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9614 69 <br /> <br />SUMMATION <br /> <br />Based on our analysis of land sales contained in this report, we conclude to benefits in <br />the following amounts for trunk sewer and water. <br /> <br />Residential Lands <br />Industrial Lands <br />Commercial Lands <br /> <br />$6,000 Per Acre <br />$6,000 Per Acre <br />$8,000 Per Acre <br /> <br />The estimates of market benefit are very similar and supportive of one another. <br /> <br />The benefit analysis for residential lands was based on a study of land sales in Elk River. <br />This analysis was supported by an analysis of residential development land in Savage, <br />Minnesota. Both areas studied had a sufficient depth of data and indicated that <br />residential development land can bear reasonable assessments for trunk sewer and water <br />utilities. <br /> <br />The benefit analysis for industrial lands was based on a study of land sales in Elk River, <br />Ramsey and the Rogers area. These three studies involved more than 40 individual sales <br />and indicated an overall benefit for sewer and water served industrial land over unserved <br />land. We do, however, caution that this benefit is contingent on continued City of Elk <br />River involvement in marketing and developing industrial sites with buildings. Even <br />with City involvement, this benefit is limited to a small portion of the industrial zoned <br />land in the projected project area, approximately 60 acres. <br /> <br />Our analysis of commercial lands indicates that there exists a demand for and the price <br />premium for (sewer and water) served commercial lands and lots. We have concluded <br />that commercial lands can support sewer and water assessments which reflect a <br />reasonable cost of serving the land or site. In our analysis we conclude to a benefit of <br />$8,000 per acre. <br /> <br />These assessments should only be applied to lands which have a reasonable probability <br />of developing. Lands which do not have a reasonable probability, should either be <br />assessed in a differred manner or not assessed. <br /> <br />Patchin & Associates, Inc. <br /> <br />Valuation Consultants <br /> <br /> <br />