BID_E-25-26_PROPERTY_INFORMATION.pdf

MEMO

DATE: July 31, 2023

TO: Mayor Patrick Collins

Brad Brooks, Director of Board of Public Utilities

Kris Jones, City Clerk

Tom Cobb, City Engineer

John Kopper, Fire Chief

Jason Sanchez, Director of Community Recreation and Events

Charles Bloom, Director of Planning and Development

Mark Francisco, Police Chief

Vicki Nemecek, Public Works Director

Robin Lockman, City Treasurer

FROM: Cassie Pickett (Engineer’s Office)

SUBJECT: Disposal of Real Property for Tract 1, Rex Addition, 3425 Christensen Road

The City Engineer’s Office submits the following reports for department review and form completion. Please complete Sheet VII.14 and include all pertaining documentation as stated for any Needs and Objections noted.

The reports are included for your reference.

The property was purchased as part of the Christensen Road Project. The parcel is no longer necessary, and the City Engineer’s Office is requesting Disposal of Real Property.

Thank you.

ENGINEERING

2101 O’Neil Avenue Room 206 Cheyenne, Wyoming 82001 Phone (307)637-6268 Fax (307)637-6256

OF CHOICE A COMMUNITY

DocuSign Envelope ID: F80A1CEF-F568-4B09-BB1D-52D652104DB8

Check List for Disposal of Real Property

(Land and/or Buildings)

Prior to the sale, lease or other disposal of real property, the following tasks must be performed:

Each Department of City Government, specifically including the

Board of Public Utilities, has considered the proposed sale, lease or other disposition of the land. Each Department must either approve the proposed sale, lease, or other disposition of land, state that the Department needs the land for any particular use, or state whether the Department objects to the proposed sale, lease or other disposition for any reason.

See below of all departments.

Sign off and circle approve/needs/or objects.

Attach the reason for needing the property or objecting the sale of the property.

BOPU

Approve

Needs

Objects

Clerk

Approve

Needs

Objects

Engineering

Approve

Needs

Objects

Fire

Approve

Needs

Objects

Mayor

Approve

Needs

Objects

Parks & Recreation

Approve

Needs

Objects

Planning/Development

Approve

Needs

Objects

Police

Approve

Needs

Objects

Public Works

Approve

Needs

Objects

Treasurer

Approve

Needs

Objects

VII.14

DocuSign Envelope ID: F80A1CEF-F568-4B09-BB1D-52D652104DB8

X

Rural Residential Property 3425 Christensen Road

Cheyenne, WY 82001

BBG File #0123103619

Prepared For City of Cheyenne Attn: Doug Klahn

Construction Manager 2101 O’Neil Ave

Cheyenne, WY 82001

Report Date March 8, 2023

Prepared By

BBG, Inc.

5395 West 25th Avenue

Denver, CO 80214

Client Manager: Daniel Holbrook dholbrook@bbgres.com

March 8, 2023

Attn: Doug Klahn Construction Manager 2101 O’Neil Ave Cheyenne, WY 82001

Re: Appraisal of Real Property 3425 Christensen Road

Cheyenne, WY 82001

Mr. Klahn:

In accordance with your authorization (per the engagement letter found in the Addenda of this report), we have prepared an Appraisal of the above-referenced property.

This appraisal report was prepared to conform with the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP). This report has been written in accordance with the Code of Ethics and the Standards of Professional Practice of the Appraisal Institute.

Note: Our opinion of market value is subject to the following Extraordinary Assumptions and/or Hypothetical Conditions:

Based on our investigation and the analysis undertaken, we have concluded the following value opinion.

The city intends to sell the property via sealed bid auction process which involves less marketing, restricted financing options for buyers, and a limited marketing time. It is possible that the much smaller pool of buyers and other limitations of the sealed-bid process will result in a price below the market value.

Estimated Fee Simple Market Value 3425 Christensen, Cheyenne, WY

As Is as of February 27, 2023 $ 490,000

This letter must remain attached to the report, which should be transmitted in its entirety, in order for the value opinion set forth to be considered valid.

Our firm appreciates the opportunity to have performed this appraisal assignment on your behalf. If we may be of further service, please contact us.

Sincerely, BBG, Inc.

Daniel Holbrook Senior Appraiser Wyoming State Certified General Real Estate Appraiser #1447

TABLE OF CONTENTS

Title Page 1 Letter of Transmittal 2 Table of Contents 4 Scope of Work 5 Standard Assumptions and Limiting Conditions 7 City Map 12 Regional Overview 13 Market Area Overview 19 Property Transaction History 20 Legal Description 20 Assessed Value and Taxes 21 Description of the Site 22 Description of the Improvements 22 Highest and Best Use 36 Sales Comparison Approach 38 Exposure Time & Marketing Period 54 Certification 55 Addenda 56

SCOPE OF WORK

Identify the Appraisal Problem Client and Intended Users

I was engaged to perform this assignment by the City of Cheyenne, which is the only intended user.

