Airport Terminal Relocation Project Property Acquisition 1THE CITY OE Dubuque
---~ ''
Masterpiece on tl~e Mississippi ~~ ,
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Dubuque Regional Airport Terminal Relocation Project -Property at 10719
Merlin Lane
DATE: January 30, 2008
Assistant City Attorney Tim O'Brien is recommending approval of the resolution
establishing the fair market value of the property at 10719 Merlin Lane at $809,000, and
authorizing Dubuque Regional Airport Manager Robert Grierson and City Attorney Barry
Lindahl to commence negotiations with the property owner for purchase of the property
for the Dubuque Regional Airport Terminal Relocation Project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
'~~~Z
v
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Tim O'Brien, Assistant City Attorney
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the Mississippi ~,
JAMES (TIM A. O~BRIEN, ESQ. `!' ~~"'
ASSISTANT CITY ATTORNEY ;~
..,~
To: Michael C. Van Milligen
City Manager
DATE: January 25, 2008
RE: Dubuque Regional Airport Terminal Relocation Project -Property
at 10719 Merlin Lane
In order to move ahead with acquisition of the property by eminent domain, it is
necessary to have the property appraised and establish the fair market value of the
property in order to make an offer to the property owner for the purchase of the
property.
The property has been appraised at $809,000.
Enclosed is a resolution establishing the fair market value of the property for $809,000.
I would request that the enclosed resolution establishing the fair market value and
authorizing the Dubuque Regional Airport Manager and City Attorney to commence
negotiations with the property owner for the purchase of the property be submitted to
the Mayor and City Council for consideration and approval.
Enclosure
cc: Cindy Steinhauser, Assistant City Manager
Robert Grierson, Airport Manager
Ronald Bradley, Jeffrey Bradley, and Brian Bradley
F:\USERS\tsteckle\O'BrienWirport Land AcquisitionsWlVM_BradleyFairMarketValueResolution0204Agenda_012508.doc
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 3OO MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 583-8550 / FAx (563) 583-1040 / EMAIL tiobrien@cityofdubuque.org
Preparers James A. O'Brien Suite 330 Harbor View Place Dubuque, IA 52001 (563) 583-41138550
RESOLUTION NO. 69-08
ESTABLISHING THE FAIR MARKET VALUE OF REAL PROPERTY AT 10719
MERLIN LANE, DUBUQUE, IOWA, OWNED BY RONALD BRADLEY, JEFFREY
BRADLEY, AND BRIAN BRADLEY
WHEREAS, Ronald Bradley, Jeffrey Bradley, and Brian Bradley (Owners) are the
owners of the real property at 10719 Merlin Lane legally described as follows (the
Property):
Lot 2 of Lot 3 of the W '/z of the NW '/a of Section 36, Township 88 North,
Range 2 East of the Stn P.M., Dubuque County, Iowa, according to the
United States Government Survey and the recorded plats thereof, subject
to easements of record;
Lot 1 of Lot 1 of Lot 5, and Lot A of Lot 2, both of the Subdivision of the W
'/2 of the NW '/4 of Section 36, Township 88 North, Range 2 East of the Stn
P.M., Dubuque County, Iowa, according to the United States Government
Survey and the recorded plats thereof, subject to easements of record;
Lot 2 of Merlin Bradley, Second Addition, in Section 36, Township 88
North, Range 2 East of the 5t" P.M., in Dubuque County, Iowa, according
to the United States Government Survey and the recorded plats thereof;
The North 3/ of the N '/2 of the SW 1/4; Lot 1 of Lot 1 of the W '/Z of the
NW'/4 and Lot 2 of Merlin Bradley Addition, all in Section 36, Township 88
North, Range 2 East of the Stn P.M., in Dubuque County, Iowa, according
to the United States Government Survey and the recorded plats thereof,
subject to highway, and,
Lot 2 of the SE '/o of the NW '/4, and the SW '/4 of the NW '/4, except '/2
acre in the SW Corner thereof deeded to Independent School District of
Table Mound Township; Lot 2 of Lot 2 of the NW '/4 of the NW '/; Lot 3 of
Lot 1 of Lot 2 of Lot 1 of the NE '/4 of the NW '/a; all in Section 35,
Township 88 North, Range 2 East of the 5th P.M., in Dubuque County,
Iowa, according to the United States Government Survey and the
recorded plats thereof, less right of way conveyed to the State of Iowa
and/or the State Highway Commission for road purposes, and that part
sold to the City of Dubuque, Iowa, for airport purposes; and together with
and subject to all rights and easements of record, from November 13,
1996, title to which rests in Ronald Bradley, Jeffrey Bradley and Brian
Bradley, each owning an undivided 1/3 interest, and doing business as
Bradley Farms,
and
WHEREAS, the City of Dubuque (City) intends to acquire the Property for the
Dubuque Regional Airport Terminal Relocation Project; and
WHEREAS, Iowa law requires that City must make a good faith effort to
negotiate with Owners to purchase the Property before proceeding with condemnation;
and
WHEREAS, City may not make an offer to purchase the Property which is less
than the fair market value City has established for the Property; and
WHEREAS, City has caused an appraisal of the Property to be made and the
appraised value of the Property is $809,000.00; and
WHEREAS, the City Council now desires to establish the fair market value of the
Property.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA AS FOLLOWS:
