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

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easement, estimated to be 91,828 square feet or approximately 79% of the total parcel area. This develops a total for the unencumbered portion of the larger parcel of$82,645. An adjustment of 50% was made to reflect the impact of RTD's permanent easement. This percentage was based on the following data. Contained in my files are confirmed data about three permanent easement sales that I have verified with the parties to the transactions. The grantor of these transactions was the Colorado Department of Transportation (CDOT). Two of these sales involved permanent easements that CDOT purchased when building a public transportation project. When the project was completed these easements were not needed. Approximately 10 to 15 years later the current underlying fee owners approached CDOT about the possibility of purchasing these easements. CDOT was not under any obligation or pressure to sell, however, CDOT did agree to possibly selling these easements at a negotiated price based on an appraised value as the basis of negotiation. The third permanent easement sale involved an area of land situated on a CDOT—owned property. The adjoining property acquired this permanent easement as a means of access to the adjoining property and for installation of utilities to serve the adjoining site. As with the two sales described above, CDOT was not under any pressure to sell and the agreed price was based on an appraised value. One permanent easement sale consisted of a single—use right that would have allowed CDOT to install an irrigation ditch. This ditch was never constructed and the underlying fee owner wanted to clear the title so the easement area could be used for additional parking. The price that CDOT received for this easement was $9,120 ($1.50 per square foot) for 6,208 square feet. This is equivalent to 29% of the underlying fee value of the host site. Another permanent easement sale consisted of a single—use right that would allow CDOT to maintain an 1-25 Interchange off—ramp overhead street lighting. When the public project was completed, this easement was not needed. The price CDOT received for this easement was $23,000 for an area containing a total of 7,391 square feet or$3.11 per square foot. This is 34% of the estimated unit value of the underlying fee value of the larger parcel. The third sale of a permanent easement consisted of multi—use rights allowing access and installation of utilities to an adjoining property. CDOT owned Lot 36, Block 33, Meadowbrook Heights Subdivision and the owners of Lot 31 in the same subdivision desired to purchase a permanent easement for access and utility installation to serve their property. The price CDOT received for this easement was negotiated at $25,866 or$5.73 per square foot for 4,515 square feet. The unit price paid for this easement resulted in payment of 75%of the fee value of$7.63 per square foot. The preceding information indicates that permanent easements range in value range of 26%-36% to 75%. The lower end of the range appears to reflect a single—use easement and the higher end appears to reflect a multi—use easement. The higher percentage at 75% also reflects a premium by virtue of the use of the easement to an adjoining site. If this factor is removed, then, most likely, a value of around 50%would be a reliable indication. Our judgment is that 50% of fee simple value appropriately and adequately reflects the impact of the RID easement and use on the fee simple market value of the affected property and properly compensates the landowner for this portion of the property to be acquired. The value of the encumbered portion of the larger parcel,therefore, is computed as follows: Fee simple value,easement area: $22,275 Easement value at 50%of fee: $11,138 Rounded to: $11,140 32 Bonnie Roerig & .associates, £.LC Real Estate Analysts - `Valuation Consultants