Intended Use The appraisal shall be used for internal reference purposes by the client. No other use is authorized.

Effective Date of the Opinions and Conclusions The subject property is being appraised as of February 27, 2023. The report was prepared during February and March 2023.

Prior Services Performed The appraiser appraised the subject for the same client in January 2022.

Type and Definition of Value The assignment is to estimate the market value of the fee simple estate as of the date of value. It should be noted that the estimated value assumes adequate exposure time and professional marketing. The city said they plan to sell the property via sealed bid. It is possible that the much smaller pool of buyer, limited marketing, and limited timing of this process could result in a price less than the market value. However, the city has been public about the desire to sell this property for at least the last year and the client contact said there are several interested and able buyers waiting for the sale process.

Market Value Definition Market value means the most probable price which a property should bring in a competitive and open market under all condition’s requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. buyer and seller are typically motivated;

2. both parties are well informed or well advised and acting in what they consider their own best interests;

3. a reasonable time is allowed for exposure in the open market;

4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

This definition is from regulations published by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5, 1990, and August 24, 1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, FRS, and FDIC on June 7, 1994, and in the Interagency Appraisal and Evaluation Guidelines, dated October 27, 1994.

Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Source:

Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).

Scope of Work

Degree to which the property is inspected:

The property was inspected from the exterior, per prior agreement with the client. The client confirmed the interior had not changed from the 2022 inspection completed by the appraiser. With regard to the site, particular attention was given to the availability of utilities, presence of onsite and offsite improvements, specific location, size and configuration, and present or potential land use restrictions. The improvements located on this site (if any) were analyzed to determine the quality and condition of construction, age, size, use, functionality, state of completion and the overall contribution to the property as a whole. The inspection of the site and improvements is for the purposes of estimating the market value of the property.

Extent of research into physical or economic factors that could affect the property:

The area, community, and neighborhood were personally studied, and trends which could affect the subject property have been considered in the valuation of the subject.

Type and Extent of Data Research:

I have searched the market for comparable sales and comparable rentals if applicable. Emphasis has been placed on finding comparables that are recent and are similar in type, use, location, age, quality, condition, appeal, etc. If sufficient comparables to form an opinion are not available, then the search must be widened to include sales that are not as recent or are not similar in some respects. In this case the appraiser has attempted to bracket the subject property with comparables that are inferior and comparables that are superior, to establish a clear range of value. Market data appropriate to the valuation of this property were collected and analyzed in a variety of ways. Comparable sales have been located using public records and by interviewing real estate participants familiar with the area and property type. Once located, the particulars of each sale were verified with parties involved in the transaction (typically the buyer, seller, broker, appraiser, or lender). Wyoming is a nondisclosure state so there is no public record of sale prices.

The market data in this report is deemed reliable but is not guaranteed.

Type and Extent of Analyses Applied:

The sales comparison approach is the most reliable approach and has been developed for this report.

STANDARD ASSUMPTIONS AND LIMITING CONDITIONS

The Terms and Limiting Conditions of the Engagement are deemed part of the attached Proposal Specifications and Appraisal and Consulting Services Agreement and are incorporated fully therein, and shall apply to any appraisal services, consulting services, oral testimony, reports, contracts, or orders into which they may be incorporated.

A) Definitions. In the Terms and Conditions of the Engagement:

1. “BBG, Inc.” means BBG, Inc. and its agents, successors, assigns, servants, employees, principals, affiliated companies and all those in privity with them.

2. “Appraiser” means the appraiser(s) performing part or all of the appraisal services and/or signing an appraisal report. “Appraiser” may also mean “Consultant” in a consulting assignment.

3. “Appraisal and Consulting Services Agreement” means any written agreement with Client for performance of the appraisal services by Appraiser, including any agreement entered into electronically.

4. “Client” means any party identified expressly as a client in an Appraisal and Consulting Services Agreement and also any party identified expressly as a client by the Appraiser in an appraisal report.

5. “Appraisal” means any appraisal or consulting report(s) prepared by or oral report and/or testimony presented by BBG, Inc.

6. “Report” means a written or oral report prepared by and/or oral testimony presented by BBG, Inc.

