HomeMy WebLinkAboutRESPONSE - RFP - 7460 APPRAISAL SERVICES - BILL BOARDS1
January 21, 2013
City of Fort Collins
Purchasing Division
215 N Mason Street
Fort Collins, CO 80522
ATTN: Mr. James B. O'Neill II, CPPO, FNIGP
RE: Request For Proposal
7460 Appraisal Services--Billboards
Mr. O'Neill:
Please consider this proposal for Metropolitan Appraisers Inc. to provide real estate
services related to the acquisition of two off-premise outdoor advertising devices
(billboards) due to the construction of the MAX BRT Project.
SCOPE OF WORK
The MAX BRT Project is being funded through the Federal Transit Authority (FTA).
Acquisition appraisals must conform to the Uniform Relocation Assistance and Real
Property Acquisitions Policies Act of 1970 as Amended (the Uniform Act). The
appraisals must also be prepared in accordance with the Uniform Standards of
Professional Appraisal Practice (USPAP) Standard 1 and Standards Rule 2.
In addition, the City of Fort Collins Real Estate Acquisition Management Plan, with a
latest revision date of December 20, 2011, also guides the appraisal services for this
project.
You have requested the submission for this proposal provide the following information:
SUMMARY OF THE PROPOSAL
Metropolitan Appraisers proposes to provide the following appraisal services:
• Provision of two separate appraisal reports with opinions of value for the
easement interest now held by Lamar Outdoor and the sign site interest held by
CBS Outdoor.
• The separate appraisal reports will be complete appraisals presented in a
summary report format.
• The reports will be completed by Gregg Near, MAI, SRA, Colorado Certified
General Appraiser No. 1313136.
• Mr. Near has specific appraisal experience in the valuation of billboards within
Larimer County and will be available for litigation assistance as well as expert
witness testimony should such be required.
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• Mr. Near has been accepted as an expert witness regarding billboard valuations
in numerous Colorado jurisdictions.
STATEMENT OF UNDERSTANDING
Metropolitan Appraisers and specifically Gregg Near, MAI, SRA have decades of
experience and a large portion of Mr. Near's career has involved valuations for eminent
domain purposes. Mr. Near, as will be illustrated in a later portion of this proposal, has
provided value opinions for a wide spectrum of jurisdictions and agencies. Current and
former clients for acquisition purposes include the Colorado Department of
Transportation, the Regional Transportation District, numerous cites, agencies, special
districts and private parties.
The appraiser's task in the above assignments is to provide a disinterested, third party
opinion of the value(s) to be sought for the client's purposes. The client's interest is best
served by development of reasonable opinions based upon adherence to the
appropriate standards dictated by the nature of the assignment.
The value opinion is to be communicated to the client in a report format providing
sufficient information to assist the reader through the valuation process leading to the
conclusion(s) of value. The value conclusion(s) provided to the client are to be
reasonable and supportable. The appraiser's opinion(s) are anticipated to be used by
the client to make an offer, to negotiate an agreement or for other purposes.
Ultimately the appraisal may be presented in litigation proceedings. This may require an
update to the original assignment and potential additional work related to litigation
support. The appraiser must then be prepared to defend his conclusion(s) and his
report(s). In depositions and in trial the appraiser must be a competent and persuasive
witness capable of explaining sometimes very complex processes in layman's terms.
The ideal result of the above process is settlement with the owner and the green light
for the project to go forward without further delay and litigation.
STATEMENT OF METHODOLOGY FOR SIGNBOARD EASEMENTS
The appraisal process is the process in which the data utilized in estimating the value of
the subject property is acquired, classified, analyzed, and presented. The three
approaches to estimating value are the Cost Approach, Income Approach and Direct
Sales Comparison Approach.
The Cost Approach to value has little application in the valuation of billboard structures
but an estimate of the depreciated cost of the improvements, a salvage cost or an
opinion of the sign site value are often questions raised by clients. Reproduction cost
new of the improvements is estimated based on current prices for the component parts
of the improvement(s) either through use of recognized cost service manuals or from
actual construction cost estimates, depending upon the complexity of the assignment.
