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APPRAISAL OF REAL PROPERTY
Tooele County Land Droubay Road at Pine Canyon Road Tooele,
Tooele County, UT 84074 Latitude: 40.76054 Longitude:
-73.977882
IN A SELF-CONTAINED APPRAISAL REPORT
As of April 10, 2009
Prepared For:
Castle Arch Real Estate Investment Co., LLC 498 North 900 West,
Suite 200 Kaysville, Utah 84037
Prepared By:
Cushman & Wakefield of Colorado, Inc. Valuation Services,
Capital Markets Group 614 Main Street, Suite 201, PO Box 680047
(84068) Park City, UT 84060 C&W File ID: 09-5103-9051
PHOTOGRAPH OF SUBJECT PROPERTY
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CUSHMAN & WAKEFIELD OF COLORADO, INC. 614 MAIN STREET, SUITE
201, PO BOX 680047 (84068) PARK CITY, UT 84060
April 27, 2009
Mr. Douglas W. Child Chief Financial Officer Castle Arch Real
Estate Investment Co., LLC 498 North 900 West, Suite 200 Kaysville,
Utah 84037
Re: Appraisal of Real Property In a Self-Contained Report
Tooele County Land Droubay Road at Pine Canyon Road Tooele,
Tooele County, UT 84074
C&W File ID: 09-5103-9051
Dear Mr. Child:
In fulfillment of our agreement as outlined in the Letter of
Engagement, we are pleased to transmit our appraisal of the above
property in a self-contained report dated April 27, 2009. The
effective date of value is April 10, 2009.
This appraisal report has been prepared in accordance with our
interpretation of your institution’s guidelines and the Uniform
Standards of Professional Appraisal Practice (USPAP).
M A R K E T V A L U E A S I S Based on the agreed to Scope of
Work, and as outlined in the report, we developed an opinion that
the Market Value of the Fee Simple estate of the above property,
subject to the assumptions and limiting conditions, certifications,
extraordinary assumptions and hypothetical conditions, if any, and
definitions, “As-Is” on April 10, 2009, was:
FIVE MILLION TWO HUNDRED THOUSAND DOLLARS
$5,200,000
The value opinion in this report is qualified by certain
assumptions, limiting conditions, certifications, and definitions.
We particularly call your attention to the extraordinary
assumptions and hypothetical conditions listed below.
E X T R A O R D I N A R Y A S S U M P T I O N S For a definition
of Extraordinary Assumptions please see the Glossary of Terms &
Definitions.
This appraisal does not employ any extraordinary
assumptions.
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CUSHMAN & WAKEFIELD OF COLORADO, INC. 614 MAIN STREET, SUITE
201, PO BOX 680047 (84068) PARK CITY, UT 84060
April 27, 2009
Mr. Douglas W. Child Chief Financial Officer Castle Arch Real
Estate Investment Co., LLC 498 North 900 West, Suite 200 Kaysville,
Utah 84037
Re: Appraisal of Real Property In a Self-Contained Report
Tooele County Land Droubay Road at Pine Canyon Road Tooele,
Tooele County, UT 84074
C&W File ID: 09-5103-9051
Dear Mr. Child:
In fulfillment of our agreement as outlined in the Letter of
Engagement, we are pleased to transmit our appraisal of the above
property in a self-contained report dated April 27, 2009. The
effective date of value is April 10, 2009.
This appraisal report has been prepared in accordance with our
interpretation of your institution’s guidelines and the Uniform
Standards of Professional Appraisal Practice (USPAP).
M A R K E T V A L U E A S I S Based on the agreed to Scope of
Work, and as outlined in the report, we developed an opinion that
the Market Value of the Fee Simple estate of the above property,
subject to the assumptions and limiting conditions, certifications,
extraordinary assumptions and hypothetical conditions, if any, and
definitions, “As-Is” on April 10, 2009, was:
FIVE MILLION TWO HUNDRED THOUSAND DOLLARS
$5,200,000
The value opinion in this report is qualified by certain
assumptions, limiting conditions, certifications, and definitions.
We particularly call your attention to the extraordinary
assumptions and hypothetical conditions listed below.
E X T R A O R D I N A R Y A S S U M P T I O N S For a definition
of Extraordinary Assumptions please see the Glossary of Terms &
Definitions.
This appraisal does not employ any extraordinary
assumptions.
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MR. DOUGLAS W. CHILD CASTLE ARCH REAL ESTATE INVESTMENT CO., LLC
APRIL 27, 2009 PAGE 2
CUSHMAN & WAKEFIELD OF COLORADO, INC.
H Y P O T H E T I C A L C O N D I T I O N S For a definition of
Hypothetical Conditions please see the Glossary of Terms &
Definitions.
This appraisal does not employ any hypothetical conditions.
This letter is invalid as an opinion of value if detached from
the report, which contains the text, exhibits, and Addenda.
Respectfully submitted,
CUSHMAN & WAKEFIELD OF COLORADO, INC.
Christopher T Donaldson, MAI, CCIM Managing Director UT
Certified General Appraiser License No. 5480025-CG00
[email protected] (435) 649-0238 Office Direct (435)
649-5916 Fax
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TOOELE COUNTY LAND CLIENT SATISFACTION SURVEY III
VALUATION SERVICES
C L I E N T S A T I S F A C T I O N S U R V E Y As part of our
new quality monitoring campaign, attached is a short survey
pertaining to this appraisal report and the service that you
received. Would you please take a few minutes to complete the
survey to help us identify the things you liked and did not
like?
Each of your responses will be catalogued and reviewed by
members of our national Quality Control Committee, and appropriate
actions will be taken where necessary. Your feedback is critical to
our effort to continuously improve our service to you, and is
sincerely appreciated.
To access the questionnaire, please click on the link here:
http://www.surveymonkey.com/s.aspx?sm=_2bZUxc1p1j1DWj6n_2fswh1KQ_3d_3d&c=09-5103-9051
The survey is hosted by Surveymonkey.com, an experienced survey
software provider. Alternatively, simply print out the survey
attached in the Addenda of this report and fax it to (716)
852-0890.
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TOOELE COUNTY LAND EXECUTIVE SUMMARY IV
VALUATION SERVICES
G E N E R A L D E S C R I P T I O N The following is an
executive summary of the information that we present in more detail
in the report.
BASIC INFORMATIONCommon Property Name: Tooele County Land Report
Type: Self-ContainedAddress: Droubay Road at Pine Canyon Road
Interest Appraised: Fee Simple
City: Tooele Date of Value: 4/10/09State: UT Date of Inspection:
4/10/09Zip Code: 84074 Date of Report: 4/27/09County: Tooele
Prospective Date of Completion: NAProperty Ownership Entity: Castle
Arch Real Estate Co. LLC Prospective Date of Stabilization: NACW
File Reference: 09-5103-9051
SITE INFORMATIONLand Area Gross SF: 15,164,978 Site Utility:
AverageLand Area Acres: 348.14 Site Topography: Level at street
gradeIs there additional Excess Land? No Site Shape: Irregularly
shapedExcess Land Area SF: 0 Frontage: AverageExcess Land Area
Acres: 0.00 Access: AverageTotal Land Area SF: 15,164,978
Visibility: AverageTotal Land Area Acres: 348.14 Location Rating:
AverageFlood Zone: DFlood Map Number: NAFlood Map Date: NA
MUNICIPAL INFORMATIONAssessor's Parcel Identification: Numerous
Subject's assessment is: At market levelsAssessing Authority:
Tooele County Municipality Governing Zoning: Tooele CountyCurrent
Tax Year: 2008 Current Zoning: RR-5Taxable Assessment: $2,785,120
Is current use permitted: YesCurrent Tax Liability: $28,929 Current
Use Compliance: Complying useTaxes per square foot: $0.00 Zoning
Change Applied For: YesAre taxes current? Taxes are current Zoning
Variance Applied For: Not applicableIs a grievance underway? Not to
our knowledge
HIGHEST & BEST USEAs Vacant: As Improved:Single family
residential to the highest allowable density. Not applicable
The subject property was acquired as an assemblage from several
different landowners on several different dates in 2005 and 2006.
The following table summarizes the subject’s acquisition
history.
Seller Parcel # Acres Sale Date Contract Price Contract
Price/Acre Closing Costs Total Acquisition CostHighway 1 Group,
Inc./Hotowen 03-014-0-0002 109.36 9/1/2005 $2,952,720 $27,000 $240
$2,952,960Highway 1 Group, Inc./Wendell Jones, Trustee
03-024-0-0003 75.94 9/14/2005 $2,050,380 $27,000 $2,428
$2,052,808Highway 1 Group, Inc./Shields Family Trust 03-024-0-0005
& -0007 79.00 10/27/2005 $2,134,836 $27,023 $1,853
$2,136,689William & Lynette Mueller Family Trust 03-014-0-0005
76.26 6/20/2006 $2,135,280 $28,000 $90,861 $2,226,141ENS, LLC
03-014-0-0020 7.58 7/25/2006 $221,100 $29,169 $7,542 $228,642Totals
348.14 $9,494,316 $27,272 $102,925 $9,597,241
Subject Property History
In addition to the land acquisition the subject owner has also
acquired substantial water rights to facilitate the development of
the subject property.
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TOOELE COUNTY LAND EXECUTIVE SUMMARY V
VALUATION SERVICES
VALUATION INDICES Market Value As IsLAND VALUATIONLand Value
Indicated Value: $5,220,000Per Acre: $14,994
FINAL VALUE CONCLUSIONConcluded Value: $5,200,000Per Acre:
$14,937
EXPOSURE TIMEExposure Time: 18 MonthsMarketing Time: 18
Months
E X T R A O R D I N A R Y A S S U M P T I O N S For a definition
of Extraordinary Assumptions please see the Glossary of Terms &
Definitions.
This appraisal does not employ any extraordinary
assumptions.