B) Venue and Jurisdiction THIS APPRAISAL AND CONSULTING SERVICES AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC SUBSTANTIVE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION. IF ANY ACTION RELATING TO THIS APPRAISAL AND CONSULTING SERVICES AGREEMENT OR THE CONTEMPLATED TRANSACTIONS IS BROUGHT BY A PARTY HERETO AGAINST ANY OTHER PARTY HERETO, THE PREVAILING PARTY IN SUCH ACTION WILL BE ENTITLED TO RECOVER ALL REASONABLE EXPENSES RELATING THERETO (INCLUDING REASONABLE ATTORNEYS’ FEES AND EXPENSES)

FROM THE NON-PREVAILING PARTY.

Each party to this Appraisal and Consulting Services Agreement (a) hereby irrevocably submits to the exclusive jurisdiction and venue of the state courts located in Dallas County, Texas (or, if but only if such court lacks jurisdiction, the United States District Court for the Northern District of Texas) for the purpose of any Action between any of the parties hereto arising in whole or in part under or in connection with this Appraisal and Consulting Services Agreement, any Ancillary Agreement, or the Contemplated Transactions, (b) hereby waives and agrees not to assert any claim that he, she or it is not subject personally to the jurisdiction of the above-named courts or that any such Action brought in the above-named courts should be dismissed on grounds of forum non conveniens. Notwithstanding the foregoing, a party hereto may commence any Action in a court other than the above-named courts solely for the purpose of enforcing an order or judgment issued by the above-named courts.

C) Limitations of Liability It is expressly agreed that in any action which may be brought against BBG, Inc., arising out of, relating to, or in any way pertaining to this engagement, this Appraisal and Consulting Services Agreement, or any services, reports, information, or opinions contained therein or presented, BBG, Inc. shall not be responsible or liable for any incidental or consequential losses, unless the same was fraudulent or prepared with gross negligence. It is further agreed that the collective liability of BBG, Inc. in any such action shall not exceed the fees paid for the preparation of the respective report or services unless the same was fraudulent or prepared with gross negligence. Finally, it is agreed that the fees charged herein are in reliance upon the foregoing limitations of liability.

Client hereby agrees to indemnify, defend, protect, and hold BBG, Inc. harmless from and against all claims, damages, losses and expenses, including attorneys’ fees, expenses and costs, incurred upon investigating and defending any claim, action or proceeding arising from, or in any way connected to, relating to, or in any way pertaining to this engagement, this Appraisal and Consulting Services Agreement, or any services, reports, information, or opinions contained therein or presented.

Further, you acknowledge that any opinions and conclusions expressed by professionals employed by BBG, Inc.

related to this agreement are representations made by them as employees and not as individuals. BBG, Inc.’s responsibility is limited to you as a Client. The use of BBG, Inc.’s product by third parties is not intended unless expressly stated and shall be solely at the risk of you and/or third parties. BBG, Inc. acknowledges that Client will be the end-user of, and can rely upon, the opinion and conclusions of BBG, Inc.

D) Confidentiality The parties agree that (i) this Appraisal and Consulting Services Agreement and the terms contained herein, (ii) opinions or valuation conclusions, (iii) the identity of the analyst or the firm and any reference to the professional organization of which the appraiser is affiliated or to the designations thereof, and (iv) all information regarding the property of whatever nature made available to either party by the other (including all versions of BBG, Inc.’s final report and all prior drafts of same) and methods of each party revealed during the performance of the Services (altogether, collectively, the “Confidential Information”) shall be treated as strictly confidential.

Accordingly, neither party nor any employee, agent or affiliate thereof shall disclose the same to any third party without the written consent of other party and approval of Appraiser; provided, however, that, a party shall not hereby be precluded from disclosure of Confidential Information that may be compelled by legal requirements, or from disclosing this Appraisal and Consulting Services Agreement (and the terms contained herein) to its attorneys, accountants, auditors, lenders, and other professionals who may be bound to that party by duties of confidence.

Do not provide Personally Identifiable Information (PII) to BBG, Inc. or any of its agents. PII is any piece of information meant to identify a specific individual. This includes data such as a Social Security number, driver's license number and financial account numbers.

E) General Assumptions and Limiting Conditions Appraisal services have been provided with the following general assumptions:

1. Notwithstanding that the Appraiser may comment on, analyze or assume certain conditions in the appraisal or consulting assignment, BBG, Inc. shall have no monetary liability or responsibility for alleged claims or damages pertaining to: (a) title defects, liens or encumbrances affecting the property; (b) the property’s compliance with local, state or federal zoning, planning, building, disability access and environmental laws, regulations and standards; (c) building permits and planning approvals for improvements on the property; (d) structural or mechanical soundness or safety; (e) contamination, mold, pollution, storage tanks, animal infestations or other hazardous conditions affecting the property; and (f) other conditions and matters for which licensed real estate appraisers are not customarily deemed to have professional expertise. Accordingly:

a) The Appraiser has not conducted any engineering or architectural surveys in connection with this appraisal or consulting assignment. Information reported pertaining to dimensions, sizes, and areas is either based on measurements taken by the Appraiser or the Appraiser’s staff or was obtained or taken from referenced sources and is considered reliable. The Appraiser and BBG, Inc. shall not be monetarily liable or responsible for or assume the costs of preparation or arrangement of geotechnical engineering, architectural, or other types of studies, surveys, or inspections that require the expertise of a qualified professional.

