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HomeMy WebLinkAboutIV.B - Contract for Market Value Appraisal 1400 Fifth Street Towers 150 South 5th Street Minneapolis, Minnesota 55402 Phone: 612-466-7300 Fax: 612-466-7319 RLS Mobile: 612-819-0529 August 27, 2025 Alex Menke Economic Development Coordinator City of Hastings City Hall 101 4th Street East Hastings, Minnesota 55033 Re: Proposal/Contract for Market Value Appraisal Services Deport Park and Parking Lot Property City Block Bound by 2nd St. E., Tyler St., 3rd St. E., and Depot & Railroad Corridor Hastings, Minnesota 55033 Dear Alex Menke: Thank you for considering TaTonka Real Estate Advisors, Inc. | RLS Valuation, Inc., regarding the matter referenced above. This letter serves as a proposal and contract for us to perform fee simple market value appraisals of the Depot Park site and the Depot Parking Lot parcel, as well as a leased fee interest appraisal in the Depot Parking Lot parcel, referenced above and as described in our email correspondence pertaining to this assignment. Our findings and conclusions of these three different appraisals will be provided to you in one written appraisal report that will be reliable and credible for its intended use, which is for possible disposition purposes. The intended users of this report will be the client (the City of Hastings) and its agents and/or representatives. No other uses of this appraisal are intended by the appraiser, and no other users of the ensuing report are intended by the appraiser. As discussed in our earlier email correspondence, our fee to complete this work and provide you with this appraisal report will not exceed $5,200.00. This report will be submitted to you within 30 days of the date of this letter, assuming a prompt reply executing this contract letter and payment of the retainer discussed on the following page. Alex Menke August 27, 2025 Page 2 We note the fee quoted above contemplates that these property valuations will be based on a direct sales comparison approach for the fee simple analyses and both the sales comparison and income capitalization approaches for the leased fee appraisal. They will also assume there are no adverse environmental issues present and no issues with the condition of the improvements found on the property. A document and property information request checklist is attached to this letter. This appraisal assignment and the resulting report will be performed in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation. They will also conform to the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute (MAI). A retainer of half the appraisal fee (or $2,600.00), made out to TaTonka Real Estate Advisors, is required to engage the appraiser on this assignment. The remainder of the fee will be billed out upon completion of the appraisal report, and payment of this remaining fee will be required promptly at that time. An interest charge of 1.5% per month will be applied for any outstanding billing over 30 days that is not paid. Finally, we note the resulting appraisal report will be provided to you electronically in PDF form. If any hard copies of this report are required, they will be made available for a charge of $100.00 per report. Any other exhibits or time spent on this assignment needed after the report is submitted will also be billed additionally at appropriate rates. If you are in agreement with the terms and conditions of this proposal, please acknowledge by signing where indicated below and on the attached copy. Retain one copy for your files and send the other executed copy back to our attention as soon as possible along with the retainer mentioned above. Thank you for considering TaTonka Real Estate Advisors | RLS Valuation for your appraisal needs. We are looking forward to the prospect of serving you in this capacity and working with you on this assignment over the next few weeks. If you have any questions or comments on this proposal, please do not hesitate to call me at 612-819-0529, or send me an email at rls@tatonkare.com. Sincerely, TaTonka Real Estate | RLS Valuation AGREED AND ACCEPTED BY: _____ Rodger L. Skare, MAI CLIENT OR REPRESENTATIVE SIGNATURE Director of Appraisal Services _____________________________________________________ RLS / at PRINT NAME DATE Alex Menke August 27, 2025 Attachment DOCUMENT AND PROPERTY INFORMATION REQUEST CHECKLIST Listed below are items requested by the appraiser that would be helpful to have in advance of performing the valuation work. Some are not imperative. As mentioned, these items are for informational purposes only, and they will not be used to influence the appraiser in any way as to the value of the real estate as of the appraisal dates. Instead, they will be used to check on the research done by the appraiser and as a starting point for the valuations to be performed. • Copy of the existing lease or an abstract of the current rental information on the property. • A three-year history as of both appraisal dates of the expenses pertaining to the real estate only—if available (i.e., calendar years 2022, 2023 and 2024) and the budget for 2025. • A history of the replacement of major components in the improvements on the property over the past ten years (dates and costs, if available). • A list of any deferred maintenance believed to exist as of the appraisal dates and any cost estimates for their repair or replacement. • Current parking lot plans and/or a current site plan, if available. • Any old appraisal(s) you are willing to share* * Excerpts that show only the physical description sections of the appraisal(s) may be made available if the client does not want earlier value opinions by other appraisers to be known. Thank you.