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2007-11-27 Nagel Summary Appraisal ReportSummary Appraisal Report Vacant Commercial Land Property: SEC 60th Street and Lachman Avenue NE Albertville, MN City Attorney of Albertville Prepared For: Attn: Michael Couri 705 Central avenue East Saint Michael, MN 55376 Date: November 27, 2007 Prepared By: I William R. Waytas, Appraiser NAGELL APPRAISAL & CONSULTING 7515 Wayzata Boulevard Minneapolis, MN 55426 Telephone: (952) 544-8966 Fax No. (952) 544-8969 File # G0710013 I NAGELL APPRAISAL 7515 Wayzata Blvd. #115 Minneapolis, MN 55426 Established in 1968 City Attorney of Albertville Attn: Michael Couri 705 Central Avenue East St. Michael, MN 55376 Dear Mr. Couri: & CONSULTING Minneapolis: 952-544-8966 St. Paul: 651-209-6159 Central Fax: 952-544-8969 December 15, 2007 In accordance with your request, a Summary Appraisal Report has been made on the ' following described property: Subject Property: Vacant land SEC of 60" and Lachman Avenue NE Albertville, MN The property is legally described herein. The appraisal assumes that the property meets all current environmental standards. The appraisal analysis and conclusions are subject to certain limiting conditions and assumptions described herein. It is my opinion of the market value assuming a stable buildable site with street in and any special assessments paid in full in fee simple interest as of November 27, 2007, is: FINAL OPINION OF MARKET VALUE: $465,000 The accompanying report contains data secured from my personal investigation and from sources considered to be reliable; however, correctness is not guaranteed. To the best of my knowledge and belief, the statements contained in this report are true and correct. Neither my employment to make this appraisal, nor the compensation, is contingent upon the value reported. This report has been prepared in conformity with the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute and appraisal standards set forth by Uniform Standards of Professional Appraisal Practice. Sincerely, Ile William R. Certified C www.calinagell.com iii TABLE OF CONTENTS General Information Page Summary of Important Facts and Conclusions 1 Introduction, Intended Use of Report, Date of the Appraisal 2 Scope of the Appraisal 3 Property Rights Appraised, Personal Property 4 Identification, Subject Sales/Building History 5 Real Estate Taxes 6 Descriptive Data Regional Data 7 Regional Map 8 City & Neighborhood Description 9 Neighborhood Map 10 Site Description 11 Zoning Map 12 Existing Plat Map 13 Aerial Photographs 14 Proposed Plat Map 15 Flood Map 16 Subject Photographs 17 Valuation Highest and Best Use 20 Cost Approach 21 Income Approach 21 Sales Comparison Approach 22 Reconciliation 31 Type & Definition of Market Value, Environmental & Building Conditions 32 Certification 33 Extraordinary Assumptions & Hypothetical Conditions 34 Assumptions and Limiting Conditions 34 Qualifications 37 Addenda 39 January 29, 2008 I have received the City of Albertville's offer to purchase Lot I of Barthel's Commercial Park Third Addition. I am proposing a counteroffer to sell the property to the City at a price of $458,000, which will provide me with net proceeds of $300,000 after special assessments are paid by me at time of sale. Donald Barthel (� SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS General Description: Vacant Commercial Land Appraisal Report: Summary Report Current Use: Vacant Commercial Land Special Assumptions: None, see rear of report for standard assumptions Site Size: 83,675 SF gross 9,598 low land 74,077 SF of upland Improvements: None Zoning: B-2A Special Business District Highest and Best Use: Commercial Development Property Rights Appraised: Fee Simple Interest Personal Property: No business or personal property included Cost Approach: Not Applied Income Approach: Not Applied Sales Comparison Approach: $465,000 Final As -Is Value Opinion: $465,000 Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com INTRODUCTION The subject property consists of a 1.92 acre parcel of vacant land located in Albertville, MN. The property is currently vacant land and is zoned for commercial use. The city is interested in purchasing the property for expanding the ice arena on the property to the immediate north. The subject is in a preliminary plat called Barthel Commercial Park Third Addition. The site has some low area including a pond in the central portion of the site along with some soil issues per a Geotechnical Evaluation Report date 4-14-06 (see addenda for report summary). The city (Adam Nafstad) indicated the cost would likely be around $90,000 to correct to have a building pad and space for parking. Methodology: For purposes of this appraisal assignment the appraiser will determine the value lot assuming it is a legal lot that it is buildable (that is, will allow for a typical size building and location within the site given the overall lot size) with the street in place and all and any assessments are paid in full. Competing sales that bracket the subject will be used in the report to determine market value. Since the cost to correct the site are very preliminary the appraiser will not subtract them from the appraised value. NOTE: The user of the report should recognize the cost to cure site issues, special assessment and management time should be subtracted from the appraisal value to determine the net "as is" value. INTENDED USE OF REPORT The client intends to use the appraisal to determine an offer for potential purchase of the subject property. This appraisal assignment was requested by the named client/owner for its sole use. No party, other than the client, may use or rely upon any part of this report without the prior written authorization of both the named client and the appraiser. This report is not valid unless it contains the original signatures in blue ink. Any unauthorized third party relying upon any portion of this report does so at its own risk. DATE OF THE APPRAISAL The effective dates are: • The effective date and inspection date is November 27, 2007 and assumes stable and buildable lot with any and all special paid in full. • The date of the report is November 27 thru December 15, 2007. 