HomeMy WebLinkAbout101413_ca06Consent Agenda
co
w G2K JEFFERSON COUNTY PUBLIC HEALTH
615 Sheridan Street • Port Townsend • Washington • 98368
www.jeffersoncountypublichealth.org
October 8, 2012
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
Philip Morley, County Administrator
FROM: Tami Pokorny, Environmental Health Specialist II
DATE:
SUBJECT: Consent Agenda Item — Authorizing Water Quality to
Present Notices and Open Negotiations for the Fee - Simple
Acquisition of Big Quilcene River Floodplain Property (APN
991200501 and 702241004) at the Just Compensation
Value ($118,000).
STATEMENT OF ISSUE:
Water Quality is requesting that the BoCC make a motion to authorize staff to present
two notices to property owner Mike Bergeson concerning the possible acquisition of 2.03
acres (APN 991200501 and 702241004) on the Big Quilcene River floodplain for salmon
recovery. The notices inform Mr. Bergeson that Jefferson County would like to acquire
the property, establishes final Just Compensation ($118,000), identifies any tenants who
may be eligible for relocation assistance, and effectively open negotiations. The notices
are also required by the funding agency, the Recreation and Conservation Office (RCO).
ANALYSIS /STRATEGIC GOALS/ PRO'S and CON'S:
A Salmon Recovery Funding Board Agreement (RCO #12- 1384C) for this fee - simple
acquisition project was approved by the Board of County Commissioners on April 22,
2013. In June, Jo Schaefer, of Schafer Standaert Hernandez Appraisal Group, Inc.,
completed an appraisal of the subject parcels. The subsequent review appraisal, dated
September 18, 2013 by Joseph Granger of the Granger Company, concurred with the
Schaefer market value of $118,000. According to the Recreation and Conservation Office,
the confirmed market value is the final just compensation for the property .1
1 ham:/ /www.rco.wa.gov /documents /manuals &forms /Manual 3 aca 2011 df (page 40)
COMMUNITY ENTALDSABILITIES PUBLIC HEALTH ENVIRONMENTAL
HEALTH
DEVELOP QUALITY
MAIN: (360) 385 -9400 ALWAYS WORKING FOR A SAFER AND MAIN: (360) 385 -9444
FAX: (360) 385 -9401 HEALTHIER COMMUNITY FAX: (360) 379 -4487
Water Quality staff now proposes to submit the two notices to the landowner, open
negotiations at the just compensation value, and work with Mr. Bergeson to develop a
Purchase and Sale Agreement. The notices are: 1). Voluntary Acquisition Notice to
Owner, and 2). Just Compensation and Relocation Notice. The Purchase and Sale will be
submitted to the BoCC for consideration as soon as possible.
FISCAL IMPACT /COST BENEFIT ANALYSIS:
There is no fiscal impact to the Voluntary Acquisition Notice to Owner or the Just
Compensation and Relocation Notice. Funds to support fee - simple acquisition of the
property by Jefferson County at the just compensation value would be provided by ROD
#12 -1384C if the acquisition receives final approval.
RECOMMENDATION:
JCPH Management recommends the Board make a motion to authorize staff to present
two notices to property owner Mike Bergeson concerning the potential acquisition of
2.03 acres (APN 991200501 and 702241004) on the Big Quilcene River fioodplain for
salmon recovery. The notices inform Mr. Bergeson that Jefferson County would like to
acquire the property, establishes final Just Compensation ($118,000), identifies any
tenants who may be eligible for relocation assistance, and effectively open negotiations.
REVIEWED BY:
T
Ph Morley Co my Administra r Date
(Routed to all Public Health Managers)
COMMUNITY HEALTH PUBLIC HEALTH ENVIRONMENTAL HEALTH
DEVELOPMENTAL DISABILITIES ALWAYS WORKING FOR A SAFER AND WATER QUALITY
MAIN: 3603886940100 HEALTHIER COMMUNITY MAIN: 3603869444
FAX: 360379-0487
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October 16, 2013
Mike Bergeson
PO Box 262
Quilcene, WA 98376
RE: Voluntary Acquisition Notice to Owner
Dear Mr. Bergeson,
This notice is to inform you that Jefferson County, in partnership with Jefferson Land Trust,
would like to acquire your property on Fremont Street in Quilcene, Washington if a satisfactory
agreement can be reached.
Because state or federal money may be used in the purchase, we are required to let you know that
the sale is voluntary. If you do not wish to sell, we will not acquire the property. Jefferson County
will not acquire your property by condemnation (i.e., through powers of eminent domain).
Because the purchase would be voluntary, you would not be eligible for relocation payments or
other relocation assistance under the federal Uniform Relocation Assistance and Real Property
Acquisition Polices Act of 1970 or the state Real Property Acquisition Policy (Chapter 8.26
Revised Code of Washington) or any other law or regulation. However, any tenants that are
eligible displaced people located on the property will be offered relocation assistance.
Again, please understand that if you do not wish to sell your property, we will take no further
action to acquire it. If you are willing to sell the property, the purchase price will be based upon
the fair market value as determined by an appraisal and review appraisal of the property. You
may also choose to donate a portion of the purchase price once the fair market value has been
established. Please let us know if you have any tenants as they may be eligible for relocation
assistance. If you have any questions, please contact me at 360- 379 -4498.
Sincerely,
Tami Pokorny
Environmental Health Specialist II
COMMUNITY HEALTH ENVIRONMENTAL HEALTH
DEVELOPMENTAL DISABILITIES WATER QUALITY
MAIN: (360) 385 -9400 ALINAYS Mo ORKonNG IFOR 4 SAFER ANEP MAIN: (360) 385 -9444
FAX: (360) 385 -9401 HEALTHIER COMMUNITY FAX: (360) 379 -4487
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October 16, 2013
Mike Bergeson
PO Box 262
Quilcene, WA 98376
RE: Just Compensation Notice
Dear Mr. Bergeson,
This notice is to advise you of the just compensation for approximately 2.03 contiguous acres
located on Fremont Street in Quilcene, WA. In compliance with state and federal law, the total
just compensation for total taking of all acres in fee simple title is $118,000 as determined by the
appraisal dated June 24, 2013 and completed by Jo Schaefer, which was confirmed by the review
appraisal dated September 18, 2013 completed by Joseph H. Granger.
By signing this notice, you acknowledge that you were made aware of the just compensation of
the property under consideration and provided an opportunity to identify any potential people
who may be eligible for relocation assistance. This does not obligate you to sell your property or
any rights in it.
Owner(s) signature:
Please provide below the name and addresses of anyone living on the portion of the property that
may be sold:
Please retain this letter for your records, and return a completed copy to me as soon as possible. If
you have questions please call me.
Sincerely,
Tami Pokorny
Environmental Health Specialist II
COMMUNITY HEALTH ENVIRONMENTAL HEALTH
DEVELOPMENTAL DISABILITIES WATER QUALITY
MAIN: (360) 385 -9400 ALINAYS Mo ORKonNG IFOR 4 SAFER ANEP MAIN: (360) 385 -9444
FAX: (360) 385 -9401 HEALTHIER COMMUNITY FAX: (360) 379 -4487
REVIEW APPRAISER CERTIFICATE
Project: Big Quacene River in Jefferson County, WA;
Water Quality Acquisition Project Parcel Tax Nos. 991200501 & 702241004 in
Jefferson County, WA
Property Owner. Mike O. Bergeson
Owner's Address: P.O. Boa 262 QuilceBe, WA 98376
Property Addresd/LocatioE: XXX Fremont Street Quitcene, WA 98376.
The following appraisal has been made on the subject property and is the subject of this review:
APPRAISER VALUE DATE BEFORE VALUE AFTER VALUE VALUE DIFFERENCE •I.MATrON
TAKM DAMAGES SFECBENEFM
1. J. Schaefer 6-14 -2013 $118,000 NA $118,000 $118,000 NA NA
1, the review appraiser, certify to the following:
1. The above appraisal report has been reviewed by the undersigned and was found to have followed accepted appraisal principles
and techniques in the valuation of real property in accordance with existing State law.
2. That the determination of value which is set forth below has been independently reached based on appraisals and other factual
data of record without collaboration or direction. The analyses, opinions, and conclusions in this review report are limited
only by the assumptions and limiting conditions stated in this review report, and are my personal, unbiased professional
analyses. opinions, and conclusions.
3. 1 have no direct or indirect present or contemplated future personal interest in such property or in any benefit from the
acqudsition of such property appraised, and 1 have no personal interest or bias with reaped to the parties involved.
4. 1 did personally inspect the subject property to be acquired and a representative sample of the comparable sales applicable
thereto on September 14, 2013.
S My compensation is no contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use
of, this review report.
6. Appraisal Nl and my analyses, opinions, and conclusions were developed and this review report was prepared in conformity
with the Uniform Standards of Professional Appraisal Practice and with the Uniform Appraisal Standards For Federal land
Acquisitions.