1. The fair market value of the Properly is hereby established to be $809,000.00.
2. The Dubuque Regional Airport Manager and the City Attorney are hereby
authorized to commence negotiations with Owners of the Property and any other
interested parties for the purchase of the Property for a purchase price which is not less
than the fair market value established by this Resolution.
Passed, approved and adopted this 18th day of February, 2008.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
Appraisal of the
Bradley Property
X0719 Merlin Lane
Dubuque, Iowa
Prepared for the
City of Dubuque
Dubuque, Iowa
Prepared by
Nelson Appraisal
Bettendorf, Iowa
Date ofi Valuation
September 6, 2007
Date of Report
September 6, 2007
Nelson Appraise[
Real Property Value Consultant
Douglas C. Nelson, MAI
1315 Pinnacle Pines Court
Bettendorf. Iowa 52T22-9291
Voice & fax 563-344-6775
E-MAIL. dougnelsonmai~'~aj,,mchsi.cam
September 6, 2007
City of Dubuque
City Hall
50 West 13th Street
Dubuque, Iowa 52001.
Dear City:
As requested, I have prepared an appraisal of the Bradley property located at 10719 '
Merlin Lane, Dubuque, Iowa. The appraisal values the fee simple interest in all of
the real property at this address. The following report describes the property, its
environs, and the support for the value opinion. That opinion is subject to the '
assumptions and limiting conditions found on page xvii.
The market value of the appraised property is $809,000.
Very truly yours,
/~~~r`-~
Douglas C. elson, MAI
cjc .
10719 Merlin Lane, Dubuque, lotiva
Table of Contents
Introduction
Title Page ................................................. i
Letter of Transmittal ........................................ ii
Table of Contents ........................................... iii
Appraiser's Certification ..................................... iv
Supplemental Certification Statements .......................... ~~
Surnmar}~ of Important Facts and Conclusions ..................... vi
Photographs of Subject Property ............................... vii
Assumptions and Limiting Conditions ........................... xvii
Scope of the Appraisal ....................................... xviii
Purpose of the Appraisal ....................... . ............. xviii
Client and Intended User ........................ . ............ xviii
Properh' Rights Appraised .................................... xviii
Definition of Market Value ..... . ............................. xix
Summary of Appraisal Problem. ................................ xix
Factual Data
Legal Description ........................................... 1
Dubuque Area Map ......................................... 2
Market Area Data .................
Aeria} Vie«- of Propert}• ...................................... 4
Property Data .............................................. ~
Site Sketch ................................................ 7
Improvements ............................................. 8
Property Histor}= ............................................ 10
Assessed Value and Property Taxes ............................. 10
Zoning ................................................... l0
Data Analysis and Conclusions
Highest and Best Use ........................................ II
Comparable Land Sales ...................................... l2
Propert}= Valuation ......................................... 14
Exhibits and Addenda
Sales Location Maps ........................................ 16
Land Sales Description Sheets ................................. 1 &
Plat of Sur~~ey ............................. . ... . . ........... 40
Flood Hazard Map .......................................... 42
FSA Map ................................................. 43
Farm Record .............................................. 44
Qualifications of the Appraiser ................................ 4~
douglas C. Nelson, MRI, Bettendorf, Iowa Table of Contents iii
rrr
CERTIFICATE OF APPRAISER
us Oepprtrrsenr ~ Tiansporlrfpn
~Wrol AviaftOn AdminislroNon
Airport Argect Number Parcel No.
Ob513-02-00 Bradley
Dubuque Regional Airport _.... _-.
Prgectt.ocabon
Dubu ire Iowa
I hereby cettiy:
That on _...._._...._.._..___. (dated (s), I persorsatly mace a fie'C inspectan of the property herein appraised and that :have
afforded the property owner me apportunffy to accompany me at the time d inspectan. I have also personally made a fiekf ~ of the comparattle sales retied
upon in matting said appraisal. The subject and the comparaole sales relied upon in making said appraisal were as represented by the anotographs contained to
said appraisal or ih the data book ar report mat supplements the appraisal.
That b me best of my knowledge and belief tl:e statements contained in me appraisal attached hereto are true and the intormabon conta Wed therein upon which
the opinion d value expressed be~ow is based is correct, suolect to the lim8ing conditions set forth in the apps sal.
That 1 undet5tand IhiS market vakre appraisal is to he used rn canneclion w~h tlse atxatasition of land fOr an airport protect by _ . .............__ _.
