Agenda 09/26/2017 Item #16A3409/26/2017
EXECUTIVE SUMMARY
Recommendation to approve a Purchase Agreement for the purchase of two (2) fee simple parcels
(Parcels 103FEE1 and 103FEE2) required for roadway improvements at the intersection of Airport
Road and Davis Boulevard (Project No. 60148) Fiscal Impact: Approximately $695,950.
OBJECTIVE: To acquire right-of-way in the form of two fee simple parcels for the construction of
intersection improvements at Airport Road and Davis Boulevard, Project 60148 (the “Project”).
CONSIDERATIONS: Southbound Airport Road is a three-lane roadway. As it approaches Davis
Boulevard, however, the right lane becomes a “right-turn-only” lane for vehicles turning west onto Davis
Boulevard. This restricts traffic as it forces through traffic in the right lane to me rge into the center lane.
Collier County is seeking to purchase two fee simple right -of-way parcels needed for construction of the
Project, which will add a dedicated right turn lane in this location, while retaining all three southbound
through-lanes and thereby improve the capacity of the intersection.
The parent tract for both parcels is the 0.861 acre “Combs Oil” property, which is an operating wholesale
oil distribution facility located on the northwest corner of Davis Boulevard and Airport Road wi th
additional frontage on Terrace Avenue. The first parcel (Parcel 103FEE1) is an irregularly shaped strip of
land at the northwest corner of the intersection of Airport Road and Davis Boulevard with approximately
140 feet of frontage on Davis Boulevard and approximately 175 feet of frontage along Airport Road.
This proposed right-of-way parcel contains approximately 6,399 square feet. The second parcel (Parcel
103FEE2) is also irregularly shaped with approximately 90 feet of frontage on Airport Road and a width
that tapers from approximately 19 feet down to approximately 14 feet. This second parcel contains
approximately 1,359 square feet.
County staff has had informal and occasional discussions with Mr. Dennis Combs (owner of Combs Oil)
over several years expressing our desire to purchase these parcels and construct the intersection
improvements. Negotiations were forestalled and hindered by ongoing difficulties Mr. Combs was
experiencing with various governmental entities (County, and local and sta te Fire Authorities) pertaining
to his new custom-designed petroleum distribution facility located at 76 Industrial Boulevard, to which he
intends to relocate, but has been unable to due to a withheld Certificate of Occupancy (relating to
contentious, costly and conflicting state/local Fire Authority directives). Mr. Combs’ refusal to negotiate
at this stage would typically force Collier County to condemn the required lands through its power of
eminent domain, but staff recognized that this process would likely be very costly due to the nature of the
property involved and the likely damage claims the County could face. Instead, staff offered to try to
assist Mr. Combs in resolving the issues preventing his relocation into the new facility (with the hope of
fostering a non-litigious acquisition of the Airport-Davis parcels). Several meetings were subsequently
organized by County staff (including the County Manager) with Mr. Combs, his attorney and the various
entities involved in the permitting of his new facility. Agreement was finally achieved between Mr.
Combs and the interested parties on a way forward to resolve the issues that prevented his relocation into
his new facility. At this point, Mr. Combs expressed his willingness to negotiate the sale of the parcels
the County required for its project.
As part of the acquisition process, Collier County obtained an appraisal of the parcels by an experienced
eminent domain real estate appraiser familiar with the valuation of complex partial takings involving
commercial properties (see appraisal attached). The appraised compensation for these parcels totals
$685,800, which is inclusive of land and improvements in the take areas and severance damages to the
remaining improvements/lands (the remainder no longer having sufficient size or access for continued use
as a wholesale oil distribution facility and limited potential for redevelopment as a stand -alone tract).
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Staff has negotiated this amount as full compensation for this acquisition; as a condition of acceptance,
Mr. Combs requires that he be allowed to remain at his current location until he is able to move to his new
premises, or until January 1, 2019, whichever is later. Various regulatory permit fees in the amount of
$10,000 have been expended by Mr. Combs for which he requests re-imbursement and staff agreed to
recommend that the Board reimburse Mr. Combs for these fees in an effort to facilitate this increasingly
complicated transaction.
On or about May 12, 2017, Mr. Combs sold the Airport-Davis Combs Oil property (the parent tract) to
TT of Tamiami, Inc. which is in the process of establishing a Porsche automobile dealership at that
intersection. TT of Tamiami, Inc. has agreed to all of the terms which County staff had negotiated with
Mr. Combs, with Mr. Combs being a third-party beneficiary under the terms of the Purchase Agreement.
The attached Purchase Agreement provides for a purchase price of $685,800 to be paid to TT of Tamiami,
Inc., plus an additional $10,000 to be paid to Mr. Combs at closing to cover fees incurred relating to
obtaining his certificate of occupancy on Industrial Boulevard.
The Purchase Agreement also contains an addendum (Exhibit “B”). As is apparent from this exhibit, Mr.
Combs’ sale agreement with TT of Tamiami, Inc., requires that this addendum be made a part of any
agreement between TT of Tamiami, Inc., and Collier County for the acquisition of the Parcels. Pursuant
to Exhibit “B”, “Mr. Combs undertakes to use his best endeavors and to move diligently forward with
obtaining all required permits and a certificate of occupancy to enable him to relocate his business” to 76
Industrial Boulevard. “Provided that Mr. Combs complies with the aforesaid obligations, County shall
not commence construction” of the County’s road project until Mr. Combs has relocated to 76 Industrial
Boulevard “or before January 1, 2019, whichever is sooner.” If Mr. Combs is unable to relocate to his
new premises by reason of the County’s “obstructionist, non-responsive or obfuscatory acts or omissions
in regards to Mr. Combs’ attempt to obtain a certificate of occupancy,” then the January 1, 2019 deadline
to vacate the property will not apply. Paragraph 4 of the Purchase Agreement makes it clear that Collier
County makes no admission of any such acts or omissions. In addition, in the event that the fees
necessary to obtain the Certificate of Occupancy are in excess of $10,000 due to “obstructionist, non -
responsive or obfuscatory acts or omissions” by the County, the County shall reimburse Mr. Comb s for
the additional expenses in excess of $10,000.
Staff has been closely monitoring, and will continue to closely monitor, Mr. Combs’ progress in obtaining
the necessary certificate of occupancy to relocate his business.
There were concerns regarding possible contamination because the site is a former gas station. On April
6, 2017, Mr. Combs received a Site Rehabilitation Completion Order (copy attached) from the Florida
Department of Environmental Protection confirming that he was released from any further obligation and
no further action is required. Staff believes it is prudent to further test the groundwater to determine
whether any remediation is necessary within our project limits. Staff’s design consultant, Greg Schultz,
PE, Senior Project Manager for Cardno has advised that, if necessary, remediation and associated costs to
cure should not exceed $75,000, which would include both consulting and construction fees.
Staff is recommending that the Board of County Commissioners approve the Purcha se Agreement for the
purchase of the Parcels.
FISCAL IMPACT: Funds in the amount of $695,950 ($685,800 purchase price; $10,000 Certificate of
Occupancy fees; and approximately $150 recording fees) are available in the Airport Road S & Davis
Boulevard Transportation Capital Improvement Project No. 60148. The primary funding source for the
acquisition of right-of-way is impact fees. New roadway construction has a maintenance curve of
approximately five to seven years before any incremental costs are required for repairs.
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LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. There are two
issues that concern me. The first issue is that there is uncertainty as to whether Mr. Combs will ever
receive a Certificate of Occupancy for his new business, which I am advised has been held up by Fire
review (and not by the County), and which requires his due diligence in obtaining (he may, for example,
change his mind). This concern is somewhat lessened if we view this acquisition as reserving sc arce
right-of-way for an important future project; once the right-of-way is acquired, the actual construction can
take place once the issue with Mr. Combs (or his eventual successor in interest) is resolved (either
amicably or through litigation), which may be some undetermined time in the future. The second issue of
concern is the nature of the site. This is a petroleum distribution facility, with a known petroleum spill.
Purchasing a site of this nature will always have an inherent risk of a future oil plume migrating to and
showing up at a neighboring property. Staff has dealt with these concerns as best as could be expected in
the Purchase and Sale Agreement, but cannot eliminate these risks. It boils down to weighing the need of
acquiring this right-of-way against the inherent risks of the transaction, which risks are difficult to
quantify. With that noted, this item is approved as to form and legality and requires a majority vote for
Board approval. - JAK
GROWTH MANAGEMENT IMPACT: This recommendation is consistent with the Long Range
Transportation Plan and the Collier County Growth Management Plan.
RECOMMENDATION: To:
Approve the Purchase Agreement and authorize the Board’s Chairman to execute same on behalf of
the Board;
Accept the conveyance of Parcels 103FEE1 and 103FEE2 and authorize the County Manager, or his
designee, to record the conveyance instrument in the public records of Collier County, Florida;
Authorize the payment of all costs and expenses that Collier County is required to pay under the
terms of the Purchase Agreement to close the transaction;
Authorize the County Manager, or his designee, to take the necessary measures to ensure the
County’s performance in accordance with the terms and conditions of the Purchase Agreement; and
Authorize any and all budget amendments required to carry out the collective will of the Board.
Prepared by: Michelle L. Sweet, Property Acquisition Specialist, Transportation Engineering Division,
Growth Management Department
ATTACHMENT(S)
1. Location Map - 103FEE1 (PDF)
2. Location Map - 103FEE2 (PDF)
3. [Linked] Appraisal 103FEE (PDF)
4. Purchase Agreement (PDF)
5. 4-6-2017 SRCO (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.A.34
Doc ID: 3569
Item Summary: Recommendation to approve a Purchase Agreement for the purchase of two (2)
fee simple parcels (Parcels 103FEE1 and 103FEE2) required for roadway improvements at the
intersection of Airport Road and Davis Boulevard (Project No. 60148) Fiscal Impact: Approximately
$695,950.
