1981 HRAHOUSIPJG
and
r
^�, f_ ,:5, tie- ��>Ll� AUTHORITY
February z6, Ivul
Ed Jonak
133 Craig Way N.E.
Fridley, Mn 55432 Re: The Purchase of Property
at 5760 3rd Street N.E.
Dear Mr. Jonak:
As you know, your property is one of the sites selected for acquisition
by the Housing and Redevelopment Authority for the Large Family -Home Owner-
ship Program.
41e have had the property appraised by a competent and unbiased fee
appraiser and his report has been thoroughtly analyzed by a competent
in-Jependent review appraiser and found to be well supported. Based on the
appraisal and review. the City hereby makes you a firm offer in the amount
of 14,350.00 for the purchase of your property.
This purchase price is contingent upon your completion of the following
three actions:
1. Installation of water and sewer lines to the property. There is
presently no s--rvice to this lot.
2. The payment of park fees and any other fees or assessments placed
against the property. This means we want a clear title to the
property.
3. The removal of the power pole from the center of the lot to*the
proper easement. Any costs incurred is the responsibility of the
present owner(s).
We feel that the above offer is most equitable and we urge your favorable
consideration and acceptance of it. if this meets with your approval, we
will prepare an Act of Sale and will assist you in any way convenient to you
in finalizing the acquisition.
We would like to discuss this offer with you on Tuesday, March 3, 1581
at 3:30 p.m. If this time is not convenient with you, please call me to make
other arrangements.
Page 2 '
Purchase of Property at 5670 3rd Street N.E.
February 26, 1981
Thank you very much for your cooperation and favorable consideration
of this offer. If you have any further questions regarding this matter,
please feel free to call me at 571-3450.
Sincerely,
JERROLD L. SOARDt'.AN, Executive Director
Fridley Housing & Redevelopment Authority
JLB/de
cc: Virgil Herrick
i, John Flora
Mary Cayan
Lucille Skovwran
C-81-11
Enc:
S TEMENT OF THE BASIS FOR THE DETERMINATION OF JUST COMPENSATION
Description and Location of Property
The City of Fridley proposes to purchase land on 3rd Street N.E. (Lot
split off of the North 70 feet of Lots 4, 5, 6, Block 2, City View includes
all that part of 57 1/2 Avenue Northeast vacated in Ordinance 371, City View,.
Anoka County, Minnesota). from the owners Ed Jonak and Lucille Skovwran of
133 Craig Way N.E., Fridley, Minnesota and 6003 Gardena Circle N.E., Fridley,
Minnesota, respectively. The lots located at 5760 3rd Street N.E. are in
a residential area.
Purpose of the Purchase
The City of Fridley intends to use the parcel for the construction of Large
Family Ownership units.
Description of Improvements
Subject property is unimproved.
Declaration of Offer
Based on the appraisal, the City of Fridley hereby makes you an offer in
the amoung of $14,350.00 for the purchase of your property and does not include
any consideration of decrease or increase in value attributed to the project
for which it is being acquired. It reflects no relocation -payments which the
owner/tenant may be entitled to receive under the Department of Housing and
Urban Development regulations.
Definition of Fair Market Value
"Fair market value" is the highest price estimated in terms of money which
the property would bring if exposed for sale in the open market, allowing a
reasonable time in which to find a purchaser buying with knowledge of all the
uses and purposes for which it is adapted and for which it is capable of being
used.
Appraisal Techniques
One major technique, sales comparison approach, was utilized to determine
the fair market value of this property.
Correlation
The value estimates developed by three valuation approaches are as follows:
Estimate of value by Income approach Not applicable
Estimate of value by Sales Comparison Appoach $14,350.00
Estimate of value by Replacement Cost Appoach Not applicable
-1-
Correlation of Value Estimates
The Correlation phases of the appraisal process involves*a reevalution,
an analysis and finally a decision as to which estimates of value are the most
indicative of the actual market situation. The correlation is in no way, nor
should it ever be, an average of the results of the two or three approaches used
in the valuation process. Instead, the correlation is an evaluation and review
of each approach and subsequent weighing of the approaches with respect to their
reliability as a measure of value of the subject property.
Final Estimate of Value
The value opinion is the result of the conslusions reached in the correlation.
It is purely a subjective opinion based on data collected in the market and
modified by the appraiser's judgement. Although the final estimate of value
need not be equal to any one of the falue indicaters, it should fall within their
range.
Correlating the above Estimates of Value measured by the Cost, Income and
Market Date Approach to Value, the most probable indication of Market Value is
the amoung, $14,350.00.
FINAL ESTIMATE OF MARKET VALUE
-2-
$14,350.'00
:.vware.F M�C! -Nviaf a.K .
OC aeooB'f/ LF.A.S.•
React E6tate AppAaisen ®i
6279 UNIVERSITY AVENUE N.E.
MINNEAPOLIS, MN 55432 (612) 571-3857
CERTIFICATE OF APPRAISAL
I do hereby certify that I have personally examined the property de-
scribed in this appraisal report.
I further certify that I have no present or contemplated interest in
the property appraised, and that neither my employment nor the fee
therefor was in any manner contingent upon the estimate of value re-
ported.
I have assumed the title of the property to be good and merchantable
and in the appraisal have disregarded any liens, mortgages and all
other matters legal in nature;
That my fee for this appraisal is in no way contingent on a predeter-
mined value, nor is there any obligation on my part to testify in
court on any matter pertaining to this property unless special arrange-
ment is agreed upon for such testimony.
The possession of this report or any copy thereof does not imply the
right of publication, nor may the report be used by anyone but the
applicant without the consent of the appraiser.
Having made an appraisal of the property in conformity with the code
of Ethics of the National Association of Independent Fee Appraisers
and according to the methods and procedures prescribed by them, my
estimate of market value of the subject property, as of the date,
February 4, 1931, is the sum of:
FOUiII 1 7W)USAND THRM HUNDRED FIFTY DOLLARS
($14,350.00).
Independent Fee Appraiser
1. REVIEW APPRAISER'S REPORT
1. Donald A.'Hennessy, the undersigned, hereby certify that I have reviewed the appraisal
reports submitted to me and have made a personal on-site review of the. property listed
below. I further certify that all improvements, structures, appurtenances, the deter- .
urinations made as to various classes to types of real and personal property found therein,
i
as well as other elements of value thereon or thereunder, were appraised in accordance
with recognized appraisal practices and are factually correct. Exceptions are noted below.
Vacant lot at 571 Ave. N.E. and 3rd Ave. N.E., Fridley
Comments Appraisal dl: Curtis A. Larson •;14,350. (?1.50 sq. ft.)
The two principal differences, other than location, between this lot and the comparables
_provided are configuration and the cost of providing utilities. Both of these differences,
`' appear to have been adequately considered in the adjustments. I find the report care-
fully done and concur in the value judgement.
Legal: No. 70 ft. of lots 4,5,6, Block 2, City View; includes all that part of
57J Ave. Northeast vacated in ordinance 371, City View, Anoka County, Minn.
f
I
Comments Appraisal 92:
Based upon my reviewal of the appraisal reports and properties, it is my recc miendation
that offers he made as follows:
Identification Name F, Address of Owner
see above Lucille Skowran
Ed Jonak
• �kea�
2-13-81
to is
-off
r r I ♦ •:
Recommended Offer
$14,350.