b) Unless otherwise stated in the written report or oral report, only the real property is considered, so no consideration is given to the value of personal property or equipment located on the premises or the costs of moving or relocating such personal property or equipment. Further, unless otherwise stated, it is assumed that there are no subsurface oil, gas or other mineral deposits or subsurface rights of value involved in this appraisal, whether they are gas, liquid, or solid. Further, unless otherwise stated, it is assumed that there are no rights associated with extraction or exploration of such elements considered.

Unless otherwise stated it is also assumed that there are no air or development rights of value that may be transferred.

c) Any legal description or plats reported in the appraisal are assumed to be accurate. Any sketches, surveys, plats, photographs, drawings or other exhibits are included only to assist the intended user to better understand and visualize the subject property, the environs, and the competitive data. BBG, Inc.

has made no survey of the property and assumes no monetary liability or responsibility in connection with such matters.

d) Title is assumed to be good and marketable, and in fee simple, unless otherwise stated in the report. The property is considered to be free and clear of existing liens, easements, restrictions, and encumbrances, except as stated. Further, BBG, Inc. assumes there are no private deed restrictions affecting the property which would limit the use of the subject property in any way, except as stated.

e) The appraisal report is based on the premise that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in the report; additionally, that all applicable zoning, building, and use regulations and restrictions of all types have been complied with unless otherwise stated in the report. Further, it is assumed that all required licenses, consents, permits, or other legislative or administrative authority, local, state, federal and/or private entity or organization have been or can be obtained or renewed for any use considered in the value opinion.

Moreover, unless otherwise stated herein, it is assumed that there are no encroachments or violations of any zoning or other regulations affecting the subject property, that the utilization of the land and improvements is within the boundaries or property lines of the property described, and that there are no trespasses or encroachments.

f) The American Disabilities Act (ADA) became effective January 26, 1992. The Appraiser has not made a specific compliance survey or analysis of the property to determine whether it is in conformity with the various detailed requirements of ADA. It is possible that a compliance survey of the property and a detailed analysis of the requirements of the ADA would reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative impact upon the value of the property. Since the Appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA was not considered in estimating the value of the property.

g) No monetary liability or responsibility is assumed for conformity to specific governmental requirements, such as fire, building, safety, earthquake, or occupancy codes, except where specific professional or governmental inspections have been completed and reported in the appraisal report or oral report.

h) It is assumed the subject property is not adversely affected by the potential of floods unless otherwise stated herein. Further, it is assumed all water and sewer facilities (existing and proposed) are or will be in good working order and are or will be of sufficient size to adequately serve any existing or proposed buildings.

i) Unless otherwise stated within the appraisal report or oral report, the depiction of the physical condition of the improvements described therein is based on visual inspection. No monetary liability or responsibility is assumed for (a) the soundness of structural members since no engineering tests were conducted; (b) the condition of mechanical equipment, plumbing, or electrical components, as complete tests were not made; and (c) hidden, unapparent or masked property conditions or characteristics that were not clearly apparent during the Appraiser’s or Consultant’s inspection.

j) If building improvements are present on the site, it is assumed that no significant evidence of termite damage or infestation was observed during physical inspection, unless so stated in the appraisal report or oral report. Further, unless so stated in the report or oral report, no termite inspection report was available. No monetary liability or responsibility is assumed for hidden damages or infestation.

k) Unless subsoil opinions based upon engineering core borings were furnished, it is assumed there are no subsoil defects present, which would impair development of the land to its maximum permitted use or would render it more or less valuable. No monetary liability or responsibility is assumed for such conditions or for engineering which may be required to discover them.

l) BBG, Inc., excepting employees of BBG Assessment, Inc., and the appraiser(s) are not experts in determining the presence or absence of hazardous substances toxic materials, wastes, pollutants or contaminants (including, but not limited to, asbestos, PCB, UFFI, or other raw materials or chemicals) used in construction or otherwise present on the property. BBG, Inc. and the appraiser(s) assume no monetary liability or responsibility for the studies or analyses which would be required to determine the presence or absence of such substances or for loss as a result of the presence of such substances. The Client is free to retain an expert on such matters in this field; however, Client retains such expert at Client’s own discretion, and any costs and/or expenses associated with such retention are the responsibility of Client.

m) BBG, Inc. is not an expert in determining the habitat for protected or endangered species, including, but not limited to, animal or plant life (such as bald eagles, gophers, tortoises, etc.) that may be present on the property. BBG, Inc. assumes no monetary liability or responsibility for the studies or analyses which would be required to determine the presence or absence of such species or for loss as a result of the presence of such species. The Appraiser hereby reserves the right to alter, amend, revise, or rescind any of the value opinions contained within the appraisal report based upon any subsequent endangered species impact studies, research, and investigation that may be provided. However, it is assumed that no environmental impact studies were either requested or made in conjunction with this analysis, unless otherwise stated within the report.

