STIMSON LEX APPRAISAL PERFORMANCE WORK STATEMENT.pdf

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Appraisal Specifications for Real Property Stimson Land Exchange – [COL64-KAN17] | 3/1/2022

APPRAISAL PERFORMANCE WORK STATEMENT

FOR

Stimson Land Exchange COL64-KAN17

General Information

The USDA Forest Service is seeking to contract for an appraisal report. This document shall be included in the addendum of the appraisal report. Please prepare, in compliance with the contract specifications, an appraisal of the following property:

National Forest Primarily Colville Project Name Stimson Land Exchange Case Number COL64-KAN17 Case Type Exchange Land Size 30,334.79-acres (Federal)

60,097.21-acres (Non-Federal)

Appraisal Assignment Package

For the purposes of this project, the Appraisal Assignment Package refers to the following:

▪ Appraisal Performance Work Statement

▪ Appraisal Specifications

▪ Project Addendum (Supplied Exhibits &/or appendices)

The Assignment

Prepare a written appraisal report of the described subject property in compliance with the following:

▪ Appraisal Performance Work Statement and Appraisal Specifications

▪ Current Edition - Uniform Standards for Professional Appraisal Practice (USPAP); and

▪ Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) 2016, i.e. “Yellow

Book”.

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Standards

The appraisal must conform to the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA), The Federal Uniform Relocation and Assistance Act (42 U.S.C. 4601), the Uniform Standards of Professional Appraisal Practice (USPAP), and the Appraisal Performance Work Statement attached to your contract. If any of the provisions of USPAP conflict with those of UASFLA, then the standards of UASFLA take precedence under the Jurisdictional Exception of

USPAP.

State Certification - the Offeror must show the ability to obtain a certified general appraiser license from the State of Washington at the time of bid.

Specify if the requirement will be met through existing certification, reciprocity, or temporary permit at time of bid.

The individual appraiser with whom the contract is made must actually prepare or be principally responsible for developing the appraisal report, and be prepared to testify in court if it becomes necessary (2016 UASFLA 1.14)

Intermediaries/Appraisal Management Company (AMC)-No appraisal management company or other intermediary is eligible to bid on this contract unless the Contractor can provide an active Washington AMC Registration/License in good standing or provide documentation from the State of Washington that the AMC/intermediary is not required to register or be licensed as an AMC.

The individual sub-contracted appraiser identified as “key personnel” will actually prepare or be principally responsible for developing the appraisal report, and be prepared to testify in court if it becomes necessary

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Purpose of Appraisal

Include within the section of the report labeled “Purpose of the Appraisal” the following wording:

Client:

The client is USDA-Forest Service.

Intended Users:

The intended users of the appraisal report are USDA-Forest Service Personnel.

Intended Use:

The intended use of the appraisals is to provide the basis for market values for the proposed

Stimson Land Exchange between the USDA Forest Service and Stimson Lumber Company.

Definition of Value:

“Market value is the most probable price in cash, or terms equivalent to cash, which lands or interest in lands should bring in a competitive and open market under all conditions requisite to a fair sale, where the buyer and seller each acts prudently and knowledgeably, and the price is not affected by undue influence” (Federal Land Exchange Facilitation Act dated March 8, 1994).

Jurisdictional Exception:

The reader should note that this definition of market value, required by the Federal Land

Exchange Facilitation Act, is not “linked” to a specific “exposure time” estimate as required by the Uniform Standards of Professional Appraisal Practice (USPAP, SR 1-2(c)). “Such estimates are inappropriate for, and must not be included in, appraisal reports prepared for federal land acquisitions under these standards” (UASFLA, Section 1.2.4). This appraisal therefore invokes the Jurisdictional Exception Rule and does not include an opinion of reasonable exposure time.

Definition of Highest and Best Use:

If you wish to include a definition of Highest and Best Use in the appraisal report, please note the definition in Section 4.3.1 of the Uniform Appraisals Standards for Federal Land

Acquisitions.