Meeting Date: 09/26/2017
Prepared by:
Title: Property Acquisition Specialist – Transportation Engineering
Name: Michelle Sweet
08/08/2017 9:31 AM
Submitted by:
Title: Division Director - Transportation Eng – Transportation Engineering
Name: Jay Ahmad
08/08/2017 9:31 AM
Approved By:
Review:
Growth Management Operations Support Allison Kearns Additional Reviewer Completed 08/08/2017 3:52 PM
Growth Management Department Gene Shue Additional Reviewer Completed 08/08/2017 4:19 PM
Capital Project Planning, Impact Fees, and Program Management Rookmin Nauth Additional Reviewer Completed 08/10/2017 1:16 PM
Road Maintenance Travis Gossard Additional Reviewer Completed 08/10/2017 1:19 PM
Transportation Engineering Mark McCleary Additional Reviewer Completed 08/10/2017 2:59 PM
Transportation Engineering Kevin Hendricks Additional Reviewer Completed 08/14/2017 9:37 AM
Growth Management Department Diane Lynch Level 1 Reviewer Completed 08/14/2017 10:55 AM
Transportation Engineering Jay Ahmad Additional Reviewer Completed 08/15/2017 7:02 AM
Growth Management Department Michelle Sweet Additional Reviewer Skipped 08/08/2017 9:31 AM
Growth Management Department James French Additional Reviewer Completed 08/15/2017 10:24 AM
County Attorney's Office Emily Pepin Level 2 Attorney Review Completed 08/21/2017 12:18 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/21/2017 1:36 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 08/22/2017 2:49 PM
Budget and Management Office Mark Isackson Additional Reviewer Completed 08/29/2017 12:25 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 08/30/2017 3:47 PM
Board of County Commissioners Michael Cox Meeting Completed 09/12/2017 9:00 AM
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LOCATION MAP – PARCEL 103FEE1
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Packet Pg. 903 Attachment: Location Map - 103FEE1 (3569 : 60148-103FEE - Airport Road - Combs)
LOCATION MAP – PARCEL 103FEE2
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Packet Pg. 904 Attachment: Location Map - 103FEE2 (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 905 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 906 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 907 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 908 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 912 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 913 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 914 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 915 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 917 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 918 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 920 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 921 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 922 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 923 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 924 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 925 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 926 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 927 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 928 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 929 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 930 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 931 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 932 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 933 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 934 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 935 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 936 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
1
_______________________________________________________________
APPRAISAL REPORT
PARCEL NO. 103
AIRPORT RD @ DAVIS BLVD
PROJECT: INTERSECTION IMPROVEMENT
COLLIER COUNTY
R & W ENTERPRISES, INC.
2186 COFFEE POT BLVD. NE
ST. PETERSBURG, FLORIDA 33704
Dan K. Richardson, PhD., MAI, AI-GRS
Cert Gen #RZ735 (Florida)
2
December 14, 2016
Collier County Growth Management Division
2885 South Horseshoe Drive
Naples, Florida 34104
Attn: Harry Henderson
Re: Parcel : 103
Assignment : 1500 Airport-Pulling Road
ROW Project # : Airport Rd & Davis Blvd. ROW
County : Collier
Dear Mr. Henderson:
Pursuant to Purchase Order 4500173474 and Notice to Proceed dated
October 25, 2016, I am submitting an appraisal of the fee taking
parcel identified above. The accompanying report describes the
data, analysis, and conclusions relevant to this narrative
appraisal of this petroleum distribution facility on a corner
site at the northwest corner of Airport-Pulling Road and Davis
Blvd.
The undersigned hereby certifies he has no past, present, nor
contemplated future interest in this property being valued for
this Collier County project. It is further certified that
neither the employment to make this appraisal nor the
compensation thereof, is contingent upon the value reported.
Both the client and the intended user are the Collier County
Growth Management Division.
A personal inspection of the subject property and all the
comparable sales has been made and, to the best of my knowledge
and belief, the statements, analyses, and opinions contained
within this appraisal report are correct (subject to the
statement of Assumptions and Limiting Conditions. After careful
consideration of this information, it is my opinion that the
subject property’s market value as of November 15, 2016 was:
PARCEL 103 (Fee Simple)
SIX HUNDRED EIGHTY-FIVE THOUSAND EIGHT HUNDRED DOLLARS
($685,800)
Respectfully Submitted,
Dan K. Richardson, PhD, MAI, AI-GRS
Cert Gen #RZ735 (Florida)
3
COLLIER COUNTY, FLORIDA
CERTIFICATE OF VALUATION
Parcel No.: 103
Road: Airport_Pulling So.
Job No.: Davis Bv Intersection
I hereby certify:
That I have personally inspected the property herein appraised and that I have
afforded the property owner the opportunity to accompany me at the time of
inspection, I have also made a personal field inspection of the comparable sales
relied upon in making said appraisal, the subject and comparable sales relied upon
in making said appraisal were as represented by the photographs contained in said
appraisal.
To the best of my knowledge and belief, the statements contained in the appraisal
herein are true and the information upon which the opinion expressed therein is
correct; subject to limiting conditions therein.
I understand that such appraisal is to be used in connection with the acquisition
of property for the construction of right-of-way and related facilities by Collier
County.
My appraisal has been made in conformity with the appropriate State laws,
regulations, policies and procedures applicable for the appraisal of right-of-way
for such purposes; and to the best of my knowledge no portion of the property
value entered on this certificate consists of items that are non-compensable under
established law of the State of Florida.
Neither my employment nor my compensation for making this appraisal and report is
in any way contingent upon the values reported herein.
I have no direct or indirect present or contemplated future interest in such
property or in any benefit from the acquisition of such property appraised. I have
performed services, as an appraiser, regarding the property that is the subject of
this report within the three-year period immediately preceding acceptance of this
assignment. My prior appraisal was dated February 18, 2015.
I have not revealed the findings and results of such appraisal to anyone other
than the proper officials of Collier County, Florida and I will not do so until so
authorized by Collier County officials, or until I am required by due process of
law, or until I am released from this obligation by having publicly testified as
to such findings.
My opinion of the market value for the part taken and damages, if any, of the
property appraised as of the 15th day of November, 2016, is $685,800__ based upon
my independent appraisal and the exercise of my professional judgment.
Market value should be allocated as follows:
LAND $ 271,600
IMPROVEMENTS $ 4,600
DAMAGES AND/OR
COST TO CURE $ 409,600
TOTAL $ 685,800
December 14, 2016 _________________________________
DATE Dan K. Richardson, PhD, MAI, AI-GRS
Cert Gen #RZ735 (Florida)
4
SUPPLEMENT TO CERTIFICATE OF THE APPRAISAL
PO No: 4500149372
Project: Airport Road & Davis Blvd. Intersection Improvement
Parcel: 103
I, the undersigned appraiser, do hereby additionally certify
that:
To the best of my knowledge and belief, the statements of
fact contained in this appraisal report, upon which the
analysis, opinions, and conclusions expressed herein are
based, are true and correct. This appraisal report sets
forth all the limiting conditions (improved by the terms of
my appraisal assignment or by the undersigned) affecting the
analysis, opinion and conclusions contained in this report.
This report has been made in conformity with and is subject
to the requirements of the Uniform Standards of Professional
Appraisal Practice. The report is also subject to an in
conformance with the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the
Appraisal Institute.
I have relied upon several exhibits prepared by IBI Group,
Inc. that illustrate the before and after conditions of the
subject. These exhibits are included in the appraisal and
identify IBI Group as the source.
An appraisal report valuing furniture, fixtures and
equipment was provided by Fred B. LaDue, II, ASA. I have
relied upon Mr. LaDue’s FF&E appraisal in the valuation of
the subject property.
The use of this appraisal report is subject to the
requirements of the Appraisal Institute and to the Real
Estate Appraisal Board relating to the review by its duly
authorized representatives. This requirement may be waived
in the case of condemnation appraisal reports, and then they
will only be released to the proper officials, and/or until
I am released from this obligation by having publicly
testified as to such findings.
As of the date of this report, I have completed the
requirements of the continuing education programs of the
Appraisal Institute and am competent to appraiser this
property type for this purpose and intended use.
5
As of the date of this report, I have been certified by the
State of Florida Real Estate Appraisal Board as a Certified
General Real Estate Appraiser (#RZ735) through November 30,
2018.
Certified By:
Dan K. Richardson, PhD, MAI, AI-GRS
Cert Gen #RZ735 (Florida)
December 14, 2016
6
Table of Contents
PROPERTY ADDRESS OR LOCATION..........................7
PROPERTY OWNER'S NAME AND ADDRESS.....................7
LEGAL DESCRIPTION.....................................7
PROPERTY INSPECTION...................................7
TYPE OF PROPERTY......................................7
HISTORY OF PROPERTY...................................8
DESCRIPTION OF THE PROPERTY...........................8
ZONING...............................................21
LAND USE PLANNING AND CONCURRENCE....................21
ASSESSED VALUE AND TAXES.............................22
PUBLIC AND PRIVATE RESTRICTIONS......................23
PROPERTY INTEREST APPRAISED..........................23
APPRAISAL PURPOSE....................................23
APPRAISAL PROBLEM....................................23
SCOPE OF THE APPRAISAL...............................24
MARKET VALUE DEFINITION..............................25
DESCRIPTION AND ANALYSIS OF GENERAL AREA
AND NEIGHBORHOOD.....................................25
HIGHEST AND BEST USE ANALYSIS........................25
APPROACHES TO VALUE OMITTED AS NOT APPLICABLE........27
ESTIMATE OF LAND VALUE (BEFORE THE TAKING)...........28
EXPLANATION OF ADJUSTMENTS...........................31
VALUE OF THE LAND ...................................34
COST APPROACH............................ ...........35
RECONCILIATION OF VALUE INDICATIONS - BEFORE.........41
VALUE OF THE FEE TAKING..............................42
VALUE OF THE REMAINDER AS PART OF THE WHOLE..........45
APPRAISAL OF THE REMAINDER, UNCURED..................46
DAMAGES….............................................53
COST TO CURE.........................................53
SUMMARY OF VALUES....................................54
SUMMARY OF TOTAL COMPENSATION........................54
ADDENDA
Parcel Information Sheets and Legal Description 56
Property Tax Assessment 60
Regional & Neighborhood Analysis 64
Comparable Land Sales Map 70
Comparable Land Sales Information Sheets 71
Appraisal Report for FF&E by Fred LaDue,II,ASA 106
Property Owner Notification Letter 145
Assumptions and Limiting Conditions 146
Appraiser's Qualifications 150
7
PROPERTY ADDRESS OR LOCATION
The subject property is located at the northwest corner of
Airport Pulling Road south at its intersection with Davis Blvd.
in Collier County. It has an address of 1500 Airport-Pulling
Road South, Naples, Florida.
PROPERTY OWNERS NAME AND ADDRESS
To the Collier County tax rolls the following is the present
owner:
Dennis R. Combs
1500 Airport Road South
Naples, Florida 34104
LEGAL DESCRIPTION
The legal descriptions for the fee simple acquisition, known as
Parcel 103: Fee1 and Fee2 right-of-way acquisition, were prepared
by AIM Engineering and Surveying, Inc. 5300 Lee Blvd, Lehigh
Acres, FL 33970. They are located in the Value of the Taking
section and in the addenda of this appraisal. There was no title
insurance commitment provided by the client. The legal
description for the parent tract is referenced from the property
appraiser’s property card:
Lots 29 -- 34, Block A, Rock Creek Park, as recorded in Plat
Book 1, Page 79, Public Records of Collier County, Florida,
situated in Section 2, Township 50 South, Range 25 East,
Collier County, Florida.
