Kenwood Storage Building Appraisal
-I
Ii
I-I
I-I
I-I
I]
I]
-,
IJ
IJ
I]
I~
I]
.J
IJ
'"I
I-I
i
1-1
IJ
I
I-I
.-'
I
IJ
'j,. -.::,:~,..)..' ',.,.'
THE SIMMONS COMPANY
REAL ESTATE APPRAISAL AND CONSULTING
3202 Kimball Avenue
Manhattan, Kansas 66503
Telephone No. (785) 539-6531
Fax No. (785) 539-1433
430 Beechwood Road
Salina, Kansas 67401
(785) 825-9090
July 31, 2006
Mr. Ken Kennedy
U.S.D. 305
1511 East Gypsum Avenue
Salina, KS 67401
Re: . Appraisal for the Building Only Located at 505 Kenwood Park, Salina, Kansas
67401. (No additional value is given for the land that the building is located on, and
for any personal property items (furniture, fixtures, and equiprnent).
Dear Mr. Kennedy:
As requested, we have developed an opinion of market value for the building only of the
property referred to above. "Market value" is defined in the attached docurnents in the
Objective of the Appraisal section. Every effort has been made to conforrn to the Uniform
Standards of Professional Appraisal Practice. The property description and valuation
analysis are rnore fully described in the attached appraisal report.
The Client and Intended User of this appraisal is Officials with U.S.D. 305. The Appraisers
do not authorize, and are not responsible for, use of this appraisal by any party other than
the Client. However, the Appraisers permit U.S.D. 305 sharing the appraisal with the City
of Salina and Saline County officials, who are also users of the subject building, for the
purpose of the stated intended use only.
The intended use of this appraisal is for assisting the Client with internal decision making
for a possible future sale price of the subject building, and any other use is prohibited. This
appraisal is subject to the underlying assumptions, extraordinary assumptions, and limiting
conditions set forth in this report. The Appraisers make no representations, guarantees,
or warranties.
The opinion of market value for the subject building only, as of July 20, 2006, subject to the
extraordinary assumptions and hypothetical conditions set forth, is:
ONE HUNDRED FORTY THOUSAND DOLLARS
($140,000)
Through an Interlocal Cooperation Agreement. the subject building is jointly used by three
governmental units, who are U.S.D. 305, City of Salina, and Saline County, and is located
on land owned by the City of Salina. However, the appraisal is based upon the hypothetical
condition that the subject property is encurnbered by fee simple interest. which in-fact, it is
not.
The 5imrrlGrt'J COnlDany
UI
I'
In]
I-I
1"/
I]
-'J
1-
._\
IJ
I]
I]
I]
I]
"'J
IJ
IJ
1-'
1-'
IJ
II
1-'
,
IJ
Cover Letter
Page 2
The scope of work in this appraisal is customized for the intended use. This appraisal and
report may be inappropriate for other uses and jeopardize the user. Therefore, regardless
of the means of possession of this report, this appraisal may not be used or relied on for
any use except the stated use. The Appraisers, Appraisers' firms, and related parties
assume no obligation, liability, or accountability for any other use.
The interest appraised is the hypothetical fee simple interest, which is defined in the body
of this report. The purpose of this appraisal is to develop an "as-is" opinion of market value
for the subject building only, and the function is for analyzing financial considerations. The
intended use of this appraisal is for the sole purpose of assisting the Client with intemal
decision making for a possible future sale price of the subject property, and any other use
is prohibited.
The above stated opinion of market value does not include the contributing value of any
fumiture, fixtures, and equipment. The property is appraised in the "as-is" condition, and
. there are no known major deferred maintenance items. The estimated reasonable
marketing time for the subject property is one year, which assumes professional and
aggressive marketing. This is a summary report that should be read in its entirety,
including all attachments, addendums, and cover pages. You are specifically referred to
sections entitled Environmental Hazards and ADA (Americans with Disabilities Act)
identified in this report.
Respectfully Submitted,
~~
Fletcher Simmons, MAl
Certified General Appraiser
State of Kansas
Cert. No. G-94
Jeff Holgerson
Licensed Appraiser
State of Kansas
License No. L-1357
FS/JH/jmd
Th8 Simmons Cornpany
-I
I'
I-I
I-I
'--1
II
-I
II
I
I-
I]
I]
IJ
I]
~I
I]
IJ
.1
IJ
IJ
I
I'
I
1-'
II
APPRAISAL OF THE BUILDING ONLY LOCATED AT:
505 Kenwood Park
Salina, KS 67401
Effective Date of Appraisal - July 20, 2006
By
Fletcher Simmons, MAl
Cert No_ G-94
Jeff Holgerson
Licensed Appraiser
License No, L-1357
The- 8!rnrnons COfnpany
--I
II
II
.-1
.-,
--I
I
-.\
I
"
-I
I-
I]
I]
1:1
I]
I]
1.1
1.1
1.1
1.1
1.1
1.1
TABLE OF CONTENTS
Transmittal Letter
Title Page
Table of Contents
INTENDED USER ................................................. 1
FUNCTION/lNTENDED USE OF THE APPRAISAL . . . . . . . . . . . . . . . . . . . . . .. 1
COMPETENCY STATEMENT. . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . .. 1
OBJECTIVE OF THE APPRAISAL. . . . ... ..... .... ... .... .. . . . ........ 2
ESTIMATED MARKET EXPOSURE TIME..... . ....... .... .. . . . . ..... .. 3
EFFECTIVE DATE OF APPRAISAL. . ........ . . ...... ....... . . . ....... 3
HYPOTHETICAL PROPERTY RIGHTS APPRAISED ..................... 4
SCOPE OF WORK ... . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 4
IDENTIFICATION OF PROPERTY. . . ........ ....... .. ......... ....... 6
LEGAL DESCRIPTION ............................................. 6
EASEMENTS, ENCROACHMENTS, ZONING-CODE COMPLIANCE. . . . . . . .. 7
THE AMERICANS WITH DISABILITIES ACT ("ADA") ..................... 7
STRUCTURAL AND MECHANICAL INFORMATION. . . . . . . . . . . . . . . . . . . . .. 8
ENVIRONMENTAL HAZARDS ....................................... 9
SOURCE FOR SQUARE FOOTAGE (SIZE) . . . . . . . . . . . . . . . . . . . . . . . . . . .. 10
SALES HISTORY AND OWNERSHIP OF THE SUBJECT PROPERTY. . . ... 10
AREA DESCRIPTION ............................................. 11
NEIGHBORHOOD DESCRIPTION. . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. 17
SITE DESCRIPTION .............................................. 18
FLOOD MAP .................................................... 19
AERIAL MAP .................................................... 20
DESCRIPTION OF IMPROVEMENTS ................................ 21
SUBJECT PHOTOGRAPHS ........................................ 23
HIGHEST AND BEST USE ......................................... 24
SALES COMPARISON APPROACH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25
INCOME APPROACH ............................................. 46
COST APPROACH ............................................... 46
RECONCILIATION. . . . ... . . .. . ... . ... . ..... . ..... . . ...... .. . .. . .. . 49
REASONABLE MARKETING TIME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 50
Underlying Assumptions, Extraordinary Assumptions, Hypothetical Conditions, and Limiting Conditions
Qualifications of the Appraisers
Appraisers' Certificate
Addendum
The Smrnons Company
-I
II
--I
I,
II
11
II
IJ
-j
1_'
I]
.\
1-
-j
I
I]
I
I,
I
IJ
1.1
I
IJ
1.1
1.1
I
IJ
II
INTENDED USER
The Client of this appraisal is the entity in which the letter of transmittal is addressed.
The intended user is that entity. The Appraisers do not authorize and are not responsible
for use of this appraisal by any party other than the Client.
FUNCTION/INTENDED USE OF THE APPRAISAL
The function/intended use of the appraisal is for the sole purpose of assisting the
Client with intemal decision making for a possible future sale price of the subject
building. Any other use is prohibited.
The acceptance of this assignment, by the Appraisers, is not contingent upon the
reporting of a predetermined value or direction in value that favors the cause of the .
Client, the amount of the value estimate, the attainment of a stipulated result, or the
occurrence of a subsequent event.
COMPETENCY STATEMENT
Fletcher Simmons, MAl and Jeff Holgerson, hereby acknowledge that they have the
appropriate education and experience to complete the assignment in a competent
manner. The reader is referred to the Appraisers' statements of qualifications in the
addendum of this report.
The Simroons Company
1
I
i
Ii
I-I
--I
II
I-I
I
1-
IJ
"!
1\
'-I
IJ
r-I
, I
IJ
I]
IJ
OBJECTIVE OF THE APPRAISAL
The objective of the appraisal is to provide an opinion of marketvalue for the subject
building as of July 20, 2006, Pursuant to Title XI of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (FIRREA), and as defined on page 210 of the
current USPAP, Market value is defined as:
"The most probable price in terms of money which a property should bring in
a competitive and open market under all conditions requisite to a fair sale, the
buyer and seller, each acting prudently, knowledgeably and assuming the price
is not affected by undue stimulus,"
Implicit in this definition is the consummation of a sale as of a specified date and the
passing of title from seller to buyer under conditions whereby:
a, buyer and seller are typically motivated;
b, both parties are well informed or well advised; and each acting in what he considers
his own best interest;
c, a reasonable time is allowed for exposure in the open market;
d_ payment is made in terms of cash in U_S, dollars or in terms of financial
arrangements comparable thereto; and
e, the price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated
with the sale_
I
IJ
1-'
I
1-'
I
1-'
I
I'
I
I--
I
IJ
The Simmons Company
2
I
I)
C~I
I
-I
I
~I
I
'-I
II
I
I
.1
I
II
:~I
I.
.1
II
.1
il
II
II
IJ
IJ
.1
IJ
ESTIMATED MARKET EXPOSURE TIME
The market exposure time is presumed to precede the effective date of the
appraisal. Exposure time may be defined as follows: 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; a retrospective estimate based upon an analysis of past events
assuming a competitive and open market, as quoted by Uniform Standards of
Professional Appraisal Practice, The Appraisal Foundation, USA, 2001, P. 83. Exposure
time is a function of price, time, and use. It must be noted that the concept of reasonable
exposure time encompasses not only adequate, sufficient, and reasonable time, but
adequate, sufficient, and reasonable effort
The estimated exposure time presented herein is based on analysis of the following
factors:
* statistical information about days on market
* information gathered through sales verification
* interviews with market participants
* anticipated changes in market conditions
Based on the data presented in this report, and the fact that the market value
estimated herein is representative of a price based on current acceptable returns
indicated by market participants, we are of the opinion that the reasonable exposure time
for each parcel of the subject property in its present use would be approximately 9 to 12
months.
EFFECTIVE DATE OF APPRAISAL
The effective date of the appraisal is defined as the date at which the analyses and
opinions in an appraisal apply. According to the intended use of this appraisal, a current
effective date is used for the subject, which is July 20, 2006. The effective date of the
appraisal establishes the context for the value opinion.
The Slrnrnons Conipany
3
-I
II
~I
II
'-1
I
--I
I
'-I
I
II
-I
I
'I
I
.:1
;'"1
I-
II
I]
IJ
IJ
IJ
1-'
1-'
IJ
I
IJ
HYPOTHETICAL PROPERTY RIGHTS APPRAISED
The hypothetical property rights appraised are the fee simple interest, which can be
defined as an absolute ownership unencumbered by any other interest or estate, subject
only to the limitations imposed by the governmental powers of taxation, eminent domain,
police power, and escheat.
SCOPE OF WORK.
The Client of the this report is an official with a bank, which offers mortgage lending,
and officials with that lender are considering issuing a mortgage loan using the subject
property as collateral. The problem to be solved by the Appraisers is to arrive at an
opinion of value, which in-turn, provides a credible appraisal for the intended users to rely
on in internal decision making for a possible future sale price of the subject building.
The scope of work for this appraisal is to draw market conclusions as of the effective
date of the appraisal, and to consider all approaches to value, unless otherwise stated,
in order to develop an opinion of market value for the real estate of the subject property,
as defined herein, at its highest and best use. The data researched and the type and
extent of the analysis, along with the detail of this appraisal report, is commensurate with
the size, complexity, and type of property appraised.
General Information:
>-. The Client of this appraisal is U .S.D. #305. The Appraisers do not authorize and are not
responsible for use of this appraisal by any party other than the Client. However, the
Appraisers do permit U.S.D. #305 sharing the appraisal with the City of Salina, and
Saline County, who are also users of the Subject building, for the purpose of the stated
intended use only.
>- The intended use of this appraisal is for assisting the Client with internal decision making
for a possible future sale price of the subject building, and any other use is prohibited.
>- The scope of work in this appraisal is customized for the intended use. This appraisal
and report may be inappropriate for other uses and jeopardize the user. Therefore,
regardless of the means of possession of this report,Jhis appraisal may not be used or
relied on for any use except the stated use. The Appraisers, Appraiser's firms, and
related parties assume no obligation, liability, or accountability for any other use. Please
contact our office to have an appraisal customized for your needs.
>- Every effort has been made to conform to the Uniform Standards of Professional
Appraisal Practice.
>- Much of the scope of work is discussed throughout this appraisal. Therefore, the Client
of this report should refer to the specific section(s) for more detailed information. This
information is not limited to the body of this appraisal, but also includes all attachments,
addendums, and cover pages.
Ths Sirnrnons CDrnpany
4
I
I
eel
I
'-I
I
~I
II
-,
I
IJ
.'
.1
I]
.]
I]
IJ
J
I
I
IJ
IJ
IJ
IJ
.J
I
II
Scope of Work
(Cant.)
Subiect Data:
>- Viewed and photographed the subject building on July 20, 2006.