2 Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com SCOPE OF THE APPRAISAL REPORT USPAP 2006 defines Scope of Work as: The type and extent of research and analyses in an assignment. For each appraisal, appraisal review and appraisal consulting assignment, an appraiser must: 1) Identify the problem to be solved 2) Determine & perform the scope of work necessary to develop credible assignment results 3) Disclose the scope of work in the report 1) Provide an opinion of market value, as it relates to the intended use. Per assignment request, the following degree of research and analysis has been made; The format used is a Summary Report, which is intended to comply with the reporting 2) requirements set forth under Standards Rule 2-2(b) of USPAP. As it relates to the nature of the assignment, a highest and best use analysis of the subject will be performed. All three approaches will be considered —see individual approaches for further detail. The scope of work for this appraisal includes: • a) The extent to which the property is identified: Public record, plat maps, zoning maps and/or aerial photographs were used to identify the subject property. • b) The extent to which tangible property is inspected: An inspection of the subject property, proposed plans/specifications (if any) and neighborhood by the appraiser. Physical factors: Based on property inspection and conversations with the client, city and county officials. Lot size is based on a survey. Economic Factors: Consisted of gathering of information from market experts, city and/or county offices, and internet about the region, community, neighborhood, zoning, utilities, and any pending projects in the area that may affect the subject property. 3) • c) The type and extent of data researched: Data of competing properties within the subject market area were given primary consideration. The most relevant data is used in this report. Sources include, appraiser data files, assessor, internet, developers, agents, MLS, periodicals, in -office library, past courses and seminars etc. The appraiser has not researched the title or ownership records. • d) Type and extent of analysis applied at opinions or conclusions: An extensive review of market data was performed. The most recent, similar and proximate data has been used. The data used will be adjusted on a grid. Appropriate collection, verification, analysis and viewing has been performed in the valuation approaches, given the purpose and intended use of the report. A final value opinion will be discussed and correlated. The appraiser accepts full professional responsibility for all of the analyses and conclusions contained within this report. The data used was obtained from sources considered credible, yet its accuracy is not guaranteed. Nagell Appraisal & Consulting ; 952-544-8966 ; www.calinagell.com PROPERTY RIGHTS APPRAISED Real property ownership consists of a group of distinct rights. There are two primary property rights, Fee Simple and Leased Fee. Fee simple estate is defined in The Dictionary of Real Estate Appraisal, 3rd Edition as: "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." This would typically reflect an owner -occupied property. When the property rights appraised are the unencumbered fee simple interest of the real estate, the appraised value is subject to normal easements for drainage, public streets and utilities, if any. The effect of any existing mortgage or delinquent taxes on the subject property has not been considered in this appraisal. Leased fee interest is defined in The Dictionary of Real Estate Appraisal, 4th Edition as: "an ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease." This would generally reflect a tenant -occupied property. The subject is currently vacant land, therefore, the Fee Simple Interest will be appraised. PERSONAL PROPERTY Appraised value reflects real estate only. No business value, FF&E, or personal property is included in the appraised value. 4 Nagell Appraisal & Consulting ; 952-544-8966 1 www.Gallnagell.com IDENTIFICATION 71 Street Address: SEC of 60th Street & Lachman, Albertville, MN Legal Description: Proposed, Lot 1, Block 1, Barthel Commercial Park Third Addition. (Part of Outlot A, Barthel Commercial Park 2Id Add. At (11.84 acre site per county). The County PID #: Part of 101-052-000010 The Fee Owner: Donald and Betty Barthel Census Tract #: 1008.02 SUBJECT BUILDING & SALES HISTORY Most Recent Sale Price: None Close Date: N/A Buyer: N/A Seller: N/A Terms: N/A Source: N/A Other Sales in Past 3 years: No other reported sale of the subject within the last three ears. Comments: City is interested in purchasing subject property. No details provided to appraiser. Building History; None known Comments: The subject is vacant land and it has a proposed plat. Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com 5 REAL ESTATE TAXES 2007 2008 Tax payable: $8,634 Not Available Special assessments: None reported Pending per city are $158,055 ($2.13 per SF useable area, appraised value assumes any and all specials paid in full. Total special assessments: $0.00 Not Available City Assessor's Value 2006 Value (payable 2007) 2007 Value (payable 20081 Land: $302,400 N/A Building: $ 0 N/A Total: $302,400 ($0.59/SF Land) N/A Comments: The tax rate for the subject property is 2.9%, which is in line with the market when considering its current use and zoning. 6 Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com REGIONAL DATA Metro Area: Minneapolis, St. Paul and the surrounding communities are known as the Twin Cities Metropolitan Area (TCMA). Slightly over half of Minnesota's residents live in this area. In both of the fully developed central cities --Minneapolis and St. Paul --the population has declined due to smaller household sizes, yet growth in other areas of their counties has been more than offsetting. Below is detailed where this growth has occurred: County 1990 Census 2000 Census 2006 Est. Census % of Total `00-'06 Est. Change Median Income* Anoka 243,641 298,084 327,005 11.0% 9.7% $61,634 Carver 47,915 70,205 87,545 2.3% 24.7% $72,998 Dakota 275,227 355,904 388,001 13.1 % 9.0% $66,467 Hennepin 1,032,431 1,116,200 1,122,093 37.8% 0.5% $55,996 Ramsey 485,765 511,035 493,215 16.6% (3.5%) $49,898 Scott 57,846 89,498 124,092 4.2% 38.7% $78,106 Sherburne 41,945 64,417 84,995 2.9% 31.9% $61,313 Washington 145,896 201,130 225,000 7.6% 11.9% $73,491 Wright 68,710 89,986 114,787 3.9% 27.6% $59,615 Total 1 2,399,376 2,796,459 2,966,733 100.0% 1 6.1% 1 $64,391 Median Incomes reported on this page are for 1999 using 2000 Census data. The national median income is $42,000. Subject County: The subject is located in Wright County, which grew by 27.6% between 2000 and 2006. The subject is located in the southeastern portion of the county in Minneapolis. Most growth has been in the southern and eastern portions of the county due to the expanding Twin Cities Metro Area. Economic Data: The Twin Cities is the 13th largest