ITEM 3.12C Great River CentreOtsTeF o
MINNESOTA D
DEPARTMENT INFORMATION
Request for
City Council Action
ORGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Legal
Andy MacArthur, City Attorney
September 14, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent Agenda
City Administrator
3.12C
AGENDA ITEM DETAILS
RECOMMENDATION:
Staff recommends that the City Council approve execution of attached engagement letter for appraisals
of property adjacent to proposed road extension in Great River Centre.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes.
No.
BACKGROUNDMUSTIFICATION:
The City Council is authorizing a Feasibility Study for extension of a roadway in Great River Centre at this
meeting. In conjunction with the feasibility study there is the possibility of assessing benefited adjacent
properties for a portion of the project costs.
In order to ascertain the benefit to the adjacent properties, the City needs to acquire a basis for that
benefit, if agreement cannot be reached with the property owners and the City needs to proceed with
an assessment hearing.
I have reviewed the project and appraisal requirements with Bill Waytas of Nagell Appraisal and
Consulting and he has prepared the attached engagement letters for full appraisals of the three (3)
affected properties for $1,500 per appraisal. This fee is consistent with the cost for the recent appraisals
on 70th Street.
SUPPORTING DOCUMENTS: x ATTACHED ❑ NONE
• Engagement letter.
MOTION: (Please word motion as you would like it to appear in the minutes.)
Motion to approve execution of Engagement Letter for appraisal services with Nagell Appraisal &
Consulting.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
NA o NO
ACTION TAKEN
NLL APPRAISAL & CONSULTING
12805 Highway 55
Plymouth, MN 55441
Established in 1968
City of Otsego
Attn: Andrew MacArthur, City Attorney
3601 Thurston Avenue North, #103
Anoka, MN 55303
Minneapolis: 952-544-8966
St. Paul 651-209-6159
Central Fax 952-544-8969
RE: Appraisal of 3 properties (Real Estate Only Appraised)
PID: 118096001040, owner Crag Enterprises LLC, 15901 85" Street NE, Otsego
PID: 118500233202, owner Zachman
PID:118500233200 & 118600224102
Otsego, MN
Dear Andrew:
September 10, 2015
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 assessment determination as it relates to a road improvement project by
the city.
Value Type: Current market values before the street improvement project and after the street improvement
project, as of the date of assessment will be provided to determine if there is any special benefit, as it relates
to the highest and best use to the above property per Uniform Standards of Professional Appraisal Practice
will be provided.
Property Description: See above PIDs.
Contact for access:
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.
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 each report will be provided.
Fee: The fee is $1,500 each ($4,500 total for 3 reports). Named client is responsible for payment upon
receipt. Any testifying and preparation, report revisions/update/upgrades are extra and billed at $150 per
hour.
Due Date: The report can be completed in 4 weeks from inspection.
Information needed by the appraiser: Project/parcel information, feasibility study.
Our Company: has 12 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,
Signatu
William R. Waytas
Certified General 4000813, MN Date_
www.nagelimn.com