>- Viewed the Interlocal Cooperation Agreement that was obtained from the Register of
Deeds Office.
>- Viewed the aerial of the subject that was provided by the Client of this appraisal.
>- Obtained Inventory Contents Sheet of the subject from the County Appraiser's Office.
>- Verified subject zoning from City of Salina zoning book, and further discussed with John
Burger, Associate Planner with the City of Salina.
Market Data:
>- Drove through the subject neighborhood noting types of properties, conditions of
properties, neighborhood boundaries, and characteristics of neighborhood.
>- Verified infonnation pertaining to comparables from at least two of the following sources:
deeds, MLS, county records, REALTORS, SVQ's, buyers, sellers, builders, property
owners, Appraiser's personal files, other credible appraisers, and exterior drive-by.
Analvsis:
>- Developed an estimated exposure time for the proposed subject property.
>- The appraisal problem did not warrant an intensive highest and best use study.
Therefore, given the nature of the subject real estate, the conclusion of highest and best
use is based upon logic and observed evidence.
>- Performed a direct sales comparison analysis for the subject building only. The sales of
more than 6 warehouse type properties were considered before narrowing it down to the
3 most similar. In order to do provide an opinion of value for the subject building only, the
opinion of site value for each comparable was extracted out from its total sales price on
its date of sale. The results of this provide an opinion of value for the improvements only
for the comparable at its date of sale. After the opinion of value for the improvements
only is determined for the comparables, they are then compared to the subject building.
In conclusion, based upon the sales comparison approach from market data, the "as-is"
opinion of value for the subject building only, as of July 20, 2006, subject to the
extraordinary assumptions and hypothetical conditions set forth, is determined.
>- Considered the income approach, but determined that the income approach does not
provide a credible opinion of value for the subject building, and it is not considered
applicable.
>- Performed a cost approach for the subject building only. An opinion of the cost new of
the subject building was performed by using the Marshall Valuation Service, a nationally-
recognized cost service, with adjustments for local factors. The age/life method is used
to estimate the physical depreciation and an adjustment for functional depreciation is
applied. In conclusion, based upon the cost approach, the "as-is" opinion of value for the
subject building only, as of July 20, 2006, subject to the extraordinary assumptions and
hypothetical conditions set forth, is determined.
>- Considered all three approaches to value, but eliminated the income approach because it
does not provide a credible opinion of value.'
>- Reconciled the opinion of values to arrive at a final opinion of market value for the subject
building only.
>- Developed a reasonable marketing time for the subject building only, which assumes
professional and aggressive marketing.
>- Reported data, analysis, and conclusions in the attached Summary Appraisal Report.
The Simmons Cmnpany
5
~I
Ii
-l
I
-I
I
-I
I
-I
I
I
I
PI
I
'j
1-
IJ
.]
I]
1-'
II
II
IJ
1-'
IJ
IJ
1-'
IDENTIFICATION OF PROPERTY
The subject of this appraisal is a pre-engineered steel frame metal building built on
a concrete slab foundation, The building is currently being used for warehouse storage
purposes for the City of Salina, Saline County, and U.S.D. 305. The building is located
on a parcel located at 505 Kenwood Park, that is located just south of the southern
parking lot for the City of Salina Bicentennial Center. However, at the request of the
Client, only an opinion of market value for the building is desired. Therefore, no
additional value is given for the land that the building is located on, and for any personal
property items (furniture, fixtures, and equipment).
According to assessment records, the building contains a total 10,800 building
square feet and was built in 1984. The building was originally built new for the purpose
of providing warehouse storage for the City of Salina and Saline County, and for
providing locker room facilities for North Junior High for U.S.D. 305. Therefore,
approximately the west 1/3 of the building has two separate minimally finished locker
room facilities, with one formerly being used for the home team locker room, and one
formerly being used as the visiting team locker room. However, it is believed that with
the construction of the new middle school, this portion of the building has only been used
for storage purposes. Located above the locker room portion of the building, is a
mezzanine that is used for additional storage in the building. The warehouse portion of
the building is a large open storage area that has two overhead doors, two separate
exterior doors, skylights, electrical installed in conduit, insulated walls and ceilings,
hanging fluorescent lights and no heating or central air-conditioning.
LEGAL DESCRIPTION
At the request of the Client, only an opinion of market value for the building IS
desired. Therefore, providing a legal description for the tract of land that the building is
located on is not part of the scope of this appraisal.
The- Simmons Compan:/
6
-1
I
-,
I
'-I
I
"J
I
'-1
I
1.1
.]
II
I]
I]
1.:1
'1
I_I
.]
...1
1.1
.J
I
1-'
I
I-I
I
1.1
EASEMENTSI ENCROACHMENTSI ZONING-CODE COMPLIANCE
No Certificate of Title was provided to the Appraisers. Completing abstract or title
research are not a part of the scope of this assignment and should be completed by
professionals with expertise in these areas. Unless otherwise noted, standard utility and
right of way easements are insignificant to value. However, a current locational or
boundary survey, which was unavailable to the Appraisers, may reveal encroachments,
easements, zoning violations, flood zone issues, or other matters of interest that could
warrant modification of the appraised value. Statements regarding zoning compliance
are intended only in the most general sense. FEMA determines the Flood Zone by a
visual inspection, but this is not guaranteed. Flood maps often lack sufficient detail to
enable accurate determinations on the part of the Appraisers. Because the Appraisers
are not surveyors, they make no guarantees, express or implied, regarding the FEMA
Flood determination. Zoning and building ordinances vary significantly from on
municipality to another, and can be extremely detailed. The scope of this report does not
include a comparison of every potentially significant characteristic of the subject
property's site and improvements relative to zoning, building ordinances, and codes. It
is therefore not known to the Appraisers if the building improvements have been built to
code, or are in code compliance.
THE AMERICANS WITH DISABILITIES ACT ("ADA")
The Americans with Disabilities Act ("ADA") became effective January 26, 1992.
have not made specific compliance survey and analysis of this property to determine
whether or not it is in conformity with the various detailed requirements of the ADA. It is
possible that a compliance survey of the property, together with a detailed analysis of the
requirements of the ADA, could reveal that the property is not in compliance with one or
more of the requirements of the Act. If so, this fact could have a negative effect upon the
value of the property. Since the Appraisers have no direct evidence relating to this issue,
we did not consider possible non-compliance with the requirements of ADA in estimating
the value of the property.
The Simrnons. Company
7
--I
I
-I
I
-I
I-
i)
.1
.]
.J
.]
.]
.]
.]
.]
.]
IJ
I
1_'
.-'
.-'
IJ
I
.-
STRUCTURAL AND MECHANICAL INFORMATION
It should be noted that the Appraisers do not have the appropriate knowledge or
education in regard to structural and mechanical matters. The routine site visit by the
Appraisers of the subject property and any improvements is for the sole purpose of
developing an opinion of market value for the real estate of the subject property. Unless
stated otherwise, it is the Appraisers' conclusion that the general condition of the
improvements are consistent with its age and era of construction. The Appraisers have
not viewed the surfaces of any improvements that are not readily accessible or visible
from grade during a walk-through site visit. The site visit by the Appraisers is not
intended to be a full property inspection of the type intended to reveal defects in
l
mechanical systems, structural integrity, roofing, siding, other property components,
foundation settlement, basement moisture problems, asbestos, wood destroying (or
other) insects, radon gas, lead base paint, mold, or any other toxin and/or environmental
issues. Unless otherwise noted, the Appraisers assume the various elements that
constitute the subject property are fundamentally sound and in working order. Therefore,
crawlspaces, attics, roofs, etc. have not been accessed. Mechanical, electrical, and
plumbing systems were not evaluated other than the overall surface appearance of these
items as related to the age of the improvements. The Client is invited and encouraged
to employ qualified experts to inspect and address any area of concern. If any adverse
conditions are discovered, the Appraisers should be notified, as the Appraisers reserve
the right to change any opinion of value conclusions.
It is noted that in April of 2006, a hail storm did considerable damage to the city of
Salina. As a result, many of the roofs of both the residential and commercial properties
were damaged. Therefore, the condition of the roof covering is unknown to the
Appraisers, and the Appraisers are not qualified to determine the remaining economic life
or the estimated age of the roof. Professional inspections are recommended, and the
Client is invited and encouraged to employ qualified experts to inspect and address any
area of concern.
The Simrnons Company
8
...,
.1
../
.1
,./
.1
.:1
.'1
1;1
i I
I
.i I
,I
.' I
,I
,I
,I
,I
,I
ENVIRONMENTAL HAZARDS
A July 1, 2005 Salina Journal newspaper article indicated that there is an
underground plume of petroleum and solvent contamination from the Schilling Air Force
Base. It is 50 to 75 feet below the ground surface and covers much of the Salina Airport
Industrial Area. The article further indicates that the plume appears to be moving
northeast into a residential area, roughly a mile from city wells located in Salina's
downtown area. Currently, City Officials and officials with the Corps of Engineers are
studying the situation. In addition, according to a October 15, 2005 Salina Journal
newspaper article, "a recently discovered plume of intensely contaminated groundwater,
apparently the result of a grain fumigant spill 35 years ago, is moving across Salina's
north-central business district and is now within a couple hundred yards of a city well."
The plume originated from a site located at 501 North Santa Fe Avenue, a lot that was
once used as a staging area for a company that fumigated area grain elevators.
Currently, the Kansas Department of Health and Environment is working on the problem.
Unless otherwise stated in this report, the existence of hazardous material, which
mayor may not be present on the property, was not observed by the Appraisers. The
Appraisers have no knowledge of the existence of such materials on or in the property.
The Appraisers, however, are not qualified to detect such substances. The presence of
substances such as asbestos, urea-formaldehyde foam insulation, or other potentially
hazardous materials may affect the value of the property. This includes substances in
both buildings and soil, including subsoils. No responsibility is assumed for any such
conditions, or for any expertise or eng;neeri~g knowledge required to discover them. The
Client is urged to retain an expert in this field, if desired. Therefore, the opinions of value
are predicated on the extraordinary assumption that there are no environmental hazards
on or in the property that would cause a loss in value, that the subject property has an
adequate supply of safe drinking water, and that the subject property has no vapor
intrusion. If any adverse conditions are discovered, the Appraisers should be notified,
as the Appraisers reserve the right to change any opinion of value conclusions. Because.
the Appraisers are not experts in the field of environmental hazards, this appraisal report
must not be considered as an environmental assessment of the subject property.
Thf~ Simmons Cornpany
9
I
.
I
II
'I
II
SOURCE FOR SQUARE FOOTAGE (SIZE)
I
.' I
II
.]
I
.\
.' I
.1
I'
II
I
.1
II
.1
I
..
.1
II
It is common practice for real estate appraisers in the geographical area to utilize
county assessment records (ICS-Inventory Contents Sheets) for building improvement
and land size. For the most part, County personnel spend significant time measuring and
compiling size data, and this data is regularly updated when changes occur (through
building permit notification). Therefore, the benefit of using this data provides efficiencies
of time and also is helpful when access to properties (particularly comparable sales) is
not readily available. Users of this report should understand that assessment records are
most likely utilized in this appraisal for estimating the size of building improvements and
land, not only for comparable sales, but also for the subject property. Therefore, when
assessment records are utilized for estimating the size of building improvements and
land, it is based upon the extraordinary assumption that the measurements are accurate.
SALES HISTORY AND OWNERSHIP OF THE SUBJECT PROPERTY
The building was originally built new in 1984 for the purpose of providing
warehouse storage for the City of Salina and Saline County, and for providing locker
room facilities for North Junior High for U.S.D. #305. There have been no sales of the
subject building since it was originally built. The subject property has not been listed for
sale on the open market, and there are no known pending sales contracts for the subject
property. However, the intended use of this appraisal is for the sole purpose of assisting
the Client with internal decision making for a possible future sale, price of the subject
property.
The Simmons Company
10
.1
.'-1
.' I
.' I
.' I
.:1
.'1
.1
.: I
.1
.1
.1
.1
.1
.1
.1
.1
.1
.1
AREA DESCRIPTION
Salina is the county seat of Saline County and is located in north-central Kansas,
approximately 80 miles south of the Nebraska border and 173 miles west of the Missouri
border. The city has a population of approximately 46,000, with a county population of
approximately 54,000. It is located at the Interchange of Interstate 70 and Interstate 135.
This provides east/west access and north/south access for various industries.
Officials with the Schilling Air Force Base announced the closing of that facility in
the mid-1960's. The Salina population was slightly more than 40,000 at that time. In
1967, when the full effect of the closure had taken place, the population had declined to
nearly 37,000. For the next 24 years, growth was extremely flat, with only a 10 percent
total increase. The 2000 Census stated that Salina had a population of 45,679, which is
3,376 more residents since the 1990 Census. That's an average annual growth rate of
eight-tenths of 1 percent. Community leaders are hopeful that by the 2010 Federal
Census, Salina will have a population of 50,000, which would elevate Salina to be
considered a "metropolitan area", a designation that brings with it a host of benefits.
Retail/Commercial Development
This sector has increased significantly in recent years. In 1989, retail sales in
Salina equaled $408.3 million. This was a 44 percent increase over the previous five
years. By the end of 1995, sales increased to $751 million, an increase of 84 percent
in six years. The Mid-State Mall was constructed in 1971, and,a regional shopping center
named the Central Mall was constructed in 1986, which are both located on the South
Ninth Street Corridor. Four other major facilities are located along the South Ninth Street
Corridor, which include Wal-Mart SuperCenter, Sam's Club, Target, and Lowe's.
The downtown business district, like many in the Midwest, suffered when suburban
shopping areas were established. Like many downtowns, it has now become more
important as a financial, office, entertainment, and service center, with less reliance on
retail business. The former Fox Theatre was remodeled and turned into the Watson-
Stiefel Theatre for the Performing Arts in 2003. The downtown area has rebounded
nicely and has had some recent revitalization.
