ITEM 7.4 Nagell Appraisal ConsultingTY OF
ot�eoo
MINNESOT
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/ Finance Director
Flaherty
January 8, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
City Administrator/ Finance
Director Flaherty
City Attorney MacArthur
7.4
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council accept the engagement letter from Nagell Appraisal &
Consulting for appraisal and valuation services of City owned parcels.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROU N D/JUSTI FICATION:
As outlined in the Guardian Angels Riverview Landing development agreement, Outlots C & D have been
deeded to the City. The outlots will be held by the City for future resale and commercial development.
As directed by the Council, City staff has obtained an engagement letter for appraisal and valuation
services. Having an appraised value determined on the developable lots will provide the City vital
information in marketing the two parcels for future development.
The City Council may also wish to extend the services outlined in the engagement letter to the parcel
owned by the City within Great River Centre 4th addition.
SUPPORTING DOCUMENTS ATTACHED:
• Engagement Letter — Nagell Appraisal & Consulting
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to accept the engagement letter from Nagell Appraisal & Consulting and authorize the City
Administrator to execute the document.
BUDGET INFORMATION
FUNDING:
BUDGETED:
Fund #101— General
This expenditure was not specifically budgeted
101-46580-390
for; however, $5,000 was budgeted for in this
account for economic development related
services such as these.
NAGELL APPRAISAL & CONSULTING
12805 Highway 55 Minneapolis: 952-544-8966
Plymouth, MN 55441 St. Paul 651-209-6159
Established in 1968 Central Fax 952-544-8969
Client: City of Otsego December 6, 2017
Attn: Andrew MacArthur, City Attorney
3601 Thurston Avenue North, #103
Anoka, MN 55303
RE: Appraisal of Outlots C & D of Riverview Landing (Real Estate Only)
Otsego, MN
Dear Andrew:
Thank you for your interest in obtaining appraisal services regarding the property above. Per our
conversation you indicated a report with the following research and analysis is needed.
Report Use: The report use is for decision making for marketing purposes.
Value Type: Market value of the overall property and an allocated amount for the portion owned by the city,
per highest and best use per Uniform Standards of Professional Appraisal Practice will be provided.
Property Description: Two commercial outlot with 1.14 acres and 0.90 acres, see attached exhibit.
Contact for access: N/A.
Scope of Report: (1) View the property and neighborhood. (2) Report the physical and/or economic factors
that could affect the property. (3) Appropriate research, collection, verification, analysis and viewing of
pertinent market data will be conducted. The applicable approach(s) to value will be applied. (4) Report
findings and conclusions. Two separate values in one report.
Report Format: An Appraisal Report (summary narrative format) will be used. It has a summary of
statements of the data, analysis and conclusions. Appropriate photos, maps and exhibits are included. An
electronic (PDF) copy of the report will be provided.
Fee: The fee is $1,200 plus $200 for the second value, total $1,400. Named client is responsible
payment upon delivery of appraisal.
Due Date: The report can be completed in about 3.5 weeks from confirmation.
Information needed by the appraiser: Already provided.
Our Company: has 11 employees and has been in business since 1968 and has sufficient knowledge,
experience, education, contacts and resources to competently complete this assignment. Neither the
employment to make the appraisal, nor the compensation for it, is contingent upon the appraised value of
the property. If you agree to the above terms, please sign below and return by fax or mail. If you have any
additional questions, please do not hesitate to contact me.
Sincerely,
l' Signature
William R. Waytas
Certified General 4000813, MN Date
www.nagelimn.com