HomeMy WebLinkAbout[07a] 2015 Street Improvment Project
7(a)
Council Agenda Item
MEETING DATE:
March 16, 2015
AGENDA ITEM:
2015 Street Improvement Project
SUBMITTED BY:
City Engineer, Randy Sabart
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION:
The City Council ordered the improvement for the 2015 Street
Improvement Project.
BACKGROUND INFORMATION:
BUDGET/FISCAL IMPACT:
ATTACHMENTS:
Request for Council Action
Resolution 2015-008
Benefit Analysis Report
REQUESTED COUNCIL ACTION:
Authorize the Mayor and Administrator to execution Resolution
2015-008 authorizing advertisement for bids for the 2015 Street Improvement Project.
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DOCUMENT 00 11 13
ADVERTISEMENT FOR BIDS
2015 Bituminous Street Improvements
St. Joseph, MN
SEH No. STJOE 131108
Notice is hereby given that sealed Bids will be received by the City Administrator until 9:00 a.m., Thursday, April
9, 2015, at St. Joseph City Hall located at 25 College Avenue North, PO Box 668, St. Joseph, MN 56374-0668, at
which time they will be publicly opened and read aloud, for the furnishing of all labor and material for the
construction of 2015 Bituminous Street Improvements. Major quantities for the Work include:
8,300 SY Mill Bituminous Surface
6,625 SY Full Depth Pavement Reclamation
3,425 TON Bituminous Wearing Course
785 LF Concrete Curb & Gutter
30 EACH Adjust Manhole Casting
265 LF 12-Inch RCP Storm Sewer
3 EACH Construct Storm Sewer Structure
Bids shall be on the form provided for that purpose and according to the Bidding Requirements prepared by Short
®
Elliott Hendrickson Inc. (SEH) dated February 18, 2015.
The Bidding Documents may be seen at the Issuing Office of SEH located at:
1200 25th Avenue South
P.O. Box 1717
St. Cloud, MN 56302-1717
320.229.4300
Digital image copies of the Bidding Documents are available at http://www.sehinc.com for a fee of $30. These
documents may be downloaded by selecting this project from the PROJECT BID INFORMATION link and by
TM
entering eBidDoc Number 3729047 on the SEARCH PROJECTS page. For assistance and free membership
registration, contact QuestCDN at 952.233.1632 or info@questcdn.com.
Paper copies of the Bidding Documents may be obtained from Docunet Corp. located at 2435 Xenium Lane
North, Plymouth, MN 55441 (763.475.9600) for a fee of $80.
Bids will only be accepted from Contractors who purchase Bidding Documents as noted above.
Bid security in the amount of 5 percent of the Bid must accompany each Bid in accordance with the Instructions to
Bidders.
A Contractor responding to these Bidding Documents must submit to the City/Owner a signed statement under
oath by an owner or officer verifying compliance with each of the minimum criteria in Minnesota Statutes, section
16C.285, subdivision 3.
Bids shall be directed to the City Administrator, securely sealed and endorsed upon the outside wrapper, “BID
FOR 2015 BITUMINOUS STREET IMPROVEMENTS, ST. JOSEPH, MN, STJOE 131108.”
The Owner reserves the right to reject any and all Bids, to waive irregularities and informalities therein and to
award the Contract in the best interests of the Owner.
Judy Weyrens
City Administrator
St. Joseph, MN
Publish:
St. Cloud Times: March 19 and 26, 2015
Quest CDN: March 19, 2015
City Web Site: March 19, 2015
Advertisement for Bids
STJOE 131108 00 11 13 - 1
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r
CITY OF ST. JOSEPH RESOLUTION 2015-008
APPROVING PLANS AND SPECIFICATIONS AND
ORDERING ADVERTISEMENT FOR BIDS
2015 Street Bituminous Street Improvement(STJOE 131108)
WHEREAS, pursuant to a resolution passed by the council on February 18, 2015,the city engineer
(consulting engineer retrained for the purpose)has prepared plans and specifications for the
improvement known as the 2015 Bituminous Street Improvement. The project affects the
following area:
Subdivision Street Name From To
Clinton Village 6th Avenue NW Minnesota Street Birch Street NW
Clinton Village 7th Ave NW Ash Street NW Birch Street NW
Clinton Village Ash Street NW West City Limits 6th Avenue NW
Clinton Village Birch Street NW _West City Limits 6th Avenue NW
Northland 2❑d Avenue NE Fir Street North Plat Line
Northland Plat 2 3rd Avenue NE Fir Street Hickory Street
Northland Plat 3 4th Avenue NE Fir Street Gumtree Street
Northland,Northland Plat 2 Fir Street 1st Avenue NE 4th Avenue NE
and Plat 3
Northland,Northland Plat 2 Gumtree Street 2nd Avenue NE Northland Drive
and Plat 3
Northland,Northland Plat 2 Hickory Street 2nd Avenue NE 3rd Avenue NE
Northland Plat 2 and Plat 3 Hickory Court 3rd Avenue NE End of Cul-de-sac
The City Engineer has presented such plans and specifications to the council for approval;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH,
MINNESOTA:
1. Such plans and specifications, a copy of which is attached hereto and made a part hereof,
are hereby approved.
