Highland Heights Elementary School 1751 East Chester Road Heights Elementary... · 2015-09-28 ·...

AN APPRAISAL OF

Highland Heights Elementary School

1751 East Chester Road Richmond, Indiana 47374

American United Appraisal Company, Inc. Real Estate Appraisers

Jay E. Allardt, SRA

Stephen B. Parmerlee Darrin R. Hollensbe

Daniel D. Tudor Tina L. Hoopingarner

Jay D. Allardt

August 4, 2015

INVOICE Ms. Karen Scalf, Chief Financial Officer Richmond Community School Corporation 300 Hub Etchison Parkway Richmond, Indiana 47374-5398 RE: Highland Heights Elementary School 1751 East Chester Road Richmond, Indiana 47374 Appraisal services for referenced property. File#C150709C FEE: $2,450.00

Due in 30 Days AUA Federal ID #35-1838677 Thank you

Please Remit to: American United Appraisal Co., Inc. 211 S. Walnut St. Muncie, IN 47305

American United Appraisal Company, Inc.

Real Estate Appraisers

211 S. Walnut Street, Muncie, IN 47305‐2803 (765) 288‐8493 Fax (765) 288‐8496

Jay E. Allardt, SRA Stephen B. Parmerlee

Darrin R. Hollensbe Daniel D. Tudor

Tina L. Hoopingarner Jay D. Allardt

August 4, 2015 Ms. Karen Scalf, Chief Financial Officer Richmond Community School Corporation 300 Hub Etchison Parkway Richmond, Indiana 47374-5398 RE: Highland Heights Elementary School 1751 East Chester Road Richmond, Indiana 47374 Dear Ms. Scalf, In accordance with your request, a real estate appraisal has been completed on the above referenced property. The market value of the subject property assumes prudent management of the real estate and the property is appraised as of the date of inspection which was July 29, 2015. Furthermore, the market value is subject to the Assumptions, Limitations and comments, which are a part of this report. Market value is further defined within this report. The purpose of this report is to estimate the market value of the Fee Simple Interest of the subject property as of July 29, 2015. It is my understanding that the appraisal report will be utilized by the Richmond Community School Corporation in considering a sale or disposition of the real estate.

The subject of this appraisal report is a single level elementary school known as Highland Heights Elementary. The building was constructed in 1972 and includes typical areas found in an elementary school including a gymnasium, cafeteria, classrooms, library and administrative offices. The building structure contains a gross floor area of approximately 43,200 square feet. The improvements are situated on a site of 12.0+/- acres. The building has a street address of 1751 East Chester Road, Richmond, Indiana 47374. The appraisal report has been prepared in accordance with the minimum generally accepted appraisal standards as set forth by the Appraisal Subcommittee of the Federal Financial Institution Examination Council and the Standards of Professional Appraisal Practice of the Appraisal Institute. This appraisal was prepared by the undersigned. This Appraisal Report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser’s files. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not responsible for unauthorized use of this report. No responsibility has been assumed for matters legal in nature, nor has any opinion on title been rendered and this appraisal assumes marketable title. Liens and encumbrances, if any, have been disregarded and the property was appraised as though free of indebtedness. Employment and compensation for making this report are in no way contingent upon the value reported and I certify that I have no present or future interest in the subject property. The undersigned, does hereby certify that to the best of his knowledge and belief, the statements contained in this appraisal, and upon which the opinions expressed herein are based, are correct, subject to the limiting conditions. As a result of my analysis, I have formed an opinion that the market value of the fee simple interest (as defined in the Report), subject to the definitions, certifications, extraordinary assumptions, hypothetical conditions, and limiting conditions set forth in the attached Report, as of July 29, 2015 was:

FORTY SEVEN THOUSAND FIVE HUNDRED DOLLARS ($47,500.00)

It is further recommended that a range of value in which to negotiate a sale or transfer of the subject property would range from $30,000 to $60,000. THIS LETTER MUST REMAIN ATTACHED TO THE REPORT, WHICH CONTAINS 41 PAGES PLUS RELATED EXHIBITS, IN ORDER FOR THE VALUE OPINION SET FORTH TO BE CONSIDERED VALID. With respect to marketing and exposure times for facilities such as the subject, the typical range is in a period of 6 months to approximately 2 years based on sales of other suburban and rural sales of surplus school properties. Please contact me if you should have any questions concerning the contents of this letter or the attached report. Respectfully submitted,