-~ __ _ ___._ mm the ass+stance of FAp funds or other Federal fiutds.
That such appraisal has been !Wade in conformity with the appropriate Stale taws, regulaions, pdices, arai ~ocedr,res applicable :o appraisal d land fo• such
purposes, ark that ro the best d my knowlerkle nn portinn of the value assir~sed ro such property consists of items which are noncompensab~ under the established
taw of sad Sate.
That any decrease or rncrease in the fair market value d rear property prior to the Cate of valuation caused by the public irnprovement for which such prcperry
is acquired or by the tikefihood that the property would be acquired fa suds insprovement, other than that Cue to physical deterioration within reasonable contro
of the owner, has txen disregarded "m determining the compersatiort i~ the property.
Thai neither my err~loyrnent rmr my campensatims for makirg this appraisal are in any way Comingent upon me values reported herein.
That t have no direct or indirect, present or cernemplated, tubue persona. ingest in such property or in any benefit from the acqust~n of such prOOESrty appraised,
That l have rro! reveat~ the tind~ngs and resuhs d such appraisal to anyone other man ttte proper oftiCials of me acquiring ageht:y of said Airport or officials
d the Feceral Aviation Administration and I will not do so until so authorized b1` said oticia~s. or until I em required to do so by due process of haw, or until I am
released IrtMts this obirgabor by hawng p;bticly testyied as to such tindings.
That Ills conclusion set forth in this appraisal is trry rdependent opinion of tl>e value of the property as of the _,_ 6th day of S~etnbe t_...
19 ,~.0 Q Viand that such conclusion was reached wdtsoul coaatmration or direction as to vale.
Ii is my opinion mat me fair market value dt me above captioned real property is as kollows:
Vatue before acgir~tbn $ ~_
Value alter acquisitxxs $ p
Value didarenee $ _~9_...-d~_
The property has been appraised for its fair market vak,e as enough owned in lee smote. or as encumbered only ~ the existing easement in favor d ,_
The o{vnron of value expressed above is the result of and is s:mject to the data and con~tions desCribetl m detail m mis report of pages.
Darootcontracl T71TP 9b~1t7i77
Typed name
/~
Signature L.
Date Rost-omhnr Fi_~_2.Q0?
Note. -Other statements. required by Ilse regulations of an appraisal organ¢ation of whim the appraser is a member pr
by arctvtssmtx;es connected with the appraisal assignment or me prepardion of the apps-sat, may be inserted wtmre appropriate.
rrw rprm O7VU-777 tz~sy ~uperSeOeS IAA Norm 5100-41 NSN: 0052-t30-913.8(300
1}tl.S. GOYER9ttENT PQJNTFNG 4ffICE: t9?4 - 30t-14fi1ta236
10719 Merlin Lane, Dubuque, Iowa
Supplemental Certification Statements
I certif}• that, to the best of my kno~3ledge and belief:
1. The reported analyses, opinions, and conclusions are limited onl} by the reported assump-
tionsand limiting conditions, and are my personal, impartial, and unbiased professional
analyses, opinions, and canclusions.
?. I have na bias with respect to the propert}~ that is the subject of this report or to the parties
involved with this assignment.
3. tit}• compensation for completing this assignment is not contingent upon the de~~~elopment or
reporting of a predetermined value or direction in value that favors the cause of the client,
the amount of the value opinion, the attainment of a stipulated result, ar the occurrence of a
subsequent event directly related. to the intended use ofthis appraisal.
=~. The reported analyses, opinions, and conclusions were developed, and this report has been
prepared, in confannih with the requirements of the Cade of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraise! Institute, ~~•hich include the
L~~tifc~rin .Sta»clcrrcls pf Prcffesslr~~ral At~l~rcristrl Practice.
~. The use ofthis report is subject to the requirements of the Appraisal Enstirirte relating to
review by its duly authorised representatives.
6. I have made a personal inspection of the property that is the subject ofthis report.
7. As of the date ofthis report, I have completed the requirements under the continuing
education program of the Appraisal Institute.
8, The list of personal and real property ivas agreed to by the property owners, bath appraisers,
and the negotiator on the December (?, 2006.