PROPERTY INSPECTION
Inspections of the subject property were conducted by Dr. Dan K.
Richardson, MAI, AI-GRS, on October 7, 2014, January 27, 2015,
and November 15, 2016, the date of value. For the initial
inspection, the appraiser was accompanied by Harry Henderson of
Collier County and associate appraiser, Ross Johnson, as well as
the owner, Dennis Combs.
TYPE OF PROPERTY
The subject property was improved with three buildings and a
canopy. These include a metal and masonry, 1-story, dock-height
storage structure containing approximately 930 SF; a 1-story
metal storage shed containing 300 SF; a 1-story frame office with
1-car carport containing 690 SF; and a 600 SF canopy over the
fuel distribution equipment. The subject property is located on
a signalized corner at the intersection of two major arterial
roads and is surrounded by an auto dealership, salvation army
youth center, light industrial and retail facilities.
8
HISTORY OF PROPERTY
Subject property has sold within the past five years:
Yes [ ] No [x]
The client provided no title research nor did the county property
appraiser indicate a deed of transfer with the past five years.
DESCRIPTION OF THE PROPERTY
Partial Taking [x]; Entire Taking [ ]; Vacant [ ]; Improved [x]
[x] Street Lights [ ] Septic Tank [x] Electric Service
[x] Telephone [x] Public Sewer [ ] Well & Pump
[x] Curbs [x] Public Sidewalks [x] Paved Street(s)
[x] Storm Drains [x] Public Water
1. Area: According to a survey and site plan
provided by the property owner, the
parent tract contains 37,500 SF
(0.861 acres).
2. Shape: Rectangular
3. Dimensions: 266.23’x 141.98’x 265.73’x 140.00’
4. Ingress/Egress: The subject property has three
driveways along on Airport Road and
one each on Davis Blvd. and Terrace
Avenue. The driveways access the
parking areas at the east and north
sides of the office building.
5. Topography: The subject property is slightly
above road grade.
6. Flood Plain Data: According to FEMA Viewer, Finalized
on May 16, 2012, the site is
located in Flood Zone ‘‘AE’’, an
area of 1% annual flood hazard
which required flood insurance.
7. Drainage: Site drainage appears adequate.
8. Soil: Based upon surrounding development,
the soils appear capable of
supporting an urban use of the
subject property.
9. Utilities on Site: The property has available public
electricity, telephone, water and
sewer services.
9
10. Site Improvements: Asphalt, gravel, and concrete
paving, concrete curb and sidewalk,
parking striping, monitor wells,
irrigation, grated inlets,
underground piping, underground
tanks, fueling equipment, chain
link fencing, signs with ground
lighting, landscaping, sod, and
trees and shrubs as well as a
mailbox and water meter.
11. Easements, encroachments
and restrictions: No title work was provided nor were
any easements, encroachments, or
restrictions noted on the old
survey provided by the property
owner.
12. Building
Improvements: The subject parent tract is
improved with three buildings and a
metal canopy. These include a
metal and masonry, 1-story, dock-
height storage structure containing
approximately 930 SF built in 1964;
a 1-story metal storage shed
containing 300 SF built in 1964; a
1-story frame office with 1-car
carport containing 690 SF built in
1948; and a 600 SF canopy over the
fuel distribution equipment built
in 1964.
13. Property: [ ] Leased; [ ] Rented; [x] NA
Owner-Occupied
10
SUBJECT PHOTOGRAPHS
Photo #1 -- View Northeast from Davis Blvd. at Southwest Corner;
Photo taken by Dan K. Richardson on November 15, 2016
Photo #2 -- View Northwest across Davis Blvd. at Southeast Corner;
Photo taken by Dan K. Richardson on November 15, 2016
11
Photo #3 -- View Southwest across Airport Rd at Northeast Corner;
Photo taken by Dan K. Richardson on November 15, 2016
Photo #4 - View Southeast from Terrace Avenue at Northwest Corner
Photo taken by Dan K. Richardson on November 15, 2016
12
Photo #5 - View South along Airport Road South -- Subject at Right
Photo taken by Dan K. Richardson on November 15, 2016
Photo #6 -- View East along Airport Road South-- Subject at Left
Photo taken by Dan K. Richardson on November 15, 2016
13
Photo #7 - View West along Davis Blvd. -- Subject at Right
Photo taken by Dan K. Richardson on November 15, 2016
Photo #8 -- View West along Terrace Avenue-- Subject at Left
Photo taken by Dan K. Richardson on November 15, 2016
14
Photo #9-- Interior View of Office Area;
Photo taken by Dan K. Richardson on October 7, 2014
Photo#10- Interior View of Storage Area in Warehouse;
Photo taken by Dan K. Richardson on October 7, 2014
15
Photo#11--View South from Terrace Avenue at Parcel 103 Take Area;
Photo taken by Dan K. Richardson on November 15, 2016
Photo#12-View North from Davis Blvd. at Parcel 103 Take Area;
Photo taken by Dan K. Richardson on November 15, 2016
16
Aerial of Parcel 103
Parent Tract
17
PARENT TRACT
18
PARENT TRACT AND TAKE AREA
19
REMAINDER PARCEL, UNCURED
20
SURVEY PROVIDED BY PROPERTY OWNER
21
ZONING
The subject property is zoned C-5, Heavy Commercial. In addition
to the uses provided in the C-4 zoning district, the heavy
commercial district C-5 allows a range of more intense commercial
uses that tend to utilize outside space in the conduct of the
business. The C-5 district permits heavy commercial services
such as full-service automotive repair, and establishments
primarily engaged in construction and specialized trade
activities such as contractor offices, plumbing heating and air
conditioning services, and similar uses that typically have a
need to store construction associated equipment and supplies
within an enclosed structure or have showrooms displaying the
building material for which they specialize. Outdoor storage
yards are permitted with the requirement that such yards are
completely enclosed or opaquely screened. Location criteria in
the Collier County Growth Management Plan guides where the C-5
district is established.
Development standards in the C-5 District include:
Lot Size No Minimum
Width No Minimum
Setbacks:
Front 25'
Side 25’
Rear 15’/25’
Maximum Height NA
Minimum Floor Area NA
The C-5 zoning classification of the subject property is not
likely to change in the near future.
LAND USE PLANNING AND CONCURRENCE
The Collier County Growth Management Plan designated the parcel
to be within the Gateway Triangle Mixed Use Overlay District
(GTMUD). Development standards in this activity center are
governed by requirements of the underlying zoning district
requirements and the mixed use activity center subdistrict
requirements in the Future Land Use Element (FLUE). Property
owners may establish uses, densities and intensities in
accordance with the existing Land Development Code (LDC)
regulations of the underlying zoning classification, or may elect
to develop/redevelop under the provisions of the applicable GTMUD
Subdistrict. In either instance, the GTMUD site development
standards apply.
The purpose and intent of the GTMUD Mixed Use Subdistrict is to
provide for pedestrian-oriented commercial and mixed use
developments and higher density residential uses. Developments
will reflect traditional neighborhood design building patterns.
22
Individual buildings are encouraged to be multi-story with uses
mixed vertically, with street level commercial and upper level
office and residential. Included in this District is the “mini-
triangle” formed by US 41 on the South, Davis Blvd. on the North,
and Commercial Drive on the East, which is intended to serve as
an entry statement for the Bayshore Gateway Triangle CRA and a
gateway to the City of Naples.
The GTMUD-MXD dimensional requirements are outlined in the
following table:
ASSESSED VALUE
Taxing Authority : Collier County
Folio Number(s) : 70720480008; 70720440006
Assessed Value
Land :$ 374,438
Improvements :$ 29,643
Total :$ 404,081
Taxes (2016) :$ 4,648.13
23
Taxes for 2016 in the total amount of $4,462.21 were paid on
November 29, 2016. Property taxes were based upon a 2016 millage
rate of 11.5030. The taxes were considered typical of the
neighborhood with no special benefit or unusual burden accruing
to the property.
PUBLIC AND PRIVATE RESTRICTIONS (Describe effect or limitation)
No title search was provided by the client, Collier County, and
no restrictions were identified on the survey provided by the
property owner.
PROPERTY INTEREST APPRAISED
The property rights appraised herein are those associated with a
Fee Simple Estate. According to the Dictionary of Real Estate
Appraisal, Fifth edition, as published by The Appraisal
Institute, this interest is defined as follows:
‘‘Absolute ownership unencumbered by any other interest or
estate, subject only to the limitations imposed by
government actions of taxation, eminent domain, police
power, and escheat.’’
APPRAISAL PURPOSE AND INTENDED USE
The appraisal purpose is to estimate the market value of the
parent tract, the property to be acquired (i.e., Fee Take), and
the remaining property as well as damages and special benefits,
if any. The Intended Use is to utilize a strip take along both
road frontages and corner clip in order to make necessary
improvements to the intersection of Airport Road South and Davis
Boulevard.
APPRAISAL PROBLEM
The appraisal problem is to estimate the present market value of
that portion of the subject parent tract that is to be acquired
in fee simple because it is needed for construction activities
associated with the planned improvements to intersection of
Airport Road and Davis Blvd. This road improvement project will
affect the subject parcel by taking a strip across all of the
subject’s Airport Road and Davis Blvd. frontages as well as a
corner clip at the corner of the intersection totaling 7,758 SF.
As a result of this ROW acquisition, the existing improvements on
the remainder will no longer function and, due to the 20.7%
reduction in site size, this lose of functional utility is
incurable.
24
SCOPE OF THE APPRAISAL
Vacant commercial land sales were researched for this narrative
appraisal because this parcel had a highest and best use as
commercial use consistent with the Airport Pulling Road and Davis
Boulevard corridors that intersect at the subject’s corner. Those
sales similar in highest and best use were considered the most
appropriate. The time period of this sales search involved land
sales for which information was available that occurred from late
2012 through mid-2016. Each sale was investigated and verified
with a knowledgeable party involved.
Land sales were selected for comparison with the subject parcel
on the basis of their highest and best use being for commercial
use. Among recent commercial land sales, five comparables were
identified, verified, inspected, and included in this analysis of
the subject’s land value. Listings of comparable vacant
commercial parcels were considered in support of zero time
adjustments for the 12/2012 -- 11/2016 period as well as
reconciliation of an indicated market value in the analysis of
land sales.
The existing light industrial buildings on the subject property
are near the end of their physical and economic life. Thus, the
existing improvements contribute an interim value in support of
the holding cost for the subject property. As shown in the
appraisal report on the furniture, fixtures and equipment (FF&E)
prepared by Fred B. LaDue, II, ASA, the underground storage tanks
have been closed in place and the facility is operating a tanker
truck to distribute fuel from this location. The value of the
FF&E in place reflects depreciation ranging from 60% to 95%. The
existing structures, ranging from 51 to 67 years old, remain in
office and storage use but represent an interim use of the site.
