wsdot narrative appraisal report certificate of appraiser

86 Pages·2014·6.59 MB·English

WSDOT NARRATIVE APPRAISAL REPORT
Parcel No.: NA
Owner: Sang T. and Mi Sun Yi
Federal Aid No.: NA
Project: __________
R/W Plan Title: __________
Plan Sheet : NA
Plan Approval Date: NA
Date of Last Map Revision: NA
CERTIFICATE OF APPRAISER
I certify that, to the best of my knowledge and belief:
 the statements of fact contained in this appraisal are true and correct;
 the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conclusions, and are my
personal, unbiased professional analyses, opinions, and conclusions;
 I have no present or prospective interest in the property that is the subject of this appraisal, and I have no personal interest or bias
with respect to the parties involved;
 my compensation is not contingent upon the reporting of a predetermined value or direction 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;
 my analyses, opinions, and conclusions were developed, and this appraisal has been prepared, in conformity with the Uniform
Standards of Professional Appraisal Practice and the Uniform Appraisal Standards for Federal Land Acquisitions;
 I have made a personal inspection of the property that is the subject of this report. I have made a personal inspection of the
comparable sales contained in the report addenda;
 I have afforded the owner or a designated representative of the property that is the subject of this appraisal the opportunity to
accompany me on the inspection of the property.
 no one provided significant professional assistance to the person signing this report. (If there are exceptions, the name of each
individual providing significant professional assistance must be stated - please see Scope of Work Section);
 I have disregarded any increase in Fair Market Value caused by the proposed public improvement or its likelihood prior to the date
of valuation. I have disregarded any decrease in Fair Market Value caused by the proposed public improvement or its likelihood
prior to the date of valuation, except physical deterioration within the reasonable control of the owner;
 this appraisal has been made in conformity with the appropriate State and Federal laws and requirements, and complies with the
contract between the agency and the appraiser;
The property has been appraised for its fair market value as though owned in fee simple, or as encumbered only by the
existing easements as described in the title report dated 09/22/2014.

The opinion of value expressed below is the result of, and is subject to the data and conditions described in detail in this
report of 50 pages.

I made a personal inspection of the property that is the subject of this report on 10/07/2014
The Date of Value for the property that is the subject of this appraisal is 10/07/2014.
Per the FAIR MARKET VALUE definition herein, the value conclusions for the property that is the subject of this
appraisal are on a cash basis and are:
FAIR MARKET VALUE BEFORE ACQUISITION $1,380,000
FAIR MARKET VALUE AFTER ACQUISITION $0
DIFFERENCE $1,380,000
Date of Assignment or Contract: 10/01/2014 Name: Steven Price, MAI, CRE
Date Signed: 10/31/2014 Signature:
Washington State-certified general real estate appraiser certification number: #1100364
DO NOT WRITE BELOW THIS LINE
Headquarters Service Center Date Stamp Region Date Stamp
Appraiser: Steve Price, MAI, CRE Page 1 Parcel: NA
RES-208
Rev 09-09
Assignment Scope of Work
The client for this report is the City of Bellingham. The City of Bellingham requires that, in addition to
compliance with USPAP, this report must also meet the Washington Pattern Jury Instructions—Civil, Part X-
A. Eminent Domain, and the Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book). In
the case of a conflict between requirements, the Washington Pattern Jury Instructions will be the determining
authority.
The City of Bellingham is required to take an active role in developing the scope of work. However, it is the
ultimate responsibility of the appraiser to develop a complete Scope of Work and produce a credible appraisal
report. The appraisers SCOPE of WORK is included in Section 5 of the report. The report must adhere to the
standards described above and the specific task assignment for this parcel.
Eminent Domain Appraisal Information and Definitions
The intended use of this appraisal is to provide information to the client, the City of Bellingham, as a basis for
acquiring the subject property, through voluntary acquisition or eminent domain.
Unless stated otherwise in the report, the property rights appraised constitute the fee simple interest.
“Fair Market Value” is defined as; the amount in cash which a well-informed buyer, willing but not obligated
to buy the property, would pay, and which a well-informed seller, willing but not obligated to sell it would
accept, taking into consideration all uses to which the property is adapted or may be reasonably adaptable
(Washington Pattern Instruction 150.08).
The intended user of this report is the City of Bellingham. The appraisal is intended for use in planning and
negotiations for the City’s proposed acquisition of the property on a voluntary basis or through eminent
domain.
In condemnation, the larger parcel is the portion of a property that has unity of ownership, contiguity, and
unity of use, the three conditions that establish the larger parcel for consideration of severance damages. This
is also known as the “parent parcel”.
Extraordinary assumptions or hypothetical conditions include but may not be limited to the following:
Damages or Benefits to Property Before Acquisition – Any decrease or increase in the fair market value of
the real property to be acquired prior to the date of valuation caused by the public improvement for
which such property is acquired, or by the likelihood that the property would be acquired for such
improvement, other than that due to physical deterioration within the reasonable control of the owner,
will be disregarded in determining the compensation for the property. (RCW 8.26.180) {Source: WSDOT
Right of Way Manual M 26-01.03 Page 4-1-6}.
Portions of the subject property improvements are reportedly contaminated by residue from illegal drug
use and there is an old underground fuel oil tank. There may also be asbestos containing materials in the
subject improvements, but a full investigation has not yet been completed. At this stage, the full extent
and nature of the contamination are not yet known and no estimates for cleanup costs are available. This
appraisal makes the hypothetical assumption that the subject is clean. However, apparent environmental
hazards or contamination observed or discovered during the appraisal process must be noted in the
report and addressed by the described process outlined in the Right of Way manual under
Toxic/Hazardous Waste Situations. The client has reserve the right to have us perform another valuation
on the subject property once the extent of cleanup required is determined and cleanup costs and
remediation costs have been estimated.