2. If the Client instructions to the Appraiser were to inspect only the exterior of the improvements in the appraisal process, the physical attributes of the property were observed from the street(s) as of the inspection date of the appraisal. Physical characteristics of the property were obtained from tax assessment records, available plans, if any, descriptive information, and interviewing the client and other knowledgeable persons.

It is assumed the interior of the subject property is consistent with the exterior conditions as observed and that other information relied upon is accurate.

3. If provided, the estimated insurable value or cost is included at the request of the Client and has not been performed by a qualified insurance agent or risk management underwriter. This cost estimate should not be solely relied upon for insurable value or cost purposes. The Appraiser is not familiar with the definition of insurable value from the insurance provider, the local governmental underwriting regulations, or the types of insurance coverage available. These factors can impact cost estimates and are beyond the scope of the intended use of this appraisal. The Appraiser is not a cost expert in cost estimating for insurance purposes.

4. The dollar amount of any value opinion herein rendered is based upon the purchasing power and price of the United States Dollar as of the effective date of value. Any appraisal report is based on market conditions existing as of the effective date.

5. Any value opinions reported or expressed apply to the entire property. Any proration or division of the total into fractional interests will invalidate the value opinions, unless such proration or division of interests is set forth in the report. Any division of the land and improvement values stated herein is applicable only under the program of utilization shown. These separate valuations are invalidated for any other application.

6. Any projections of income and expenses, including the reversion at time of resale, are not predictions of the future. Rather, they are BBG, Inc.’s best estimate of current market thinking of what future trends will be. No warranty or representation is made that such projections will materialize. The real estate market is constantly fluctuating and changing. It is not the task of an appraiser to estimate the conditions of a future real estate market, but rather to reflect what the investment community envisions for the future in terms of expectations of growth in rental rates, expenses, and supply and demand. The forecasts, projections, or operating estimates contained herein are based on current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes with future conditions.

7. The Appraiser assumes no monetary liability or responsibility for any changes in economic or physical conditions which occur following the effective date of value within this report that would influence or potentially affect the analyses, opinions, or conclusions in the report. Any subsequent changes are beyond the scope of the report.

8. Any proposed or incomplete improvements included in the appraisal report are assumed to be satisfactorily completed in a workmanlike manner or will be thus completed within a reasonable length of time according to plans and specifications submitted.

9. If the appraisal report has been prepared in a so-called “public non-disclosure” state, real estate sales prices and other data, such as rents, prices, and financing, are not a matter of public record. If this is such a “non-disclosure” state, although extensive effort has been expended to verify pertinent data with buyers, sellers, brokers, lenders, lessors, lessees, and other sources considered reliable, it has not always been possible to independently verify all significant facts. In these instances, the Appraiser may have relied on verification obtained and reported by appraisers outside of our office. Also, as necessary, assumptions and adjustments have been made based on comparisons and analyses using data in the report and on interviews with market participants. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.

10. Although the Appraiser has made, insofar as is practical, every effort to verify as factual and true all information and data set forth in this report, no responsibility is assumed for the accuracy of any information furnished the Appraiser either by the Client or others. If for any reason, future investigations should prove any data to be in substantial variance with that presented in this report, the Appraiser reserves the right to alter or change any or all analyses, opinions, or conclusions and/or opinions of value.

11. The right is reserved by the Appraiser to make adjustments to the analyses, opinions, and conclusions set forth in the appraisal report as may be required by consideration of additional or more reliable data that may become available. No change of this report shall be made by anyone other than the Appraiser or Consultant.

The Appraiser shall have no monetary liability or responsibility for any unauthorized change(s) to the report.

12. The submission of the appraisal report constitutes completion of the services authorized and agreed upon unless other services are provided for in this agreement. Such report is submitted on the condition the Client will provide reasonable notice and customary compensation, including expert witness fees, relating to any subsequent required attendance at conferences, depositions, or judicial or administrative proceedings, unless otherwise defined herein. In the event the Appraiser is subpoenaed for either an appearance or a request to produce documents, a best effort will be made to notify the Client immediately. Unless paid in whole or in part by the party issuing the subpoena or by another party of interest in the matter, the Client is responsible for all unpaid fees resulting from the appearance or production of documents regardless of who orders the work. A payment agreement must be reached in advance of the Appraiser providing such services.