7. Any fads and/or data presented by the review appraiser and used in the review process are true and cornea.
8. No one provided significant professional assistance to the person signing this review report.
9. 1 further certify that if this certificate is to be used in conjunction with a Federal aid project, all of the approved just
compensation is eligible for Federal reimbursement.
Just Compensation is:
Land Taken in Fee: 2.03 mil acres @ $30,000 per acre (R) = $ 61,000
All Improvements' Contribution
I
Total Just Compensation for this larger parcel $ 1189000.
WA State Certified General real estate appraiser number. !
General R 1100549
` Joseph H. Granger, Review Appraiser
Date Signed: September 18, 2013
d.#L Greer, Revlearer PW 1 of 4 Papw Parcel: Bergeson
APPRAISAL REVIEW CONCLUSIONS
Appraisal #1 was received for review on or about September 11, 2013; it is referred to herein as "the appraisal ".
The subject larger parcel is correctly determined in the appraisal as a 2.03 m/l acre tract of land partially
encumbered with wetlands/buffers. It is currently improved with an older single family residence comprised of a
mobile home with wood framed living area attachment, totalling 584 SF of living area. There are also several sheds
and a large barn, a carport, fences and cross - fencing, and a large pond. The land's highest and best use as though
vacant is supported in the appraisal as residential development with up to 2 homes per zoning, demand, physical
features, its grendfathered density status, and trends. Thus, all of its existing improvements fully contribute value to
the land. The property is currently occupied by the fee owner.
The appraisal problem is a total taking of all 2.03 acres in fee simple title. Located within the taking are the above
mentioned improvements.
The purpose of the taking is for water quality enhancement/protection and salmon enhancement/protection. Since
the appraisal problem is a total taking, there are no issues of severance damages or special benefits.
Appraisal #1 is a complete appraisal assignment in a self- contained report utilizing the WSDOT narrative format;
these are sufficient to solve the appraisal problem.
Appraisal #1 processes a Sales Comparison Approach to value the land as vacant; no other approach is appropriate
or typical. It analyzes and compares two land sales and one listing in the vicinity /neighborhood, concluding raw
land value at $61,000 (about $30,000 per acre); this is reasonable and supported.
The appraisal then processes a Cost Approach to value the subject's buildings, fencing, well, and septic, concluding
their total contribution value at $54,550. However, the Cost Approach is not appropriate or typical since
measurement of accrued depreciation is not reasonably achievable for this age and type of property.
The appraisal then process a Sales Comparison Approach to whole property value; no other approach is
reasonable or typical. It analyzes and compares three sales and three listings of residentially improved properties in
the vicinity /neighborhood, reasonably concluding a value for the subject whole property at $118,000.
The reviewer notes that the whole property sales in the appraisal are not very closely comparable, so a wider search
was conducted in review, resulting in the attached Reviewer's Sales #1 through #4 that lend further support to the
value found in the appraisal.
There are several typographical errors in the appraisal but correction of these would not alter the value conclusions
reached. The reviewer rounds all calculations per the appraisal.
There are personalty (chattel) items in/on the subject property that are not included herein: tools;
unattached equipment; personal belongings; window covers/treatments; unattached appliances; and
furnishingstf urniture.
The following are included herein as realty: attached appliances; attached shelves, attached cabinetry;
built -in furniture; built -in equipment such as well and heating; attached light fixtures; and the wood
stove.
There are no tenant -owned realty items taken/affected.
The appraisal and this review use the correct methods and techniques. The market data in the
appraisal and attached hereto are adequate and appropriate to solve the appraisal problem. The value
conclusions reached in this appraisal and in this review are reasonable and tit the market evidence.
J.H. [hanger, Renewer Pape 2 of 4 Papas P~.-Bergeson
APPRAISAL REVIEW SALIENT INFORMATION
Property Rights Appraised
Unless snectfi otherwise in this review, the property tights appraised constitute the fee simple interest
Date of Value
The effective date of the value opinion for the property in this review is 6-24 -2013.
Competency of Reviewer
The reviewer both the knowledge and experience required to competently perform this review; a detailed
resume is available upon request. The reviewer is appro ved by the Federal Highway Administration, Washington
State Transportation Department, and the IAC (now RCO) to perform fee appraisal re views for public agencies
and trusts in Washington State. The reviewer is a state certified appraiser with the General classification (expires
1- 13 -14).
Purpose of this Review
Overall, the purpose is to estimate the Just Compensation due the larger parcel owner for a partial taking as of
6-24 -2013. This is done by estimating the Fair Market Value of the larger parcel.
Use of this Review
It is understood that this Reviewer's Certificate will be used for acquisition / funding purposes by the client,
Jefferson County.
Scope of this Review
Those commonly recognized valuation methods and techniques most appropriate for valuing the subject properties
were done in this review. This review involved a reasonably detailed inspection of the subject property, the subject
neighborhood, and surrounding/competing neighborhoods. Sales and listings of competing properties were
investigated before any conclusions of value were made.
The Income and Cost Approaches to value were not employed in this review because said approaches are not
market typical for the subject's type of property, and because the Sales Comparison Approach is sufficient to solve
the subject appraisal problem.
Definition of the Larger Parcel
The "Larger Parcel" is the parent parcel; it is the real property that is the subject of this review. It is that real
property that has Unity of Use, Unity of Ownership, and Contiguity.
Definition of Fair Market Value
"Fair Market Value" is the amount in cash which a well - informed buyer, willing but not obliged 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 and might in reason be applied. (Washington Pattern
Instruction 150.08).
Fair Market Value and Market Value are equivalent.
J.H. Grimm, ROVI M Paga 3 of 4 Pagsa P~.-Bergeson
APPRAISAL REVIEW ASSUMPTIONS & LIMITING CONDITIONS
1. The property descriptions supplied to the reviewer are assumed to be correct;
2. No surveys of the properties have been made by the reviewer and no responsibility is assumed in connection
with such matters. Maps in the appraisal are included only to assist the reader in visualizing the properties.
Property dimensions and sizes should be considered 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 title is assumed to be good and merchantable and vested as noted;
4. Information furnished by others is assumed to be true, correct , and reliable. A reasonable effort has been made
to verify such information; however, no responsibility for its accuracy is assumed by the reviewer;
5. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless so specified in review.
The properties are assumed to be under responsible ownership and competent management;
6. It is assumed that there are no hidden or unapparent conditions of the properties, their subsoil, or their
structures which would render them more or less valuable. No responsibility is assumed for such conditions or for
engineering or testing which may be required to discover them;
7. Unless otherwise stated, the existence of hazardous material, which may or may not be present in or on the
properties, was not observed by the reviewer. The reviewer has no knowledge of the existence of such materials on
or in the properties. The reviewer, however, is not qualified to detect such substances. The presence of any
potentially hazardous materials may affect the value of the properties. The value estimates in this review are
predicated on the assumption that there is no such material on or in the properties that would cause a loss in value.
No responsibility is assumed for any such conditions, or for the expertise or engineering knowledge required to
discover them. The client is urged to retain an expert in this field if desired.
8. Unless otherwise stated, no environmental impact studies were either requested or made in conjunction with
this review, and the reviewer hereby reserves the right to alter, amend, revise, or rescind any of the value opinions
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 review;
10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless
nonconformity has been specified, defined, and considered in this review;
11. It is assumed that all required licenses, consents, or other legislative or administrative authority from any local,
state, or national governmental or private entity or organization have been or can be obtained or renewed for any
use on which the value estimates contained in this review are based;
12. The reviewer will not be required to give testimony or appear in court because of having made this review
unless arrangements have been previously made therefor;
13. Possession of this review 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 reviewer 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 review, 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 reviewer.
Nor shall the reviewer, client, firm, or professional organization of which the reviewer is a member be identified
without the written consent of the reviewer;
15. The liability of the reviewer, employees, and subcontractors is limited to the client only. There is no
accountability, obligation, or liability to any third party. If this review 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 reviewer is in no way responsible for any costs incurred to discover or correct any
deficiencies in the properties;
16. Acceptance and/or use of this review constitutes acceptance of the foregoing assumptions and limiting
conditions.
J.M. Grergm, Revferver Pape 4 of 4 Pepe* Parcel: Bergeson
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SELF - CONTAINED APPRAISAL REPORT
Mike Bergeson Property
XX Fremont
Quilcene, WA 98368
as of
June 24, 2013
Prepared for
Jefferson County Public Health
615 Sheridan Street
Port Townsend, WA 98368
SCHAEFER STANDAERT HERNANDEZ APPRAISAL GROUP, INC
3381 NW BUCKLIN HILL RD STE A
SILVERDALE, WA 98383
�S—Cbaefer
4tautil�n Appraisal Group, Inc. •
C./ I y/ emandez
981 auNW Hill R4 Sm A6angYSH'A 98383•h,=u60)618J5]e.Fa Ha)6B 5530•rn,l rNg' ,bile
July 23, 2013
fami Pokorny
Jefferson County Water Quality and Environmental Health
615 Sheridan Street
Port Townsend, WA 98368
RE: Mike O. Bergeson
XX Fremont Street
Quilcene, Washington 98376
Ms. Pokomy
I have completed the appraisal assignment pertaining to the above
referenced property.