H Y P O T H E T I C A L C O N D I T I O N S For a definition of
Hypothetical Conditions please see the Glossary of Terms &
Definitions.
This appraisal does not employ any hypothetical conditions.
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TOOELE COUNTY LAND AERIAL PHOTOGRAPH VI
VALUATION SERVICES
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TOOELE COUNTY LAND SUBJECT PHOTOGRAPHS VII
VALUATION SERVICES
Droubay Road Looking North Subject on Left
Droubay Road Looking South Subject on Right
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TOOELE COUNTY LAND SUBJECT PHOTOGRAPHS VIII
VALUATION SERVICES
Pine Canyon Road Looking West from Droubay Road
Pine Canyon Road Looking East from Center Portion of Subject
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TOOELE COUNTY LAND SUBJECT PHOTOGRAPHS IX
VALUATION SERVICES
Overview of Northern Portion Looking Northwest
Overview of Southern Portion Looking South from Pine Canyon
Road
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TOOELE COUNTY LAND SUBJECT PHOTOGRAPHS X
VALUATION SERVICES
Cross Fencing and Dirt Road on Northern Portion Looking
North
West Boundary of South Portion Looking South
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TOOELE COUNTY LAND SUBJECT PHOTOGRAPHS XI
VALUATION SERVICES
West Boundary of North Portion Looking Northwest Along Union
Pacific Railroad Tracks
2400 North Street Looking West from Droubay Road Subject on
Left
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TOOELE COUNTY LAND SUBJECT PHOTOGRAPHS XII
VALUATION SERVICES
Gravel Pit on North End of the Subject
Overview of Northern Portion from the Northwest Corner
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TOOELE COUNTY LAND SUBJECT PHOTOGRAPHS XIII
VALUATION SERVICES
South Boundary of Southern Portion Looking West
Overview of South Portion Looking West from Droubay Road
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TOOELE COUNTY LAND TABLE OF CONTENTS
VALUATION SERVICES
T A B L E O F C O N T E N T S INTRODUCTION
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1 REGIONAL MAP
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4 REGIONAL
ANALYSIS------------------------------------------------------------------------------------------------------------------------------
5 LOCAL AREA MAP
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LOCAL AREA
ANALYSIS-------------------------------------------------------------------------------------------------------------------------17
MARKET
ANALYSIS--------------------------------------------------------------------------------------------------------------------------------19
SITE DESCRIPTION
--------------------------------------------------------------------------------------------------------------------------------24
REAL PROPERTY TAXES AND ASSESSMENTS
-----------------------------------------------------------------------------------------29
ZONING-------------------------------------------------------------------------------------------------------------------------------------------------30
HIGHEST AND BEST USE
------------------------------------------------------------------------------------------------------------------------34
VALUATION PROCESS
---------------------------------------------------------------------------------------------------------------------------36
LAND VALUATION
---------------------------------------------------------------------------------------------------------------------------------38
RECONCILIATION AND FINAL VALUE OPINION
-----------------------------------------------------------------------------------------45
ASSUMPTIONS AND LIMITING CONDITIONS
---------------------------------------------------------------------------------------------46
CERTIFICATION OF APPRAISAL
--------------------------------------------------------------------------------------------------------------48
GLOSSARY OF TERMS & DEFINITIONS
----------------------------------------------------------------------------------------------------49
ADDENDA CONTENTS
----------------------------------------------------------------------------------------------------------------------------52
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TOOELE COUNTY LAND INTRODUCTION 1
VALUATION SERVICES
I N T R O D U C T I O N
S C O P E O F W O R K This appraisal, presented in a
self-contained report, is intended to comply with the reporting
requirements outlined under the USPAP for a self-contained
appraisal report.
The scope of this appraisal required collecting primary and
secondary data relevant to the subject property. We investigated
numerous vacant land sales in the subject’s market and considered
the input of buyers, sellers, brokers, property developers and
public officials. We made a physical inspection of the subject
property. We also investigated the general regional economy as well
as the specifics of the subject property’s local area.
The data have been thoroughly analyzed and confirmed with
sources believed to be reliable, leading to the value conclusions
in this report. The valuation process used generally accepted
market-derived methods and procedures appropriate to the
assignment.
This appraisal employs only the Sales Comparison Approach. Based
on our analysis and knowledge of the subject property type and
relevant investor profiles, it is our opinion that this approach
would be considered necessary and applicable for market
participants. Typical purchasers do not generally rely on the Cost
or Income Capitalization Approaches when purchasing a property such
as the subject of this report. Therefore, we have not employed the
Cost Approach or the Income Capitalization Approach to develop an
opinion of market value.
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TOOELE COUNTY LAND INTRODUCTION 2
VALUATION SERVICES
IDENTIFICATION OF PROPERTY
Common Property Name: Tooele County Land
Location: Droubay Road at Pine Canyon Road
Tooele, Tooele County, UT 84074
Assessor's Parcel Number:
03-014-0-0002, 03-014-0-0005, 03-014-0-0020, 03-024-0-0003,
03-024-0-0005, 03-024-0-0007
Legal Description: The legal descriptions per the title reports
supplied are presented in the Addenda of the report.
PROPERTY OWNERSHIP AND RECENT HISTORY
Current Ownership: Castle Arch Real Estate Co. LLC
Sale History: The subject property was acquired as an assemblage
from several different landowners on several different dates in
2005 and 2006. The following table summarizes the subject’s
acquisition history.
Seller Acres Sale Date Contract Price Contract Price/AcreHighway
1 Group, Inc./Hotowen 109.36 9/1/2005 $2,952,720 $27,000Highway 1
Group, Inc./Wendell Jones, Trustee 75.94 9/14/2005 $2,050,380
$27,000Highway 1 Group, Inc./Shields Family Trust 79.00 10/27/2005
$2,134,836 $27,023William & Lynette Mueller Family Trust 76.26
6/20/2006 $2,135,280 $28,000ENS, LLC 7.58 7/25/2006 $221,100
$29,169Totals 348.14 $9,494,316 $27,272
Subject Property History
In addition to the land acquisition the subject owner has also
acquired substantial water rights to facilitate the development of
the subject property.
Current Disposition: To the best of our knowledge, the property
is not under contract of sale nor is it being marketed for
sale.
DATES OF INSPECTION AND VALUATION
Date of Valuation: April 10, 2008
Date of Inspection: April 10, 2009
Property inspection was performed by: Christopher T. Donaldson,
MAI, CCIM
INTENDED USE AND USERS OF THE APPRAISAL
Intended Use: This appraisal is intended to provide an opinion
of the Market Value of the Fee Simpleinterest in the property for
the use of the client in evaluating potential financing. This
report is not intended for any other use.
Intended User: This appraisal report was prepared for the
exclusive use of Castle Arch Real Estate Investment Co., LLC. Use
of this report by others is not intended by the appraiser.
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TOOELE COUNTY LAND INTRODUCTION 3
VALUATION SERVICES
E X T R A O R D I N A R Y A S S U M P T I O N S This appraisal
does not employ any extraordinary assumptions.
H Y P O T H E T I C A L C O N D I T I O N S This appraisal does
not employ any hypothetical conditions.
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TOOELE COUNTY LAND REGIONAL MAP 4
VALUATION SERVICES
R E G I O N A L M A P
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TOOELE COUNTY LAND REGIONAL ANALYSIS 5
VALUATION SERVICES
R E G I O N A L A N A L Y S I S
I N T R O D U C T I O N The short- and long-term value of real
estate is influenced by a variety of interacting factors. Regional
analysis identifies those factors that affect property value, and
the role they play within the region. The four primary forces that
determine the supply and demand for real property, and consequently
affect market value, are: environmental characteristics,
governmental forces, social factors, and economic trends.
The subject property is located adjacent to the city of Tooele
in the western portion of the Salt Lake City.
MARKET DEFINITION The Salt Lake City Metropolitan Statistical
Area (Salt Lake City MSA) consists of three counties located in
northwest Utah—Salt Lake County, Summit County and Tooele County.
The state capital is located in Salt Lake City. Boise, Idaho lies
about 330 miles to the northwest, Denver is 500 miles east, and Las
Vegas is about 400 miles south. The region sits along the southern
banks of the Great Salt Lake, which is the largest saltwater lake
in the Western Hemisphere.
The following are notable points about the Salt Lake City
MSA:
• The city is located in the northeast corner of the Salt Lake
Valley surrounded by the Great Salt Lake to the northwest and the
steep Wasatch and Oquirrh mountain ranges on the eastern and
western borders, respectively. Its nearby mountains contain many
narrow glacially and volcanically carved canyons. The mountainous
environment has proven beneficial, as Salt Lake has developed a
strong outdoor recreation tourist industry based primarily on
alpine skiing. Salt Lake City was host to the 2002 Winter Olympic
Games.
• Salt Lake City's location is beneficial for numerous
employment sectors, specifically trade, and transportation related
industries. Relatively low energy cost, accessible natural
resources, North-South and East-West Interstates, and both west
coast intercontinental railroads are all geographic advantages that
have lead to robust population increases, and strong business
development.
• The city's population began to stagnate during the 20th
century as population growth shifted to suburban areas north and
south of the city. Few of these areas were annexed to the city,
while nearby towns incorporated and expanded. As a result, the
population of the surrounding metropolitan area greatly outnumbers
that of the City. The city lost population from the 1960s through
the 1980s, but experienced some recovery in the 1990s. Presently,
the city is losing population again, (though the population of the
metro area continues to grow rapidly), having lost an estimated 2.0
percent of its population since the year 2000.
