CTR054967_Contractor_Proposal.pdf
PDF 16 MB Posted
- Attached to
- Master Agreement AZ|CTR054967
- Contract number
- CTR054967
- Issued by
- Arizona
About this file
This document is a comprehensive appraisal report prepared by Headquarters West, Ltd. for the Arizona Department of Transportation (ADOT) regarding a land parcel located in Maricopa County, Arizona. The report was created for Connect 202 Partners and the Federal Highway Administration (FHWA) in connection with the South Mountain Freeway (Loop 202) project. The specific parcel is owned by Southern Cross, LLC and is situated at the northeast corner of 59th Avenue and Van Buren Street in Phoenix, involving approximately 201.62 acres of primarily industrial-zoned land.
The appraisal evaluates the property's market value as of June 22, 2016, utilizing sales comparison, cost, and income approaches. The final market value was determined to be $3,525,000, based on an analysis of comparable land sales with adjustments for factors like buildings, time, irrigation, water access, and flood hazards. The property is currently leased for agricultural purposes to MK Farms, with cropland primarily planted in upland cotton and alfalfa. The appraisal includes provisions for potential crop damages and a partial taking of 17.03 acres for the freeway project, with the remainder of the land anticipated to retain its industrial development potential. The report includes detailed market analysis of Arizona's agricultural and real estate markets, providing context for the valuation.
View the file
Other files
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
Text version
Procurement
PRICE INCREASE PERCENTAGES
Solicitation No: BPM002912 Available online at https://appstate.az.gov/
Rev. 04/2020
The offeror should use the space below to identify the maximum price increase percentage that they may want to request at the time of renewal if ADOT exercises its option per the applicable provisions under any resultant contract(s).
1st Renewal Period ___0________________% Maximum Increase
2nd Renewal Period ___0________________% Maximum Increase
3rd Renewal Period ___0________________% Maximum Increase
4th Renewal Period ___0________________% Maximum Increase
The offeror is cautioned that each renewal period’s increase percentage shall be computed against the ORIGINAL contract price. If information is not provided in the space above, prices shall remain the same as the original contract term. Please see the following example for further clarification.
Example: If the offeror anticipates requesting a 2% increase at each renewal period per Special Terms and Conditions, they should enter 2%, 4%, 6%, and 8% in the attachment. Each percentage increase is calculated using the original contract price.
See example in table below.
Renewal Period
% Maximum Increase from Attachment
Original Contract Price
Maximum Increase Allowed
Maximum Contract Price
1 2% $100.00 $2.00 $102.00
2 4% $100.00 $4.00 $104.00
3 6% $100.00 $6.00 $106.00 4 8% $100.00 $8.00 $108.00
Furthermore, the offeror is advised that the State of Arizona does not automatically grant any increase when renewing the contract. If an increase is requested, documentation of need must be provided at the time of renewal.
https://appstate.az.gov/
Wednesday, November 4, 2020 at 14:30:02 Mountain Standard Time
Subject: Bidders List for Headquarters West, Ltd.
Date: Wednesday, November 4, 2020 at 2:28:58 PM Mountain Standard Time From: ADOT Business Engagement and Compliance Office To: paul@headquarterswest.com CC: ContractorCompliance@azdot.gov
Headquarters West, Ltd., AZUTRACS Number: 15459 has submiVed a Bidder/Proposer list for BPM002912 on 11/04/2020 at 2:28 PM MST (UTC - 07:00).
Headquarters West, Ltd. submiVed a blank bidders/proposers list. This means that they did not list any firms that they reached out to or were contacted by during the prepara^on of this bid/proposal. NOTE: Subbing out work is encouraged, where applicable. Under some circumstances, no subbing opportuni^es are available.
http://utracs.azdot.gov/FirmProfile?bidderId=15459
AN APPRAISAL REPORT
CONSISTING OF THE LEASED FEE AND LEASEHOLD ESTATE
| OF | PARCEL | 7-11695 | |||
| ADOT | PROJECT | 202L | MA | 000 | H5439 |
| SOUTH | MOUNTAIN | FREEWAY | ||||
| SALT | RIVER | – | JCT. | I-10 | PAPAGO | SEGMENT |
| OF | THE | LARGER | PARCEL | BEFORE | |
| AND | AFTER | A | PROPOSED | PARTIAL | TAKING |
| THE | REMAINDER | AFTER |
| INCLUDING | AGRICULTURAL | DAMAGES |
| LOCATED | AT | THE | NORTHEAST | CORNER | OF |
| 59TH | AVENUE | & | VAN | BUREN |
| IN | THE | CITY | OF | PHOENIX |
| MARICOPA | COUNTY, | ARIZONA |
| PREPARED | FOR: | |
| MR. | TODD | BELZNER |
| CONNECT | 202 | PARTNERS |
| 411 | N. | ROOSEVELT |
CHANDLER, AZ 85226
BY
| PAUL | A. | GROSETA |
| HEADQUARTERS | WEST, | LTD. |
| P.O. | BOX | 28847 |
| SCOTTSDALE, | AZ | 85225 |
WWW.HEADQUARTERSWEST.COM
EFFECTIVE DATE OF VALUATION: OCTOBER 14, 2016
DATE OF REPORT: DECEMBER 26, 2016
P.O. Box 28847 Scottsdale, AZ 85225 – office: (928) 634-8110 email: paul@headquarterswest.com
| Established | 1983 | - | Real | Estate | Brokerage, | Appraisals, | Management | & | Consulting |
| Specializing | in | Agricultural, | Rural | & | Transitional | Land | & | Recreational | Properties |
www.headquarterswest.com
HEADQUARTERS WEST, LTD.