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(When valuing an off-premise sign CDOT typically requires a cost new estimate: a
depreciated value estimate of the physical structure and a salvage value estimate along
with a cost to move the billboard up to fifty feet.) After estimation of reproduction cost
new, accrued depreciation from all sources is deducted. Accrued depreciation is the
value reduction in the improvements which could occur in three areas, functional
obsolescence, economic obsolescence and physical deterioration. The resultant
amount, (cost new less accrued depreciation plus land/site value), indicates the value of
the whole property using the Cost Approach.
The Income Approach is predicated on the assumption that there is a relationship
between the amount of income a property will earn and its value. At the core of this
theory is the principle of anticipation. This principle recognizes that value results from
the expectation of future benefits. Income Capitalization is an appraisal technique
wherein the anticipated annual net income of the subject property is projected in order
to arrive at an indication of value. Net income in the appraisal process is that income
generated before payment of any debt service and the process of converting it to value
is called capitalization. The two most commonly used capitalization techniques are
direct capitalization, in which an overall capitalization rate is extracted from the market
and applied to the net income; and the discounted cash flow method, where the
anticipated future stream of net income and a reversionary value are discounted to the
present value using an appropriate internal rate of return. In the subject case, without a
clear change in use, the direct capitalization method is considered most appropriate.
The Direct Sales Comparison Approach is utilized in this portion of the analysis for the
leasehold as improved. This approach involves gathering data regarding sales of
comparable-type properties and analyzing the nature and condition of each sale, then
making logical adjustments in comparison to the subject property for any dissimilar
characteristics. Typically, a common denominator is found. In the case of outdoor
advertising signs there are limited sales, a wide variety of signs and sign structures and
the sale may involve billboards, FF&E, (Furniture, Fixtures & Equipment), other
structures and locations which might spread across several states, a region or the entire
nation. In this analysis the appraiser typically relies upon the Effective Gross Income
Multiplier, (EGIM). This is the approach with which the majority of participants in this
market are most familiar.
A final step in the appraisal process is the reconciliation of the value indications. In the
reconciliation the appraiser considers the relative applicability of each of the approaches
utilized, examines the range between the value indications, and places major emphasis
on the one or more which appear to produce the most reliable and applicable solution to
the specific appraisal problem. The purpose of the appraisal, the type of property being
appraised and the adequacy and reliability of the data are considered in this process.
The final estimate of value is intended to approximate the price an informed, prudent
purchaser would pay for the subject property if it were available for sale, on the open
market, on the date of valuation.
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STATEMENT OF PROPOSED PRICE AND COMPLETION DATE
Based on our preliminary analysis of the subject property and the considerations raised
the fee for a suitable report in an eminent domain action will be as follows:
Base Report: Reasonable Market Value-Easement Interest in
One Sign:
$7,500
Base Report: Reasonable Market Value of sign site**: $1,500
2nd Report: Reasonable Market Value-Easement Interest in
One Sign:
$2,500
2nd Report: Reasonable Market Value of sign site:** $1,000
TOTAL: $13,500
**NOTE: Does not include expert construction cost report estimated at $350.00 apiece
It is our recommendation an expert construction cost report be obtained for each sign to
satisfy requirements for a salvage value, possible relocation expense and for greater
confidence in the value by the cost approach.
The fee is for the reports only and does not include court preparation or post appraisal
consultation.
Litigation Services
Due to the potential for litigation the following additional services and fees can apply:
• Preparation for deposition; preparation for trial: $150.00/hour
• Deposition; trial work; testimony: $225.00/hour
Completion Date
Assuming your timely approval of this proposal the appraisal reports can be completed
within approximately six weeks of your notification to proceed. The appraisal
assignment requires the collection and review of significant amounts of data.
Information typically requested from the billboard owner and the owner of the sign site is
attached to this proposal as an exhibit.
For complete analysis of the appraisal question(s) the appraiser will require:
• Three full years worth of contracts with advertisers including:
a) Complete contracts that reflect the advertising to be placed, the time period of
placement, the total cost of the contract, additional locations included in the
contract and any "bonus" or "free" panels included.
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• Current copies of lease(s) with the landowner(s) allowing the placement of the
sign structure.
• Three-year history(s) of lease payments.
• Copies of permits from the Colorado Department of Transportation, Larimer
County and/or the City of Fort Collins
In the experience of the appraiser, billboard operators are extremely reluctant to release
any of the above information. In some cases the operators require assurances of
confidentiality that are at odds with the acquiring agencies procedures.
