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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
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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.
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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
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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;
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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,
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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.
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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.
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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.
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