimate of the fair market value of the property (all interests therein to be acquired) to each separately held interest. If a tenant owns any real property improvements which he has the right or obliga- tion to remove at the expiration of his term, the apportion- ment between the landlord and the tenant shall be made in accordance with Par~raph c. below. The report shall contain the data, analyses, and reasoning by which the Appraiser m~de the apportionment. If the "unit rule" is regarded as not applicable because the division of ownership is such as to diminish the fair market value of the property as a whole, the separate interests involved shall be appraised separately. Tenant-Owned Improvements. If any buildings, structures, fixtures, or other improvements, comprising pa~rt of the property appraised are identified, as provided in Paragraph 4.~ of this agreement, as being the property of a tenant who has the right or obligation to remove them at the expiration of his term, the Appraiser shall apportion his estimate of the fair market value of the real property appraised, inc!ud- ing the property of each such tenant, to the landowner and the tenant or tenants so that the amount apportioned to each tenant for his interest in the real property will be the greatest of (1) the fair market value of the tenant's lease- hold interest in the property, (2) the amount which the tenant's property contributes to the fair m~rket value of the property as a whole, or (3) the fair market value of the tenant's improvements for removal from the property. The appraisal report shall state the basis for the valuation of each tenant's interest and furnish the data and analyses on which such valuation was ma~e. Pa~e 13 1/73 HUD-Wc~$h., D. C. Appendix 2 Ow~er-Occu~aut in a Multifamily or Mixed-Use Property. If the property is a multifamily or mixed-use (residential and nonresidential) property and the owner of a compensable interest therein, as defined in the next sentence, occupies a dwelling in the property, the Appraiser shall furnish an apportionment of his estimate of the fair market value of the whole property to such dwelling, or to each such owner occupied dwelling if more than one, and to the remainder, of the property. For the purpose of this paragraph, au occupant of a dwelling shall be considered to own a compensable interest in the property if he holds fee title, a life estate, a 99-year lease, or a lease with not less than 50 years to run from the date of valuation, or holds an interest in a cooperative housing project which includes the right of occupancy of a dwelling unit therein, or is the contract purchaser of any of the foregoing estates or interests, or has a leasehold interest with option to purchase. The Appraiser's report shall explain how he made the apportion- ment and the rationale therefor. Fixtures. If machinery and equipment or other fixtures used in a trade or business, farm operation, or institutional or governmental function constitute part of the real property appraised, the appraisal reoort shall contain, or provide ~s an exhibit, a separate schedule and report, which shall provide sepsrate estimates for each such item, as prescribed below. If there is more than one o~er of such items, a separate schedule shall be furnished for each owner. The information and conclusions to be furnished on each item are as follows: (2) Description of the item, including, as appropriate, the manufacturer, model and serial numbers, size or capacity, age and condition, and degree of obsolescence. Accessories and spare parts, special fo~uadations, and power wiring and process piping generally should be listed separately, following the listing of the item or items to which they apply. Estimate of the replacement cost installed of the item as listed smd identified, excluding any elements thereof listed separately. (3) Basis of estimated replacement cost: new or used equipment purchase. 1/73 ?a e F~UD-W~:sh., D. C. !320.1 Appendix (4) Estimated value in place for continued use as part of the real property, i.e., the contributive v~lue of the item to the fair market value of the real property as a whole. (~) Value in place as a percentage of the estimated replace- ment cost (Item 4 divided by Item 2). (6) Estimated cost to move--complete, including such expenses as disconnecting and reconnecting, packing or crating and unpacking, loading and unloading, cartage for a reasonable distance, hazard insurance covering the move, reassembly and readjustment, and all re- installation costs (less a credit represented by the reported in-place valuation for existing special foundations, power wiring, or process piping). (7) Estimated fair market value of the item for removal from the property at a purchaser's expense. Such value shall be considered to be the probable selling price if the item were offered for sale for removal from the property at the purchaser's expense, allowing a reasonable time to find a purchaser buying with knowledge of the uses and purposes for which it is adaptable and capable of being used, including salvage for serviceable components and scrap when there is no