market in population and the 11th in retail sales in the nation. In 2005, the estimated median household income for the nine county Twin Cities Metro Area average was $64,391. The above grid reflects a breakdown of median household income for the 9 county Twin Cities Metro Area. The subject county of Wright is slightly below the Metro average. The unemployment rate for Minnesota as of January 2007 is around 5.4%, which is slightly above the national average of 5.0%. The current residential interest rates, for a typical 30 year mortgage, are around 5% to 7%. Commercial rates are around 5.5% to 7.5%. Rates are expected to be relatively stable over the next year. Subject City: The median income for Albertville as of 2000 was $58,260, which is slightly below the current county average. The Metropolitan Council population estimate for Albertville as of 2000 was 3,621, up from 1,252 in 1990. The average sale price of a single- family home in Albertville for 2007 was $252,429, down 6.4% from 2006 of $269,587 (per MLS). Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell com 7 Regional Data — continued Greater Twin Cities Metro Area Market Vacancy Market 2005 2006 2007 Current Market Trend Office 18% 15% 17% Soft Improving Retail 4% 6% 6% Good Stable Industrial 12% 12% 11 % Stable Improving Apartments 5% 6% 6% Good Improving Residential Absorption Detached SF 2-3/mo 1+/- 0-1/mo Fair Declining Townhouses 2-3/mo 0-1/mo 0-.5/mo Poor Declining Condos 2-4/mo 0-1/mo 0-.5/mo Fair Declining Note: Rates above are based on local and national publications, market participants and appraisals performed Absorptions are based upon a typical development size and reflect monthly rates. REGIONAL MAP _ Elk River lit sHEF @PWNE a 64 ss �° 10 47 --�_ 18 sew 63 --- I• 7 l! r20, `78 take 19 371---., 42 .Alpine Dr NW }, Ramsey -- Albertville H 6 (raid d Park N O� 17 23 36'I 11R! St. Michael 12 9 Subject CrS51 I Lino Dayton Anoka G42 __�je Lakes 14 203, -. 121 16*9 1 18 Coon Rapids 7 I - Hanover Champlin° a Centery 10 Circle 117 M i N N" E., S U 1 A Pines 19 116'.: Blaine Burchville_ 14 �. 20 _ 10 30 13D Osseo 61Driny.... .. 32 ..... t ......:. 101, 1-7- Lake Park Maple 1U9 o Brooklyn Park Corcoran o torte Mounds View ocktord 50 ( 152 t51 Fridley Arden o Hills Shoreview Brooklyn Center New o Brighton 55 47 rr_... 81 V Hilltop 76 t 1 Loretto H E r.p PH -, ' y�py� Ho ¢ Columbia Heights 90 r 9 p Little Y P outh C ai Robbinsdale 65 St Rosernlle� Canada ndence; �— -- ,n Anthony z 't' E 201 Medrna `24, ! 160i 1UU Falcon F Lauderdale 6' Maple Plain I � �iolden Orono 6 Medidne Lake o alley 1 HPigl t t �? Long Lake Wayzata ! _ Mlllned0115 4U 4� 3 i 12 ;a 8 Nagell Appraisal & Consulting ; 952-544-8966 ; www.cal[nagell.com CITY & NEIGHBORHOOD DESCRIPTION Type of neighborhood: Outlying Suburban Percent built-up: 70% developed (city limits) Stage of Development: Growth Neighborhood boundaries: City limits Predominant type & conformity: Single -Family 2-4 & Multi -Family 10%, �30%, Comm./Ind. 20 /o, Vacant 30 /o. Avg. conformity. Reputation of the area: Average to Good Typical property age: New to 50 + years, new to 10 years Residential Housing Sales: $150,000 - $400,000+ Commercial Land Sales: $5.00 to $15.00+ per SF Industrial Land Sales: $2.00 to $5.00 + per SF Subject Market: Growth Neighborhood Trend: Gradual increase in values over time. Detrimental influences: No major apparent Comments: The subject is located in an area of industrial, commercial and single-family residential properties just south of County Road 37 and east of County Road 19. The local Albertville Market has experienced strong commercial growth in recent years due in large part to the construction of the Outlets at Albertville shopping center. Most retail and commercial land sales have been in proximity to the Outlet Mall or County Road 19 (La Beaux Avenue), which is the main thoroughfare in the area. As distance increases from the Outlet Mall or County Road 19, demand for development land tends to diminish. Albertville has a reputation as a growing community, with shopping and major commerce nearby. Access to Downtown Minneapolis/St. Paul and surrounding communities is average, with Interstate 94 running through the city. Property values are likely to remain stable with a gradual increase over time. Commercial Land Market Overview: The appraiser has considered recent publications, news articles and comments from market participants. Commercial land sales have been relatively strong in recent years. Low retail vacancy rates have led to strong demand for vacant land in locations with good visibility and exposure. Demand for commercial sites with less visibility and exposure has been relatively average. Nagell Appraisal & Consulting ; 952-544-8966 ; www calinagell.com 9 NEIGHBORHOOD MAP �„a, zacHaraE h mYA f'%fa BfW _ G nerm� g S ct 3 .— 09 CAM 27 l I1f89i lE 10 Nagell Appraisal & Consulting ; 952-544-8966 ; www.rallnagell.com I SITE DESCRIPTION Dimensions: Irregular, See Plat Map Site Area: 83,675 SF (per city) Wetland: 9,598 SF (per city) Net Useable: 74,077 SF Topography / Shape: Sloping / Mostly Rectangular Soil conditions: Needs some correction per city Drainage: Appears Average Utilities: Electricity/Gas Yes / Yes Water/Sanitary Sewer Public Water & Sanitary Sewer in street (being constructed) Off -Site Improvements: Street/Curb/Gutter: Bituminous / Concrete / Concrete Sidewalk/Alley: None / None Street Lights: Average Storm Sewer: Storm Sewer Access to site/Number: Off Lachman Avenue NE / 1 Current Frontage: Lachman Visibility/Exposure: Average / Average Flood hazard zone: Appears no, in non -participating area, see flood map Apparent Easements: Typical Utility & Drainage Encroachments: None Apparent Unusual Conditions: None Apparent Use: Vacant land Building Location: None Land to Building Ratio: N/A, Appraised as Development Land Surplus/Excess Land: None Apparent Functional Adequacy: Average Surrounding Uses: N — Ice arena and industrial S — Vacant land same zoning E — Park W — Vacant land same zoning Distance to Major Road: Average — Cty Rd. 19 and 37 within a quarter mile. Comments: The subject is along a secondary road for commercial use. Most existing buildings in the area are industrial type properties. Future trend will likely be towards commercial use. Most land around the subject is vacant except to the north. Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com 11 ZONING DESCRIPTION The subject is zoned B-2A, Special Business District. Purpose: "The zoning is to provide for high quality, limited retail and service commercial development, which would serve both local and regional needs. Primarily most commercial related uses except gas stations. Legal: Current use is legal and conforming. ZONING MAP ill , 211 C3 Legend Albertville Zoning A-1-Fync..ura =--, A-2 -Agno — T— —]B•2-Lmieea Bus�rres; 8-2A-SP—:19V5¢1lSS0s :! 8-3 - H#—V CPrmemra BIN -9ummns YrxeAa ae ,1 . Lmgd Ad-v O R4 - Srgk Far- y R-1A- Low Densay Drtn-:- ® R-2-S `ge F.", Twa FM'.: © R-3- Smple Famiy i Two Far-y RA-Ta-d—tQudraRrt- —L—D—y W&P.. Fm.'..y Q R-5- uad- DoMy M1 404 F— y R.e ..,ph D—ly Rd - SPeaa P"—, Kr Dam:, - R-8 - U-d -b i,g Di— _ From - 1aarea — PUD-P—.U-Dtwm — ® Pfl - Pura: • 1.0-a,, CM w-,wm a-w seeaa Craf -.; �" A6em a Ps^.e Li— C7 L^rcs 1 2 Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com EXISTING PLAT MAP _ `+3'4r. .i}::Ot', '�}'.(i72 tip.•{, „__ . tOt50ptlt220d tom?001010 2 �14t(i3N0i41UtU to 1016 21106 107052WS010 ' lot i i f MsoCe2lto tot i 101a�8 10t03040d010 10€05200{1010 101110700Utl10 �101c, Fo111so«ro, tOS/45001010 101100U01010 1101 15 10MWD0020 ` I �• `" rr 10118S001020 t L� Nagell Appraisal & Consulting 952-544-8966 ; www.callnagell.com 13 AERIAL PHOTOGRAPH 1 e -A a Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com PROPOSED PLAT pit -11 00 311111P i a Nagell Appraisal & Consulting: 952-544-8966 1 www.calinagell.com 15 FLOOD MAP Prepared for: InterFlood Nagell Appraisal & Consulting by a is mode 11346 60TH ST NE www.interflood.com • 1-800-252-6633 ALBERWILLE, MN 55301 5009 10000' 150(M] 20000 patents FLOODSCAk Fbod Hazard% Map Map Number 2707470003A Effective Date September 30,1992 �I For more information about x flood zones and flood I...„. insurance, contact: Powered by Flood Source 877.77 T I-000 4J..www.floodsource.com com. 16 Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com SUBJECT PHOTOGRAPHS Front View Rear View Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com 17 SUBJECT PHOTOGRAPHS Looking East on 60th Street (property at right background) Looking West From Ice Arena Parking Lot (property at left) 18 Nagell Appraisal & Consulting ; 952-544-8966 ; www.call nagell.corn SUBJECT PHOTOGRAPHS Pond Appears On Subject Site (Rear View Looking West) Lachman Avenue (Currently Being Install) Subject at Left Nagell Appraisal & Consulting ; 952-544-8966 ; www,callnagell.com 19 HIGHEST AND BEST USE Highest and best use as defined in The Appraisal of Real Estate, Twelfth Edition, by the Appraisal Institute, 2001 is: "The reasonably probable and legal use of vacant land or an improved property, that is physically possible, legally permissible, appropriately supported, financially feasible, and that results in the highest value." Highest and best use is analyzed in two ways, site as vacant and site as improved. Since the subject is vacant land only the site as vacant will be applied. Typically there are four criteria in highest and best use analysis - Legally permissible uses: What uses are allowed by zoning? - Physically possible uses: What uses are physically possible on the site? - Financially feasible use: Which possible & permissible uses produce a positive return? - Maximally Productive use: Of the financially feasible uses, which use produces the highest return warranted by the market (the ideal improvements)? Site as Vacant Legally Permissible Uses: The current B-2A, Special Business District which primarily allows for most commercial related use, etc. Physically Possible Uses: The physical characteristics of the site appear suitable for development (assuming soil is stabilized and buildable). Utilities are available. The site has average access and exposure. The site will allow for numerous potential uses. Financially Feasible Uses: Surrounding uses in the area are vacant with the same zoning and park to the east with competing commercial zoning to the north. The demand for commercial development land in Albertville has been generally average to good. Supply appears to exceed demand somewhat in the area. Maximally Productive Use: Most buildings in the area have land to building ratios around 4 to 1. Therefore, a commercial building around 20,000 SF would be logical. Buildings are typically average quality. Conclusion Site as Vacant: Based on the above discussion, the highest and best use for the subject site as vacant would be for an average quality commercial building with around 20,000 SF. 20 Nagell Appraisal & Consulting ; 952-544-8966 ; www.calinagell.com COST APPROACH The Cost Approach to value was not applicable. Since there are no building improvements the cost approach is not applicable. INCOME APPROACH The Income Approach to value was not applicable. Consistent with the highest and best use, the subject is being appraised as vacant development land. Vacant commercial land is rarely rented, rendering the Income Approach an unreliable indicator of value for the subject property. Nagell Appraisal & Consulting ; 952-544-8966 ; www callnagell.com 21 SALES COMPARISON APPROACH The Sales Comparison Approach to Value is predicated upon sales of properties with similar characteristics as the subject. The primary premise of this approach is that the market value of the subject is directly related to the prices of competing properties after adjustment. Adjustments are made in an effort to account for significant differences. Supply and Demand: Sales in the market result from negotiations between buyers, sellers and lenders. Buyers reflect market demand and sellers supply. If demand is high, prices tend to increase, if it is low, prices usually decrease. Demand for properties like the subject in recent years has been generally average. Consequently, prices have been gradually increasing over time. Substitution: The principle of substitution holds that the value of a property tends to be set by the price paid to acquire a substitute property of similar utility and desirability within a reasonable amount of time (The Appraisal of Real Estate, 12th Edition). The Sales Comparison Approach is less reliable if substitute properties are not available in the market. The subject market is generally good, consequently, there are ample sales to apply the sales comparison approach and formulate a reliable indication of market value. Balance: The market tends to force a balance between supply and demand. Balance can change due to shifts in population, variations in purchasing power, consumer tastes and preference and time. Externalities: When possible, select comparables with similar location, economic conditions and support facilities. The Following Outline Is Used In The Sales Comparison Approach: - A location map of the comparable sales. - Comparable sales are listed. - An adjustment grid using the comparable sales. - A discussion of adjustment and conclusion of value. Valuation Methodology: Similar competing quality and appeal sites that have sold in the subject market will be used to develop an opinion of market value. 