2. The City Administrator shall prepare and cause to be inserted in the official paper and in a
Construction Bulletin or Website an advertisement for bids upon the making of such
improvement under such approved plans and specifications. The advertisement shall be
published twice, one week apart, shall specify the work to be done, shall state that bids will
be opened 9:00 AM on April 9, 2015 and that the responsibility of the bidders will be
considered by the council on April 20, 2015, in the city council chambers of the city hall.
Any bidder whose responsibility is questioned during consideration of the bid will be given
an opportunity to address the council on the issue of responsibility. No bids will be
considered unless sealed and filed with the City Administrator and accompanied by a cash
deposit, cashier's check, bid bond or certified check payable to the City Administrator for
5%percent of the amount of such bid.
Dale Wick, Acting Mayor
Judy Weyrens,Administrator
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Report Type
Real Estate Consulting
Letter Report
Effective Date
March 7, 2015
Client Subject Property
Street Improvement Project
City of St. Joseph
Attn: Thomas Jovanovich, City Attorney Clinton Village: Birch Street W, 7th Ave NW, 6th Ave NW, Ash St W
1010 West St. Germain St. Joseph, MN
St. Cloud, MN 56301
Prepared By:
Ethan Waytas, Appraiser
William R. Waytas, Appraiser
Nagell Appraisal & Consulting, Inc.
File # V1503001 Clinton Village
12805 Highway 55, Suite 300
Plymouth, Minnesota 55441
Tel: 952.544.8966 | Fax: 952.544.8969
NAGELL APPRAISAL & CONSULTING
12805 Highway 55 #300 Minneapolis 952-544-8966
Plymouth, MN 55441 St. Paul 651-209-6159
Central Fax 952-544-8969
Established in 1968
__________________________________________________________________________
City of St. Joseph March 11, 2015
Attn: Thomas Jovanovich, City Attorney
1010 West St. Germain, #420
St. Cloud, MN 56301
To Thomas Jovanovich:
Per your request, this is a letter report is to assist the city for guidance regarding a potential street
improvement project within the city (see attached map for the location of the streets in the project). The
proposed project would reclaim the existing road infrastructure.
This report is not an appraisal, but rather provides a preliminary opinion of a general range of market
benefit, if any, to residential properties in the project area.
SCOPE OF ASSIGNMENT
In accordance with your request, a drive-by viewing of the properties has been made along with some
general market comments regarding benefit (if any) for the proposed street improvement project as it
relates to the subject market. As noted in the engagement letter, no specific sales data has been
collected for this assignment. The general market comments are based on past appraisals, experience,
and market information.
The project area was viewed on March 7, 2015 by Erin Waytas licensed appraiser and previously by
William R. Waytas along with an aerial viewing and Google Street View. Project information was
provided by the City Attorney (Thomas Jovanovich). The feasibility report is retained in appraiser files.
PROJECT
The City of St. Joseph is proposing to reclaim the existing roads and improve drainage conditions at
certain locations. Roads in the project area are Birch Street West, 6th Avenue Northwest, 7th Avenue
Northwest, and West Ash Street. Per request, you desire to know the benefit (if any) as it impacts
properties in the project area.
Motivation for the road improvement project stems from deteriorating road surface, partial road base,
and some drainage issues.
Nagell Appraisal & Consulting | 952.544.8966 Page 1
AREA DESCRIPTION
St. Joseph is located about 10 minutes west of St. Cloud along Highway 75 and I-94. The population
was 6,534 as of the 2010 census (an increase of 39.6% from the 2000 census). The College of St.
colleges in town and nearby provide a boost to the local economy with the influx of students every year.
Single family homes generally range in value between $50,000 and $200,000+ in the City Limits with an
average of about $180,000 (MLS statistics). The city is mostly built-up, however the city is expanding as
it annexes land as the population increases. Most homes are average to good quality.
SUBJECT PROPERTIES
The project area consists of single family residential properties. Per city, there are a total of 51 parcels
that would directly benefit from the proposed project.
