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MARKET ANALYSIS/HIGHEST & BEST USE <br /> MARKET OVERVIEW <br /> The subject is located within` the Eugene /Springfield MSA. Please see the Population, <br /> Economy, and Real Estate Market sections in the Regional Description located in the <br /> Addenda. <br /> MARKET CONSIDERATIONS <br /> The subject is currently zoned F -1 and. F -2, which severely limits its development <br /> potential. However, its close proximity to commercial and residential development and <br /> the UGB suggest that portions of the subject will be developable with uses in the <br /> near term. Based on the MetroPlan, the subject's future development is limited to <br /> Govemment and Natural Resource related development. However, if the UGB were <br /> adjusted and portions of the subject were included in the city limits, the subject's future <br /> development options could change. <br /> As previously stated, if the UGB is adjusted and expanded, it will likely not ever expand <br /> to the southem portion of the subject (located south of the MetroPlan line which <br /> generally mirrors the Ridgeline). Below' the Highest and Best Use of the North portion of <br /> the subject, the portion of land located north of the Ridgeline, will be discussed <br /> separately from the Highest and Best Use of the southem portion. <br /> HIGHEST AND BEST USE — NORTH PORTION <br /> Introduction <br /> Highest and best use is a market driven concept which identifies the most profitable <br /> and competitive use to which a properly can be put. It is further defined as follows: <br /> "The reasonably probable and legal use of vacant land or an improved <br /> property, which is physically possible, appropriately supported, financially <br /> feasible, and that results in the highest value. The four criteria the highest and <br /> best use must meet are legal permissibility, physical possibility, financial <br /> feasibility, and maximum profitability. " <br /> The concept of highest and best use is fundamental to real property value. In one <br /> application of the concept, a site is valued as though vacant and available for <br /> development to its highest and best use. In another application, the highest and best <br /> use of the property as improved is estimated. A site may have one highest and best use <br /> as though vacant, while the improved site may have another optimal use . <br /> Highest and best use is essentially a market driven concept which identifies the ideal <br /> use(s) of a property which follow logical market criteria. It attempts to mirror the thinking <br /> of a buyer in the marketplace. Analysis pertaining to the legal, physical, financial and <br /> . most productive uses of the site, both as though vacant and as improved narrows, <br /> development options to those best fitting the demand for the properly. Once highest <br /> and best use is established, the appraisal process focuses on the identified sub - market, <br /> selecting parameters for meaningful analyses. <br /> 3 The Dictionary of Real Estate Appraisal, Fourth Edition. Chicago: Appraisal Institute, 2002. <br /> 4 The Appraisal of Real Estate Eleventh Edition. Chicago: Appraisal Institute, 1996. Page 297. <br />