As a result of the acquisition, parking in front of the office
building no longer functions. In addition, the loss of tanker
truck access to the fuel distribution facility cannot be cured
and renders the remaining improvements dysfunctional to the point
they are an impediment to the value of the underlying land.
The cost of site improvements on the parent tract and in the fee
simple acquisition were estimated from the Marshall Valuation
Service in conjunction with cost estimates provided by engineers
and contractors for similar items on other recent ROW projects.
This appraisal report is presented in a narrative reporting
format as defined in the Uniform Standards of Professional
Appraisal Practice (USPAP).
25
MARKET VALUE DEFINITION
According to the Dictionary of Real Estate Appraisal, published
by the Appraisal Institute (Fifth Edition), the following
definition of Market Value is utilized within this report:
‘‘The most probable price in cash, as of a specified date,
financial arrangements equivalent to cash, or in other
precisely revealed terms, for which the appraised property
will sell in a competitive market under all conditions
requisite to fair sale, with the buyer and seller each
acting prudently, knowledgeably, and for self-interest, and
assuming that neither is under duress.’’
DATE OF VALUE The date of value of the subject property is
November 15, 2016.
DATE OF THE REPORT The date of this appraisal report is
December 14, 2016.
DESCRIPTION AND ANALYSIS OF GENERAL AREA AND NEIGHBORHOOD
Collier County Area and Neighborhood Description
See Addenda
HIGHEST AND BEST USE ANALYSIS
Highest and best use is defined by the Dictionary of Real Estate
Appraisal, fifth edition, as published by The Appraisal Institute
as follows:
‘‘The reasonable probable and legal use of vacant land or an
improved property, which is physically possible,
appropriately supported, financially feasible, and results
in the highest value. The four criteria the highest and
best use must meet are legal permissibility, physical
possibility, financial feasibility and maximum
profitability.’’
[x] same as present use, [ ] different from present use.
Land as vacant: Commercial
Property as Improved: Industrial -- Interim Use
In considering the highest and best use of the subject property,
uses that are physically possible, legally permissible,
financially feasible, and maximally productive must be
26
considered. The subject property size, location, and surrounding
land characteristics support an industrial use of the property.
Highest and Best use, as a Vacant site:
Physically Possible: The subject site contains 37,500+ SF and is
located on the northwest corner of Airport Road South and Davis
Boulevard. Public water, sewer, telephone, trash removal and
storm drainage are presently available and believed to be
adequate. Soil conditions were suitable for development of the
site.
Legally Permissible: The zoning was C-5, Heavy Commercial
District, and the Land Use Plan designation was for GTMUD-MXD,
Gateway Triangle Mixed Use Overlay District. The subject parent
tract lies within the Mixed Use Subdistrict of the GTMUD overlay.
In this subdistrict, commercial properties may have a height of
56 feet with provisions for up to 112 feet in height for an
approved MUP, Mixed Use Plan. The subject site’s frontage and
existing access on Airport Road South and Davis Blvd. as well as
Terrace Avenue provide adequate access. The subject site exceeds
the minimum lot width and is typical of the size of lots sold in
the market for commercial use.
Financially Feasible: The subject neighborhood is an established
older urban area with a stable population base that can support a
mix of residential and commercial uses for the subject property.
The area is planned for redevelopment with relatively more
intense land uses that envision a vertical mix of commercial
ground floor and residential upper floor uses. Given the subject
parent tract’s corner location at the intersection of two major
traffic arteries, the most financially feasible uses appear to be
highway oriented, single story, commercial uses.
Maximally Productive: (most profitable use) - Site size and
existing commercial land use indicate that the subject parent
tract can accommodate commercial development. Therefore, the
highest and best use of the site, as vacant, is for commercial
use.
Highest and Best Use, as Improved:
Subject property is improved with a small frame building used as
an office, two metal storage buildings, and a fueling facility
with canopy.
Physically Possible: The three subject buildings contain a total
of 1,920+ SF along with a 600 SF canopy over what once was a fuel
distribution facility. These improvements are clustered in the
northern half of the subject property where gravel, asphalt, and
concrete paving can support tanker and fuel trucks. The balance
of the site has been cleared and is used for open parking. Even
27
with employee parking accommodated on the vacant southern portion
of the site, the trucks involved in the distribution of fuel
functions, especially the tankers, have a difficult but still
functional access and on-site maneuver area. The operation of
trucks at the site is particularly dependent upon the driveway
access from Terrace Avenue located near the northeast corner of
the subject parent tract. The constricted on-site truck maneuver
space and resulting requirements for backing into the site from
adjoining right-of-ways represents functional obsolescence
presently affecting the parent tract, as improved.
Legally Permissible: The zoning was C-5, Heavy Commercial
District, and the Land Use Plan designation was for GTMUD-MXD,
missed use development. This zoning and land use permit
development of the site with a variety of uses and the zoning
appears to permit the current petroleum distribution and
warehousing use. In the absence of minimum lot size
requirements, the 37,500 SF subject property has the size as well
as the width and depth to accommodate the existing use without
non-conformities.
Financially Feasible: The subject neighborhood is an established
urban area with a stable population base that can support a mix
of commercial and light industrial uses for the subject property.
The size and scale of the existing fuel distribution facility
represents a severe under improvement of the subject site which
can accommodate many times the square foot of existing building
space. Hence, the existing light industrial and small office
improvements on the site represent an interim use.
Maximally Productive: (most profitable use) -- The existing
building and site improvements associated with the fuel
distribution operation represent an interim use of the subject
parent tract. Therefore, the highest and best use of the subject
parent tract, as improved, is to continue use of the existing
improvements until the market is ready for redevelopment of the
site to a more intense commercial use in 3-5 years.
APPROACHES TO VALUE OMITTED AS NOT APPLICABLE
[ ] MARKET [X] COST [X] INCOME
The Market Approach is the best approach for valuing the subject
property’s land. The cost approach would normally not be used
due to the age of the improvements; however, the unique nature of
the existing fuel distribution use warranted use of the cost
approach to value the existing special purpose improvements. An
income approach was not supported by the unique nature of the
existing use and the owner-occupancy of the subject parent tract.
28
ESTIMATE OF LAND VALUE (BEFORE THE TAKING)
The value of vacant land can best be estimated by the direct
sales comparison approach based upon the subject site’s highest
and best use. By using the sales comparison approach, which
compares the subject site to similar properties that have
recently sold, a value estimate for the subject site can be
estimated. This approach is applied using several steps.
1. Research, confirm and analyze recent sales considered
comparable to the subject site.
2. Adjust the sales selected for analysis for the subject
property utilizing appropriate techniques.
3. Estimate an appropriate unit of comparison such as
price per square foot, acre or unit to apply to the
subject property.
4. Estimate a final value conclusion using the available
information.
The reliability of this technique is dependent upon the degree of
comparability of each sale to the subject, markets conditions at
the time of sale, verification of pertinent data, and the absence
of unusual conditions that influence the sale.
The subject site contains a total of 37,500 SF. Commercial land
sales from 2012 to 2016 were included in this search for market
data to support an opinion of market value for the subject land.
This investigation of commercial land sales located in Collier
County that are comparable to the subject parent tract produced
five relatively current comparable sales that involved commercial
land. These five land sales were considered to be the best
available comparable sales for use in this analysis of market
value. Each comparable was researched, verified, and field
inspected prior to inclusion in this analysis of land value.
A summary of the adjustments and conclusions regarding the
comparable land sales can be found on the Summary of Vacant Land
Comparables and Adjustment Grid that follows.
Reference to the Comparable Land Sales Map, individual summaries
of comparable land sales, and supporting market data analyses are
incorporated in the addenda section.
29
PARENT TRACT LAND SALES GRID
30
COMPARABLE COMMERCIAL LAND SALES MAP
31
EXPLANATION OF ADJUSTMENTS
Introduction
The preceding transactions are a recent sampling of comparable
sales of commercial land located in the urbanized area of Collier
County. In order to allow comparison between the comparable
sales analyzed and the subject property, it was necessary to
adjust the sales for characteristic differences between them and
the subject property. Note that the subject land was analyzed on
a price per square foot unit of comparison since land suitable
for industrial development was found to be viewed by the "market"
on this basis.
Of the various land sales that were researched, five were
selected for analysis because they were the most comparable noted
from the local market for size, location, and desirability. These
five comparables had an unadjusted price range of $22.35 to
$40.14 per square foot with an average of $29.38 per square foot.
Specific considerations in this land sales analysis are discussed
in the following paragraphs.
Adjustments were provided to compensate for important value-
influencing differences between the subject property and the
comparable sales. Adjustments were made in a specific sequence.
Financing terms were considered first, then any aberrant
conditions of sale, and, finally, time or market-price level
adjustments.
These three adjustments were made first in order to bring each
comparable sale to a "current" basis before considering further
required adjustments. Other adjustments were then made for
physical characteristics such as location, access, shape, size,
utilities, and zoning. The first three elements of comparison
are sufficiently important as to warrant an explanation of each.
Financing Terms - The sales price of one property may differ from
that of an identical property due to different financing
arrangements. More favorable financing usually has the effect of
increasing the sale price.
During the time frame of this report, mortgage interest rates
varied from 4.5% to 5.5% for land agreement for deed loans and
were relatively stable. Any financing falling within this range
was considered "typical market financing" and did not require any
adjustment. Financing below the 4.5% base rate, therefore,
usually required a "Cash Equivalent" adjustment. All of the
comparable sales were sold for cash or financed via private
mortgages with market rates and terms; therefore, adjustments for
financing were not warranted.
Conditions of Sale - This adjustment pertains to any atypical
condition that would cause the sale price to be measurably higher
or lower than it would have been in the absence of the unusual
32
condition. Atypical conditions sometimes involve transactions
between relatives or corporations and their owners.
Special income tax situations could also necessitate a "condition
of sale" adjustment. In this instance, all of the comparable
sales analyzed represented arm's length transactions transferring
the unencumbered fee simple estate in the property. Therefore,
no adjustments were necessary for conditions of sale.
Market Conditions - This adjustment is often referred to as the
"time" adjustment. Among the five comparables, two occurred in
2013, one in 2012, and two occurred in 2010. An evaluation of
commercial land sales and listings in the Collier County market
indicated no discernable direction of movement of market values
for commercial land during the period 2010 through 2014.
Physical Adjustments - Differences in physical characteristics
involving parcel location, access, size, shape, utility service,
and zoning/land use between the comparable sales and subject
property were considered after the implementation of any
transactional adjustments.