Appraiser: Steve Price, MAI, CRE Page 2 Parcel: NA
RES-208
Rev 09-09
APPRAISAL ASSUMPTIONS AND LIMITING CONDITIONS
1. The property description supplied to the appraiser is assumed to be correct;
2. No survey of the property has been made or reviewed by the appraiser, and no responsibility is
assumed in connection with such matters. Illustrative material, including maps and plot plans,
utilized in this report are included only to assist the reader in visualizing the property. Property
dimensions and sizes are considered to be approximate;
3. No responsibility is assumed for matters of a legal nature affecting title to the property, nor is any
opinion of title rendered. Property titles are assumed to be good and merchantable unless otherwise
stated;
4. Information furnished by others is believed to be true, correct, and reliable. However, no
responsibility for its accuracy is assumed by the appraiser;
5. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless so specified
within the report. The property is assumed to under responsible, financially sound ownership and
competent management;
6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures
which would render the property more or less valuable. No responsibility is assumed for such
conditions or for arranging for engineering studies which may be required to discover them;
7. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be
present on the property, was not observed by the appraiser. However, the appraiser is 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. The value
conclusions in this report are predicated on the assumption that there are no such materials on or in
the property that would cause a loss of value. No responsibility is assumed for any such conditions, or
for the expertise required to discover them. The client is urged to retain an expert in this field if
desired. The analysis and value conclusions in this report are null and void should any hazardous
material be discovered;
8. Unless otherwise stated in this report, no environmental impact studies were either requested or
made in conjunction with this report. The appraiser reserves the right to alter, amend, revise, or
rescind any opinions of value based upon any subsequent environmental impact studies, research, or
investigation;
9. It is assumed that there is full compliance with all applicable Federal, state, and local environmental
regulations and laws unless noncompliance is specified, defined, and considered in this report;
10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with,
unless non-conformity has been specified, defined and considered in this report;
11. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or
administrative authority from any local, state, or Federal governmental or private entity or
organization have been or can be obtained or renewed for any use on which the value estimate is
based;
12. The appraiser will not be required to give testimony or appear in court because of having made this
report, unless arrangements have previously been made;
13. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not
be used for any purpose by any person other than the client without the written consent of the
appraiser, and in any event, only with properly written qualification and only in its entirety;
14. Neither all nor any part of the contents of this report, or copy thereof, shall be conveyed to the public
through advertising, public relations, news, sales, or any other media without written consent and
approval of the appraiser. Nor shall the appraiser, client, firm, or professional organization of which
the appraiser is a member be identified without the written consent of the appraiser;
15. The liability of the appraiser, employees, and subcontractors is limited to the client only. There is no
accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone
other than the client, the client shall make such party aware of all limiting conditions and
assumptions of the assignment and related discussions. The appraiser is in no way responsible for any
costs incurred to discover or correct any deficiencies of the property;
16. It is assumed that the public project which is the object of this report will be constructed in the
manner proposed on the most recent right of way plan prior to the appraisal date and in the
foreseeable future;
17. Acceptance and/or use of this report constitutes acceptance of the foregoing assumptions and limiting
conditions.
Appraiser: Steve Price, MAI, CRE Page 3 Parcel: NA
RES-208
Rev 09-09
SUBJECT PLOT PLAN
Shown are subject whole property site dimensions, access frontages, improvement locations and dimensions,
acquisition area and dimensions, “North arrow”, camera location and direction for each attached subject
photo.
Before Area: 65,906sf After Area: 0sf Fee Acquisition: 65,906sf
Permanent Easement Acquisition: 0sf Temporary Easement Acquisition: 0sf
Limited Access/Access Notes: N/A Beneficial Easement to Remainder: N/A

