A6 RFQ 127EAV25Q0049.pdf

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Real Estate Appraisal for Cloudcroft Wastewater Treatment Plant Townsite Sale
Solicitation number
127EAV25Q0049
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This is a Request for Proposal (RFP) for a real estate appraisal of 6.5 acres of Forest Service land located in the Village of Cloudcroft, Otero County, New Mexico. The United States Department of Agriculture Forest Service is seeking an appraisal to determine the market value of land proposed for sale to the Village of Cloudcroft under the Townsite Act, specifically for a wastewater treatment plant site. The land is currently encumbered by special use permits for improvements developed by the Village, but the appraisal will assess the property as unimproved.

The solicitation is set aside 100% for small businesses, with a total contract size under $9.5. Key requirements include holding a New Mexico State-Certified General Appraisal License, completing the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) course, and providing a technical proposal demonstrating appraisal methodology competency. Offerors must submit a technical proposal, price quote, and representations/certifications by the due date of August 25, 2025. The appraisal must comply with specific federal guidelines, including hypothetical conditions that the land is in non-Federal ownership and zoned consistently with similar properties. The Forest Service's intended use is to provide a basis of value for the proposed land sale to the Village of Cloudcroft.

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SEE ADDENDUMIS CHECKED

CODE 18a. PAYMENT WILL BE MADE BY

CODE

FACILITYCODE

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER

OFFEROR

7EAV

ALBUQUERQUE NM 87102-3498

333 BROADWAY BLVD SE

USDA-FS CSA SOUTHWEST 5

8371 CODE 16. ADMINISTERED BYCODE

X

X

X

531320

SIZE STANDARD:

100.00 % FOR:SET ASIDE:UNRESTRICTED OR7EAV

REQUEST FOR

PROPOSAL

(RFP)

INVITATION

FOR BID (IFB)

10. THIS ACQUISITION ISCODE

REQUEST FOR

QUOTE (RFQ)

14. METHOD OF SOLICITATION

13b. RATING

NORTH AMERICAN INDUSTRY

CLASSIFICATION STANDARD

(NAICS):

SMALL BUSINESS

09/05/2025 1700 PD

08/25/2025

951-405-3988MA ESTRELLITA DASMARINAS

(No collect calls)

INFORMATION CALL:

FOR SOLICITATION 8. OFFER DUE DATE/LOCAL TIMEb. TELEPHONE NUMBER a. NAME

4. ORDER NUMBER3. AWARD/ 6. SOLICITATION

127EAV25Q0049

5. SOLICITATION NUMBER

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS 1. REQUISITION NUMBER PAGE OF

1 69 1156802OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

TELEPHONE NO.

17a. CONTRACTOR/

ALBUQUERQUE NM 87102

333 BROADWAY SE

SOUTHWESTERN REGION

15. DELIVER TO

ALBUQUERQUE NM 87102-3498

333 BROADWAY BLVD SE

9. ISSUED BY

7.

2. CONTRACT NO.

EFFECTIVE DATE

$9.5

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW

ISSUE DATE

DELIVERY FOR FREE ON BOARD

(FOB) DESTINATION UNLESS

BLOCK IS MARKED

11.

SEE SCHEDULEX

12. DISCOUNT TERMS THIS CONTRACT IS A RATED

ORDER UNDER THE DEFENSE

PRIORITIES AND ALLOCATIONS

SYSTEM - DPAS (15 CFR 700)

13a.

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

(SDVOSB)

HUBZONE SMALL

BUSINESS

8(A)

USDA-FS CSA SOUTHWEST 5

WOMEN-OWNED SMALL

BUSINESS (WOSB)

ECONOMICALLY DISADVANTAGED

WOMEN-OWNED SMALL

BUSINESS (EDWOSB)

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

Reference Solicitation No. 127EAV25Q0049

Project Title: Real Estate Appraisal for Cloudcroft Wastewater Treatment Plant Townsite Sale.

Forest: Lincoln National Forest

Project Description: One real estate appraisal is needed to provide the market value for a proposed sale of Forest Service land (6.5 acres) to the

(Use Reverse and/or Attach Additional Sheets as Necessary)

HEREIN, IS ACCEPTED AS TO ITEMS:

X

XX

DATED

DAVID L. WATSON

. YOUR OFFER ON SOLICITATION (BLOCK 5),

INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET FORTH

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER

ARE

ARE

31c. DATE SIGNED

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (Type or print)

ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL

SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED.

27a. SOLICITATION INCORPORATES BY REFERENCE (FEDERAL ACQUISITION REGULATION) FAR 52.212-1, 52.212-4. FAR 52.212-3

AND 52.212-5 ARE ATTACHED. ADDENDA

26. TOTAL AWARD AMOUNT (For Government Use Only)

OFFER

STANDARD FORM 1449 (REV. 11/2021)

Prescribed by GSA - FAR (48 CFR) 53.212

ARE NOT ATTACHED.

ARE NOT ATTACHED.