Client shall not disseminate, distribute, make available or otherwise provide any appraisal report prepared hereunder to any third party (including without limitation, incorporating or referencing the report , in whole or in part, in any offering or other material intended for review by other parties) except to (a) any third party expressly acknowledged in a signed writing by Appraiser as an “Intended User” of the report provided that either Appraiser has received an acceptable release from such third party with respect to such report or Client provides acceptable indemnity protections to Appraiser against any claims resulting from the distribution of the report to such third party, (b) any third party service provider (including rating agencies and auditors) using the report in the course of providing services for the sole benefit of an Intended User, or (c) as required by statute, government regulation, legal process, or judicial decree. In the event Appraiser consents, in writing, to Client incorporating or referencing the report in any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such materials available to any such parties unless and until Client has provided Appraiser with complete copies of such materials and Appraiser has approved all such materials in writing. Client shall not modify any such materials once approved by Appraiser. In the absence of satisfying the conditions of this paragraph with respect to a party who is not designated as an Intended User, the receipt of a report by such party shall not confer any right upon such party to use or rely upon such report, and Appraiser shall have no liability for such unauthorized use or reliance upon such report. In the event Client breaches the provisions of this paragraph, Client shall indemnify, defend and hold Appraiser, and its affiliates and their officers, directors, employees, contractors, agents and other representatives (Appraiser and each of the foregoing an “Indemnified Party” and collectively the “Indemnified Parties”), fully harmless from and against all losses, liabilities, damages and expenses (collectively, “Damages”) claimed against, sustained or incurred by any Indemnified Party arising out of or in connection with such breach, regardless of any negligence on the part of any Indemnified Party in preparing the report.

CITY MAP

REGIONAL OVERVIEW

The short- and long-term value of real estate is influenced by a variety of factors and forces that interact within a given region. Regional analysis serves to identify those forces that affect property value, and the role they play within the region. The four primary forces that influence real property value include environmental characteristics, governmental forces, social factors, and economic trends. These forces determine the supply and demand for real property, which, in turn, affect market value.

Regional Map

Economic & Demographic Profile

The following profile of the Cheyenne MSA (nearest to the subject) was provided by Moody’s Analytics, a leading provider of economic, financial, and industry information.

MARKET AREA OVERVIEW

The subject neighborhood is generally rural residential. South of the subject are the UPRR mainline tracks and immediately south of the tracks is a large industrial and business park called Cheyenne Business Parkway. In this park are the Lowe’s Distribution Center, Magpul manufacturing, and dozens of industrial, office, and retail buildings. The site also backs to the ramp for the new Christensen Road Viaduct which connects the north side of the tracks to the commercial area and I-80 to the south.

PROPERTY TRANSACTION HISTORY

The subject property is owned by the City of Cheyenne.

The city acquired the property from John J. La Fond in April 2020, as recorded in Book 2667 Page 455. The city purchased the property as part of the Christensen Road Overpass Project. The property was not marketed. The city paid $455,000, which was the estimated market value at the time.

The city intends to sell the property via sealed bid auction process which involves less marketing, restricted financing options for buyers, and a limited marketing time. It is possible that the much smaller pool of buyers and other limitations of this process will result in a price less than the market value. However, the city has been public about the desire to sell this property for at least the last year and the client contact said there are several interested and able buyers waiting for the sale process.

LEGAL DESCRIPTION

The county parcel viewer describes the property as Rex Addition, Tract 1. The final plat map was not available yet on the website. Prior to this, the property was described as follows:

ASSESSMENT AND TAXES

The property is owned by the city and would not typically be subject to property taxes. However, the most recent tax statement is shown below. As a rural residence most suited for owner occupancy, the taxes would not materially affect the purchase decision as they are in line with similar properties in the area.

DESCRIPTION OF THE SITE

Location: The subject property is located at the northeast corner of Christensen Road and UPRR. The former Tate Road RoW has been vacated at the south end of the subject. The address is 3425 Christensen Road.

Size and Shape: The subject site totals approximately 5.06 acres in a trapezoid.

Land Type: The subject site is used as a single-family residence.

Improvements: The site is improved with a home and a shop, as well as fencing and other outbuildings.

Access: The primary access to the property is from Christensen Road via a private driveway

Utilities: The site is served by natural gas and electricity. Water and septic is provided by a private well and private septic.

Topography: The site is rolling in topography with the high point toward the southwest end of the property.