Douglas C. Nelson, MAI; Bettendorf, (owe Introduction v
10719 Merlin Lane, Dubuque, Iowa
Summary of Important Facts and Conclusions
Report T}jpe Self Contained
Date of Value September 6, ?007
Propem- Type Dain~ farm ~i°ith de~~elapment potential
Propem}- Rights Appraised Fee Simple
O~~ners Ronald Bradley, Brian Bradley, Jeffre} $radley
Occupants Brian Bradley and family
Site Data 105.847 Acres including road
104.441 Acres net
Zoning R-2, Residential, The County Camprehensi~~e
Alan identifies for industrial use
Impro~~ements Farm hawse and full set of buildings including
neti+-er dairy barn and machine shed
Highest and Best t~se Im~estment holding pending additional gro~~~th
and deti=elopment along US 61. A dairy or ro~v
crap farm operation «~auld continue as an
interim use.
il~larket Value
$809,000 t$7,750lacre at 104.44 acres)
Douglas C. Nelson, MAI, Bettendorf, Iowa Introduction vi
10719 Merlin Lane, Dubuque, Iowa
Assumptions and Limiting Conditions
The estimates and conclusions in this report are subject to certain assumptions concern-
ing the accuracy and necessity of data. reliability of the sources of that data, and the uses
to which this report is put. These assumptions are as foIloivs:
1. The le~~al description and land area calculations are assumed to be correct.
2. I assume no responsibility for matters legal in character nor do I render any opinion
as to the title, which is presumed to be fee simple and merchantable.
3. I believe that the information included in this report that was furnished me by others
is con•ect and from reliable sources, but I assume no responsibility for its accuracy.
4. Possession of this report. or a copy thereof, does not carry «°ith it the right of publi-
cation, nor tray it be used for any purpose by anyone but the appraiser without the
previous written consent of the appraiser and. in any event, onl}° a ith proper quali-
fications.
~. I am not required to gig e testimony or attendance in court by reason of this appraisal
with reference to the property under appraisement unless an•angements have been
previously made.
6. Neither all nor an} part of the cuntents of this report shall be conveyed to the public
through advertising, public relations. new°s, sales. or other media without the written
consent and approval of the author. particularly as to the valuation conclusions, the
identin• of the appraiser. or any reference to the Appraisal Institute.
7. Your appraiser is not an environmental eaperl and makes no claim or warranty about
the environmental condition of the appraised propcrt}'. It is assumed to not have any
en~~ironmental hazards that affect market value.
Douglas C. Nelson, MAI, Bettendorf, Iowa Introduction xvii
10719 Merlin Lane, Dubuque, Iowa
Scope of the Appraisal
The property is an operating dairy farm in the path of Dubuque's grouTh. T'he property
was inspected on December 12, 2006. A second on-site intet•s~ieta 4vith Brian Bradley
~~-as completed on August 2d, ?007. The market area was researched for comparable
sales in December of 2006 and August of 2007. The research included rural farms,
some with improvements. Also researched were nearby parcels that have been
purchased for current or future development.
"T'he data research focused on three recent and nearby auction sales and three somewhat
older sales along the US 61 corridor. Tt~~o of the auction sales have not closed. I
continued ~~-ith the auctioneer their high probabilit}~ of closing. I attended the most
current auction sale which is located one mile east of subject.
Using these six sales, a value conclusion is developed for subject. Since the existing
dairy farnt and or grain farthing is likely to continue here as an interim use, the existing
improvements are considered to have contributotl value. However. their remaining
economic life is limited.
Purpose of the Appraisal
The purpose of this appraisal is to estimate the market value of the defined property.
The Dubuque Regional Airport will acquire the property for expansion.
Client and Intended User
The client and intended user is the City of Dubuque.
Property Rights Appraised
This appraisal values the fee simple interest in the property. Fee simple is defined as
Absolute ownership unencumbered b} any other interest or estate. subject only to the
limitations imposed by the ~o~ernmental powers of taxation. eminent domain, police
power, and escheat.''
"The Dietiot~ary' nfRecrl E.ctate.=lppi•crisnl, 4th Ldition, Appraisal Institute, ?002.
p. 113.
Douglas C. Nelson, MAI, Bettendorf, Iowa Introduction xviii
10719 Merlin Lane, Dubuque, Iowa
Definition of Market Value
Market value is def ned as:
"The cash price which would be arrived ai beriveen a voluntan seller willing but not compelled
to sell and a voluntary pw-chaser willing but not compelled to buy, both of wham are acting
freely, intelligently and at arm's length, bareaining in the open market for the sale and purchase
of the real estate in question. Such term does not mean the value under peculiar circumstances
where greater than its fair price cauld he abtaiued, nor does it mean the price, which the
property would bring at a farced sale. It does not mean what the property is warth to the
plaintiff nar what the defendant can afford to pay. but ~tihat it is fairly worth in cash in the open
market, as stated above.""
Summary of the Appraisal Problem
The appraisal problem is estimating the market value of this property, which is in a
~~rawing area of Dubuque. The most Iikeh• buyer is an imrestor ar developer. Their
actions and thinking are best measured using the sales comparison approach. The cast
approach has little meaning since the existing improvements have a relatively short
remaining economic life. 17te typical bu} er would not use this inethad. The property
would not be purchased far its income potential and an income approach would not he
used by the typical buyer.
'' Iowa Uniform Jury Instniction No. 1=F.4
Douglas C. Nelson, MAI, Bettendorf, Iowa Introduction xix
10719 Merlin Lane, Dubuque, Iowa
Legal Description
At the Addendum is a copy of a plat from a current surve}'. That plat includes a legal
description.