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

30b. NAME AND TITLE OF SIGNER (Type or print)

30a. SIGNATURE OF OFFEROR/CONTRACTOR

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

25. ACCOUNTING AND APPROPRIATION DATA

29. AWARD OF CONTRACT: REFERENCE

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32c. DATE 32b. SIGNATURE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

32a. QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED INSPECTED

40. PAID BY39. S/R VOUCHER NUMBER38. S/R ACCOUNT NUMBER

37. CHECK NUMBER

FINALPARTIAL

36. PAYMENT

FINALPARTIAL

35. AMOUNT VERIFIED

CORRECT FOR

34. VOUCHER NUMBER33. SHIP NUMBER

COMPLETE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

42d. TOTAL CONTAINERS42c. DATE REC'D (YY/MM/DD)

42b. RECEIVED AT (Location)

42a. RECEIVED BY (Print)

41c. DATE41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

STANDARD FORM 1449 (REV. 11/2021) BACK

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

Village of Cloudcroft which is located within the boundary of the Sacramento Ranger District, Lincoln National Forest, Village of Cloudcroft, Otero County, New Mexico

Deliver to: Gerald Sanchez @ gerald.sanchez@usda.gov.

Set-Aside: 100 Small Business

Forest Service Representatives:

COR: Lana Chiappetta, lana.chiappetta@usda.gov

CS: Ma Estrellita Dasmarinas, maestrellita.dasmarinas@usda.gov

CO: David Watson, David.l.watson@usda.gov

Delivery: 120 Days After Award

0001 Appraisal- (Land Only) See Statement of Work

(SOW) for details.

Product/Service Code: R411

Product/Service Description: SUPPORT-

PROFESSIONAL: REAL PROPERTY APPRAISALS

32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

69 2 of

STATEMENT OF WORK (SOW)

UNITED STATES FOREST SERVICE

SOUTHWESTERN REGION (R-3)

CLOUDCROFT WASTEWATER TREATMENT PLANT

PROPOSED TOWNSITE SALE

ONE PARCEL OF APPROXIMATELY 6.5 ACRES

VILLAGE OF CLOUDCROFT, OTERO COUNTY, NEW MEXICO

One real estate appraisal is needed to provide the market value for a proposed sale of Forest Service land (6.5 acres) to the Village of Cloudcroft which is located within the boundary of the Sacramento Ranger District, Lincoln National Forest, Village of Cloudcroft, Otero County, New Mexico.

The Subject Property is the federal land that is being appraised. It is divided by U.S. Highway 82 where the highway enters the Village of Cloudcroft from the west and is encumbered by Special Use Permits for improvements developed by the Village for Cloudcroft’s Wastewater Treatment Plant (WWTP). For the purposes of this assignment the Special Use Permits and the Village’s WWTP improvements developed under those permits will not be considered. This appraisal is for the Subject Property as unimproved.

The appraisal must comply with this Statement of Work, 36 CFR 254 Subpart B, the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA, 2016 edition), and the Uniform Standards of Professional Appraisal Practice (USPAP, 2024 edition).

Questions regarding this Statement of Work, and/or to arrange for site inspection and pre-work meeting, shall contact the Forest Service Review Appraiser named below. The completed appraisal report will be delivered ONLY to the Forest Service Review Appraiser:

Gerald (Jerry) Sanchez, RPRA, Chief Appraiser USDA Forest Service, Washington Office (Detached) 333 Broadway Blvd, SE, Albuquerque, NM 87102

(505) 842-3154 (phone)

(202) 578-4697 (cell) / gerald.sanchez@usda.gov mailto:gerald.sanchez@usda.gov

Statement of Work for Cloudcroft Townsite Act Proposed Sale 2025 page 2 of 51

GENERAL SPECIFICATIONS

Performance – Unless otherwise stated, the appraiser shall furnish all materials, supplies, tools, equipment, personnel, travel, and shall complete all requirements including performance of the professional services listed herein. The appraiser shall assume responsibility for all work, including the selection and work product of subcontractors. The appraiser must notify the Forest Service Review Appraiser of the selection of all subcontract appraisers or specialists before they start work. The appraiser shall present specialist and consulting reports in the addenda to the appraisal report or make them available for inspection by the Forest Service Review Appraiser.

Confidentiality – The appraiser may provide information about the assignment, appraisal results, or portions thereof only to the Forest Service Review Appraiser. Appraisals may only be distributed to the intended users upon written instructions by the Forest Service Review Appraiser after the technical review is completed.

Federal Law Controls – Federal law may differ from the law of some states and supersedes State law when they conflict. Accordingly, the appraiser must understand Federal law as it affects the appraisal process in the development of market value.

UASFLA and USPAP Conflicts –When UASFLA and USPAP conflict, UASFLA takes precedence. For instance, a Jurisdictional Exception to USPAP will be needed in the report to be consistent with the requirement regarding the restriction on estimating an exposure time in UASFLA (section 1.2.7.2), which is an exception to USPAP (Standard 1-2(c)). Any other Jurisdictional Exceptions must be discussed with the assigned Forest Service Review Appraiser.

Definition of Terms – Unless specifically defined herein or in current editions of either the USPAP or UASFLA, definitions of all terms are the same as those found in The Dictionary of Real Estate Appraisal (Current Edition). UASFLA takes precedence in any differences among definitions.

Comprehensive Review – A value opinion is acceptable for agency use only after the Forest Service Review Appraiser has approved the appraisal report for agency use. As an alternative to disapproval, the Forest Service Review Appraiser may discuss findings of deficiency and request corrections.