EXISTING STREETS
Physical Condition of the Existing Road and City Sewer/Water Lines:
The existing road
improvements are showing signs of wear and were constructed in 1983. The roads, per the feasibility
report, are in poor condition and have alligator, transverse, and block cracking, along with weathering.
-effective
candidate for preventative maintenance activities. The road was reportedly last seal coated in 1997.
The in-place curb and gutter is still functional and will require minimal replacement. There are sections
were the gutter grade is not uniform, which results in slow drainage and pooling.
The existing city water and sewer were also installed in 1983. The city staff, per feasibility report, stated
that the sewer and water continue to be in serviceable condition.
Functional Design of the Road:
The existing street improvements have a fair look in front of a majority
of properties in the project
The current roads meet the minimum expectations for accessibility but reflect negatively on the visual
appeal of the properties. Overall, the existing street improvements are considered to be in fair surface
condition, look dated and reflect likewise on the adjoining properties. Clearly, road reclamation is needed
now or will be in the very near future.
Page 2 Nagell Appraisal & Consulting | 952.544.8966
PROPOSED ROAD IMPROVEMENTS
The city is proposing to reclaim the roads in the project area (see following map). The existing pavement
would be removed along with approximately 7 inches of road bed. New base material would be installed,
along with a new 2-inch bituminous non-wear course and a 1.5-inch bituminous wear course.
Additionally, at the southeast end between Ash Street West and 6th Avenue Northwest, the construction
of a storm sewer extension is proposed to reduce water ponding.
If any of the above description changes, the benefit due to the project could differ.
HIGHEST AND BEST USE
The subject project area is located near the western city limits in a residential neighborhood.
Owners in the subject area appear to update their property as needed when site and building
components wear out or become dated. Therefore, it is logical to update the road to the subject
properties as needed as these are essential property characteristics that are expected in this market.
An informed buyer would consider the condition of the road, road bed and underground utilities. A well
constructed and good condition road provides aesthetic appeal to a property. Given a choice, a potential
informed buyer would likely prefer a newer road over a deteriorating road.
If components of real estate are near the end of their economic life in a home or building is postponed, it
can be more costly in the long run. Delays in replacing components can result in incurring higher interim
maintenance costs and potential difficulty in marketing the property. Also, it is typical for the cost of the
replacement of an improve increase over time. That said it is logical and prudent for market participants
to update/replace dated components when needed. Therefore, the highest and best use of the
surrounding properties in the project area is for the continued residential use with the proposed
infrastructure improvements.
Nagell Appraisal & Consulting | 952.544.8966 Page 3
DISCUSSION OF MARKET BENEFIT
Listed below are the factors that will be taken into consideration concerning the potential benefit to the
properties.
Description Existing Improvements Change
1) Road Surface Fair New
2) Base Condition Average Updated
3) Curb Average Replace as needed
4) Drainage Average, some poolingPooling repaired
5) Storm Sewer
Storm Sewer Storm Sewer
6) City water
AverageAverage
7) City sewer
AverageAverage
8) Sidewalk
N/A N/A
9) Street Lights
Average Average
10) Functional Design of Road Dated Good
11) Traffic Management
N/A N/A
12) Median
N/A N/A
13) Road Proximity to Properties
N/A N/A
14) Visual Impact on Properties Fair Good
Based on the preceding grid, the subject properties will improve in 6 of the 14 categories. Market
participants generally recognize that streets need replacing when nearing the end of a long economic
life. A typical buyer in the subject market commonly prefers a new surface road versus dated, older road
improvements. In addition to visual benefit, new street improvements provide better and safer use for
pedestrians (biking, walking, stroller, rollerblading, etc.) and drivers. The new streets will enhance
potential for re-development and/or updating the current properties. Properties that indirectly/directly
abut or have driveways that exit on the new street will benefit.
Based on past appraisals, experience, and general market information, it is not uncommon for properties
similar those in the subject market to realize an increase in price for new street improvements.
Given the scope of the project (street reclamation) and the age/quality/condition of houses, properties in
the area with newer street improvements could see a price benefit of:
Single Family Residential
$3,500 to $4,500 per existing or buildable lot
(larger lots on the higher end of the range)
Corner lots are based at a pro-rata percentage using street frontage. So if 75% of the frontage is being improved while 25%
on the side street(s) is not, then the multiplier would be 75% of the benefit.
Page 4 Nagell Appraisal & Consulting | 952.544.8966
CONCLUSION
The benefit amount noted above should not be construed or relied on as being an
appraisal, but are general observations based on the overall market.