The subject of this appraisal assignment is the Mike O. Bergeson property
located on 2.3 acres off Fremont Street which includes two tax parcels. The
property includes Linger Longer Road.
The purpose of the appraisal is to estimate the market value of the fee simple
interest of the property for your organizations use in negotiating a sale price
with the landowner. The effective date of valuation is June 24, 2013.
This report was prepared in accordance with and is intended to conform with
the Uniform Standards of Professional Appraisal Practice (USPAP) as
formulated by The Appraisal Foundation and Washington State Recreation
and Conservation Office Manual 3, Acquiring Land: Policies.
The Jefferson County is the contracting client. 0
Z5chaefer
Standaert Appraisal Group, Inc.
Hernandez
3381 Bucklin Hill Rd, Suite A Silverdale, WA 98383 • Phone (360) 613 -5528 • Fax (360) 613 -5530 • email schgdonobi.net
July 23, 2013
Tami Pokorny
Jefferson County Water Quality and Environmental Health
615 Sheridan Street
Port Townsend, WA 98368
RE: Mike O. Bergeson
XX Fremont Street
Quilcene, Washington 98376
Ms. Pokorny:
I have completed the appraisal assignment pertaining to the above
referenced property.
The subject of this appraisal assignment is the Mike O. Bergeson property
located on 2.3 acres off Fremont Street which includes two tax parcels. The
property includes Linger Longer Road.
The purpose of the appraisal is to estimate the market value of the fee simple
interest of the property for your organizations use in negotiating a sale price
with the landowner. The effective date of valuation is June 24, 2013.
This report was prepared in accordance with and is intended to conform with
the Uniform Standards of Professional Appraisal Practice (USPAP) as
formulated by The Appraisal Foundation and Washington State Recreation
and Conservation Office Manual 3, Acquiring Land: Policies.
The Jefferson County is the contracting client.
The value conclusion in this report is based on certain assumptions and
limited conditions
The highest and best use of the property is residential use. Based on the
research and analysis documented in the attached report it is my opinion that
the market value of the fee simple interest in the property as of June 24,
2013 is $118,000.00.
The seller is identified as Mike O. Bergeson, PO Box 262, Quilcene, WA
98376.
Your attention is directed to the following pages of data and analysis on
which the reported value conclusions are in large part based.
As in the case of any narrative appraisal the reader's attention is directed to
the Underlying Assumptions and Limiting Conditions which are included in
the accompanying report.
Respectfully sr' i . -dfe!cz!1Ip!
Tcf bf j d
EQ!do >IIp!Tcf bf j s?p >Ta
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EbLf ;!3124/1: /13!23;52;55!
Jo Schaefer .18(11(
Washington State Certified General Real Estate Appraiser
Certification 1100629
TABLE OF CONTENTS
TABLE OF CONTENTS
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS ------------- - - - - -1
CERTIFICATION ------------------------------------------------------------------- - - - - -3
IDENTIFICATION OF SUBJECT PROPERTY------------------------------- - - - - -5
SUMMARY OF APPRAISAL PROBLEM-------------------------------------- - - - - -5
ZONING-------------------------------------------------------------------------------- - - - - -7
PHOTOGRAPHS--------------------------------------------------------------------- - - - - -9
LEGAL DESCRIPTION--------------------------------------------------------------------------- - - - -17
PROPERTY RIGHTS APPRAISED----------------------------------------------- - - - -18
PURPOSE OF THE APPRAISAL ------------------------------------------------- - - - -18
INTENDED USE /USER OF APPRAISAL
PROPERTY DESCRIPTION ---------------
OWNERSHIP HISTORY --------------------
TAXES------------------------------------- - - - - --
19
21
23
23
AREA DATA AND REAL ESTATE MARKET TRENDS -------------------- - - - -23
VALUATION PROCEDURES------------------------------------------------------ - - - -31
SALE COMPARISON ADJUSTMENT GRID ---------------------------------- - - - -38
LAND SALE COMPARISON ADJUSTMENT GRID ------------------------- - - - -40
COMPARABLE PHOTOGRAPHS------------------------------------------------ - - - -44
RESUME-------------------------------------------------------------------------------- - - - -61
ADDENDUM--------------------------------------------------------------------------- - - - -66
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report has been made with the following general assumptions:
1. No responsibility is assumed for the legal description provided or for
matters pertaining to legal or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated.
2. The property is appraised free and clear of any or all liens or
encumbrances unless otherwise stated.
3. Responsible ownership and competent property management are assumed.
4. The information furnished by others is believed to be reliable, but no
warranty is given for its accuracy.
5. All engineering studies are assumed to be correct. The plot plans and
illustrative material in this report are included only to help the reader
visualize the property.
6. It is assumed that there are no hidden or unapparent conditions of the
property, subsoil, or structures that render it more or less valuable. No
responsibility is assumed for such conditions or for obtaining the
engineering studies that may be required to discover them.
7. It is assumed that the property is in full compliance with all applicable
federal, state, and local environmental regulations and laws unless the lack
of compliance is stated, described, and considered in the appraisal report.
8. It is assumed that the property conforms to all applicable zoning and use
regulations and restrictions unless non - conformity has been identified,
described, and considered in this appraisal report.
9. It is assumed that all required licenses, certificates of occupancy, consents,
and other legislative or administrative authority from any local, state, or
national government or private entity or organization have been or can be
obtained or renewed for any use on which the opinion of value contained in
this report is based.
S chaefer
Standaert Appraisal Group, Inc. 1
Hernandez
10. It is assumed that the use of the land is confined within the boundaries or
property lines of the property described and that there is no encroachment or
trespass unless noted in the report.
11. Unless otherwise stated in this report, the existence of hazardous
materials, which may or may not be present on the property, was not
observed by the appraiser. The appraiser has no knowledge of the existence
of such materials on or in the property. The appraiser, however, is not
qualified to detect such substances. The value estimated is predicated on the
assumption that there is no such material on or in the property that would
cause a loss in value. No responsibility is assumed for such conditions or for
any expertise or engineering knowledge required to discover them. The
intended user is urged to retain an expert in this field, if desired.
12. Possession of this report, or a copy thereof, does not carry with it the
right of publication.
13. The appraiser, by reason of this appraisal, is not required to give further
consultation or testimony or to be in attendance in court with reference to the
property in question unless arrangements have been previously made.
14. Neither all nor any part of the contents of this report (especially any
conclusions as to value, the identity of the appraiser, or the firm with which
the appraiser is connected) shall be disseminated to the public through
advertising, public relations, news, sales, or other media without the prior
written consent of the appraiser
15. The facts, observations and conclusions contained in this report are
believed to be consistent with information available as of the date of
valuation.
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CERTIFICATION
I do hereby certify to the best of my knowledge and belief:
• That the statements of fact contained in the report are true and
correct.
• The reported analyses, opinions and conclusions are limited only by
the reported assumptions, limiting conditions and legal instructions
and are the personal, unbiased professional analysis, opinions and
conclusions of the appraiser.
• The appraiser has no present or prospective interest in the property
appraised and no personal interest or bias with respect to the parties
involved.
• The compensation received by the appraiser for the appraisal is not
contingent on the analysis, opinions, or conclusions reached or
reported.
• This appraisal has been made in conformity with the appropriate
State and Federal laws and requirement and complies with the
contact between the agency and the appraiser.
• The appraisal was made and the appraisal report prepared in
conformity with the Appraisal Foundation's Uniform Standards for
Professional Appraisal Practice and Washington State Recreation
and Conservation Office Manual 3, Acquiring Land: Policies
• The appraiser has made a personal inspection of the property
appraised and that the property owner accompanied me on the
inspection. I have also personally made a field inspection of the
comparable sales relied upon in making said appraisal. The subject
and the comparable sales relied upon in making said appraisal were
as represented by the photographs contained in said appraisal.
• No one provided significant professional assistance to the appraiser.
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• The property has been appraised for its fair market value as though
owned in fee simple estate.
• The opinion of value is the result of and is subject to the data and
conditions described in this report.
• The appraiser previously appraised the subject property on the
following date January 12, 2012.
• Per the investigation undertaken the market value of the fee simple
interest in the Mike Bergeson property as of June 24, 2013 as
described herein is concluded to be:
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Washington State Certified General Appraiser
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IDENTIFICATION OF SUBJECT PROPERTY
The subject of this appraisal includes 2.03 acres of land accessed off Fremont Street in
Quilcene, Washington. The property runs east from Fremont Street and is bounded on the
east line by Linger Longer Road. It includes two Jefferson County Tax parcels identified
as:
SUMMARY OF APPRAISAL PROBLEM
The subject property is a 2.03 acre property located on Fremont Street in Quilcene,
Washington in Jefferson County. The assignment is to determine the market value of the
fee simple interest of the entire property for the purpose of consummating a transaction
between the County of Jefferson on behalf of the Jefferson County Public Health and the
property owner. The appraisal and appraisal report are to be in material compliance with
the Uniform Standards of Professional Appraisal practice and Washington State
Recreation and Conservation Office Manual 3, Acquiring Land: Policies.