Douglas C. Nelson, MAI, Bettendorf, Iowa Legal Description
•2-
Market Area Map
10719 Merlin Lane, Dubuque, Iowa
Market Area Data
wa. est es o eas owa, ~ is a
trade center for Northwest Illinois and Southwest Wisconsin. The following chart
summarizes population and income trends and projections within a fifteen mile radius
of the city.
Item 2000 2006 2011
Population 94,97 97,472 98,969
Median House-
hold Income $39,9b7 $48,222 $55,849
The number of people employed has grown in this decade from about 47,500 to 52,700.
The unemployment rate is 2.9%. As a result, there is an active and appreciating real
estate market .
On the opposite page is an area map. Much of the commercial development has
occurred along US 20 west of Dubuque towards the communities of Asbury and Peosta.
Residential development has occurred throughout the metro area. The city has also
aggressively promoted the regional airport, which has an industrial park and an aviation
school..
Currently, the city is planning a Southwest Arterial connecting Highway 20 near Seippel
Road (site of significant growth) south to the north side of the US 61/151 intersection.
This project is one of the highest priorities of the city. This project has had a significant
positive impact on real estate activity and values in subject's neighborhood.
In summary, subject's value has been enhanced by its location in a community that has
been growing. The immediate neighborhood has seen additional appreciation in
anticipation of the Southwest Arterial and the growth that connector promises.
--
uglas C. Nelson, MAI, Bettendorf, Iowa Market Area Data 3
-4-
Aerial dew
10719 Merlin Lane, Dubuque, Iowa
Property Data
n t e opposite page is an aerta view o t e appraise property. ar ter to the report
are conventional photographs of the land and its improvements. The property is located
at the northwest corner of US Highway 61 and Merlin Lane. It has a Dubuque address
but is outside the city limits. The farmstead and buildings are located near the
northwest corner of the property.
Access, Topography, Utilities
Access is from Merlin Lane, a county gravel road. Highway 61 is a four-lane highway
providing good connections north to the urban part of Dubuque. The average daily
traffic count on Highway 61 is 7,600.
The site is rolling with the soil map showing with about half the land at 9% to 14%
slopes. Land elevations vary from about 1,300' msl at the highest points to 1,000' msl
along the two drainage- ways. One of these drains east to west and is north of the
farmstead. The second runs from Merlin Lane northwest, west of the farmstead. At the
Addendum is a Flood Hazards Map showing that the east/west drainage-way is an
identified flood hazard.
Available utilities are electricity and telephone.
Fertility
# of CSR
Soil # Tvne CSR Acres Points
162 D2 Dawns silt loam 9-14°fo slopes moderately eroded 63 27.4 1,726.2
162 D Downs silt loam 9-17% slopes 65 21.2 1,278.0
120 C Tama silt loam 5-9% slopes 80 17.6 1,408.0
162 C Downs silt loam 5-9% slopes 75 12.6 945.0
129 B Chaseburg-Arenzville silt loam 0-5% slopes 63 i 2.2 768.6
183 E2 Dubuque silt loam, 20" to 30" to limestone, 5 10.8 X4.0
14-18% slopes
183 D Dubuque silt loam, 20" to 30" limestone, 19 2.2 41.8
9-14°lo slopes
Totals 104 6,321.6
Average CSR = 61. The Assessor's G 1 S website has an
average CSR of b0.
At the Addendum is a copy of the Farm Service Agency (FSA}aerial map along.with a
copy of the farm record.. It shows nearly 44 crop acres. All but 12 acres are in fields
designated highly erodable. A conservation system is in place. The owners report there
are field tile. Just north of the farmstead is a pasture. Last year, the Bradleys reported
corn yields of 200 bushels per acre and bean yields of 60 bushels per acre.
Douglas C. Nelson, MAI, Bettendort, Iowa Property Data 5
10719 Merlin Lane, Dubuque, Iowa
Easements
v~
__
and it does not show any existing avigation easements.
Fences
The north, northeast, and west property lines have chain Iink fencing installed by the
Dubuque Regional Airport. There is no fencing along Merlin Lane or US 61. The
pasture north of the farmstead has an electric, barbed wire, and wooden fence.
Douglas C. Nelson, MAI, Bettendorf, Iowa Property Data 6
.7.
Building Sketch
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10719 Merlin Lane, Rubuque, Iowa
Improvements
n t e opposite page ~s a s etc o the farmstead locating the buildings and showing some of
their dimensions. It is not to scale and is not a survey.
House
This is a two-story frame building with partial basement. It has about 2,1 12 SF of living area.
The first floor has LR, DR area, FR, 1 & 31., baths, kitchen, mud room. The second floor has
three bedrooms. The roof is about 8 years old. The LP gas furnace and CAC was installed
about 2001. The interior was also remodeled several years ago. Windows include both original
wooden double hung with aluminum stones and modern double glazed, double hung. The
exterior has aluminum siding, a covered porch, and open deck. Overall condition is below
average.