If an appraisal were
made on the individual properties, the actual benefit amount could vary from market
observations above.
If you have additional questions, please do not hesitate to contact us.
Sincerely,
Ethan Waytas William R. Waytas, SRA, CRP
Trainee Appraiser MN 40368613 Certified General MN 4000813
Enclosures:
Location Map, Aerial Map View of Project, Subject Photos, Qualifications,
Engagement Letter
__________________________________________________________________________
www.nagellmn.com
Nagell Appraisal & Consulting | 952.544.8966 Page 5
LOCATION MAP
Page 6 Nagell Appraisal & Consulting | 952.544.8966
AERIAL VIEW OF PROJECT MAP
*Red line represents plans for road reconstruction
Nagell Appraisal & Consulting | 952.544.8966 Page 7
SUBJECT PHOTOGRAPHS
Road view Road view
Road view Road view
Page 8 Nagell Appraisal & Consulting | 952.544.8966
Subject Photographs continued
Road view Road view
Road view Road view and some pooling
Nagell Appraisal & Consulting | 952.544.8966 Page 9
Subject Photographs continued
Road view Road view
Road view and some pooling Road view
Page 10 Nagell Appraisal & Consulting | 952.544.8966
QUALIFICATIONS
Appraisal Experience
Ethan Waytas
Presently and since 2006, has been employed as an employee of Nagell Appraisal &
Consulting, an independent appraisal firm (12 employees) who annually prepare 1,500 +/- appraisal
reports of all types. He is currently a full time licensed trainee real estate appraiser, as well as the
Properties appraised:
Commercial - low and high-density multi-family, retail, office, industrial, restaurant, church, strip-
mall, fast-food, convenience stores, auto-service and repair, cinema, numerous special use
properties, and subdivision analysis.
Residential single-family residences, hobby farms, lakeshore, condominiums, townhouses,
REO and land.
Eminent Domain extensive partial and total acquisition appraisal services provided to
numerous governmental agencies and private owners.
Special Assessment numerous street improvement and utilities projects for both
governmental and private owners.
Clients - served include banks, savings and loan associations, trust companies, corporations,
governmental bodies, relocation companies, attorneys, REO companies, accountants and
private individuals.
Area of Service - most appraisal experience is in the greater Twin Cities Metro Area (typically
an hour from downtown metro). Numerous assignments throughout Minnesota.
Professional Membership, Associations & Affiliations
License: Trainee Real Property Appraiser, MN License #40368613
Education
-- Graduate of the University of Minnesota: College of Science and Engineering, Twin Cities
Campus
Bachelor of Science in Computer Science, with distinction, 3.86 GPA.
General & Professional Practice Courses & Seminars
--
-- Basic Appraisal Procedures
-- Basic Appraisal Principles
-- 2012-2013 15-Hour National Uniform Standards of Professional Appraisal Practice
-- General Appraiser Sales Comparison Approach
-- General Appraiser Income Approach Part 1
-- General Appraiser Income Approach Part 2
-- Advanced Income Capitalization
-- General Appraiser Report Writing and Case Studies
Nagell Appraisal & Consulting | 952.544.8966 Page 11
Curriculum Vitae -- continued
Appraisal Experience
William R. Waytas
Presently and since 1985, has been employed as a full time real estate appraiser.
Currently a partner and President of the Nagell Appraisal & Consulting, an independent appraisal firm
(12 employees) who annually prepare 1,500 +/- appraisal reports of all types. Mr. Waytas was employed
with Iver C. Johnson & Company, Ltd., Phoenix, AZ from 1985 to 1987.
Properties appraised:
Commercial - low and high-density multi-family, retail, office, industrial, restaurant, church, strip-
mall, fast-food, convenience stores, auto-service and repair, hotel, hotel water park, bed &
breakfast, cinema, marina, numerous special use properties, and subdivision analysis.
Residential single-family residences, hobby farms, lakeshore, condominiums, townhouses,
REO and land.
Eminent Domain extensive partial and total acquisition appraisal services provided to
numerous governmental agencies and private owners.
Special Assessment numerous street improvement and utilities projects for both
governmental and private owners.
Review residential, commercial and land development.
Clients - served include banks, savings and loan associations, trust companies, corporations,
governmental bodies, relocation companies, attorneys, REO companies, accountants and
private individuals.
Area of Service - most appraisal experience is in the greater Twin Cities Metro Area (typically
an hour from downtown metro). Numerous assignments throughout Minnesota.
Professional Membership, Associations & Affiliations
License: Certified General Real Property Appraiser, MN License #4000813.