Rural Real Estate Brokerage & Appraisals
SCOTTSDALE�TUCSON�SONOITA�COTTONWOOD�ST. JOHNS
December 26, 2016
| Mr. | Todd | Belzner |
| Connect | 202 | Partners |
| 411 | N. | Roosevelt |
| Chandler, | AZ | 85226 |
Re: Appraisal report ADOT parcel 7-11695 South Mountain Loop 202 project
Dear Mr. Belzner:
| Pursuant | to | your | request, | I | have | completed | an | appraisal | report | for | ADOT | parcel | 7-11695 | for | project | 202L | ||||
| MA | 000 | H5439, | South | Mountain | Freeway, | Salt | River | - | Jct. | I-10 | Papago | segment. | The | location | of | the | subject | is | at | |
| the | northeast | corner | of | 59th | Avenue | and | Van | Buren | in | the | City | of | Phoenix, | Maricopa | County, | Arizona. |
| The | date | of | valuation | is | October | 14, | 2016, | which | is | the | date | of | the | appraiser’s | inspection | of | the | subject. | Ms. | |
| Nancy | Madden | of | Tierra | Right | of | Way | met | the | appraiser | at | the | subject | on | the | date | of | inspection. | The | subject’s | |
| owner | Southern | Cross, | LLC | (Mr. | and | Mrs. | Tom | Tait), | was | notified | by | certified | of | the | appraiser’s | engagement | ||||
| and | was | invited | to | accompany | for | the | subject | inspection. | Mr. | Tait | responded | to | the | response | form | indicating | that | he | ||
| would | like | to | attend | the | initial | property | inspection. | He | also | provided | four | off-premise | sign | leases | and | a | farm | lease | ||
| for | the | subject | property. | Mr. | Tait | indicated | “unknown” | as | to | any | sub-surface | site | improvements | and | “no” | to | him | |||
| being | aware | of | any | sub-surface | excavations. | However, | Mr. | Tait | was | not | able | to | meet | with | the | appraiser | on | the | ||
| inspection | nor | provide | any | further | information | on | the | property. |
| There | are | two | of | the | off-premise | signs | involving | one | of | the | leases | that | are | located | within | the | partial | taking | ||
| area. | Another | lease | is | also | within | the | partial | taking | area | but | there | is | no | off-premise | sign | (adjacent | to | 59th | Ave). | |
| There | is | one | small | on | premise | sign | in | the | taking | area | for | a | real | estate | offering | which | has | the | owner’s | telephone |
| number | on | it. | Per | written | instructions | from | the | client, | these | sign | improvements | and | leasehold | estates | are | not | ||||
| valued | in | this | appraisal | report. | The | client | has | engaged | another | appraiser | to | value | the | billboards | and | any | property | |||
| interest | they | have | in | the | subject | along | with | any | cost | to | cure. | |||||||||
| The | subject | is | appraised | on | a | market | value | basis | based | on | the | definitions | contained | in | the | attached | report. | |||
| The | estate | appraised | for | the | subject | is | the | leased | fee | and | leasehold | interests, | subject | to | public | and | private | |||
| easements/encumbrances | as | noted | in | “Schedule | B” | of | the | provided | title | reports; | and | the | four | powers | of | |||||
| government, | (taxation, | eminent | domain, | police | power | and | escheat). | The | intended | use | of | this | report | is | for | |||||
| eminent | domain | purposes | for | a | partial | taking | of | the | subject, | and | estimating | crop | and | irrigation | damages. | The | clients | |||
| in | this | assignment | is | Connect | 202 | Partners | and | the | Arizona | Department | of | Transportation. | The | intended | users | |||||
| include | the | clients | along | with | the | Federal | Highway | Administration | (FHWA). | The | appraisal | of | the | remainder | is | |||||
| made | under | the | hypothetical | condition | that | the | partial | taking | of | the | subject | property | occurred | as | described | in | ||||
| this | report. | The | use | of | this | hypothetical | condition | affected | the | assignment | results. | |||||||||
| The | unit | of | measure | utilized | in | this | report | for | valuing | the | subject | and | the | partial | taking | area | calculations | |||
| were | provided | by | the | client | in | the | Aztec | Engineering | drawing | dated | August | 29, | 2016, | it | is | noted | that | partial | taking | |
| calculations | are | different | in | RPA | Drawing | No. | D-7-T-1014 | dated | October | 2013. | The | subject | has | been | analyzed | under | ||||
| the | three | tests | of | the | Larger | Parcel | Determination | (unity | of | use, | unity | of | title/ownership, | and | contiguity) | and | the | |||
| appraiser | has | determined | that | the | Larger | Parcel | consists | of | one | 201.62 | acre/8,782,661 | s.f. | parcel. | |||||||
| The | hypothetical | condition | of | the | partial | taking | for | the | 202L | South | Mountain | Freeway | would | take | 741,854 | |||||
| s.f. | (17.03 | acres) | of | the | subject, | or | approximately | 9%. | In | the | remainder | approximately | 184.59 | acres/8,040,807 | s.f. | of | ||||
| the | subject | would | entirely | lay | east | of | the | 202L. |
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
| The | subject | is | currently | leased | for | agricultural | uses | to | MK | Farms | (Mr. | Brandon | Brooks). | The | original | lease | ||||
| term | was | for | two | years | from | 1/1/2011 | through | 12/31/2012, | however | under | a | first | amendment | the | term | was | ||||
| extended | to | run | from | 1/1/2013 | through | 12/31/2017. | The | lease | is | based | on | 190 | acres | with | an | annual | rent | of | $125 | |
| per | acre | ($23,750). | The | tenant | pays | any | and | all | assessments | and | other | charges | for | delivery | of | SRP | water | and | the | |
| landlord | pays | the | property | taxes | plus | SRP’s | base | water | assessment. | There | are | cancellation | clauses | should | the | |||||
| property | (or | portions | of | it) | be | either | condemned, | sold | or | developed. | If | any | part | of | the | lease | is | cancelled | without | |
| the | tenant | being | reimbursed, | the | landlord | will | reimburse | the | tenant | for | the | market | value | of | the | growing | crops | as | ||
| of | the | date | of | termination | and/or | any | prepaid | rent. |
| The | lease, | while | it | is | typical | of | agricultural | leases | in | the | neighborhood, | has | little | impact | on | marketability | |||||||
| and | value | of | the | subject. | Some | of | the | sales | cited | in | this | report | were | also | leased | for | agricultural | uses | at | the | time | of | |
| sale, | and | we | observe | no | discernible | impact | on | market | value | by | these | leases. | Many | of | these | sales | have | continued | |||||
| the | interim | agricultural | leases | and | crop | production | after | the | sale. |
| The | subject | is | located | in | the | City | of | Phoenix | and | is | mostly | zoned | A-1 | light | industrial | and | A-2 | industrial, | a |
| small | parcel | is | zoned | R-3A | multiple | family | residence. | Municipal | water | and | sewer | lines | are | to | the | subject. | The | ||
| subject | is | surrounded | by | industrial | and | residential | (both | single | and | multi-family) | development | and | is | one | of | the | |||
| largest | contiguous | vacant | industrial | use | oriented | properties | in | the | Phoenix | Metro | area. |
| It | is | my | opinion, | after | weighing | all | of | the | factors | in | this | report | that | the | market | value | of | the | acquisition, |
| as | of | October | 14, | 2016, | is | as | follows: |
| Leased | fee | acquisition: | $3,724,350 |
| Leasehold | acquisition: | $23,375 |
| The | report | has | been | completed | in | accordance | with | the | Uniform | Standards | of | Professional | Appraisal | ||||
| Practice | Standard | Rule | 2-2(a), | for | an | appraisal | report; | and | with | the | Arizona | Department | of | Transportation | |||
| Right | of | Way | Procedures | Manual, | Chapter | 4, | Appraisal | Standards | and | Specifications; | and | the | Federal | Highway | |||
| Administration | (FHWA) | Uniform | Act. | There | are | 120 | pages | in | this | appraisal | report, | including | the | title | pages | and | |
| addenda. | The | undersigned | is | the | only | individual | responsible | for | the | data | analysis | contained | in | this | report. |
| I | appreciate | this | opportunity | to | be | of | service | to | you. | If | you | should | have | any | questions, | please | do | not |
| hesitate | to | call. |
Respectfully submitted,
| Paul | A. | Groseta | ||
| Certified | General | Real | Estate | Appraiser |
| Arizona | Certificate | No. | 31675 |
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
| Table | of | Contents | ||||
| Summary | of | Factual | Data | ....................................................................................................................................... | 6 | |
| Appraisal | Cover | Sheet | ............................................................................................................................................ | 9 | ||
| Purpose | of | the | Appraisal | ...................................................................................................................................... | 10 | |
| Scope | of | the | Appraisal | .......................................................................................................................................... | 10 | |
| Legal | Description | .................................................................................................................................................. | 12 | |||
| Five | Year | Chain | of | Title | ......................................................................................................................................... | 13 |
| Owner | Contact | ..................................................................................................................................................... | 13 | |||
| Determination | of | the | Larger | Parcel | ...................................................................................................................... | 13 |
| Site | Inspection | ...................................................................................................................................................... | 14 | |||
| Tenant/Lease | Information | .................................................................................................................................... | 14 | |||
| Area | Data | .............................................................................................................................................................. | 15 | |||
| Neighborhood | Location | Map | ................................................................................................................................. | 18 | ||