Metropolitan Appraisers Inc. is confident of the ability to provide satisfactory reports by
the March 29, 2013 completion date. The company cannot be responsible for the
unwillingness or stated inability of the billboard owner or land owner to provide needed
documentation.
COMPANY HISTORY AND EXPERIENCE
Company History
Metropolitan Appraisers Inc. is a full-service real property appraisal firm providing
valuation assignments for a wide variety of properties. If your need is for value opinions
for mortgage, litigation, eminent domain, estate, divorce or partial interests we provide
these services to clients along the Colorado Front Range and the near Western Slope.
Our well-qualified staff includes appraisers designated MAI, SRA, ASA & SRPA. We
provide timely and accurate professional opinions of value for a wide variety of complex
residential and commercial assignments. We provide form or narrative reports to the
standards required by FNMA, FHA, VA, the IRS, and the Colorado courts. Our clients
include banks, mortgage companies, the Colorado Department of Transportation, the
Regional Transportation District, cities, special districts, redevelopment authorities,
attorneys, Realtors and private parties. In addition to the more typical requests we can
also appraise your “high balance” residential property, vacant residential or commercial
land, provide subdivision analysis (residential & commercial) as well as value residential
acreages.
Metropolitan Appraisers Inc. was established in 1979. The company has provided
valuation services for almost 35 years. There are currently 10 members within the firm.
We pride ourselves in the quality of the work we provide to our many and varied clients.
Further information on the company can be obtained via our website, metroapprs.com.
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Key Personnel
Gregg Near, MAI, SRA has been appraising residential and commercial property in the
Colorado area since 1978. Mr. Near earned his undergraduate degree in history from
Western State College. Embarking on a teaching career out of college and working on
home renovations formed the foundation leading to his current position as a principal
and Vice President of Metropolitan Appraisers, Inc. Prior to joining the firm, Mr. Near
served many years as a member of the FHA fee appraiser panel and, by 1982, had
obtained the first of his designations, the SRA (Senior Residential Appraiser). The
SRPA (Senior Real Property Appraiser) designation followed in 1990 and, in 1994, the
MAI designation (Member of the Appraisal Institute). During his 35-year career, Mr.
Near has assisted in writing the FHA appraisal manual for this region; taught for
brokers, agents and other appraisers; and served as a director and as Education Chair
of the Colorado Chapter of the Appraisal Institute. In 2010 Mr. Near was appointed to
the Colorado State Board of Assessment Appeals. Mr. Near's practice includes
commercial and residential appraisal and consultation with specific expertise in eminent
domain and the valuation of off-premise outdoor advertising devices (billboards). As an
appraiser and expert witness, Mr. Near brings a unique blend of experience in
education along with many years of appraising in both the residential and commercial
fields.
References From Organizations or Municipalities
Company Regional Transportation
District
Dates of Service Type of Service
Contact Mike Owen September 2011
to present
7 partial and total
acquisitions for the I-225
light rail line
Title Appraisal Manager
Address 1560 Broadway #700
Denver, CO 80202
Telephone 303.299.2368
Company Colorado Department of
Transportation
Dates of Service Type of Service
Contact Anthony D. Cichello, MAI July 2012 to
November 2012
3 billboard appraisals on
3 separate parcels for
acquisitions
Title Appraisal/Reviewer Bid
Administrator
Address 1420 2nd Street Greeley, CO
80631
Telephone 719.227.3237
Company Colorado Department of
Transportation
Dates of Service Type of Service
Contact Dan Michna July 2010 to
December 2012
8 billboard appraisals on
5 separate parcels for
acquisitions
Title ROW Acquisition Manager
Address 1420 2nd Street Greeley, CO
80631
Telephone 970.350.2159
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Company H.C. Peck & Associates Inc. Dates of Service Type of Service
Contact Mike Anders June 2012 to
September 2012
2 billboard appraisals on
2 separate parcels for
acquisition
Title ROW Project Manager
Address 4001 Fox Street Denver, CO
80216
Telephone 303.623.6301
Company Colorado Department of
Transportation
Dates of Service Type of Service
Contact Nancy Terry November 2011 to
January 2012
Billboard appraisal for
Title ROW Manager acquisition
Address Region 6 – Right-of-Way
2000 South Holly Street
Denver, Colorado 80222
Telephone (303) 757 9849
Company Colorado Department of
Transportation
Dates of Service Type of Service
Contact Jay Kramer, MAI January 2010 to
May 2011
Partial interest
acquisition from High
Line Canal corridor.