Freedom of Information Act – Freedom of Information Act (FOIA) provisions may result in the release of all or part of the appraisal report. Since New Mexico is a non-disclosure state, if providers of information request the information be kept confidential, that information is not to be included in the report; however, it should be presented in a high level non-descriptive manner.

The appraiser must make confidential information available to the Forest Service Review Appraiser upon request, but such information will not be incorporated in a Forest Service system of records. A statement signed by the appraiser requesting confidentiality should accompany any confidential information.

Updating of Report – At the Forest Service’s request (and within two years of the date of report), the appraiser may update the value opinion as of a specified date. A supplemental contract will be negotiated as necessary.

Statement of Work for Cloudcroft Townsite Act Proposed Sale 2025 page 3 of 51

Testimony – Upon the request of the United States Attorney or the Department of Justice, the contract appraiser may testify regarding the appraisal. A supplemental contract will be negotiated as necessary.

APPRAISAL REPORT SPECIFICATIONS

The following specifications required by the Forest Service are in addition to those set forth in Uniform Standards of Professional Appraisal Practice (USPAP) and the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA).

Report Format – Assignment results shall be reported as an Appraisal Report as defined by USPAP 2024. Unless otherwise specified in this Statement of Work, the appraisal report should contain all applicable components listed in UASFLA.

Appraiser’s Certification – Include the following above a dated signature:

“I have made a personal inspection of the appraised property which is the subject of this report and all of the comparable sales used in developing the opinion of value. The date(s) of inspection was _______, and the method of inspection was _______.” (If more than one person signs the report, this certification must clearly specify which individuals did and did not make a personal inspection of the appraised property. The principal appraiser must inspect the appraised property.)

In my opinion, the market value is $______ as of __(date)__.

Subject to the hypothetical condition: ______________________.”

Inspection Notice – The appraiser shall provide the landowner advance notice of the inspection date and shall give the landowner, or their designated representative(s), an opportunity to accompany the appraiser during the inspection of the property. These notices shall be documented in the transmittal letter accompanying the appraisal report.

Statement of Assumptions and Limiting Conditions – Since all appraisal reports submitted to the Forest Service become the property of the United States and may be used for any legal and proper purpose, do not include any conditions that limit distribution of the report. Do not use unauthorized extraordinary assumptions or hypothetical conditions without written direction from the Forest Service Review Appraiser.

Hypothetical Conditions - The two hypothetical conditions listed below shall be prominently reported on the transmittal letter, summary page, conclusion page, and certification.

First Hypothetical Condition The Subject Property is appraised as though in private ownership and zoned consistent with other non-Federal property.

Rationale for the Hypothetical Condition: The USDA Forest Service does not have broad authority to sell National Forest System Lands. However, under 36 CFR 254, Subpart B – National Forest Townsites, the applicable law states, in 254.20 under Purpose and Scope:

Statement of Work for Cloudcroft Townsite Act Proposed Sale 2025 page 4 of 51

(a) A Forest Service official may, upon application, set aside and designate for Townsite purposes up to 640 acres of National Forest System lands adjacent to or contiguous to an established community in Alaska, Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

(b) National Forest System lands, needed by a community, may be sold under the Townsite Act, for fair market value if those lands would serve indigenous community objectives that outweigh the public objectives and values of retaining the lands in Federal ownership. Authority: Pub. L. 85-569; 72 Stat.

438; 16 U.S.C. 478a, as amended by sec. 213, Pub. L. 94-579; 90 Stat. 2743.

SOURCE: 50 FR 29673, July 22, 1985, unless otherwise noted.

With regard to Zoning, federal lands must be appraised under the hypothetical condition that they are already in non-Federal ownership and zoned consistent with similar non- Federal properties in the market area. The contract appraiser shall identify, in addition to zoning, all other land-use and environmental regulations, outstanding rights, and reservations that have an impact on the highest and best use and value of the property.

Second Hypothetical Condition The Subject Property is to be appraised as unimproved.

Existing public roadways encumbering the site shall be considered.

Rationale for Hypothetical Condition: The wastewater treatment plant (WWTP) structures, tanks, pipelines, pumps, and fencing on the main part of the property were constructed and owned by the Village of Cloudcroft under several Special Use Permits issued by the Forest Service. That portion of the site encumbered the U.S. Highway 82 right of way is under a separate permit with the New Mexico Department of Transportation (NMDOT). That portion of the site encumbered by Muchachita Road is under a separate permit to the Village of Cloudcroft. The improvements developed under these permits are not owned by the USFS and thus are not to be considered in the appraisal of the land.

Extraordinary Assumption – A Phase I Environmental Site Assessment (ESA) will be conducted prior to conveyance but may not be available for use in conjunction with this assignment. Unless a USFS approved ESA becomes available for the property prior to completion of the report, an Extraordinary Assumption (EA) that no environmental contamination exists on the property that will require mitigation, or that would affect the market value shall be made. If the appraiser determines other EAs are required beyond what is authorized within this Statement of Work, he/she must contact the USFS Review Appraiser to request approval.