| Neighborhood | Data | .............................................................................................................................................. | 19 | |||
| Site | Data | ............................................................................................................................................................... | 22 |
| Before | – | Larger | Parcel | Aerial | with | Site | Improvements | .................................................................................... | 24 |
| Zoning | Map | ...................................................................................................................................................... | 25 | ||||||
| ADOT | Map | ........................................................................................................................................................ | 26 | ||||||
| Remainder/After | – | Larger | Parcel | Aerial | with | Site | Improvements | .................................................................... | 27 |
| Hazardous | Materials | ............................................................................................................................................ | 29 | |||
| Improvement | Data | ............................................................................................................................................... | 29 | |||
| Division | of | Realty | and | Personalty | ......................................................................................................................... | 29 |
| Zoning | ................................................................................................................................................................... | 30 | ||||
| Restrictions | and | Easements | ................................................................................................................................. | 30 | ||
| Taxes | and | Assessments | ........................................................................................................................................ | 31 | ||
| Signs | ..................................................................................................................................................................... | 31 | ||||
| Highest | and | Best | Use | ............................................................................................................................................ | 33 | |
| Valuation | .............................................................................................................................................................. | 35 | ||||
| Sale | Comparison | Approach | .................................................................................................................................. | 37 |
| Comparable | Sales | Data | .................................................................................................................................... | 37 | |
| Comparable | Sale | Location | Map | ........................................................................................................................ | 40 |
| Comparable | Sale | Summary | Chart | ..................................................................................................................... | 41 |
| Sale | Comparison | Analysis | ................................................................................................................................. | 41 | |
| Sale | Adjustment | Chart | ...................................................................................................................................... | 46 |
| Project | Influence | .................................................................................................................................................. | 47 | |||||
| Valuation | – | Part | to | be | Acquired | ........................................................................................................................... | 47 | |
| Underlying | Fee | ..................................................................................................................................................... | 48 | |||||
| Signs | ..................................................................................................................................................................... | 48 | ||||||
| Valuation | – | Remainder | as | Part | of | Whole | ............................................................................................................. | 48 |
| Valuation | – | Remainder | Parcel | After | ..................................................................................................................... | 48 | ||
| Severance | Damages/Special | Benefits | .................................................................................................................. | 49 | ||||
| Non-Compensable | Damages | ................................................................................................................................ | 50 | |||||
| Cost | to | Cure | .......................................................................................................................................................... | 50 | ||||
| Uneconomic | Remainders | and | Disposition | of | Excess | Property | ............................................................................. | 51 |
| Final | Reconciliation | and | Justification | ................................................................................................................... | 51 | |||
| Lessee/Lessor | Interest | .......................................................................................................................................... | 52 | |||||
| Auditing | Breakdown | ............................................................................................................................................. | 60 | |||||
| ADOT | Certificate | of | Appraiser | .............................................................................................................................. | 61 | |||
| USPAP | Appraisal | Certificate | ................................................................................................................................. | 62 | ||||
| ADDENDUM | I | ........................................................................................................................................................ | 63 |
| Statement | of | Assumptions | and | Limiting | Conditions | ........................................................................................ | 63 |
| ADDENDUM | II | ....................................................................................................................................................... | 68 |
Appraiser’s Qualifications
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
| ADDENDUM | III | ...................................................................................................................................................... | 70 | ||||
| Title | Report | for | ADOT | Parcel | 7-11695 | .............................................................................................................. | 70 |
| ADDENDUM | IV | ..................................................................................................................................................... | 77 | |
| Additional | Subject | Maps | .................................................................................................................................. | 77 |
| Flood | map | ............................................................................................................................................................ | 78 | |
| Water | right | map | ................................................................................................................................................... | 79 |
| ADDENDUM | V | ...................................................................................................................................................... | 80 |
| Subject | Photos | .................................................................................................................................................. | 80 |
| ADDENDUM | VI | ..................................................................................................................................................... | 85 |
| Market | Data | – | Comparable | Sales | ..................................................................................................................... | 85 |
| ADDENDUM | VII | .................................................................................................................................................... | 96 |
| Subject | Farm | Lease | ........................................................................................................................................... | 96 |
| ADDENDUM | VIII | ................................................................................................................................................. | 103 |
CoStar Mid-Year 2016 Industrial Report
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
Summary of Factual Data
Ownership: Per the title report, title to the property is currently vested in Southern
| Cross, | LLC. | ||||||||||||||
| The | subject | is | leased | for | agricultural | uses | to | MK | Farms | (Mr. | Brandon | Brooks) | |||
| through | 12/31/2017. | The | farm | lease | is | based | on | 190 | acres | with | an | annual | |||
| rent | of | $125 | per | acre. | |||||||||||
| The | subject | also | has | four | off-premise | sign | leases | which | are | not | being | valued | |||
| by | the | appraiser | in | this | assignment. | One | lease | is | to | Outfront | Media | and | is | a | |
| year | to | year | lease | with | an | annual | rent | of | $1,000 | – | this | lease | has | two | signs |
| both | of | which | are | in | the | taking. | The | three | other | leases | are | to | BKG | Outdoor | |
| and | run | through | 2026 | at | varying | rents | – | one | of | these | leases | is | in | the | partial |
| taking | however | there | is | no | physical | sign | (off | of | 59th | Ave) | as | of | the | date | of |
value.
| There | have | not | been | any | arm’s | length | transactions | of | the | subject | in | the |
| previous | five | years, | the | subject | is | not | reported | to | be | listed | for | sale |
| (although | the | owner | has | an | “available” | sign | on | the | property), | under | ||
| contract | or | subleased. |
Estate Appraised: Leased fee and leasehold estates, subject to easements/encumbrances
| and | governmental | powers, | which | is | considered | equivalent | to | the | Fee |
| Simple | Estate |
Purpose: To provide an opinion of current market value of the subject before and after a partial taking, and to determine irrigation improvement and crop damages.