Wells and Septic
There are two wells. One was drilled about 1988 and is 160' deep. T;~e other is about 125'
deep. They are adequate for the house and a dairy operation. Since the farm produces Crrade A
milk, the wells are tested monthly. The septic field is adequately separated from the wells.
Machine Shed East of House
29' x 70'. Poured concrete and concrete block footings, dirt floor, wand frame, corrugated
metal siding and roof, no utilities (formerly had electricity). Fair condition.
Calf Barn
25' x 37'. Concrete foundation, concrete floor and pens, wood frame, plywood walls and
ceilings, metal siding, asphalt shingle roof, electric heat, exhaust fans, water, attic is a hay lofl:.
Average condition.
Machine Shed
SO' x l00'. Built 1977. Pole-frame building 4vith dirt floor, electricity, sliding doors, 14'
eaves. Good condition.
Grain Bins
There are two 5,000-bushel and one 15,000-bushel metal bins. The larger one has a dryer. The
two smaller ones have fans.
Cattle Sheds
30' x 50', 22' x 51', 22' x 75'. Concrete foundations, wood frame and part woad siding,
mostly metal siding, metal roofs, electricity and ~+~ater. T~vo older, one built 1973.
Douglas C. Nelson, MAI, Bettendorf, Iowa Improvements 8
10719 Merlin Lane, Dubuque, Iowa
Silos
2l' x 59'. Glass-lined silo no4v used to store grain, built 1973. Two concrete-stave silos,. l4' x
40' and l 6' x 4~ ', old and no longer used.
Bank Barn
36' x 9b' plus a 24' x 32' addition on west end. Concrete footing and floor, wood frame and
Brood siding with asphalt shingled roof. )exterior condition is fair. The lower level is lined and
improved as part of the dairy operation with milk stalls, lights, heat, ventilation, water, and
manure management system. The Taft includes hay storage and part of the feed system.
Modern Dairy Barn
36' x 72'. Built in 1998, Concrete faotings, floor, and knee watts, manure management system
with 450' of chain, head unit and auger, wood framing, metal siding and roof, plywood liner
above the concrete walls, metal ceiling. Between the modern dairy barn and the part in the bank
barn there is room for 87 cotivs.
Additional Improvements
North of the barns is a concrete paved feed lot with food bunks. The gravel drive from Merlin
Lane is about 2,000' long. Condition is good.
Fixtures
The real property includes the cow stands in the milking facility, the manure management
system in the barn, and the grain bins. .
The following fixtures are not included as real property and therefore are not valued in this
appraisal:
Milking Units
Automatic Washing System
Milk Tank
Heater in Milk Tank room
Compressor
Vacuum Pump
3" stainless steel pipes to carry raw milk to tank
~" PVC vacuum pipe adjacent to stainless pipe
Hay & silage
Grain in grain bins
24 calf huts
Alt farm machinery & tools in machine shed
Douglas C. Nelson, MAI, Bettendorf, Iowa Improvements 9
10719 Merlin Lane, Dubuque, Iowa
Property History
3
was a family sale of this faun and others of a 2i3 interest from Merlin and Dorothy
Bradley to Brian Bradle}r and Jeffrey Bradley as tenants in common. The price was
$270,000. This implies a total value of $405,000 for about 305 acres with a number of
improvements. This is a family sale and does not reflect market value.
According to the Bradleys, the property has not been marketed for sale for the last three
years.
Assessed Value and Property Taxes
The property is assessed in four parcels. These total 103.03 acres. The current survey
shows 104.441 acres. This figure is used in the value estimate. In Iowa, farm land and
building assessments are based upon productivity, and the house is assessed at market
value. When computing taxable value, the residence value is "rolled back" based upon a
state factor. As a result of these procedures, the assessed value is not an indicator of
market value.
Land $ 67,504
House 76,000
Buildings 80.560
Total Assessment $224,064 - 2007
Taxable Value $187,697 - 200b
Taxes $ 5,140 - 2006, payable `07!'08
Zoning
The property is subject to county zoning. The current classification is "R-2," Single
Family Residential District. Permitted uses include single family, churches, government
and cultural uses, schools, parks, utility substations, and recreation uses.
Much of the land in atwo-mile arc around the city of Dubuque was designated "R-2"
many years ago. The existing farm use was grandfathered in. In recent years, this has
been a great benefit to some land owners as their property has seen a change in use to
residential.
Subject's current zoning and possible uses 1~jere discussed urith the county zoning
office. It is first noted that the Comprehensive Plan designates this location for
industrial use. It is also noted the city has created their own commercial and industrial
development districts at the airport.
Rezoning of subject to some mix of commercial and industrial use would be consistent
with the adjacent airport property and the Comprehensive Plan.
