HomeMy WebLinkAbout6.b. University of Minnesota Property Appraisals P:O. BOX 510
C�Z�� � 2875-145TH ST. W.
OSer�'LOZiG�� ROSEMOUNT. MINNESOTA 55068
6 t 2-423-441 1
Agenda I tem 6b.
TO: MAYOR, CITY COUNCIL, CITY ADMINISTRATOR
F?tOM: DEAN JOHNSON, DIRECTOR OF COMMUNITY DEVELOPMENT
�ATE: MAY 10, 1990
SUBJ: U OF M PROPERTY APPRAISALS
MAY 15, 1990 COUNCIL AGENDA ITEM #6b.
As the Council is aware, Steve Jilk and I have been in
discussions with the University of Minnesota, regarding the
disposition of the Rosemount Research Center. Discussions
r,ave included the potential "transfer" of property from the
University to the City. These discussions are only
exploratory or conceptual at this point and intended only to
evaluate alternatives to enhance the management, regulatory
control and/or redevelopment of the property. It has been
agreed that the City and University should seek independent
appraisals of the property as a means of continuing and
ekpanding dialogue.
t�'e have also met with Dakota County, regarding the proposed
incinerator and the wide range of implications a site
selection on the University property may have. The County is
presently engaged in appraising property values of the three
potential incinerator sites, including the Research Center.
Because of the demands placed upon the City in reviewing the
County's incinerator proposal, the County has committed excess
funds from their appraisal budget for City appraisal purposes .
That amount is estimated at $4,500 - $5, 000 .
Attached is a proposal from Forsythe Appraisals, Inc. , for the
appraisal of approximately 1, 100 acres at the Research Center,
located in the City of Rosemount. We selected this appraisal
firm, because they are already doing the appraisal of the
County's proposed incinerator site at the Research Center.
Naking use of background data collected on the County
appraisal, represents a significant cost saving for an
expanded appraisal, at only $8, 800 .
The University has hired two appraisal firms to prepare
ir.dependent analyses of property values . One of the
appraisers has hired another firm to perform a cost estimate
for the complete demolition and disposal of all structures,
above and below ground, including buildings . That information
would be available to all appraisers . None of the appraisal
firms have been instructed to perform any analysis of the
environmental liabilities that may exist.
° U of M Appraisals
M�y 15, 2990 Council Agenda Item #6b
Page Two
In summary, it appears appropriate to proceed at this point
with our own appraisal of the Research Center. While the
University may do nothing to change the status of the Research
Center and the City may decline to get involved any further,
the opportunity to evaluate options and the impetus for change
may never be better. Based upon the County' s participation
in this exercise, the cost to the City is somewhere around
$4, 000 . This is an extremely low investment for the potential
it holds .
4
►"�H'�' S ' �►� 15: 54 FFC�M FC�F�'Y'THE c;FFRA I SAL� FArE . �Q 1
���L� �r1.E 'ZQL�,GtL �
� � �� Jerry FOrsythe.SRA
� �� � ChBirm
an
2535 CEKTR�+L AVE N,E. • MINNEAPOLIS,MN 55418• Ph.(812)�$q-4's12• Fax:(612)789-6982 T.S. Forgythe.SRPAlSRA
��.:� •aFs�xnu
•O►er 3n 1'ears and Sti1!Grpwir► "— �0 Des! nafed A � P►esident
9 g ppr6isers to Serre Yeu Betier.
�3 ��i°�'� • Wayne Nelson.ASA
� .,na,qT,,,u Herb Nybzrg,MAi/SRPAISRA
M,a,�,t,�r Mdy 8, 2990 Charlotte Forsythe,SRA
• um t�ar.�ef�r
Jvhr, C. Forsythe.SRA
Mary Forsythe,SRA
Richard Forsythe, RM
Eiteen Massia,SRA
De�t] JOI1t]SOA Kathieen Anton
The City vf Rosemount W����amGraham
2U75 I45th Stzeet W25't Tom Hailer
Rosemant, Minnesota 55068 �onn+�in
Karen Johnson
Dean Loosbrock
Dea� Mz. Jabnson: John Mascari
Amy Oberg
This letter is in r��erence to �he property referred to as:
Acreage in Rosemont, Minn�sota
As we aiscussed on our phane conv�rsation on May 4, i99�, we
�rill appraise th� prop�rty described above for a fee of 58,800.
We wil� complete the appraisal within 30 �0 45 days EzorEt the date
we receive your request to praceed. �
T'he pu=pose of th� apprais�l shal.l be to estimate the "faiz
market valne" tif �h� proper�y. The report shall comply with
a��ep�ed stand�zds as detailed by the Society of R��l Esta��
Appra�sers.
It is agreed that ,th� fe� cov�rs the appraisal report only;
if �re should be asked to testify with you in �ourt , the
addi�kional fee shaJ�1 be $SO.OU per hvar preparation, $35b.00 per
day testimony, or any oart thereof.
We agree tbat �he invoic� is to b� paid in fu11 upon receipt
of our report.
De�t�, we know from past expexience that it is irnportant to
have good communication vn this �ype of assignment. '�o this enc�
our appr�aiser will contac� you next w�ek (to discuss the
bvil.dings included, support of demolition costs and any other
spe�i�l instructions you want considered) .
You �Tru y '
1
T. S. "ors he, SRA, SFtPA
Presi+.len
. f� � . ,' .
�:/
ti..� —�, ,
Jerry Forsythe, 5RA
Chairman