Intended Use: Eminent domain purposes for a partial taking of the subject, and estimating crop and irrigation damages and any cost to cure.
Intended Users: Connect 202 Partners, the Arizona Department of Transportation, and the
Federal Highway Administration (FHWA)
| Acreage: | Before: | 201.62 | acres/8,782,661 | s.f. | (193.08 | cropland | acres) | |||
| Partial | Taking: | 17.03 | acres/741,854 | s.f. | (15.6 | cropland | acres) | |||
| Remainder: | 184.59 | acres/8,040,807 | s.f. | (177.48 | cropland | acres) |
Date of Valuation “As Is”: October 14, 2016
Date of Inspection: October 14, 2016
Location: Northeast corner of 59th Ave & Van Buren in the City of Phoenix, Maricopa
County, Arizona.
Legal Description: See the full legal in the Title Report in the addenda, the legal description is
| summarized | as | a | portion | of | Section | 5, | Township | 1 | North, | Range | 2 | East, |
| G&SRB&M, | Maricopa | County, | AZ. |
| Assessor’s | Tax | Parcel | #: | 103-28-001G, | 103-28-001H, | 103-28-002A, | 103-28-002B, | 103-28-003F, | 103- |
| 29-002F, | 103-29-002E, | 103-29-002C |
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
| Access | & | Frontage: | Before: | ¼ | mile | on | 59th | Avenue | (mostly | restricted | access), | ¾ | mile | on | Van |
| Buren | Street | and | ½ | mile | on | Roosevelt | Street. |
| Remainder: | ¼ | mile | on | the | east | side | of | the | 202L | South | Mountain | with | a | |
| frontage | road | (entirely | with | restricted | access); | 6/10th | mile | on | Van | Buren | ||||
| Street | (small | portion | restricted | access) | and | ½ | mile | on | Roosevelt | Street. |
Zoning: The subject is in the City of Phoenix with 77.78 acres zoned A-1 Light
| Industrial, | 112.72 | acres | are | zoned | A-2 | Industrial | and | 1.23 | acres | is | zoned | R-3A |
| Multi-Family | Residential. |
General Plan: City of Phoenix Industrial (General Plan Map dated 9/23/14)
| Groundwater | Active | ||||||
| Management | Area: | Within | the | Phoenix | A.M.A. |
Water Rights: Per ADWR, there are four Irrigated Grandfathered Rights on the subject
| (58-113401.0001, | 58-113402.0001, | 58-113403.0002, | 58-130297.0001) | |||||||||||
| totaling | 187.93 | irrigation | acres, | 181.0 | water | duty | acres | and | a | 2016 | total | |||
| allotment | of | 1,236.23 | acre | feet. | The | per | acre | water | duty | of | 6.83 | acre | feet | |
| is | sufficient | for | any | crop | typically | grown | in | the | area. |
Water Sources: SRP provides irrigation water to the subject. The subject has access to
| Phoenix | municipal | water. | For | either | irrigation | or | development | uses | in | both | |
| the | before | and | remainder | the | subject | is | considered | to | have | an | adequate |
| supply | of | water. |
Utilities: Utilities available to the subject in both the before and after include electric, telephone, natural gas, cable/television, municipal water and sewer.
Soils: Soils on the subject consist of 100% Class 3 soils.
Flood Hazards: Per FEMA FIRM Flood Map 04013C Panel 2185L with an effective date of
| October | 16, | 2013, | 100% | of | the | subject | is | located | in | Zone | X | (shaded), | areas | |
| of | 0.2% | annual | chance | flood; | areas | of | 1% | annual | chance | flood | with | average | ||
| depths | of | less | than | 1 | foot | or | with | drainage | areas | less | than | 1 | square | mile; |
| and | areas | protected | by | levees | from | 1% | annual | chance | flood. | The | Maricopa | |||
| County | floodplain | viewer | shows | the | subject | as | not | being | within | the | 100- | |||
| year | floodplain. |
Seismic Hazard Zone: Zone 1, the lowest risk seismic zone on an International Building Code
| Scale | of | 1 | to | 4. | Earthquake | hazard | insurance | is | not | required | on | building |
| improvements | in | this | zone. |
Building Improvements: There are no building improvements on the subject.
Site Improvements: In the before there is approximately 6,420’ of concrete irrigation ditches
| on | the | subject | and | 1,260’ | of | dirt | drainage | ditch | along | with | various | pipes | in | |
| areas, | these | improvements | are | in | poor | to | average | condition. | The | subject | ||||
| has | a | total | of | 193.08 | FSA | cropland | acres | in | five | farm | fields, | currently | ||
| upland | cotton | is | planted | on | two | of | the | fields | and | a | recently | planted | alfalfa | |
| crop | is | planted | on | the | other | three. | The | crops | are | owned | by | the | tenant, | the |
| onsite | irrigation | infrastructure | is | owned | by | the | landlord/leased | fee | estate. |
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
| SRP | laterals, | turnouts, | drains | and | offsite | delivery | ditches/turnouts | are | not |
| owned | by | the | subject. |
| The | partial | take | for | the | 202L | South | Mountain | is | estimated | to | take | |
| approximately | 30’ | of | concrete | irrigation | ditch, | 1,260’ | of | dirt | drainage | ditch, | ||
| 30’ | of | 15” | concrete | pipe | with | three | headwall | structures, | two | other | ||
| headwall | structures | and | 15.5 | acres | of | upland | cotton | from | one | field | and | 0.1 |
| acres | of | newly | planted | alfalfa | from | another | field. |
| The | remainder | is | anticipated | to | have | 174.7 | gross | acres | east | of | the | 202L, | it | |
| will | still | have | five | farm | fields | although | the | cropland | acreage | is | estimated | to | be | |
| 177.58 | acres. | No | new | concrete | irrigation | ditches | are | considered | necessary | |||||
| and | the | subject | will | irrigate | the | cropland | in | the | same | manner | as | in | the | before. |
| Although | some | new | drainage | improvements | are | noted | as | a | cost | to | cure. |
Signs: There are two off-premise signs involving one of the leases that are located
| within | the | partial | taking | area. | Another | lease | is | also | within | the | partial | taking | |||
| area | but | there | is | no | off-premise | sign | (adjacent | to | 59th | Ave) | physically | there. | |||
| There | is | one | small | on | premise | sign | in | the | taking | area | for | a | real | estate | offering |
| which | has | the | owner’s | telephone | number | on. | Per | written | instructions | from | |||||
| the | client, | these | sign | improvements | and | leasehold | estates | are | not | valued | in | ||||
| this | appraisal | report. |
Airport Noise Contours: None, the subject is located outside of any Traffic Pattern Airspace for
Phoenix Sky Harbor International Airport.
Environmental Hazards: None noted on the appraiser’s inspection.
Natural Wetlands: No natural wetlands are observed on the parcels.
