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

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Sale No. 1 was purchased by Arapahoe County in December 2010, located south of Arapahoe Road, east of Jordan Road and west of the Cornerstar Regional Shopping Center. Arapahoe County purchased the property as part of the Cherry Creek trail system that will eventually extend from Confluence Park in downtown Denver southeast to Castlewood Canyon State Park in Douglas County. The total purchase consisted of two parcels. The first is Lot 12, Arapahoe Road Industrial Park, Filing No. 2 Amended, comprising 3.44 acres with frontage on and access to Arapahoe Road. The property was zoned I-1, PUD. The second parcel is Tract A, 9.52 acres in size zoned F, Floodplain, by the City of Centennial and is 100%located in floodplain/floodway. Arapahoe County representative Daniel Einerson indicated that the purchase price of $735,000 was based on an appraisal which had developed a higher value for the buildable, industrial zoned 3.44—acre parcel and a significantly lower value for the remaining 9.52 acres of non—buildable floodplain/floodway land. Mr. Einerson gave permission to the appraiser to discuss and confirm the appraised value for each of the parcels that ultimately resulted in the $735,000 recorded selling price for both parcels combined. This total also included a water tap valued at$15,000. While there were some differences between the final price and the appraised values, we confirmed that the non—buildable floodplain/floodway land component was appraised for$335,000. Sale No. 1 at $0.81 per square foot is the highest value indicator and it supports a value for the subject property slightly higher than $0.81 per square foot, say $0.90, to address the older date of sale. Together with Sale No. 2,this sale was given the greatest weight in this analysis. Sale No. 2 is a 15.82—acre parcel purchased by the City of Aurora in October 2010 for $0.50 per square foot. Although the land was included in the E-470 corridor zone area, it is physically non—buildable due to the Buckley Air Force Base APZ (accident potential zone) overlay zoning that blankets this property. This overlay zone does not permit any use other than open space; even parks are not allowed. Aurora purchased the property for a detention pond and an open space maintenance trail. The APZ overlay zoning limitations for this site are comparable to the limitations that exist for the subject property. We concluded that the subject property has a value bracketed by Sale No. 1 and the $0.50 per square foot value that was developed by Sale No. 2, increased for market conditions to $0.60 per square foot. Sale No. 3 is the purchase of four adjoining parcels located near the southeast quadrant of the E-470 and E. 6`" Parkway interchange. The City of Aurora purchased the parcels from the E-470 Highway Authority for$0.35 per square foot. This is the most recent sale, having closed in December 2011. The city plans to use the parcel for open space and as a connector for the Aurora bicycle trail system. A representative for the city disclosed that the price was based on an appraisal originally done three years ago and a current letter from the appraiser stating there has been no change in value. Additionally, the appraisal did not include one of the long narrow parcels that was ultimately included with this sale at no additional compensation. For this reason, less weight was placed on Sale No. 3 at$0.35 per square foot. Summary of Conclusions We placed the greatest weight on Sales 1 and 2, and concluded a final value for the subject larger parcel at the upper end of the range, at $0.90 per square foot, to recognize its location and commercial environment. This opinion applies to the portion of the larger parcel not encumbered by the RTD 31 Bonnie Roerig & Associates, LCC Rear Estate Analysts - `Valuation Consultants