• Salt Lake City's mass public transit service is operated by
the Utah Transit Authority, (UTA), and includes an extensive bus
system, light rail, and a commuter rail line. The 19-mile light
rail system, called TRAX, consists of two lines originating
downtown at the Salt Lake City Intermodal Hub; one line, which
opened in 1999, heads south to Sandy and the other, opened in 2001,
splits east to the University of Utah. According to 2008
statistics, daily ridership averages 45,400 passengers,
significantly above original projections, and is the eleventh-most
ridden light rail system in the country. The system has a total of
28 stations, 17 of them being located in Salt Lake City proper. The
commuter rail system, FrontRunner, opened on April 26, 2008 and
extends from the Intermodal Hub north to Pleasant View.
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TOOELE COUNTY LAND REGIONAL ANALYSIS 6
VALUATION SERVICES
• Salt Lake City is also known as the home and primary location
of the Church of Jesus Christ of Latter Day Saints, (LDS), and as
the home of the Utah Jazz National Basketball Association team.
The following graph illustrates the three county region that
constitutes the Salt Lake City Metropolitan Statistical Area.
SALT LAKE CITY METROPOLITAN STATISTICAL AREA (SALT LAKE CITY
MSA)
Tooele County
Summit County
Salt LakeCounty
UTAH
Salt Lake City, UTMetropolitan Statistical Area
Tooele County
Summit County
Salt LakeCountyTooele County
Summit County
Salt LakeCounty
UTAH
Salt Lake City, UTMetropolitan Statistical Area
Source: Cushman & Wakefield Analytics
CURRENT TRENDS In spite of a substantial national slowdown in
economic growth in 2008, Salt Lake City continued to exhibit
positive economic growth in spite of rapidly deteriorating national
conditions. While growth slowed across nearly every indicator in
2008, unlike many metro areas, growth trends remained positive in
spite of negative growth on a national level. However, with
accelerating job losses over the first quarter of 2009, Salt Lake
City, like the rest of the nation, has now slipped into a
recession. The substantial slowing of residential home building
activity has been spearheading local employment losses, as the
construction sector has continued to shed jobs. Additionally,
turmoil within national financial markets has led to losses in
white collar industries, of which there is a large concentration of
in Salt Lake City. Over the long run, strong demographic
characteristics coupled with a diverse economy and a burgeoning
high tech industry is expected to lead to robust growth for Salt
Lake City.
Further considerations are as follows:
• In spite of the slowdown experienced over the last twelve to
eighteen months, the Salt Lake City metro area ranked third in the
Milken Institutes rankings of best performing cities by job growth
and retention for 2008. The Salt Lake City MSA fell behind only
Provo-Orem MSA, (number one), and the Raleigh-Cary, North Carolina
MSA, (number two) in terms of employment growth and job
retention.
• Salt Lake City is experiencing unprecedented growth in the
Central Business District. Within the next five years, estimates by
the Salt Lake City Downtown alliance suggest that more than $5.0
billion dollars of private investment will take place in downtown
Salt Lake City’s core. Public projects are scheduled or underway to
extend light rail from the Energy Solutions Arena to the intermodal
hub, improve street parking and landscape of 300 South Center, and
improve Gallivan Center Plaza and Pioneer Park. Private development
will drive new retail, housing, cultural, institutional and
commercial projects. The Economic Development Department interfaces
on an ongoing basis with developers as the projects progress.
Assistance with city process is offered for all phases of the
development projects.
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TOOELE COUNTY LAND REGIONAL ANALYSIS 7
VALUATION SERVICES
• After several months of speculation, local Airline giant Delta
Airlines agreed to a merger with rival Northwest airlines in the
third quarter of 2008. In September of 2008, shareholders for both
companies approved a merger that created the largest air carrier in
the world. Deciding that in the tumultuous airline industry their
chances are better together than separate, the two sides agreed to
merge. The merger received anti-trust approval in November of 2008,
and Northwest’s staff and planes have begun to be transitioned to
Delta. The merger, including re-branding of all of Northwest’s
planes is expected to be complete by year-end 2009, while the
worldwide undertaking is expected to be completed by 2010. Salt
Lake City will keep its local Delta hub, despite the merger. With
the improved access to the east due to Northwest Airlines extensive
ties to Asia, the merger could help drive growth in Salt Lake City
going forward. However, transportation, and distribution employment
is highly cyclical and this sector will remain fairly unstable
going forward.
• The Church of Jesus Christ of Latter Day Saints, (LDS) church
is spearheading an ambitious redevelopment project in the central
business district that included the demolition of two shopping
centers and several office buildings to make way for the City Creek
Center, a sustainable mix of residences, office space and retail
space slated for construction over the next four years. The project
is expected to deliver nearly 1,000 residential units and over
800,000 square feet of retail, and has the potential for further
office space developments. The City Creek Center is expected to be
delivered by 2012, and is currently still in the late stages of
demolition, and early stages of construction. In another
development Hamilton Partners expects to deliver its 21-story,
450,000 square-foot tower at 222 Main Street this spring.
Additionally, the local government and Chamber of Commerce have
introduced a comprehensive plan that considers the broader
implications of these and other proposed developments in an effort
to ensure continuity and ease traffic congestion.
DEMOGRAPHIC TRENDS
DEMOGRAPHIC CHARACTERISTICS With its younger and relatively
better educated population, it is not surprising that Salt Lake
City fares batter than the U.S. in nearly all demographic
categories. Salt Lake City’s demographic traits reflect an area
where a high quality of life, a favorable climate for business, and
an emphasis on education has resulted in robust population
increases, and above average income and education levels. Overall,
the demographic characteristics of the Salt Lake City MSA are
positive, and should continue to buoy in-migration trends to the
metro area going forward.
Further considerations are as follows:
With a median age of only 31.1 years, Salt Lake City is a very
young market compared to the nation, where the median age is over
5.5 years older at 36.7 years.
The 2008 median household income of $56,822 in Salt Lake is 11.7
percent higher than the national median household income of
$50,107. Salt Lake City MSA also has a considerably higher average
household income than the nation, however, average household income
levels in Salt Lake City proper are only roughly 5.5 percent above
national levels.
Residents of the Salt Lake City MSA boast very strong
educational attainment statistics. Salt Lake City has a
substantially smaller percentage of residents without a high school
degree, and significantly higher percentages of residents with at
least some college experience, or a bachelor’s degree. The only
education bracket that Salt Lake City falls behind the nation in,
is percentage of residents with an advanced degree, and at 8.8
percent, versus 8.9 percent, the difference is negligible.
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TOOELE COUNTY LAND REGIONAL ANALYSIS 8
VALUATION SERVICES
The following chart compares the demographic characteristics of
the Salt Lake City MSA with the demographic characteristics of the
U.S.:
Characteristic Salt Lake MSA U.S.Median Age (years) 31.2
36.7Average Annual Household Income $71,889 $67,918 Median Annual
Household Income $56,822 $50,170
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TOOELE COUNTY LAND REGIONAL ANALYSIS 9
VALUATION SERVICES
POPULATION GROWTH BY YEAR Salt Lake City MSA vs. United States,
1999-2013
0.0%
1.0%
2.0%
3.0%
4.0%
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Source: Data Courtesy of Moody's Economy.com and Cushman &
Wakefield Valuation Services Note: Shaded bars indicate periods of
recession
Annu
al P
erce
nt C
hang
eUnited States Salt Lake City, UT Forecast
Salt Lake County accounts for approximately 91.5 percent of the
region’s population, and as a result has been the slowest, by
percentage, growing county in the area. Over the past decade, all
three counties within the Salt Lake City MSA averaged population
growth rates that exceeded the U.S. average.
Further considerations are as follows:
• Among the Salt Lake City MSA’s component counties, Tooele
County was the fastest growing in the region, over the past decade,
with an impressive 4.8 percent average annual rate of growth.
Tooele County’s above average pace of population growth is expected
to continue through 2013, albeit at a relatively slower rate of 2.6
percent, but still significantly higher than any other county in
the MSA.
• Salt Lake County grew at the slowest pace during the past ten
years, while maintaining the highest population. While Salt Lake
County saw the largest increase in total population over the past
decade, the county also had the lowest level of annual growth of
any of the component counties.
The following table shows Salt Lake City MSA’s annualized
population growth by county:
Population (000’s) 1999 20092013
Forecast
Annual Growth99-08
Annual Growth09-13
United States 279,436.9 307,420.2 319,539.4 1.0% 1.0%Salt Lake
City MSA 958.2 1,160.6 1,227.7 1.9% 1.5%
Salt Lake County 891.1 1,064.1 1,123.0 1.7% 1.5%Summit County
29.0 37.9 40.1 2.8% 1.7%Tooele County 38.1 58.6 64.5 4.8% 2.6%
Source: Data Courtesy of Moody's Economy.com, Cushman &
Wakefield Valuation Services
Annualized Population Growth by County
1999-2013Salt Lake City MSA
HOUSEHOLDS Over the past decade, household formation trends in
Salt Lake City roughly tracked overall population growth. Again,
the high quality of life and affordability of the Salt Lake City
region fueled this expansion. Household growth is expected to rise
above population growth levels over the next five year period, as
the number of people occupying a single housing unit is expected to
increase more rapidly than the overall population. This trend
of
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TOOELE COUNTY LAND REGIONAL ANALYSIS 10
VALUATION SERVICES
household formation outpacing overall population growth results
from such sociological factors as: longer life expectancies,
increasing divorce rates, and young professionals postponing
marriage.
Further considerations are as follows:
• Over the past ten years, from 1999 through 2008, the Salt Lake
City MSA saw total households increase by an average annual rate of
1.9 percent, in-line with the 1.9 percent population growth
indicated over the same time period. Similarly, over the past
decade the U.S. saw total households increase at an average annual
rate of 1.0 percent, in-line with overall population growth.
• Over the following five year period from 2009 through 2013,
household formations are expected to increase in both the U.S. and
Salt Lake City. The Salt Lake City MSA is projected to see average
annual household growth of 2.0 percent, well above the average
annual projected rate of population growth of 1.5 percent. The
comparable U.S. figure is 1.2 percent, slightly above the forecast
1.0 percent annual population growth.
