Laserfiche WebLink
ATTACHNfENT 3 <br /> Page 47 <br /> Value Estimates. The Appraisal valued the fee simple estate of the taxable property in <br /> the District to estimate the hypothetical (in light of the fact that the improvements financed by <br /> the Bonds were not in place as of the date of valuation) market value of the property (in bulk), <br /> assuming completion of the improvements to be financed by the Bonds. The valuation accounts <br /> for the impact of the lien of the Special Tax. The property appraised excludes property in the <br /> District designated for public and quasi public purposes. The value estimate for the property as <br /> of the October 20, 2010 date of value, using the methodologies described in the Appraisal and <br /> subject to the �imiting conditions and special assumptions set forth in the Appraisal, and based <br /> on the ownership of the property as of that date, is $45,000,000. <br /> The appraisal methodology used in the Appraisal is based on a discounted cash flow <br /> analysis utilized to estimate the market value of the appraised property. A discounted cash flow <br /> analysis is a method of analysis in which a discount rate is applied to a projected revenue <br /> stream generated from the sale of individual components of a project. In this method of <br /> valuation, the appraiser specifies the quantity, variability, timing and duration of the revenue <br /> streams and discounts each to its present value at a specified yield rate. The revenue <br /> component of the discounted cash flow was derived by valuing the residential and commercial <br /> components comprising the property. The valuation of the components was arrived at <br /> employing the sales comparison approach to value. Separate data sets were used to estimate <br /> the value of each component individually. See also "Assumptions and Limiting Conditions" <br /> below. <br /> Hypothetica/ Condition. The improvements to be financed by the Bonds were not in <br /> place as of the date of inspection; thus, the value estimate is subject to a hypothetical condition <br /> (of such improvements being in place), defined as that which is contrary to what exists but is <br /> supposed for the purposes of analysis. <br /> Market Value, Bu/k Value. The bulk sale value represents the most probable price, in a <br /> sale of certain parcels within District, to a single purchaser or sales to multiple buyers, over a <br /> reasonable absorption period discounted to present value. The discounted value of the property <br /> represents the market value of the property in the District. <br /> Assumptions and Limiting Conditions. In considering the estimate of value <br /> evidenced by the Appraisal, the Appraisal is based upon a number of standard and special <br /> assumptions which affect the estimates as to value, some of which include the following. See <br /> "APPENDIX B — THE APPRAISAL." <br /> • The value estimates assume the completion of the public facilities to be <br /> financed by the Bonds, but not any other bonds. See "THE IMPROVEMENTS." <br /> • The value conclusion contained in the Appraisal is based, in part, on <br /> development cost and fee information provided by the Developer and by the <br /> Development Agreement. Any significant change in these cost/fee projections could <br /> have a direct impact on the value estimate concluded in this report. Onsite development <br /> cost projects provided to the Appraiser are estimates only and there is a possibility for <br /> these costs to change once the final budget is prepared. A final onsite budget was not <br /> available for use in the Appraisal. The Appraiser specifically assumed the cost <br /> information provided is accurate. <br /> • The Appraiser has also assumed that there are no adverse soil <br /> conditions, toxic substances or other environmental hazards that may interfere or inhibit <br /> -33- <br />