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Summary of Property to be Appraised

Case Name: Stimson LEX COL64-KAN17

Estate to be Appraised:

Non-Federal Lands

The estate to be appraised is all the rights, title, and interest of “STIMSON WASHINGTON

INC” in and to 60,097.21 acres of land, with consideration given to the reservations and outstanding rights as described in the Preliminary Title Commitment, No: 136323, dated

February 4, 2021 issued by Stewart Title.

Federal Lands

The estate to be appraised is all the rights, title, and interest of “the Forest Service” to

30,334.79 acres of land.

Legal Description:

Verbatim from the Land Description Verification (LDV) dated 11/08/2021 for the Federal

Lands and 11/04/2021 for the Non-Federal Lands. (See Addendum)

This LDV provides the controlling identification of the subject property and shall be used in the appraisal report. The LDV may differ slightly from descriptions shown in other associated documents.

Additional outstanding rights, encumbrances, unauthorized occupancies, or discrepancies in the legal description uncovered during the appraisal process are to be brought to the attention of the review appraiser.

It is unacceptable to state that the property has been appraised as if free and clear of all encumbrances. The encumbrances must be identified within the assumption and limiting conditions section of the appraisal report (UASFLA 2.3.1.7) and described in the estate appraised in the scope of work section of the report (UASFLA 2.3.1.8). The impact on value for each encumbrance shall also be stated.

Landowner: Stimson Lumber Company

PO Box 1499

Newport, WA 99156

Wade Pierce, Washington Area Woodlands Manager

509.550.0315 (office) wpierce@stimsonlumber.com mailto:wpierce@stimsonlumber.com

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General Location:

The properties to be appraised consists of many parcels. The Federal and Non-Federal lands offered for exchange are located within Stevens and Pend Oreille Counties in northeastern portion of the State of Washington. These Federal lands are comprised of 157 unique parcels.

The Non-Federal lands offered for exchange comprise 160 parcels. The size and location of all of the parcels included within this exchange are located with the LDV’s located within the Addendum.

Parcel Numbers:

See the Land Description Verification(s) (LDV) included in addendum.

Maps:

See Addendum for subject maps.

Improvements:

None known.

Physical and Legal Access:

The physical access to each of the 157 federal parcels and 160 Non-Federal parcels is varied.

Minerals:

See LDV’s.

Timber:

There is significant merchantable timber within the parcels.

Water Rights:

The water rights (if any) are documented within the LDV’s.

Hazardous Materials:

Environmental Site Assessments have been completed (draft) for both the Federal and Non-

Federal parcels. The documents will be provided to the contractor after contract award.

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Site Conditions:

Various

Items not currently None known of Record:

Pre-Contract Award Instructions

Hypothetical Conditions:

For the Federal (Forest Service) property only, include a Hypothetical Condition as follows: “In accordance with 36 CFR 254.9, the subject property is to be appraised “as if in private ownership and available for sale in the open market.” Additionally, Forest Service

Appraisal Handbook 5409.12 Chapter 60 Section C-2.2(b)(2) – Part II – Factual Data, Item

(5)(h) of the Basic Specifications for Real Property Appraisals states “Federal land must be appraised under the hypothetical condition that they are already in non-Federal ownership and zoned consistent with similar non-Federal properties in the market area.” Therefore, it will be necessary to include the aforementioned hypothetical condition(s) in completing the assignment.”

The Review Appraiser must be contacted to approve use of additional Hypothetical

Condition, and only if the use is necessary to produce a credible appraisal.

Extraordinary Assumptions:

The only preauthorized Extraordinary Assumption states as follows: “There is no record of hazardous materials having been deposited on the subject property; however, a current environmental site assessment has not been performed. You are to use an extraordinary assumption that the property is unaffected by hazardous material, and if found to be so affected, the property shall be cleaned up or the effect of the hazardous substances or petroleum products shall be remediated prior to conveyance. Any condition other than the property being free from a “recognized environmental condition” may invalidate an approved appraisal report.”