22 Nagell Appraisal & Consulting ; 952-544-8966 ; www.calinagell.com COMPARABLE LOCATION MAPS 1 F :j � 1 Comp 3 Comp e I Comp 3 • L Ii .. CNYM Nagell Appraisal & Consulting ; 952-544-8966 ; www.calinagell.com 23 Sales Comparison Approach -- continued COMPARABLE 1 r �'' sass-wsa're$aanxwa ':ft,'. "~-•~`. .,= ems. Location: XXXX 62nd Street, Albertville, MN Proximity: 1 mile NE Zoning/Use: 1-2, Industrial Legal/PID: Was 101112001020 Utilities/Physical Characters: Public Available/Mostly level Buyer: Granite Tops, LLC Seller: Gem Development, LLC Source: CREV/Buyer Terms: Warranty Deed Date of Sale: May 07 Price: $565,000 Special Assessments: $ 0 Site Correction: $ 0 Site Razing Costs: $ 0 Net Sales Price $565,000 Site SF: 130,244 SF Buyer was neighbor, reportedly sale was market value. Comments: Site has some low area. Visibility/exposure from 1-94. Unit Price: $4.34 per SF 24 Nagell Appraisal & Consulting 1 952-544-8966 ; www,callnagell.com Sales Comparison Approach — continued COMPARABLE 2 y a \ r $40 �H\ a t Location: 4300 Edgewood, St. Michael, MN Proximity: 2 mile NE Zoning/Use: Commercial Legal/PID: 114297002010 Utilities/Physical Characters: Public Available/Mostly level Buyer: IRET Properties Seller: City of St. Michael Source: Appraiser data files/Buyer Terms: Cash Date of Sale: July 2006 Price: $319,640 Special Assessments: $ 0 Site Correction: $ 0 Site Razing Costs: $ 0 Net Sales Price $319,640 Site Size 63,295 Comments: Seller was city, purchase price appears to be at market. Buyer to put a medical office in. IUnitPrice$5.05 per SF Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell corn 25 Sales Comparison Approach — continued .. { Location: Proximity: Zoning/Use: Legal/PID: Utilities/Physical Characters: Buyer: Seller: Source: Terms: Date of Sale: Price: Special Assessments: Site Correction: Site Razing Costs: Net Sales Price Site SF: Comments: 52XX Kyler Avenue, Albertville, MN 1 mile S B-2, Commercial 101.111.001.010 Public Available/Mostly level T-Square Properties, LLC Robert Heuring CREV/Assessor Cash December 2005 $225,000 $ 11,000 $ 0 $ 0 $236,000 45,302 SF Smaller site planned for an office use. Inferior visibility/exposure. Sale price included $11 K in special assessments. Unit Price: I $5.21 per SF III 1 I. 1 1 1 26 Nagell Appraisal & Consulting ; 952-544-8966 1 www,calinagell.com Sales Comparison Approach — continued COMPARABLE 4 Location: 14270 42nd Street NE, St. Michael, MN Proximity: 3 miles SE Zoning/Use: Commercial Legal/PID: 114-172-001-010 Utilities/Physical Characters: Public Available/Sloping Buyer: Hans T. Hagen, Carolyn G. Hagen, Hans T. Hagen III & Shawnna L. Hagen Seller: Patrick J. Finn & Arlene O'brien Finn Source: CREV/Assessor Terms: WD — Cash Eq. Date of Sale: February 07 Price: $1,062,576 Special Assessments: $ 0 Site Correction: $ 0 Site Razing Costs: $ 0 Net Sales Price $1,062,576 Site SF: 142,867 SF Comments: Located next to new theater. Existing 10,000 SF building on site is an under -improvement that has struggled with occupancy over the year. The building has nominal value contribution. Visibility from 1-94. Unit Price: $7.44 per SF Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com 27 Sales Comparison Approach — continued COMPARABLE 5 py rk t�\ A Location: 11091 Jason Avenue NE, Albertville, MN Proximity: 1 mile SW Zoning/Use: Commercial, Medical Office Legal/PID: 101-034-001010 Utilities/Physical Characters: Public Available/Mostly level Buyer: Albertville Medical Building, LLC Seller: City of Albertville Source: CREV, Seller Terms: Cash Date of Sale: September 06 Price: $595,216 Special Assessments: $ 0 (none reported) Site Correction: $ 0 Site Razing Costs: $ 0 (Razing cost incurred by county) Net Sales Price $595,216 Site SF: 74,487 SF Good corner location, sale price does not appear to Comments: include razing costs of existing building. County sold to city for same price on same day and then city sold to buyer. Unit Price: $7.99 per SF 28 Nagel[ Appraisal & Consulting 1 952-544-8966 ; www.callnagell.com Sales Comparison Approach -- continued Listed below is the adjustment grid for the comparables listed on the previous pages. Comparable items of significant difference are adjusted for. Sales Comparison Grid Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Address 025 Lake Rd, Woodbury XXXX 62nd Street Albertville 300 Edgewood Dr. St. Michael 52XX Kyler Ave. Albertville 14270 42nd Street NE, St. Michael 11091 Jason Avenue NE, Albertville Proximity Subject 1 mile NE 2 miles S 1 mile S 3 miles SE 1 mile S Terms Market Market Market Market Market Market Conditions Typical Typical Typical Typical Typical Typical Sale Date Current May-07 Jul-06 Dec-05 Feb-07 Sep-06 Location Average Good Averae Average Good Good Physical Chars. Average Avg/Fair Averge Average Average Average Utilities Available Available Available Available Available Available Zoning Commercial Industrial Commercial Office Commercial Commercial Sale Price N/A $565,000 $319,640 $236,000 $1,062,576 $595,216 Site Size 74,077 130,244 63,295 45,302 142,867 74,487 $ Per SF GBA -- $4.34 $5.05 $5.21 $7.44 $7.99 Adjustments Cash Eq. Market Conditions Typical Sale Date Current 3% 9°/ 12% 3 % 8% $ Per SF GBA -- $4.47 $5.50 $5.83 $7.66 $8.63 Location Average Physical Chars. Average Utilities Available Zoning Commercial Sale Price N/A Site Size 74,077 Net Adjust 0% 0% -15% Adjusted Price -- $5.36 $5.50 $5.83 $6.89 $7.34 "Slight deviations may exist due to rounding. Discussion of Adjustments Cash equivalency of sale: The impact financing may have had on the sale price, favorable interest rate or term. All sales were cash or estimated to be near or at market rates. Conditions of sale: Reflects non -market conditions which may or may not impact market value, such as differing motivations of buyer or seller (related parties, distressed or liquidation sale, assemblage, listings, pending sales, etc.), impending eminent domain proceedings, influence due to tax ramifications, lack of market exposure, vacancy, or leased -fee and fee - simple adjustments. All comparables appear to be normal market transactions. Time of sale: The market has been improving, and an adjustment of 6% per year is logical. Nagell Appraisal & Consulting ; 952-544-8966 ; www.calinagell.com 29 Sales Comparison Approach -- continued Location: This