Appraisal Institute: SRA, Senior Residential Appraiser Designation,
General Associate Member
Employee Relocation Council: CRP Certified Relocation Professional Designation.
International Right-Of-Way Association: Member
HUD/FHA: On Lender Selection Roster and Review Appraiser
DNR: Approved appraiser for Department of Natural Resources
Testimony
-- Court, deposition, commission, arbitration & administrative testimony given.
Mediator
-- Court appointed in Wright County.
Committees
-- President of Metro/Minnesota Chapter, 2002, Appraisal Institute.
-- Chairman of Residential Admissions, Metro/MN Chapter, AI.
-- Chairman Residential Candidate Guidance, Metro/Minnesota Chapter, AI.
-- Elm Creek Watershed Commission, Medina representative 3 years.
-- Medina Park Commission, 3 years.
Page 12 Nagell Appraisal & Consulting | 952.544.8966
Curriculum Vitae -- continued
Education
-- Graduate of Bemidji State University, Minnesota. B.S. degree in Bus. Ad.
-- During college, summer employment in building trades (residential and commercial).
-- Graduate of Cecil Lawter Real Estate School. Past Arizona Real Estate License.
General & Professional Practice Courses & Seminars
--
-- Course 101-Introduction to Appraising Real Property.
-- Numerous Standards of Professional Practice Seminar.
-- Fair Lending Seminar.
-- Eminent Domain & Condemnation Appraising.
-- Eminent Domain (An In-Depth Analysis)
-- Property Tax Appeal
-- Eminent Domain
-- Business Practices and Ethics
-- Scope of Work
-- Construction Disturbances and Temporary Loss of Going Concern
-- Uniform Standards for Federal Land Acquisitions (Yellow Book Seminar)
-- Partial Interest Valuation Divided (conservation easements, historic preservation easements, life
estates, subsurface rights, access easements, air rights, water rights, transferable development
rights)
Commercial/Industrial/Subdivision Courses & Seminars
-- Capitalization Theory & Techniques
-- Highest & Best Use Seminar
-- General & Residential State Certification Review Seminar
-- Subdivision Analysis Seminar.
-- Narrative Report Writing Seminar (general)
-- Advanced Income Capitalization Seminar
-- Advanced Industrial Valuation
-- Appraisal of Local Retail Properties
-- Appraising Convenience Stores
-- Analyzing Distressed Real Estate
-- Evaluating Commercial Construction
-- Fundamentals of Separating Real Property, Personal Property and Intangible Business Assets
Residential Courses & Seminars
-- Course 102-Applied Residential Appraising
-- Narrative Report Writing Seminar (residential)
-- HUD Training session local office for FHA appraisals
-- Familiar with HUD Handbook 4150.1 REV-1 & other material from local FHA office.
-- Appraiser/Underwriter FHA Training
-- Residential Property Construction and Inspection
-- Numerous other continuing education seminars for state licensing & AI
Speaking Engagements
-- Bankers
-- Auditors
-- Assessors
-- Relocation (Panel Discussion)
Publications
-- Real Estate Appraisal Practice (book): Acknowledgement
-- Articles for Finance & Commerce and Minnesota Real Estate Journal
Nagell Appraisal & Consulting | 952.544.8966 Page 13
ENGAGEMENT LETTTER
Page 14 Nagell Appraisal & Consulting | 952.544.8966
Report Type
Real Estate Consulting
Letter Report
Effective Date
March 7, 2015
Client Subject Property
Street Improvement Project
City of St. Joseph
Attn: Thomas Jovanovich, City Attorney Northland: 1st St E, 2nd Ave NE, 3rd Ave NE, 4th Ave NE,
1010 West St. Germain Gumtree St E, Hickory St E, Hickory Court
St. Cloud, MN 56301 St. Joseph, MN
Prepared By:
Ethan Waytas, Appraiser
William R. Waytas, Appraiser
Nagell Appraisal & Consulting, Inc.
File # V1503001 Northland
12805 Highway 55, Suite 300
Plymouth, Minnesota 55441
Tel: 952.544.8966 | Fax: 952.544.8969
NAGELL APPRAISAL & CONSULTING
12805 Highway 55 #300 Minneapolis 952-544-8966
Plymouth, MN 55441 St. Paul 651-209-6159
Central Fax 952-544-8969
Established in 1968
__________________________________________________________________________
City of St. Joseph March 11, 2015
Attn: Thomas Jovanovich, City Attorney
1010 West St. Germain, #420
St. Cloud, MN 56301
To Thomas Jovanovich:
Per your request, this is a letter report is to assist the city for guidance regarding a potential street
improvement project within the city (see attached map for the location of the streets in the project). The
proposed project would be a road overlay of the existing road infrastructure.
