WEN.307 - APPRAISAL PERFORMANCE WORK STATEMENT[18073].pdf

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Appraisal Performance Work Statement Washington Cascades I-V – WEN.307 | 1/24/2022

APPRAISAL PERFORMANCE WORK STATEMENT

FOR

Washington Cascades Phases I-V

WEN.307_SNO.217 & WEN.312_SNO.219

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 Okanogan-Wenatchee

Mt. Baker-Snoqualmie Project Name Washington Cascades Phases I-V Case Number WEN.307_SNO.217 &

WEN.312_SNO.219

Case Type Land Purchase Land Size 18,376.23-acres

Appraisal Assignment Package

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

▪ Appraisal Performance Work Statement

▪ Appraisal Specifications

▪ Supplied Exhibits

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 Specifications 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.

UASFLA Education - Certificate of completion of the UASFLA (Yellow Book) Seminar after December 2016.

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 in good standing or provide documentation from the State of Washington that the AMC/ intermediary is not required to register as outlined in Chapter 18.3610 RCW.

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)

Purpose of Appraisal

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

Client:

The client is the Director of Lands, Pacific Northwest Region, USDA-Forest Service.

Intended Users:

The intended users of the appraisal report are the Forest Supervisors of the Mount Baker-

Snoqualmie and Okanogan-Wenatchee National Forests, Forest Service realty personnel, Regional Office lands staff, agency Review Appraisers, and USDA Office of General Counsel.

Intended Use:

The intended use of the appraisal is to assist the client agency (Forest Service) in the negotiation of a potential purchase of the property (UASFLA 1.2.3).

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Definition of Value:

Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal (UASFLA 1.2.4).

Jurisdictional Exception:

The definition of market value, required by the Uniform Appraisal Standards for Federal

Land Acquisitions, 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.

Summary of Property to be Appraised

Case Name:

Washington Cascades Phases I-V - WEN.307_SNO.217 & WEN.312_SNO.219

Case History and Special Instruction:

The Central Cascades Forest, LLC (CCF) owns the land that is the subject of this appraisal assignment and it has voluntarily offered to sell the subject to the U.S. Forest Service

(USFS). The USFS will be negotiating with The Nature Conservancy (TNC) on behalf of the

CCF.

This project was planned for several acquisition phases which have now been combined into one project. The exhibits provided may reference different project names and acreage sizes associated with the project codes WEN.307_SNO.217 & WEN.312_SNO.219, however the case name for this project is as referenced above and the total acreage is 18,376.23-acres as stated in Exhibit B, the Land Description Verification (LDV), dated 9/20/2021.

The appraiser is to provide a value opinion of the full acquisition of the 18,376.23-acres.

After the value opinion of the whole, the appraiser is to then list in a table format the contributory value of each PLSS section as it relates to the value of the whole.

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Estate to be Appraised:

The estate to be appraised is all the rights, title, and interest of Central Cascades Forest

LCC, in and to 18,376.23-acres of land, with consideration given to the reservations and outstanding rights as described in the preliminary title reports of Exhibit A.

Legal Description:

Verbatim from the Land Description Verification (LDV) dated 9/20/2021 in Exhibit B.

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 in the appraisal report.

Landowner: Central Cascades Forest, LLC Attn: Jane S. Kiker

74 Wall Street

Seattle, WA 98121

Jane.kiker@tnc.org

206-971-4319

General Location:

The property to be appraised lies within the Wenatchee and Snoqualmie National Forests in Yakima and Kittitas Counties as described in the Land Description Verification (LDV).

See the map on page 9, as well as the Google Earth Pro file, which shows the general location of the subject property. It is not an official survey file.

WEN.307 - Washington Cascades Phases I-V.kmz

*Email Contacting Officer or COR if kmz file if clicking the link does not open the Google

Earth File.

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Parcel Numbers:

Multiple, see Exhibit B, the LDV.

Special Designation:

Many of the parcels are located within the Mountains to Sound Greenway National Heritage

Area. The appraiser must discuss whether this has an impact on value.

https://www.nps.gov/places/mountains-to-sound-greenway-national-heritage-area.htm

Improvements:

Generally, the only improvements are roads and timber harvest related landings. More detail is provided in Exhibit C.

Physical and Legal Access:

There are multiple routes of access as described and shown in Exhibit C. Access is also discussed in Exhibit B.