Easements: The plat shows removal of some easements while other access easements remain. These easements are on the edges of the parcel and should not have a material negative impact on value.

Flood Zone: The property is not in a flood zone.

Environmental Concerns: The value estimate is predicated on the assumption that there are no environmental concerns on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

Zoning Description: The subject property is in Laramie County and is zoned Agricultural - A2. Selected portions of the zoning are included below for reference.

ZONING MAP

LOCATION MAP

FLOOD MAP

PRELIMINARY VERSION OF THE PLAT

DESCRIPTION OF THE IMPROVEMENTS

The subject house is a frame berm house with brick veneer.

Style: The subject’s main improvement is a house of one story and with four bedrooms and two bathrooms. It is a berm house built in 1995.

Size: Total GBA of the house is 2,912 SF±

Foundation: It appears the house has a poured concrete footer under the load bearing walls with a concrete slab floor.

Roof: The roof cover is composite shingles. The roof has reportedly been replaced within the last couple of years and is reportedly in good condition.

Exterior Walls: The exterior walls of the house are 2” x 6” frame with brick veneer. This is a berm home, so the back wall is buried.

Entrances: The house has pedestrian entrances on the south wall and along the east wall. There is a double overhead door into the south garage and a single overhead door into the north garage area that is used for storage.

Interior Ceilings: The house ceiling is painted 5/8” drywall with a reported R44 insulation and 2” x 6” trusses.

Interior Walls: Most house interior walls are textured and painted gypsum board. The ceiling shows signs of prior water damage and some of the drywall needs repair. The drywall has many nail holes

Floors: The floors include direct glue Berber carpet, and tile with some sheet linoleum in the house. The flooring is in average condition.

HVAC: The house is set up for one or two wood stoves in the family room area, although there is currently none in place. However, the house also has a gas forced warm air furnace.

Electrical: The house has mostly incandescent lighting, with a ceiling mounted fluorescent fixture in the kitchen.

Plumbing: There are two bathrooms in the house - a common bathroom and a master bath. The house has a well for water, and a septic system for sewer.

Shelter: There is a buried concrete pipe running out the back or west side of the house that serves as a shelter.

Condition: The overall condition of the house is slightly below average with normal wear and tear associated for a 27-year-old house that has been vacant for a couple of years.

Area of Interest: The house had squatters living in it until late 2021. The police had to break down 2 doors (which were replaced) to kick the squatters out. There was reportedly little damage caused by the squatters. On our inspection we noted no signs of the squatters.

Functional Obsolescence: The house is functional, with special features to reduce heat and energy consumption and to improve sound insulation.

Super Adequacy: The home includes several items of super adequacy such as large, heavy roof trusses, extra thick foundation, and a bomb/storm shelter. These items have been given minimal additional value, as most buyers would not require or pay extra for them.

Sketch of the House 3425 Christensen, Cheyenne

LARGE SHOP BUILDING

The subject property includes a 2,400 sf metal building. The building measures 60’ x 40’ and totals 2,400 sf. The building has a 14’ overhead door and a pedestrial door, both on the south end of the builiding. The building is a clear span steel building with metal walls nad roof. The building has no heat or insulation.

SMALLER GARAGE SHOP BUILDING

The property includes a wood construction shop building. The builidng measures 20’ x 24’ and it has a pedestrial door on the south side of the building. The building is not insulated or heated and it has no windows.

OTHER OUT BUILDINGS & LOAFING SHEDS

The property includes several outbuildings, some small prefabricated storage buildings, a shipping container and a grain storage hopper, and some 3-sided loafing type sheds, as follows:

SUBJECT PHOTOS

HIGHEST AND BEST USE

The highest and best use analysis is the fulcrum of the appraisal report. The conclusions of the highest and best use analysis determine which methods of valuation are considered appropriate and aid in the selection of comparable market data that can be used to value the property under appraisal. The highest and best use of a property provides the framework for the procedures used to estimate market value.

Highest and best use is defined as:

Highest and Best Use

The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Alternatively, the probable use of land or improved property— specific with respect to the user and timing of the use—that is adequately supported and results in the highest present value. Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed.

(Chicago: Appraisal Institute, 2010).

Market forces create value. It is important to note that the highest and best use of a property is not determined through subjective analysis by a property owner, a developer, or an appraiser. The highest and best use of a particular property is shaped by the competitive forces of the market in which the property is located. Therefore, the highest and best use of a property is an interpretation of the market forces that affect that property. The use that maximizes value represents the highest and best use.

The first portion of this section will analyze the highest and best use of the subject site as vacant. The second part of the analysis will consider the highest and best use of the property as improved.