LOCATION
The subject is located near the western shore of Hood Canal, the central portion of
Jefferson County in the small unincorporated waterfront community of Quilcene. It is
shouldered by the marine waterway and the Olympic National Park. The Olympic
National Park encompasses 1,400 square miles and is 95% designated wilderness lands.
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ASSESSED VALUE 2012
4
Parcel 4
Acres
Land
Improvements
Total
2013 Taxes
1
991200501
$37,500
$20,000
$57,500
Tax exempt
2
702241004
$ 581
None
$ 581
Tax exempt
SUMMARY OF APPRAISAL PROBLEM
The subject property is a 2.03 acre property located on Fremont Street in Quilcene,
Washington in Jefferson County. The assignment is to determine the market value of the
fee simple interest of the entire property for the purpose of consummating a transaction
between the County of Jefferson on behalf of the Jefferson County Public Health and the
property owner. The appraisal and appraisal report are to be in material compliance with
the Uniform Standards of Professional Appraisal practice and Washington State
Recreation and Conservation Office Manual 3, Acquiring Land: Policies.
LOCATION
The subject is located near the western shore of Hood Canal, the central portion of
Jefferson County in the small unincorporated waterfront community of Quilcene. It is
shouldered by the marine waterway and the Olympic National Park. The Olympic
National Park encompasses 1,400 square miles and is 95% designated wilderness lands.
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Jefferson County having an estimated population of approximately 29,000 is one of the
least populated Counties in Washington State.
Quilcene is approximately twenty miles from Port Ludlow and Port Hadlock and thirty
two miles from Port Townsend. These are the largest urban areas of the County and are
easily accessed via Highway 101 and State Routes 104 and 20.
The immediate neighborhood consists of mostly older homes which are a mix of
manufactured and stick built of varying ages, design, condition and quality with some
located on expensive saltwater or marine view sites creating a large value range.
The downtown area within walking distance is mostly commercial consisting of service,
professional office space, and schools. Residential properties are predominant along the
waterfront (marine and river) with many being on larger acreage sites. There has been an
increase in non -profit and government activity to recapture critical habitat along the
numerous marine and fresh waterways.
Because of the rural location and pristine nature surrounding the neighborhood, many
parks, hiking trails, marinas and campgrounds are located nearby including Seal Rock
Campground, Mount Walker trailhead, Pleasant Harbor State Marine Park and
Dosewallips State Park.
PROPERTY DESCRIPTON
The subject includes two separate tax parcels totaling 2.03 acres. As shown on the plat
map the two parcels are separated by an old street that has been partially vacated. The
property is bounded by Fremont Street to the west and Linger Longer Road to the east.
Older single family homes are located to the north and south along Fremont Street. The
subject is mostly level, and is irregular in shape. The east portion includes an area of
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extensive wetlands with a small pond. The majority of the property is fenced pasture
land. The subject is accessed off Fremont Street, a paved county road running along the
west property line. The subject has no site address and is identified by a Beware of
Hermit Sign on the garage /workshop all mail goes to a post office box.
ZONING
R:5 The purpose of this rural residential zone is to allow for continued residential
development in areas of Jefferson County consisting of relatively high density pre-
existing patterns of development along the County's coastal areas and within areas within
or adjacent to Rural Centers and Rural Crossroads.. In addition this district seeks to
support and foster Jefferson County's existing rural residential landscape and character
by restricting new land divisions to a base density of 1 unit per 5 acres.
In accordance with Jefferson County zoning regulations the large parcel is zoned as R:5
or one dwelling unit per five acres. Provided setback, environmental, and regulatory
requirements are observed, the larger tax parcel could be developed into one single
family residential site. The subject site while smaller 5 acres is improved with a
residence. The zoning was changed under the mandated growth management act. The
parcels are grandfathered into legal, non - conforming parcels. The zoning is not expected
to change in the near future.
HIGHEST and BEST USE
The subject is improved with a single family residence. The area has an established
demand for residential and recreational use properties. The subject is accessed via paved
county road, power is available. A private well and an on -site septic system serves the
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property. These are typical utilities for the market and do not adversely impact
marketability. The subject includes a small pond and wetland area. After analysis of the
property it is the conclusion of this report that the highest and best use of the subject is
concluded to be utilized as a residential home site.
Final Value Estimate
Fee Simple Value $118,000.00
Date of Valuation June 24, 2013
Date of Inspection June 24, 2013
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' PHOTOGRAPHS
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LEGAL DESCRIPTION
Parcel A:
Lots 1 to 6, inclusive, Block 5, Original Townsite of Quilcene, as per plat recorded in
Volume 2 of Plats, page 33, records of Jefferson County, Washington.
Parcel B:
The portion of Tax No. 6 lying south and west of the fight of way of the Linger Longer
County Road, as conveyed to Jefferson County by deed recorded November 4, 1966
under Recording No. 189972, records of Jefferson County, Washington, the whole of said
Tax No. 6 being described as follows:
The fraction of land situated, lying and being in the Southeast corner of the Northwest 1/4
of the Northwest 1/4 of Section 24, Township 27 North, Rage 2 west, W.M. as described
in deed recorded in Volume 38 of Deeds, pages 497 to 500 inclusive, records of Jefferson
County, Washington and east of Lot 2, Block 6, H.W. Campbell's Addition as per plat
recorded in Volume 2 of Plats, page 107, records of Jefferson County, Washington;
EXCEPT that portion, if any lying within Quilcene Avenue.
All situate in the County of Jefferson, State of Washington.
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PROPERTY RIGHTS APPRAISED
The property rights appraised are those of the fee simple estate. Fee simple estate is
defined as the: "absolute ownership unencumbered by any other interests or estate,
subject only to the limitations imposed by the governmental powers of taxation, eminent
domain, police power and escheat"
PURPOSE OF THE APPRAISAL
The purpose of the appraisal is to estimate the market value of the fee simple interests of
the whole property as is. This assignment does not involve a partial acquisition in the
form of a conservation easement or taking of a portion of a larger tract. The identified
2.03 acre property represents the entire ownership held by Mike O. Bergeson.
Accordingly the larger parcel is defined as property that has unity of ownership,
contiguity and unity of use. In this instance the property is two contiguous parcels held by
a single owner. The entire property constitutes a larger parcel the entire 2.03 acre is
appraised as an integrated unit.
The term "market value" is defined in the Uniform Appraisal Standards for Federal Land
Acquisitions as: Market value is the amount in cash, or in terms reasonably equivalent to
cash, for which in all probability the property would have sold on the effective date of the
appraisal, after a reasonable exposure time on the open competitive market, from a
willing and reasonable knowledgeable seller to a willing and reasonably knowledgeable
buyer with neither acting under any compulsion to buy or sell, giving due consideration
to all available economic uses of the property at the time of appraisal.
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INTENDED USEXSER OF APPRAISAL
Jefferson County is the contracting client. It is the appraiser's understanding that Tami
Pokorny of Jefferson County Water Quality and Environmental Health as well as her
authorized associates or representatives are the intended user of this report. Jefferson
County is proposing to purchase fee simple ownership of the property and that this
appraisal will be used by the client in negotiations with the landowner to determine the
consideration to be paid for the property.
SCOPE of APPRAISAL
The appraisal assignment involved the following tasks:
Determination of the property to be appraised;
Inspection of the property and research of its various attributes;
Review of known easements, encumbrances and title exceptions which affect highest and
best use and value;
Consideration of market forces and trends affecting the value of the property;
Discussions with local real estate professionals;
Determination of the property's highest and best use;
Application of all appropriate approaches and methods of valuation;
Compilation, analysis and confirmation of market data;
Formulation of an opinion of value;
Preparation of an appraisal report;
The property was inspected on foot by the appraiser in the accompaniment of the owner
Mike O. Bergeson and Tami Pokorny from Jefferson County Water Quality and
Environmental Health. Aerial photographs, topographic and other maps and description
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data was provided by the Jefferson County Assessor's office and other public information
sources were also relied upon to assess and evaluate the property's physical
characteristics and factors influencing value. Local, state and federal ordinances,
regulations and restrictions and local practices were considered in analyzing the
property's highest and best use. The effective date of valuation is the most recent date of
property inspection, June 24, 2013. The property was previously inspected December 21,
2011. This appraisal was prepared in July and August of 2013.
Covenants, Conditions, Restrictions and Easements
The appraiser was provided with a title report for the property by First American Title
Company of Jefferson County dated August 1, 2012, a copy of which is provided in the
Addenda section of this report. Under Exceptions the following items were noted.