Title ROW Manager
Address 18500 E Colfax Ave., Aurora,
CO 80011
Telephone 303.365.7401
Company City of Englewood Dates of Service Type of Service
Contact Rick Kahm Last 3 years + Multiple parcels including
full & partial takes,
market value
assignments and
consultations
Title Mgr. Public Works
Address 1000 Englewood Pkwy
Englewood CO 80110
Telephone 303.761.2300
Course Work for Gregg Near, MAI, SRA
Following this introduction there are three pages comprising the current transcript for
Mr. Near. To date Mr. Near has 663.5 total hours of education in real property appraisal
and litigation provided by the Society of Real Estate Appraisers, the American Institute
of Appraisers and the Appraisal Institute.
Additional hours are granted by the appraiser's professional organization(s) for "service
to the profession". Mr. Near has approximately 100 additional hours of credits for course
development and presentation; service credit in instructional manual development;
service credit for professional committees including admission and education and
service credit as a member of the Colorado State Board of Assessment Appeals.
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Litigation Experience
The following is the only testimony provided by Gregg Near, MAI, SRA within the
previous three years. The project and client are briefly described and the individual
appraisal service identified following the description. The information regarding
compensation estimates is confidential and will require client approval(s) before it/they
may be revealed. The appraiser does not determine just compensation and is not privy
to settlement amounts.
PRIVATE PARTY LAWSUIT
J. Virginia Messick and E. Nelson Bowes dba Messick Bowes v. 4200 Garfield LLC
January 20, 2012. The appraiser was required to attend and give testimony in District
Court, City and County of Denver as a witness for the above named plaintiffs.
Testimony regarded the provision of a Leasehold Value Estimate on a billboard for
plaintiff’s use in a valuation for eminent domain purposes.
Contact:
Alan E. Karsh, Esq.
Karsh Fulton Gable Joseph PC
950 So. Cherry St. Suite 710
Denver, CO 80246-2665
303-759-9669
EXPERT WITNESS TESTIMONY
Gregg Near, MAI, SRA has appeared as an expert witness in the following jurisdictions.
All of the appearances were in regard to valuation assignments.
City and County of Denver District Court (4 times)
Arapahoe County District Court (1)
Jefferson County District Court (2)
El Paso County District Court (1)
Weld County District Court (1)
Douglas County District Court (1)
DEPOSITIONS AND HEARINGS
Regional Transportation District V. 5200 LLC, et al., offices of Duncan, Ostrander &
Dingess, PC, 3600 S Yosemite Street, #500, Denver, CO 80237
April 5, 2012. The appraiser was deposed by RTD's attorneys regarding a partial
taking of land, removal of rail service and billboard sign site by RTD.
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Contact:
Mr. Douglas S. Widlund Esq.
Butcher & Widlund, LLC
7400 E Orchard Road, #150-S
Greenwood Village, CO 80111
303-839-1550
Project:
STU C010-068. This project involved the reconfiguration and expansion of
Federal Boulevard between W Alameda Avenue and W 6
th
Avenue (US 6) in the City
and County of Denver.
October 8, 2010. The appraiser was required to attend and provide updated
valuation opinions for an immediate possession hearing regarding a fee simple
acquisition and a temporary easement acquisition for Parcel 54, 12 Federal
Boulevard, Denver Colorado (Morales)
Contact:
Katherine L Wilmoth
Assistant City Attorney, Municipal Operations Section
201 W Colfax Ave., Dept. 1207
Denver, CO 80202
720-913-3253
Project:
STA 2873-100. This project involved the reconfiguration, widening and related
improvements to US Highway 287 between State Highway 1 and the LaPorte Bypass.
May 20, 2011. The appraiser was required to appear for an Immediate
Possession Hearing for billboard Parcels 17-4, 17-5, 17-6 and 17-7 in Larimer
County District Court.
Contact:
Mr. Gregg Carson
Civil Litigation & Employment Section, Transportation Unit
1525 Sherman Street, 5th Floor
Denver, CO 80203
303-866-5019
Frank Gonzales, Sr. and United Advertising Corporation of Colorado v. City and County
of Denver. Frank Gonzales et. al. brought suit against the City of Denver after it
rescinded a billboard permit.