The Sirnmons Cornpany
11
.1
.-1
.'-/
.1
.'1
.'
.ul
.'
.1
.'
.1
.'
.1
.1
.1
.1
..\
.1
.1
Area Description
(Cont.)
There are numerous neighborhood centers, which comprise approximately 1.5
million square feet of retail space. It is estimated that the average overall occupancy rate
of the nine retail areas in the city are from 87 to 94 percent.
Industrial Development
There are essentially three industrial areas within the city. The South Industrial
Areas at the south edge of the city, along the east side of South Ninth Street. Part of this
area is located in the city limits, and part of it is located in the county. Major employers
include Philips Lighting Company, which is the World's Largest Manufacturer of
Fluorescent Lamps. It is located on a 70-acre site, and employs 543. Philips Lighting
completed a $50 million dollar expansion in 1997, and an $18 million dollar furnace
project in 2004. Exide Corporation is also located in the South Industrial area, which is
the largest battery production facility in the world. It employs 820 people, and produces
40,000 batteries per day. Another tenant in this area is Crestwood, Inc., cabinet
manufacturers, which in 1996, constructed a facility that has approximately 169,000
square feet of building area. In 2005, Crestwood, Inc. expanded its facility to have a total
of approximately 242,000 square feet of building area.
The Salina Municipal Airport Industrial Center is located along the east side of the
airport, west of 1-135, in the extreme southwest quadrant of the City. Salina's largest
employer, Tony's Pizza, is located in this area and employs about 1850 people. In
addition to Tony's PiZza, additional residents at the Airport Industrial Center include
Raytheon Aircraft Company, Eldorado National, Ovation Cabinetry, Power Ad, Salina
Vortex, the Kansas Army National Guard, Salina Area Technical School, and the campus
of Kansas State University-Salina. This Industrial Center contains approximately 4,000
acres, of which 600 are available for industrial and commercial development. The center
is home to 70 businesses, employing 4,500, and generating more than $100,000,000 in
payroll. In the late 1990's and early 2000's, the infrastructure and support services for
this area were greatly improved. The airport contains a main runway of more than 12,300
feet, and another 4,300-foot runway that was constructed in 2003. In the late 1990's and
The Simmons Cornpany
12
.-1
.-1
1'-'
.'1
.' I
.1
.1
.1
.1
II
I'
I'
II
.'
.1
I'
.1
.1
II
Area Description
(Cont.)
early 2000's, the infrastructure and support services for this area were greatly improved.
New construction in the area includes a new $5 million dollar 115,000 square foot
building for Salina Vortex. The building is projected to be completed in 2006, and will be
constructed on a 16-acre site at the corner.of Water Well Road and Centennial Road.
The airport contains a main runway of more than 12,300 feet, and another 4,300-foot
runway that was constructed in 2003. In February of 2005, the Salina Municipal Airport
received national and international media attention because pilot Steve Fossett
successfully completed a solo flight around the world, without stopping or refueling, in the
GlobalFlyer aircraft from the Salina Municipal Airport. Salina Municipal Airport was
chosen for this historic event because of its location, its facilities, and its 12,300 foot
runway.
In the northeast quadrant of the City, there are several small areas of industrial
development, which, for the most part, consist of small manufacturing and warehouse
properties. However, Great Plains Manufacturing is located in one of the areas,
manufacturing Farm machinery and landscaping equipment. They have a second facility
several miles south of Salina and employ approximately 800. Another tenant in North
Salina is A-Plus Galvanizing, a metal galvanizing plant that has the largest hot-dip
galvanizing tank in the world.
Lodging Facilities
There are about 28 motel facilities, offering approximately 2,000 rooms. The Best
Inn, with 35 units, was completed in 2003, and the Country Inn and Suites, with 72 units,
opened in 2000. The Candlewood Suites opened the summer of 1999, with 69 rooms.
The Hampton Inn, completed in mid-1998, has 70 rooms. The Holiday Inn Express,
containing 93 rooms, including one and two-bedroom suites, along with a meeting room
for 50, was completed in 1997. In 1985, a 192-room Holiday Inn/Holidome was
constructed, and it was remodeled in 2003. The Holiday Inn, Candlewood Suites, Red
Coach Inn, and Ramada Inn offer significant meeting and banquet facilities.. Also, a new
The Siinmons. CornDany
13
II
I
I
II
1'1
1:1
II
I]
II
II
II
II
II
II
I
I
II
I I
II
II
II
Area Description
(Cont.)
Courtyard by Marriott was completed in December of 2005, which has 80 rooms, and a
meeting space for up to 350 people.
Housing/Building Summary
Many new residential subdivisions have been established in recent years. The
following summary is of building permit activity for new single-family and multi-tenant
construction from 1995 through June of 2005.
Year Single-Family Attached Multi-Family TOTAL
Sinale-Familv
1995 100 35 0 135
1996 I 105 40 199 344
1997 87 . 28 8 123
1998 80 36 158 274
1999 82 28 6 116
2000 88 34 0 122
2001 71 16 72 159
2002 74 13 0 87
2003 91 17 0 108
2004 88 18 48 154
2005 67 18 109 194
Education
The school system consists of eight public grade schools, two public middle
schools, two public senior high schools and an alternative school for middle and high
school students. In 2003, the public school system completed approximately a $99
million dollar consolidation and renovation of the public schools. Six private schools
The Simmons Compar\)l
14
.1
.1
~I
.
.1
I
.
.1
.-1
.1
II
II
.1
I'
.1
.1
.'
. I
.1
.'
II
;
Area Description
(Cont.)
operate in Salina, with two providing high school classes, three offering middle school
classes, and four are for elementary school students.
Kansas Wesleyan is a four-year liberal arts college, with an enrollment of
approximately 800. Brown Mackie College has an enrollment of approximately 325
students and offers two-year associate degrees. Salina Area Technical School has an
enrollment of approximately 375 students and has full and part-time courses. Kansas
State University of Salina-College of Technology has an enrollment of 1,100. It is a
satellite campus of Kansas State University at Manhattan, Kansas. Programs include
Aeronautical Engineering, Civil Engineering, Electrical Engineering, Mechanical
Engineering, and Computer Science Technology.
Healthcare
Salina continues to be a regional healthcare center. In the mid 1990's, two
hospitals were consolidated into one hospital called the Salina Regional Health Center.
This consolidation helped pave the way for growth in the healthcare industry in Salina.
The Salina Regional Health Center has had a heart surgery program since 1999. The
Salina Surgical Hospital, an inpatient and outpatient facility, opened in 1999. In the early
2000's, the hospital expanded and remodeled its inpatient surgery facility, added the
Salina Medical Arts Building, and a five-level parking garage. In October of 2004, a new
37,000 square foot, $10.8 million dollar comprehensive cancer center was completed.
In addition, a new Hospice of Salina was completed in 2006. Salina Regional Health
Center in February 2006 began construction on a new $62 million dollar six-story patient
bed tower and renovation project, with a tentative completion date of December 2007 for
the new tower. The new tower will allow all patients to have larger private rooms, and will
allow Salina Regional to consolidate all of its services to one centralized location on the
Santa Fe Campus. The project will add about 240,000 square feet of building area to the
hospital.
The community also is served by 17 medical clinics, 12 private~practice offices, 11
chiropractic clinics, and about 150 doctors, surgeons, and dentists.
The Sirnrnons Cornpan}f
15
.1
-I
.
-,
.
'I
.
.'1
.1
.:-1
.1
, I
.
.'1
.1
'I
.
.1
.1
.'
.-'
..1
.1
.'
Area Description
(Cont.)
Arts, Cultural Events, Entertainment
Salina offers a wealth of performing arts and cultural events, The Bicentennial
Center has a 7,200 seat arena and 41,000 square feet of exhibition space that offers a
variety of entertainment. The Rolling Hills Zoo is home to 80 species of animals that are
housed in naturalistic settings. Other offerings include the Salina Symphony, Salina
Community Theatre, Salina Art Center, Salina Art Cinema, Watson-Stiefel Theatre for
the Performing Arts, and the Smoky Hill River Festival. Salina also offers 26 parks, five
museums and galleries, 80 restaurants, and more than 200 civic clubs and organizations.
Summary
The city enjoys a north-central location in the state, at the intersection of two
interstates. Salina has become increasingly important as a retail, healthcare, cultural,
and entertainment center for north-central Kansas. Five major manufacturers that
employ over 500 people are located in Salina. According to the June 2005 Chamber of
Commerce Report, a report for the fiscal year 2004 published by Kansas State University
showed that Saline County ranked fourth out of the state's 105 counties in county trade
pull-factor. A pull factor is a measure of the relative strength of a county's retail business
community. A pull factor greater than 1.00 means the county is attracting more business
than it is losing, and vice versa for counties with pull factors below 1.00. In addition,
according to a survey of 294 urban areas across the United States, Salina's cost of living
is below the national average. Salina's cost of living composite index for the first quarter
of 2005 was 83.7 percent, with the national average being 100 percent. The survey
included the cost of grocery items, housing, utilities, transportation, healthcare, and
miscellaneous items.
In conclusion, the City of Salina has had growth in both housing developments and
in business-related developments. It is believed that these trends will continue, and that
growth and economic development will continue to increase in Salina.
The ;:,)irnrnons Company
16
-I
.
I
.
I
.
.~I
.:1
'I
.
.'1
.' I
.,1
.' I
.1
II
I I
.1
.1
.J
.J
.1
.1
NEIGHBORHOOD DESCRIPTION
The subject neighborhood is located in the middle portion of the city. The
boundaries appear to be The Old Smoky Hill River Channel on the west, Iron Avenue on
the North, Crawford Street on the South, Ohio Street on the east. The neighborhood is
approximately 1 mile on the north and south, by 3/4 mile on the east and west. The main
traffic artery on the north and south is Ohio Street, which is a four-lane road that has a
center tuming lane. The main traffic arteries that run east and west through the
neighborhood are Crawford Street on the south, and Iron Avenue on the north. Crawford
Street is a four-lane road, Iron Avenue is a wide two-lane road.
The neighborhood consists of a general mix of properties, with an estimated 40
percent being residential-related, 30 percent being commercial related, and 30 percent
being City of Salina or Saline County properties. The residential-related properties are
scattered throughout the neighborhood, but the largest portion of them is located in the
northem part. The single-family properties are primarily older in age, approximately 40
to 100 years old. In addition, there have been very few newer residential properties built
in the neighborhood in the last 20 years. Located in the middle portion of the
neighborhood, is Kenwood Park. Located in the park, is the Bicentennial Center, which
is an approximately 7,200 seat arena, with 41,000 square feet of exhibition space used
for a variety of entertainment. Located to the north of this, is the City of Salina Municipal
Swimming Pool, and to the east, is the Saline County Expo Center. Located to the south
of Kenwood Park, is a popular YMCA that has been recently updated. To the east of this,
between the YMCA and Ohio Street, are three streets of professional offices. Located
around the perimeter of the neighborhood, on Crawford Street, Iron Avenue, and Ohio
Street, are mostly restaurants, car sales properties, and general retail properties.
In summary, the neighborhood is comprised of a wide range of land uses, which
most appear to be compatible, with no apparent unusual conditions. The neighborhood
is primarily made up of smaller commercial and professional office properties, residential
properties, and properties being City or County-improved recreational-type properties and
parks. The neighborhood is an older established one that is considered to be stable, and
supply and demand are in balance.
ThR Simmons Cornpany
17
i
.
.1
I
.
I
.
I
.
.:1
.]
.: I
.: I
.: I
.' I
.: I
, j
I
.'
.1
.-'
. I
. I
. J
SITE DESCRIPTION
At the request of the Client, only an opinion of market value for the building is
desired. Therefore, providing a detailed description for the tract of land that the building
is located on is not part of the scope of this appraisal.
However, a few important features of the site that the building is located on are
analyzed because they may affect the building at its current location.
The scope of this appraisal does not call for the Appraisers to provide a flood
determination for the subject site. However, the subject building is located in an area that
mayor may not be located in a FEMA Flood Zone A or Floodway Fringe. The Appraisers
do not know the FEMA flood determination and have not been provided a survey for the
land that the subject building is located on. However, if it is determined that the subject
building is located in a type of FEMA Flood Zone A or Floodway Fringe, the subject
building will be considered to be a legal. nonconforming grandfathered use. This is
important to note because if more than 50% of the structure is damaged, it will be
required that the structure be built to conforming regulations, which means that the
improvements will not be allowed to be rebuilt unless the site is brought to accepted
FEMA floodplain levels. Additionally, the property will be required to be built to a legal
conforming use for its zoning, meaning a legal use in the C-3 zoning. This is officially
explained in more detail in Section 42-578 letter (c) and in Section 42-579 letter (d) of the
Subdivision and Zoning Regulations by the City of Salina. FEMA determines the Flood
Zone by a visual inspection, but this is not guaranteed. Flood maps often lack sufficient
detail to enable accurate determinations on the part of the Appraisers. Because the
Appraisers are not surveyors, they make no guarantees, expressed or implied, regarding
the FEMA Flood determination.
The subject building is located on a parcel of land that is partially located in R-1
(Single-Family Residential District), and C-3 (Shopping Center District). Therefore,
according to John Burger who is an Associate Planner for the City of Salina, the subject
property is governed by the more restrictive zoning, which is the C-3 zoning.
Located north of the subject, is a parking lot, and farther north, is the Bicentennial
Center. West of the subject, is a recreational walking and jogging track, south, is a
parking lot, and east, are Saline County Expo Center buildings.
Tho Swnn10ns Cornpany
18
I
.