1. Right of Way of Quilcene Avenue, if any, and any easement rights of adjoining
properties of the public to that portion of the land included within such road, as
disclosed by Jefferson County Assessor's records.
2. Taxes as billed reflect an exemption as allowed under RCW 84.36 for senior
citizens, Any curtailment of the exemption may result in an additional amount
being due.
3. Right to make necessary slopes for cuts or fills upon said premises for Linger
Longer Road as granted by deed recorded November 4, 1966 under Recording
No. 189972.
4. There were no easements, exceptions or conditions noted in the title report that
would impact the highest and best use of the subject property.
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PROPERTY DESCRIPTION
The subject consists of two tax parcels totaling 2.3 acres. Each tax parcel could be
developed into a single family residence given they are grandfathered into legal, non-
conforming parcels. The property is bounded by Linger Longer Road to the West and
Fremont Street to the east, residential properties to the North and South West. The mostly
level site includes a small year -round pond with associated wetlands on the southeast
corner bordering Linger Longer Road.
The site is irregular in nature with the east boundary following the curve of Linger
Longer Road. (see map on page 15) Access is off Fremont Street, a paved county
maintained road. Wet land and pasture lands are located along the eastern portion of the
site.
Public power is available on Fremont Street, a private well and private septic system
serves the site. These are typical utilities for the market and do not adversely impact
marketability. The subject parcel is located in FEMA Flood Panel 530069 0855 B dated
7/19/1982 zone Al. The ground cover is mostly pasture grasses. There is deciduous tree
cover around the pond area. This type of property has many functions critical to the
health and maintenance of ecosystems by providing filtering systems and buffers against
flooding in adjoining uplands and habitats for wildlife.
Improvements
The Bergeson property is improved with an existing Detroiter manufactured home
measuring approximately 8x41. The manufactured home has a stick built living room
addition of approximately 256 square feet. (Approximate total square footage 584). The
manufactured home has been incorporated into the addition with a shed roof which
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covers the existing home and includes a carport. The interior is in average condition and
includes a wood stove in the living room. The foundation is post and pier. Roof is comp,
siding is wood. Mr. Bergeson occupies the manufactured home as his residence.
Assessor records estimate improvements were constructed in 1950.
Additional improvements include three small shops, small barn and covered wood
storage area. The outbuildings are in fair condition.
Outbuildngs; 14x24= 336 sf /8x12= 96 sf/16xl2= 192 sf/ barn 488 sf with 256 sf
concrete slab.
The site is fenced with woven wire field fencing with metal gates in average condition.
The land contributes the greatest amount of the property value; this is typical of acreage
size parcels in the Quilcene market area.
Minerals
There does not appear to be any commercially valuable mineral deposits on the property.
Compliance with Standards and Report Type
The appraisal report adheres to the Appraisal Foundation's Uniform Standards of
Professional Appraisal Practice (USPAP) and the appraisal is intended to comply with
requirements of the Washington State Recreation and Conservation Office Manual 3,
Acquiring Land: Policies.
The depth of discussion contained herein is specific to the needs of the client and for the
stated intended use of the report. Further supporting information is retained in the
appraiser's work file.
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OWNERSHIP HISTORY
Title to the subject is vested in: Mike O. Bergeson, as his separate estate. The property
transferred as a quit claim deed on February 13, 1976. There are no transfers of record
over the past ten years.
TAXES
Land Assessment 4991200501 $37,500 Improvements $20,000 Total $57,500
4702241004 $ 581
Property Taxes (2013) $ 10.16
The taxes are reduced as the owner qualifies for a senior tax exemption. Per the Jefferson
County Assessor's office the assessed value has a 50% reduction due to the extensive wet
lands located on the site.
Competency
The appraiser has both the knowledge and experience required to competently perform
the appraisal. The appraiser has successfully completed the Valuation of Conservation
Easements Certification Program (April 2008) jointly sponsored by the Appraisal
Institute and the American Society of Farm Managers and Rural Appraisers. The
appraiser has prior experience in the appraisal of property in the subject's market area.
The appraiser's specific qualifications are included in the addendum of this report.
AREA DATA AND REAL ESTATE MARKET TRENDS
The subject is located in unincorporated Jefferson County in the small waterfront
community of Quilcene which has a population of 596. US 101 running north and south
through Quilcene provides a scenic route south to Olympia, the state capital and north to
Port Angeles, SR 20 heads north to Port Townsend the County seat and only incorporated
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city in Jefferson County. Major support services and employment centers are located in
Port Townsend. The immediate neighborhood consists of a combination of site built and
manufactured homes of varying ages, design, condition and qualities. In addition many
have marine and or mountain views creating a wide range in home values. Most parcels
are acreage size. Though upscale, luxury homes can be found scattered throughout the
region particularly on the waterfront and on large acreage estates it is a more rural setting
and has seen a decline in property values over the past three years. After years of rapid
appreciation from 2004 to 2007 the local market was adversely impacted by the national
economic downturn, lack of financing opportunities for investors and increasing
foreclosure. As seen in many West Puget Sound markets the further from employment
centers typically the bigger the impact on declining property value. The area remains
popular for its rural setting and access to recreational areas including the Olympic
National Forest /Park and marine activities in Hood Canal. Quilcene and the smaller
neighboring Brinnon have historically been known for their timber and shellfish
industries. Though these two industries are not as prevalent now, they do provide for
some of the local employment and commerce. Port Townsend Paper, located on the
waterfront in Port Townsend, is the area's largest single employer. The local economy
has been complemented with an increase in tourism and light industry. In addition, the
area has seen an influx of retirees moving into the area. This had in turn created growth
in the construction industry as well as the retail and services sectors to support the influx
of residents.
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Preliminary marketing and permitting has begun for the development of an upscale golf
resort and community in the Pleasant Harbor area of Brinnon. Plans include retail,
recreational, and residential development that tie in with an existing marina.
Boundaries
The subject is bounded to the north by The Quilcene River, to the east by Quilcene
Bay, to the south by Leadville Avenue, and to the west by the Shady Lane.
Neighborhood Cycle
Neighborhoods cycle through periods of growth, stabilization, decline, and revitalization.
The subject neighborhood may generally be described as being located near the core of
Quilcene which is designated as a Rural Village Center with most future commercial
development restricted to this area. There is an adequate supply of undeveloped land
remaining in the area for future expansion and redevelopment of older residential
properties along the commercial corridor. Residential development is somewhat
restricted with few subdivisions planned in the Quilcene area. New housing will continue
to occur on larger parcels outside of the Quilcene and Brinnon growth areas. Waterfront
housing will continue to be in demand with upward pricing due to limited supply of bare
land and few homes on the market for resale.
The subject neighborhood may generally be described as in a state of stabilization with
the potential for growth pending the improvement of economic conditions.
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External Obsolescence
The neighborhood is established and stable. The overall appearance of the neighborhood
properties is fair to average for existing structures and good for newer structures.
Economic Conditions
Jefferson County is rural and its location, environment, scenic beauty and access to a
diversity of recreational opportunities support its growing reputation as a retirement
community. Both local and out -of -state retirees are attracted to the area because of the
lifestyle and sense of community the small towns provide. Historically the areas primary
economic and employment sectors included the manufacturing of timber products and
agriculture. With the down -turn in the building industry and reduced demand for lumber
the unemployment rate in Jefferson County currently stands at 8% which is above the
average for counties in Washington State. The County's current economic and
employment sectors represent a shift from timber products and agriculture to include the
tourism. A growth in tourism and supporting services is reflected by the number of
visitors to Olympic National Park which averages more than 3 million a year. The
second -home market has also become an important component of the local economy
however this has seen a slump during the past three years due to the decline in the local
and regional housing market.
Real Estate Price Trends
The subject's residential market area includes south Jefferson County and the
communities of Quilcene and Brinnon. The influx of relatively affluent residents who are
not dependent on the somewhat erratic local economy for employment serves as a
mainstay of demand within the local housing market. Due to recent economic conditions
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ithe area has experienced a decline in sales activity and prices for both Mmes and vacant
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the same fluctuation as other property types and have declined at a lesser rate than upland
values. Recent statistics indicate the market has begun to smbi ize.
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HIGHEST AND BEST VSE
Highest and best use as defined in the appmisal of real estate, durteemh edition, by the
appraisal institute, 2008 u: "TM reasonable probable and legal use of vacant land or an
improved property, which is physically possible, appropriately supported, fumucially
feasible and that results in the highest value."
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The highest and best use analysis provides the foundation for a value conclusion by
identifying the specific market position of the subject and thereby specifying appropriate
market comparison for it as well as the relevant approaches to value. It is governed by
consideration of the property's legal, physical and economic potential. A property's
physical characteristic, quality of natural resources, social, political and economic
surroundings, historical background and prevailing market dynamics all provide the
context in which its highest and best use is determined.