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The appraiser received a subpoena to testify in Denver District Court, on
10/20/2008 regarding Case Number 06CV4450 to give testimony. A pre-trial
conference was held on 10/14/2008. The case settled prior to the court date.
Contact:
Mr. Max Taylor, City Attorney
City and County of Denver
201 W Colfax Avenue, Dept. 1207
Denver, CO 80201-5332
Project:
Purchase contract between Academy Nissan, LLC and Western Auto
Development LTD. El Paso County District Court Case Number 04CV4327, Division
15.
July 6, 2005 The appraiser was deposed in regard to an expert report provided
as a result of an assignment to read and compare specified MAI commercial
appraisal reports.
August 1, 2005. The appraiser was accepted as an expert witness in the above
court and provided testimony in regard to an expert report provided as a result of
the assignment.
Contact:
Mr. Jared Walters, Attorney for Academy Nissan
Timothy J. Lamb, P.C.
1401 17
th
St., Suite 330
Denver, CO 80202
303 292-1323
COLORADO DEPARTMENT OF TRANSPORTATION
Project:
Transportation Expansion Project, (T-REX), 888 S Broadway, Parcel 6)
Department of Transportation V. 888 S Broadway, LLC; Mile High Outdoor aka
Colorado Outdoor, Inc.; Jiffy Java, Inc. & Cheryl Cohen in her capacity as Ex Officio
Treasurer of the City and County of Denver. District Court, City and County of Denver,
CO 80202
October 5 & 6, 2004. The appraiser provided expert witness testimony in regard
to a retrospective valuation of an outdoor advertising device, land, and land
leases.
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Contact:
Mr. Larry Tannenbaum
Senior Assistant Attorney General
1525 Sherman Street, 5th Floor
Denver, CO 80203
303 866-5019
Project:
State Highway 85 @ Titan Road--(Parcels 22 & 22A) Department of
Transportation V. Bradley J. Schall & Lillian J. Schall., offices of the Colorado State
Attorney General, 1525 Sherman Street, 5th Floor, Denver, CO 80203
April 13, 2004. The appraiser was deposed by the property owner's attorney
regarding valuations for the Department of Transportation of a partial acquisition.
May 19, 2004. The appraiser provided expert witness testimony in Douglas
County District Court in regard to the above.
Contact:
Mr. Gregg Carson, Esq.
Assistant Attorney General
1525 Sherman Street, 5th Floor
Denver, CO 80203
303 866-5037
Project:
State Highway 119 in Black Hawk--(Parcels SE-3, 6 & SE-1) Department of
Transportation V. First Place, LLC et. al., offices of Faegre & Benson, LLP, 370 17th
Street #2500, Denver, CO 80202
February 13, 2003. The appraiser was deposed by the property owner's attorney
regarding a valuation for the Department of Transportation on a partial
acquisition.
Contact:
Ms. Jennifer Mele
Assistant Attorney General
1525 Sherman Street, 5th Floor
Denver, CO 80203
303 866-5037
Project
#91032--Widening of Interstate 25 N of State Road #7, City and County of
Broomfield and Weld County, Colorado. Colorado Department of Transportation V.
Infinity Outdoor, Weld County District Court #7
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January 16, 2003. The appraiser provided expert witness testimony in the
valuation of 9 billboard structures.
Project
#CY 11-0121-74--Redevelopment of the Hampden Avenue interchange with
South Wadsworth Blvd, Jefferson County District Court
October 1997 and January 1998. The appraiser was deposed by the property
owner's attorney. The appraiser was also required to provide testimony relative
to the valuation of a partial acquisition @ 3497 South Wadsworth Boulevard.
Contact:
Mr. Larry Tannenbaum
Senior Assistant Attorney General
1525 Sherman Street, 5th Floor
Denver, CO 80203
303 866-5019
REGIONAL TRANSPORTATION DISTRICT (RTD)
Project
#NH 0252-299--(Parcel 522) Regional Transportation District V. Frederick M.
Haynes, Arapahoe County District Court Division No. 4.
September 2, 2003. The appraiser testified as an adverse witness for the
respondent regarding a valuation for RTD on a partial acquisition and special
benefits.
