ITEM 3.3 Appraisal of PropertiesIV
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DEPARTMENT INFORMATION
Request for
City Council Action
ORGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Legal
Andy MacArthur, City Attorney
April 24, 2017
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent Agenda
City Administrator
3.3
AGENDA ITEM DETAILS
RECOMMENDATION: Staff recommends that the Council approve the attached Engagement letter from
Nagell Appraisal & Consulting to appraise properties along 85th Street for that project, scheduled to be
constructed next year.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes.
No.
BACKGROUND/JUSTIFICATION:
The City has determined to move forward with the construction of 85th Street west of Nashua Avenue.
Construction is anticipated in 2018. The City must acquire right of way and easements from the affected
property owners. The City must make offers to the property owners based upon property appraisals.
In order to remain on schedule, the appraisals need to be done as soon as possible so that offers can be
made once the plans have been approved. City staff plans to meet with Nagell sometime in mid- May,
once the final right of way has been determined. We have requested that the appraisals be completed
by mid- July. We would like to have all right of way possible settled by October so that there is sufficient
time to go through the eminent domain (condemnation) process for any parcels that cannot be
resolved.
The City has used Nagell in the past on many occasions and there work has been excellent. $1,500.00
per parcel is the same rate they charged for appraisal of the 70th Street properties.
SUPPORTING DOCUMENTS: x❑ ATTACHED D NONE
Engagement Letter (Proposal) from Nagell Appraisal & Consulting.
MOTION: (Please word motion as you would like itto appear in the minutes.) Motion to approve Engagement Letter with Nagell
Appraisal & Consulting for appraisals of properties contained in the 85th Street Project. .
BUDGET INFORMATION
FUNDING: I BUDGETED: D YES
NA I o No
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
City of Otsego April 19, 2017
Attn: Andrew MacArthur, City Attorney
3601 Thurston Avenue North, #103
Anoka, MN 55303
RE: Apyraisal of 15 properties (Real Estate Only Appraised)
85 Street Extension
Otsego, MN
Dear Andrew:
Thank you for your interest in obtaining appraisal services regarding the property(s) above. Per our
conversation, you indicated report(s) with the following research and analysis is needed.
Report Use: The report(s) use is for eminent domain purposes regarding a partial acquisition and for
decision making by the city for making an offer to owner(s) as it relates to the city road project.
Value Type: A before and after market value of the property(s) as they relate to Highest and Best Use per
Uniform Standards of Professional Appraisal Practice will be provided. It does not appear at this time that
most of the existing building improvements will be adversely impacted, therefore, only the land value will be
provided. If upon inspection it is determined the improvements will be impacted it will be included in the
value. The fee below represents the overall average parcel rate which recognizes some parcels are more
involved than others.
Property Description: See attached.
Contact for access: City to provide.
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 ($22,500 total for 15 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 by mid July there is to be a meeting in May providing more detail
of the project.
Information needed by the appraiser: Project/parcel information.
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,
Signature
William R. Waytas
Certified General 4000813, MN Date
www.nagelimn.com
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