The locations of three (i.e., Sales #5265-1074, 4996-4315 & 4870-
2745) of the five comparable sales were along urban major
thoroughfares equivalent to that of the subject property.
Therefore, no location adjustments were warranted for them.
However, Sale #6 is located within a commercial village cluster
surrounded by high density residential development, a superior
location relative to the subject parent tract warranting an
upward location adjustment. At the other end of the spectrum,
Sale #3 lacks the level of traffic and residential support
available to the subject parent tract; therefore, its inferior
situs warranted an upward location adjustment.
The subject property has signalized corner access at an arterial
road intersection as do all but two comparable land sales. Sale
#6 has an off-corner location somewhat off-set by cross access
and parking easements that warrants an upward access adjustment.
Sale #1 has an off-corner location combined with a rear frontage
road so it has access from opposite frontages within a commercial
subdivision near a signalized intersection. Sale #1 was adjusted
upward for its inferior off-corner access. The remaining three
comparable land sales were all accessed from signalized corners
and warranted no access adjustment.
The shape and configuration of the five comparable land sales are
predominately rectangular and; therefore, equivalent to the
rectangular shape of the subject parent tract. Therefore, no
adjustments for differences in configuration, or shape, were
necessary.
33
The sizes of the comparable sales ranged from 1.32 net acres up
to 1.78 net acres. The sizes of the five comparables were all
somewhat larger than the 0.86-acre subject parent tract; however,
all were sufficiently similar in size not to warrant adjustment.
Public utilities, with the possible exception of roadways, which
have the greatest impact on land use and market value may be
potable water and wastewater treatment facilities. The ability
to ‘‘tap in’’ to water and sewer lines that provide adequate flow
characteristics and are connected to treatment facilities with
adequate capacity to absorb additional demand is sometimes an
advantage reflected in the selling price of land located in
proximity to public water and sewer services. The subject was
connected to public water and sewer as were all five of the
comparables. Therefore, no utility adjustments were necessary
for any of the comparable commercial land sales.
The zoning classifications for the five comparable land sales all
permit commercial uses. The comparables’ equivalent zoning
relative to the subject parent tract supports similar commercial
highest and best use where each site typically will host a
commercial single user.
Discussion of Comparables
Sale 5286-3764 (Comp #6) sold on June 21, 2016 from Up
Development-Naples Dicks, LLC to Camelot of Miami, LLC. The sale
price was $3,112,000 for a 1.78-acre site that indicated a unit
price of $40.14/SF. The sale property is an outparcel of a
shopping center, anchored by a Costco, Kohl’s, and a Dick’s
Sporting Goods, located on the west side of Naples Boulevard
within the Naples Center Village PCD. Overall, this land sale
was considered superior to the subject parent tract and indicated
an adjusted unit value of $38.13/SF for the subject.
Sale 5265-1074 (Comp #7) sold April 15, 2016 from MidWestOne Bank
to Suncoast Credit Union. The sale price was $1,800,000 for a
1.32-acre site that indicated a unit price of $31.30/SF. This
site is located at the signalized intersection of Pine Ridge Road
and Kramer Drive approximately five miles northeast of the
subject parent tract. Overall, this land sale was considered
similar to the subject parent tract and indicated a unit value of
$31.30/SF for the subject.
Sale 4996-3415 (Comp #1) sold on December 30, 2013 from Creekside
West, Inc. to Rani Investments, LLC. The sale price was
$1,285,378 for a 1.32-acre site that indicated a unit price of
$22.35/SF. The property has frontage on Immokalee Road west of
Goodlette-Frank Road East approximately 9½ miles north of the
subject property. Overall, it was considered inferior to the
subject parent tract and, after adjustment for inferior access,
it indicated a unit value of $26.82/SF for the subject.
34
Sale 4916-0153 (Comp #2) sold on April 30, 2013 from Laupco, Inc.
and TCL of Naples, Inc. to Racetrac Petroleum, Inc. The sale
price was $1,600,000 for a 1.54-acre site that indicated a unit
price of $23.86/SF. The property is located at the signalized
intersection of Collier Blvd. and Manatee Avenue approximately 8
miles southeast of the subject parent tract. Overall, it was
considered inferior to the subject parent tract and indicated an
adjusted unit value of $26.25/SF for the subject.
Sale 4870-2745 (Comp #3) sold on December 21, 2012 from A. Grover
Matherey, Trustee to Boos-Immokalee, LLC. The sale price was
$1,850,000 for a 1.45-acre site that indicated a unit price of
$29.26/SF. The property is located at the signalized
intersection of Immokalee Road and Juliet Blvd. approximately 9
miles north of the subject parent tract. Overall, it was
considered similar to the subject parent tract and indicated a
unit value of $29.26/SF for the subject.
Land Value Conclusion
The five comparable land sales indicated an unadjusted range of
value for the subject site of $26.25 to $38.13 per square foot
with an average of $30.35 per square foot. The five comparable
sales required no or minimal adjustment; however, the subject
parent tract’s location in the Gateway Triangle Overlay suggests
reconciliation toward the upper limit of market value indicated
by the two most recent land sales.
After adjustments and careful consideration of the foregoing
data, it was my opinion that the value of the subject property
was $35.00 per square foot. Hence, the market value of the
subject, as of the effective date of appraisal, was calculated as
follows:
$35.00/SqFt x 37,500 SqFt = $1,312,500
Say, $1,312,500
Indicated Value of Parent Tract #103 - $1,312,500
35
COST APPROACH
The cost approach is a method of estimating value based upon the
principle of substitution that implies that a purchaser would pay
no more for a property than the cost of reproducing one of
equally desirable utility. This approach is most valid when
analyzing new improvements that have not experienced any loss in
value through normal wear and tear or other forms of
depreciation. The basic steps in this approach are outlined
below:
1 Estimate the reproduction or replacement cost new of
the subject improvements. This step results in the
estimate of the total cost of reproducing or replacing,
at current prices, the subject improvements.
2 Estimate the total accrued depreciation from all
sources. This is the total loss in value the subject
may have experienced through physical, functional, or
external factors that negatively influence the value of
the property.
3 Deduct the total estimated depreciation from the cost
new estimate and add the market value of the subject
site to arrive at the market value of the subject
property by the cost approach.
The cost approach is a summation of the values of the physical
components of the property including land, buildings, and site
improvements. To arrive at an indication of property value
through this approach, the depreciated cost of the improvements
was added to the value of the site, as though vacant and
available for its highest and best use. After estimating the
value of the parent site, the next step in the appraisal process
was to estimate the cost new of the improvements through either
the reproduction or replacement cost.
A Cost Approach was conducted for this appraisal using
replacement cost estimates (RCN) for the three 1-story buildings,
single canopy, and associated site improvements based upon
estimates derived from the Marshall Valuation Service adjusted to
reflect contractor and engineering estimates used in valuing the
partial acquisition of similar properties in southwest Florida.
In addition, an appraisal of the subject’s furniture, fixtures,
and equipment prepared by Fred B. LaDue, II, ASA, was relied upon
for estimates of replacement cost new, value in place and salvage
value.
36
REPLACEMENT COST NEW OF EXISTING IMPROVEMENTS
The cost new of the improvements utilized in the following analysis
were derived from the Marshall Valuation Service, a national
construction cost estimating service.
Buildings Replacement Cost Estimate
The calculator method was utilized in this estimate of the
replacement cost new of the existing buildings and site
improvements. The cost estimates for 1-story office and light
industrial buildings as well as the canopy were found in Section
14, Garages, Industrials, Lofts and Warehouses. The subject
buildings are similar to those associated with small office and
storage warehouses found on Page 26. The small office is a class
‘‘D’’ average structure with siding over wood frame and trusses.
The two metal and frame storage warehouses, one dock height and the
other at grade, were considered Class ‘‘S’’ low cost structures with
interior finishes as found in the Marshall Valuation Service.
Estimates were further refined by calculating a floor area
multiplier from the table found in Section 12 on Page 18 and with
dock height costs in Section 14 on Page 27. In addition, these
estimates for the various structures required adjusting to the
current date and location by the use of current cost and local
multipliers found in Section 99, Pages 2 and 7.
These estimations included all typical building cost items and
excluded site improvements that were estimated separately, plus
architects fees, financing, surveys, etc. Costs for the various
site improvements were found in Section 66 of the Marshall
Valuation Service and supplemented with lump sum estimates from
similar projects. This calculated cost method included
architectural fees, insurance, contractor’s overhead and profit, as
well as cost of funds and construction loan interest. Together
with these soft costs, the Marshall Valuation Service produced a
replacement cost new for the subject structures as follows:
Dock Height Warehouse (930 SF x $45.86/SF) $ 42,645
Storage Building (300 SF x $32.15/SF) $ 9,645
Frame Office (690 SF x $46.63/SF) $ 32,172
Metal Canopy (600 SF x $19.95/SF) $ 11,972
Direct RCN of Structures $ 96,434
Soft Costs (15%) $ 14,465
Direct & Soft Structure Costs: $110,899
37
Trade Fixtures/Equipment/Personal Property
The RCN for Furniture, fixtures, and equipment (i.e., FF&E) was
estimated by an FF&E appraiser, Fred B. LaDue, II, ASA of Fred B.
LaDue & Associates, Inc. His FF&E appraisal, included the
addenda, estimated the total RCN for the subject property at
$166,120 broken down as follows:
Outside Equipment $123,995
Moveable $ 29,205
Immovable Trade Fixtures $136,915
Total RCN of FF&E $166,120
The immovable trade fixtures and equipment were typically
included in the sale of general commercial/industrial buildings
as confirmed by most commercial cost estimating services and
listings prepared by local realtors. All the immovable and
outside equipment, excluding the closed underground tanks and
accessories, are included in the replacement cost new. The
moveable FF&E are treated in this appraisal as property of the
business in occupying the subject property and these items are
included in the total FF&E cost estimate of $166,120.