This report is not an appraisal, but rather provides a preliminary opinion of a general range of market
benefit, if any, to residential properties in the project area.
SCOPE OF ASSIGNMENT
In accordance with your request, a drive-by viewing of the properties has been made along with some
general market comments regarding benefit (if any) for the proposed street improvement project as it
relates to the subject market. As noted in the engagement letter, no specific sales data has been
collected for this assignment. The general market comments are based on past appraisals, experience,
and market information.
The project area was viewed on March 7, 2015 by Erin Waytas licensed appraiser along with an aerial
viewing and Google Street View. Project information was provided by the City Attorney (Thomas
Jovanovich). The feasibility report is retained in appraiser files.
PROJECT
The City of St. Joseph is proposing to do a mill and overlay the existing roads and improve drainage
conditions at certain locations. Roads in the project area are Fir Street East, 2nd Avenue Northeast, 3rd
Avenue Northeast, 4th Avenue Northeast, Gumtree Street East, Hickory Street East, and Hickory Court.
Per request, you desire to know the benefit (if any) as it impacts properties in the project area.
Motivation for the road improvement project stems from deteriorating road surface and some drainage
issues.
Nagell Appraisal & Consulting | 952.544.8966 Page 1
AREA DESCRIPTION
St. Joseph is located about 10 minutes west of St. Cloud along Highway 75 and I-94. The population
was 6,534 as of the 2010 census (an increase of 39.6% from the 2000 census). The College of St.
. The
colleges in town and nearby provide a boost to the local economy with the influx of students every year.
Single family homes generally range in value between $50,000 and $200,000+ in the City Limits with an
average of about $180,000 (MLS statistics). The city is mostly built-up, however the city is expanding as
it annexes land as the population increases. Most homes are average to good quality.
SUBJECT PROPERTIES
The project area consists of single family residential properties. Per city, there are a total of 97 parcels
that would directly benefit from the proposed project.
EXISTING STREETS
Physical Condition of the Existing Road and City Sewer/Water Lines:
The existing road
improvements are showing signs of wear and were constructed from 1991 to 1994. The roads, per the
feasibility report, are in fair condition with isolated patches exhibiting load-related failures with age-
related weathering, large block and transverse cracking and alligator cracking. The last seal coat was in
2005 and crack seal in 2012.
The in-place curb and gutter is still functional and will require minimal replacement. There are section
were the gutter grade is not uniform, which results in slow drainage and pooling.
The existing city water and sewer were also installed from 1991 to 1994. The city staff, per feasibility
report, stated that the sewer and water continue to be in serviceable condition.
Functional Design of the Road:
The existing street improvements have a poor look (crack seal makes
it look patchy) in front of a majority of properties in the project
The current roads meet the minimum expectations for accessibility but reflect negatively on the visual
appeal of the properties. Overall, the existing street improvements are considered to be in fair surface
condition, look dated and reflect likewise on the adjoining properties. Clearly, mill and overlay is needed
now or will be in the very near future.
Page 2 Nagell Appraisal & Consulting | 952.544.8966
PROPOSED ROAD IMPROVEMENTS
The city is proposing to mill and overlay the roads in the project area (see following map). The existing
pavement would be removed and a new 1.5- to 2-inch bituminous overlay would be constructed. In
areas of alligator cracking, the feasibility report recommends full depth of the pavement removal and
patching.
If any of the above description changes, the benefit due to the project could differ.
HIGHEST AND BEST USE
The subject project area is located in the northern portion of the city in a residential neighborhood.
Owners in the subject area appear to update their property as needed when site and building
components wear out or become dated. Therefore, it is logical to update the road to the subject
properties as needed as these are essential property characteristics that are expected in this market.
An informed buyer would consider the condition of the road, road bed and underground utilities. A well
constructed and good condition road provides aesthetic appeal to a property. Given a choice, a potential
informed buyer would likely prefer a newer road over a deteriorating road.
If components of real estate are near the end of their economic life in a home or building is postponed, it
can be more costly in the long run. Delays in replacing components can result in incurring higher interim
maintenance costs and potential difficulty in marketing the property. Also, it is typical for the cost of the
replacement of an improve increase over time. That said it is logical and prudent for market participants
to update/replace dated components when needed. Therefore, the highest and best use of the
surrounding properties in the project area is for the continued residential use with the proposed
infrastructure improvements.