.-,
I
.
.'
.:1
.1
..--1
I
.
.' I
I
.
.'1
.'1
.,1
.'1
.1
.1
.'
.'
.1
"
~
"
g ~
~ ~
""
::,. '"
. ~
~ ~ !;<
< i '"
~ u
~ ~
. ;;l u
r z
< Q ~ ""
, 2 '"
=
x ~
0 :e;!;
~
~ 1l!l::5
< -=
....<i
g]
~
::;m
m~
:EO
=0
ZO
~
~-
~m
ZO
",,0
~~
>-
~
%
=
'"
~
u
~<D
~~
""~
=-
~..;
:!:~
~~
~~
~m
~~
,', &
; !J~
E i'lZb
g ~~ ~
.,.<"o".l:
~:~g~
~t:~i!s
~ :l: ~",;)l
~!H~
]"0'
w;Hll
u~'~u:
1j.;~~~
s~ ~ 'S ~
a6d~
~ r- "I'\."
ii~~~~
fi:u.";"i:i"
S ~:~.' It
:'l:'~ 1".;; ~
~~~~8
~:.{.g ","
~.:; c ~ E
d ~E ~
~ ~~~l
! lId 0IJI1lT1Ul1Sl:7)Il'!-'CllIY
19
1'1
1'1
"I
II
1'1
II
I
1\
1,1
II
II
II
II
II
I
1\
II
I]
II
.J
I'
,I
((It~ .....111 IlliU, I:::' 1.,Ufilf_lclll\"
20
I
II
1'-1
I'
I
II
'-I
I
I
II
I]
I
II
I: I
IHI
! I
I
1'1
1'1
IJ
II
I
1-'
1-'
II
II
DESCRIPTION OF IMPROVEMENTS
The subject of this appraisal is a pre-engineered steel frame metal building built
on a concrete slab foundation. The building is currently being used for warehouse
storage purposes for the City of Salina, Saline County, and U.S.D. 305.
According to assessment records, the building contains a total 10,800 building
square feet and was built in 1984. The exterior of the building is metal with a slightly
pitched metal roof, and the exterior building height is 16 feet. The west side of the
building has a small amount of brick veneer with three separate keyed doors, and the
exterior of the building has small mounted exterior lights.
The building was originally built new for the purpose of providing warehouse
storage for the City of Salina and Saline County, and for providing locker room facilities
for North Junior High for U.S.D. 305. Therefore, approximately the west 1/3 of the
building has two separate minimally-finished locker room facilities, with one formerly
being used for the home team locker room, and one formerly being used as the visiting
team locker room. The locker room floor covering is concrete, with floor drains. The
interior walls are concrete block, and the ceiling is concrete. The interior consists of
metal doors, metal door trim, hanging fluorescent lights, and electrical installed in conduit.
However, it is believed that with the construction of the new middle school, this portion
of the building has only been used for storage purposes. Located above the locker room
portion of the building, is a mezzanine that is used for additional storage in the building.
The mezzanine storage area has concrete flooring, insulated ceilings and walls, hanging
open lighting, and no heating or air-conditioning. The ceiling height is approximately just
under 6 feet tall on the perimeter, to a peak height of approximately 7 feet tall in the
center. The mezzanine area is only accessible on approximately the western 1/3 of the
building.
The warehouse portion of the building is a large open storage area that has two
overhead doors, two separate exterior doors, skylights, electrical installed in conduit,
insulated walls and ceilings, hanging fluorescent lights, and no heating or central air-
conditioning. The warehouse portion of the building constitutes approximately 2/3 of the
total building area, which is currently being used for storage purposes for the City of
Salina and Saline County.
The ~jirnrnons Company
21
.-1
.1
.1
..1
.
.1
.1
II
II
.1
I
..1
.:1
I;J
I
I'
..1
.1
.1
.1
II
.1
Description of Improvements
(Cont.)
The property is appraised in the "as-is" condition, and there were no known major
deferred maintenance items observed at the time of the site visil. Unless otherwise noted,
the Appraisers assume that the various elements that constitute the subject property are
fundamentally sound and in working order. The condition of the roof covering is unknown
to the Appraisers, and the Appraisers are not qualified to determine the remaining
economic life or the estimated age of the roof. Professional and environmental inspections
are recommended, and the Client is invited and encouraged to employ qualified experts
to inspect and address any area of concern. The Appraisers are not aware of any adverse
conditions. If any additional adverse conditions are discovered, the Appraisers should be
notified, as the Appraisers reserve the right to change any opinion of value conclusion.
In summary, the subject improvements were designed for a combination of
warehouse storage use, and locker room use. They are not so specific that the design
would limit them from being converted into different types of general warehouse storage
use. Based upon the neighborhood, the. style of buildings, and the age of the
improvements, the building improvements are considered to be of average overall quality,
and in average overall condition. The improvements are considered to be consistent with
surrounding land uses and the subject site location.
The Simmons CornpClny
22
I
I
II
I
I
II
1:-1
II
1-1
'I
I
1:1
1'1
Iii
.: I
.' I
.'
.1
II
II
1'/
IJ
SUBJECT PHOTOGRAPHS
East Side Of Subject Building
West Side Of Subject Building
...
Interior Of Locker Room
Interior Of Locker Room
Mezzanine Area
Interior Of Warehouse Area
The Sirnrnons COifjf!any
23
.-1
I'
IHI
1'1
.1
HI
I
II
.1
I: I
Iii
Ii I
I: I
.' I
I'
II
II
IJ
II
II
HIGHEST AND BEST USE
The highest and best use is the reasonably probable and legal use that will support
the highest present value as of the effective date of the appraisal. The use must be
physically possible, legally permissible, appropriately supported, financially feasible, and
maximally productive.
As Thouqh Vacant
At the request cif the Client, only an opinion of market value for the building is
desired. Therefore, providing a detailed description of the highest and best use for the tract
of land as though vacant is not part of the scope of this appraisal. Generally, the estimated
highest and best use of the property, as though vacant, is for a use allowed in the current
zoning that is compatible with surrounding and nearby land uses. Located north of the
subject, is a parking lot, and farther north, is the Bicentennial Center. West of the subject
is a recreational walking and jogging track, south is a parking lot, and east are Saline
County Expo Center buildings. Generally, the highest and best use, as though vacant,
would consist of a use that is complimentary to supporting the govemmental land and
buildings in the surrounding areas.
As Thouqh Improved
The subject improvements contain 10,800 total building square feet. The size of this
building is considered to be at the lower end of the medium sized facilities, which fits a
category required by users. Generally, properties of this type are in average demand in
the marketplace.
The building was originally built new for the purpose of providing warehouse storage
for the City of Salina and Saline County, and for providing locker room facilities for North
Junior High for U.S.D. 305. However, it is believed that with the construction of the new
middle school, the locker room' portion of the building has only been used for storage
purposes, Additionally, located above the locker room portion of the building, is a
mezzanine area that provides additional good usable storage area. In conclusion, the
estimated highest and best use of the property, as though improved, is for continued
warehouse storage use.
The Sirnrl10ns Cornp<1ny
24
I~I
II
'-I
.
1'1
I-I
I
.
.'1
II
.1
."
1'1
.: I
.' I
.1
.1
.J
.,1
.1
.'
SALES COMPARISON APPROACH
The sales comparison approach is a method of estimating value where the subject
property is compared with sales of similarly-improved properties. It is noted that the subject
building is located on a large tract of land that is owned by the City of Salina. However, at
the request of the Client, only an opinion of market value for the building is desired. In
order to do this, the Appraisers extracted out the opinion of land value from the comparable
sales that were used in the sales comparison approach in this appraisal.
The improved comparables are individually described and outlined elsewhere in this
section, along with a comparable sales grid which outlines adjustments for dissimilarities.
However, the following is a brief summary.
Three properties that are classified as prefab processing warehouse properties that
have sold in the last two years in Salina are used for this analysis. Improved Comparable
Sale No.1 is located at 668 North Ohio Street and sold in 2005. Improved Comparable
Sale No.2 is located at 913 York Street and sold in 2004. Improved Comparable Sale No.
3 is located at 304 East Pacific Avenue and sold in 2006.
In order to provide an opinion of value for the subject building only, the opinion of
site value for each comparable must be extracted out from its total sales price on its date
of sale. The results of this provide an opinion of value for the improvements only for the
comparable at its date of sale. The opinion of site value for the com parables is valued by
comparing it with similar tracts of land that have sold recently. The land comparable sales
that are used to derive the opinion of site value for each improved comparable are
individually described and outlined elsewhere in this section. The comparables were first
adjusted for time of sale. Generally, commercial real estate in the central Kansas market
has appreciated at approximately a 3 percent rate, on an annualized basis. After the time
of sale adjustment, the sites were then each compared on a price per square foot basis for
location, size, features/physical condition, and excess land. The following, is a summary
of the indications and conclusions.
The Sinlf"flOnS Company
25
I-I
1'1
.-/
1"1
.' I
./
I~I
Iii
.;1
Ii I
1'1
.11
.:1
.'/
.: I
.'
I'
I'
II
IMPROVED SALE NO. 1
Property Identification
Record .10
Property Type
Property Name
Address
Tax 10
1117
Industrial, Light Industrial
Precision Electrical Contractors
668 N. Ohio Street, Salina, Saline County, Kansas 67401
085.093-07-0-20-03-020.00-0-01
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Marketing Time
Conditions of Sale
Financing
Verification
Michael Lamone
Precision Electrical Contractors, LLC
October 4, 2005
11151748
Fee Simple
DOM-74
Valid Sale
New loan from a financial institution
Jeff Holgerson; Other sources: SVQ, ICS, Drive-by, Fletcher
Simmons
The Simrnons Company
26
.1
.1
.1
.1
.'1
.1
.]
.1
.:1
.:1
.'1
.i I
.1
.iJ
.' I
.1
.1
.1
.1
IMPROVED SALE NO, 1 (Cont.)
Sale Data (Cont.)
Sale Price
$238,000
Land Data
Land Size
Front Footage
Zoning
Topography
Utilities
Dimensions
Shape
Landscaping
Fencing
Flood Info
1,157 Acres or 50,400 SF
240 ft
1-2
Basically level
City of Salina
240' X 210'
Approximately rectangular
Minimal
Chain link
FEMA Zone B
General Phvsical Data
Building Type
Gross SF
Area Breakdown
Single tenant
18,600
Finished office
Warehouse
1,584 dated finish
17,016
Construction Type
Roof Type
Foundation
HVAC
Sprinklers
Stories
Floor Height
Pre-engineered steel
Metal
Concrete slab
Partial
None
1
14,15
Indicators
, Sale Price/Gross SF
Floor Area Ratio
Land to Building Ratio
$12,80
0,37
2,71:1
Remarks
Property is located on the east side of North Ohio Street, at the corner of North Ohio Street and Prospect
Street. There are two ingress/egress points to North Ohio Street, and one to Prospect Street. The land-to-
building ratio is 2,71, which is considered adequate, but at the lower end of the acceptable range,
Therefore, there is no excess land, Building was constructed in 1972, with additions in 1974 and 1988, The
1,584 square feet of office finish are dated, but functional. The office finish is heated and cooled, According
to the former owner of the subject property, the building was leased for $3,500 per month, plus the tenant
paid real estate taxes and insurance costs, The lease ended in April of 2005, and it was the previous
owner's opinion that the lease was negotiated at a slightly lower rate because the tenant had also agreed
to lease a property on North Seventh Street during the early years of the lease for $1 ,000 per month, which,
in his opinion, was above-market rent.
nie Simmons Company
27
I
I
'I
I
'I
.
I-I
I
I
II
1-1
II
.;1
IJ
I
COMPARABLE SALES GRID FOR 668 N. OHIO STREET
SUBJECT LAND LAND LAND
SITE COMP#1 COMP#2 COMP #3
Estimated Address _ 668 N. E. 925
N.Ohio Front North E.North
Salina Salina Salina Salina
Adjusted Price $40,00 $45,411 $87,560
Estimated Total Size (5. F.) 50,400 28,532 34,608 65,340
Price Per Square Foot $1.4 $1.31 $1.3'
Sale Date Mar{} FelrD: Apr-QL
Zoning 1-2 I, I- I,
Adiustments:
Time (Date of Sale) 0% 0% 3%
Indicated Value $1.4C $1.31 $1.3
Location 20% 20% 20%
Size -10% -10% 0%
Features/Physical Condition 0% 0% 0%
Excess Land . O'/' 0% 0%
Net Adjustments ('/~ 10% 10% 20%
Net Adjustments ($) $0.1' $0.1 $0.21
Indications: Sale Price/Gross SF $1.", $1.4< $1.6(
Subject Indicated Values:
Sale Price/Gross SF $77,616 $72,576 $83,664
Based upon the sales oomparison approach from market data, the "as-is" opinion of value
for the subject tract (as though vacant) as of October 4, 2005, is (rounded):
(Effective date of valuation is the sale date of the improved subject property)
$78,000
Sale Price of 668 N. Ohio Street IMth improvements on October 4, 2005:
Extracted site value on October 4, 2005:
$238,000
( - ) $78.000
II
II
.1
II
Opinion of value for the improvements only for 668 N. Ohio Street on October 4, 2005:
$160,000
The Simmons COrrlDa('lY
28
I
.
nl
.
.1
.'1
.' I
.' I
.:-1
.'1
.,1
.' I
.'-1
.:1
.1
.'