reasonable prospect of a sale except on that basis. The items listed in the schedule or schedules of estimates sh~ll be consistent, as to both the items covered and their ownership, with the property analysis approved by the Agency, as provided in Paragraph 4.5 hereof. In developing estimates for la~ge or relatively ur~que installations, the Appraiser is ex-pected, and is hereby permitted, to use the semu~ices of a professional rigger a~.d such other technical specialists as may be needed to enable the Appraiser to provide valid estimates and sound valuations. The schedules shall be accompanied and supported by an explanation of the procedures followed in gathering the necessaz~Y market information and technical data and in m~king the estimates and valuations reported. The orincipal purpose of the Appraiser's acoompanying narrative, however, ~ust be to explain his analyses and his evaluations of the principal evidences of the dollar amount of the overall contribution of the machinery, equipment, and fixtures to the fair market value of the real property as a whole. The narrative should also explain the principal factors and data considered in deriving the v~lue est~es for particular items of high value or unusual character. The report shall contain any layout plans, sketches, or photographs that are reasonably necessary for locating or identifying the facilities or illustrating the Appraiser's analyses. Pa~e 15 1/73 Appendix 2 ARTICLE 5. Services To Be Provided b~ Ag. ency. The Agency agrees to .furnish the Appraiser the following: 5.1 Parcel Yap. A map or plat, based on official records, of the property described in Article t hereof, showing the boundaries and dimensions of the parcels to be appraised. Each parcel shall be designated by a number, and the parcel numbers shown on the Appraiser's reports shall correspond to the parcel numbers shown on the map or plat, except that additional parcel numbers may be assigned, by the Appraiser for easements appraised separately or for additional parcels revealed while making the appraisals. 5.2 0~mership Data. An o%mership data report for each parcel, which report will show all estates and interests in the parcel as sho~n of record and consequently shall not be assumed to define the interest to be appraised or any separation of interests for appraisal purposes required by the definition of "parcel" in Article 1 hereof. The o~caership data report on each parcel as shown on the parcel map shall include: The name (and, if known or shown of record, the address) of the ostensible ovmer as it appears of record; The legal description of the parcel as sho%'m by the conYeyam, ce or conveyances or other instrument by which the record ovmer acquired title; Identification of the conveyance or conveyances, or other instrument by which the present owner acquired title, including: the date thereof; the date, book and page numbers, and place of recordation; the name (and, if known or sho~m of record, the address) of the grantor of such conveyance; the stated consideration; the amount of any mortgages or encumbrances placed of record or to which title was subject at time of conveyance (so far as determinable from an examination of such conveyance); and the amount of any State or local transfer taxes, based on the amount of the consideration, paid in connection with the transfer of title; Outstanding estates and other rights or interests of record, including easements, use restrictions, mineral rights, leases, and any known, but unrecorded, interests of other parties. Sufficient information shall be furnished to disclose the probable effect of such outstanding interests on the title of the record o~mer; Outstanding special assessments, if any, for public improve- ments such as streets, sidewalks, public utilities, and similar public facilities; 1/73 Page 16 HUD-%.n;h., D. C. Appendix 2 The ~nount of real estate taxes for the current year and the assessed valuation stated separately for land and for improve- meEts. 5.3 .~egal Advice. Advice, upon request of the Appraiser, on legal m~.tters agfecting the appraisal of auy property to be appraised. ARTICLE 6. Payment. In consideration of the undertakings and agree- ments on the part of the Appraiser contained in this agreement, the Agency a~rees to make payments to the Appraiser upon completion by the Appraiser of services to be provided hereunder and the submission to the Agency of properly certified invoices therefor, as follows: 6.1 For appraisal services and reports furniehed by the Appraiser in accordance with Paragraph 3.1 hereof and accepted by the Agency, and for all other services furnished in accordance with Article 3 hereof, except services furnished in connection with judicial proceedings as provided in Paragraph 3-4 hereof, the updating of appraisals as provided in Paragraph 3.5 hereof, and services furnished in connection with reservations of rights in owners as provided in Paragraph 3.6 hereof, the lump sum of $200/~ar¢$~.. dollars, which sh~ll constitute full payment to the Appraiser for all of said services and for all supplies, materials, and equipment used or furnished by the Appraiser and all expenses incurred by the Appraiser in or in connec- tion with the performance of said services. 