Nagell Appraisal & Consulting | 952.544.8966 Page 3
DISCUSSION OF MARKET BENEFIT
Listed below are the factors that will be taken into consideration concerning the potential benefit to the
properties.
Description Existing Improvements Change
1) Road Surface Fair New
2) Base Condition Average Average
3) Curb Average Replace as needed
4) Drainage Average, some poolingPooling repaired
5) Storm Sewer
Storm Sewer Storm Sewer
6) City water
AverageAverage
7) City sewer
AverageAverage
8) Sidewalk
N/A N/A
9) Street Lights
Average Average
10) Functional Design of Road Dated Good
11) Traffic Management
N/A N/A
12) Median
N/A N/A
13) Road Proximity to Properties
N/A N/A
14) Visual Impact on Properties Poor, crack sealer Good
Based on the preceding grid, the subject properties will improve in 6 of the 14 categories. Market
participants generally recognize that streets need replacing when nearing the end of a long economic
life. A typical buyer in the subject market commonly prefers a new surface road versus dated, older road
improvements. In addition to visual benefit, new street improvements provide better and safer use for
pedestrians (biking, walking, stroller, rollerblading, etc.) and drivers. The new streets will enhance
potential for re-development and/or updating the current properties. Properties that indirectly/directly
abut or have driveways that exit on the new street will benefit.
Based on past appraisals, experience, and general market information, it is not uncommon for properties
similar those in the subject market to realize an increase in price for new street improvements.
Given the scope of the project (overlay) and the age/quality/condition of houses, properties in the area
with newer street improvements could see a price benefit of:
Single Family Residential
$2,000 to $3,000 per existing or buildable lot
(larger lots on the higher end of the range)
Corner lots are based at a pro-rata percentage using street frontage. So if 75% of the frontage is being improved while 25%
on the side street(s) is not, then the multiplier would be 75% of the benefit.
Page 4 Nagell Appraisal & Consulting | 952.544.8966
CONCLUSION
The benefit amount noted above should not be construed or relied on as being an
appraisal, but are general observations based on the overall market.
If an appraisal were
made on the individual properties, the actual benefit amount could vary from market
observations above.
If you have additional questions, please do not hesitate to contact us.
Sincerely,
Ethan Waytas William R. Waytas, SRA, CRP
Trainee Appraiser MN 40368613 Certified General MN 4000813
Enclosures:
Location Map, Aerial Map View of Project, Subject Photos, Qualifications,
Engagement Letter
__________________________________________________________________________
www.nagellmn.com
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LOCATION MAP
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AERIAL VIEW OF PROJECT MAP
*Red line represents plans for road reconstruction
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SUBJECT PHOTOGRAPHS
Road view
Road view
Road view Pooling water
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Subject Photographs continued
Road view Road view
Road view Pooling water
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QUALIFICATIONS
Appraisal Experience
Ethan Waytas
Presently and since 2006, has been employed as an employee of Nagell Appraisal &
Consulting, an independent appraisal firm (12 employees) who annually prepare 1,500 +/- appraisal
reports of all types. He is currently a full time licensed trainee real estate appraiser, as well as the
Properties appraised:
Commercial - low and high-density multi-family, retail, office, industrial, restaurant, church, strip-
mall, fast-food, convenience stores, auto-service and repair, cinema, numerous special use
properties, and subdivision analysis.
Residential single-family residences, hobby farms, lakeshore, condominiums, townhouses,
REO and land.
Eminent Domain extensive partial and total acquisition appraisal services provided to
numerous governmental agencies and private owners.
Special Assessment numerous street improvement and utilities projects for both
governmental and private owners.
Clients - served include banks, savings and loan associations, trust companies, corporations,
governmental bodies, relocation companies, attorneys, REO companies, accountants and
private individuals.
Area of Service - most appraisal experience is in the greater Twin Cities Metro Area (typically
an hour from downtown metro). Numerous assignments throughout Minnesota.
Professional Membership, Associations & Affiliations
License: Trainee Real Property Appraiser, MN License #40368613
Education
-- Graduate of the University of Minnesota: College of Science and Engineering, Twin Cities
Campus
Bachelor of Science in Computer Science, with distinction, 3.86 GPA.
General & Professional Practice Courses & Seminars
--
-- Basic Appraisal Procedures
-- Basic Appraisal Principles
-- 2012-2013 15-Hour National Uniform Standards of Professional Appraisal Practice
-- General Appraiser Sales Comparison Approach
-- General Appraiser Income Approach Part 1
-- General Appraiser Income Approach Part 2
-- Advanced Income Capitalization
-- General Appraiser Report Writing and Case Studies
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Curriculum Vitae -- continued
Appraisal Experience
William R. Waytas
Presently and since 1985, has been employed as a full time real estate appraiser.