Site Improvements Replacement Cost Estimate
The subject site improvements included concrete sidewalk, concrete
paving, asphalt paving, gravel paving, chain link (CL) fence, swing
CL gates, small pedestrian CL gate, metal and PVC posts, scrubs,
palm, shade tree, monitor wells, sod, and landscaping. Using the
Marshall Valuation Service supplemented by local construction
costs, the replacement cost for the subject site improvements was
estimated at $95,359 itemized as follows:
Concrete Sidewalk (141 SF @ $2.60/SF) $ 367
Concrete Pavement (2,271 SF @ $4.25/SF) $ 9,652
Gravel Stabilization (8,335 SF @ $1.25/SF) $ 10,419
Chain Link Fence (557 LF @ 412.65/LF) $ 7,046
CL Swing Gates (2 Each @ $1,800/Ea) $ 3,600
CL Pedestrian Gate (1 Each @ $300/Ea) $ 300
Metal Posts (10 Each @ $150/Ea) $ 1,500
PVC Posts (2 Each @ $100/Ea) $ 200
Shrubs (8 Each @ $80/Ea) $ 640
Palm Tree (1 Each @ $1,000/Ea) $ 1,000
Mature Shade Tree (2 Each @ $1,500/Ea) $ 3,000
Monitor Wells (10 Each @ $950/Ea) $ 9,500
Sod Ground Cover (12,000 SF @ $1.00/SF) $ 12,000
Landscaping (lump sum) $ 15,000
Subtotal: $ 86,690
Soft Costs (10%): $ 8,669
Replacement Cost of Site Improvements: $ 95,359
38
Entrepreneurial Profit
Entrepreneurial profit which represents the developer's profit
reflected in the market is typically measured as a percentage of
the costs. It is essentially a market-derived figure that reflects
the amount that a developer expects to receive for risk and time.
Entrepreneurial profit was inappropriate in application to an
interim use that represents a severe under improvement of the
subject site. Therefore, no entrepreneurial profit was applied to
this cost approach.
RECONCILIATION OF REPLACEMENT COST NEW
The combined replacement cost new of the subject light industrial
structures, FF&E, and site improvements totaled $349,244 in hard
costs. Adding soft costs for construction loan interest,
consulting costs, builder’s risk insurance, impact fees and etc.
adds approximately $23,134 to the cost bringing the total project
replacement cost new (RCN) to $372,378, Say, $372,400.
ACCRUED DEPRECIATION -- CURABLE AND INCURABLE
An essential part of the improvement analysis is the estimation of
accrued depreciation associated with the property. Depreciation
is defined as ...
"a loss in property value from any cause; any difference between
reproduction cost or replacement cost and market value as of the
date of appraisal."
Source: American Institute of Real Estate Appraisers, The
Dictionary of Real Estate Appraisal, Fifth Edition, as published by
the Appraisal Institute.
Accrued depreciation is any loss in value which may be a result of
a variety of factors including but not limited to:
1. Physical Deterioration - wear and tear
2. Functional Obsolescence - defects in design
3. External Obsolescence - off site influences creating
diminished utility
For purposes of this appraisal, the breakdown method that
categorizes the following five elements of depreciation, were used.
1. Physical Deterioration Curable
2. Physical Deterioration Incurable
3. Functional Obsolescence Curable
4. Functional Obsolescence Incurable
5. External Obsolescence
39
Curable Physical Deterioration
Deferred maintenance is evidenced by wear and tear or structural
defects in a building(s). It is categorized as curable physical
deterioration and is measured as the cost of restoring an item to
reasonably new condition. The subject buildings exhibited
average maintenance and, since the facility was nearing the end
of its economic life, most items of deferred maintenance need not
be cured.
Incurable physical deterioration
Incurable physical deterioration identifies items of deterioration
that cannot be readily corrected. This type of depreciation is
calculated for all structural elements that are not included in
curable physical depreciation. It is based on effective age and
overall life expectancy based on utility and quality. In this
analysis incurable physical deterioration was not divided into
short-lived and long-lived items because of the age of the
buildings. That is, all building components were expected to have
a remaining economic life similar to that of the entire structure.
For this analysis of incurable physical deterioration, the
depreciation schedule found in Section 97 of the Marshall Valuation
Service was used to estimate physical depreciation.
Effective age of the building components of the subject property
was estimated by the appraiser based on observed condition and
economic life was estimated based upon standards derived from the
Marshall Valuation Service. The subject buildings were built from
51 to 67+ years ago. The effective age and economic life
expectancy of these improvements were estimated, in part, based
upon an inspection and the depreciation tables in Marshall
Valuation Service, Section 97, Page 9 as follows:
Structure Life Expectancy Effective Age Depreciation
Lt. Industrial 55 50 91%
The buildings have an effective age of 50 years and the Marshal
Valuation Service estimated a 55-year life expectancy for 1-story
light industrial buildings. Therefore, a 91% depreciation ratio
was established to estimate the subject improvement's physical
depreciation.
Using this ratio, physical incurable deterioration was estimated at
$187,715 ($206,280 x 91%) for the subject's structural and site
improvements excluding the FF&E.
Functional Obsolescence - Curable and Incurable
The functional utility of a fuel distribution facility is subject
to changing expectations and standards. Functional utility is an
impairment of functional capacity and, when ongoing change renders
features obsolete, it becomes equivalent to functional
40
obsolescence. Although functional depreciation is experienced in
some way in all facilities, even new facilities, functional
depreciation is a penalty only if it is recognized by the market as
a loss in value.
The construction quality, layout, and materials of the subject
facility were very typical of older light industrial and converted
residence-to-office properties used for the storage and
distribution of petroleum products. In the case of the subject
parent tract, the liquid underground storage tanks (LUST) were
closed as of the effective date of appraisal and contributed no
value to the subject parent tract. The absence of their value
contribution represents functional obsolescence recognized by the
market. Beyond the dysfunctional LUST at the subject facility, the
layout for on-site truck circulation and warehouse distribution is
inefficient and obsolescent. However, the existing building and
site improvements had such minimal value remaining that contributes
to the subject parent tract, any deduction for functional
obsolescence is superfluous.
External Obsolescence
External obsolescence is an element of accrued depreciation that is
caused by negative influences outside the property itself. It can
be either locational or economic. In the present circumstances,
external economic conditions associated with the ongoing slow
growth following the recent recession in the United States have
severely disrupted the real estate market for all types of
properties including commercial properties. Since all properties
are likewise affected, no market conditions external obsolescence
is included in this analysis of accrued depreciation.
Value in Place of FF&E
In the FF&E Appraisal prepared by Fred B. LaDue, II, ASA, the
market value in place of the immovable items in the subject
property was estimated at $23,105 (see FF&E appraisal in addenda)
Indicated Value by the Cost Approach
Combined, the total depreciation for the subject improvements was
$187,715. Based on the above data, assumptions and analysis, the
cost approach was summarized relied upon to reconcile a value for
the subject parent tract. The indication of market value by the
cost approach, as of the effective date of appraisal, was estimated
at $1,500,000 calculated as follows:
Replacement Cost New $ 206,240
Less: Total Accrued Depreciation ($ 187,715)
Depreciated Value of Improvements $ 18,525
Plus: FF&E Value-in-Place $ 23,105
Plus: Estimated Land Value $1,312,500
$1,354,130
Say, $1,354,100
41
RECONCILIATION OF VALUE INDICATIONS
Introduction
Reconciliation is the final step in the valuation process in
which alternate value indications are evaluated and the most
meaningful, defensible conclusion is selected as a final value
estimate. The approaches are examined for appropriateness,
accuracy, and quantity of evidence. Any differences or
inconsistencies in the analyses and conclusions are explained.
The following value conclusions were indicated by the two
approaches to value employed in this appraisal.
Cost Approach $1,354,100
Sales Comparison Approach $ NA
Income Approach $ NA
Cost Approach - Reconciliation
The cost approach provides a reliable indication of value when
the appraised improvements are related to a special use property
such as the subject fuel distribution facility. The northern
portion of the subject parent tract is improved with three office
storage buildings and a canopy over the fuel dispensing
equipment. These improvements varied in age from 51 to 67 years
and had a collective effective age of 50 years. Thus, the
existing improvements are an interim use of the subject site
pending its redevelopment. The Replacement Cost New (RCN) for
the existing light industrial facility and its associated site
improvements on the subject parent tract were estimated based in
part on replacement cost new estimates derived from the Marshall
Valuation Service supplemented by local cost information gleaned
from local contractors on other similar valuation assignments.
Accrued depreciation was estimated using the Marshall Valuation
Service and inspection of the subject improvements. Five
comparable land sales were available to value the land. Because
the improvements are associated with a special use property, even
though these improvements are interim in nature and near the end
of their economic life, the value indicated by the cost approach
was given primary weight in this analysis.
Final Conclusion of Value - Reconciliation
Based upon the investigation and analyses outlined above and
giving weight to the direct sales comparison approach, it was
concluded that as of the effective date of appraisal, the market
value of the subject parent tract was $1,354,100.
FINAL CONCLUSION OF MARKET VALUE OF THE WHOLE PROPERTY
$1,354,100
42
VALUE OF THE TAKING
Legal Description of the Taking: Please refer to Addenda herein.
DESCRIPTION OF THE PROPERTY
Partial Taking [x]; Entire Taking [ ]; Vacant [ ]; Improved [x]
LAND:
[x] Street Lights [ ] Septic Tank [x] Electric Service
[x] Telephone [x] Public Sewer [ ] Well & Pump
[x] Curbs [x] Public Sidewalks [x] Paved Street(s)
[x] Storm Drains [x] Public Water
1. Area: According to the ROW Map prepared by AIM
Engineering for Collier County, the
irregular-shaped taking along the east
and the south frontage of the parent
tract contains 7,758 SF (0.178+ acres).
2. Shape: Irregular-Shaped Taking
3. Dimensions: ROW Take 103: 265.55'x 139.99'x 6.34'x
11.19’x 173.77’x 4.00’x 90.89’x 26.55’x
31.53’x 18.80’.
4. Ingress/Egress: Existing access to the site will be
significantly diminished by the
acquisition and reconstruction of the
Airport-Pulling Road and Davis Blvd.
intersection.
5. Topography: The fee simple take area is at and above
road grade.
6. Easements: None identified
6. Affected
Site Improvements: Sidewalk; asphalt pavement; gravel
pavement; chain link fence; CL swing
gates; CL pedestrian gate; posts;
monitor wells; trees, scrubs, and
landscaping; and sod ground cover.
7. Building
Improvements: None
43
PARCEL 103, Part 1
44
Parcel 103, Part 2
45
VALUATION OF THE TAKING IN FEE SIMPLE ESTATE
Land value for the take area was based upon the value of the
parent tract. There were few site improvements in the take area.
Land
Classification Area Unit Price Estimated Value
Commercial 7,758 SqFt $35.00 = $271,530
Say $271,600
Site Improvements:
Those site improvements affected by the fee simple ROW
acquisition were identified by field inspection in the take area.