• Salt Lake City’s most affluent areas are located primarily
east of Interstate 15 (I-15) near the communities of Sandy,
Cottonwood Heights, and Bountiful. Few ZIP codes posted median
household incomes of $100,000 or greater and most of the Salt Lake
region lies within the $50-75,000 income range.
The following graph compares historical and projected population
growth between the Salt Lake City MSA and U.S. as a whole:
HOUSEHOLD FORMATION BY YEAR Salt Lake City MSA vs. United
States, 1999-2013
0.0%
1.0%
2.0%
3.0%
4.0%
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Source: Data Courtesy of Moody's Economy.com and Cushman &
Wakefield Valuation Services Note: Shaded bars indicate periods of
recession
Annu
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erce
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e United States Salt Lake City, UT Forecast
ECONOMIC TRENDS
GROSS METRO PRODUCT Salt Lake City has typically been a strong
performer in terms Gross Metro Product (GMP) growth. Salt Lake
City’s GMP, like that of the U.S., has been fairly responsive to
national economic conditions, although lagged behind the rest of
the nation in showing the effects of these national downturns. From
2005 through 2007, GMP growth in the Salt Lake City MSA averaged
nearly 6.0 percent growth per year, representative of the fastest
growing GMP in the nation over this time period.
Further considerations are as follows:
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TOOELE COUNTY LAND REGIONAL ANALYSIS 11
VALUATION SERVICES
• From 1999 to 2008, Salt Lake City’s GMP grew at an average
annual rate of 3.4 percent, 90 basis points above the nations’
annualized average of 2.5 percent. Summit County accounted for the
highest GMP growth in the Salt Lake region, averaging 5.1 percent
annually during the same time period.
• From 2009 through 2013, GMP growth in Salt Lake City is
expected to decrease to an annual average of 2.9 percent. This rate
is forecast to be 40 basis points higher than the projected rate
for the U.S., which is expected see average annual growth of 2.5
percent over the same time period.
• Tooele County is expected to lead the region in terms of GMP
growth over the next five years, with projected average annual GMP
increases of 4.1 percent through 2013.
The following graph compares historical and projected GMP growth
by year for the Salt Lake City MSA and U.S. as a whole:
GROSS METRO PRODUCT GROWTH BY YEAR Salt Lake City MSA vs. United
States, 1999-2013
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Source: Data Courtesy of Moody's Economy.com and Cushman &
Wakefield Valuation Services Note: Shaded bars indicate periods of
recession
Annu
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e United States Salt Lake City, UT Forecast
EMPLOYMENT DISTRIBUTION Though the Salt Lake region is slightly
more heavily weighted in Trade, Transportation and Utilities, it is
well-diversified and for the most part on par with the employment
distribution seen in the U.S. The Salt Lake City region has long
benefited from strong industrial diversity, and the fact that no
employment sector commands more than 21.0 percent of the workforce
is a testament to this. The industrial diversity within Salt Lake
City should help insulate the local economy from severe job losses
as the national recession continues, and is expected to contribute
to a quicker recovery for Salt Lake City as the region begins to
rebound in the next twelve to eighteen months.
Further considerations are as follows:
• The Trade, Transportation, & Utilities sector employs 20.8
percent of the region’s employees. Salt Lake City is often referred
to as the "Crossroads of the West" for its central geography in the
western United States. As a result, Interstate 15 is a major
corridor for freight traffic and the area is host to many regional
distribution centers. Retail Trade comprises the bulk of jobs
within this sector.
• Government and Professional & Business Services are also
heavily represented in the Salt Lake City employment distribution.
Employment percentages in Construction, Information, Trade
Transportation and Utilities, and Financial Activities exceed those
indicated for the U.S.
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TOOELE COUNTY LAND REGIONAL ANALYSIS 12
VALUATION SERVICES
• The region is considerably less represented in the Education
& Health Services, Manufacturing, and surprisingly the Leisure
and Hospitality Services sectors compared to the U.S.
The following graph compares non-farm employment sectors for the
Salt Lake City MSA and U.S. as a whole:
EMPLOYMENT BY SECTOR Salt Lake City MSA vs. United States
2008 Estimates
0% 5% 10% 15% 20% 25%
ConstructionManufacturing
Trade, Transportation, & UtilitiesInformation
Financial ActivitiesProfessional & Business Services
Education & Health ServicesLeisure & Hospitality
Other Services (except Govt.)Government
Source: Data Courtesy of Moody's Economy.com and Cushman &
Wakefield Valuation Services
United States
Salt Lake City, UT
MAJOR EMPLOYERS The Salt Lake City region is home to one Fortune
500 company and two other companies that fall within the Fortune
1000. Huntsman, a global chemical manufacturer is the only local
company falling within the 2009 Fortune 500. Questar, and Zions
Bancorp are the two other companies headquartered in Salt Lake City
that fall into the Fortune 1000. As mentioned above, Salt Lake
City’s major industries are government, trade, transportation,
utilities, and professional and business services. Local, state,
and federal governments have their largest presence in the city
itself, and trade, transportation, and utilities also take up a
significant portion of employment. The major Trade Transportation
and Utilities employer being Delta Air Lines, which has a hub at
Salt Lake City International Airport. Equally significant are the
professional and business services. Since Utah is one of seven
states that allow the establishment of commercially-owned
industrial banks, a majority of industrial banks in the U.S. have
established their headquarters in the Salt Lake City area.
High-tech has also recently carved a niche in the Salt Lake City
economy, with several prominent high-tech companies, including,
Unisys, Siebel, Micron, L-3 Communications and 3M calling Salt Lake
City home. Other major employers include the University of Utah,
Sinclair Oil Corporation, and The Church of Jesus Christ of
Latter-day Saints.
The following table lists the Salt Lake City MSA’s largest
private employers, and highlights the diversified nature of the
regional employment concentration:
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TOOELE COUNTY LAND REGIONAL ANALYSIS 13
VALUATION SERVICES
CompanyNo. of
EmployeesBusiness
TypeIntermountain Healthcare Inc. 27,357 HealthcareUniversity of
Utah 13,000 EducationHuntsman Corporatio, LLC 11,600
ManufacturingTeleperformance USA 10,000 ServicesZions
Bancorporation 9,500 FinanceConvergys 7,000 ServicesUniversity
Hospitals/Clinics 4,500 HealthcareAssociated Food Stores, Inc.
4,500 RetailWells Fargo & Company 3,500 FinanceL-3
Communications Systems-West 3,000 Communications
Largest EmployersSalt Lake City, UT
Source: Utah Major Employers Guide March 2008
EMPLOYMENT GROWTH The Salt Lake City MSA has consistently ranked
among the nation’s top metro areas in terms of employment growth.
While job growth has historically been very strong, and continued
at an above average pace through the first half of 2008, job losses
began to mount in the latter half of 2008, and have accelerated
over the first quarter of 2009. Employment losses spread across all
sectors, except: Education and Health Services, Government, and
Information. However, over the first three months of 2009, even
those stalwart sectors began to shed jobs in the Salt Lake City
region. Salt Lake City is projected to see consecutive years of
negative employment growth over the next two years, before the
region rebounds with above average job growth in 2011.
Further considerations are as follows:
• Between 1999 and 2008, Salt Lake City’s employment growth
averaged 1.9 percent per year, which was a full percentage point
higher than the 0.9 percent annual average of the U.S. over the
same time period. With an average annual total employment growth of
4.6 percent over the past decade, Summit County displayed the most
robust employment gains.
• In 2008, as the nation began to fall into a deep recession
Salt Lake City continued to see positive job growth, in spite of
job losses on a national level. Over the year, Salt Lake City saw
total employment grow by 0.7 percent, while the U.S. saw job losses
of 0.4 percent. The positive growth was largely due to stable
growth across most sectors over the first two quarters of the year,
and growth in government, natural resources and mining, and
education and health services over the back half of the year.
• Employment losses are expected over the next two years in both
the U.S. and Salt Lake City, as both the nation and the Salt Lake
City region remain in contraction. Over the next five years,
employment growth in Salt Lake City is expected to average 1.3
percent per year, compared to an average annual rate of 1.0 percent
growth for the U.S.
The following graph illustrates total non-farm employment growth
per year, for the Salt Lake City MSA, and the U.S.
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TOOELE COUNTY LAND REGIONAL ANALYSIS 14
VALUATION SERVICES
TOTAL EMPLOYMENT GROWTH BY YEAR Salt Lake City MSA vs. United
States, 1999-2013
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Source: Data Courtesy of Moody's Economy.com and Cushman &
Wakefield Valuation Services Note: Shaded bars indicate periods of
recession
Annu
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e United States Salt Lake City, UT
Forecast
UNEMPLOYMENT Given the market’s historically strong employment
growth, Salt Lake City’s unemployment rate was lower than the
national rate in each of the past ten years. Unemployment levels in
the state of Utah have historically been very low, and Salt Lake
City has often suffered from underemployment, a situation where
unemployment is so low the area is negatively affected by a lack of
qualified workers. Unemployment levels in Salt Lake City are
forecast to continue rising over the next twelve to eighteen months
creating much needed slack in the local labor market. Still,
unemployment in Salt Lake City is forecast to remain well below the
national rate, and is not expected to surpass 7.0 percent.
Further considerations are as follows:
• The Bureau of Labor Statistics reported an unemployment rate
of 5.2 percent for the Salt Lake City MSA as of February of 2009.
Salt Lake City’s unemployment rate has increased 2.0 percentage
points since February of 2008 when local unemployment was just 3.2
percent. Salt Lake City’s current rate sits 30 basis points below
the statewide unemployment rate of 5.5 percent, and 3.3 percentage
points below the national rate which was reported at 8.5 percent in
February.
• Salt Lake City’s unemployment rate is expected to continue
increasing through the middle of 2010, before begging to trend
downward again later that year.
