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<br />e <br /> <br />e <br /> <br />e <br /> <br />,. <br /> <br />12,000 to 15,000 square feet. This category illustrates the <br />potential of the subject if services are made available. <br /> <br />CATEGORY 3, no imminent potential for services <br /> <br />The third category consists of rural <br />near the subject that are larger, <br />further analysis we abandoned any <br />because they were not similar enough <br />a reliable comparison. <br /> <br />lot sales that we found <br />2.5 minimum acres. After <br />reliance on these sales <br />to the subject to provide <br /> <br />After completing the initial research we know that: <br /> <br />One acre lots, with future potential for city services, <br />sell for $16,500 per acre. <br /> <br />Fully developed 12,000 sq. ft. minimum building lots sell <br />for $24,500. <br /> <br />DEVELOPMENT COST APPROACH <br /> <br />The next phase of our analysis examines the thirteen subject <br />parcels as if they were one parcel of approximately 15. This <br />aspect of our analysis is important because it will tell us <br />what the raw land is worth toa developer today assuming that <br />it is developed to its highest and best use potential as fully <br />serviced 12,000 square foot lots. <br /> <br />This part of the analysis is conceptual in nature but uses <br />todays actual costs of development to determine raw land value. <br />Assumptions are made, based on actual costs and current market <br />information, and the cash flows from the project are discounted <br />to a present value. Developers use this method to determine <br />the feasibility of a potential project. This feasibility <br />study is examined in detail in our oral presentation. The <br />result of this approach to value is that today one could afford <br />to pay $38,517 per acre, or $12,719 per building lot at three <br />to an acre, and pay for all services including trunk line. <br /> <br />CONCLUSIONS, relative to each sub;ect parcel <br /> <br />Finally, we looked at each of the individual subject parcels <br />to determine their value, assuming that trunk line assessments <br />were paid at a rate of $3,800 per acre, with the potential to <br />become fully serviced properties in the future. <br /> <br />Using parcel number 75-131-1450, a.4 acre parcel belonging to <br />Larsen (Olson), as an example we find: <br /> <br />The cost to acquire this parcel today, based on the raw land <br />value determined in the development cost approach, is $12,719. <br />The trunk line assessment to this site will be $1,520. The <br />final cost for this site the~ is $12,719 plus $1,520 or <br />$14,239. <br /> <br />2 <br />