Highest and Best Use: Leased fee estate: a real estate investment, anticipating industrial
| development | at | some | time | in | the | future. |
| Leasehold | estate: | irrigated | cropland |
Hypothetical Condition: No hypothetical condition in the before. For the remainder, a hypothetical condition for a partial taking of the subject for the 202L South Mountain Freeway.
Acquisition Valuation: Leased Fee Estate:
| Sale | Approach: | $3,724,350 | |
| Cost | Approach: | Not | Applicable |
Income Approach: Not Applicable
Leasehold Estate: $23,375
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
Appraisal Cover Sheet
TYPE OF APPRAISAL: Appraisal Report
PARCEL NUMBER: 7-11695
| OWNER | 7-11695: | Southern | Cross, | L.L.C. | |
| 6807 | N. | Pepper | Tree | Ln. | |
| Paradise | Valley, | Arizona | 85253 |
PROPERTY LOCATION: Generally located at the northeast corner of 59th Avenue & Van Buren
Street in the City of Phoenix, Maricopa County, Arizona.
PROJECT NUMBER: 202L MA 000 H5439
HIGHWAY: South Mountain Freeway Loop 202
SECTION: Salt River - Jct. I-10 Papago Segment
DATE OF REPORT: December 26, 2016
DATE OF VALUE: October 14, 2016
APPRAISER: Paul A. Groseta, Arizona Certified General Real Estate Appraiser #31675
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
| Purpose | of | the | Appraisal | |||||||||||
| Headquarters | West, | Ltd. | was | authorized | by | Mr. | Todd | Belzner | of | Connect | 202 | Partners | to | appraise |
| ADOT | parcel | 7-11695 | for | project | 202L | MA | 000 | H5439, | South | Mountain | Freeway | Loop | 202, | Salt | River | - | Jct. | I-10 | |||
| Papago | segment. | The | general | location | of | the | subject | is | at | the | northeast | corner | of | 59th | Avenue | and | Van | Buren | |||
| Street | in | the | City | of | Phoenix, | Maricopa | County, | Arizona. | |||||||||||||
| The | purpose | of | this | appraisal | is | to | determine | the | market | value | of | the | subject | as | of | the | effective | date | |||
| of | this | appraisal. | The | intended | use | of | this | report | is | for | eminent | domain | purposes | for | a | partial | taking | of | the | subject | |
| leased | fee | and | leasehold | interests, | and | estimating | crop | and | irrigation | damages. | The | clients | in | this | assignment | are | |||||
| Connect | 202 | Partners | and | the | Arizona | Department | of | Transportation. | The | intended | users | include | the | clients | along | ||||||
| with | the | Federal | Highway | Administration | (FHWA). |
| The | estate | appraised | for | the | subject | is | the | leased | fee | and | leasehold | interests, | subject | to | public | and | ||
| private | easements/encumbrances | as | noted | in | “Schedule | B” | of | the | provided | title | reports; | and | the | four | powers | of | ||
| government, | (taxation, | eminent | domain, | police | power | and | escheat). | The | farm | lease | on | the | subject | has | little | if | ||
| any | impact | on | the | marketability | of | the | subject. | The | leased | fee | estate | is | considered | to | be | directly | comparable | |
| to | a | fee | simple | estate. |
| The | term | “Market | Value” | is | required | to | be | utilized | and | referenced | as | defined | by | Arizona | Revised |
| Statute. | Pursuant | to | Arizona | Revised | Statute | 28-7091: |
| ”...Market | Value’ | means | the | most | probable | price | estimated | in | terms | of | cash | in | United | States | dollars | or |
| comparable | market | financial | arrangements | that | the | property | would | bring | if | exposed | for | sale | in | the | ||
| open | market, | with | reasonable | time | allowed | in | which | to | find | a | purchaser, | buying | with | knowledge | of | all |
| of | the | uses | and | purposes | to | which | it | was | adapted | and | for | which | it | was | capable.” | |
| Please | see | the | ADOT | Certificate | of | Appraiser | for | underlying | assumptions | and | limiting | conditions |
| pertaining | to | this | report, | in | addition | see | further | Statement | of | Assumptions | and | Limiting | Conditions | and |
| definitions | in | the | addenda. |
| Scope | of | the | Appraisal | ||||||||||||||||
| The | scope | of | this | appraisal | report | is | to | accurately | collect, | confirm, | report | and | analyze | sufficient | data | ||||
| so | that | the | reader | may | logically | reach | the | same | conclusions | as | the | appraiser, | of | the | market | value | of | the | |
| subject | property. | As | part | of | the | appraisal, | the | appraiser | has | examined | the | subject’s | area | and | neighborhood | ||||
| data, | conducted | a | physical | inspection | of | the | subject, | and | a | general | inspection | of | the | surrounding | |||||
| neighborhood | and | market | area. | ||||||||||||||||
| This | appraisal | report | addresses | ADOT | parcel | 7-11695 | for | project | 202L | MA | 000 | H5439, | South | Mountain | |||||
| Freeway | Loop | 202, | Salt | River | - | Jct. | I-10 | Papago | segment. | The | general | location | of | the | subject | is | at | the | |
| northeast | corner | of | 59th | Avenue | and | Van | Buren | Street | in | the | City | of | Phoenix, | Maricopa | County, | Arizona. | The | ||
| proposed | SR | 202L | South | Mountain | Freeway | is | planned | to | take | portions | of | the | west | end | of | the | subject | in | a |
| north | to | south | manner, | as | noted | on | the | Aztec | Engineering | drawing | of | Parcel | #7-11695 | dated | 08/29/16. | It | is | ||
| also | noted | that | Ritoch-Powell | & | Associates | Drawing | No. | D-7-T-1014 | dated | October | 2013 | (parcel | 7-11659 | is | noted | ||||
| on | Sheets | P-11 | and | P-12 | with | measurements | noted | on | Sheet | ORS-4) | was | provided | to | the | appraiser | however | the | ||
| partial | taking | measurement | is | different | than | the | Aztec | Engineering | drawing. |
| The | appraiser | also | conducted | a | sales | search | for | the | subject’s | neighborhood | and | market | area, | as | well | ||
| as | analyzed | and | reported | price | trends | for | the | Arizona | market | area. | Land | sales | data | sources | include | Arizona | |
| Department | of | Revenue | Affidavits | of | Property | Value; | CoStar-Comps | on-line | data | base; | RealQuest | on | line | data | |||
| base; | Arizona | real | estate | brokers | and | salespersons | active | in | agricultural | and | investment | properties, | and | buyers | |||
| and | sellers | of | land. |
| Sales | are | confirmed | with | the | buyer, | seller | or | brokers | who | are | parties | to | the | transaction, | or | a | lender | or |
| other | parties | involved | in | the | transaction. | First | party | confirmation | is | sought | for | all | cases, | but | secondary | |||
| confirmation | sources | are | occasionally | the | only | sources | available. |
The following broker/agent/appraiser/developer/farmer market discussions have been conducted with:
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
| Mr. | Will | Strong, | Broker | Mr. | Tim | Chester, | Managing | Director | ||
| Cushman | & | Wakefield, | Phoenix | Wentworth | Property | Company, | LLC, | Phoenix | ||
| 602-224-4467 | 602-296-1096 |
| Mr. | Pat | Feeney, | Broker | Mr. | Jan | Sell, | MAI, | Appraiser | ||
| CBRE, | Phoenix | Sell | & | Associates, | Tempe | |||||
| 602-735-5530 | 480-345-4500 |
| Mr. | Steve | Pendleton, | Appraiser/Broker | Mr. | Charles | Havranek, | Appraiser/Broker | |
| Southwestern | Ag | Services, | Mesa | Southwest | Land | Associates, | Glendale | |
| 480-539-2671 | 623-877-5180 |
| Mr. | Ted | Knoell, | Appraiser | Mr. | Tim | Morrison, | MAI, | Appraiser | ||
| Strategic | Valuation | Group, | Phoenix | Strategic | Valuation | Group, | Phoenix | |||
| 602-761-4250 | 602-265-1416 |
| Mr. | Tony | Lydon, | Broker | Mr. | Matt | Hobaica, | Broker | |
| Jones | Lang | LaSalle, | Phoenix | Lee | & | Associates, | Phoenix | |
| 602-282-6268 | 602-956-7777 |
