12-09-19 Regular Meeting of the La Porte City Council

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Additional Scope of Work Comments: In this technique, total compensation due to the owner arises from two sources: the actual acquisition (both land and improvements), plus diminution (damages) and cost to cure items, if any, to the remainder as a result of the acquisition and/or the project. This is called the before and after scenario. In order to estimate compensation an appraisal of the whole property and the remainder is necessary. This valuation involves a hypothetical conditionin both cases. When appraising the whole property, the impact of the project is ignored. When appraising the remainder after the acquisition, a forecast is being made. These hypothetical conditionsare accepted appraisal procedures when valuing eminent domain situations. We have not discussed the subject property or project with the landowners. In the event there are improvements on the subject property, an analysis of the project impact on the improvements will be examined. If the improvements are not adversely affected by the proposed acquisition/project, then the valuation of the improvements is not necessary to produce credible valuation results. The subject property is owned by the City of La Porte and is used as the La Porte IJ Kibodeaux Memorial Public Works Service Center, the La Porte Recycling Center, and the La Porte Fire Department Training Facility. The subject property is improved with multiple administrative office buildings, metal buildings, and supporting site improvements. In this case, the subject improvements are not impacted by the project and have not been appraised. Even if the improvements were valued in this report, their valuation would not change our opinion of total compensation. The subject property has been appraised as effectively vacant land. It is assumed that any minor improvements, such as fencing, gates, roads, irrigation, equipment, or personal property items that are impacted by the proposed acquisition will be restored or replaced to equal or better condition as before. Accordingly we have not included any compensation for their replacement. Additionally, we have not included any crop or pasture replacement costs as these items will be addressed by the client. This appraisal does not include or consider the mineral estate. Engineering studies, ADA determinations, surveys, title reports, flood plain determinations, and environmental audits are beyond the scope of this appraisal. We have also utilized aerials and topographical maps of the subject whole property and surrounding areas to obtain additional details regarding the subject property and partial acquisition. There are two existing CenterPoint Energy (formerly Houston Lighting & Power Company) electric transmission line easementsand multiple existing pipeline easements on the subject property. In the before scenario, the valuation of the subject whole property does not separate the existing easement areas from the rest of the property, and the area encumbered by the existing easements has not been discounted. We have considered the presence of the existing electric transmission line easements and existing pipelines while determining the rights acquired by the proposed acquisition as well as the impact that the proposed acquisition and project will have on the remainder property. The proposed acquisition consists of wide pipeline easement and springing temporary workspace easement. The acquisition parallels the pipelines and the electric transmission line easements across the property. HYPOTHETICAL CONDITIONS & EXTRAORDINARY ASSUMPTIONS Hypothetical Conditions: (A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The use of hypothetical conditions may affect the assignment results.) This valuation involves a hypothetical condition in both the before and after scenarios. When appraising the subject whole property, the impact of the project is ignored. When appraising the remainder property after the acquisition, a forecast is being made. These hypothetical conditions are accepted appraisal procedures when valuing eminent domain situations. Extraordinary Assumptions: (An extraordinary assumption is an assignment-specific assumption as of the effective date regarding The use of extraordinary assumptions may affect the assignment results.) None Allen, Williford and Seale, Inc. Page 3