Jay E. Allardt, SRA Indiana Certified General Appraiser #CG69100507

CREATED BY: AMERICAN UNITED APPRAISAL COMPANY, INC. 1

This Appraisal Report which is intended to comply with the reporting requirements set forth under; 1) the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and 2) Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP) for an Appraisal. As such, it presents summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser’s files. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated below. The appraiser is not responsible for unauthorized use of this report. CLIENT: Ms. Karen Scalf, Chief Financial Officer

Richmond Community School Corporation 300 Hub Etchison Parkway Richmond, Indiana 47374-5398

APPRAISER: Jay E. Allardt, SRA Indiana Certified General Appraiser #CG69100507 American United Appraisal Co., Inc. 211 South Walnut Street Muncie, Indiana 47305

SUBJECT: Highland Heights Elementary School 1751 East Chester Road Richmond, Indiana 47374


EXECUTIVE SUMMARY

Highland Heights Elementary School 1751 East Chester Road

Richmond, Indiana 47374

Type of Improvements Single story masonry & steel public school building

Age 1972

Gross Bldg. Area 43,200 sqft.+/-

Site Area

12.00 acres

Zoning

AG-Agricultural

Overall Condition of Improvements

Average

Date of Valuation

July 29, 2015

Opinion of Market Value

$47,500.00


PURPOSE OF APPRAISAL: The purpose of this appraisal is to provide the appraiser’s best estimate of the market value of the subject real property as of the effective date of July 29, 2015. Market value is defined by the federal financial institutions regulatory agencies as follows: Market Value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they

consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of

financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold

unaffected by special or creative financing or sales concessions granted by anyone associated with the sale

INTENDED USER: Richmond Community Schools INTENDED USE OF REPORT: For the sole and exclusive use in considering a sale or disposition of the subject property. INTEREST VALUED: Fee Simple EFFECTIVE DATE OF VALUE: July 29, 2015 DATE INSPECTED: July 29, 2015 DATE REPORT COMPLETED: August 4, 2015


SCOPE OF WORK: In completing this appraisal assignment, the appraiser:

Discussed the need for appraisal services and scope of work to be completed with Karen Scalf, Chief Financial Officer for the Richmond Community School Corporation.

Inspected both the interior and exterior of the subject property on July 29, 2015 with John Hamilton of the Richmond Community School Corporation. Matt Nepote was also present during the inspection.

Obtained a floorplan and site plan drawing of the subject property from Richmond Community School Corporation.

Obtained factual information from the Wayne County Courthouse including:

o property cards o zoning information o legal description

Obtained a GIS map from the Beacon GIS System for Wayne County.

Sources utilized in obtaining improved sales data include the following:

o appraiser’s office files o superintendants and administrators of area school

corporations o Indiana Real Estate Data, Inc.

Developed the Sales Comparison Approach in estimating the market value of the subject property

The Sales Comparison Approach will provide a credible estimate of market value. Furthermore, it is the belief of the appraiser that the Cost Approach and Income Capitalization Approach are not applicable indicators in estimating the market value of an excess public school facility such as the subject. Reasons for the omission of the Cost Approach include the fact that the subject property is no longer needed by the school corporation and is therefore considered to be a surplus property. As such, the property has little demand in the semi-rural location and also suffers physical as well as functional and external obsolescence. The Income Capitalization Approach has not been developed as properties of this type are not typically purchased by investors for production of an income stream nor are properties of this type typically leased by a school corporation.


This appraisal report is a summary of the appraiser’s data, analyses, and conclusions. Supporting documentation will be retained in the appraiser’s file. Reference is also made to any attachments to this appraisal report. This appraisal report is intended to comply with the minimum standards of the Uniform Standards of Professional Appraisal Practice (USPAP). LEGAL OWNERSHIP: According to Wayne County records, the subject property is titled to:

Richmond Community Schools

PREVIOUS TRANSFERS OF OWNERSHIP/HISTORY OF SUBJECT PROPERTY: There have been no recorded transfers of ownership of the subject property in the three year period preceding the effective date of this appraisal assignment. Furthermore, there are currently no leases or listings in effect for the subject property. It is believed that the Richmond Community School Corporation has owned the subject property since the improvements were constructed in 1972. LEGAL DESCRIPTION: Part of the North Half of the Northeast Quarter, Section 16, Township 14 North, Range 1 West, Wayne Township, Wayne County, Indiana. Parcel #89-16-16-000-203.000-029