Per USPAP requirement, the appraisal must include the following statement, “hypothetical conditions or extraordinary assumptions may have affected assignment results.”

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Larger Parcel:

Refer to the Uniform Appraisal Standards for Federal Land Acquisition (UASFLA), Section

1.4.6.

UASFLA requires the appraiser to make a larger parcel determination in all appraisals. The appraiser must describe the factual basis and analysis underlying the conclusion of the larger parcel analysis. The three tests developed under larger parcel analysis (unity of highest and best use, unity of title, and contiguity) must be reported in sufficient detail for the client and intended users to fully understand the factual and analytical basis for the conclusion.

If it is determined that the estate to be appraised contains multiple larger parcels, the contract appraiser shall consult with the assigned staff review appraiser for possible additional direction.

Should it be determined that multiple “larger Parcels” exist, a contributory value conclusion (as part of the whole) for each of the larger parcels identified will be reported.

Highest & Best Use:

Refer to the Uniform Appraisal Standards for Federal Land Acquisition (UASFLA), Sections

1.4.4 & 1.4.5.

The highest and best use conclusion will identify the most probable user, the most probable buyer, and the timing of the use. The timing of use is an assignment instruction.

Post-Contract Award Instructions

Pre-Work Meeting:

Appraiser will participate in a pre-work meeting conducted by the Forest Service review appraiser. Pre-work may be in conjunction with the property inspection. Representatives of the Forest Service and Stimson will be given an opportunity to take part in the pre-work meeting and associated property inspection.

Enclosures:

The contract appraiser is instructed to include a copy of this Appraisal Performance Work

Statement in the addendum to the appraisal report. All other supplied exhibits and/or appendices by the Forest Service may be included as the contract appraiser feels necessary to produce a credible report that is not misleading.

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Appraisal Report Submission:

The contract appraiser shall submit to the review appraiser one digital (pdf) version of each appraisal report and all spreadsheet utilized within the appraisals, no later than 180 days for Phase 1 after the pre-work meeting, unless offeror proposes an alternate date which is accepted.

Should Phase 2 be deemed necessary, the contract appraiser shall submit to the review appraiser one digital (pdf) version of the appraisal report and all spreadsheet utilized within the appraisal, no later than 60 days for Phase 2 after the Phase 2 pre-work meeting, unless offeror proposes an alternate date which is accepted.

A preferred start date (Phase 1) would be late May/June 2022. This date is subject to current

COVID-19 pandemic guidelines and conditions at the time of contract award. A proposal of an alternate start date and/or time for completion if unable to comply within the preferred timeframe is allowable. The specific start date will be established with a Notice to Proceed.

The Forest Service review appraiser will review the appraisal report and notify the contract appraiser of necessary revisions, if any. The revised report (Both Phase 1 & 2) shall be submitted within 15 days of receipt of the appraisal revisions request.

The contract appraiser will provide (one) original copy of the signed final appraisal report and one (1) electronic (pdf) copy of the original signed final appraisal report to the Forest

Service review appraiser once the report has been approved by the review appraiser.

Payment:

An invoice may be submitted after approval of the appraisal report by the assigned review appraiser, and delivery of all specified report copies.

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Summary:

This Appraisal Performance Work Statement provides an overview of the appraisal assignment. The Appraisal Specifications document sets forth a summary of the requirements, standards, and guidelines for the appraisal assignment. The Forest Service-issued Appraisal Performance Work Statement, Appraisal Specifications document, and exhibits/appendices supplied comprise the Appraisal Assignment Package which provides the contract appraiser details to be used in this assignment. Only the Appraisal Performance

Work Statement should be included in the addendum. If there are any further questions regarding this appraisal assignment, please contact the assigned Forest Service review appraiser for clarification.

Assigned Review Appraiser & Contracting Officer Representative (COR)

James Witt, MAI, AI-GRS

Regional Appraiser (Region 6)

USDA Forest Service

Pacific Northwest Region

James.witt@usda.gov

817.673.8957 (cell)