Water meter (by others) NA
Concrete Sidewalk (66 SF @ $2.86/SF) $ 189
Asphalt Pavement (1,270 SF @ $3.03/SF) $ 3,848
Gravel Stabilizer (318 SF @ $1.38/SF) $ 439
Chain Link Fence(119 LF @ $13.92/LF) $ 1,656
CL Swing Gates (2 Each @ $1,980/Ea) $ 3,960
CL Pedestrian Gate (1 Each @ $330/Ea) $ 330
Metal Posts (10 each @ $165/Ea) $ 1,650
PVC Posts (1 Each @ $110/Ea) $ 110
Scrubs (1 Each @ $88/Ea) $ 88
Monitor Wells (2 Each @ $1,045/Ea) $ 2,090
Subtotal Depreciable Site Improvements: $14,360
Less Depreciation (91%) ($13,068)
Depreciated Value of Site Improvements: $ 1,292
Palm Tree (1 Each @ $1,100/Ea) $ 1,100
Mature Shade Tree (1 Each @ $1,650/Ea) $ 1,650
Sod Groundcover (480 SF @ $1.10/SF) $ 528
Total Contributory Value of Site Improvements $ 4,570
Say, $ 4,600
SUMMARY OF FEE TAKING
Total Value of Land Acquired $271,600
Total Value of Improvements Acquired $ 4,600
Total Value of Fee Taking $276,200
VALUE OF THE REMAINDER AS A PART OF THE WHOLE PROPERTY
Value of Parent Tract $1,354,100
Value of Fee Taking ($ 276,200)
Value of Remainder, as Part of the Whole: $1,077,900
46
APRAISAL OF THE REMAINDER, UNCURED
The purpose of this appraisal is to estimate the market value of
the remainder property, uncured, after the acquisition by Collier
County in association with the improvements to the intersection
of Airport Road South and Davis Boulevard. This is a separate
and independent valuation, and presumes that the road
construction has been completed and opened to the public.
The remainder property, consists of 29,742 SF of land improved
with three old buildings, containing a combined 1,920 SF, plus a
600 SF metal canopy over a fuel dispensing facility. This is a
narrative Appraisal of a commercial site improved with
office/warehouse buildings and a fuel dispensing facility that no
longer functions in the remainder due to an inaccessible shipping
dock. Hence, the market approach was most appropriate in valuing
the remainder land where the improvements no longer contribute
value.
APPRAISAL PROBLEM, UNCURED
The appraisal problem is to estimate the market value of the
remainder site following the acquisition. Since the ROW take
area affected 20.7% of the parent tract along its southern (Davis
Blvd.) and eastern (Airport Road South) frontages, the remainder,
as improved, retains sufficient size but not configuration or
surviving access after the loss of the take area to support the
truck traffic essential to operating the existing industrial use.
Therefore, severance damages were apparent from the acquisition
in the remainder, uncured.
DESCRIPTION OF THE REMAINDER, UNCURED
[ ] Street Lights [ ] Septic Tank [x] Electric Service
[x] Telephone [x] Public Sewer [ ] Well & Pump
[x] Curbs [x] Public Sidewalks [x] Paved Street(s)
[x] Storm Drains [x] Public Water
1. Area: According to the Wilson-Miller-
Barton survey provided by the
property owner as adjusted by the
take area legal descriptions
provided by AIM Engineering &
Surveying, Inc., the remainder
tract contains 29,742 SF (0.683
acres).
2. Shape: Irregular
3. Dimensions: 11.19 x 173.77’x 4.00’X 90.89’X
26.55’x 31.53’X 123.18’x 259.89’.
47
4. Ingress/Egress: In the remainder, uncured, one 36-
foot wide driveway from Airport-
Pulling Road has replaced the four
existing driveways thereby severely
degrading access to the subject
property.
5. Topography: The remainder is slightly above
road grade.
6. Flood Plain Data: According to FEMA Viewer, Finalized
on May 16, 2012, the site is
located in Flood Zone ‘‘AE’’, an
area of 1% annual flood hazard that
required flood insurance.
7. Drainage: Site drainage appears adequate.
8. Soil: Based upon surrounding development,
the soils appear capable of
supporting an urban use of the
remainder property.
9. Utilities on Site: The remainder has available public
electricity, telephone, water and
sewer services.
10. Site Improvements: Asphalt, gravel, and concrete
paving, concrete curb and sidewalk,
parking striping, monitor wells,
irrigation, grated inlets,
underground piping, underground
tanks, fueling equipment, chain
link fencing, signs with ground
lighting, landscaping, sod, and
trees and shrubs as well as a
mailbox and water meter.
11. Easements, encroachments
and restrictions: No title work was provided nor were
any easements, encroachments, or
restrictions noted on the old
survey provided by the property
owner.
12. Building
Improvements: The subject parent tract is
improved with three buildings and a
metal canopy. These include a
metal and masonry, 1-story, dock-
height storage structure containing
approximately 930 SF built in 1964;
a 1-story metal storage shed
containing 300 SF built in 1964; a
48
1-story frame office with 1-car
carport containing 690 SF built in
1948; and a 600 SF canopy over the
fuel distribution equipment built
in 1964.
13. Property: [ ] Leased; [ ] Rented; [x] NA
Owner-Occupied
EFFECT OF ACQUISITION ON THE REMAINDER, UNCURED
The acquisition will have a significant effect on the remainder,
uncured, as improved. While the remainder site retains
sufficient useable area for commercial development albeit at a
reduced intensity, reasonable truck access to the existing fuel
dispensing use is curtailed from Terrace Avenue and cannot
function from the single Airport Pulling Road driveway in the
remainder. The capability to maneuver tanker trucks on-site in
the remainder, uncured, is not present in the after condition.
Since it is critical to avoid unsafe conditions created by off-
site tanker truck maneuvering within the new right-of-way, the
existing buildings and fuel distribution facility can no longer
function in the remainder and cannot be cured. Severance
damages are present in the uncured after condition because the
existing building and site improvements no longer contribute
value to the remainder.
The dysfunctional characteristics of the remainder, as improved,
are illustrated in the After Conditions exhibits on the following
pages. Note the inability of tanker trucks to access the pump
assembly facility located in the center of the northernmost lot
in the remainder. No longer is there front yard parking for the
office nor can its attached carport be accessed in the remainder.
Besides the loss of functional utility for the existing
improvements in the remainder, access to and configuration of the
subject site is substantially degraded. The remainder site no
longer has access from Davis Blvd. and; therefore, it no longer
benefits from corner access from a signalized intersection. With
the remainder site’s access from its Terrace Avenue frontage also
closed, remainder access is equivalent to that of an off-corner
commercial site.
In summary, incurable severance damages are present in the
remainder stemming not only from the existing improvements loss
of functional utility but also the diminished access and utility
associated with the remainder site.
49
AFTER CONDITION
50
REMAINDER, UNCURED
51
HIGHEST AND BEST USE OF THE REMAINDER, UNCURED
The highest and best use of the remainder, uncured will be
materially affected by the take as described herein. The highest
and best use of the remainder, uncured is for commercial use
after removal of the existing fuel dispensing facility. While
the soil type would not restrict its commercial highest and best
use, the remainder site’s configuration and reduced access
imposes limitations on some of the more intense commercial uses
dependent upon access for signalized corners. There for the
commercial highest and best use is diminished to that of an off-
corner commercial site.
[ ] same as before use, [x] different from before use.
Land as vacant: Commercial
As Improved: Demolition
ESTIMATE OF LAND VALUE OF THE REMAINDER, UNCURED
The value of the remainder site may be determined by using the
land sales from the land valuation of the parent parcel. The
sales used in the before valuation are the best sales available
in the marketplace for the remainder land valuation. As shown on
in the remainder land sales grid on the following page, the
remainder site is far more comparable to Sales 1 and 6 that
supported an adjustment for lack of signalized corner access
along with an across-the-board adjustment for irregular site
configuration.
With these modified adjustments, the five comparable sales
indicated a range in unit value for the remainder site from
$24.59/SF to $34.12/SF. Reconciliation of a remainder land value
was toward the lower end of the range at $24.00/SF. Therefore,
in summary, the land value of the remainder, as of the date of
appraisal, was:
Land
Classification Area Unit Price Value Estimate
Commercial 29,742 SqFt $24.00 $713,808
LESS: Demolition Cost for Existing Improvements*: ($ 45,500)
Remainder, Uncured land value: $668,308
Say, $668,300
* Demolition Cost estimate from Marshall Valuation Service,
Section 66, Page 11 supplemented by contractor estimated
demolition costs for similar older commercial properties located
on the US Highway 41 By-Pass in Venice, Florida.
52
REMAINDER LAND SALES GRID
53
RECONCILIATION OF VALUE INDICATIONS, UNCURED
Reconciliation is the final step in the value process in which
alternate value indications are evaluated and the most
meaningful, defensible conclusion is selected as a final value
estimate. The approaches are examined for appropriateness,
accuracy, and quantity of evidence. Any differences or
inconsistencies in the analyses and conclusions are explained.
The following value conclusions were indicated in the approaches
to value.
Cost Approach (Land Only) $ 668,300
Sales Comparison Approach $ N/A
Income Approach $ N/A
The only method used in the remainder valuation is the land
valuation section of the cost approach based on sales comparison.
It is the most valid approach in the valuation of land.
Therefore, $668,300 was the indicated value for the remainder
tract, as of the effective date of the appraisal.
FINAL CONCLUSION OF MARKET VALUE -- UNCURED REMAINDER $668,300
DAMAGES TO THE REMAINDER, UNCURED
There are significant severance damages to the remainder, as
shown by the following calculations:
Before Property $1,354,100
Less: Fee Acquired ($ 276,200)
Remainder, as Part of Whole $1,077,900
Remainder $ 668,300
Total Damages $ 409,600
COST TO CURE
As part of the demolition costs to clear the remainder site,
ground cover is planted following removal of gravel, asphalt, and
concrete paving as well as the buildings and their foundations.
The severance damages associated with the lose of the existing
improvements and the permanent diminished utility and access
associated with the remainder site are incurable. Therefore, no
cost to cure is included in this appraisal.
54
SPECIAL BENEFITS TO THE REMAINDER
While the highway improvement project represents a general
benefit to the surrounding properties in the area, the remainder
property is not estimated to have any special benefits as a
result of the acquisition.
SUMMARY OF VALUES
Part Taken:
Parcel 103 Fee Simple
Land $ 271,600
Improvements $ 4,600
Total $ 276,200
Before Property $1,354,100
Less: Fee Acquired ($ 276,200)
Remainder, as Part of Whole $1,077,900
Remainder $ 668,300
Total Damages $ 409,600
Special Benefits $ -0-
Net Damages $ 409,600
SUMMARY OF TOTAL COMPENSATION
Part Taken (Fee) $ 276,200
Cost to Cure $ -0-
Severance Damages $ 409,600
Total Compensation $ 685,800
APPRAISERS QUALIFICATIONS - See addenda
ASSUMPTIONS AND LIMITING CONDITIONS - See Addenda
ADDENDA -- Follows
55
ADDENDA
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57
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59
60
61
62
63
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REGIONAL & NEIGHBORHOOD ANALYSIS
Collier County, Florida is also the self-contained Naples-
Immokalee-Marco Island Metropolitan Statistical Area (MSA). It
is one of 381 Metropolitan Statistical Areas in the United States
and its 2013 population of 339,642 ranked 149th most populous
among the 381 MSA’s. Collier County was created in 1923 from Lee
County. It was named for Barron Collier, a New York City
advertising mogul and real estate developer. The map below
highlights Collier County among those that form the State of
Florida:
Overview: Naples-Immokalee-Marco Island MSA is situated on the
southwest coast of Florida and consists of a single county,
Collier. The region has earned many accolades including being
named one of Money Magazine’s top places too live in the United
States. A leader in environmental management and sustainable
living, the MSA’s manufacturing and technology job base is a
strong corollary to its major tourism and real estate development
industries.