DESCRIPTION OF REAL ESTATE APPRAISED Area Description The subject property is located in Wayne County, Indiana and is just north of the corporate limits of Richmond, Indiana. Richmond is the largest city and county seat of Wayne County. The subject property is located 4.1 miles northeast of the Central Business District of Richmond. Population statistics for Wayne County and the City of Richmond are shown in the table below. 1990 2000 2010 2013 Wayne County 71,951 71,097 68,917 67,893 Richmond 38,705 39,124 36,812 36,345 The population of both Richmond and Wayne County has declined over the past three census periods and projections from the Indiana Business Research Center suggests that the population will continue to show a slight decline of approximately 1.5% by the year 2020. Richmond is located in eastern Indiana and Wayne County adjoins the State of Ohio. Richmond and Wayne County have good access to Indianapolis and other larger market areas via Interstate Highway 70 which is located 1.5 southwest of the subject property. Other highway transportation serving Richmond and Wayne County includes Indiana Highways 1, 38, 121, and 227 and US Highways 27 and 40. Major employers within Richmond and Wayne County include the following: Employer Type # Employed Reid Hospital & Health Care Health services 1820 Richmond Community Schools Public education 816 Indiana University East Higher education 625 Belden Wire & Cable Electronic cable manufacturing 575 Richmond State Hospital Hospital 500 City of Richmond Municipality 491 Earlham College Higher education 456 Wayne County Municipality 411 Primex Plastics Corp Manufacturing 340 Autocar Manufacturing 250 The June 2015 unemployment rate for Wayne County was 5.1% compared to 6.6% one year earlier. This compares to a 4.8% June unemployment rate for the State of Indiana. The current employment figures represent a significant improvement over the past 3 to 5 years. Further analysis of the labor force indicates that 21% of the population is employed in manufacturing, 19.2% in healthcare and social services, and 14.7% in governmental employment.


Richmond and Wayne County have seen fairly stagnant economic conditions over the past six to eight years. It is expected that these conditions will continue to exist so long as the county is losing population. The levels of enrollment for the Richmond Community School Corporation over the past 20 years are shown in the table below.

Year Total

Enrollment

2014‐2015 5298

2013‐2014 5304

2012‐2013 5173

2011‐2012 5386

2010‐2011 5544

2009‐2010 5464

2008‐2009 5542

2007‐2008 5634

2006‐2007 5725

2005‐2006 5702

2004‐2005 5910

2003‐2004 5838

2002‐2003 6117

2001‐2002 6206

2000‐2001 6178

1999‐2000 6351

1998‐1999 6535

1997‐1998 6610

1996‐1997 6710

1995‐1996 6756

1994‐1995 6965

1993‐1994 6981

The enrollment figures above show a decline in public school enrollment in Richmond of approximately 24% over the 20 year period. The result is a need for fewer building facilities than what existed 20 years ago. Funding for school corporations as a result of caps on real estate taxes and other factors have caused nearly all school corporations to seek methods of decreasing operating expenses. There has been a trend within East Central Indiana over the past 15 years that includes closing and disposing of surplus school properties as well as streamlining administrative operations. It is believed in the next 5 to 10 years there could be some consolidation of school corporations.


The subject property is located within Wayne Township of Wayne County, Indiana. The location is convenient to Interstate Highway 70, US Highway 27 and is also close to employment and major retail uses on the north side of Richmond. It should be noted that Reid Hospital is located about two miles south of the subject property. If anything, the north side of Richmond has shown a slight amount of growth over the past two decades. However, most of the growth has been commercial rather than residential in nature. It is expected that there would be very limited demand for a surplus school property in this or any other location in Wayne County.


SITE DESCRIPTION

Dimensions and Shape The subject site is essentially rectangular with a rectangular extension to the southwest. The site has 543 feet of frontage on East Chester Road and a maximum north/south dimension of approximately 779 feet. According to legal description, the site has a total area of 12.0+/- acres.

Topography and Drainage The subject site generally slopes from east to west. The GIS map contour show approximately a 20 foot elevation change between the east property line and the southwest corner of the property. The building pad on which the school is located is relatively level. There do appear to be some adverse drainage conditions in the northeast corner of the subject property adjoining the pavement. The subject property is not located in a federal identified flood hazard area. A flood map is shown on the next page.


