City Council Agenda and Packet 2013 05 21 - PG 160 - ATTACHMENT #3

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PART 3 — ANALYSIS AND CONCLUSIONS — LARGER PARCEL BEFORE TAKE Highest and Best Use Highest and best use is the most profitable and competitive use of a property. Colorado Jury Instructions —Civil 4`h, 36:6 views highest and best use as follows: In determining the market value of the property actually taken (and the damages, if any, and benefits, if any, to the residue) you should consider the use, conditions and surroundings of the property as of the date of valuation. In addition,you should consider the most advantageous use or uses to which the property might reasonably and lawfully be put in the future by persons of ordinary prudence and judgment. Such evidence may be considered, however, only insofar as it assists you in determining the reasonable market value of the property as of the date of valuation (or the damages, if any, or the benefits, if any, to the residue). It may not be considered for the purposes of allowing any speculative damages or values. Highest and best use is defined by the Appraisal institute in The Dictionary of Real Estate Appraisal, Fifth Edition,Chicago, 2010, page 93,as: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility,financial feasibility,and maximum productivity. The concept of highest and best use places emphasis on the economic capability of an existing or proposed improvement plan to show an acceptable (or the greatest) net return to the value of the underlying land. This involves development of the optimum physical structures that are legally permissible on a given site with said structures also being forced to meet the tests of economic feasibility, physical possibility,and logical appropriateness. Analysis of the subject parcel for development to its highest and best use is tied to trends toward change in the immediate area of the property. It is also tied to the general market for properties likely to represent the highest and best use of the land, general economic trends as they affect the supply and demand for new development,and the physical and locational features inherent in the land itself. Physical Possibility: The parcel is physically limited for development due to its shape and size. On this basis, the property has been valued as unbuildable land. Legal Permissibility: The legally permitted uses of the property were outlined in the brief zoning discussion in the previous section. Financial Feasibility and Maximal Productivity: Considering the nature of the shape and zoning provisions, the optimum use of the land is for continued open space/recreational purposes. 25 Bonnie Roerig & .associates, £1C Real Estate .Analysts - 'Valuation Consultants