Maps – Include detailed topographic and aerial imagery of the appraised property with the property boundaries and dimensions delineated. Significant encumbrances and both legal and physical access routes must be shown. The report should include one map which shows the relationship of all the sales to the Subject property. The maps in the report should be sufficient to find the property and comparable sales on the ground using only the report.

Highest and Best Use – Conduct sufficient depth of market analysis to provide a credible opinion of highest and best use considering the complexity of the assignment and the volatility of the market. Avoid vague highest and best use conclusions such as investment, speculation, and other ambiguous uses that do not define likely physically adaptable uses for the property.

Statement of Work for Cloudcroft Townsite Act Proposed Sale 2025 page 5 of 51

Larger Parcel – Generally, a larger parcel determination is required in an appraisal assignment.

However, economic larger parcel determinations for National Forest System (NFS) lands within a National Forest that are contiguous with another National Forest would be time-consuming and expensive to determine relative to the value of the interest being granted. Therefore, the larger parcel determination for purposes of valuation must be considered to be no greater than the area encumbered by the interest proposed for conveyance by the United States, consistent with the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA § 1.2.8), recognizing that a larger parcel determination is not always practical or feasible. Additionally, under the hypothetical condition that the subject lands are under private ownership, unity of ownership test would limit the larger parcel to the Federal lands proposed for conveyance (FSH 5409.12.14.4).

Comparable Sales – Inspect all sales directly compared with appraised property sufficiently for credible analysis and comparison. Discuss unusual circumstances that precluded on-the-ground inspection with the Forest Service Review Appraiser prior to completion of the appraisal report.

At a minimum, document all direct comparable sales with:

• Parties to the transaction

• Date of transaction

• Recordation data

• Confirmation of the price, terms, and conditions of sale with buyer, seller, broker, or other person directly involved in the transaction. Include the confirming parties’ telephone number and note his/her relationship to the transaction (i.e. buyer, seller, buyer’s broker, seller’s broker).

• Person who verified the transaction and verification date

• Buyer motivation

• Location

• Legal and physical access

• Size

• Legal description

• Property rights conveyed

• Consideration

• Financing terms

• Sale conditions, such as arm’s length or distressed (describe fully if not arm’s length)

• Improvements

• Physical description (topography, vegetative cover, water influence, and other characteristics.)

• Non-realty items

• Economic characteristics

• Zoning

• Current use

• Topographic map & Photographs

• Map showing all of the Sales and their relationship to the Subject

• Mapping & Instructions sufficient to find each of the sale properties on the ground with only the appraisal report

Statement of Work for Cloudcroft Townsite Act Proposed Sale 2025 page 6 of 51

All of the sales used for direct comparison shall be shown on a sales grid that includes significant characteristics and adjustments made to the sales. Include a list of the sales considered, but not actually used, in the body of the report or the addenda. Cite pertinent facts such as date, size, buyer and seller, price, terms, location, and explain why each sale was not used.

Addenda/Other Pertinent Exhibits – Present in the addenda additional data such as documents and charts pertinent to the valuation and referred to in the body of the report. Include a copy of this Statement of Work, purchase order, engagement letter, specialist reports, and supporting documents that describe the property rights appraised in the addendum of the appraisal report.

Qualifications – Include the qualifications of all appraisers or technicians who made significant professional contributions. The appraiser(s) signing the certification must provide evidence of compliance with the certification requirements of the state where the property is located, the date their current license expires, and evidence of successful completion of UASFLA-compliant appraisal work or the UASFLA training course.

ASSIGNMENT SPECIFICATIONS

The project’s name is the Village of Cloudcroft Townsite Act Sale. The current owner is the United States of America. The sale will be processed under the authority of the Townsite Act of July 31, 1958, (72 Stat. 438, 7 U.S.C. § 1012a; 16 U.S.C. § 478a), as amended by Sec. 213 of the Federal Land Policy and Management Act of October 21, 1976 (90 Stat. 2760), 36 CFR 254 Subpart B.

Client of the Appraisal – The contract appraiser shall recognize the USDA Forest Service as the Client. Dissemination of appraisal reports to the intended users – other than the assigned Forest Service Review Appraiser – will be after the technical review is completed by the assigned Forest Service Review Appraiser. The contract appraiser SHALLT NOT provide, transmit, or otherwise communicate the appraisal report or results to anyone other than the assigned Forest Service Review Appraiser without the express written direction of the Forest Service Review Appraiser.

Intended Users —The contract appraiser shall recognize the USDA Forest Service, USDA Office of the General Counsel, and the Village of Cloudcroft or their authorized representatives as Intended Users of the appraisal.

Intended Use – The intended use of the appraisal will be to provide the basis of value for the proposed sale of the 6.5-acre parcel within the Village limits of Cloudcroft, Otero County, New Mexico, by the United States of America to the Village of Cloudcroft under authority of the Townsite Act.

Property Owner Contact – Justin Mapula, Realty Specialist, USDA Forest Service, 333 Broadway Blvd., SE, Albuquerque, NM 87102. Phone: (505) 438-5373. Email:

justin.mapula@usda.gov.

Proponent Contact – Timothy E. King, Mayor, Village of Cloudcroft, P.O. Box 317, 201 Burro Avenue, Cloudcroft, NM 88317. Phone: (575) 682-2411.