| Mr. | Steve | Brown, | Sales | Manager | Mr. | Cooper | Fratt, | Broker | |
| Sun | State | Builders, | Tempe | CBRE, | Phoenix | ||||
| 480-894-1286 | 602-735-5037 |
| These | industry | discussions | concern | land | demand | and | market | trends, | rental | and | land | sales | activity | for | |
| the | neighborhood | area | and | general | market | conditions. | Sales | are | inspected | visually | by | the | appraiser, | and | |
| include | copies | of | maps | and | photos | for | the | sales | cited. | ||||||
| Employment, | population | and | economic | trends | were | analyzed | using | data | provided | by | (but | not | limited | ||
| to) | the | Federal | Reserve | Beige | Book; | US | Census | Bureau/Bureau | of | Labor | Statistics; | Arizona | Office | of | |
| Employment | and | Population | Statistics; | Arizona | Department | of | Commerce; | USDA | – | National | Agricultural | ||||
| Statistics | Service; | The | Arizona | Geological | Survey; | Arizona | State | University/WP | Carey | School | of | Business, | Center | ||
| for | Real | Estate | Theory | and | Practice; | the | University | of | Arizona; | Phoenix | Business | Journal; | Arizona | Republic; | |
| Elliott | D. | Pollock | and | Company. |
| For | title/ownership | and | assessor | information | see | further | in | property | description | and | title | report. | |||
| For | the | valuation | of | the | subject | leased | fee | estate | all | three | approaches | to | valuation | have | been |
| considered. | The | cost | approach | was | considered | but | not | included, | due | to | fact | that | the | subject | lacks | any | ||||
| building | improvements, | and | the | only | site | improvements | consist | of | fully | depreciated | concrete | irrigation | ||||||||
| ditches, | thus | the | cost | approach | would | result | in | a | direct | duplication | of | the | sales | comparison | approach. | The | ||||
| income | approach | was | considered, | as | the | subject | irrigated | cropland | is | leased | as | well | as | four | billboard | leases. | ||||
| The | gross | income | for | these | five | leases | in | 2016 | is | $49,890. | The | net | income | potential | of | the | subject | in | relation | |
| to | the | current | raw | land | values | in | the | area | would | have | capitalization | rates | that | are | insignificant | and | unreliable. | |||
| Plus, | agricultural | uses | in | the | area | are | only | interim | uses, | thus | an | analysis | of | the | interim | income | stream | in | the | |
| income | approach | is | an | inconsistent | application | of | data | and | analysis. | The | sales | comparison | approach | is | the | |||||
| only | suitable | approach | that | will | be | utilized | in | the | appraisal | analysis | for | the | subject | leased | fee | estate. |
| For | the | subject | leasehold | estate | the | appraiser | has | analyzed | the | factors | of | the | economic | benefits | ||||||
| created | by | the | farm | lease. | The | four | off-premise | sign | leases | are | not | valued | in | this | appraisal | per | instructions | |||
| from | the | client. | It | cannot | be | assumed | simply | because | there | is | a | lease | that | the | estates | created | by | the | lease | |
| each | have | a | market | value. | The | irrigated | cropland | use | of | the | subject | leasehold | is | only | an | interim | use. | While | ||
| this | interim | use | does | have | benefits | to | the | landlord | by | way | of | rent | and | agricultural | tax | status | (a | reduced | ||
| property | tax | rate | rather | than | just | vacant | land) | and | to | the | tenant | by | way | of | revenue | from | crop | production; | the | |
| marketability | and | subsequent | market | value | of | the | leasehold | estate | is | considered | to | be | nominal | if | any | at | all. | |||
| The | three | approaches | to | value | (cost, | sales | comparison, | income) | are | considered | not | adequate | or | reliable | to | |||||
| determine | the | market | value | of | the | subject | leasehold | estate. | The | lease | does | not | impact | the | market | value | of |
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
| the | leased | fee | estate | and | as | stated | in | the | lease | with | cancellation | clauses | for | eminent | domain, | sale | or | ||
| development, | it | is | just | a | matter | of | time | before | the | site | is | developed. | Therefore, | it | is | my | opinion | that | the |
| leasehold | estate | does | not | have | any | significant | market | value | other | than | the | reimbursement | of | the | crops | as | of | ||
| the | date | of | value. |
| This | is | an | Appraisal | Report | in | compliance | with | the | reporting | requirements | as | set | forth | under | Standard | |
| Rule | 2-2(a) | of | U.S.P.A.P. | This | report | presents | substantial | discussion | of | the | data, | reasoning | and | analyses | that | |
| were | utilized | by | the | appraiser. |
| The | underlying | assumptions | and | limiting | conditions | pertaining | to | this | report | are | contained | in | the | |||||
| Certificate | of | Appraiser | immediately | following | the | Auditing | Breakdown | section | of | this | report. | These | ||||||
| assumptions | and | limiting | conditions | are | an | integral | part | of | the | report | and | are | only | placed | at | the | end | to |
| facilitate | reading | of | the | report, | not | to | minimize | their | importance. | Also, | please | see | further | Statement | of | |||
| Assumptions | and | Limiting | Conditions | and | definitions | in | the | addenda. |
| The | Uniform | Standards | of | Professional | Appraisal | Practice | state | that | the | appraiser | should | estimate | the | ||||||
| anticipated | Exposure | time | linked | to | the | value | estimate. | Exposure | time | is | defined | as | the | estimated | length | of | |||
| time | the | property | interest | being | appraised | would | have | been | offered | on | the | market | prior | to | the | hypothetical | |||
| consummation | of | a | sale | at | market | value | on | the | effective | date | of | the | appraisal. | Exposure | time | is | always | ||
| presumed | to | precede | the | effective | date | of | the | appraisal. | Exposure | time | is | different | for | various | types | of | real | ||
| estate | and | under | various | market | conditions. | The | estimate | of | the | exposure | time | is | an | integral | part | of | the | ||
| analyses | conducted | during | the | appraisal | process, | and | is | based | on | data | gathered | through | sales | verification | as | ||||
| well | as | interviews | with | market | participants. | The | reasonable | exposure | period | in | which | it | is | anticipated | that | the | |||
| subject | property | will | receive | an | offer | is | nine | to | twelve | months, | if | the | property | is | priced | in | accordance | with | the |
| market | conditions | observed | as | of | the | date | of | value. |
| The | marketing | time | is | defined | as | an | estimate | of | the | amount | of | time | that | it | might | take | to | sell | the | ||
| identified | property | interest | at | the | estimated | market | value | level | during | the | period | immediately | after | the | |||||||
| effective | date | of | the | appraisal. | An | estimate | of | marketing | time | is | not | intended | to | be | a | prediction | of | a | date | of | |
| sale. | It | is | often | inappropriate | to | assume | that | the | value | as | of | the | effective | date | of | an | appraisal | remains | stable | ||
| during | a | marketing | period. | The | estimate | of | the | marketing | time | is | an | integral | part | of | the | analyses | conducted | ||||
| during | the | appraisal | process, | and | is | based | on | data | gathered | through | sales | verification, | interviews | with | market | ||||||
| participants, | and | anticipated | changes | in | market | conditions. | The | reasonable | marketing | period | anticipated | is | |||||||||