Easements/Encroachments No title search or survey has been provided to the appraiser. It is assumed that there are easements for public roadway and utility purposes along the north property line. I have assumed that there are no other easements or encroachments that would have an adverse impact on the value or marketability of the property. Environmental No environmental audit has been provided to the appraiser. The appraiser is unaware of all past uses of the subject site or the surrounding property. This appraisal assignment is being completed under the assumption that there are no environmental conditions that would have an adverse impact on the value, marketability, habitability or ability to obtain mortgage financing for the subject property. Utilities Public utilities serving the subject property include electricity, telecommunications, sanitary sewer, and water. There does not appear to be natural gas available at this location.


Street and Other Public Improvements Chester Road is a two lane asphalt surface roadway traveling in an east/west direction past the subject property. Chester Road intersects Arba Pike about ½ mile west of the subject property. Cart Road is located about three-tenths of a mile east.


IMPROVEMENT DESCRIPTION Highland Heights Elementary School is a single story masonry and steel structure which was completed in 1972. Based on measurements provided by the Richmond Community School Corporation and public records, it is estimated the subject property has a gross floor area of approximately 43,200 square feet. Construction features include poured concrete footings; poured concrete foundation walls; a concrete slab floor system; concrete block with brick veneer exterior walls; steel bar joist roof system with tectum decking and a dimensional asphalt shingle roof cover. The windows in the building are original single glazed aluminum units. The exterior doors have been replaced and include bronze colored anodized aluminum frames with insulated glass. Interior finishes include carpet, sheet vinyl, and vinyl composition tiles. The gymnasium floor is maple. There is also some ceramic tile floor coverings in the restroom areas. Interior wall finishes include painted concrete block, ceramic tile, and vinyl covered drywall. Ceilings consist of 2x2 and 2x4 acoustical ceiling tiles in a metal grid system. The exceptions are the gymnasium which is exposed to the steel roof structure and the restrooms and some storage closets which appear to have plaster ceilings. Interior doors are solid core oak units in metal framework. Restroom finishes include ceramic tile flooring, ceramic tile and painted block walls, and metal restroom partitions. The utilization of space within the building includes some conventional classrooms with movable dividing walls and some pod area classrooms. Some of the pod area classrooms have been divided with drywall partitions. Other areas in the building include a gymnasium, cafeteria, kitchen prep area, administrative offices, library and nurses room. There are a total of three sets of boy’s and girl’s restrooms and some additional restrooms adjacent to the cafeteria, office areas, and nurses room. There are some restrooms with smaller fixtures in the kindergarten area of the building.


Mechanical systems include a 1200 amp main electric panel with additional subpanels. Hot water is provided a 119 gallon AO Smith electric water heater which was replaced in 1992. Heating is provided by Trane wall units with individual heat pumps located outside the building. There are a total of 26 heat pumps around the building. Water is provided by Indiana-American Water Company and sewer is provided by the City of Richmond. Site improvements include concrete sidewalks, covered entry areas, asphalt parking and drives, asphalt basketball area and grass recreation areas with playground equipment. It is estimated that based on GIS drawings and county records that there is approximately 34,000 square feet of asphalt paving. The property also includes a two wood frame storage buildings located on the east end of the school, playground equipment, and an old train car-caboose near the rear of the property. These structures are considered incidental and have no contributory value. Your attention is directed to the floorplan drawings of the subject property which were provided by John Hamilton on July 29, 2015. Following the floorplan drawing is a drawing of exterior dimensions.


HIGHLAND HEIGHTS ELEMENTARY SCHOOL EXTERIOR BUILDING DIMENSIONS


SUBJECT PROPERTY PHOTOGRAPHS Front Elevation and East End of Building from Chester Road Front Elevation and West End from Chester Road


SUBJECT PROPERTY PHOTOGRAPHS West Elevation of Building South Side of Front Classroom Wing


SUBJECT PROPERTY PHOTOGRAPHS South Elevation of Rear Classroom Wing Paved Playground Area


SUBJECT PROPERTY PHOTOGRAPHS South and East Elevations East Elevation


SUBJECT PROPERTY PHOTOGRAPHS Grass Courtyard Between Front and Rear Classroom Areas Kitchen and Service Entrances