Contact:
Mr. Donald Ostrander, Attorney for RTD
4600 S Ulster Street, Suite 1111
Denver, Colorado 80237
303 779-0200
Project
#NH 0252-299--(Parcel 105) Regional Transportation District V. Bell Plumbing
and Heating Co., et al., offices of Faegre & Benson, LLP, 370 17th Street #2500,
Denver, CO 80202
April 17, 2003. The appraiser was deposed by the property owner's attorney
regarding a valuation for RTD on a total acquisition.
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Contact:
Mr. Robert Duncan, Attorney for RTD
4600 S Ulster Street, Suite 1111
Denver, Colorado 80237
303 779-0200
Project:
#NH 0252-299--(Parcels 412/413) Regional Transportation District V. Sorrento
West Properties, Inc., et al.
March 13, 2003. The appraiser was deposed by the property owner's attorney
regarding a valuation for RTD on a partial acquisition.
Project:
#NH 0252-299--(Parcels 412/413) Regional Transportation District V. Sorrento
West Properties, Inc., et al.
December 5, 2002. The appraiser was deposed by the property owner's attorney
regarding a valuation for RTD on a partial acquisition.
Project:
#NH 0252-299--(Parcel 107) Evans Avenue Partnership
Denver District Court, June 28, 2001. "Immediate Possession Hearing" for
portions of this parcel to be acquired by RTD for expansion of light rail transit.
The appraiser was required to give testimony.
Project:
#NH 0252-299--(Parcel 96) WRC Properties, Inc.
Denver District Court, June 27, 2001. "Immediate Possession Hearing" for
portions of this parcel to be acquired by RTD for expansion of light rail transit.
The appraiser was not required to give testimony but was required to be present
in court.
Contact:
Mr. Clyde Faatz, Attorney for RTD
1600 Broadway #500
Denver, Colorado 80202-4905
303 830-0500
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MEASUREMENT OF INDUSTRIAL SPACE: OWNER/TENANT DISAGREEMENT
12741 E. Caley Avenue, #146, Englewood, CO 80111
The assignment involved measurement of an individual's unit area in August,
1998. November 2, 2000 the space was again measured as a result of litigation.
The appraiser was deposed by the respondent's attorney on November 27, 2000.
Contact: (Client's Attorney)
Mr. Fred Bibik
Anderson & Jahde
950 S. Cherry Street, #100
Denver, CO 80246
303 782-0003
VALUATION OF DEVELOPMENT GROUND
11561 Isabelle Road, Erie, Colorado
Approximately June, 1996. The appraisal assignment involved valuation of
vacant development ground outside of Erie, Colorado. The appraiser was hired
by one side of the estate. The other side of the estate deposed the appraiser.
The case was settled prior to testimony.
Contact: (Client's Attorney)
Daniel J. Murray
7907 Zenobia Street
Westminster, CO 80030
303 428-6971
VALUATION OF GROUP HOME FACILITY
West 26th Avenue, Wheat Ridge, CO
Approximately July, 1996. The appraiser provided testimony in Jefferson County
District Court relative to property value.
Contact: (Client's Attorney)
Scott Gelman
West, Weaver, Hepner, P.C.
5990 Greenwood Plaza Blvd.
Englewood, CO 80111
303 740-8696
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SUMMARY
Metropolitan Appraisers Inc., and specifically Gregg Near, MAI, SRA, appreciate the
opportunity to respond to your RFP for appraisal services relating to billboards.
The company and the key personnel involved in this proposal wish to stress unique
competence and qualifications. In the area of Appraisal Requirements the proposal lists
six items the appraiser or appraiser team must have.
1. Gregg Near, MAI, SRA, the appraiser for this assignment, has nearly two
decades of quantifiable experience successfully completing appraisal
assignments in conformance with the Uniform Act and under the requirements of
the Colorado Department of Transportation.
2. The appraiser for this assignment (Near) is on the list of qualified appraisers
approved by the Colorado Department of Transportation.
3. The appraiser for this assignment (Near) has over ten years of quantifiable
experience appraising a variety off-premise advertising devices.
4. The appraiser for this assignment (Near) has experience with local road
acquisition projects and local, state and federal practices and policies.
5. The appraiser for this assignment (Near) has experience with the Colorado
Department of Transportation/Federal Highway Administration projects.
6. The appraiser for this assignment (Near) has experience with appraising property
interests with a Federal Transit Authority project.