• The recent increase in unemployment in Salt Lake City may
actually bode well for the region as skilled, well educated workers
have been in short supply, and had created an obstacle for new
firms wanting to relocate to the area.
The following graph compares historical and projected
unemployment levels for the Salt Lake City MSA, the state of
Oregon, and the U.S. as a whole:
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TOOELE COUNTY LAND REGIONAL ANALYSIS 15
VALUATION SERVICES
UNEMPLOYMENT RATE BY YEAR Salt Lake City MSA vs. Utah vs. United
States, 1999-2013
2%
4%
6%
8%
10%
12%
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Source: Data Courtesy of Moody's Economy.com and Cushman &
Wakefield Valuation Services Note: Shaded bars indicate periods of
recession
United States Utah Salt Lake City, UT Forecast
CONCLUSION The ongoing local housing downturn, coupled with the
contracting national economy will likely keep Salt Lake City in a
recession the rest of 2009, and through much of 2010. As turmoil
has spread from manufacturing and construction, to white collar
sectors like finance and banking local job losses have accelerated.
Weakened consumer confidence will hamper service industry growth in
the near term as unemployment surges, income growth slows, and
credit remains scarce. Unemployment in Salt Lake City recently rose
above 5.0 percent for the first time since 2002, and Salt Lake City
appears to finally be experiencing the economic deterioration seen
throughout the country over the past year.
Over the long run, Salt Lake City will continue to benefit from
a high quality of life, below average business and living costs,
and very strong demographic trends as the area returns to positive
growth. Additionally, the Salt Lake City metro area’s diverse
economy, and budding high-tech industry should contribute to a
quicker rebound than is expected in many other western metro areas.
Overall, Salt Lake City is expected to see growth far above the
national average over the long run.
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TOOELE COUNTY LAND LOCAL AREA MAP 16
VALUATION SERVICES
L O C A L A R E A M A P
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TOOELE COUNTY LAND LOCAL AREA ANALYSIS 17
VALUATION SERVICES
L O C A L A R E A A N A L Y S I S
L O C A T I O N The property is located in the community of
Tooele. Generally, the boundaries of the immediate area are Highway
36 to the West, the Oquirrh Mountains to the east, Tooele Central
Business District to the south, and Erda Way to the north. Other
local landmarks include the Union Pacific Railroad tracks along the
west boundary of the subject. The Central Business District is
approximately 2 miles south of the subject the subject
property.
A C C E S S Local area accessibility is generally good, relying
on the following transportation arteries:
Local: The subject has frontage on Droubay Road which runs north
and south connecting to Erda Way in the north, which connects with
Highway 36 and smelter road to the south which connects to the
Tooele CBD. The subject’s most direct access to Highway 36 is
provided by Pine Canyon Road which connects to Highway 36 just
southwest of the subject.
Regional: Highway 36 is the main transportation artery in Tooele
County and is about 1/3rd of a mile west of the subject. Highway 36
is a north/south thoroughfare which leads to Interstate 80
approximately 9 miles to the north.
There is commercial rail service in Tooele but no commuter rail.
There is no local bus service and regional bus service is limited
to morning and evenings with service to Salt Lake City.
N E A R B Y A N D A D J A C E N T U S E S The subject’s
immediate local area is composed of single family residential uses.
The residences to the north and west of the subject are low density
rural residences generally on five acre lots. There is still a
large amount of vacant agricultural land to the east and north of
the subject, although much of it has been developed in the last ten
years. The subject borders on the city boundary with the City of
Tooele on the west and south. There is higher density residential
development to the south of the subject as well as a church and the
Copper Canyon Elementary School. There are extensive commercial
uses along Highway 36 west of the subject. These include
L O C A L A R E A C H A R A C T E R I S T I C S Tooele County is
adjacent to the west of the previously discussed Salt Lake-Ogden
MSA. Tooele County had a population of 56,536 people in 2007. The
city of Tooele accounted for 56 percent of the county population.
The only other incorporated cities are Grantsville (Population
6,824) and Wendover (Population 1,620). As stated the local economy
is most influenced by trends in the Salt Lake City area. Tooele was
one of the fastest growing counties in the country earlier in the
decade. Due to lower land costs and property availability and the
rising costs and diminishing land supply in Salt Lake County, there
has been a migration to Tooele County. The Census bureau projects
that by 2016 the county population will have grown to 70,300 which
represents a compound annual growth rate of 3.54 percent which is
over twice the growth rate projected for the State of Utah. The
population growth is fueled by the expansion of the Salt Lake City
MSA. According to the Department of Workforce Services there are
many more commuter residents. In 1990 about 19.5 percent of the
county residents worked outside the county. By 2000 that number had
reportedly increased to 45.5 percent. This is a trend that has
continued and is likely to continue.
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TOOELE COUNTY LAND LOCAL AREA ANALYSIS 18
VALUATION SERVICES
Employment in Tooele County had historically been concentrated
in government defense until 1993 when the Tooele Army Depot was
closed. Employment at the depot went from 2,500 to 700. Employment
growth in Tooele County has been generally stable in the past few
years with a slight decline from 2007 to 2008. The opening of the
1.2 million square foot Wal-Mart Regional Distribution Facility in
Grantsville at the beginning of 2005 helped boost this growth. This
facility is expected to employ up to 1,000 people when it is at
full capacity. The areas other largest employers include Dugway
Proving Grounds, Tooele Army Depot, Tooele County School District,
EG and G Defense Materials, and Detroit Diesel.
The City of Tooele offers a good quality of life with a growing
retail and services sector offering the goods and services that
used to require a trip to Salt Lake County.
S P E C I A L H A Z A R D S O R A D V E R S E I N F L U E N C E
S The subject is located on the east side of the Union Pacific
railroad tracks which are still an active rail line. This is not
considered an extraordinary nuisance. The Tooele Army Depot is
approximately 2 miles southwest of the subject. This project is now
in the private sector leasing industrial space. There is reportedly
a plume of groundwater contamination around this facility resulting
from former military activities at the base.
L A N D U S E C H A N G E S The subject has been transitioning
from rural agricultural uses to single family residential use.
There are several new five acre lot subdivisions just to the east
and north of the subject. Specifically the Spring Canyon Estates
has roads under construction and lot sales underway for five acre
lots at the southeast corner of Pine Canyon Road and Droubay Road.
The Meadowbrook subdivision is on the east side of Droubay Raod
north of the subject as is the proposed Arrowhead Estates
subdivision. Demand for this type of land use change has stopped
and there is currently an oversupply of lots in the area.
C O N C L U S I O N The area is generally stable with a recent
boom of development having ended in tandem with the national
housing crisis. Overall, the outlook for the area is positive with
generally stable real estate values. The strong market conditions
in adjacent Salt Lake County area during the past decade have
resulted in migration to the more affordable housing in Tooele
County which still has good access with a drive time of less than
45 minutes to the majority of employment centers in the Salt Lake
Valley. The subject is located adjacent to the city and is
surrounded on two sides by residential development. It is directly
in the path of growth emanating from the city of Tooele.
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TOOELE COUNTY LAND MARKET ANALYSIS 19
VALUATION SERVICES
M A R K E T A N A L Y S I S As noted the subject is located in
unincorporated Tooele County, Utah sharing a boundary to the city
of Tooele. The subject property is proposed for residential uses,
which is considered appropriate given its location and the nature
of the surrounding uses. We have prepared an overview of the
current residential market (homes).
EXISTING HOUSING STOCK The housing stock within Tooele County
consists mainly of single family residences, which is typical of
most Utah communities located outside the population centers of
Salt Lake City, Provo/Orem and Ogden. According to Claritas, Inc.,
there are 18,657 housing units in Tooele County and 10,295 within
the city of Tooele representing 55.2% of the total units in the
county. On a county wide basis, approximately 75.25 percent of the
housing units are single-family detached units, 5.59 percent are
single-family attached units, 9.37 percent are multi-family
dwellings, and 9.79 percent are mobile homes, RV’s, or trailers.
Home ownership is relatively high, with 81.04 percent of all
housing units being owner-occupied and 18.96 percent being
renter-occupied. Approximately 50.14 percent of the housing units
were constructed prior to 1990. The 2008 median home value in
Tooele County was $187,198, which is higher than the median home
value in the city of Tooele ($174,967) and lower than the state of
Utah ($191,888). Characteristics of the housing market for the city
of Tooele, Tooele County and Utah are presented in the following
table.
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TOOELE COUNTY LAND MARKET ANALYSIS 20
VALUATION SERVICES
TOOELE COUNTY HOUSING PROFILECITY OF TOOELE TOOELE CO, UT
UTAH
2008 Occupied Housing Units 9,729 17,371 835,538Owner Occupied
80.88% 81.04% 73.44%Renter Occupied 19.12% 18.96% 26.56%
2008 Est. All Owner-Occupied Housing Values 7,869 14,078
613,611Value Less than $20,000 1.88% 2.08% 1.32%Value $20,000 -
$39,999 1.69% 1.88% 1.50%Value $40,000 - $59,999 1.12% 1.20%
1.55%Value $60,000 - $79,999 1.66% 1.88% 2.04%Value $80,000 -
$99,999 2.80% 2.57% 3.47%Value $100,000 - $149,999 21.90% 17.62%
18.88%Value $150,000 - $199,999 37.96% 30.61% 25.35%Value $200,000
- $299,999 27.36% 31.54% 27.50%Value $300,000 - $399,999 2.26%
6.52% 9.58%Value $400,000 - $499,999 1.05% 2.73% 3.70%Value
$500,000 - $749,999 0.10% 0.91% 3.37%Value $750,000 - $999,999
0.11% 0.32% 1.02%Value $1,000,000 or more 0.10% 0.14% 0.72%
2008 Est. Median All Owner-Occupied Housing Value $174,967
$187,198 $191,888
2008 Est. Housing Units by Units in Structure 10,295 18,657
922,5561 Unit Attached 4.63% 5.59% 4.89%1 Unit Detached 73.72%
75.25% 69.35%2 Units 3.92% 2.86% 3.44%3 to 19 Units 6.74% 5.74%
11.47%20 to 49 Units 0.39% 0.28% 2.67%50 or More Units 0.77% 0.49%
2.63%Mobile Home or Trailer 9.70% 9.38% 5.23%Boat, RV, Van, etc.