. 1
.1
.1
.1
.1
LAND SALE NO. 1
Property Identification
Record ID
Property Type
Property Name
Address
Tax ID
1102
Industrial
Vacant industrial lot
North Front Street, Salina, Saline County, Kansas 67401
085-081-12-0-10-07 -004,00-0
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Financing
Verification
Salina Iron & Metal Company
Brad Murray Rentals, LLC
March 17, 2005
1100/1309
Fee Simple
Cash
Jeff Holgerson; Other sources: SVQ, ICS, Exterior drive-by
Sale Price
$40,000
Land Data
Zoning
Topography
Utilities
Dimensions
Shape
Landscaping
Flood Info
1-3, Heavy Industrial
Level
Public
75'x290'130'x140'x139'
Irregular
Turf
Zone B
Land Size Information
Gross Land Size
Front Footage '
0,655 Acres or 28.532 SF
75ft
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Sale Price/Front Foot
$61,069
$1.40
$533
Remarks
Property is located Y, block north of East North Street on the east side of North Front Street. It is located
between railroad tracks, and between the large Salina Regional Health Center warehouse and Premier
Pneumatics, The planned use of the site is not known at this time, SVQ states that the sale involved no
special factors, that the property was made available to other potential purchasers, and that there are no
facts which would cause this sale to be a non-arm's-Iength/non-market value transaction.
The Simmons CornpGny
29
I
.
..1
'1
.
.1
.1
...1
.]
.' I
.' I
.'-1
LAND SALE NO.2
Property Identification
Record 10
Property Type
Property Name
Address
Tax 10
1101
Industrial, Light Industrial
Pavers Inc.
East North Street, Salina, Saline County, Kansas 67401
085-081-12-0-10-05-006.02-0-01
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Financing
Verification
stan ion Wholesale Electric Company, Inc.
Pavers, Inc.
February 9, 2005
1098/432
Fee Simple
Cash
Jeff Holgerson; Other sources: ICS, SVQ, Exterior drive-by
Sale Price
$45,411
Land Data
Zoning
Topography
Utilities
Shape
Landscaping
Parking
Fencing
Flood Info
1-2
Level
Public
Irregular
Turf/ minimal trees
None
None
Zone B
Land Size Information
Gross Land Size
Front Footage
0.794 Acres or 34,608 SF
239 ft
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Sale Price/Front Foot
$57,157
$1.31
$190
Remarks
Property is located Y, block west of Ohio Street on East North Street It is located just west of the new Hoff
Machine that was built in 2004/2005. Property backs up to the railroad tracks that are believed to be
vacated with the completion of the North Ohio Street overpass project Property currently has no existing
improvements, and the planned use of the site is not known at this time. However, the grantee of the site
owns the business on the north side of the tracks, and it is assumed that it will be for expansion of his
existing property.
The Sirnrnons Company
30
.'j
.-1
.1
II
I'j
1'1
)
I-I
I
II
.: I
I,J
I"j
.1
.1
.' I
II
II
II
II
!
Ii
LAND SALE NO.3
Property Identification
Record 10
Property Type
Property Name
Address
location
467
Industrial, Light Industrial
Hoff Machine and Welding Site
925 East North Street, Salina, Saline County, Kansas 67401
Address is Approx.
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Verification
Stanion Wholesale Electric Company
Hoff Machine and Welding Inc.
April 26, 2004
1076-1455
Fee
Lee Hoff; County Records; Confirmed by Fletcher Simmons
Sale Price
$87,563
land Data
Zoning
Topography
Utilities
1-2, Heavy Industrial
Level
City
Land Size Information
Gross land Size
1.500 Acres or 65,340 SF
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
$58,375
$1.34
Remarks
This site was separated from the extreme west side of the existing Stanion Electric property. It is located
about 500 feet west of the corner of North Street and the North Ohio Street intersection. it will be utilized
for the relocation of Hoff Machine and Welding facility, It is level and located along the north side of North
Street.
The Simmons Cornpany
31
-I
.
.'1
.' I
.1
.:'-1
,.1
,]
.' I
,: I
.:'1
.' I
.:1
.,)
.1
.1
.J
, I
.
.1
.1
IMPROVED SALE NO.2
Property
Identification
Record ID
Property Type
Property Name
Address
Location
Tax ID
739
Industrial, Warehouse
Warehouse Property
913 York Street, Salina, Saline County, Kansas 67401
Off of North Ohio Street
0850811201003001.000
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Financing
Sale History.
Verification
R.C. of Salina
Carl David & Susan Kay Rose
August 6, 2004
1085-855
Fee
Labelle Bank
07-16-94 for $90,000
County Records; Simmons Co 2004-240; Confirmed by Jeff
Holgerson
Sale Price
Downward Adjustment
Adjusted Price
$137,500
$34,000 Excess Land
$103,500
Land Data
land Size
Zoning
Topography
Utilities
1,610 Acres or 70,132 SF
1-2, Industrial Park District
Level
City
General Phvsical Data
Building Name
Warehouse
The Sirmnons Company
32
-I
II
I
I
'1
I
II
.1
.1
.'-1
.,1
.: I
II
.'\
'j
.' I
I
II
.1
.-1
.J
.J
.-1
.'
IMPROVED SALE NO. 2 (Con!.)
Building Type
Gross SF
Construction Type
Roof Type
Foundation
Electrical
HVAC
Stories
Year Built
Condition
Single tenant
4,000
Steel Frame
Steel
Concrete
in conduit
Hanging gas
1
1989
Average
Indicators
Sale Price/Gross SF
Floor Area Ratio
land to Building Ratio
$25.88 Adjusted
0.06
17.53:1
Remarks
I n addition to the above stated information, this property has 1 acre of excess land that could be separated
and sold off. The excess land is located adjacent east of the building and has frontage along the north side
of York Street. The building has good usability, with 432 square feet of average office space and two
restrooms, and has central HVAC. The warehouse is fully insulated (walls and ceiling) skylights and hanging
gas-fired heat. There is one large overhead door.
The Sir-nrnons COfnDCHW
33
.1
.1
.1
.'1
.:-\
.1
.J
.'
.,'1
.'1
.: I
., I
., I
.1
.1
.1
.i
.1
.1
COMPARABLE SALES GRID FOR 913 YORK STREET
SUBJECT LAND LAND LAND
SITE COOP#! COOP #2 COOP #3
EstilTEted Address . 913 N. E. 925
York Front North E. North
Salina Salina Salina Salina
Mjusted Price $40,00( $45,411 $87,56,
EstilTEted Total Size (S. F.) 113,903 28,532 34,608 65,340
Price Per Square Foot $1.4 $1.31 $1.34
Sale Date Mar-o Feb-OE Apr-04
Zoning 1.2 I- I- 1-<
Adjustments:
Time (Date of Sale) .3% _3'1. 0%
Indicated Value $1.3t $1.2 $1.3'
Location 0% 0"1. 0%
Size -30"1. -30"1. -20'1.
FeaturesJPhysical Conditioo 0% 0"1. 0'1.
Excess Land -20% -20% .20'1.
Net Adjustments (%) _50'1. -50% -400/0
Net Adjustments ($) ($0.68 ($0.64) ($0.54
Indications: Sale Price/Gross SF $0.68 $0.62 $OBC
Subjecllndicated Values:
Sale Price/Gross SF $77,454 $71,759 $91,122
Based upon the sales comparison approach from market data, the "as-is" opinion of value
for the subject tract (as though vacant) as of August 6, 2004, is (rounded):
(Effective date of vauation is the sale date of the irrproved subject property)
$78, CXXl
Sale Price of 913 York Street with improvements on August 6, 2004:
Extracted site value on August 6, 2004:
$137,500
( - ) $78, CXXl
Opnioo of value for the irrprovements only for 913 York Street on October 4, 2005:
$59,500
Till':' Simmons Conipany
34
-I
. i
.1
'I
.
.-,
'I
.
I
.
.'1
.'1
.:1
.'1
.:1
.:)
.'1
.'
.1
.-'
.'1
.1
.)
LAND SALE NO. 1
Property Identification
Record I D
Property Type
Property Name
Address
. Tax ID
1102
Industrial
Vacant industrial lot
North Front Street, Salina, Saline County, Kansas 67401
085-081-12-0-10-07-004.00-0
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Financing
Verification
Salina Iron & Metal Company
Brad Murray Rentals, LLC
March 17, 2005
1100/1309
Fee Simple
Cash
Jeff Holgerson; Other sources: SVQ, ICS, Exterior drive-by
Sale Price
$40,000
Land Data
Zoning
Topography
Utilities
Dimensions
Shape
Landscaping
Flood Info
1-3, Heavy Industrial
Level
Public
75'x290'130'x140'x139'
Irregular
Turf
Zone B
Land Size Information
Gross Land Size
Front Footage
0.655 Acres or 28,532 SF
75ft
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Sale Price/Front Foot
$61,069
$1.40
$533
Remarks
Property is located Y, block north of East North Street on the east side of North Front Street. It is located
between railroad tracks, and between the large Salina Regional Health Center warehouse and Premier
Pneumatics. The planned use of the site is not known at this time. SVQ states that the sale involved no
special factors, that the property was made available to other potential purchasers, and that there are no
. facts which would cause this sale to be a non-arm's-Iength/non-market value transaction.
The Simmons Compnny
35
I
.
.1
.'1
."1
, I
I
.:1
.'J
.,1
.,J
.:1
.' I
.'1
."
.' I
.'
.'1
..1
.1
.J
LAND SALE NO. 2
Property Identification
Record ID
Property Type
Property Name
Address
T ax'lD
1101
Industrial, Light Industrial
Pavers Inc.
East North Street, Salina, Saline County, Kansas 67401
085-081-12-0-10-05-006.02-0-01
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Financing
Verification
Stanion Wholesale Electric Company, Inc.
Pavers, Inc.
February g, 2005
1098/432
Fee Simple
Cash
Jeff Holgerson; Other sources: ICS, SVQ, Exterior drive-by
Sale Price
$45,411
Land Data
Zoning
Topography
Utilities
Shape
Landscaping
Parking
Fencing
Flood Info
1-2
Level
Public
Irregular
Turf/ minimal trees
None
None
Zone B
Land Size Information
Gross Land Size
Front Footage
0.794 Acres or 34,608 SF
239 ft
Indicators
Sale Price/Gross Acre
Sale. Price/Gross SF
Sale Price/Front Foot
$57,157
$1.31
$190
Remarks
Property is located Yz block west of Ohio Street on East North Street It is located just west of the new Hoff
Machine that was built in 2004/2005. Property backs up to the railroad tracks that are believed to be
vacated with the completion of the North Ohio Street overpass project Property currently has no existing
improvements, and the planned use of the site is not known at this time. However, the grantee of the site
owns the business on the north side of the tracks, and it is assumed that it will be for expansion of his
existing property.
The ~Jir(jrnons COfTipany
36
I
.
I
I
'I
.
1../
i I
.
1'1
.-1
1'-1
1:1
.: I
.'1
.: I
.1
.J
.1
II
IJ
.1
.'
LAND SALE NO. 3
Property Identification
Record ID
Property Type
Property Name
Address
location
467
Industrial, Light Industrial
Hoff Machine and Welding Site
925 East North Street, Salina, Saline County, Kansas 67401
Address is Approx.
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Verification
Stanion Wholesale Electric Company
Hoff Machine and Welding Inc.
April 26, 2004
1076-1455
Fee
lee Hoff; County Records; Confirmed by Fletcher Simmons
Sale Price
$87,563
land Data
Zoning
Topography
Utilities
1-2, Heavy Industrial
Level
City
land Size Information
Gross land Size
1.500 Acres or 65,340 SF
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
$58,375
$1.34
Remarks
This site was separated from the extreme west side of the existing Stanion Electric property. It is located
about 500 feet west of the corner of North Street and the North Ohio Street intersection. It will be utilized
for the relocation of Hoff Machine and Welding facility. It is level and located along the north side of North
Street.
The Simmons Company
37
II
II
.
I
.
'I
.
.' I
.1
.]
.: I
.'1
. ::1
'I
.
.~ I
, I
.
.'1
.1
.1
.,1
.1
.1
IMPROVED SALE NO. 3
Propertv Identification
Record ID
Property Type
Property Name
Address
Tax ID
56
Warehouse, Warehouse
Leister
304 East Pacific Avenue, Salina, Saline County, Kansas 67401
085-081-12-0-20-03-002-00-0-01
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Conditions of Sale
Financing
Verification
Fastenal Company
Randy & Amber Leister
March 2, 2006
1124490
Fee,Simple
Assumed at market
Cash
Jeff Holgerson; Other sources: Assessment records, SVQ, Exterior
Drive-by
The Simmons CornpallY
38
I
I
.-/
'I
.
I
.
.'1
.1
.J
.,1
.' I
.'1
.: I
.' I
.' I
.1
.1
.1
.1
.-1
.1
IMPROVED SALE NO. 3 (Cont.)
Sale Data (Cont.)
Sale Price
$138,000
Land Data
Land Size
Front Footage
Zoning
Topography
Utilities
Dimensions
Shape
Landscaping
Rail Service
Flood Info
0.717 Acres or 31,250 SF
375 ft Total Frontage: 125 ft E. Pacific Avenue; 250 It N. 4th Street
C-6
Generally level
City of Salina
125' x 250'
Approximately rectangular
Minimal
None
FEMA Zone B
General Phvsical Data
Building Name
Building Type
Gross SF
Construction Type
Roof Type
Foundation
HVAC
Sprinklers
Stories
Floor Height
Leister
Single tenant
7,950
Pre-engineered steel
Metal
Concrete slab
Multi-use sales area
None
1
12,16
Indicators
Sale Price/Gross SF
Floor Area Ratio
Land to Building Ratio
Site Value to BuildingValue
$17.36
0.25
3.93:1
1:2.54
Remarks
Property is located at the southeast corner of East Pacific Avenue and North 4th Street. The building was
previously used by the a distributor of industrial and construction supplies. The property consists of two
buildings that are adjacent to each other. One pre-engineered steel building was built in 1971, has one
overhead door, 12 feet exterior wall height, 2,338 square feet of warehouse space, and 1,862 square feet
of multi-use sales space. The warehouse space has unit heaters, and multi-sales space has hot air heating
and central air conditioning. The second pre-engineered steel building was built in 1996, has 3,750 building
area, 16 feet exterior wall height, overhead door, and unit heaters. SVQ states that the sale involved no
special factors, that the property was made available to other potential purchasers, the sale involved no
personal property, the sale did not include an existing business, that the property was not rented or leased
at the time of sale, and that there are no facts which would cause this sale to be a non-arms length/non-
market value transaction.