Currently a partner and President of the Nagell Appraisal & Consulting, an independent appraisal firm
(12 employees) who annually prepare 1,500 +/- appraisal reports of all types. Mr. Waytas was employed
with Iver C. Johnson & Company, Ltd., Phoenix, AZ from 1985 to 1987.
Properties appraised:
Commercial - low and high-density multi-family, retail, office, industrial, restaurant, church, strip-
mall, fast-food, convenience stores, auto-service and repair, hotel, hotel water park, bed &
breakfast, cinema, marina, numerous special use properties, and subdivision analysis.
Residential single-family residences, hobby farms, lakeshore, condominiums, townhouses,
REO and land.
Eminent Domain extensive partial and total acquisition appraisal services provided to
numerous governmental agencies and private owners.
Special Assessment numerous street improvement and utilities projects for both
governmental and private owners.
Review residential, commercial and land development.
Clients - served include banks, savings and loan associations, trust companies, corporations,
governmental bodies, relocation companies, attorneys, REO companies, accountants and
private individuals.
Area of Service - most appraisal experience is in the greater Twin Cities Metro Area (typically
an hour from downtown metro). Numerous assignments throughout Minnesota.
Professional Membership, Associations & Affiliations
License: Certified General Real Property Appraiser, MN License #4000813.
Appraisal Institute: SRA, Senior Residential Appraiser Designation,
General Associate Member
Employee Relocation Council: CRP Certified Relocation Professional Designation.
International Right-Of-Way Association: Member
HUD/FHA: On Lender Selection Roster and Review Appraiser
DNR: Approved appraiser for Department of Natural Resources
Testimony
-- Court, deposition, commission, arbitration & administrative testimony given.
Mediator
-- Court appointed in Wright County.
Committees
-- President of Metro/Minnesota Chapter, 2002, Appraisal Institute.
-- Chairman of Residential Admissions, Metro/MN Chapter, AI.
-- Chairman Residential Candidate Guidance, Metro/Minnesota Chapter, AI.
-- Elm Creek Watershed Commission, Medina representative 3 years.
-- Medina Park Commission, 3 years.
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Curriculum Vitae -- continued
Education
-- Graduate of Bemidji State University, Minnesota. B.S. degree in Bus. Ad.
-- During college, summer employment in building trades (residential and commercial).
-- Graduate of Cecil Lawter Real Estate School. Past Arizona Real Estate License.
General & Professional Practice Courses & Seminars
--
-- Course 101-Introduction to Appraising Real Property.
-- Numerous Standards of Professional Practice Seminar.
-- Fair Lending Seminar.
-- Eminent Domain & Condemnation Appraising.
-- Eminent Domain (An In-Depth Analysis)
-- Property Tax Appeal
-- Eminent Domain
-- Business Practices and Ethics
-- Scope of Work
-- Construction Disturbances and Temporary Loss of Going Concern
-- Uniform Standards for Federal Land Acquisitions (Yellow Book Seminar)
-- Partial Interest Valuation Divided (conservation easements, historic preservation easements, life
estates, subsurface rights, access easements, air rights, water rights, transferable development
rights)
Commercial/Industrial/Subdivision Courses & Seminars
-- Capitalization Theory & Techniques
-- Highest & Best Use Seminar
-- General & Residential State Certification Review Seminar
-- Subdivision Analysis Seminar.
-- Narrative Report Writing Seminar (general)
-- Advanced Income Capitalization Seminar
-- Advanced Industrial Valuation
-- Appraisal of Local Retail Properties
-- Appraising Convenience Stores
-- Analyzing Distressed Real Estate
-- Evaluating Commercial Construction
-- Fundamentals of Separating Real Property, Personal Property and Intangible Business Assets
Residential Courses & Seminars
-- Course 102-Applied Residential Appraising
-- Narrative Report Writing Seminar (residential)
-- HUD Training session local office for FHA appraisals
-- Familiar with HUD Handbook 4150.1 REV-1 & other material from local FHA office.
-- Appraiser/Underwriter FHA Training
-- Residential Property Construction and Inspection
-- Numerous other continuing education seminars for state licensing & AI
Speaking Engagements
-- Bankers
-- Auditors
-- Assessors
-- Relocation (Panel Discussion)
Publications
-- Real Estate Appraisal Practice (book): Acknowledgement
-- Articles for Finance & Commerce and Minnesota Real Estate Journal
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ENGAGEMENT LETTTER
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