6.2 For services furnished by the Appraiser in connection with judicial proceedings as provided in Paragraph 3.4 hereof, (except services as au expert witness in such a proceeding), for the updating of appraisals as provided in Paragraph 3.5 hereof, and for services furnished in connection with reservations of rights in owners as provided in Paragraph 3.6 hereof,. $2$/hour dollars per hour or fraction thereof actually engaged in perform~ug the services, including travel time. Any and all expenses of the Appraiser, including travel expense and subsistence, shall be borne by the Appraiser. 6.3 For services as au expert witness for the Agency in judicial proceedings as provided in Paragraph 3.4 hereof, with respect to any property appraised by the Appraiser pursuant to this agreement, the Appraiser and the Agency hereby agree that the fair and reasonable compensation for the Appraiser's services shall be $%00 dollars for each day's attendance in court. ARTICLE 7. Representations and Agreements of Appraiser. As an inducement to the execution of this agreement by the Agency and in consideration of the agreements to be performed by the Agency, the Appraiser represents aud agrees that: Page 17 HUO-W~:sh,~ D, C, 1/73 Appendix 2 7.1 .~ualifications. The Appraiser is qualified to perform the services to be furnished under this agreement and is duly authorized or permitted by or under law to perform such services, and all personnel engaged in the work shall be qualified and so authorized or permitted to do the work they perform. Attached hereto as Exhibit B, and hereby made a part of this agreement, is a statement by the Appraiser, certified by him to be true and correct, setting forth his technical qualifications, general appraisal experience, specific experience in appraising properties of the type involved in this ~eement, the courts in which he has testified as an exp%rt witness, and other information pertinent to establishing his technical qualifi- cations. 7.2 Solicitation or Procurement of. Agreement. The Appraiser h~s not employed any person to solicit or procure this agreement and has not made, and will not make, any payment or any agreement for the payment of any co~ission, percentage, brokerage, contingent fee, or other compensation in connection with the procurement of this a~reement. 7.3 Interest of Appraiser aad Appraiser's Employees. The Appraiser does not have any interest (including that of rezl estate agent or broker), direct or indirect, present or prospective, in any property described in Article t hereof or in the sale thereof, or any other interest, whether or not in connection with said property, which would conflict in any manner or degree with the performance of the services and the submission of impartial reports, and has not employed and will not employ, in connection with the services to be furnished here~uder, any person having any such interest, and until such property is acquired by the Agency or excluded from its project or projects by resolution of its governing body, the Appraiser and any employees of the Appraiser, so long as they are employed by the Appraiser, will not acquire any such interests and will not, for their own account or for other than the Agency, negotiate for any of said property, perform services in connection with said property, or testify voluntarily ~s a witness in a condemnation or other proceeding with respect to such property. 7.~ Services To Be Cor~idential. Ail services, including reports, opinions, and information, to be furnished under this a~reement are confidential and shall not be divulged, in whole or in part, to any person, other than to duly authorized representatives of the Agency, without prior written approval of the Agency, except by testimony under oath in a judicial proceeding or as otherwise required by law. The Appraiser shall take all necessary steps to ensure that no member of his staff or organization divulges any information conoerning such appraisals or services except as provided above. 1/73 P~ge 18 HUD-~¥m~h., D. C. Appendix 7.~ Facilities and Personnel. The Appraiser has and will continue to have proper, facilities and personnel to perform the services and work a~reed to be performed hereunder. If the Appraiser proposes to employ any person or persons to make a~y appraisals of machinery and equipment or other specialized elements or attributes of a property appraised under this ~greement, the emp!oymen~ of smch person or persons for such purpose shall not place the Agency under any obiig~tion to such employee, nor relieve the Appraiser of full responsibility for the faithful performance of the services to be furnished hereunder. 