SUBJECT PROPERTY PHOTOGRAPHS Main Entrance on North Elevation Street View Looking West on Chester Road


SUBJECT PROPERTY PHOTOGRAPHS Street View Looking East on Chester Road Cafeteria


SUBJECT PROPERTY PHOTOGRAPHS Kitchen-Food Preparation Area Library


SUBJECT PROPERTY PHOTOGRAPHS Typical Classroom Kindergarten Classroom


REAL ESTATE TAX ASSESSMENT According to Wayne County records, the subject property has no assessed value for real estate tax purposes. The subject property is owned by the Richmond Community Schools and is exempt from payment of real estate taxes as an institutional use. ZONING According to the GIS maps, the zoning for the subject property is AG Agricultural. This district is generally reserved for agricultural uses including field crops, livestock, etc. However, other incidental uses including public and governmental buildings such as a school and single family residences are also permissible.


HIGHEST AND BEST USE As Though Vacant: The subject site has a total area of 12 acres. The site slopes from east to west with some wooded overgrowth in the southwest corner of the property. The site has access to all public and municipal utilities. The legally permissible uses include agricultural structures, field crops, as well as governmental, school and single family residential uses. There has been very little development of any type in the vicinity of the subject property in recent years. It is concluded that the highest and best use as vacant would be for agricultural purposes. It should be noted that the subject property adjoins agricultural uses to the east and south. As Improved: The subject site is improved with a single level educational facility with a gross floor area of approximately 43,200 square feet. The improvements are in average condition and were built in 1972. Sales of excess public school facilities have typically resulted in utilization of the improvements without any significant modification. Users in some cases have included organizations such as Boys’ and Girls’ Clubs, social service agencies, religious facilities or Charter School corporations. In other instances, public school buildings have been donated to developers who have converted the facilities to low income or senior housing facilities through the use of tax credits to help offset the construction or renovation costs. In return for the utilization of tax credits, the owner of the subject property agrees, for periods ranging from 25 to 40 years, to lease the apartment units to persons at specified percentages of the median household income for that particular county. The subject property is in a suburban-rural location outside of the city limits of Richmond, Indiana. The township does not have a wide variety of social service uses that might occupy a property such as the subject. It is also doubtful that a low income housing development would be undertaken in this location. I have therefore concluded the highest and best use as improved would be utilization by a religious organization, private school, or a child care facility.


SUMMARY OF ANALYSIS AND VALUATION SALES COMPARISON APPROACH The Sales Comparison Approach is a method of estimating market value, whereby, the appraiser selects and analyzes properties with some degree of comparability to the subject property. Adjustments are then made for differences between the subject property and the comparable sales. The driving force behind the Sales Comparison Approach, is that the market value of a property is directly related to the prices of comparable properties. A valuation by the Sales Comparison Approach assumes that there is an identifiable market for the property being valued. The market for surplus school facilities is very limited. The appraiser has been able to find sales of other surplus school properties purchased by individuals, government agencies, public service agencies, and in some cases purchased for conversion to low income housing. The sources utilized in obtaining comparable sales data include appraisers’ office records, administrators of other school systems in east central Indiana, Indiana Real Estate Data, Inc. and information on file in the recorder’s office of counties within east central Indiana.


Sale #1

Name Southeast Elementary School Location 3340 S. Lincoln Blvd., Marion Sale Price $108,000 Sale Date 11/9/2009 Building Size 43,964sqft Land Area 9.52 acres Age 1965 $/Sqft. $2.46 Comments Mostly 1-story building (39,523sf) with

4,441sf walk-out lower level. Contemporary octagonal design. Average to good condition and functional utility. Urban location


Sale #2

Name Desoto Elementary School Location 8400 E. CR 400 N., Muncie Sale Price $36,000 Sale Date 1/5/2011 Building Size 33,784 sqft. Land Area 15.0 acres Age 1958, 1971 & 1997 $/Sqft. $1.07 Comments After advertising for bids, school

corporation eventually sold property at public auction; marketing time was approximately 6 months; new roof in 1997; new interior finishes in 1997; property in very good condition


Sale #3

Name Park Place Elementary School Location 820 E. 5th St., Anderson, IN Sale Price $35,000 Sale Date 3/2010 Building Size 33,859 sqft. Land Area 4.18 acres Age 1953-1954 $/Sqft. $1.03 Comments Average quality single story design; located

adjacent to Anderson University and Park Place Church of God, steam heat system, partial air conditioning. Overall condition inferior to subject property.