The four criteria of legal permissibility, physical possibility, financial feasibility, and maximal productivity will be applied to the subject property. The criteria are generally considered in the order they have been listed; for it makes no difference that a use may be financially feasible if it is physically impossible or legally prohibited. The four criteria are discussed in further detail in the following paragraphs.

Highest and Best Use, As Is

Legal Permissibility This criterion determines which uses are legally permissible. Legal uses are controlled by such things as private restrictions, zoning ordinances, building codes, and/or environmental regulations. Private restrictions may prohibit certain uses or specify building requirements such as setbacks, heights, or materials. Zoning ordinances are restrictions on property use imposed by governmental agencies such as cities or counties. Building codes may impose restrictions on construction that result in higher or lower costs than normal for the area. Environmental regulations are typically governmental rules pertaining to clean air, clean water, and/or wetlands.

The subject property is zoned Agricultural. A-2 by Laramie County. This zoning is appropriate to the area and the subject improvements are legal and conforming.

Physical Possibility Physical possibility refers to the physical attributes of the property that would affect its suitability for a particular use. It takes into account such items as size and shape; area; terrain, topography and soils;

accessibility; and/or the risk of natural disasters. Size and shape of the property affects its utility and may make the property particularly suitable or totally unsuitable for a particular use. Analysis of the area considers not only the geographic neighborhood, but also considers the availability and proximity of public utilities. Topography and sub-soil conditions may increase difficulty of development, increase its cost, or even prohibit it. Accessibility refers to the adequacy of access for the proposed development. Risk of natural disasters is typically identified in the form of flood or earthquake zones, which may impose costly restrictions or even prevent building.

With regard to physical possibility, the site is adequately level in topography and supports the existing improvements. There are no known limitations in terms of soil conditions. At 5.06 acres, the site is large with outdoor area for storage and outbuildings. The site supports the existing improvements. The proximity to a major road and the railroad tracks is a negative.

Financial Feasibility and Maximum Productivity Many potential uses are eliminated with the test of legal permissibility and physical possibility. Of those uses that are left to consider, each can be evaluated as to whether or not a proposed use is likely to produce a return equal to or greater than the amount needed to cover operating expenses, financial obligations, capital amortization and satisfy the required rate of return on the investment. The required rate of return on a real estate investment must reflect the risk associated with the project when compared with other investment alternatives. Of those uses found to be legally permissible, physically possible and financially feasible, the maximally productive use is that which produces the highest rate of return on the capital invested.

In my opinion the highest and best use of the subject property is for continued residential use that also takes advantage of the outbuildings.

Conclusion of Highest and Best Use, As Is Having addressed the four criteria of the highest and best use, it is my opinion that the highest and best use of the subject site is continued rural residential use as developed.

SALES COMPARISON APPROACH

In this section of the report we will use the direct sales comparison approach to estimate the value of the subject house in as-is condition. The comparable sales are compared after adjustments for the estimated land value and the estimated value of outbuildings. The underlying principal in this approach is that a person will not pay more for a property than it would cost to buy a similar property.

The subject includes a 2,912+/- square foot wood frame and brick veneer berm home. The property is in an Agriculture A2 zone in Laramie County close to the city. It has the benefit of a steel frame shop and other outbuildings and fencing. The exposure to the overpass and railroad are negative aspects. The interior condition is fair and would likely be renovated by any buyer.

The comparable sales are shown on the map below and described on the following pages.

ADJUSTMENTS

Dollar amount or percentage adjustments supported by paired sales are difficult to support with the limited data available in this market. The subject and each of the comparables are unique, not standard tract homes. The subject is a partial earth-berm house. All have at least some outbuildings, sheds, tree rows, and other site improvements. The information used to support adjustments is presented in this section. Characteristics considered in this analysis are property rights included in the sale, financing, conditions of sale, expenditures after the sale, market conditions, shop/garage, site size, house physical characteristics, and location.

Property Rights Included in Sale:

The subject is owned by the City of Cheyenne. The value of the fee simple estate is being estimated. All of the comparable sales used here involve the fee simple estate. Therefore, no adjustments for property rights included are required.

Financing Terms:

All of the comparable sales had terms which involved cash to the seller or were similar to cash to the seller. I have adjusted downward for any seller-paid closing costs.

Conditions of the Sale:

The two pending sales are both in probate, which slowed down the sale process, but is not reported to have decreased the price. The first comparable is under contract at or near full price.

The second pending sale price is not known but given the longer marketing time it seems likely to be below asking price. I have adjusted down $30,000 (5.5%).

Market Conditions:

The date of value is February 27, 2023. All the comparable sales are either pending in the current market conditions or were closed in February 2023, so no adjustments are needed.

The unusual market conditions of the previous three years warrant further discussion. The pandemic put a temporary pause on transaction volume, but by mid-2020 the…