Email: ccvillagemayor@cloudcroftvillage.com

Statement of Work for Cloudcroft Townsite Act Proposed Sale 2025 page 7 of 51

Purpose – The purpose of the appraisal is to provide an opinion of market value.

Definition of Value – The definition of Market Value identified by the UASFLA must be used:

Market Value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of value, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property

This definition makes no linkage between the opinion of market value and exposure time. A specific exposure time shall not be cited in an appraisal report prepared under UASFLA standards. As previously stated, the appraiser may invoke the Jurisdictional Exception Rule to comply with USPAP standards, which may be interpreted to require the development of a specific exposure time.

Suggested language for the Jurisdictional Exception follows:

The Uniform Appraisal Standards for Federal Land Acquisitions provide that the appraiser shall not link an opinion of market value to a specific exposure time. This is contrary to Standards Rule 1-2(c) of the 2024 edition of the Uniform Standards of Professional Appraisal Practice and is considered a Jurisdictional Exception.

Scope of Work – UASFLA requires the reporting of seven critical elements that defined the appraisal problem to be solved in the Scope of Work section:

• Client

• Intended Users

• Intended Use

• Definition of Market Value

• Effective date

• Property characteristics

• Assignment conditions

If an issue arises during the development of the appraisal that would necessitate the use of a hypothetical condition or extraordinary assumption other than the ones specifically instructed in this Statement of Work, the Forest Service Review Appraiser must be consulted and supplemental written instructions issued prior to use of the hypothetical/extraordinary and completion of the assignment.

The appraiser shall conduct all investigations necessary to provide credible results including market/marketability analyses using inferred demand studies. The three approaches to value shall be considered and presented, if deemed reliable, regardless of the appraiser’s opinion of added strength to the overall value conclusion. A detailed field inspection of the Subject Property shall be made by the appraiser. The comparable sales shall be physically inspected and to the extent necessary to confirm their physical characteristics.

Highest and Best Use - Section 1.4.4 of UASFLA defines highest and best use as “The highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future.”

Statement of Work for Cloudcroft Townsite Act Proposed Sale 2025 page 8 of 51

The highest and best use conclusion must be clearly supported by market evidence. Sale to the United States or other public entity is not an acceptable highest and best use. The use to which the government or other public entity will put the property after it has been acquired is, as a general rule, an improper highest and best use. A non-economic highest and best use such as “exchange to the government’,” “conservation,” “natural lands,” “preservation,” or any use that requires the property to be withheld from economic production in perpetuity, is not a valid use upon which to base an opinion of market value. If speculation or investment is deemed to be the highest and best use of the property, describe and explain its interim and most probable ultimate use as well as the time horizons related to the use(s).

When supportable by market evidence, the use of quantified adjustments is preferred.

Percentage and dollar adjustments may, and often should, be combined. Resort to qualitative adjustments only when there is inadequate market data to support quantitative adjustments.

Factors that cannot be quantified are dealt with in qualitative analysis. When quantitative and qualitative adjustments are both used in the adjustment process, all quantitative adjustments should be made first.

Within the Sales Comparison Approach to value, include a sales adjustment chart summarizing the adjustments and showing the final adjusted sale prices and how the sales compare with the subject property.

Date of Value – The date of value shall be the last date the appraiser inspected the property, unless otherwise instructed in writing by the appraisal reviewer. The appraiser shall submit the completed appraisal report for review within 45 days of the date of value.

Legal Description: The Subject Property is described as follows:

Township 15 South, Range 12 East, N.M.P.M., Otero County, New Mexico A Portion of the SE ¼ of Section 35.

Identified as Tract “A” as shown on a plat of survey entitled “Boundary Survey U.S.

Forest Service Townsite Act Disposal in the SE ¼ of Section 35, Township 15 South, Range 12 East, N.M.P.M., Otero County, New Mexico” dated August 1, 2022 by Clyde J. King, New Mexico Professional Land Surveyor 13979, filed in Book_________, page________, of the records of Otero County, New Mexico. Said parcel containing 6.50 acres of land, more or less.

Note: Referenced Boundary Survey Plat will be recorded in the records of Otero County upon acceptance of the purchase price by the Village of Cloudcroft.

Property Rights to be Appraised – The Estate to be Appraised includes all rights, title, and interest to the 6.5 acres of land belonging to the United States of America subject to existing and proposed reservations.

Proposed Reservations:

1. A public driveway access ROW easement to construct and maintain for public use as part of the Parking Area as described in the attached boundary survey plat and identified as

“DRIVEWAY ACCESS RIGHT OF WAY EASEMENT (RESERVED TO USA)”,

containing approximately 0.11 acres.

Statement of Work for Cloudcroft Townsite Act Proposed Sale 2025 page 9 of 51

2. 2. An administrative road access easement, as presently located over and across a portion of T15S, R12E, section 35 being 20 feet wide, 10 feet each side of the centerline, as described in the attached boundary survey plat and identified “20’ ACCESS EASEMENT (RESERVED TO USA)”, containing approximately 0.24 acres.

3. A right-of-way thereon for ditches or canals constructed by the authority of the United States according to the proviso of the Act of August 30, 1890 (26 Stat. 391; 43 U.S.C. § 945).

