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RECONCILIATION OF LAND VALUE (BEFORE ACQUISITION) <br />The comparables have been adjusted for their comparison to the subject property's characteristics before <br />acquisition. The sales were analyzed on a per square foot basis, which is typical of the market for single family <br />residential land in the subject's market area. The adjusted sales prices indicate a reasonable range in value for the <br />subject property of $2.94/Sq.Ft. to $5.27/Sq.Ft. with a mean of $4.18/Sq.Ft. and median of $4.46/Sq.Ft. <br />The comparable sales utilized in this analysis were all located within the City of Elk River in Sherburne County <br />and were the most comparable of those available. The sales occurred within the past +/- three years. A time <br />adjustment was applied to the sales at the rate of 0.55% per month, or 6.6% per year up to September 2019 based <br />on available market data. After that date, there was no market data to support further adjustments. <br />Due to limited availability of comparable vacant land sales in the market area, recent improved sales of comparable <br />sites were utilized in this analysis. The abstraction and allocation methods were utilized to estimate the <br />contributory site value from the overall sale price. Depreciated cost estimates from Marshall Valuation Service <br />and county assessor data were utilized to determine the contributory improvement values. <br />Economy of scale was also considered in the applied adjustments. Pairing the sales used, in addition to other <br />market data and county data, indicated an adjustment of 18% for each 50% difference in site size. Smaller sites <br />received a negative adjustment and vice versa based on the principle of diminishing return. No additional <br />adjustments were found to be necessary for the sales used. Qualitative adjustments were applied for comparison <br />purposes. <br />Comp # 1 is a recent vacant land sale located in southeast Elk River in a neighborhood of newer homes with a park. <br />This property has a non -corner location with similar zoning, utilities and views. A larger positive adjustment was <br />required for the larger site size; however, no additional adjustments were necessary. <br />Comp #2 is a recent vacant land sale located near the subject in south Elk River in an established neighborhood of <br />older homes like the subject. This property has a non -corner location with similar zoning, utilities and views. A <br />positive adjustment was required for the larger site size. This property was purchased by an adjoining landowner, <br />off the market, and set the low end of the value range. <br />Comp #3 is the most recent improved land sale and is located nearest to the subject two blocks west in the same <br />neighborhood as the subject. The property has a similar corner location on a well -traveled city street with similar <br />zoning and other similar features. A positive adjustment was required for the larger lot size; however, no <br />additional adjustments were necessary. The abstraction method was utilized to estimate the contributory site value <br />from the overall sale price. This is a good comparable sale. <br />Comp #4 is a recent improved land sale located near the subject +/- 7 blocks west in a neighborhood of newer <br />homes. The property has a non -corner location that backs up to TH 10, like the subject. This property has similar <br />zoning and other similar features. A positive adjustment was required for the larger lot size; however, no <br />additional adjustments were necessary. The allocation method was utilized to arrive at an estimated site value <br />from the improved sale price. This is a good comparable sale. <br />Comp #5 is a vacant land sale located on the west side of Elk River. This property has a cul-de-sac location in a <br />neighborhood of newer homes and larger sites. This site was the last remaining lot in the cul-de-sac. A large <br />positive adjustment was required for the larger site size; however, no additional adjustments were necessary. This <br />sale set the lower end of the value range. <br />Comp #6 is an older vacant land sale located near comp #1 in southeast Elk River in a neighborhood of newer <br />homes with a park. This property has a non -corner location with similar zoning, utilities and views and shares the <br />most similar lot size with the subject. A positive adjustment was required for the larger site size; however, no <br />additional adjustments were required. This is a good comparable sale. <br />S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 42 <br />