adjustment is based on the appraiser's judgment. It takes into consideration surrounding land uses, intended use, neighborhood characteristics, area, traffic, exposure and access. Comparables 1 & 4 adjusted for 1-94 visibility. Comparable 5 adjusted for good corner location on County Road 19. section of industrial and commercial, general values are low. All other comparables are in competing locations. Physical Characteristics: Shape and topography reflect the market preference for rectangular, mostly level sites that maximize development potential. Comparable 1 adjusted for low area. All comparables have competing physical characteristics. Utilities: Sites with public utilities sell for more on a per square foot basis that those with private well and septic systems. All comparables have utilities available. Zoning: Comparable 1 adjusted for industrial zoning. All other comparables are competing regarding property use. Site Size: Adjustments recognize smaller sites typically sell for more per SF than larger sites. All comparables have competing site size. Conclusion: Comparables used are rated to be the most indicative of data analyzed and bracket the subject regarding overall appeal. Other sales reviewed were older, more distant, and/or needed more adjustment. Adjustments are made on per square foot basis. The comparables utilized in this analysis each have several characteristics in common with the subject. While none are totally identical to the subject, each represents a viable alternative to a prospective buyer of the subject property and, after adjustment, can be utilized as an indicator of market value for the subject property. After adjustment, the indicated range of value for the subject is from $5.36 to $7.34 per square foot with an average of $6.18 per square foot. All comparables given about similar weight, therefore, the mid range is considered appropriate. Given the data a correlated value for the upland is reflected below. Low and wetland typically is valued at between 5% and 20% of upland value depending on the utility of it. The subject wetland area is estimated to be in the mid range, say 10%. Upland: 74,077 SF x $6.20 per SF = $459,277 Wetland: 9,598 SF x $0.62 per SF = 5,951 1 otal $465,000 Rnd 30 Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com RECONCILIATION Value Opinion by Cost Approach: Value Opinion by Income Approach: Value Opinion by Sales Comparison Approach: Not Applied Not Applied $465,000 The Cost Approach to value was not applicable. Consistent with the highest and best use, the subject is being appraised as vacant development land, rendering the Cost Approach inapplicable. The Direct Sales Comparison Approach to value analyzed recent sales of buildings as compared with the characteristics of the subject property. Adjustments were made to the comparables to make them as similar to the subject as possible. This results in an indication of market value at which the typical buyer would be willing to pay for the subject property. The comparables used are all competing properties located in the subject market and are considered to provide a reliable estimate of market value. Sales data for the subject property was felt to be relatively average. The Income Approach to value was not applicable. Consistent with the highest and best use, the subject is being appraised as vacant development land. Vacant commercial land is rarely rented, rendering the Income Approach an unreliable indicator of value for the subject property. Conclusion: The Sales Comparison Approach is the only applicable approach to value. Therefore, the appraised value opinion is: Final As -Is Value Opinion $465,000 Market Value Opinion (See Limiting Conditions at Rear of Report): Note: Final value reflects "market exposure" time of under 1 year before the effective date of the appraisal. Changes in the market and/or building subsequent to the effective appraisal date could impact market value. Nagell Appraisal & Consulting ; 952-544-8966 ; www.Gallnagell.com 31 TYPE AND DEFINITION OF VALUE This report provides an opinion of market value. MARKET VALUE - The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a) buyer and seller are typically motivated; b) both parties are well informed or well advised, and each acting in what they consider their own best interest; c) a reasonable time is allowed for exposure in the open market; d) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and e) the price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Source. The Dictionary of Real Estate Appraisal, 4"h Addition. Appraisal Institute ENVIRONMENTAL & BUILDING CONDITIONS Regarding any adverse environmental and/or improvement structural conditions (such as, but not limited to, hazardous wastes, toxic substances, mold, construction defects or inadequacies etc.) present in the improvements, on the site, or in the immediate vicinity of the subject property, none are apparent, however, appraiser is not an expert in this field, value assumes no hazardous or significant structural conditions exist. Value assumes any abandoned wells will be properly sealed. If any of these conditions exist the appraised value could differ significantly. 32 Nagell Appraisal & Consulting ; 952-544-8966 I www.callnagell.com CERTIFICATION certify that, to the best of my knowledge and belief: 1) The statements of fact contained in this report are true and correct 2) The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial and unbiased professional analysis, opinions, and conclusions. 3) 1 have no (or specified) present or prospective interest in the property that is the subject of this report, and no (or the specified) personal interest with respect to the parties involved. 4) 1 have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5) My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6) My compensation for completing this assignment is not contingent upon the development or reporting of predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7) My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 8) For William R. Waytas, the reported analyses, opinions and conclusions were developed, and this report has been prepared in conformity with the requirements of the Appraisal Institute's Code of Professional Ethics and Standards of Professional Appraisal Practice, which includes the Uniform Standards of Appraisal Practice. 9) William R. Waytas has made a personal inspection of the property that is the subject of this report. (If more than one person signs the report, this certification must clearly specify which individuals did and which individuals did not make a personal inspection of the appraisal property). 