Education: The District School Board of Collier County operates
50 schools, along with two charter schools, and including two
postsecondary technical schools that support dual enrollment.
The MSA includes regional campuses of Hodges University,
Southwest Florida State College, and Edison State College.
65
Infrastructure: The Naples-Immokalee-Marco Island MSA is located
along I-75 with provides easy access to Ft. Myers and Tampa to
the north and the Miami-Ft. Lauderdale area to the east across
“alligator alley”. I-75 connects the MSA to nearby Florida Gulf
Coast University in South Ft. Myers as well as the nearby
Southwest Florida International Airport where major carriers
offer nonstop service to a variety of domestic destinations.
Water transportation is centered on the Port ‘O Naples Marina and
Marco River Marina, the latter is port for the Key West Ferry
operation. Rail transportation is available from CSX Railroad
and Seminole Gulfcoast Railway.
Business Environment: As Naples-Immokalee-Marco Island’s
manufacturing and technology companies continue to grow in
number, clusters are emerging in life and environmental sciences,
specialty manufacturing, creative services, and cyber security.
The major employment sections of the MSA’s economy are trade,
transportation, and utilities; leisure and hospitality; education
and health services, and professional and business services as
well as government. The region’s banking and financial services
industry is also strong, ranking among Florida’s largest in terms
of deposits. As shown in the accompanying tables of socio-
economic data, Collier County (aka MSA) has a per capita income
more than 155% higher than the state average and over 140% of the
national average. Overall, Collier is an economically robust MSA
with a base of wealth somewhat insulated from fluctuations in the
national economy.
NAPLES-IMMOKALEE-MARCO ISLAND
Economic Indicator Value
Population, 2014 336,783
Gross Domestic Product
($millions), 2012
$13,652
Labor Force, 2014 161,611
Total Employment, 2014 152,556
Unemployment Rate, 2014 5.6
Personal Income
($billions), 2013
$22.033
Per Capita Personal Income, 2013 $64,872
Median Home Price, $378,000
66
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68
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LAND SALES MAP
71
VACANT LAND SALE #6
VLS-6
O/R Book and Page : Collier County, 5286-3764
Grantor : Up Development-Naples Dicks, LLC
Grantee : Camelot of Miami, LLC
Date of Transaction : June 21, 2016
Date of Inspection : November 15, 2016
Parcel Size : 1.78 Acres (77,537 SF)
Sales Price : $3,112,000
Unit Price : $40.14/SF
Type of Instrument : Special Warranty Deed
Location : 6171 Naples Blvd.
West side of Naples Blvd.
West of Airport-Pulling Road North
Collier County, Florida.
Zoning : Naples Village Commercial Park PUD
Collier County
Present Use : Vacant
Highest and Best Use : Commercial
Condition of Transaction : Arm's length transaction
Financing : Cash to Seller
Encumbrances : Typical utility and access easements
Improvements : Vacant at time of sale
Utilities : Electricity, telephone service, public
water and sewer were available to the
site.
72
VACANT LAND SALE #6
VLS-6
Cash Equivalency : Not Applicable
Motivation : Build an Aldi Food Market
Comments:
This sale parcel was sold with a permitted entitlement of up to 14,000 square
feet of commercial retail space. The sale property benefits from cross access
and cross parking easements as well as off-site drainage features. At the
time of inspection, construction of an Aldi Food Market was nearly complete.
Tax ID #61560000084
73
VACANT LAND SALE #6
VLS-6 Property Sketch
Aerial Photograph
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77
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VACANT LAND SALE #7
VLS-7
O/R Book and Page : Collier County, 5265-1074
Grantor : MidWestOne Bank
Grantee : Suncoast Credit Union
Date of Transaction : April 15, 2016
Date of Inspection : November 15, 2016
Parcel Size : 1.63 Acres (71,003 SF) Gross
1.32 Acres (57,499 SF) Net
Sales Price : $1,800,000
Unit Price : $31.30/SF
Type of Instrument : Special Warranty Deed
Location : 7655 Pine Ridge Road
NWC of Pine Ridge Road and Kramer Drive
Collier County, Florida.
Zoning : Raggae Planned Unit Development (PUD)
Collier County
Present Use : Vacant
Highest and Best Use : Commercial
Condition of Transaction : Arm's length transaction
Financing : Cash to Seller
Encumbrances : Typical utility and access easements
Improvements : Vacant at time of sale
Utilities : Electricity, telephone service, public
water and sewer were available to the
site.
80
VACANT LAND SALE #7
VLS-7
Cash Equivalency : Not Applicable
Motivation : Build Credit Union Branch
Comments:
This vacant land sale is located on the northwest corner of the signalized
intersection of Pine Ridge Road and Kramer Drive, in Naples, Collier County.
The property contains 1.63 gross acres with approximately 0.31 acres of
utility and roadway easements indicating 1.32 net usable acres. The buyer,
Suncoast Credit Union, purchased the property for $1,800,000, or $30.61/SF of
usable area. The buyer reportedly plans to build a branch expanding within
the Collier County area. Suncoast Credit Union has three other branches in
Collier County and is the 8th largest credit union in the United States based
on membership and the 14th largest based on assets.
Tax ID #77000006024
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VACANT LAND SALE #7
VLS-7 Property Sketch
Aerial Photograph
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VACANT LAND SALE #1
VLS-1
O/R Book and Page : Collier County, 4996-3415
Grantor : Creekside West, Inc.
Grantee : Rani Investments, LLC
Date of Transaction : December 30, 2013
Date of Inspection : January 28, 2015
Parcel Size : 1.32 Acres (57,524 SF)
Sales Price : $1,285,378
Unit Price : $22.35/SF
Type of Instrument : General Warranty Deed
Location : South side of Immokalee Road, west of
Goodlette-Frank Road within the Creekside
Commerce Park
Collier County, Florida.
Zoning : Creekside Commercial Park PUD
Collier County
Present Use : Vacant
Highest and Best Use : Commercial
Condition of Transaction : Arm's length transaction
Financing : Cash to Seller
Encumbrances : Typical utility and access easements
Improvements : Vacant at time of sale
Utilities : Electricity, telephone service, public
water and sewer were available to the
site.
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VACANT LAND SALE #1
VLS-1
Cash Equivalency : Not Applicable
Motivation : Investment
Comments:
This sale parcel was sold with a permitted entitlement of up to 15,000 square
feet of commercial office space of which a maximum of 5,000 square feet may be
developed for retail use. The sale property may also be used for overnight
ambulatory surgery patients up to a maximum of five beds for such accessory
use. This parcel is also subject to the adjacent 7-Eleven radius restriction
prohibiting the sale of automotive fuels, convenience retail products, and car
wash facilities.
Tax ID #29331190725
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VACANT LAND SALE #1
VLS-1 Property Sketch
Aerial Photograph
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VACANT LAND SALE #2
VLS-2
O/R Book and Page : Collier County, 4916-0153
Grantor : Laupco, Inc. & TCL of Naples, Inc.
Grantee : Racetrac Petroleum, Inc.
Date of Transaction : April 30, 2013
Date of Inspection : January 28, 2015
Parcel Size : 1.54 Acres (67,060 SF)
Sales Price : $1,600,000
Unit Price : $23.86/SF
Type of Instrument : General Warranty Deed
Location : Northeast corner of Collier Blvd. and
Manatee Road
Collier County, Florida.
Zoning : C-4, Commercial
Collier County
Present Use : Convenience Store with Refueling
Facilities
Highest and Best Use : Highway Commercial
Condition of Transaction : Arm's length transaction
Financing : Cash to Seller
Encumbrances : Typical utility and access easements
Improvements : Old gas station and accessory buildings
(No value)
Utilities : Electricity, telephone service, public
water and sewer were available to the
site.
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VACANT LAND SALE #2
VLS-2
Cash Equivalency : Not Applicable
Motivation : Develop C-store with gas
Comments:
The sale property was improved with an old gas station and accessory
buildings. The purchase price of $1,600,000 was predicated upon delivery by
the seller of a cleared site; therefore, the cost of demolition was borne by
the seller and not the buyer. The property was assembled for development of a
Racetrac convenience store with refueling facilities. Parcel 1 (Laupoo,
Inc.), containing 26,824 SF, was purchased for $675,000, or $25.15/SF. Parcel
2 (TCL of Naples, Inc.), containing 40,236 SF, was purchased for $925,000, or
423.00/SF.
Tax ID #00734680000
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VACANT LAND SALE #2
VLS-2 Property Sketch
Aerial Photograph
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VACANT LAND SALE #3
VLS-3
O/R Book and Page : Collier County, 4870-2745
Grantor : A. Grover Matheney, Trustee
Grantee : Boos-Immokalee, LLC
Date of Transaction : December 21, 2012
Date of Inspection : January 28, 2015
Parcel Size : 1.45 Acres (63,236 SF)
Sales Price : $1,850,000
Unit Price : $29.26 per Square Foot
Type of Instrument : Trustee’s Deed
Location : Southwest corner Immokalee Road and Juliet
Blvd.
Collier County, Florida.
Zoning : C-PUD
Collier County
Present Use : Bank branch
Highest and Best Use : Commercial
Condition of Transaction : Arm's length transaction
Financing : Cash to Seller
Encumbrances : 41.5 foot access/parking easement along
west side
Limits building to 4,500 SF
Improvements : Vacant at time of sale
Utilities : Electricity, telephone service, public
water and sewer were available to the
site.
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VACANT LAND SALE #3
VLS-3
Cash Equivalency : Not Applicable
Motivation : Investment
Comments:
This property was purchased for development of a Chase bank branch on an out-
parcel of the Gasper Station Commercial PUD. The sale includes easements and
restrictive covenants that benefit the property by proving ingress/egress over
lands to the south and encumbers the western 41.5 feet of the sale property
with an access and parking easement along with limitations on the building
size to a maximum of 4,500 SF. Chase executed a 20-year ground lease with the
buyer on February 23, 2012.
Tax ID #34595000028
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VACANT LAND SALE #3
VLS-3 Property Sketch
Aerial Photograph
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