The conclusion of highest and best use as though vacant reflects the fact that land value is
derived from its potential use. Land has limited value unless there is a present or
anticipated use for it; the amount of value depends on the nature of the land's anticipated
use, according to the concept of surplus productivity. Among all reasonable, alternative
uses, the use that yields the highest present land value, after payments are mode for labor,
capital and coordination, is generally regarded as the highest and best use of the land as
though vacant. In other words the highest and best use of land as though vacant is the use
that brings the highest return to the land after the three agents of production have been
compensated.
Because the use of land can be limited by its improvements, highest and best use must be
determined separately for the land as improved and for the land as vacant and available to
be put to its highest and best use.
There are four criteria utilized in the highest and best use analysis. The highest and best
use must be legally permissible, physically possible, financially feasible and maximally
productive. This definition applies specifically to the highest and best use of land. It is
to be recognized that in cases where a site has existing improvements the highest and best
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use may very well be determined to be different from the existing use. The existing use
will continue however unless and until the land value in its highest and best use exceeds
the total value of the property in its existing use.
The determination of highest and best use results from the appraiser's judgment and
analytical skill, i.e., that the use determined from analysis represents an opinion not a fact
to be found. In appraisal practice the concept of highest and best use generally represents
the premise upon which value is based.
Larger Parcel
The Uniform Appraisal Standards for Federal Land Acquisitions, 2000 defines Larger
Parcel as: "that tract, or those tracts, of land which possesses a unit of ownership and has
the same, or an integrated, highest and best use ".
The subject includes two tax parcels which possess a unit of ownership and have the
same highest and best use. For the purposes of this appraisal report the larger parcel
includes two parcels totaling 2.03 acres. (Each have separate tax numbers and each would
be developable as separate sites.)
Highest and Best Use as Though Vacant
The first criterion analyzed is that of Legally Permissible. Legality is often the first factor
considered in a highest and best use analysis. It is a useful starting point because the uses
that are legally permissible and those that are not cannot often be easily distinguished.
This criterion may eliminate a wide array of possible uses. In determining which uses are
legal permissible the appraiser considers the limitations placed on the property by zoning
cost as well as environmental regulations, building codes, fire regulations and title
restrictions which may be as equally important.
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In the subject's case, the property is fee simple interest and zoned Rural Residential 1:5.
As such, Jefferson County allows up to one dwelling per five acres. Since the subject
parcels were legal prior to implementation of the new zoning codes, each parcel can be
developed into a single family residence despite being less than 5 acres. One of the
parcels is impacted by environmental influences, notable a small pond and wet land area.
(A wetland delineation was not available to the appraisers.) However physical inspection
revealed that while the site is not regularly inundated with water (other than the pond
area) there was some standing water on the property and the owner indicated there is a
high water table in the area. There is an existing home on one parcel suggesting that
development is suitable.
The second criterion is that of Physically Possible. This criterion is typically addressed by
the site's ability to support development. Factors generally considered in the review of
the site's ability to support development include access, shape, area, topography, utility
services availability and review of any unusual or adverse factors that may limit
development.
The subject is currently accessed via a paved county road and appears to be mostly level.
The subject's total shape and size are typical for residential parcels in the market. It is an
acreage size site. Access to public power is available. Water is via private well. Sewer is
not available private septic systems serve the area. These are typical utilities for the
subject neighborhood.
The third criterion is identified as Financially Feasible. To be financially feasible a
proposed use or development is expected to be capable of producing a positive return on
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investment within the normal parameters of investment return over a reasonable period of
time (economic life)
The subject is currently zoned for residential development as are most of the surrounding
parcels. The subject has good physical characteristics for single family residential
development including proximity to minor support facilities, public access road, public
access to power and mostly level site.
The final criterion is that of Maximally Productive. Maximum Productivity (or profit)
uses are typically chosen from the uses deemed to be Physically Possible, Legally
Permissible and Financially Feasible. The subject property has access and utilities
available for development.
Highest and Best Use as Improved
The subject improvements located on parcel 991200501 are grandfathered into current
use and have been present since approximately 1950. The highest and best use of the
property as it currently exists is residential.
VALUATION PROCEDURES
The appraisal process provides an opinion of value for real property by looking at the
relationship of the subject property as compared to other properties that constitute the
potential market. To obtain a supportable opinion of value the procedure must be
thorough, logical, and concise. The ultimate goal of the valuation process is a well-
supported value conclusion that reflects all of the pertinent factors that influence the
market value of the property being appraised.
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Market Value is defined by the Uniform Appraisal Standards for Federal Land
Acquisitions as:
"Market value is the amount in cash, or on terms reasonably equivalent to cash, for which
in all probability the property would have sold on the effective date of the appraisal, after
a reasonable exposure time on the open competitive market, from a willing and
reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with
neither acting under any compulsion to buy or sell, giving due consideration to all
available economic uses of the property at the time of the appraisal."
Appraisers employ three approaches to estimate the market value of a property, the Cost
Approach, the Income Approach and the Sales Comparison Approach.
The Cost Approach involves estimating the value of the land as if vacant, adding the
estimated replacement costs new of the improvements and deducting the estimated
accrued depreciation from the replacement cost new.
The Income Approach values the property through the process of capitalizing the
estimated net income stream resulting from a commercial pursuit. This approach is based
on the premise that real estate should earn enough to pay for the improvements over the
remaining economic life as well as a return on an appropriate amount on the investment
and is more typically applied to properties with significant improvements. The
subdivision method or development approach is a variation of the Income Approach
which accounts for all costs and revenues associated with the development and sale of
residential lots. The subject includes 2.3 acres. Currently there is little demand for multi-
site development. Accordingly the Income capitalization approach to value was not
considered.
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The Sales Comparison Approach relies on sales of similar types of property, taking into
consideration differences between the sale property and the appraised property,
accounting for those differences through an adjustment process to arrive at a value
conclusion. It is based on the principle of substitution. "The value of a property tends to
be set by the price that would be paid to acquire a substitute property of similar utility
and desirability." The Sales Comparison Approach is the most common and preferred
method of land valuation when an adequate supply of comparable sales are available.
The search parameters and geographic extent of the market research is described in the
Methodology Section of this report. The Sales Comparison Approach and the Cost
Approach was used to value the property.
Methodology
The following sources from which transactional data was obtained included, Northwest
Multiple Listing Service, Realquest, Real Estate Brokers, Jefferson County Assessor's
office, appraisers and transaction reports were purchased from Real Market Data. To the
extent practical the primary sales used to determine value were confirmed with one or
more of the parties to the transaction and visual inspection by the appraiser.
An extensive geographic search revealed few similar sales, also due to economic
conditions market activity has declined during the past three years making it necessary to
use sales occurring over a longer time frame than would be desirable under more typical
market conditions. The highest and best use of the subject land has been determined to be
residential. An effort was made to locate comparables having similar characteristics, i.e.
wetlands.
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The land value of the subject is estimated by a comparative analysis of similar vacant
land sales situated in the subject's market area. This is known as the Sales Comparison
Approach to Value. Units of comparison are the components into which a property may
be divided for purposes of comparison. A common unit of comparison in rural properties
is price per acre and price per residential site. Comparability does not imply that the
properties are identical but that the sale properties exhibit a level of use and experience
market demand similar to the subject property.
Elements of comparisons in this analysis include property rights, legal encumbrances,
financing terms, conditions of sale (motivation), available utilities, zoning and highest
and best use. The most variable elements of comparison are the physical characteristics of
the site, which include size, shape, topography, access and location.
In the present case, the difficulty in finding similar sales resulted in adjustments that are
greater than typically recommended. The adjustments were made to the sale price and not
applied to a unit of scale for ease of illustration.
Of the transactions discovered and analyzed the following have been selected as the most
pertinent for comparative purposes.
VALUATION
Three sales of improved properties, three listings having improvements, one listing of
vacant land and two sales of vacant land are summarized on the following pages. A sales
comparison table with descriptive information and sale transaction details for each
comparable has been provided. Also, included is a map and photographs for each of the
comparable properties used in the sales analysis. I have viewed each of the sales and
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' wNirm xi demands regarding each sale transaction with the buyer, seller or broker when
possible. All sale details are considered to come from credible sources.
The Uniform Standards of Profossiorel Appraised Practice and the Uniform Appraisal
Standards for Federal Lard Acquisitions allow th grid to provide either Quantitative
(numeric adjustments) or Qualitative adjustments (+ or - ) or both. Qualitative
adjustments were made where differences between the subject and the compembles were
difficult to quantify.
Units of comparison are the components into which a property may h divided for
purposes of comparison. Comparability does not imply that the properties are identical
bar that the sale properties exhibit a level of use and experience market demand similar to
the subject property.