Sale #4

Name Liberty-Perry Elementary School Location 9400 Windsor Rd., Selma Sale Price $25,000 Sale Date 4/5/2011 Building Size 39,469 Land Area 15.76 acres Age 1966 $/Sqft. $0.63 Comments Condition inferior to subject property;

located in suburban-rural area SE of Muncie and near Prairie Creek Lake; property is now utilized for Parker Bible Baptist Church


Sale #5

Name Garrison Elementary School Location 4138 Niewoehner Rd, Richmond Sale Price $66,000 Sale Date 6/18/2015 Building Size 47,000 sqft. Land Area 11.36 acres Age 1972 $/Sqft. $1.40 Comments Average quality single story design;

condition of property below average


Sale #6

Name Garfield Elementary School Location 1600 S. Madison St., Muncie Sale Price $133,500 Sale Date 3/2/2010 Building Size 76,250sqft Land Area 4.11 acres Age 1977 & 1949 $/Sqft. $1.75 Comments Two prospective purchasers, school

corporation elected to sell for neighborhood community center; 68,050 sqft. is located on the ground floor, 8,200 sqft. on a second floor; gas boiler heating system


Comments The subject property is most similar in locational appeal to sales 2, 4 and 5. These sales are also located in suburban-rural areas. Sale 5 is the most recent indicator of market value for a surplus school property and is also located just outside the city limits of Richmond. Giving greater consideration to sales 2, 4 and 5, I have concluded the subject property to have a market value equivalent to $1.10 per square foot of gross building area. Apply to subject 43,200 sqft. @ $1.10/sqft. = $47,500 (Rounded)


RECONCILIATON AND FINAL STATEMENT OF VALUE The Sales Comparison Approach is considered to be the only applicable indicator of market value for a surplus educational facility such as the subject. I have therefore concluded the market value of the subject property as of July 29, 2015 was:


It is further recommended that a range of value in which to negotiate a sale or transfer of the subject property would range from $30,000 to $60,000. With respect to marketing and exposure times for facilities such as the subject, the typical range is approximately 6 months to 2 years based on other urban and suburban sales of surplus school properties.


ASSUMPTIONS AND LIMITING CONDITIONS: 1. This Appraisal Report is intended to comply with the reporting

requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser’s files. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not responsible for unauthorized use of this report.

2. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report.

3. The property is appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report.

4. Responsible ownership and competent property management are assumed unless otherwise stated in this report.

5. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.

6. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property.

7. 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 arranging for engineering studies that may be required to discover them.

8. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report.

9. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined and considered in this report.

10.It is assumed that all required licenses, certificates of occupancy 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 estimate contained in this report is based.

11.Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purposes of this report.


12.It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report.

13.The appraisers are not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraisers that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The appraiser’s value estimated is predicated on the assumptions that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser’s description and resulting comments are the result of the observations made during the appraisal process.

14.Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property’s value, marketability or utility.

15.Any proposed improvements are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications.

16.The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate values for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.

17.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 party to whom it is addressed without the written consent of the appraisers, and in any event, only with proper written qualifications and only in its entirety.

18.Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or the firm with which the appraisers are connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraisers.


CERTIFICATION: I certify that, to the best of my knowledge and belief:

The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.

I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three (3) year period immediately preceding acceptance of this assignment.

I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

My engagement in this assignment was not contingent upon developing or reporting predetermined results.

My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment or a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

I have made a personal inspection of the property that is the subject of this report.

No one provided significant real property appraisal assistance to the person signing this certification.

As of the date of this report, I, Jay E. Allardt, SRA, has not completed the continuing education program of the Appraisal Institute.


As a result of my analysis, I have formed an opinion that the market value of the fee simple interest (as defined in the Report), subject to the definitions, certifications, extraordinary assumptions, hypothetical conditions, and limiting conditions set forth in the attached Report, as of July 29, 2015 was:


It is further recommended that a range of value in which to negotiate a sale or transfer of the subject property would range from $30,000 to $60,000.

Jay E. Allardt, SRA Indiana Certified General Appraiser #CG69100507


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Highland Heights Elementary School 1751 East Chester Road Heights Elementary... · 2015-09-28 ·...

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