0.13% 0.41% 0.32%
2008 Est. Housing Units by Year Structure Built 10,295 18,657
922,556Housing Unit Built 1999 to present 35.53% 36.19%
22.76%Housing Unit Built 1995 to 1998 15.42% 13.67% 10.56%Housing
Unit Built 1990 to 1994 2.62% 3.90% 6.90%Housing Unit Built 1980 to
1989 3.87% 7.23% 13.26%Housing Unit Built 1970 to 1979 11.40%
11.95% 17.85%Housing Unit Built 1960 to 1969 10.61% 7.75%
8.50%Housing Unit Built 1950 to 1959 7.05% 7.95% 7.76%Housing Unit
Built 1940 to 1949 5.85% 4.68% 4.49%Housing Unit Built 1939 or
Earlier 7.65% 6.67% 7.92%
2008 Est. Median Year Structure Built 1995 1995 1983
Source: Claritas
TOOELE COUNTY DWELLING BUILDING PERMIT TRENDS The recent
slowdown in the residential market can be seen in the decline in
building permit activity in Tooele and Tooele County as shown in
the following building permit summary. The building permit data is
for new dwelling units only and is presented in terms of total
annual permits issued and construction valuation on an annual basis
from 2002 to 2008.
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TOOELE COUNTY LAND MARKET ANALYSIS 21
VALUATION SERVICES
Tooele County (by city) New Dwelling Building Permit Trends 2002
- 2008
# Permits Valuation ($000) # Permits Valuation ($000) # Permits
Valuation ($000) # Permits Valuation ($000) # Permits Valuation
($000) # Permits Valuation ($000) # Permits Valuation
($000)Grantsville 53 6,268.8 58 7,144.6 67 8,357.1 157 20,556.6 184
31,487.3 168 34,049.0 26 5,125.2Tooele 351 37,571.5 169 20,155.1
221 28,199.5 221 27,889.7 254 35,780.7 150 21,589.8 77
12,082.0Wendover 0 0.0 33 3,576.5 0 0.0 0 0.0 1 195.0 0 0.0 1
0.0Tooele County 205 25,084.1 152 17,399.6 280 30,697.4 360
44,219.8 241 35,671.3 239 31,517.7 133 19,612.7
Total 609 68,924.4 412 48,275.8 568 67,254.0 738 92,666.1 680
103,134.3 557 87,156.5 237 36,819.9
% Change -- -- -47.82% -42.77% 27.46% 28.22% 23.04% 27.42%
-8.53% 10.15% -22.08% -18.33% -135.02% -136.71%
Source: Univ. of Utah Bureau of Economic & Business
Research; Utah Construction Report. Includes all types of permit
authorized construction.
2002 20082003 2004 2005 2006 2007
The building permit data shows a peak year of 2005 for permits
issued of 738. Since then permits issued have been declining an
annual basis. The most dramatic decline was from 2007 to 2008,
which indicated a -135.02 percent decline (667 to 237 permits).
Tooele County has issued the most permits over the last years,
outpacing the city of Tooele.
TOOELE COUNTY MARKET CONDITIONS – HOME SALES The recent slowdown
in the residential market is graphically illustrated in the table
below which shows total number of homes listed and sold with
average sales prices since the fourth quarter of 2004. The
following information is provided by the Wasatch Front Multiple
Listing Service (MLS).
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TOOELE COUNTY LAND MARKET ANALYSIS 22
VALUATION SERVICES
As the graph demonstrates, the median home price in Tooele
County has generally been increasing since the fourth quarter of
2004. Pricing peaked in the third quarter of 2007 at $207,200,
dropping from that point before hitting $207,500 in the third
quarter of 2008. Since that time the median sale price has been in
decline.
The total number of homes sold has been declining steadily since
the third quarter of 2006 (373 homes sold). In the fourth quarter
2008, there were 118 sales reported, which represents a 4 year
low.
The total number of listings, by quarter, during the period
presented above, ranged from 295 (fourth quarter 2005) to 614
(third quarter 2007). As of the fourth quarter 2008, there were 322
active home listings in the Wasatch County market. These listings
represent an approximate 1.93 year’s supply of single family homes
based on the 2008 average quarterly absorption of 167 units.
By presenting similar market data in a quarterly comparison, the
declining number of buyers in the market is apparent. The number of
single family units sold in 2008 was 33.57 percent less than the
number of units sold in the year prior. The average home price fell
2.52 percent over the same time period. Combined with the increased
days on market statistics, this indicates that there are still
buyers in the market, however, fewer than in the previous year.
Over the same period new listing decreased 6.40%. It is noted that
the averge sales price for sold single family units increased
significantly from 2005 to 2006 (21.75%) and from 2006 to 2007
(18.59%), consistent with larger regional and nationwide
appreciation trends. The statistics are presented below.
Annual Comparisons 2005, 2006, 2007, 2008
2005 2006 % Change 2007 % Change 2008 % ChangeTooele County DOM
58 39 -32.76% 45 15.38% 75 66.67% Single # Sold 1091 1222 12.01%
971 -20.54% 645 -33.57% Single Avg Sales Price 143,165$ 174,303$
21.75% 206,714$ 18.59% 201,513$ -2.52% Condo # Sold 55 62 12.73% 49
-20.97% 29 -40.82% Condo Avg Sales Price 105,293$ 118,648$ 12.68%
138,238$ 16.51% 132,373$ -4.24%
New Listings 1597 1741 9.02% 2031 16.66% 1901 -6.40% Avg % of
New Listings Sold 71.76% 73.75% 2.77% 50.22% -31.90% 35.46% -29.40%
New Avg Asking Price 147,408$ 192,256$ 30.42% 228,371$ 18.78%
235,178$ 2.98%
This report was generated automatically by the Wasatch Front
Regional MLS at exactly 10:32:46 am 04/09/2009© 2005 Wasatch Front
Regional MLS All Rights Reserved
The Tooele County condominium market has fallen more
dramatically in terms of sales activity. From 2007 to 2008 condo
unit sales decreased by 40.82%. This is somewhat misleading due to
the limited amount of condominium unit inventory in the market
compared to single family units, which are the predominant unit
type in the market. The sales statistics, coupled with the
residential building permit trends indicate that demand for new
homes in Tooele County is weak and home builders and brokers in the
market indicate it might be several years before demand
returns.
The subject is presently zoned RR-5 which allows for 5 acre
lots. There is currently an oversupply of five acre lots in the
area. Immediately east of the subject are three different five acre
lot subdivisions that have had very few sales in the past 12
months. There were approximately 3 sales of 5 acre lots in 2008.
Lot pricing for these lots have most recently been in the range of
$150,000 to $200,000 with the most recent sale at $150,000 in Pass
Canyon. In addition to the lack demand buyers are having trouble
financing these types of lot purchases.
C O N C L U S I O N We have analyzed the profile of the
subject's competitive market in order to understand the current
market conditions for the end product which is planned for the
subject property.
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TOOELE COUNTY LAND MARKET ANALYSIS 23
VALUATION SERVICES
A regional and local overview was presented which highlighted
important points about the study area. Demographic and economic
data specific to the residential market were also presented.
Demographic information relating to these sectors was presented and
analyzed in order to determine patterns of change and growth as it
impacts the subject property. The following are our key
conclusions.
The residential market in Tooele consists of mainly
owner-occupied units. The large majority of these units are free
standing, single family residences.
According to building permit statistics, demand for new homes in
Tooele County, county wide including all jurisdictions, in 2008 has
dropped approximately 135 percent from 2007 levels. The building
permit statistics for Tooele County only indicate a decrease of 131
percent over the same time period.
According to MLS data, there is approximately 1.92 years supply
of single family homes in the Tooele County market. This oversupply
is evident immediately surrounding the subject with numerous five
acre lot subdivisions with vacant lots. There were only a few of
these lots sold in 2008.
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TOOELE COUNTY LAND SITE DESCRIPTION 24
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S I T E D E S C R I P T I O N
Location: Droubay Road at Pine Canyon Road
Tooele, Tooele County, UT 84074
The subject property is located on the west side of Droubay Road
on both sides of Pine Canyon Road.
Shape: Irregularly shaped
Topography: Level at street grade. There is a gravel quarry at
the north end of the subject along 2400 North Street. It does not
appear to be active but the quarry is a hole with surrounding
mounds of debris. This is a small portion of the subject estimated
at approximately five acres.
Land Area: 348.14 acres / 15,164,978 square feet in six
different tax parcels. The following table summarizes the land area
per Tooele County records.
Parcel # Acres03-014-0-0002 109.3603-014-0-0005
76.2603-014-0-0020 7.5803-024-0-0003 75.9403-024-0-0005
40.0003-024-0-0007 39.00
348.14
Tooele County Land Summary
Frontage: The subject property has average frontage. The
approximate frontage dimensions are listed below:
2400 North Street 1,980 feetDroubay Road 5,280 feet2000 North
Street 4,620 feet
Access: The subject property has average access.
Visibility: The subject property has average visibility.
Soil Conditions: We were not given a soil report to review.
However, we assume that the soil's load-bearing capacity is
sufficient to support existing and/or proposed structure(s). We did
not observe any evidence to the contrary during our physical
inspection of the property. Drainage appears to be adequate.
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TOOELE COUNTY LAND SITE DESCRIPTION 25
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Utilities: Utility providers for the subject property are as
follows:
Water WellsSewer SepticElectricity Rocky Mountain Power Gas
Questar GasTelephone Qwest
It is noted that as of the date of appraisal the subject is not
slated for annexation into the City of Tooele and thus will be
dependant on wells for water and septic systems for sewer. This is
typical of other 5 acre lot projects in the area.