Subject Plot Plan

Appraiser: Steve Price, MAI, CRE Page 4 Parcel: NA
RES-208
Rev 09-09
SUBJECT PHOTOGRAPHS
Date of Photos: 2014 Photographer: Bing Maps

Aerial View – Entire Parcel before Acquisition

Location Map

Appraiser: Steve Price, MAI, CRE Page 5 Parcel: NA
RES-208
Rev 09-09
SUBJECT PHOTOGRAPHS
Date of Photos: 10/07/2014 Photographer: Steve Price

1. Frontage 2. Looking north from Manager’s Office.

4. Looking down Otis St. toward Samish Way.
3. Looking toward frontage from E. Laurel St.

6. Looking at roof from grade E. Laurel St.
5. Looking at Manager’s Office from Laurel St.

8. Looking toward southern building.
7. Looking from Abbott Street.

Appraiser: Steve Price, MAI, CRE Page 6 Parcel: NA
RES-208
Rev 09-09
SUMMARY NARRATIVE APPRAISAL REPORT
1. OWNER: Sang T. and Mi Sun Yi
2. LOCATION OF SUBJECT: 301 and 315 N. Samish Way, Bellingham, WA
3. SUBJECT LEGAL DESCRIPTION:
The subject is comprised of two separate tax parcels in a single use (APN 380331-421256 and 380331-425243). The two
tax parcels are a consolidation of 12 paper lots. The combined legal description is as follows:
Lots 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and that part of lot 20 lying westerly of State Road No. 1 (Pacific Highway),
Block 26, Plat of Eldridge and Bartlett’s addition to the Town of Sehome, Whatcom County, W.T., now a part of the
consolidated City of Bellingham, according to the plat thereof, recorded in Volume 1 of Plats, Page 91, records of
Whatcom County, Washington;
Together with the vacated alley, vacated northeast 10 feet of Laurel Street, vacated northwest 10 feet of Pasco Street, and
the vacated southeast 10 feet of Otis Street, all abutting thereon:
Except that portion obtained by the State of Washington and conveyed to the State of Washington for State Road No. 1
or Pacific Highway, by:
A) Decree of condemnation in the Superior Court of the State of Washington under Cause No. 21361;
B) State deed recorded October 17, 1931; in Volume 220 of Deeds, Page 30, under Auditor File No. 403154;
C) State deed recorded December 9, 1931, in Volume 219 of Deeds, Page 337, under Auditor’s File No. 403814.
All situate in Whatcom County, State of Washington.

Lots
4. DELINEATION OF TITLE (5 years):
The owner of the subject property indicated to us that he and his spouse purchased the property for $1,400,000 in 2007
via Warranty Deed (AFN 2070401930). He said that it was an arm’s length transaction and that he did not know or have
other business relationships with the seller of the property. He said that it was not seller financed. He indicated that the
property is not currently listed for sale, that there are no pending purchase agreements or options on the subject property,
and that he has not received any bona fide written purchase offers for the subject in recent history.

Appraiser: Steve Price, MAI, CRE Page 7 Parcel: NA
RES-208
Rev 09-09
5. THE APPRAISAL PROBLEM AND APPRAISER’S SCOPE OF WORK:

The purpose of this appraisal is to: (1) estimate the Fair Market Value of the subject property in the Before Situation; (2)
estimate the Fair Market Value of the subject property in the After Situation, assuming the proposed project is
completed; (3) allocate the damages and/or special benefits, if any, to the remaining real property and property rights. In
this case, the transaction will be a total acquisition.
The client of this report is the City of Bellingham. The appraisal is intended for use in negotiations and potential
litigation resulting from the City of Bellingham’s potential acquisition of the property.
The scope of the investigation and analysis, as well as the geographical area and time span searched for market data, is
described in the valuation section of the body of this appraisal. There are three basic, traditional approaches to the
estimation of Fair Market Value: The Cost Approach, the Income Capitalization Approach, and the Market or Direct
Sales Comparison Approach. Only the Market or Direct Sales Comparison was utilized in the preparation of this report.
The subject property consists of two tax parcels, Whatcom County Parcel Nos. 380331-421256 and 380331-425243. The
tax parcels contain 65,906sf (1.51 acres). The property contains a single story motel. The owner of the subject property
indicated that there are a total of 28 motel rooms, plus one manager's unit, which is attached to the office and laundry
area on the north side of Building B. There are no critical areas on or near the subject. The entire site appears to be
buildable. The property is located in the City of Bellingham. The zoning is in Subarea 15 of the Commercial Transition
Area 2 (CT-2) in the Samish Way Urban Village portion of the Sehome neighborhood.
The first portion of this report identifies and describes the subject property. I have prepared a detailed and extensive
review of the site’s underlying zoning and it’s environmental and use regulations. I have also investigated the history of
the property and the character and physical characteristics of its buildings and land areas.
The valuation of the subject property is based on a careful determination and identification of what the current subject
property consists of, and its highest and best use as though vacant and as improved.
The sale comparisons used in this report are all similarly sized and similarly located vacant commercially zoned property
in Bellingham. Our firm talked extensively with participants involved in those transactions. We also reviewed recent
sales of motels of similar vintage and size to the subject.
Emily Terrell, AICP of Terra Property Analytics LLC provided land use analysis and research and authored the majority
of the Site Data section of this report. Lynnel Jones of Terra Property Analytics LLC provided significant professional
assistance in the preparation of this report by researching some of the market data used herein.
6. PROPERTY RIGHTS TO BE ACQUIRED AND EFFECTS OF ACQUISITION/PROJECT
(include description of area being acquired in fee, in easement and access if applicable):

This acquisition represents a “total acquisition” in fee simple for Whatcom County parcels 380331-421256 and 380331-
425243. The City of Bellingham will acquire these parcels.

Parcel Acquisition Plan
Appraiser: Steve Price, MAI, CRE Page 8 Parcel: NA
RES-208
Rev 09-09
Larger Parcel
It is my opinion that the two tax parcels comprising the subject property (APN 380331-421256 and 380331-425243) are
a single larger parcel. A definition of the term “Larger Parcel” is located in the addenda.
Description of Project
Not applicable.
7. DESCRIPTION OF SUBJECT PROPERTY including but not limited to:

Neighborhood:
The subject is located in the Sehome neighborhood in the southwest portion of the city of Bellingham. It is located about
200 feet west of Interstate 5 within a ½ mile of the Samish Way interchange. The subject is about a mile east of Western
Washington University. The Sehome neighborhood is located in the southern portion of the city within the boundaries of
the former town of Sehome. Sehome has a diverse collection of building types, styles, ages and sizes ranging from high-
style Victorian-era mansions to middle-class Craftsman-style bungalows and cottages. There are many historically
significant religious, commercial and multi-family apartment buildings in the neighborhood. Approximately 90% of
Sehome is developed and the neighborhood has some of the highest density in the city. The proximity to WWU
promotes a strong rental neighborhood. A mix of commercial businesses is located along the arterials including Samish
Way and State, Forest, Holly and Ellis Streets. The subject borders Samish Way. Samish way was originally Highway
99, connecting Vancouver, BC with Seattle prior to the construction of I-5. This accounts for the many older hotels and
auto service oriented retail along this road.

Vicinity Map
Appraiser: Steve Price, MAI, CRE Page 9 Parcel: NA
RES-208
Rev 09-09
Neighborhood Map
Whatcom Area Data
Population
Whatcom County and its cities saw moderate but steady growth through the past decade, but that growth has slowed
considerably since 2010 relative to other regions of the state. The City of Bellingham has a 2013 population of 82,310,
about 40% of the county total. Of that number, approximately 18% are students at Western Washington University, and
their inclusion in the statistics results in a median age citywide (31.9 years) that is below that of the county (33.6 years)
and the state (33.9 years). For the County, the annual rate of increase for the 16-year period from 1990 to 2006 was
2.7%. As part of the state’s Growth Management Act (GMA), Whatcom County adopted 20-year forecast period from
2002 to 2022 in 2004 that recognized county growth at 1.77% annually and Bellingham growth at 1.94%. Washington
State University’s Real Estate Center forecasts growth at about 2.0% annually.

Whatcom County Population Change 1960-2040, Washington State Office of Financial Management
Appraiser: Steve Price, MAI, CRE Page 10 Parcel: NA
RES-208
Rev 09-09