Extracted opinion of site value at date of sale (03102106):
Opinion of value of building only at date of sale (03/02106:
Ratio of site value to building value: 1 :2.54
$39,000
$99,000
The Simmons Company
39
I
I
IWI
.'1
I'"
I]
I'
I]
I' I
.:/
.1 I
1'1
.' I
.' I
.1
I
.
.' I
.1
.1
.1
COMPARABLE SALES GRID FOR 304 E. PACIFIC AVENUE
SUBJECf LAND LAND LAND
SITE COMP #1 COMP#2 COMPI/3
Estimated Address 304 E. 700N. Clarki 500S.
Pacific Santa Fe Holida' Clark
Salina Salina Salina Salina
Adjusted Price $22,OOC $35,OOC $36,00
Estimated Total Size (S. F.) 31,250 12,500 34,833 47,520
Price Per Square Foot $1.7 $1.OC $0.7
Sale Date Jan-O< Dec,04 May.O
Zoning (;,6 (;. (;.~ (;.
Adiustments:
Tirre (Date of Sale) 60/. 30/. 30/.
Indicated Value $1.8 $1.0, $0.7
Lcx::ation iff< 200/. 200/.
Size .300/. 00/. 200/.
Features/Physical Condition 00/. 00/. 00/.
Excess Land 00/. 00/. 00/.
Net Adjustments ('!o) .300/. 200/. 400/.
Net Adjustments ($) ($0.$ $0.21 $0.31
Indications: Sale Price/Gross SF $1.31 $1.2 $1.0c
Subject Indicated Values:
Sale Price/Gross SF $40,938 $38,750 $34,063
Based ufXln the sales corrparison approach from marl<et data, the "as-is" opinion of value
for the subject tract (as though vacant) as of March 2, 206, is (rounded):
(Effective date of valuation is the sale dale of the improved subject property)
$39,000
Sale Price of 304 E. Padfic Avenue w!h improverrents on Maid) 2, 2006:
Extracted site value on March 2, 2006:
$138,000
( . ) $39,000
Opinion of value for the improvements only for 304 E Padfic on March 2, 2006:
$99,000
The ~3imrnons Cmnnany
40
.1
.' I
.'
.'-1
.'1
, I
.
..1
.'1
.:1
.: I
.: I
: I
.'
.' I
.1
I: ,
1,1
..1
..1
I'
LAND SALE NO. 1
Propertv Identification
Record ID
Property Type
Address
Location
TaxlD
544
Commercial
700 North Santa Fe Avenue, Salina, Saline County, Kansas 67401
North Salina
085-081-12-0-20-12-0-20-12-009.00-0-01
Sale Data
Grantor
Grantee
Sale Date
Financing
Verification
Ronald Diehl
D. Wayne & Norma Montgomery
January 26, 2004
Cash
Jeff Holgerson; Other sources: ICS, SVQ, Drive-by, MLS; Confirmed
by Jeff Holgerson
Sale Price
$22,000
Land Data
Zoning
Topography
Utilities
Dimensions
Shape
Commercial C-5
Level
Public
125' x 100'
Approximately rectangular
Land Size Information
Gross Land Size
Front Footage
0.287 Acres or 12,500 SF
125 It
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Sale Price/Front Foot
$76,666
$1.76
$176
Remarks
This is a corner lot located on the east side of Norlh Santa Fe Avenue, just north of Grand Avenue.
According to MLS, it was listed for sale al $27,000 and had 77 Days on Market. Property also has a metal
building for storage that adds little, if any, value. Site has been improved with a new metal building that
appears to be a storage warehouse.
The Simmons Company
41
1'1
.'j
.1
1"1
.' I
II
I]
.:1
.:1
III
II
I: I
.' I
1'1
I'j
1..1
II
I'
I'
LAND SALE NO. 2
Propertv Identification
Record 10
Property Type
Property Name
Address
Tax 10
1232
Commercial
Victory Baptist Church Site
SW corner of Clark/Holiday, Salina, Saline County, Kansas 67401
085-086-14-0-30-03-004.08-0-01
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Marketing Time
Financing
Verification
Emil W. Loebbert
Victory Baptist Church
December 10, 2004
1094/0711
Fee Simple
123 DOM
Cash
Jeff Holgerson
Sale Price
$35,000
Land Data
Zoning
Topography
Utilities
Shape
Landscaping
Rail Service
Fencing
Flood Info
C-5, Commercial C-5
Basically level
City of Salina
Reverse L -shaped
Turf
None
None
Zone B
Land Size Information
Gross Land Size
Front Footage
0.800 Acres or 34,833 SF
210 It
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Sale Price/Front Foot
$43,769
$1.00
$167
Remarks
This tract of land is located approximately 1 block east of Broadway Boulevard, and 1 block south of South
Street. It is also located on the southwest corner of South Clark Street and Holiday Street. The site has
access to City of Salina water and sewer. According to MLS, the property was listed for sale on 8/12/2004
and closed for sale on 12/13/2004. Therefore, this sale had a 123 DOM (Days on Market). The site was
originally listed for $68,000, but this was for approximately 1.42 acres. Therefore, only part of the site
actually sold for $35,000. SVQ states that the buyer is a religious association, that the property was made
available to other potential purchasers, and that there are no facts which would cause this sale to be a "non-
arm's-length" (non-market value) transaction
The Sirnrnons COII1Pnny
42
".1
j
I
.1
Ii
1.1
LAND SALE NO.3
Property Identification
Record ID
Property Type
Property Name
Address
Tax ID
1231
Commercial
Vacant C-5 site
500 S. Clark Street, Salina, Saline County, Kansas 67401
085-086-14-0-30-03-004.05-0-01
i l'
I: i
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Financing
Verification
Clifford & Deanna Clark
Gile Enterprises, Inc.
May 3, 2005
1103/0919
Fee Simple
Cash
Jeff Holgerson; Other sources: Site visit, ICS Sheet, SVQ
. Sale Price
$36,000
Land Data
Zoning
Topography
Utilities
Shape
Landscaping
Rail Service
Fencing
Flood Info
C-5, Commercial C-5
Basically level
City of Salina
Approximately rectangular
Turf
None
None
Zone B
I
,1
Land Size Information
Gross Land Size
Front Footage
1.091 Acres or 47,520 SF
240 It
, I
,
..J
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Sale Price/Front Foot
$33,000
$0.76
$150
:1
1,1
II
I'
I
Ii
.1
II
Remarks
This tract of land is located approximately 1 block east of Broadway Boulevard, and 1.5 biocks south of
South Street. it is also located on the west side of South Clark Street, and adjacent to the east side of the
Village Inn on Broadway. The site has access to City of Salina water and sewer. The site also sold May
of 2000 for $42,600, according to the County Appraiser's Office. According to MLS, the site was listed for
sale for approximately 290 days in June of 2003. The site was originally listed for $49,000, and then lowered
to $41,000, but did not close for sale. The tract was then relisted for sale in January of 2005 for $38,000,
and then closed for sale in May of 2005 for $36,000. Therefore, the relisted sale had a 97 DaM (Days on
Market). It is not known for certain, but it is believed that the site will be improved with large sized storage
units in the future. SVQ states that the sale involved no special factors, that the property was made
available to other potential purchasers, and that there are no facts which would cause this sale to be a "non-
arm's-length" (non-market value) transaction
ThE~ Simmons Company
43
.1
.1
-'I
.
-I
.
'.1
.
.1
'I
.1
.'1
.'1
.'1
.1
.' I
.' I
.' I
.' I
.1
.'
.1
.1
Sales Comparison Approach
(Cont.)
After the opinion of value, for the improvements only, for the com parables at its date
of sale are determined, they are then compared to the subject building. The sales have
been adjusted 3 percent, per year, to reflect the passing of time since each occurred. This
is due to general commercial sales data, which indicates the sale prices for commercial
properties located in the Midwest have appreciated at rates which vary between 2 and 5
percent, per year, over recent years, due to factors not related to demand and supply in the
marketplace. It is estimated this appreciation is largely due to inflationary pressures in the
general economy.
After the time of sale adjustment, the properties were each compared to the subject
building on a price per square foot basis for age/condition, size, quality/features, and
basement. It is noted that no adjustment is considered for location and site size because
this has already been considered in the site value for the comparables. Therefore, the
sales grid compares the comparable buildings only to the subject building only. The basis
for the age/condition comparisons is because older properties are subject to a larger
amount of physical depreciation as they grow older, which is estimated to represent a
reduction of market value. The effective age of the improvements is considered based
upon an estimated physical and economic life-expectancy taken from life-expectancy
guidelines from the Marshall Valuation Service. Improved Comparable Sale NO.1 and No.
3 have an adjustment for this because they are considered to be in inferior overall condition
compared to the subject. Next, an adjustment is made for building size. Size adjustments
are based upon a trend for smaller improvements to typically sell for a higher price per
square foot than larger ones, with all other factors being equal. Next, adjustments for
. quality/features are made to the comparables. Comparable Sale No.3 has an adjustment
for this because it has 1,862 square feet of multi-use sales area that has heating and
central air-conditioning, and its warehouse area is reported to be heated. In all,
Comparable Sale NO.3 is considered to have more desired market features compared to
the subject. It is recognized that Improved Comparable Sale NO.1 has 1,584 square feet
of finished office space, but this area is reported to be dated. Additionally, Improved
Comparable NO.2 has 432 square feet of average finished office space with heat and
central air-conditioning. In conclusion, no adjustments are made to Improved Comparable
The Simrnons C~orrj!Jany
44
.1
.1
.' I
.:1
.'1
.1
.'1
.: I
.:1
.1
.' I
.' I
.'
.1
.1
.1
.1
.1
.1
Sales Comparison Approach
(Cont.)
Sale NO.1 and NO.2 for their quality/features because they are estimated to be equal in .
value to that of the subject. Lastly, no adjustment is made to the comparables for
basements because they are all built on slab foundations, as is the subject building.
In summary, the range of the adjusted indications is between $12.45 and $13.40.
Therefore, an indication of approximately slightly above $12.85 per square foot is
bracketed by market data. In conclusion, based upon the sales comparison approach from
market data, the "as-is" opinion of value for the subject building only, as of July 20, 2006,
subject to the extraordinary assumptions and hypothetical conditions set forth, is (rounded):
$139,000.
IMPROVED COMPARABLE SALES GRID
SUBJECT COMPo #1 COMPo #2 COMPo #3
505 668 913 304 E.
Kewood N. Ohio York Pacjfic
Salina Salina Salina Salina
Adjusted Price (w/o Land) $160,000 $59,500 $99.000
Size - Above Ground 10,800 18,600 4,000 7.950
Price /SF Above Ground $8.60 $14.88 $12.45
Sale Dale 10/2005 08/2004 03/2006
Age at time of sale 33,31,17 15 35,10
Site Size 0 0 0 0
Land to Building Ratio 0.00 0.00 0,00 0.00
Basement SF 0 0 0 0
ADJUSTMENTS
Time of Sale 3% 6% 0%
Adjusted Indication $8.86 $15.77 $12.45
Age I Condition 30% 0% 15%
Size - SF Above Ground 15% -15% 0%
Quality I Features 0% 0% -15%
Basement 0% 0% 0%
Net Adjustments (%) 45% -15% 0%
Net Adjustments ($) $3.99 -$2.37 $0.00
Indications (S.F.) $12.85 $13.40 $12.45
Indicated Value $138,780 $144,720 $134,460
Based upon the sales comparison approach from market data, the "as~is"
opinion of value for the subject building only, as of July 20,2006, subject to
the extraordinary assumptions and hypothetical conditions set forth, is (rounded):
M~;.~lj~~l~H~:Q,[i
The Simmons COninany
45
.1
.PI
.1
.'-1
.' I
.' I
.' I
.1
.:1
.il
.' I
I
.1
, I
I,
.1
I'
I
II
II
.1
II
INCOME APPROACH
The income approach is a method of estimating value where the gross potential
income, less necessary operating expenses, is converted into an investment amount.
However, the size of the subject building is not typically one purchased by an investor.
Rather, the size of the subject building is one that is typically an owner-occupied property.
This is validated by the sales of the three improved com parables that were used in the
sales comparison approach of this appraisal, where all of the sales are believed to be
purchased for owner-occupied reasons. Therefore, the income approach does not provide
a credible opinion of value for the subject building, and it is not considered applicable.
COST APPROACH
The cost approach is a method of estimating value where the cost to replace the
improvements, less accrued depreciation, is added to the site value. It should be
understood that there is a distinct difference between replacement cost and reproduction
cost. This cost approach has been based on the replacement cost which can be defined
as, the cost to construct, at current prices, a building with utility equivalent to the building
being appraised, using modern materials and current standards, design and layout. This
can be distinctively different than the reproduction cost which is the estimated cost to
construct an exact replica of the buildings being appraised. The replacement cost
estimates are taken from the Marshall Valuation Service, a nationally-recognized cost
service, with adjustments for local factors. Replacement cost figures used in the cost
approach are for valuation purposes only given the intended use of this appraisal. These
figures should not be used for insurance purposes. The definition of market value in this
appraisal is not likely to be consistent with definitions of "insurable value." Additionally,
deducting the opinion of site value from the opinion of value for the real estate is not a
reliable method for determining a value for insurance purposes.