• Units of comparison most relevant to the subject were the dollar per development unit as
the highest and best are of the subject is residential development. The sales comparables
have some elements of comparison Ail are located in the subject's market area All are
wad for residential use. The differences in she size and the condition of the
improvements do rent suggest that Ih total Price of We wWwables w as appropri w emit
of comparison and does not account for tit value differences attributable to other
elements of comparison. Other elements of comparison used to this analysis included
differences in physical variables which are discussed at length on the following pages.
•
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Sale #1 is the sale of an REO property the seller is FHLMC. This property is located
less than a mile from the subject. The home was constructed in 1920 and includes 1,948
square feet making it larger than the subject. This home has received some updating and
was superior in condition to the subject. The site is mostly fenced. The zoning isR:20.
The site being less than 20 acres is grandfathered as a single building site. The realtor
felt this property while an REO sold very close to actual market value. The property was
marketed for 7 days at $119,900 and purchased by Jeffrey Conley for $119,900.
Sale #2 was an REO Sale; the property is located less than a mile from the subject. The
home was constructed in 1907 and includes 1,340 square feet on the 1st floor making it
larger than the subject. Per a conversation with the Listing and Selling Realtor the home
suffered water damage and included mold. The septic was a metal barrel with holes for
drainage. The home was not financeable and was purchased for cash. The purchaser has
begun work on the property. The MLS listing did not include interior photos. The zoning
is the same as the subject R:5 the site being less than 5 acres is grandfathered as a single
building site. The property was marketed for 480 day at $112,185 and purchased by
Thomas A. Brotherton and Cassandra Brotherton in May 2013 for $50,000.
Sale #3 was an Arm's Length Transaction located 8 miles north of the subject. The home
was constructed in 1890 and includes 1,333 square feet. The home has received some
updating and was superior in condition. The subject is within walking distance of support
facilities sale 3 is approximately 8 miles from support facilities. The site is smaller than
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the subject but is zoned R:5 and is grandfathered as a single site. The property was
marketed for 130 days at $169,000 and purchased by Mark Gordon for $!25,000.
Listing #1 is a single wide manufactured home including 616 square feet which is similar
to the subject's size. This property is located two blocks from the subject the site is just
under one acre and also zoned R:5. This home has a contained septic tank which is
pumped as it fills. It will be necessary for this property to be sold as cash or owner
financed. The property has been listed for 177 days, there has been no price reduction.
Listing 2 is located two blocks from the subject. This site includes a small home that is
rented for $500 a month. The site originally included additional cabins one has been torn
down and the other is not livable. The zoning is rural village center which allows more
than one residence. The site includes 30,500 square feet which is smaller than the subject.
This property has been listed for 15 days at $99,000.
Listing 3 is located 1.5 miles south. A garage /workshop is located on the 1.04 acre site.
The zoning is R:5 however the site is grandfathered as a single building site. This
property has been listed for 44 days at $110,000. This listed property was included to
demonstrate the type of property currently available that would be considered somewhat
similar to the subject.
Land Listing 1 is located less than �/z mile from the subject. This site is fenced for
animals and includes a small stable for horses. Water is available. The site is 10 acres in
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size and is zoned R:20 or one unit per twenty acres. This site is larger than the subject but
is grandfathered as a single building site. This property has been listed for 107 days at
$160,000 with no price reduction. This listed property was included to show potential site
value for the subject if the existing structures were removed.
Land Sale 1 is a vacant site located two miles east of the subject. This property includes
3 acres and is zoned R:5. This site is grandfathered as a single building site. A shared
well serves the property. The original listing price was $79,000, purchase price on
5/31/2012 was $73,800.
Land Sale 2 is a vacant site located north of the subject. This property has an old barn
that is falling down located on the site. The old existing home was removed prior to the
sale. The site includes 1.69 acres zoning is R:5. Water is available. The original listing
price was $79,500 the property was purchased 6/19/2013 for $61,000 cash.
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COMPARABLE PHOTOGRAPHS •
COm ble #1, 450 Frank Beck Road, Qwlcene, WA
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Adjustment Process
The adjustment process accounts for various conditions affecting the transactions and
differences between the sale properties and the appraised property in respect to the
different attributes relevant to their particular market niche.
Market Conditions
Trends in rural land prices are difficult to quantify; while the market appears to be
improving no market condition adjustments were felt to be warranted and none were
made. Northwest Multiple Listing Statistics that indicate a consistent price drops in
2009, 2010 and 2011 with more stable prices in 2012 and 2013. Given the variable
nature of the properties represented the more indicative likeness of market conditions is
the decline in the number of sales occurring over this time frame. The sale dates for the
comparables extend from 2012 to 2013.
Conditions of Sale
All of the sales transferred the fee simple interest. Two of the sales included were REO
and one was an Arm's length transaction. Two of the sales were cash. The two land sales
that were included were Arm's Length Transactions. Arm's Length Transactions reflect
typical motivations of buyers and sellers with no unusual circumstances or duress. Public
agencies and land conservancy organizations are often considered to be highly motivated
purchasers however are equal participants in the subject's market along with other buyers
and the pricing of their transactions is attuned to the competitive market. A condition of
sale adjustment was made to comparables one and two. No adjustment was made to
comparable three which was an Arm's Length Transaction. The subject being located in
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the small community of Quilcene in rural Jefferson County has a population of
approximately 591. There are a very limited number of recent sales of similar residences
or vacant land in the subject's neighborhood that are available for use as comparable
sales. In the Quilcene area there have been four sales of improved properties in the past
600 days within the price range of $50,000 to $200,000 three of which are bank owned.
There are currently four listings one of which is bank owned. During this time period
there have been five sales of vacant land.
Property Size
Acreage size sites are more typically priced and valued on the price per acre or price per
allowable building site. The set- back requirement for wet lands somewhat reduces the
useable building area for the subject. An extraordinary assumption was made that the
subject will support two single family sites. None of the comparables due to zoning can
be developed into two sites. While some of the comparable are located on sites larger
than the subject their zoning allows only one single family residence.
Location
Location can have an effect on value as influenced by proximity to support services,
amenities and neighborhood character. A location map shows the location of the subject
and the comparables. Comparable sale three was further from support facilities
comparables one and two enjoy similar convenience to support facilities.
Buyers are influenced by access roads. The subject is accessed from a public paved road
as are all of the comparables.
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Utilities
All the comparables have power and water, all are or will be served by private septic
systems.
Critical Area Site Impacts
Critical areas in Jefferson County are identified as environmentally sensitive natural
resources that have been designated for protection and management in accordance with
the requirements of Washington State's Growth Management Act. Such areas are
important to the preservation of the ecological functions of the natural environment of the
area. The subject property includes a small wetland area. The appraiser has included a
wet lands map within the report. The appraiser has taken appropriate steps to determine
the extent of critical areas located on the subject based upon the best available
information which did not include any delineation by a qualified specialist. No sales of
similar properties were located.
Comparison Adjustments
Comparable #1
Qualitative adjustments were made to comparable one, for site size, lack of wet lands,
improvement quality, condition, gross living area and lack of out - buildings. A qualitative
adjustment was made the number of allowable units, comparable one is a single site.
Comparable #2
Qualitative adjustments were made to comparable two, for site size, lack of wetlands,
gross living area, improvement quality, condition and lack of out - buildings. A qualitative
adjustment was made for the number of allowable units, comparable two is a single site.
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Comparable #3
Qualitative adjustments were made to comparable three, for site size, lack of wet lands,
improvement quality, condition, gross living area, lack of out - buildings and inferior
location. A qualitative adjustment was made for the number of allowable units,
comparable three is a single site.
Listing #1
Listing one is a listing of a small home similar in size to the subject. Qualitative
adjustments were made for site size, lack of wet lands, improvement condition and no
fencing. An adjustment was also made for this property not being a closed sale. The
adjustment was made on the average percentage of difference between the asking price
and the selling prices of similar vacant sites in the subjects Jefferson County market area.
A qualitative adjustment was made for the number of allowable units.
Listing #2
Listing two is a listing of a small home similar in size to the subject. Qualitative
adjustments were made for site size, lack of wet lands, and no fencing. An adjustment
was also made for this property not being a closed sale. The adjustment was made on the
average percentage of difference between the asking price and the selling prices of
similar vacant sites in the subjects Jefferson County market area. No adjustment was
made for the number of allowable units.
Listing #3
Listing three is a listing of an existing building used as a garage. Qualitative adjustments
were made for site size, lack of wet lands, and superior condition of out - building. An
adjustment was also made for this property not being a closed sale. The adjustment was
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made on the average percentage of difference between the asking price and the selling
prices of similar vacant sites in the subjects Jefferson County market area. A qualitative
adjustment was made for the number of allowable units.
Land Listing #1
Listing one is located less than �/z mile from the subject. This site is fenced for animals
and includes a small stable for horses. The site is 10 acres in size and is zoned R:20 or
one unit per twenty acres. Qualitative adjustments were made for site size, lack of wet
lands. The location is equal and the site is fenced. This property has been listed for 107
days at $160,000 with no price reduction. The listed price appears to be somewhat above
the current market. This listed property was included to show potential site value for the
subject if the existing improvements were removed.