| nine | to | twelve | months, | if | the | property | is | priced | in | accordance | with | the | market | conditions | observed | as | of | the | |||
| date | of | value. | The | terms | of | sale | are | expected | to | be | cash | payment | in | full | at | close | of | escrow. | |||
| The | estimated | marketing | and | exposure | periods | are | based | on | the | Comparable | Sales | cited | in | this | |||||||
| report, | the | majority | of | which | encompassed | a | 30 | day | to | 18-month | marketing | period, | as | well | as | conversations | |||||
| with | brokers | competent | in | the | brokerage | of | this | property | type. | ||||||||||||
| This | nine | to | twelve | month | marketing | period | anticipates | that | the | marketing | will | be | either | directly | |||||||
| between | knowledgeable | parties, | or | professional | exposure | and | marketing | of | the | property | by | brokers | |||||||||
| competent | in | the | brokerage | of | this | property | type | to | potential | buyers, | at | a | price | or | value | reasonably | supported | ||||
| by | current | market | sales | activity. | |||||||||||||||||
| Since | current | and | recent | prior | market | sales | activity | in | the | subject | vicinity | indicates | that | a | nine | to | |||||
| twelve | month | marketing | period | is | reasonable | and | typical | for | this | type | of | property | under | present | market | ||||||
| conditions | and | pricing, | we | do | not | see | any | adverse | impact | that | this | marketing | period | will | have | on | the | subject’s | |||
| Market | Value. | Those | sales | that | took | longer | than | nine | to | twelve | months | to | sell | were | overpriced | for | that | ||||
| particular | time | period. |
| The | appraisal | of | the | remainder | is | made | under | the | hypothetical | condition | that | the | partial | taking | of | the |
| subject | property | occurred | as | described | in | this | report. | The | use | of | this | hypothetical | condition | affected | the | |
| assignment | results. |
| Legal | Description | |||||||||||||||||
| The | complete | legal | description | of | the | subject | is | lengthy | and | to | avoid | repetition | please | see | the | legal | ||
| description | noted | in | the | title | report | in | the | addenda. | The | legal | description | is | summarized | as | a | portion | of | |
| Section | 5, | Township | 1 | North, | Range | 2 | East, | Gila | and | Salt | River | Base | and | Meridian, | Maricopa | County, | Arizona. |
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
| Five | Year | Chain | of | Title | |||||||||||||||||
| A | review | of | the | five-year | chain | of | title | for | the | subject, | as | noted | in | the | title | report | in | the | addenda, | did | |
| not | reveal | any | arm’s | length | transactions | of | the | subject. | Past | uses | of | the | subject | property | are | the | historic | ||||
| irrigated | cropland | uses | as | seen | in | the | area | for | the | last | century. | The | present | owner | has | held | title | to | the | entire | |
| subject | since | at | least | 2006. |
| Owner | Contact | |||||||||||||||||
| The | appraiser | made | initial | owner | contact | by | certified | correspondence | which | included | a | Notice | of | |||||
| Inspection | dated | September | 28, | 2016, | the | appropriate | color-coded | right | of | way | plans | sheet(s), | a | Field | ||||
| Inspection | Response | form | and | a | self-addressed, | postage-paid | return | envelope. | The | initial | correspondence | |||||||
| was | addressed | and | mailed | to: | Southern | Cross, | LLC | – | Mr. | and | Mrs. | Tom | and | Patricia | Tait, | managers, | 6807 | N. |
| Pepper | Tree | Lane, | Paradise | Valley, | Arizona | 85253. |
| The | Mr. | Tom | Tait | called | the | appraiser | on | October | 3, | 2016 | and | discussed | the | subject | property | briefly. | ||
| On | October | 5, | 2016 | Mr. | Tait’s | assistant | emailed | the | completed | inspection | response | form | along | with | the | farm | ||
| lease | and | off-premise | sign | leases. | Mr. | Tait | indicated | that | he | would | like | to | attend | the | initial | property | inspection, | |
| however | he | was | unable | to | make | the | inspection. | Mr. | Tait | indicated | “unknown” | as | to | any | sub-surface | site | ||
| improvements | and | “no” | to | him | being | aware | of | any | sub-surface | excavations. | Mr. | Tate’s | telephone | number | is | |||
| 602-279-3999 | and | his | is | tom@taitdevelopment.com | Mr. | Tate | was | not | willing | to | provide | any | further | |||||
| information | on | the | subject | such | as | any | preliminary | site | plans | or | confirming | if | the | subject | is | for | sale | (although |
| there | is | an | “available” | sign | on | the | subject) | or | under | contract. |
| Mr. | Tate | confirmed | that | the | subject | is | leased | to | Mr. | Brandon | Brooks | of | MK | Farms. | Mr. | Brooks | ||
| telephone | number | is | 602-697-3299 | and | his | is | mbbrooks79@gmail.com. | Mr. | Brooks | was | not | able | to | |||||
| meet | the | appraiser | at | the | subject | on | the | date | of | inspection, | however | the | appraiser | did | speak | to | Mr. | Brooks |
| over | the | telephone | regarding | the | crops. |
| No | further | changes | in | title | other | than | those | reflected | in | the | title | report | were | discovered | by | the |
| appraiser | in | owner | interviews | or | in | public | records. |
| Determination | of | the | Larger | Parcel | |||||||||||
| The | “larger | parcel” | concept | is | an | analytical | premise | unique | to | the | field | of | eminent | domain | valuation |
| and | is | of | paramount | importance | in | valuing | partial | acquisitions. | The | appraiser | cannot | determine | the | Highest | ||||||||
| and | Best | Use | of | a | property | before | a | conclusion | as | to | the | larger | parcel | is | reached. | The | larger | parcel | may | be | all | |
| of | one | parcel, | part | of | a | parcel, | or | several | parcels | combined, | depending | on | three | tests: | unity | of | use, | unity | of | |||
| title/ownership | and | contiguity. | The | subject | will | be | analyzed | under | these | three | tests. |
| Unity | of | use | is | considered | the | most | predominant | test. | This | does | not | necessarily | mean | the | existence | |||||||
| or | non-existence | of | current | unity | of | use, | but | rather | unity | of | Highest | and | Best | Use. | Thus, | even | though | a | parcel | |||
| may | be | under | one | ownership | and | contiguous, | there | may | be | more | than | one | existing | or | economic | use | of | the | ||||
| site. | In | this | case, | there | may | be | more | than | one | “larger | parcel” | to | be | considered. | The | subject | has | unity | of | use | ||
| in | the | before | and | remainder | as | vacant | irrigated | cropland. | While | a | 1.23 | acre | parcel | of | the | subject | is | currently | ||||
| zoned | for | multi-family | residential, | the | majority | of | the | subject | is | zoned | for | industrial | and | the | entire | subject | is | |||||
| noted | as | industrial | in | Phoenix’s | General | Plan. | The | subject | is | considered | to | have | unity | of | use. |
| For | unity | of | title/ownership, | acquisition | of | parts | of | a | whole | at | different | times | does | not | destroy | unit | of | |||||
| title, | nor, | in | some | cases, | does | the | fact | that | one | parcel | is | owned | by | an | individual | and | the | second | is | owned | by | a |
| corporation | under | the | control | of | that | individual. | The | entire | subject | is | owned | by | the | same | entity | in | Southern | |||||
| Cross, | LLC | with | Mr. | and | Mrs. | Tom | and | Patricia | Tait | as | its | managers. | The | subject | is | considered | to | have | unity | of |
title/ownership.
