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9614 10 <br /> <br />HIGHEST AND BEST US[: <br /> <br />Highest and best use is defined in The Dictionary of Real Estate Appraisal, Third Edition, <br />Appraisal Institute, at Page 171, as follows: <br /> <br />The reasonably probable and legal use of vacant land or an improved <br />property, which is physically possible, appropriately supported, financially <br />feasible, and that results in the highest value. The four criteria the highest <br />and best use must meet are legal permissibility, physical possibility, <br />financial feasibility, and maximum profitability. <br /> <br />This publication goes on to distinguish the highest and best use as vacant and as <br />improved, as follows: <br /> <br />Highest and best use of land or site as though vacant. Among all <br />reasonable, alternative uses, the use that yields the highest present land <br />value, after payments are made for labor, capital, and coordination. The <br />use of a property based on the assumption that the parcel of land is vacant <br />or can be made vacant by demolishing any improvements. <br /> <br /> Highest and best use of property as improved. The use that should be <br /> made of a property as it exists. An existing property should be renovated <br /> or retained as is so long as it continues to contribute to the total market <br />· value of the property, or until the return from a new improvement would <br />more than offset the cost of demolishing the existing building and <br />constructing a new one. <br /> <br />In order to determine highest and best use of the properties within the project area, as if <br />vacant and as improved. The following factors must be considered. They are: <br /> <br />1. Physically Possible <br />2. Legally Permissible <br />3. Financially Feasible <br />4. Maximally Productive <br /> <br />Patchin & Associates, Inc. <br /> <br />Valuation Consultants <br /> <br /> <br />