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Real Estate Valuations Northwest <br /> 460 <br /> Charles P. Thompson & Assoc., Inc. <br /> Real Estate Appraisers & Counselors <br /> January 26, 1993 <br /> Mr. Ken Doud <br /> City of Eugene <br /> 858 Pearl Street <br /> Eugene, Or 97401 <br /> Re: The appraisal of two vacant land parcels for Mr. Ray A. Babb and Mr. Charles Van <br /> Duyn, et al. <br /> Dear Mr. Doud: <br /> In accordance with our meeting on January 22 1993, this letter is a clarification of the <br /> methodology used in estimating the market value of subject parcel 1. <br /> As previously explained in the aforementioned appraisal report, subject parcel 1 contains <br /> approximately 25.83 acres of land located on the north side of Jessen Street. The zoning <br /> is E -40, or Exclusive Farm Use with a 40 acre minimum division size. Approximately 18 <br /> acres consists of ponds, which were created by excavation for rock. <br /> The six sales used in analyzing the subject parcel ranged in per acre price from a low of <br /> $1,138 to a high of $3,939. However, as discussed in our meeting, Sale 3 took place <br /> between two state agencies, and therefore might not be appropriate for use in this case. <br /> Eliminating this sale from the analysis results in a market price range of $1,713 to $3,939. <br /> Our conclusion of $800 per acre, which is below the indicated range of the sales was based <br /> upon the following: <br /> - All of the sales were purchased with knowledge that the land parcels could be utilized <br /> in conjunction with adjacent uses. The subject parcel is surrounded by agricultural <br /> land, and would not benefit the adjoining farm uses. <br /> - The sales indicated that a premium was paid for acquiring a pond in conjunction <br /> with a more intensive adjacent use. In other words purchasers are willing to pay a <br /> premium for pond land if it directly benefits their adjacent land. In the case of the <br /> subject, the agricultural farm land would not benefit from the pond land. <br /> 975 OAK STREET • SUITE 440 • EUGENE, OREGON 9740I TELEPHONE (50 343 -8895 • FAX (50.3).343-5190 <br />