Accrued depreciation may consist of three types of loss in value including physical
deterioration (loss in value to the major structure and deferred maintenance); functional
obsolescence (loss in value due to inadequate design or loss of utility); and external
The Simmons Cornpany
46
I
II
nl
I
I
I
1'1
1'1
II
1'1
.1
I, I
1'1
1'1
.'
.J
II
II
II
II
.1
II
Cost Approach
(Cont.)
depreciation (caused by forces outside the property itself such as location or changing
economic conditions).
Physical depreciation is estimated by the age-life method. The estimated effective
age of the subject property is 15 years. The total physical life of 37.5 years is taken from
life-expectancy guidelines from the Marshall Valuation Service, Section 97. This is
computed by averaging the average cost rating of 40 years and the 35 years for the low
cost rating (40 + 35 / 2 = 37.5). Therefore, physical depreciation is estimated to be
approximately 40 percent (15/37.5=40%). The improvements were designed specifically
for the current occupants and have an average design for this type of property. However,
the use of the locker room facility is no longer valid, and is used for storage purposes only.
Therefore, the subject building suffers from a functional loss in value. Meaning, if the
subject building was to be rebuilt as of today for warehouse storage use, the locker room
facility area would not be rebuilt. Accordingly, a 10% adjustment is made for the functional
depreciation of the subject building. Lastly, no adjustment for external depreciation is made
because the improvements have an average location for this type of property and are not
affected by external depreciation.
After consideration of all three forms of depreciation, the estimated replacement cost
of the building only is projected. In conclusion, based upon the cost approach, the "as-is"
opinion of value for the subject building only, as of July 20, 2006, subject to the
extraordinary assumptions and hypothetical conditions set forth, is (rounded): $147,000.
The Simrnons Cornpany
47
"\
I
I
I
-,
I
.1
.' I
.1
II
1"1
.:1
.1
, I
.
II
.J
II
.1
.' I
.-'
.1
.1
Cost Approach
(Cont.)
COST APPROACH - Marshall & Swift Valuation
Section 14. PaQe 26. Class S. (AveraQe of Low Cost RatinQ & AveraQe RatinQI
Building Base Cost (SF) 10,800 $24"77 $267,516
Current Cost Multiplier
Local Cost Multiplier
Story Height Multiplier
Area Multiplier
Adjusted Base Cost (S.F.)
x
x
x
x
1.01
0"89
1.041
1.03
$257,839 $257,839
Additional Improvements:
Estimated Mezzanine Storage
3,000 $12.26 $36,780
Total $36,780 $36.780
$294,619
Replacement Cost New
Depreciation:
Physical
Functional
External
Total Depreciation
15/37.5=40%
40%
10%
0%
50%
$147,310 $147.310
Indicated cost new of building only, less depreciation is:
Based upon the cost approach, the "as.is" opinion of value for the
subject building only, as of July 20, 2006, subject to the extraordinary
assumptions and hypothetical conditions set forth, is (rounded):
$147,310
$147,000
48
The Simmons Company
\
I
1'/
1'-'
, I
I
I
I
I' I
1'1
'I
.' I
.'1
I: I
1'1
1,1
.1
, ,
I
II
.1
I'
II
.1
RECONCILIATION
Three approaches to value were considered in determining the final opinion of value
for the subject The income approach was considered, but eliminated, because it was
determined by the Appraisers that it does not provide a credible opinion of value for the
subject The sales comparison approach is used, and is considered a good indicator of
value because it is based upon current trends in the marketplace. The cost approach is
used and is considered a reliable method on properties that do not suffer from a large
amount of physical depreciation because it reflects current construction costs for the area.
In summary, the opinions of value for the subject building only are $139,000 by the
improved sales comparison approach, and $147,000 by the cost approach. Both the sales
comparison approach and cost approach are reasonably supportive of each other.
However, the cost approach is typically at the high end of the range for properties like the
subject that have been built specifically for users. In addition, due to the difficulty of
identifying and estimating all forms of accrued depreciation, including functional
depreciation due to the subject's former locker room, least reliance was placed on the cost
approach to value. Therefore, most emphasis is placed upon the sales comparison
approach because there is a good supply of market data for this type property. In
conclusion, the opinion of market value for the subject building only, as of July 20, 2006,
subject to the extraordinary assumptions and hypothetical conditions set forth, is (rounded):
ONE HUNDRED FORTY THOUSAND DOLLARS
($140,000)
Through an Interlocal Cooperation Agreement, the subject building is jointly used by three
governmental units, who are U.SD. 305, City of Salina, and Saline County, and is located
on land owned by the City of Salina. However, the appraisal is based upon the hypothetical
condition that the subject property is encumbered by fee simple interest, which, in-fact, it
is not
The Simrnons Company
49
I
.
I
.
, I
.
.: I
.p j
I
.
, I
.
.1
.:1
.: I
1"1
,
.
II
.' I
..1
...1
..1
.1
.1
REASONABLE MARKETING TIME
This appraisal has been compiled based on a reasonable marketing time of one
year, which. assumes professional and aggressive marketing. In addition, reasonable
marketing time is based upon the extraordinary assumption that the subject property has
not been changed or altered in a negative manner that would alter the opinions of value.
This is supported by marketing time of the comparable sales, and it is supported by
current occupancy rates and stabilized market conditions. For example, there is not an
abundance of vacancies or listings for sale in the subject property category.
The Simmons Company
50
PI
.
I
.
-I
.
.'1
.' I
."
.:1
.' I
.:1
.' I
.'1
.' I
.'
..,
.-'
.-1
I
.
.1
.1
UNDERLYING ASSUMPTIONS, EXTRAORDINARY ASSUMPTIONS,
HYPOTHETICAL CONDITIONS AND LIMITING CONDITIONS
The Appraisers assume:
That any legal descriptions furnished are correct;
'That the title to the property is good;
That there are no encumbrances or defects of title other than those mentioned
in this report;
That the property is free and clear of all liens;
That the property will be managed efficiently and maintained properly;
That any plans furnished are correct.
This report is submitted subject to the following limiting conditions:
That no survey of the property has been made by your Appraisers and no
liability is assumed on matters of a legal character affecting the property, such.
as title defects, overlapping boundaries, zoning issues, easements, etc.
Any sketches in this report are included to assist the reader in visualizing the
property.
The distribution of the total valuation between land and buildings applies only
under the existing program of utilization. The separate valuations for land and
buildings must not be used in conjunction with any other appraisal and are
invalid if so used.
All data used in this report has been obtained from sources believed to be
reliable and has been verified in every possible instance. The accuracy of the
data cannot be guaranteed, however.
Testimony or attendance in court is not required by reason of this appraisal,
with reference to the property in question, unless arrangements have
previously been made therefore.
Neither all nor any part of the contents of this report shall be disseminated to
the public through advertising media, public relations media, news media, sales
media or any other public means of communication, without the prior written
consent and approval of the author.
If the appraised property is a proposed project, the appraisal is subject to an
inspection upon completion.
When assessment records are utilized for estimating the size of building
improvements and land, it is based upon the extraordinary assumption that the
measurements are accurate.
The Appraisers are not surveyors, they make no guarantees, "fXP.!i~.s.s~t;g I9fmpany
implied, regarding the FEMA Flood determination.
PI
.
.1
.'1
.,J
.1
.' I
.' I
.1
.: I
..1
.1
.1
.1
.1
.1
..1
II
.1
II
UNDERLYING ASSUMPTIONS, EXTRAORDINARY ASSUMPTIONS,
HYPOTHETICAL CONDITIONS AND LIMITING CONDITIONS (Cont.)
If the appraisal performed for the subject property develops a prospective opinion
of value, the market conditions for this appraisal are based upon the date that the
prospective opinion of values are made from. Therefore, the Appraisers cannot
be held responsible for unforeseeable events that alter market conditions prior to
the effective date of a prospective opinion of value appraisal.
Reasonable marketing time is based upon professional and aggressive marketing,
and based upon the extraordinary assumption that the subject property has not
been changed or altered in a negative manner that would alter the opinions of
value.
The opinions' of value are predicated on the extraordinary assumption that the
subject property has an adequate supply of safe drinking water, and that the
subject property has no vapor intrusion.
The opinions of value are predicated on the extraordinary assumption that there
are no environmental hazards on or in the property that would cause a loss ,in
value. No responsibility is assumed for any such conditions, or for any expertise
or engineering knowledge required to discover them. Because the Appraisers are
not experts in the field of environmental hazards, this appraisal report must not be
considered as an environmental assessment of the subject property. In addition,
the Client is urged to retain an expert in this field, if desired.
It should be noted that the Appraisers do not have the appropriate knowledge or
education in regard to structural and mechanical matters. Unless otherwise noted,
the Appraisers assume the various elements that constitute the subject property
are fundamentally sound and in working order.
It is not known the to the Appraisers if the building improvements have been built
to code, or are in code compliance.
Through an Interlocal Cooperation Agreement, the subject building is jointly used
by three governmental units, who are U.S.D. #305, City of Salina, and Saline
County, and is located on land owned by the City of Salina. However, the
appraisal is based upon the hypothetical condition that the subject property is
encumbered by fee simple interest, which in fact it is not.
The Appraisers make no representations, guarantees or warranties.
The Simrnons Company
II
" ml
I
'""/
.1
.1
.:1
.'1
.'1
.' I
.,1
.' I
.' I
I
.' I
.'
.1
.1
.1
.1
.1
.1
QUALIFICATIONS OF FLETCHER SIMMONS, MAl
EMPLOYMENT:
Formed The Simmons Company October 1988. President and owner since that time.
Engaged full-time in fee appraising of Real Estate.
Full-time fee appraising from May 1978 through September 1988, with David Craig and
Company. Established Manhattan, Kansas office March 1983.
Established Salina, Kansas office February 1995.
State of Kansas, Property Valuation Department, State Office Building, Topeka,
Kansas, August 1974-1978.
STATE APPOINTMENTS AND LICENSE/CERTIFICATION:
1995 appointment for a three-year term on the Kansas Real Estate Appraisal Board.
Reappointed to a second three-year term in 1998, serving as Chairman
Certified as a General Real Property Appraiser, State of Kansas, as of July 1, 1991.
Certificate No. G-94
EXPERIENCE:
Full-time since May, 1978. Properties include commercial, industrial, agricultural,
residential and many types of special-purpose properties. Area covered is the
Midwest, and experience includes appraising in condemnation matters.
ORGANIZATIONS:
MAl member of the Appraisal Institute #6951.
EDUCATION:
BS Degree in Business, Emporia State University 1973.
Successfully completed the following courses and examinations by the American
Institute of Real Estate Appraisers:
R. E. Principles & Valuation Procedures (I-A)
Capitalization Theory & Techniques (I-B)
Case Studies in R. E. Valuation
Valuation Analysis & Report Writing (Old II)
Intro. to R. E. Investment Analysis (Old 6)
Residential Vaiuation (8)
Standards of Professional Practice (SPP)
Comprehensive Examination
REPRESENTATIVE CLIENTS:
A list will be furnished upon request.
The Sirnrnons COrTifJnl'lY
~I
I
II
I
II
I
1'1
II
.1
II
1:1
1'1
II
I
1,\
. ,
i
II
II
II
II
1\
II
II
QUALIFICATIONS OF JEFF HOLGERSON
EMPLOYMENT:
Formed Real Estate Appraisal Services June 1998. President and owner since that time.
Engaged full-time in fee appraising of real estate. Full-time fee appraising from June 1998
through January 2000, with John Heline and Company. Commercial mentorship
. November 2003 to present through Fletcher Simmons of The Simmons Company.
EXPERIENCE:
Full-time since June 1998. Primary focus was single-family residential and 2-4 family
properties. Started commercial mentorship November 2003. Current primary focus is
commercial, industrial, and multiple-family properties in central and north-central Kansas.
STATE LICENSE AND CERTIFICATION:
Licensed Appraiser, State of Kansas, License No. L-1357.
ORGANIZATIONS:
Appraisal Institute Residential Associate Member and Salina Board of Realtors member.
EDUCATION:
BS Degree in Business, University of Kansas 1990.
Successfully completed the following courses and examinations.
Sales Comparison Approach and Valuation of Partial Interests
The Basics of Appraisal
Real Estate Analysis
Cost and Income Approach
Uniform Standards of Professional Standards and Ethics
Report Writing for Residential Properties
Marshall & Swift Residential Cost Manual
Standards of Professional Practice, Part A
Residential Case Study
Supporting Sales Comparison Grid Adjustments
Valuation of Detrimental Conditions
Appraisal Consulting
Advanced Residential Form & Narrative Report Writing
Business Practices & Ethics
Intro to Income Capitalization
Basic Income Capitalization
REPRESENTATIVE CLIENTS:
A list will be furnished upon request.
The Simmons CornpCiny
-I
.1
I
.
, I
.
.' I
.:1
.' I
.'1
.'1
.,1
.il
, I
.
