Market Analysis Questions.pdf

Market Analysis Questions

1. Is there a budget for the envisioned work:

The estimated range of cost for this project is $5,000.00-$15,000.00.

2. Has NRCS conducted similar studies in the in the past; if so could they be made available? This information could be released to the selected vendor after signing a confidentiality agreement with NRCS.

Yes, NRCS has conducted a Market Analysis for FY 2009. We would be willing to release it to the selected vendor.

3. Does NRCS already have a database of properties that have been subjected to conservation; if so, could it be shared with the vendor once selected.

NRCS has a database of both GRP and FRPP acquisition that have been completed for Rhode Island. This information could be released to the selected vendor after signing a confidentiality agreement with NRCS.

4. Could you please explain in more detail how the report conclusions will be used?

The following guidance is provided on determination of easement value for both GRP and WRP: Each State will develop Geographic Area Rate Caps (GARC) for both the Wetland Reserve Program and the Grassland Reserve Program. The states need to determine how many and the location that each GARC covers. The GARC is developed by the Rhode Island NRCS State Economist using criteria outlined in National Bulletins 300-10-2 and 300-10-3 WRP and GRP Easement Compensation Procedures (attached). Additionally, the bulletins outline the procedure for developing a Market Analysis and individual appraisals.

States must have GARCs developed for each program. The guidance in the bulletins then gives each state the option of using a market analysis or individual appraisal to compare to the GARC and offer the landowner the lower of the two values.

In developing the market analysis for these two programs NRCS plans on taking the different types of lands in the market analysis and comparing these types of lands to our soils database (attached file WRP_Soils_Join.DBF). In the soils database there is a listing of the different soils types and there limitations to development. The limitations are the following: non developable, low development potential, average development potential, and high development potential.

Example Easement Value Calculation Market Analysis Costs

MAP UNIT ACRES Development Potential COST/ACRE COST

Ru-Rumney fine sandy loam 7.4 Non $2,000.00 $14,800.00 Pp-Podunk fine sandy loam 10.21 Low $5,000.00 $51,050.00 UD-Udorthents-urban land compex 1.37 Low $5,000.00 $6,850.00 MU-Merrimac-urban land complex 0.26 Average $10,000.00 $2,600.00 HkC-Hinckley gravelly sandy loam 1.52 High $20,000.00 $30,400.00 W-Water 5.82 Non $2,000.00 $11,640.00

26.58 $117,340.00

Geographic Area Rate Cap-WRP Providence County Cost/Acre Total Acres Total Cost

$4,265.00 26.58 $113,363.70

5. Do you have a list of potential properties that you are interested in purchasing or will the best prospects come out of this work?

No. The market analysis will not be used to find properties that NRCS will be purchasing through our easement program. It is used to determine a relative value of the different type of developable lands that will likely be found on a typical easements application so that a value can be determined for the property without completing a full appraisal.

6. Are you looking for the consultant to recommend the best parcels to consider for easements or are you only looking for a list of available properties?

Neither, we are looking for a Market Analysis.

7. Is there any potential for follow-up work?

If there is any potential for follow-up work NRCS will follow our contracting procedures to obtain the needed services.

8. Would it be possible to extend the due date?

Yes. The due date will be extended to April 1, 2010.

9. Is there a budget for acquisitions?

No. Each state is given an allocation for the specific program. We receive and rank applications then fund the highest ranked application until we expend all of our funds.

10. Could you make the commencement for the comparables a little more flexible at the discretion of the vendor?

The guidance provided was sales since October 2007. If older sales are to be used then the contractor would have to justify the use of this sale in the final market analysis.