7.6 Equal Emplo,yment C~portunit~. During the performance of this s~reement: a. The Appraiser will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Appraiser will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regs~rd to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; z~tes of pay or other forms of compensation; and selection for tr~- lng, including apprenticeship. The Appraiser agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Agency setting forth the provisions of this nondiscr~iuation clause. b. The Appraiser will, in all solicitations or advertisements for employees placed by or on behalf of the Appraiser, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 7.7 Assignment. The Appraiser's rights, obligations, and duties under this agreement shall not be assigned in whole or in part, but this shall not prohibit the assignment of the proceeds due or to become due hereunder to a bauk or financial institution. This agree- ment may be assigned by the A~ency to any corporation, agency, or instrumentality having authority to accept the assignment. 7.8 Subcontracting. None of the work or services covered by this agreement shall be subcontracted without the prior approval of the Agency. P~ge 19 HUD-Wcsh., D. C. 1/73 Appendix 7.9 Records. The Appraiser will maintain records of all details ~with respect to the services to be performed hereunder, including one complete copy of each report, for three (3) years after delivering such report, or until the property covered by the report is acquired, or its acquisition is abandoned, by the Agency, whichever is later. 7.10 Affidavits of Compliance. The Appraiser will, if requested by the Agency, furnish the ~gency affidavits certifying as to compliance with any or all of the provisions of this Article 7.~ ARTICLE 8. Chan~es .,, The Agency, at auy time by written notice to the Appraiser ma~ modify the scope or quantity of the services to be fu-~nished under this agreement. If such changes cause an increase or decrease in the amount of services to be provided by the Appraiser or in the time required for their performance, equitable adjustment shall be made in the provisions of this agreement for payments to the Appraiser or for the time for performance of the services or for both, aud this agreement shall be modified by agreement of the parties accordingly. ARTICLE 9. Termination of Agreement for Cause. If, through any cause, the Appraiser shall fail to fulfill in a timely and proper manner his obligations under this agreement, or if the Appraiser shall violate any of the covenants or agreements thereof, the Agency may upon written notice to the Appraiser terminate the right of the Appraiser to proceed under this agreement or with such part or parts thereof as to which there has been default, and may hold the Appraiser liable for any damages caused to the Agency by reason of such default and termi- nation. In the event of such termination, any completed reports prepared by the Appraiser under this agreement shall, at the option of the Agency, become its property and the Appraiser shall be entitled to receive equitable compensation for any work completed to the satisfaction of the Agency. The Appraiser, however, shall not thereby be relieved of liability to the Agency for damages sustained by the Agency by reason of any breach of the agreement by the Appraiser, and the Agency may withhold any payments from the Appraiser for the purpose of setoff until such time as the amount of damages due the Agency from the Appradser is determined. The Appraiser sh~ll not be held liable for damages under this Article solely for reasons of delay if the delay is due to causes beyond the control and without the fault or negligence of the Appraiser, but this shall not prevent the Agency from terminating this agreement because of such dela~v. ARTICLE 10. Interest of Members of Agenc~y. No member of the Agency shall participate in any decision relative to this agreement affectLug, directly or indirectly, his personal interests. No such member and no other officer, agent, or employee of the ~ency having any responsibil- ity or function in connection with this agreement shall have any private interest, direct or indirect, in this agreement or the proceeds thereof. 1173 Page 20 HUD-W~sh., D. C. Appendix 2 ARTICLE 11. Officials Not To Benefit. No Member of or Delegate to the Congress of the United States of America, and no Resident Commissioner, shall be aSm~tted to any share or part of this wee- ment or to any benefit to arise from the same. ARTICLE 12. Notices. Any action, notice, or request taken, given, or made by the Agency hereunder may be taken, given,, or mad~e by or such other person or persons as the Agency may,Jby written {~otice to the Appraiser, designate for such purpose. All notices given or made to the Appraiser hereunder shall be deemed to be duly and properly given or made if mailed to the address specified below, or delivered personally to the Appraiser. All notices or other papers given or delivered to the Agency hereunder shall be deemed to be sufficiently given or delivered if ma~iled postage prepaid, to ~h~ ~¥ A~~ or to such other representative' or ~ddress as the Agency may designate to the Appraiser in writing. IN WITNESS WHEREOF, the Agency and the Appraiser have executed this a~reement on or as of the date first above written. (Street Address) (City) ' (State) (ZIP Code) G. Nawrocki Br~ce Malcolm O. Watson City Manager Pa~e 21 HUD-Wcsh., D. C. 1/73