Aerial inspection may be considered. Offerors can provide a bid proposal with and without an aerial inspection.

Minerals:

Outstanding mineral rights are discussed in Exhibit B. See page 30 of WEN.312_SNO.219

LDV Narrative. A statement must be made concerning the existence or nonexistence of commercially valuable mineral deposits (UASFLA 2.3.2.3.1).

Timber:

There is merchantable timber on the site and a timber cruise is required. Please see the

Timber Cruise Performance Work Statement for timber cruise design requirements. See

Special Considerations for Forested Properties in UASFLA 1.1.4.

Water Rights:

The appraiser must recognize that water rights are established under state law (UASFLA

1.10.5). The appraiser should investigate water rights using the Washington Water

Resources Explorer website, as well as any other reliable sources. Outstanding water rights are also discussed in Exhibit B. See page 25 of the WEN.307_SNO.219 LDV Narrative.

See pages 30-31 of WEN.312_SNO.219 LDV Narrative.

Water Features:

There are several water features present; most notable are: Lake Kachess, the Little Naches

River, Taneum Creek, Lookout Creek, Bear Creek, West Fork Creek, and Big Creek.

Wetlands:

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Investigate using the National Wetland Inventory maintained by the US Fish and Wildlife

Service, as well as any other reliable sources.

https://www.fws.gov/wetlands/data/mapper.html

Floodplain:

Investigate using the FEMA Flood Map Service Center, as well as any other reliable sources.

https://msc.fema.gov/portal/home

Hazardous Materials:

A Phase I Environmental Site Assessment has not been completed. However, there are

Environmental History Worksheets included as Exhibit D. An extraordinary assumption is authorized for hazardous materials and specific verbiage is provided on page 6.

Site Conditions:

Site conditions vary by tract and are best described in Exhibit C.

Items not currently of Record:

There may be encroachments as noted in Exhibit B, WEN.312-SNO.219 LDV Narrative, on page 15. The USFS has not been on the ground to inspect this area. If encroachments are found, photographs with geographical map of their location must be sent to the Review

Appraiser for further instruction.

Pre-Contract Award Instructions

Hypothetical Conditions:

None instructed. The Review Appraiser must be contacted to approve use of a

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

Extraordinary Assumptions:

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.

Remember to state in the report if 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.

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 The Nature Conservancy 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.

Appraisal Report Submission:

The contract appraiser shall submit to the Review Appraiser one digital (pdf) version of the appraisal report and the spreadsheets used for calculations in the approaches to value for the review process.

A preferred start date would be April 2022 with field work and inspections taking place as early as snow thaw allow. This work is subject to current COVID-19 pandemic guidelines and conditions at the time of contract award. A proposal of an alternate start date

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The Forest Service Review Appraiser will review the appraisal report and spreadsheets and notify the contract appraiser of necessary revisions, if any. The revised report shall be submitted within 28-days.

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:

A partial payment will be authorized upon completion of the timber cruise. The cruise must have been approved by a Forest Service Forester prior to payment. The partial payment invoice may be in the amount of the actual cost from the subcontractor or 50% of the appraisal contract amount. The contract appraiser may submit their partial payment invoice with a copy of the subcontractor invoice. The remainder of the appraisal contract may be submitted after approval of the appraisal report by the assigned Review Appraiser, and delivery of all specified report copies. All invoices must be submitted using the Invoice

Processing Platform (IPP).

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, Timber Cruise

Performance Work Statement documents, and exhibits/appendices supplied comprise the

Appraisal Assignment Package which provides the contract appraiser details to be used in this assignment. Only the Performance Work Statement and the LVD are required to 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)

Bonnie Tanamor

Senior Review Appraiser/COR

USDA Forest Service

Pacific Northwest Region bonnie.tanamor@usda.gov cell (971) 325-6706

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Separate Exhibits to Appraisal Performance Work Statement

Exhibit Signed/Stated Date

a. Preliminary Tile Reports (PTR) 05/29/2020

06/25/2020

04/23/2021

b. Land Description Verification (LDV) 09/20/2021

c. Certificate of Possession – Initial Inspection 04/2020 with access notes and maps 06/2021

d. Environmental History Worksheets 04/2020

06/2021

Provided After Award

e. Encumbrance Evaluation Report (DRAFT)

f. Offer to Sell/Permission to Enter

Aerial Map

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