10) No one provided significant professional assistance to the person signing this report. (If there are exceptions, the name of each individual providing significant professional assistance must be stated.) 11) In accordance with the competency provision of the USPAP, we have verified that our knowledge, experience and education are sufficient to allow us to competently complete this appraisal. See attached qualifications. 12) As of the date of this report, William R. Waytas had completed the requirements of the continuing education program of the Appraisal Institute. 13) The use of this re ort is subject to the equirements of the Appraisal Institute relating to review by its duly authorized r p entativee. William R. Waytas, SRA, CR Certified General MN 4000813 Date: 11 /27/2007 Nagell Appraisal & Consulting ; 952-544-8966 ; www.cailnagell.com 33 EXTRAORDINARY ASSUMPTIONS OR HYPOTHETICAL CONDITIONS As stated by USPAP, 2005; Extraordinary Assumption: An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions of conclusions. This appraisal assumes a legal lot that it is buildable (that is will allow for a typical size building and location within the site given the overall lot size) with the street in place and all and any assessments are paid in full. The user of the report should recognize the cost to cure site issues, special assessment and management time should be subtracted from the appraisal value to determine the net "as is" value. Hypothetical Condition: That which is contrary to what exists but is supposed for the purpose of analysis. None ASSUMPTIONS AND LIMITING CONDITIONS 1. The appraisers assume no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor do the appraisers render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership and good management. 2. The furnished legal description is assumed to be correct. 3. Any sketch in the report may show approximate dimensions and is included to assist the reader in visualizing the property. The appraisers have made no survey of the property. It is assumed unless otherwise noted that no survey has been viewed and that all improvements are located within the legally described property. 4. The appraisers are not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been previously made therefore. 34 Nagell Appraisal & Consulting 1 952-544-8966 ; www.callnagell.com Assumptions and Limiting Conditions -- continued 5. The distribution of the total valuation in this report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. 6. The appraisers assume that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The appraisers assume no responsibility for such conditions, or for engineering, which might be required to discover such factors. 7. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, radon gas, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 8. Information, estimates, and opinions furnished to the appraisers, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, the appraisers can assume no responsibility for accuracy of such items furnished the appraisers. 9. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the appraisers are affiliated. No part of the contents of this report, or copy thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, reference to any professional appraisal organizations, or the firm with which the appraiser is connected), shall be disseminated to the public through advertising, public relations, news, sales, or any other public means of communications without the prior written consent and approval of the appraisers. 10. The appraisers have no present or contemplated future interest in the property appraised; and neither the employment to make the appraisal, nor the compensation for it, is contingent upon the appraised value of the property. The appraisers have no personal interest or bias with respect to the parties involved. 11. The appraiser has personally inspected the subject site. To the best of the appraiser's knowledge and belief, all statements and information in this report are true and correct, and the appraisers have not knowingly withheld any significant information. Nagell Appraisal & consulting ; 952-544-8966 ; www callnagell com 35 Assumptions and Limiting Conditions -- continued 12. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, unbiased professional analyses, opinions, and conclusions. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 13. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific compliance survey and analysis of the property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. 14. No one provided significant professional assistance to the person(s) signing this report 15. This appraisal assignment was not based on a requested minimum valuation or specific valuation or approval of a loan. 16. To the best of our knowledge and belief, the reported analysis, opinions, and conclusions were developed, and this report was prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. 36 Nagell Appraisal & Consulting; 952-544-8966 ; www.callnagell.com CURRICULUM VITAE William R. Waytas Appraisal Experience Presently and since 1985, William R. Waytas has been employed as a full time real estate appraiser. Currently a partner and President of the Nagell Appraisal & Consulting, an independent appraisal firm (8 appraisers) who annually prepare 1,500 +/- appraisal reports of all types. Mr. Waytas was employed with Iver C. Johnson & Company, Ltd., Phoenix, AZ from 1985 to 1987. Properties appraised: Commercial - low and high -density multi -family, retail, office, industrial, restaurant, church, strip -mall, fast-food, convenience stores, auto -service and repair, hotel, hotel water park, bed & breakfast, cinema, marina, numerous special use properties, and subdivision analysis. Residential — single-family residences, hobby farms, lakeshore, condominiums, townhouses, REO and land. Eminent Domain — extensive partial and total acquisition appraisal services provided to numerous governmental agencies and private owners. Special Assessment — numerous street improvement and utilities projects for both governmental and private owners. Review — residential, commercial and land development. Clients - served include banks, savings and loan associations, trust companies, corporations, governmental bodies, relocation companies, attorneys, REO companies, accountants and private individuals. Area of Service - most appraisal experience is in the greater/metro area (typically an hour from downtown metro) of Minneapolis/St. Paul, MN. Numerous assignments throughout Minnesota. Professional Membership, Associations & Affiliations License: Certified General Real Property Appraiser, MN License #4000813. Appraisal Institute: SRA, Senior Residential Appraiser Designation, General Associate Member Employee Relocation Council: CRP Certified Relocation Professional Designation. International Right -Of -Way Association: Member HUD/FHA: On Lender Selection Roster and Review Appraiser DNR: Approved appraiser for Department of Natural Resources Testimony -- Court, deposition, commission, arbitration & administrative testimony given. Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com 37 Curriculum Vitae -- continued Mediator -- Court appointed in Wright County. Committees -- President of Metro/Minnesota Chapter, 2002, Appraisal Institute. -- Chairman of Residential Admissions, Metro/MN Chapter, Al. -- Chairman Residential Candidate Guidance, Metro/Minnesota Chapter, Al. -- Elm Creek Watershed Commission, Medina representative 3 years. Education -- Graduate of Bemidji State University, Minnesota. B.S. degree in Bus. Ad. -- During college, summer employment in building trades (residential and commercial). -- Graduate of Cecil Lawter Real Estate School. Past Arizona Real Estate License. -- General & Professional Practice Courses & Seminars -- Course 101-Introduction to Appraising Real Property. -- Numerous Standards of Professional Practice Seminar. -- Fair Lending Seminar. -- Eminent Domain & Condemnation Appraising. -- Eminent Domain (An In -Depth Analysis) -- Property Tax Appeal -- Eminent Domain -- Business Practices and Ethics -- Scope of Work -- Construction Disturbances and Temporary Loss of Going Concern -- Uniform Standards for Federal Land Acquisitions (Yellow Book Seminar) Commercial/Industrial/Subdivision Courses & Seminars -- Capitalization Theory & Techniques -- Highest & Best Use Seminar -- General & Residential State Certification Review Seminar -- Subdivision Analysis Seminar. -- Narrative Report Writing Seminar (general) -- Advanced Income Capitalization Seminar -- Advanced Industrial Valuation -- Appraisal of Local Retail Properties -- Appraising Convenience Stores -- Analyzing Distressed Real Estate -- Evaluating Commercial Construction Residential Courses & Seminars -- Course 102-Applied Residential Appraising -- Narrative Report Writing Seminar (residential) -- HUD Training session local office for FHA appraisals -- Familiar with HUD Handbook 4150.1 REV-1 & other material from local FHA office -- Appraiser/Underwriter FHA Training -- Residential Property Construction and Inspection -- Numerous other continuing education seminars for state licensing & Al 38 Nagell Appraisal & Consulting 1 952-544-8966 I www.r-allnagell.com ADDENDA Nagell Appraisal & Consulting ; 952-544-8966 ; www callnagell.com 39 BRAUN INTERTEC April 14, 2006 Mr. Adam Nafstad, PE, City Engineer City of Albertville 5975 Main Avenue Northeast Albertville, MN 55301 Re: Geotechnical Evaluation Proposed Albertville Ice Arena Expansion Lachman Avenue Albertville, Minnesota Dear Mr. Nafstad: Braunlnterle.Corporation Phone: 320.253.9940 152024th Avenue N Fox: 3 70.25 3.3054 P.O. Box 189 Web: brounlMe4ec.com St. Cloud, MN 56302 Our Project AL-05-06259 We have completed the geotechnical evaluation you authorized. The purpose of the evaluation was to assist the City's consultants in designing foundations and in preparing plans and specifications for construction of the addition to the ice arena. The evaluation was completed in general accordance with our proposal to you dated December 31, 2005. Summary of Results We completed six borings in the proposed addition area and two in the proposed parking lot. the borings encountered bituminous pavement, fill, "possible fill" and buried topsoil to depths anging from 4 to 7 feet. (Some of the soils were designated "possible fill' because we could not letermine with confidence whether they were natural or fill (material placed my, man rather than )y nature)). Most of the existing fill and "possible fill" was rather soft to medium sandy lean lay. Natural sandy lean clay glacial till was generally encountered below the pavement, fill, possible fill" and buried topsoil. Penetration resistances indicated the natural clays ranged from oft to very stiff. iroundwater was observed in three borings, at depths ranging from 7 1/2 to 15 1/2 feet. It ppeared to be trapped in sand or silt seams in the sandy lean clay. The water level in the swamp 3uth of the site was about 4 feet lower than the site, ummary of Recommendations ddition. Existing fill and topsoil should not be relied upon for support of foundations and floor abs. We recommend existing fill and topsoil be removed from the proposed addition and its mrsize area. After the pavement has been removed, several test pits should be dug to better raluate the origin of the "possible fill." If it is found to be natural soil, it is our opinion most of can be left in place under the proposed addition. If it does not appear to be natural soil, it could be removed from the proposed addition and its oversize area. Backfill and fill should on be placed and compacted to design grades. Providing engineering and environmental solutions since 1957 at,, Nagell Appraisal & Consulting ; 952-544-8966 ; www,Gallnagell.com City of Albertville Project AL-05-06259 April 14, 2006 Page 2 Soft clays were encountered in two of the borings. Some subexcavation of soft clays and backfilling with compacted material may be required to provide adequate support for footings. Pavement Areas. In the proposed pavement areas, we recommend topsoil and black soils within 2 feet of the bottom of the aggregate base of the proposed pavements be removed. In truck access and drive areas, we recommend topsoil and black soils within 3 feet of the bottom of the aggregate base of the proposed pavements be removed. Backfill and fill should then be placed and compacted to desired grades. We recommend the pavements be designed for lean clay subgrades. General Please refer to the attached report for a more detailed summary of our analyses and recommendations. If you have any questions regarding this report, please contact Bruce Thorson in our St. Cloud office at 320.253.9940. For observations and testing during construction, please contact Dave Bomersine in our Albertville office at (763) 497-4159. Sincerely, BRAUN INTERTEC CORPORATION Joseph C. Butler, EIT Project Engineer Bruce M. Thorson, PE Senior Engineer Attachment: Geotechnical Evaluation Report Nagell Appraisal & Consulting ; 952-544-8966 ; www.callnagell.com 41