New Exception To Title:

The Grantee shall indemnify, defend, and hold harmless the USA from costs, damages, claims, liabilities, and judgements arising from past, present, and future acts or omissions of Grantee, and its employees, agents, contractors, or lessees, arising out of, or in connection with, Grantee’s use, occupancy, or operations on the quitclaimed real property including but not limited to CERCLA and other environmental laws and regulations.

Mineral Rights: Mineral rights have not been severed from title. Any and all mineral rights will be conveyed with title.

Water Rights: Any and all water rights on the subject property will convey with title. There are no known water rights associated with the subject property.

Leases: There are no leases on the subject property.

Other items not of record that may impact the estate: None.

Special Use Permits (SUPs):

1. SRD103301 (Exhibit J): A SUP issued to the Village of Cloudcroft on 12/04/1995 and expired 11/30/2006 for the use and occupancy of wastewater treatment facilities encumbering approximately 0.4 acres over and across a portion of the SE1/4 of Sec. 35, T. 15 S., R 12 E., N.M.P.M. Otero County, New Mexico, as described in the attached boundary survey plat.

(This SUP will be terminated upon conveyance of the subject property).

2. SRD020301 (Exhibit K): A SUP issued to the Village of Cloudcroft on 12/28/2010 and expires 12/31/2030 for the use and maintenance of a gravel road also known as Muchachita Avenue connecting to the Village’s paved road, 300 feet by 33 feet wide, approximately 0.23 acres over and across a portion of the SE1/4 of Sec. 35, T. 15 S., R 12 E., N.M.P.M. Otero County, New Mexico, as described in the attached boundary survey plat.

(This SUP will be terminated upon conveyance of the subject property).

3. SRD707700 (Exhibit L): A SUP issued to Curt and Bonnie Pfannstiel on 02/25/2014 and expires 12/31/2037 for the use, operation, and maintenance of prior water developments:

300 feet by 10 feet right-of-way for a sewage and water transmission pipeline; and 200 feet by 30 feet access to existing road.

(This SUP will be terminated upon conveyance of the subject property and a replacement easement will be executed from the Village to Pfannstiel at closing, in favor of the third party).

Statement of Work for Cloudcroft Townsite Act Proposed Sale 2025 page 10 of 51

4. SRD101414 (Exhibit M): A SUP issued to the New Mexico State Highway Department of Transportation (NMDOT) on 06/05/1950 (no stated expiration date) for the construction, use, operation, and maintenance of State Highway 83 (now U.S. Highway 82) for a 132 foot wide right-of-way, 66 feet each side of the center line and a 400 foot-wide scenic strip right-of-way, 200 feet each side of the center line over and across various sections of the Lincoln National Forest as defined in the SUP.

This SUP will be amended to the following terms: the 200-foot scenic strip to the west of the subject property will be vacated and is no longer needed by the NMDOT; the 200-foot scenic strip to the east of the subject property will be reduced to 100’ from the center line as defined and described in the attached boundary survey plat, exhibit drawing and legal descriptions. The 132-foot-wide right-of-way remains as stated.

(The existing NMDOT SUP will be amended to reflect these changes and a replacement easement for the affected right-of-way portion will be executed from the Village to NMDOT at closing, in favor of the third party).

5. LIN00100 (Exhibit N): A SUP issued to Otero County Electric Coop on 8/21/2013 and expires 12/31/2059 for electric transmission and distribution powerlines for various voltages and capacities ranging from 7.2 kV through 69 kV. The powerline right-of-way that encumbers the subject property is 7.2 kV and is approximately 375 feet long by 20 feet wide.

(This SUP will be amended upon conveyance of the subject property to exclude the portion of powerline that crosses the subject property. A replacement easement will be executed from the Village to Otero County Electric Coop at closing, in favor of the third party).

Reservations to be removed: None.

Legal Access Description: Address: 29 Highway 82, Cloudcroft, NM 88317. The subject property is located just north and west of the Village of Cloudcroft. Heading north on Highway 82, after leaving the Village, the subject property is approximately 0.25 miles north of the Sacramento Mountains Medical Center. The turnoff to the northern portion of the subject property (wastewater treatment plant) is on the left-hand side and the access to the southern portion is on the right-hand side (Muchachita Avenue).

A. Water and sewage pipelines are owned by the Village of Cloudcroft and are included under the Village’s Special Use Permits related to the WWTP. As the land is to be appraised as if vacant and available for its highest and best use, and the Village’s WWTP facilities, including the water and sewer lines, are to be specifically disregarded in this appraisal assignment.

B. There is an overhead power line that also serves the Village’s WWTP and is shown on the USFS Boundary Survey. The Realty Specialist on the Forest reported that she is not aware of a Special Use Permit related to the electric service line or inclusion of the line on the Electric Co-Op’s Master Agreement. As power line is directly related to the operation of the Village’s WWTP facilities, and the Village’s WWTP facilities are to be specifically disregarded, the appraiser is to give no consideration of the existence of the power line on the subject property.

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C. There is a Special Use Permit to Curt and Bonny Pfannstiel for the use and maintenance of existing sewer and water lines to and from the Village’s sewer and water lines that serve the Village’s WWTP. This SUP is to be disregarded for the purposes of this appraisal assignment, as the land is to be appraised as if vacant and available for its highest and best use, and the Village’s WWTP facilities are to be specifically disregarded. The Pfannstiel SUP is directly related to the WWTP facilities and will also be disregarded.

