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DEVELOPMENT COST OF BUSINESS PARK <br /> . • Having concluded that the highest and best use of the subject <br /> site is development into platted business park use it follows <br /> that a more detailed study of the problem is warranted. <br /> The method of valuation which will be employed to estimate the <br /> present worth of the subject vacant land area is generally <br /> referred to as a Development Analysis, or sometimes also <br /> referred to as the Development Cost Approach to value. <br /> To apply this method, it is necessary for the appraiser to <br /> estimate: <br /> A: The type of development allowed by zoning and that which <br /> would have the greatest market demand in the local market. <br /> B: The physical layout, size and shape of the lots, and access <br /> which would fit the site. Included in this analysis would be <br /> the number or density of sites obtainable from the subject <br /> parcel while conforming to premise A above. <br /> C: The probable sale prices obtainable for the finished and <br /> platted sites. <br /> D: The amount of time required to market or sell off the sites <br /> in the local market place. <br /> • When these four factors have been estimated, the appraiser can <br /> project annual gross sales income during the development phase, <br /> deduct normal and typical development expenses, and discount <br /> the resulting net sale prices using a present worth factor to <br /> arrive at an estimated market value of the raw land as of the <br /> date of the appraisal. <br /> ANALYSIS OF SUBJECT SITE <br /> Suitability: The subject parcel has a total area of 34 acres <br /> which could be platted into a business park subdivision. No <br /> unusual site corrections would be needed before development can <br /> occur. <br /> Location: The location of the subject site along U.S. Highway <br /> 10 in the City of Elk River in a PUD area designated with light <br /> industrial land use makes this a prime development area for a <br /> Business Park. In the future city services will be available to <br /> the site as Sherburne County has requested city services at <br /> the earliest possible convenience from the City of Elk River <br /> for the government center located just north of the subject on <br /> U.S. Highway 10. The written request from Sherburne County is <br /> included in the addendum of this report. <br /> Site Characteristics: The site has enough acreage to <br /> • accommodate 11, 13 , or more lots and be able to meet the <br /> Business Park Ordinance minimum lot size of 1. 5 acres. <br /> 27 <br />