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

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VALUATION OF TEMPORARY WORKSPACES The temporary easement is similar to a land lease over a period of time. The components needed in valuing temporary workspace include a per-unit land value, a land capitalization rate, and a duration period. Description of Temporary Workspaces: The temporary workspace is adjacent to the east and west sides of the permanent easement, has a width of approximately 70 feet on the east side and 30 feet on the west side, and contains a total of 1.76 acres of land (76,666SF) according to the survey exhibit. The area of extra temporary workspace contains 0.12acre (5,227SF).Additionally, a temporary access road is needed. The temporary access road traverses the central portion of the property in an east/west directionand the majority of the easement is situated along N C Street. The temporary access road has a width of 15 feet, a length of 1,075.67 feet, and contains 16,135 SF (15 feet x 1,075.67 feet). Please refer to the survey exhibit in the addenda for further details of the temporary workspace, extra temporary workspace, and temporary access road. Term of Workspaces (Time): 1 Year Temporary Workspace Capitalization Rate (Rental Rate): 10% Rental Workspace: Area Per Unit Value Term Rate Temporary Workspace 76,666 SF X $3.75 per SF @ 10% X 1 Year = $ 28,750 Additional Temporary Workspace 5,227 SF X $3.75 per SF @ 10% X 1 Year = $ 1,960 Temporary Access Road 16,135 SF X $3.75 per SF @ 10% X 1 Year = $ 6,051 6 Total Temp. Workspace $ 36,761 COMPENSATION SUMMARY The before and after scenario methodology was utilized to estimate the fair market value of and just compensation due for the partial acquisition. This involves appraising the whole property, the acquisition and the remainder property. The valuation of the whole property does not take into consideration project influence. The acquisition is valued as a pro rata part of the whole. The remainder property is appraised as impacted by the acquisition and project. A forecast is being made when appraising the remainder after property. This forecast is a hypothetical condition. The compensation includes the value of the acquisition and any damages to the remainder which may arise. The general steps of the before and after methodology are as follows: 1.Valuation of the whole property without consideration to any project influence. 2.Valuation of the partial acquisition. 3.Valuation of that portion of the subject remaining, not considering project influence. The valuation of the remainder before is merely a mathematical process by which the value of the partial acquisition is subtracted from the whole property. 4.Valuation of the remainder after the acquisition, considering the effect of the project. In this analysis, the remainder must stand alone as a separate unit. 5.Indication of damages; if there is any difference between the value of the remainder before and after acquisition, the result will be reflected as damages or enhancement to the remainder, as the case may be. 6.Lastly, the valuation of the temporary workspaces, if any, is estimated and added to the compensation. To summarize, the total compensation due the property owner is the value of the acquisition, plus any damages resulting from the acquisition and/or project, plus the value of the temporary workspace. These components of the before and after methodology were previously estimated and the total compensation is computed as follows: 1 Whole Property $ 4,320,608 2 Less: Value of Partial Acquisition $ 28,386 3 Indicated Value of Remainder Before Acquisition $ 4,292,222 4 Value of Remainder After Acquisition $ 4,292,222 5 Indicated Damages (Before minus After) $ 0 6 Value Temporary Workspace $ 36,761 (2+5+6) Total Compensation $ 65,147 Allen, Williford and Seale, Inc. Page 9