Scenic Easement – The “Scenic Easement” as shown on the plat by Clyde King is a management prescription imposed by the USFS on the property and is not an easement, reservation, encumbrance, or restriction on title. It is not to be considered restricting the highest and best use of the property. Upon sale of the property, this management prescription ceases to exist.

Access – U.S. Highway 82 bisects the subject property. There is direct access from the northerly part of the Subject Property to the highway on the existing service road into the WWTP. The southerly part of the property has direct access to Muchachita Road, and from Muchachita Road to the U.S. Highway 82. The property is legally and physically accessible via these public roadways.

Site Improvements: For the purposes of this assignment, the only site improvements that are to be considered are the public improvements that provide access to the site, the public roads noted above, and the public utilities that extend to the boundary lines of both the north and south usable parcels.

Archaeological Information: A full data recovery archaeological process is being completed on all archaeological sites within the property boundary. Archaeological issues are believed not to hinder economic use of the property after the recovery has been completed.

Additional Information –

• Land Description Verification – Federal Land

• Boundary Survey

• Designation Order

• Mineral Potential Report dated December 5, 1995 indicating low potential for locatable and leasable minerals, except for high-calcium limestone which is rated as moderate.

• Water Rights Analysis

• Basic Specifications for Real Property Appraisals

Pre-Work Conference – A pre-work meeting, scheduled by the Review Appraiser at a mutually acceptable time and place, must precede the appraiser’s scope of work determination, and at a minimum will include the appraiser and Review Appraiser.

Appraisal Report Format and Delivery – Once the report is complete, a signed copy in a searchable PDF format must be submitted to the Review Appraiser. The Review Appraiser may have follow-up questions and deliver a request for points of clarification and/or additional support to achieve an approvable appraisal. If necessary, it is customary for the Contract Appraiser to address these issues and re-submit a revised appraisal with a new report date.

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A formal review report will only be generated for the final submission along with a statement regarding acceptance (or non-acceptance) and approval (or non-approval) of the appraisal for agency use. Dissemination to the Intended Users will be after completion of the technical review and approval by the assigned Forest Service Review Appraiser.

Appraisal Report Due: Within 120 calendar days from contract award. Contractors must be able to provide appraisal services within the performance period specified or state their proposed delivery schedule boldly in the proposal. Report date to be within 60 calendar days from the last property inspection, or the effective date of the appraisal.

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Land Description Verification, Page 1 (LDV)

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Mineral Report Dated December 6, 1995

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Mineral Report Supplement

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Section C-2 - Basic Specifications for Real Property Appraisals C-2.1 - General Specifications.

C-2.1(a) - Scope of Service. The contract appraiser shall furnish all materials, supplies, tools, equipment, personnel, travel and shall complete all requirements of this contract, including performance of the professional services listed herein.

The report shall provide an estimate of market value for the Subject Property and shall conform to the current editions of USPAP, published by The Appraisal Foundation, current as of the date of the report, as well as UASFLA.

The date of the opinion of value shall be the last date the contract appraiser inspected the Subject Property.

If clarification of these specifications is the contract appraiser shall contact:

Gerald Sanchez, RPRA Chief Appraiser USDA Forest Service

(505) 842-3154 gerald.sanchez@usda.gov

The contract appraiser’s contact with Forest Service officials is limited to the assigned review appraiser, and the Regional Appraiser. The contract appraiser shall notify the assigned review appraiser of any requests for information by other Forest Service officials.

C-2.1(b) - Appraisal Report. The contract appraiser selected for the assignment shall make a detailed field inspection of the Subject Property and conduct as many investigations and studies as necessary to derive sound conclusions to prepare the appraisal report.

C-2.1(c) – Pre-Work Conference. At the request of the assigned staff review appraiser, the contract appraiser will be required to attend a pre-work conference for discussion and understanding of these instructions. The pre-work conference may be held in conjunction with the property examination [C-2.1(d)].

C-2.1(d) - Examination Notice. The contract appraiser shall provide the property owner and the Government 10 days advance notice of the examination date and shall give the owner, or the designated representative, and the Government an opportunity to accompany the contract appraiser during the inspection of the property. These notices must be documented in the contract appraiser’s transmittal letter of the appraisal report. The contract appraiser shall certify that the contract appraiser has personally visited the appraised property(ies) and all of the comparable transactions used in the comparative analyses.

C-2.1(e) - Updating of Report. Upon the request of the Government, the contract appraiser shall, during a 2-year period following the valuation date of the appraisal report, update the value as of a specified date. This supplemental scope of services will be paid separately.

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C-2.1(f) - Testimony. Upon the request of the United States Attorney or the Department of Justice, the contract appraiser shall, in any judicial proceedings, testify as to the value of any and all property included in the appraisal report as of the valuation date. This supplemental scope of services will be paid separately.

C-2.1(g) - Definition of Terms. Unless specifically defined herein or in either USPAP or UASFLA, definitions of all terms are the same as those found in “The Dictionary of Real Estate Appraisal” (Appraisal Institute), current edition. The UASFLA shall take precedence in any differences among definitions.