Water Rights: The subject has extensive water rights which can
be used for development of the project. It is our understanding
that a portion of this water is tied to the subject property
through the Tooele City Water Special Service District and Tooele
County.
Site Improvements: None
Land Use Restrictions: We reviewed title reports prepared by a
national title team dated around the acquisition dates of the
subject in 2005 and 2006. Copies of these reports have been
retained in our files. The following significant items are shown in
the report:
Power line easements exist on several portions of the subject.
Kennecott Copper Corporation has an easement related to the air,
smoke, dust fumes, cinders and other matter that may result from
their mining activities in the area.
Flood Zone: The subject property is located in flood zone D.
FEMA Map & Date: The subject area is not mapped.
Flood Zone Description – Zone D:
Unstudied area where flood hazards are undetermined but flooding
is possible. No mandatory flood insurance purchase requirements
apply, but coverage is available in participating communities
Wetlands: We were not given a wetlands survey to review. If
subsequent engineering data reveal the presence of regulated
wetlands, it could materially affect property value. We recommend a
wetlands survey by a professional engineer with expertise in this
field.
Hazardous Substances: We observed no evidence of toxic or
hazardous substances during our inspection of the site. However, we
are not trained to perform technical environmental inspections and
recommend the hiring of a professional engineer with expertise in
this field.
It is noted there is a railroad line adjacent to the northwest
boundary of the subject. We are not aware of the release of any
hazardous substances in this area of the railroad.
Overall Site Utility: The subject site is functional for its
current use.
Location Rating: Average
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TOOELE COUNTY LAND SITE DESCRIPTION 26
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AERIAL VIEW
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TOOELE COUNTY LAND SITE DESCRIPTION 27
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TOOELE COUNTY LAND SITE DESCRIPTION 28
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TOOELE COUNTY LAND REAL PROPERTY TAXES AND ASSESSMENTS 29
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R E A L P R O P E R T Y T A X E S A N D A S S E S S M E N T
S
C U R R E N T P R O P E R T Y T A X E S The subject property is
located in the taxing jurisdiction of Tooele County. The assessor’s
parcel identification number is 03-014-0-0002, 03-014-0-0005,
03-014-0-0020, 03-024-0-0003, 03-024-0-0005, 03-024-0-0007.
According to the local assessor’s office, taxes are current. The
assessment and taxes for the property are presented below:
PROPERTY ASSESSMENT INFORMATIONAssessor's Parcel Number:
NumerousAssessing Authority: Tooele CountyCurrent Tax Year:
2008Assessment Ratio (% of market Value): 100%Are taxes current?
Taxes are currentIs there a grievance underway? Not to our
knowledgeThe subject's assessment and taxes are: At market
levels
ASSESSMENT INFORMATIONAssessed Value Totals
Land: $2,785,120Improvements: 0Total: $2,785,120Taxable
Assessment: $2,785,120
TAX LIABILITYTotal Tax Rate 1.03870%Total Property Taxes
$28,929Compiled by Cushman & Wakefield of Colorado, Inc.
C O N C L U S I O N The subject property is assessed in line
with comparable properties. Therefore, it is our opinion that the
subject’s real estate assessment and taxes are at market
levels.
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TOOELE COUNTY LAND ZONING 30
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Z O N I N G
G E N E R A L I N F O R M A T I O N The property is zoned RR-5
by the Tooele County. A summary of the subject’s zoning is provided
below:
ZONINGMunicipality Governing Zoning: Tooele CountyCurrent
Zoning: RR-5Current Use: Agricultural - UndevelopedIs current use
permitted: YesPermit details:Proposed Use: ResidentialIs proposed
use permitted: YesChange In Zone Likely: YesChange To: Higher
Density ResidentialZoning Change Applied For: YesZoning Variance
Applied For: Not applicablePermitted Uses:
Prohibited Uses:
ZONING REQUIREMENTS CODE SUBJECT INFORMATION SUBJECT
COMPLIANCEMinimum Lot Area: 5 acres ComplyingMaximum Building
Height: 35 feet ComplyingMaximum Lot Coverage (% of lot area):
10.0% ComplyingMinimum Yard Setbacks
Front (feet): 30 Non-ComplyingRear (feet): 50 ComplyingSide
(feet): 20 Complying
Compiled by Cushman & Wakefield of Colorado, Inc.
Permitted uses within this district include single family
residential.
Prohibited uses within this district include commercial and
industrial
Z O N I N G C O M P L I A N C E Property value is affected by
whether or not an existing or proposed improvement complies to
zoning regulations, as discussed below.
COMPLYING USES An existing or proposed use that complies to
zoning regulations implies that there is no legal risk and that the
existing improvements could be replaced “as-of-right.”
PRE-EXISTING, NON-COMPLYING USES In many areas, existing
buildings pre-date the current zoning regulations. When this is the
case, it is possible for an existing building that represents a
non-complying use to still be considered a legal use of the
property. Whether or not the rights of continued use of the
building exist depends on local laws. Local laws will also
determine if the existing building may be replicated in the event
of loss or damage.
NON-COMPLYING USES A proposed non-complying use to an existing
building might remain legal via variance or special use permit.
When appraising a property that has such a non-complying use, it is
important to understand the local laws governing this use.
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TOOELE COUNTY LAND ZONING 31
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O T H E R R E S T R I C T I O N S We know of no deed
restrictions, private or public, that further limit the subject
property's use. The research required to determine whether or not
such restrictions exist is beyond the scope of this appraisal
assignment. Deed restrictions are a legal matter and only a title
examination by an attorney or title company can usually uncover
such restrictive covenants. We recommend a title examination to
determine if any such restrictions exist.
Z O N I N G C O N C L U S I O N S We have analyzed the zoning
requirements in relation to the subject property, and considered
the compliance of the existing or proposed use. We are not experts
in the interpretation of complex zoning ordinances but based on our
review of public information, the subject property is a complying
use.
Detailed zoning studies are typically performed by a zoning or
land use expert, including attorneys, land use planners, or
architects. The depth of our study correlates directly with the
scope of this assignment, and it considers all pertinent issues
that have been discovered through our due diligence.
We note that this appraisal is not intended to be a detailed
determination of compliance, as that determination is beyond the
scope of this real estate appraisal assignment.
Z O N I N G C H A N G E The subject has explored the option of
annexation with the City of Tooele. The subject is within the
annexation boundary as defined by the city’s general plan. At the
time, in 2006, the city was reporting to be at maximum capacity on
their sewer system and did not want to annex the subject. The
subject owner subsequently has prepared a development plan which he
intends to submit to Tooele County. According to county officials
there is no formal application submitted with the county and the
current zoning RR-5, allowing for five acre minimum lot sizes is
still in effect for the subject land.
For informational purposes we have included the proposed
development plan for the subject as well as the current zoning
map.
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TOOELE COUNTY LAND ZONING 32
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TOOELE COUNTY LAND ZONING 33
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TOOELE COUNTY LAND HIGHEST AND BEST USE 34
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H I G H E S T A N D B E S T U S E
H I G H E S T A N D B E S T U S E D E F I N I T I O N The
Dictionary of Real Estate Appraisal, Fourth Edition (2002), a
publication of the Appraisal Institute, defines the highest and
best use as:
The reasonably probable and legal use of vacant land or an
improved property, which is physically possible, appropriately
supported, financially feasible, and that results in the highest
value. The four criteria the highest and best use must meet are
legal permissibility, physical possibility, financial feasibility,
and maximum profitability.
To determine the highest and best use we typically evaluate the
subject site under two scenarios: as vacant land and as presently
improved. In both cases, the property’s highest and best use must
meet the four criteria described above. Since this property is land
only, evaluating it as presently improved is not applicable.
H I G H E S T A N D B E S T U S E O F P R O P E R T Y A S V A C
A N T
LEGALLY PERMISSIBLE The zoning regulations in effect at the time
of the appraisal determine the legal permissibility of a potential
use of the subject site. As described in the Zoning section, the
subject site is zoned RR-5 by Tooele County. Permitted uses within
this district include single family residential. We are not aware
of any further legal restrictions that limit the potential uses of
the subject. Re-zoning of the subject is considered a possibility
given the higher density residential to the south and mobile home
park to the southeast.
PHYSICALLY POSSIBLE The physical possibility of a use is
dictated by the size, shape, topography, availability of utilities,
and any other physical aspects of the site. The subject site
contains 348.14 acres, or 15,164,978 square feet. The site is
irregularly shaped and level at street grade. It has average
frontage, average access, and average visibility. The overall
utility of the site is considered to be average. All public
utilities are available to the site including public gas, electric
and telephone. Water and sewer will be provided by wells and septic
tanks. Overall, the site is considered adequate to accommodate most
permitted development possibilities.
FINANCIALLY FEASIBLE AND MAXIMALLY PRODUCTIVE In order to be
seriously considered, a use must have the potential to provide a
sufficient return to attract investment capital over alternative
forms of investment. A positive net income or acceptable rate of
return would indicate that a use is financially feasible.
Financially feasible uses are those uses that can generate a profit
over and above the cost of acquiring the site, and constructing the
improvements. Of the uses that are permitted, possible, and
financially feasible, the one that will result in the maximum value
for the property is considered the highest and best use.
C O N C L U S I O N We considered the legal issues related to
zoning and legal restrictions. We also analyzed the physical
characteristics of the site to determine what legal uses would be
possible, and considered the financial feasibility of these uses to
determine the use that is maximally productive. Considering the
subject site’s physical characteristics and location, as well as
the state of the local market, it is our opinion that the Highest
and Best Use of the subject site as vacant is single family
residential to the highest allowable density at such time as
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TOOELE COUNTY LAND HIGHEST AND BEST USE 35
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market conditions improve in the future. . The subject as zoned
for five acre lots has significant competitive supply in the
subdivisions immediately surrounding it to the south and east.