Land Sale #1 is located east of the subject. Qualitative adjustments were made for
differences in site size, location and while an older sale is very similar to the subjects site
in utility and appeal.
Land Sale #2 is located north of the subject and includes 1.69 acres. An old barn in very
poor condition is located on the site. The existing old house was removed prior to the
sale. The property has water available. Qualitative adjustments were made for differences
in site size, lack of wet lands and number of allowable unit. This comparable is the most
recent acreage size sale located.
Site valuation
The land value of the subject was estimated by a comparative analysis of similar vacant
land sales situated in the subject's market area. One listing and two sales were identified
as being most pertinent for comparative purposes. Comparability does not imply that the
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properties are identical but that the sale properties exhibit a level of use and experience
market demand similar to the subject. The limited number of sales is due in part to recent
economic conditions that have affected the Jefferson County real estate market. Jefferson
County having a population of approximately 29,000 and a higher than typical
unemployment rate has seen a turn down in prices during the past five years. The market
during the past eight months does appear to be stabilizing.
All of the comparables have the same utilities available as the subject. The comparables
have a price range of $24,600 to $36,094 per acre. It is felt the subject's site value would
be within this range. With sale one being located closest to the subject and sale two being
the most recent sale both comparables were given consideration with most weight to the
comparable two which is the most recent sale. Opinion of site value is 2.03 acres x
$30,000 = $60,900. Rounded to $61,000.00.
Cost Approach
In the application of the Cost Approach the estimated replacement cost new for the
building and site improvements is based on construction data obtained from the
nationally recognized Marshall Valuation Service cost publication. The replacement cost
per building is as follows.
Home
584 square feet @ $45.00 = $26,280
Barn
488 square feet @ $35.00 = $17,080
Workshops
624 square feet @ $30.00 = $18,720
Well/septic
$27,000
Fencing
$20,000
Total
$109,080
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Depreciation and economic life; No external depreciation from neighborhood conditions
was observed. Physical depreciation for the improvements was estimated at 50% with a
life expectancy of ten years.
Summary
Site Value $ 61,000
Improvements $109,080
Depreciation - $ 54,540
Total $115,540
Cost approach Opinion of Value
One Hundred Fifteen Thousand Five Hundred Dollars
Rounded
Valuation Analysis /Reconciliation of Value
An extensive search was made for recent sales of properties that exhibit similar physical
traits, appeal and utility as the subject property. The lack of recent sales made it
necessary to expand the search parameters to sales of smaller sites and improvements of
differing architectural styles. An emphasis was made to find sales of improved sites
where the majority of the value is in the land and the improvements are relegated to
shelter housing. Of the sales researched, three were chosen that would most likely
compete with the subject if available on the open market while three listings were
included which have similar site influences. The closed sales are all within the subject's
immediate market area.
The limited number of sales made it necessary to expand the search parameters to include
sales over the normally desirably time frame of six months and to include a listed
properties.
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A summary grid is located on pages 38, 39 and 40 which shows the elements of
comparison between the subject and the comparables. Comparable 1 was considered
somewhat similar being a very recent sale. Comparable 2 was considered inferior but is
located closest to the subject has the same zoning and is a grandfathered site. As
explained, the improvements were inferior. Comparable 3 was considered superior. This
home is further from support facilities however the improvement were superior. This
home is zoned the same as the subject and is a grandfathered site. Listing 1 was
considered inferior. The small site is zoned the same as the subject and is a grandfathered
site. The structures are inferior. Listing 3 is considered inferior and also located very
close to the subject. Listing 3 does not include a residence but includes a large
outbuilding that was used as a garage /workshop. This property is not located within
walking distance to support facilities. Listing 4 is a land listing very close to the subject.
Comparables 5 and 6 are closed sale of vacant sites that would be competing with the
subject site if the subject was without improvements.
All of the comparables /listing were given some consideration with most weight to
comparable sales 1 and 3 and listings 2 and 3. The Cost Approach supports the final
estimate of value.
Based on the evidence and analysis presented it is my opinion that the market value of
the fee simple interest in the Bergeson property as of June 24, 2013 is $118,000.00
Sales Comparison Opinion of Value
One Hundred Eighteen Thousand Dollars
$118,000.00
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RESUME
Jo Yvonne Schaefer
Washington State General Certification 4 1100629
Tax Number 91- 1602493
Schaefer Standaert Hernandez Appraisal Group Inc
3381 Bucklin Hill Road
Silverdale, WA. 98383
(360)613 -5528
Fax (360)613 -5530
Mail P.O. Box 2257
Bremerton, Washington 98310
sch e,donobi.net
www.Appraisers- RealEstate.com
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Jo Yvonne Schaefer
EDUCATION
Bachelor of Science... Administration
Society of Real Estate Appraisers
101 - Seattle University
102 - University of Portland
Demo Lock -In - University of Georgia
Instructor's Clinic - Boston, Massachusetts
201 - Mesa, Arizona
202 - Indianapolis, Indiana
Real Estate Appraisal VIII - Seattle Community College
Subdivision Analysis — Seattle Pacific University
Uniform Appraisal Standards for Federal Land Acquisitions
Valuation of Conservation Easements Portland Oregon
International Right of Way Association
Principles of Right of Way - Seattle, Washington
Independent Fee Appraisers
Mobile Home Appraising - Seattle, Washington
Principles of Appraising - Tacoma, Washington
Appraisal of Waterfront Properties
Green Valuation Specialist - Porter Works
Seminars
Train the Trainer Education Seminar
Institute of Financial Education
Home Construction
Marshall -Swift Cost Book
Western Resources Institute
Home Energy Rating
Federal Housing Appraisal Program
Standards of Professional Practice
Appraising Subdivisions
Review Appraising
Shorelines- Washington State University Extension
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Jo Yvonne Schaefer
Professional Highlights
United Mutual Savings Bank
Bremerton, Washington 98310
Branch Manager
Weyerhaeuser Mortgage Corporation
Silverdale, Washington 98383
Staff Appraiser
Schaefer Appraisal Company
Bremerton, Washington 98310
Real Estate Appraiser
Bremerton Appraisal Company, Inc.
Bremerton, Washington 98310
Real Estate Appraiser /Owner
Pierce College
Tacoma, Washington 98466
Real Estate Instructor, Evening Class
Continuing Education for Realtors
Bremerton, Washington 98310
School Administrator and Instructor
Institute of Financial Education
Instructor
Great Northwest Federal Savings and Loan Association 1995 - 1999
Bremerton, Washington 98310
Chief Appraiser /Assistant Vice President
Schaefer Callahan Hernandez Appraisal Group Inc.
3381 Bucklin Hill Road Suite A
Silverdale, Washington 98383 Current 1999 to 2008
Kitsap, King, Mason and Jefferson County Superior Court Expert Witness
Memberships
Silverdale Rotary - Silverdale Chamber of Commerce - Kitsap Board of
Realtors, Appraisal Institute, South Sound Chapter, Past President -
Washington State Appraiser Review Board - Washington State Appraiser
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Advisory Board, Past Member - Kitsap County Board of Equalization —
Bremerton Chamber of Commerce
APPRAISAL CLIENTS
Federal Housing Administration Kitsap County Housing Authority
City of Port Orchard
City of Bremerton
City of Poulsbo
Coldwell Banker Relocation
City of Port Townsend
West Side Community Bank
Colwell Banker Relocation
Merrill Lynch Relocation
Washington State Parks Dept
Union Bank
Bank of America
Great Peninsula Conservancy
Port of Manchester
Home Street Bank
West One Bank
U.S. Bank Corp
NorWest Mortgage
CH2M Hill
Liberty Bank
Kitsap Federal Credit Union
Navy Federal Credit Union
Network Mortgage Services
Harborstone Credit Union
Key Bank
Kitsap Bank
Kitsap Mortgage
Bank of California
Small Business Administration
Fire District 15
Sewer District 5
Timberland Bank
Hood Canal Salmon Enhancement Group
Washington State Parks and Recreation Commission
Various Attorneys and Individuals
Appraisal Purposes have included: Fair Market Value for Sale or Purchase,
Refinance, Estate Purposes, New Construction, Fire Damage, Right of Way, Vacant
Land, Waterfront and Acreage, Relocation, Condominiums, Divorce and Property
Disputes, Easement Evaluation, Sub - divisions, Commercial Office, Retail, Medical
office, Storage Facilities, Place of Worship, Wet Lands, Marina, PMI Removal,
Highest and Best Use Analysis, Trust Lands.
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Standaert Appraisal Group, Inc. 64
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standaert Appraisal Group, Inc. vi
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standaert Appraisal Group, Inc.
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standaert Appraisal Group, Inc. xi
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I hIS -Metch 18 not based'' on a survcry at
1- the property. Is is furnished without charge
lcotkkrtesy of First American Title Company
so1* for the purpose of assisting in
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