C-2.2 - Technical Specifications.

Application of These Specifications: These technical specifications reflect the standards for the appraisal of property to be acquired or conveyed by the Forest Service. Unless defined for the contract appraiser in the assignment, the specifications require the contract appraiser to analyze and determine the larger parcel. If it is determined that the estate to be appraised contains multiple larger parcels, the contract appraiser shall consult with the assigned staff review appraiser for possible additional direction. For exchanges, the larger parcel will be specifically defined in the Agreement to Initiate (ATI).

Federal Law Controls: Federal law may differ from the laws of some states and supersedes State law when they conflict. Accordingly, it is incumbent upon the contract appraiser to understand the applicable Federal law as it affects the appraisal process in the estimation of market value. Federal law is reflected in UASFLA. The specifications in this appraisal contract follow UASFLA format, with emphasis on issues of special concern to the Forest Service. It should not be construed that the contract appraiser is to consider only the emphasized items. Appraisal reports shall be prepared in compliance with UASFLA standards and Forest Service appraisal instructions provided by the assigned staff review appraiser.

One aspect of the UASFLA that the contract appraiser should be aware of is the “unit rule.” The unit rule requires valuing property as a whole rather than by the sum of the values of the various interests into which it may have been carved. A second aspect of the unit rule is that different elements or components of a tract of land are not to be separately valued and added together.

UASFLA and USPAP Conflicts: Conflicts between UASFLA and USPAP are minimal.

When there is conflict, UASFLA takes precedence. It may be necessary to invoke the Jurisdictional Exception Rule to USPAP to meet certain standards of the UASFLA. Invocation of the Jurisdictional Exception Rule should never be invoked lightly and must include citation of the over-riding Federal policy, rule, or regulation that requires it. Any jurisdictional exceptions not specifically cited in the UASFLA shall be discussed with the assigned staff review appraiser.

Comprehensive Review: Federal law requires review of all appraisals by a qualified review appraiser to assure they meet applicable appraisal requirements, including those in UASFLA, Forest Service policy, and these specifications. Compliance with USPAP will also be reviewed. Findings of deficiency shall be discussed, and corrections requested once the appraisal report has been delivered. A value estimate is acceptable for agency use only after the assigned staff review appraiser has approved the appraisal report (FSM 5411).

Freedom of Information Act: Freedom of Information Act provisions may result in the release of all or part of the appraisal report to the public. Prepare the report so that:

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a. Analytical methods and techniques are explained (in so far as possible) in a manner understandable to the public, as well as the reviewer.

Section C-2 - Basic Specifications - Continued

b. If providers of information request confidentiality, this information is not included in the report. Confidential information shall be made available to the staff review appraiser upon request but shall not be incorporated in a Forest Service system of records.

C-2.2(a) - Format. The report shall be typewritten on bond paper, sized at 8 1/2 by 11 inches, with all parts of the report legible, and bound with a durable cover. The face of the report shall be labeled to identify the appraised property and show the contract appraiser's name and address, and the date of the appraisal. All pages of the report, including the exhibits, shall be numbered.

C-2.2(b) - Contents. The suggested format outlined in items C-2.2(b) (1) through C-2.2(b) (4) is based on UASFLA. Although it is not required that the contract appraiser strictly adhere to it, all items must be addressed. It should be noted that in most instances, these specifications reference UASFLA without reprinting them here. Important items are noted below but are not all-inclusive. It is incumbent upon the contract appraiser to read, understand, and comply with UASFLA and these specifications.

C-2.2(b) (1) - Part I – Introduction. Follow the UASFLA format.

1. Title Page.

2. Letter of Transmittal.

3. Table of Contents.

4. Appraiser’s Certification. Follow the UASFLA and USPAP guidelines, but include the following:

"I have made a personal inspection of the appraised property which is the subject of this report and all comparable sales used in developing the opinion of value. The date(s) of inspection was __________, and the method of inspection was ___________________.” (If more than one person signs the report, this certification must clearly specify which individuals did and which individuals did not make a personal inspection of the appraised property. The contract appraiser must inspect the appraised property.)

"In my opinion, the market value (or other value as required) is $ ______ as of (date).

By (Appraiser’s signature)

Printed Name and Professional Accreditation

State General Certification No.

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5. Executive Summary (Summary of Salient Facts and Conclusions). Report the major facts and conclusions that led to the final opinion(s) of value.

6. Photographs of Subject. Provide original color photographs or high-quality color copies of photographs of the appraised property. Photographs may be a separate exhibit in the addenda or included with the narrative description of the appraised property and comparable sales. Show the following information with each photograph:

a. Identify the photographed scene. Indicate direction of view, vantage point, and other pertinent information. A map may be used to show some of this information.

b. The name of the photographer.

c. The date the photograph was taken.

7. Statement of Assumptions and Limiting Conditions. All appraisal reports submitted to the Forest Service for review become the property of the United States and may be used for any legal and proper purpose. Therefore, a condition that limits distribution of the report is not permitted.

If the appraisal has been made subject to any encumbrances against the property, such as easements, that shall be stated. It is unacceptable to state that the property has been appraised as if free and clear of all encumbrances, except as stated in the body of the report.

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