Douglas C. Nelson, MAI, Bettendorf, Iowa Property History/Assessed Value/Zoning 10
10719 Merlin Lane, Dubuque, Iowa
Highest and Best Use
ig es an es use ~s e me as o aws:
Highest and best use is the utilization of the property to its best and most profitable use.
It is the use, chosen from among reasonably probable and financially feasible alternative
uses which is found to be physically practical, legally acceptable, and which results in
the highest present value, as defined, as of the effective date of appraisal. Where the
Highest and Best Use is considered to be for development land, together supported
absorption period for the subject.''
The highest and best use of this property is investment holding pending future
development. That development is most likely to be commercial or industrial. As an
interim use, the property will continue to be used as a farm. This could he either the
current dairy operation. or a grain operation.
'~ Iowa Civil Jury Instructions 2500.15; Dolezal v. City of Cedar Rapids, 209 N.W. 2d
84 (Iowa 1973}; Jones v. Iowa State Highway Commission, 259 Iowa 61 b, 144 N.W. 2d
277 (1966)
Douglas C. Nelson, MAI, Bettendorf, Iowa Highest and Best Use 11
-12-
Land Sales Analysis Table
10719 Merlin Lane, Dubuque, Iowa
Analysis Table
Cale # Pnce/
Acre Conditions
of SAIe Market
Cond~ttons
Size
Locatton
Improvements Overall
IZHtm$ Indicated
Value
1
~.:
fi
g2
rr~,l.,r,
~ ~
''
E"tii'Ctini
t11i1~
~
]r~fi~c~~,
R~tt~ar`Ra.s
~
` ~_..
~ ;
{ litfirlur ~
i $7,75?
~
~.
,~
; 1Ft
f0~'11 v
T3
~, +lU"~,
}
2 6
150 Similar Current Similar Inferior Inferior Inferior 7,688
, +25%
h
lUb
~uzular
torrent
Smi,l~r
5utu]:u
lufenor lot~nor , .;
7
4..:
,
r ,., ;~.
a
>:< ,
4 8,115 Exchange Inferior 5 times larger Superior Similar Value Similar 8,115
~ ,..
,5 70x~
Sitriilu
I .k.,
Jnt~tior
Similar
Sn~crii>r
e
.. z
Intcn~r
Inh;nar
: Z~,
,_ ~,.
7.]~8`
6 5
019 Similar ~ Inferior I Similar Similaz Superior I+25 / 6
274
, ,
12 Analysis Table Douglas C. Nelson, MAI, l3ettendorf, Iowa
-13-
Land Sales
10719 Merlin Lane, Dubuque, Iowa
Comparable Land Sales
...
3
-.
.ACYC. a
[".fICLI ~
~YCrIi~L'
T ~
~
.., I,o p~~ ~ lucre ~ Y
C'~" llarlr>_,,,~.~--s,~r-e~nlti,
Subject:
10719 Merlin Lane 9/07 104.44 60 Dairy
Dubuque
,.:.
1 h3trfln+d° l7uvtol'ii~11 Rchid
~ SuU"r
7`~II
~1
1"+~
ltil "
37,u~$ ~
r;~
~ f-iouse~~Buzl~~ti "
1;aASu6tc llli~7 ,
, ..._
` I OUOU 13iix k of Rt. ~~ S~,ildi d'C'7
;7n,311i
<Il.lO
~,.1>U
~~U- nk
Unuuproved
l~ubuyuc ~'~'
i
3 ~
'~)«>lj Ccuterv~lle fii~ad ~
2~?(t7
~h~ ~~FT
1~~ ~
h,lilCi
?7
1.lvuse&13aILrJin~s
t.:~viatte e~ n l~ztl7 :. i
4 9491 Olde Davenport Road 5/06 4,500,092 554.53 8,115 49 House & Building
Dubuque
~ H(195 ~Irt~~ts~•Lita~'f',
~ c ., -
fi'k3~5
'4 ~~QC1!7
1,h3 Sn
~ 7(l~i
~7 I
iti~a ~'aluc
,:: t
T,lubuque
.k'
... .:rw:..~
6 9043 Olde Davenport Road 5/OS 523,600 104.32 5,019 43 House & Building
Dubuque
13 Comparable Land Sales Douglas C. Nelson, MAI, Betlendorf, Iowa
10719 N1erGn Lane, Dubuque, iawa
Property Valuation
As cliseussed at the Surnnrary of the Appraisal Problem, the orrl~~ applicable v<rlue
approach is the sales comparison method. Summarized on opposite }ages are si.r-
comparable land sales and an ana(vsis table. At the Addendum are ]t~cation maps, alone
with complete descriptions and photographs of each transaction. All were confirmed
with the buyer or seller or their representatit-e.