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TOOELE COUNTY LAND VALUATION PROCESS 36
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V A L U A T I O N P R O C E S S
M E T H O D O L O G Y There are three generally accepted
approaches to developing an opinion of value: Cost, Sales
Comparison and Income Capitalization. We considered each in this
appraisal to develop an opinion of the market value of the subject
property. In appraisal practice, an approach to value is included
or eliminated based on its applicability to the property type being
valued and the quality of information available. The reliability of
each approach depends on the availability and comparability of
market data as well as the motivation and thinking of
purchasers.
The valuation process is concluded by analyzing each approach to
value used in the appraisal. When more than one approach is used,
each approach is judged based on its applicability, reliability,
and the quantity and quality of its data. A final value opinion is
chosen that either corresponds to one of the approaches to value,
or is a correlation of all the approaches used in the
appraisal.
We considered each approach in developing our opinion of the
market value of the subject property. We discuss each approach
below and conclude with a summary of their applicability to the
subject property.
COST APPROACH The Cost Approach is based on the proposition that
an informed purchaser would pay no more for the subject than the
cost to produce a substitute property with equivalent utility. This
approach is particularly applicable when the property being
appraised involves relatively new improvements which represent the
Highest and Best Use of the land; or when relatively unique or
specialized improvements are located on the site for which there
are few improved sales or leases of comparable properties.
In the Cost Approach, the appraiser forms an opinion of the cost
of all improvements, depreciating them to reflect any value loss
from physical, functional and external causes. Land value,
entrepreneurial profit and depreciated improvement costs are then
added, resulting in an opinion of value for the subject
property.
SALES COMPARISON APPROACH In the Sales Comparison Approach,
sales of comparable properties are adjusted for differences to
estimate a value for the subject property. A unit of comparison
such as price per square foot of building area or effective gross
income multiplier is typically used to value the property. When
developing an opinion of land value the analysis is based on recent
sales of sites of comparable zoning and utility, and the typical
units of comparison are price per square foot of land, price per
acre, price per unit, or price per square foot of potential
building area. In both cases, adjustments are applied to the unit
of comparison from an analysis of comparable sales, and the
adjusted unit of comparison is then used to derive an opinion of
value for the subject property.
INCOME CAPITALIZATION APPROACH In the Income Capitalization
Approach the income-producing capacity of a property is estimated
by using contract rents on existing leases and by estimating market
rent from rental activity at competing properties for the vacant
space. Deductions are then made for vacancy and collection loss and
operating expenses. The resulting net operating income is divided
by an overall capitalization rate to derive an opinion of value for
the subject property. The capitalization rate represents the
relationship between net operating income and value. This method is
referred to as Direct Capitalization.
Related to the Direct Capitalization Method is the Discounted
Cash Flow Method. In this method periodic cash flows (which consist
of net operating income less capital costs) and a reversionary
value are developed and
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TOOELE COUNTY LAND VALUATION PROCESS 37
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discounted to a present value using an internal rate of return
that is determined by analyzing current investor yield requirements
for similar investments.
S U M M A R Y This appraisal employs only the Sales Comparison
Approach. Based on our analysis and knowledge of the subject
property type and relevant investor profiles, it is our opinion
that this approach would be considered necessary and applicable for
market participants. Typical purchasers do not generally rely on
the Cost or Income Capitalization Approaches when purchasing a
property such as the subject of this report. Therefore, we have not
employed the Cost Approach or the Income Capitalization Approach to
develop an opinion of market value. A Developmental Analysis or
discounted cash flow could be applicable if there is adequate
information on the proposed development plan. This was not
available for the subject and so we have not applied that method in
this appraisal.
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TOOELE COUNTY LAND LAND VALUATION 38
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L A N D V A L U A T I O N We used the Sales Comparison Approach
to develop an opinion of land value. We examined current offerings
and analyzed prices buyers have recently paid for comparable sites.
If the comparable was superior to the subject, a downward
adjustment was made to the comparable sale. If inferior, an upward
adjustment was made.
The most widely used and market-oriented unit of comparison for
properties with characteristics similar to those of the subject is
price per acre. All transactions used in this analysis are based on
the most appropriate method used in the local market.
The major elements of comparison used to value the subject site
include the property rights conveyed, the financial terms
incorporated into the transaction, the conditions or motivations
surrounding the sale, changes in market conditions since the sale,
the location of the real estate, its utility and the physical
characteristics of the property.
The comparables and our analysis are presented on the following
pages.
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TOOELE COUNTY LAND LAND VALUATION 39
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SUMMARY OF LAND SALESPROPERTY INFORMATION TRANSACTION
INFORMATION
No. LocationSize
(Acres) Zoning Site UtilityPublic
Utilities Grantor GranteeProperty Rights
ConveyedSale Date Sale Price $/Acre COMMENTS
S Subject Property 348.14 RR-5 Average Partially available
1 2400 North Droubay Road, Tooele, UT
140.96 RR-5 Average Partially Available
Hotowen Inc. and Valora McMillen
WJR Properties
Fee Simple 4/08 $1,500,000 $10,641 The listing agent reports
this site was under contract for more than a year. Developed with 5
acre lots utilizing water wells and septic tanks. Minimal water
rights were reported to be included in this sale.
2 3800 N. Droubay Road, Erda, UT
80.77 RR-5 and A-20 Average All Needed Union Pacific
Railroad
Ironwood Real Estate
Fee Simple 1/08 $747,123 $9,250 This sale did not include water.
Purchaser already owned water. This project is proposed for
development as Arrowhead Estates subdivision. Telephone and natural
gas were available and lots will be developed
3 850 North Silver Fox Drive, Grantsville, UT
93.00 R-21-1 Average All Needed Darrel Nielson Haybrow
Development
Inc.
Fee Simple 5/07 $3,534,000 $38,000 This sale price did not
include water shares. The buyer subsequently purchased water and
obtained entitlements and resold to Fieldstone Homes at an
undisclosed price. This property has been developed
4 4585 Highway 112, Grantsville, UT
72.93 R-1-21 Ag Average All Available
Sage Ranch LLC
Randy Young Fee Simple 5/07 $1,851,500 $25,387 Buyer has applied
for annexation to Grantsville in order to get utilities.
Approximately 62 lots were anticipated by the purchaser.
5 East Side of Worthington St. at Nygreen St., Grantsville,
UT
125.99 R-1-21 Average Partially Available
Arthur & Susan Higley
Alan Johnson Fee Simple 3/07 $2,834,685 $22,499 Cost to extend
utilities to this site was estimated at $500,000 although shared
costs with adjacent landowners would reduce this cost to
$300,000.
6 2000 N. Droubay Road, Tooele, UT
348.15 RR-5 Average Partially Available
Various - See Comments
Castle Arch Real Estate Company
Fee Simple 9/05 $9,494,316 $27,271 This purchase represents the
assemblage of six parcels from several different sellers including
Highway 1 Group/Howoten,Inc/Wendell Jones Trustee/Shields
Family,LLC and William and Lynette Mueller Family
STATISTICSLow 72.93 9/05 $747,123 $9,250
High 348.15 4/08 $9,494,316 $38,000
Average 143.63 4/07 $3,326,937 $22,175
Compiled by Cushman & Wakefield of Colorado, Inc.
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TOOELE COUNTY LAND LAND VALUATION 40
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LAND SALE ADJUSTMENT GRIDEconomic Adjustments (Cumulative)
Property Characteristic Adjustments (Additive)
No.Price Per
Acre & Date
PropertyRights
ConveyedConditions
of Sale FinancingMarket(1)
ConditionsPer Acre Subtotal Location Size
PublicUtilities Utility(2) Other
Adj. Price Per Acre Overall
1 $10,641 Fee Simple Arm's-Length None Superior $9,296 Similar
Smaller Similar Similar Inferior $9,761 Inferior4/08 0.0% 0.0% 0.0%
-12.6% -12.6% 0.0% -5.0% 0.0% 0.0% 10.0% 5.0%
2 $9,250 Fee Simple Arm's-Length None Superior $8,081 Similar
Smaller Similar Similar Inferior $8,081 Similar1/08 0.0% 0.0% 0.0%
-12.6% -12.6% 0.0% -10.0% 0.0% 0.0% 10.0% 0.0%
3 $38,000 Fee Simple Arm's-Length None Superior $33,446 Inferior
Smaller Similar Similar Inferior $35,118 Inferior5/07 0.0% 0.0%
0.0% -12.0% -12.0% 5.0% -10.0% 0.0% 0.0% 10.0% 5.0%
4 $25,387 Fee Simple Arm's-Length None Superior $22,345 Inferior
Smaller Similar Similar Inferior $23,462 Inferior5/07 0.0% 0.0%
0.0% -12.0% -12.0% 5.0% -10.0% 0.0% 0.0% 10.0% 5.0%
5 $22,499 Fee Simple Arm's-Length None Superior $19,901 Inferior
Smaller Similar Similar Inferior $22,488 Inferior3/07 0.0% 0.0%
0.0% -11.5% -11.5% 5.0% -2.0% 0.0% 0.0% 10.0% 13.0%
6 $27,271 Fee Simple Arm's-Length None Superior $25,212 Similar
Similar Similar Similar Inferior $27,733 Inferior9/05 0.0% 0.0%
0.0% -7.5% -7.5% 0.0% 0.0% 0.0% 0.0% 10.0% 10.0%
$9,250 - Low Low - $8,081$38,000 - High High - $35,118$22,175 -
Average Average - $21,107
Compiled by Cushman & Wakefield of Colorado, Inc.(1) Market
Conditions Adjustment Footnote (2) Utility Footnote
Utility includes shape, access, frontage and visibility.
3.0%8/1/2007
0.0%9/1/2008