In conclusion the company would like to address the review and assessment criteria for
this proposal and how the firm of Metropolitan Appraisers Inc. and the key appraiser for
this assignment, Gregg Near, MAI, SRA, match the stated requirements.
20 points: Upon review of the submitted sample appraisal report the staff committee
should have a level of confidence the proposer is familiar with billboards
and the unique aspects of their valuation.
20 points: The appraiser has experience in the “before” and “after” methodology
applied in the valuation process for a conservation easement. This is not a
large part of the company business and the company typically has not
sought out these assignments. To verify the experience of Gregg Near,
MAI, SRA the staff committee is encouraged to contact Mark Weston of
the firm Hunsperger & Weston, LTD. at 303.741.5918. Mr. Weston is a
recognized local appraiser and educator in the field of conservation
easements. Mr. Weston can provide an unbiased opinion of Mr. Near’s
understanding of the process.
25 points: The staff committee should find the appraiser to have more than adequate
experience with all aspects of valuation for eminent domain including
acquisitions, partial interests, damages, benefits and the before and after
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rule. The appraiser has experience in the litigation process including
report updating, litigation support and expert witness testimony.
15 points: The appraiser for this assignment (Near) has over 660 hours of education
background specific to real property valuation. Mr. Near also holds the
Litigation Certificate granted by the Appraisal Institute.
20 points: The fees to be charged are reasonable for the type and quality of the
services to be provided. The valuation of off-premise outdoor advertising
devices is a narrow specialty and there are few providers of this service.
Provision of reasonable, supportable and defensible value opinions
developed with the most contemporary data available allows the client a
welcome level of confidence. Experience with litigation, in all aspects from
preparation to trial, lends one more level of security that, if all else fails,
the client’s position will be adequately represented before the trier of fact.
From the above summary this proposal should be ranked at the highest level. The
client’s expressed need is for valuation of off-premise outdoor advertising devices. That
need results from these billboard’s inclusion within the right-of-way for a transportation
project involving federal funds and, more specifically, funds under the management of
the Federal Transit Authority. Metropolitan Appraisers Inc. and specifically, Gregg Near,
MAI, SRA, is uniquely suited to provide the valuation services you require.
As requested, a sample billboard appraisal is provided in conjunction with this proposal.
Please contact me if I may provide additional information or assistance.
Respectfully,
Gregg Near, MAI, SRA
Vice President, Metropolitan Appraisers, Inc.
Certified General Appraiser
Colorado License No. 1313136
303.761.5113 (w)
303.761.5166 (c)
gnear@metroapprs.com
Exhibits:
• Billboard Checklist
• Landowner Interview
• Subject Photos
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CHECKLIST
The following items are requested in order to expedite the appraisal assignment
1. Rate Cards:
A. What is the advertised rate for a bulletin (14 X 48)?
B. For a 30-sheet poster?
C. For an 8-sheet poster?
2. Please provide a three-year operating history for the subject billboard Including:
Contracts for advertising
3. Occupancy history: improving, stable, declining?
4. What is the percentage of sales by outside agencies?
5. What is the typical agency commission?
6. Current sign site lease
7. Current estimate of Daily Effective Circulation (DEC)
8. List of capital improvements to the structure in the last three years
9. Copy of advertising permit with the State of Colorado
10. Copy of advertising permit with the City of Fort Collins
I would also desire the opportunity to interview the landowner in regard to the history of
the billboard. Please provide the landowner's name and contact number.
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LANDOWNER INTERVIEW:
1) What is the rent paid for the billboard site?
2) Monthly, quarterly, annually?
3) Escalations?
4) Do you intend to leave the billboard on the property?
5) Has the billboard generated complaints? (neighbors, tenants, associations etc.)
6) If the billboard is removed will it decrease the value of your property?
7) What is the minimum rent you would accept from the billboard company?
8) Was the board in place when you purchased the property?
9) If yes, did the billboard have any influence on the price paid?
10) Did you know the income from the lease? Did you have a copy of the lease?
11) When does the lease expire?
12) If lease was recently negotiated—how was the price determined?
13) Has the presence of the sign influenced your use of the property in a negative
manner?
14) Would you like a larger sign and more income?
15) Have you listed the property for sale with the billboard in place?
16) If yes, what has been the impact of the billboard on potential purchasers?
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NE Corner of Prospect & BNSF Right-of-Way
NE Corner of Horsetooth Road & BNSF Right-of-Way