| For | the | test | of | contiguity, | although | typically | a | prime | factor | in | determination | of | the | larger | parcel, | ||||||
| contiguity | is | also | not | always | mandatory. | For | example, | a | site | located | several | parcels | away, | which | provides | ||||||
| necessary | overflow | parking | may | be | considered | as | part | of | a | larger | parcel. | Another | example | would | be | the | |||||
| taking | of | a | processing | plant | for | items | produced | on | a | non-contiguous | site. | A | 16.5’ | wide | strip | of | land | owned | by | ||
| the | United | States | of | America | physically | breaks | the | contiguity | of | the | subject. | However, | this | strip | of | land | was | ||||
| quit | claim | deeded | in | 1956 | to | the | USA | with | the | legal | description | noting | “a | right | of | way | easement | for | roadway | ||
| purposes”. | It | appears | there | is | a | district | owned | lateral | on | the | strip, | with | a | couple | of | turn | outs | to | the | subject |
Headquarters West, Ltd. ADOT 7-11695 South Mountain Loop 202
| irrigation | ditches | off | of | the | lateral. | The | current | uses | as | irrigated | cropland | appears | to | have | utilized | this | area | ||||
| crossing | over | it, | and | for | the | “as | is” | subject | it | is | considered | to | have | contiguity. | Based | on | these | three | tests, | it | is |
| the | appraiser’s | opinion | that | the | subject | is | one | larger | parcel | of | 201.62 | acres | or | 8,782,661 | square | feet. |
| Site | Inspection | |||||||||||||||||
| The | date | of | valuation | is | October | 14, | 2016, | which | is | the | date | of | the | appraiser’s | inspection | of | the | subject. |
| The | subject | owner | Mr. | Tom | Tait | and | the | tenant | farmer | Mr. | Brandon | Brooks | were | not | able | to | attend | the |
| inspection. | Ms. | Nancy | Madden | of | Tierra | Right | of | Way | met | the | appraiser | at | the | subject | property. |
| Tenant/Lease | Information | |||||||||||||||||||
| The | subject | is | currently | leased | for | agricultural | uses | to | MK | Farms | (Mr. | Brandon | Brooks | - | 602-697-3299). | |||||
| The | original | lease | term | was | for | two | years | from | 1/1/2011 | through | 12/31/2012, | however | under | a | first | amendment | ||||
| the | term | was | extended | to | run | from | 1/1/2013 | through | 12/31/2017. | The | lease | is | based | on | 190 | acres | with | an | annual | |
| rent | of | $125 | per | acre | ($23,750). | The | tenant | pays | the | delivery | fee | ($0.35/acre) | for | water | plus | any | additional | |||
| charges | for | additional | water | delivery | of | SRP | water. | The | landlord | pays | the | property | taxes | plus | SRP’s | base | water | |||
| assessment | ($32.75/acre). | There | are | cancellation | clauses | should | the | property | (or | portions | of | it) | be | either | ||||||
| condemned, | sold | or | developed. | If | any | part | of | the | lease | is | cancelled | without | the | tenant | being | reimbursed, | the | |||
| landlord | will | reimburse | the | tenant | for | the | market | value | of | the | growing | crops | as | of | the | date | of | termination | and/or | |
| any | prepaid | rent. | The | lease, | while | it | is | typical | of | agricultural | leases | in | the | neighborhood, | has | little | impact | on | ||
| marketability | and | value | of | the | subject. | Please | see | a | copy | of | the | farm | lease | in | the | addenda. |
| Three | of | the | off-premise | signs | involving | two | of | the | leases | are | located | within | the | partial | taking | area. | ||||
| There | are | also | several | small | on | premise | signs | in | the | taking | area | for | a | real | estate | offering. | Per | written | instructions | |
| from | the | client, | these | sign | improvements | and | leasehold | estates | are | not | valued | in | this | appraisal | report. | The | client | |||
| has | engaged | another | appraiser | to | value | the | billboards | and | any | property | interest | they | have | in | the | subject. | These | |||
| off-premise | sign | leases | are | not | included | in | the | addenda. |
The farm lease and four off-premise sign leases are summarized in the following chart.
Lease Type
Tenant/ Lessee
Term Began
Term Ends
Rent
| Per | Unit |
| Rent | Notes |
Farm Lease MK Farms 1/1/11 12/31/17 $23,750 $125/acre
| Based | on | 190 | acres, | lessor | pays | taxes |
| and | base | water | assessment, | lessee | ||
| pays | water |
Off-premise sign
Gannett now
Outfront Media
| 3/1/82 | year | to | |||||||||
| year | $1,000 | $500/sign | 2 | signs | both | in | the | taking | north | side | of |
Van Buren
Off-premise sign
BKG
Outdoor 4/14/06 4/14/26 $8,400 $8,400/sign
| 1 | sign | (not | constructed) | in | the | taking | by |
This is the start of the file's text. The full file is on GovTribe.
File details come from the government source that posted it. Updated .