The unit of comparison is price per acre. The elerrierits ofcomparison are conditions of
sale, market conditions,. propert~° size. location, and improvements. The elements of
comparison are discussed and analyzed on a qualitative basis. Based upon this analysis,
an overall rating and percentage adjustment is applied to each sale. The percentages are
l0~`o if the overall dif~erenee is considered minor and 25° a if the overall dii~erence is
signiticant.
It is noted that the land market has seen stronL= appreciation over the last two years.
Sale C, at 90=1} Olde Davenport Road sold for $5,019 per acre in'~~lay of 2005. Sale 1,
which was auctioned on August 29th and is located at 6359 Olde Davenport. Road sold
for 57,0=15 per acre. Vdhile there are differences between the t~vo properties, the overall
change (~10°•'o in 27 ntortths} does sf~ou- lto~v strongly this market has appreciated.
Sale 1 just occurred. This property is one mile east of subject at the carver aftwo paved
roads It ~~-as an auction sale and is scheduled to close by'\avember 30, 2007. The
buyer is confirmed as having the financial strengnh to close the transaction. The farm
~~-as split into t~~•o parcels at the auction. The improved half brought $7,750 per acre.
The unimproved halfbrou`,ht SG,320. The same buyer bou~~ttt bath parcels.
The CSR rating= is similar to subject's. The improvements are inferior to subject for
dairy operations but have more appeal to an acreage buyer. Subject's location an liS G1
is more desirable for long-terra development potential. Overall, this requires a + 10° o
adjustment for an indicated ~•ahre of $7,752,
Sale 2 was auctioned in April and closed August 30th of this year. Tl3ere are r~o
improvements. It is on the .vest side of US 52 about four rr~iles northeast ol~subject.
About 25 acres of the site are wooded hillside, and the balance is crop land that is
currently in a CRP pro~~ram. The buyer was the south neighbor. There is limited access
to this site. Compared to subject. this sale is significantly inferior and requires a X25°a
overall adjustment for an indicated value of~S7,6SS per acre.
Douglas C. t~lelson, Iv1Al, Bettendorf, fovea Property lfaluation 14
10719 Merlin Lane, Dubuque, Iowa
Sale 3 uyas auctioned .locust 10, ?007 and is sclleduted to close by October 30 of this
}year. 1'he buyer is coi~tirmed to have the financial abitit}- to close the transaction. This
property is just .vest of St. Donates. St. Donates is about 7 miles southeast of subject in
Jackson County°. 71~is parcel is one of three parcels Bald that day. The other t~vo are
l~=ooded tracts. They e~~ere acquired by the same bui-cr.
This property's CSR is superior to subject. The improvements are inferior Far farm or
dairy operations. Their residential appeal ~~as not estimated. The location is mare rural
than suI?ject. Overall, this sale requires a -2~ ;j° adjustment far an indicated value of
$7,6?5 per acre.
Sale ~ occurred sixteen months. 'I"his is an exceptionally large parcel located along the
east side of US 61, two miles north of subject, and also at the southwest corner of LtS 6l
and l ~ 1, ane-half mile north of subject. The buyer was a ~~ealthy im~estar originally
from Dubuque and looking far a 103 I I xchange. Improvements included an old house
and set of buildings that offer goad residential potential_ The land is well located far
residential and fuhire commercial del°elapment. After consideration of all relevant
factors, this sale is considered similar to slightly superior to subject. ~~o overall
adjustment is needed. It sold far 58.115 per acre.
Sale ~ is located at the southeasfi gt~adr~u~t of the intersection of U`S 6 } and US 1 ~ 1. It is
a June 2005, sale. The market has strong}}• appreciated since then. There eras an old set
of improvements that the buyer is demolishing. A residential subdivision has been
platted here and detiFelopment should commence short]}~. Overall. this sale is considered
sicnificantty inferior to subject and requires a 25% pasizive adjustmetlt. Its indicated
value is 57,138 per acre.
Sale 6 is ratting hillside land off of old Davenport Raad two miles north of subject. It
is a May 2005 sale. after the sale. the buyers resold the house and. 1 acre for 5l SG,000.
Access to this property is Less than ideal. It dies have a good view amenity. The buyers
are no1~• asking $10,000 per acre. Overall, this sale requires a 25°fo positive adjustment
for an indicated value of 56.27 per acre.
Sale l is the most cur-~•ent. It is also the nearest of the three current sales. Its value
indication is given much ~ti•eight. The other current sales (? and 3 j support a value
conclusion similar to sale I. Sale ~ has the most desirable Land far future development
in this corridor. Its sales price of 58.1. I ~ per acre brackets the current sales and their
value indications. Sales ~ and 6 ace 2005 sates and are giti°en less consideration.
On this basis it is your appraiser's opinion that the market value of this property is
57,730 per acre ar 5808,000.
10-I.~~1 acres at 57,750%:Acre = 5808.000 (rounded}
Douglas C. Nelsan, MAI, Bettendort, Iowa Property Valuation 15