.; I
.' I
.'1
.,1
.1
.1
.1
.1
APPRAISERS' CERTIFICATE
We hereby certify that, to the best of our knowledge and belief:
the statements of fact contained in this report are true and correct;
the reported analyses, opinions and conclusions are limited only by the reported assumptions
and limiting conditions, and are our personal, impartial, and unbiased professional analyses,
opinions, and conclusions;
We have no present or prospective interest in the property that is the subject of this report and
no personal interest with respect to the parties involved;
We have no bias with respect to the property that Is the subject of this report or the parties
involved with the assignment.
our engagement in this assignment was not contingent upon developing or reporting
predetermined results;
our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors that cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal;
the reported analyses, opinions and conclusions were developed, and this has been prepared,
in conformity with the requirements of the Appraisal Institute's Code of Professional Ethics and
Standards of Professional Appraisal Practice, which include the Uniform Standards of
Professional Appraisal Practice,
the use of this report is subject to the requirements of the Appraisal Institute relating to review
by its duly authorized representatives;
as of the date of this report, Fletcher Simmons has completed the requirements of the
continuing education program of the Appraisal Institute;
no one provided significant real property appraisal assistance to the person signing this report,
except those specifically indicated,
one of us, or both, as indicated ,below, has made a personal inspection of the propertythat is
the subject of this report;
the reported analyses, opinions and conclusions were completed by Jeff Holgerson and
revie ed by Fletcher Simmons, MAl.;
,
~~
Fletcher Simmons
Certified General Appraiser
State of Kansas
Cert, No Gft4
_ Did kI1Id Not Inspect
Jeff Holgerson
Licensed Appraiser
State of Kansas
License No, L-1357
L Did _ Did Not Inspect
7-3/~Ob
Date
The Simmons COfYI[Jany
--I
.1
.'
.' I
.' I
'I
.
.-1
.: I
.,1
.'1
.:-1
.il
.' I
.'1
.1
.'
.'
I
I
..1
.1
",.
~Y'"
2lm~,~~~~
t.~!~~ BOCk~ ~~;~
INJ'El!UX1\L lXOPERATICN F<JRmlmr
'n>is Int:erlocal- Coopetat:ia1 hJrement pursuant to t:h<> rnt:erlocal-
~ti.on. Act, K~S.A.. 12-2901 to U-2907, i.nclusive, as ~, \'lilde'
ani entered into, this ~ day of Januaty. 1963, by ani bebr<eU tre
CI1"t CE' SALINl\, ~.:refette:i to as, the "City't- CXXNlY <E' SALINEr
~ tlOforce:l to <Ii' tIE "camty", ani U.S.D. .305, ~
refex:n:d to as- tl:e ".Scb::xll:)listrict" I ~::
WHEREAS, K.S.A. 1991 SUfp. U-29a4 authcrlzes local- ~tal
units to Jrake tIE noot efficient use of their l""""" by enaJillnr:r tl'm to
COC>I?"l"'te with other govez:rme1bll u:ili:s <It tre ba!J.s of l!ll1:1Jal lidvantilge ,
ani t:heJ:eby- to provide :=vices in tre lIlilIIIler tlat will best 5etVe the.
needs of the o:mronity in the IlXlSt efficient. ani eo:rt1aldcaI. """"""', and, '
1IllEIlEAS, tlle Cl:ml)"i ani the City ea<;h. neecl. a- stmage Wil.dJ.!g an:!.
the Sd=1 District needs l<lcker roau faciJ.ities for !brth. J\JnlOI: H41h'
ani,
WHEREAS. tIE parties i=et:o are of the q>ini.aJ. that: the o:nst:i:1>;t;ic
ani ~tion of <<Ie Wil.dJ.!g for said storage ard 1Dc:ker= facilities
'-'>ll.d'l:ellDre ecDllIllical to' = ard ~I:e than. _ sepotate
facilities for these'rm:roses: ani, '
mi 'I1lEllEFooE, it ~ I'ereby ~'by ardbetween the cl.ty, camty ,
ani the SClx>ol. District as folWws,'
(11. ~: 1l1e [lUIlX>S<: of this aqroorent in to provide for tlle '
~. """"'t:el1ance ani ~t:ia1 of a wildir>r ta be located. in '
KeIII<xxl. PaI:k. en land _ by tIE City and. to be jointly used bytlle '
i:hrt!<> <J=Il'EPtal units wtrJ are tIE parties ta this ~t.
(2). OOration, 'll1io aqreerent shall """"""'" en the fOlJlla!. adoptim
of this agreeJl'nt by all parties iuxi its approval b'f the At:t;Otney Ge1leral.
of the State of Kansas am. shall D:::iO.ti.nue iildefinitely until teDninated
as rereinaft:er provj<lsd.
131. Termination, In tl1a f<VEht tlat any of the pai;;i"$ hereto
desire to WJ.thiraw fran part.i.cipatial aM temci.nate this agrement,
then:
(al . party desiring to witlrlraw shall notify the
other parties hereto in writing of its intention to
witixlraw by giving written notice to the other parties
on or' l:efore June 30th of any }'Eat iuxi indicating that
it intends to wit.irlra1N f:cttn said agreeuent on De:a11lter
31st of "tl1:a sane yem:.
Ibl. Wil:hin thirty days after receiving notice
of S1.lcl1 inteiltion to witlrlraw, each of the parl;ies
to this agree:rent shall 5electone appraiser and
said appraisers shall Within }O day~ agree: up;:m the
fair market value of said sb::uCture.
I
.
I
.
.1
.' I
.'1
.-1
.' I
.: I
.:1
.:-1
.:1
.,'1
.' I
I
.
I
.
.1
.J
.-1
.1
"
M:!:Bo"d" ii.-'I.rv
(e). _'~ nerI:enl to this a'J"""ll"l't shall. -
have the ogtion to pJ<Chase fron the withlrawinq -
the withJrawing nanberls inte.reSt in said structw:e at,
its fair market value as de.term.iPed. by the ab:::ve appra.15erS.
;,....
>.,',>"
-,'';.\;$:
1.."
"
(d). In the event that noi,ther of the-renaininJ'
_select to p.m;hase the withlrawinq !ffllIber's
interest in said structure prior to ~ 31st of
said year, t:l1en the said b.lilding shall. be so14 at
public auctiDn allO the ~ div.iJjed aID:n3 the
parties hereto in the sane prop:rticn as :the cost
of the st:ruct:url< was paiJl for boi the parties.
(4). Mninistratim: 'Jl1e operatim, aani.nLst=ticn aa: ~'of
the storage fXlrb.<:n of the buDding sJ1all be under the admlnistraticn of the
CitY. ~tion of the :L:x;ker =' porticn of the struct:Ure shall. be ' "
UIder the supervision of the Sdnol District. :rhe City aQd COuntY shall. '
share equally in the utilizaticn of t:he storage porticn-of the building.
'!be City Manager of -th2 City of Salina, 01aiman of the Boatd of COI,mty
Cc:trr.I.issicriel::s and ~terV;lent.. of USDI3QS shall be :respoosible far
resolving all issues related to this agre61alt.
(51. Cbnst:rQction of Iluilding: Plans aQd sp<cifications for tm"
storage [XlctlJ:ln of the tuililing nust be ~ boi tol:l\. the -CWnty and
City. plans allO "p""W""1ons for the locker = shall. be ~ by
the SclJOO1 Dist:r~ _ Plans and sp<cifications for the exterior design
of the 00ilJiinj shall.l:e .~ by all parties.
(6). Cl:lst'cf =truction: IlUilding, shall.1:e advertised and bids
recti_for the~. 'Il1e cO$!; of constroctim of said build-
ing- shall be paid 00 the fc1k><in<) resin:
(.) . 'Il1e oo$!; of the storage t:uiJdinq shall be
shared equally between the County aQd the City. The
locker = facilll:ies to the storage 00ilJiinj shall
be bid as an extra allO the CDst of this extra item
for the locker = shall. be paid boi the Scl=1
DiStrict.
(7). Repaip; alii Malntenance: The repairs, naintenance alld
operational elIpE:nSes for the storage p:>rtion of the 00i.l.dinq shall.l:e
shared equally between the City and theCoonty.Rep:tirs, maintenan<:<>
and operational ~ for the lllcker rron facillty shall. be paid
entirely boi the Scl=1 District. jlepaiIs aQd naint=mce to the extetior
of the b.lilding shall be shared by all parties based cnthe amount of
square footage ,each oe<:UpieS in the building.
(8) . utilities: Separate utilitieS shall. be fuInished for' the
storage area am thf:, J.!)::ker rocm.utilities for the stol:age area 5hal1
be share! jointly between the City and CoUnty. utilities for the locI<er
""'" shall be paid entirely boi the ScOOol Dist:rict.
(9) . rnsur""",,: :!he cost of instirance for the pmnises shall. be
shared boi the parties based on square footage Cccupied by eaCh party.
(10). Approval by Attorney General: This agreerrent shall be in
full force and effect fmn and after ,t;s adoJ!tion by the respective
govemrental todies, approvErl by the Attorney General of the State of
Kansas. - ,
-I
.
.1
, I
.
'I
.
.'1
.1
.: I
.'1
.;1
.:1
.' I
, I
.' I
.'1
I
.
.1
.1
.1
.'
.1
.:..
,
~~!'CBOC'W~ 41-3
IN wrrnESS W!lERl;lJF, the partie!! have !>=unto ~ " =lutioo' , ,
awrovin:r this &Jl"""l'l'l:. and autl>:lrWnr its =tlnn by their respective
representatives on the Pay and ~ tits!: aixlve written.
= (F SMJNA
'~4.4-,
Mayer "., ..........
cmmx DE' SALINE.
I,J- .
A?proved this .....!......- duy of Harch, 1903.
J
'U-/',' "---, "-J-- ',"/
'. L /~
"L..;." /. -~-
naber-I; T. Stephan
.l\ttOl7ncy ~el\eral of Kan~qs
HATE OF ".tll~~ \ I )' )IU:O. FoR /ll:CllNU
toUtH';' OF ~\.I"E I~l tIIW(Of'FI(EAT
/1;113,\ lYcl.Ql;l:. Dte 9 1985 MID (JULY
:::x' . RECOROEO
~'''''I "9.;'1... . Y.II .J j.>
.v .J.~ _J...~ ~:J:'k:~. ".,\T f~~liT~'~-;/.":-' j'"'--J
WM,'JI1J""GOFOEE
'""if"'''''!'' """'"
.. .;~..,:':::'S~
....1
.
I
.
.' I
.' I
, I
.
.1
i I
.
'I
I
'I
.
.: I
."1
, I
I
, I
.
.1
.1
.1
...1
II
.1
0
;;
0 ~.
0 0
a 0
~ ~~
'"
. r" ~5
a.
;:!;;-, 0-
~ m
.
>.", " --. I:
. ~ ^ ~ 0
""", ~ ci()
" Z,;
~
~ ci 0.\1
Z .0
0 1ii a. >
Z 0 0 E
0 " <(
0 0
~
a: a: >
,Ll
\)-<'
cl
...
Z
W
~
([ l\' j
O:Ul~C
Cl... 0 ,-40.~
w'" (~f-,...
0'" ill 11:
0:(/)0 ..M 9;3
wz~~~:g ~ ~
o Qoo(/) ~ 1Ji "..
~~D~.~i5bl!D J.
wa:...J'2o",,~o
Ul~O.{EE~1!'i
o:ooz-o"'~",
l505.J~CD ~ ~
a: OOO:'ii1" .~
Z (f) I1l \1J
:J<(o ~!E .5:
o..ww C al
ou: J rJ)
z-
o:Z
z:J
w
...
z
<(
::;
S n
':',',
~'\
" \.~
",<:.'
,~
co; cg 8 g
." po
:)\1..; ;:;
"
"" m.-{::.J
c.,':",-.;
'"' ~1 0
~}fjD
';1 ~,j C',
~) '::;.
[.~ ,; ;:',~ "
ir
o
o
Z
w
>
...
Z
>-:J
<0
a.::l;
<
'-',
'..
,r'w..J
\,- () <
_---,i['1-
r...g
'--.,0
q~
...~. .0(
~
t=....
Ul-
wZ
:J
-
<!la:
Ow
-''''
<::;
~:J
()z
0:
w
'"
::;
:J
Z
...
Z
:J
o
()
()
<
~
[","
z I~"t~
o ""
j:: ~;
a.. -iQ'l
0: ::,V)
()
'"
W
o
>-
...
i=
Z
0:
:J
o
9'
.':';~.~
:d;r.;:
~:
...
'"
,
l:
;.;
,~..
.'
^'.
,
c;:
"
~
;:,
ro,
d
-l
C,
"
"
'"
~
>~
"
(."::.\
"'
~
;-;j
~
::;
"'i:
c,
"~
""
?
5
o
0-
,J"
~n
~~
~,
:,,:
{:
"
"
~
,.
g
-::'
i.:~
..
00
"'i"
T).
-<
~'l
.::;
J
~:-i
~
oj
d
~
.
:J
~
o
~
~
o
.~
'"
1
c
~
f
.
0-
~
o
.
g~
~::
:!.g 0
OUi ;:
"'Co co
~ 15 ~
~ 0 .
o 'J:.r:. c
,. ~ S u; ~
00 .
I-.s ~ en ~
n. J; CD._
IfCclO7il
rn~::JC\lCI)
1Ji
w
'i!
o
...
,
o
..~
-<
~1
~
-<
~i
';"~
~
~
~-'- ~~
',< tl
.,
"
',.. ~~
cJ' ('i.
;j
\1~
., ..,~\,
..
~
, .,.,.: ..
~ . '.
- '" :::.,,~' ,-
';.(; ';' (:, " '">. ~ J,
> '\,.~,
f e< e -s;.
0- '.'
'0;: C P 0- "Q)
< >
,. ~ .~
>- ,. ~
'" '" " " 1;; ~
c 0 0- .0 ~
" '0 "
. . E in
2 E ~ 0 TI ~
~ . ;t '"
. e 15 .c: 0:
~ . 0 0
0- 0- " ,
. . 0
a: 0 Ul a.
7.:
"
o
o
..
m
w
()
~
~
o
,..
o
o
<
o
z
<
,..
I
<!l
[jj
a:
u.
>-
<
a.
w
a:
a.