1. Abatement hrg/Kmart Corp. - Laserfiche WebLink

Abatements #4230 & #4231- Kmart Properties Located on 13th Avenue S & University Dr S 9 allowable expenses consist of a vacancy and credit loss allowance of five percent (5%), a management fee of three percent (3%) for the 13th Avenue property and five percent (5%) for the South University property, and major maintenance expense estimated at 10 cents per square foot of building area (with the exception of Burger King due to the apparent nature of the lease). It should be noted the Kmart Plaza Strip Center is apparently leased at $9.00 per square foot (with no expense data provided), Burger King is apparently a ground lease only, and the ATM lease information was not provided. In addition, the owner's income tax schedules were provided on the 13th Avenue S Kmart which were also analyzed with an allowance for major maintenance. Assessment Department Income Calculations (based on lease & market data) Store Size Rent/SF Gross Rent Ex-pense Inidcated Value Value/SF 13th Avenue S Kmart (1) 95,G96 $ 5.79 $ 550,390 $ 52;72G $ 4,794,500 $ stM2 (Based on Estimated Expenses) 13th Avenue S Kmart 95,096 $ 5.79 $ 550,390 $ 17,900 $ 5,130,000 $ 53.95 (Based on Owner's Income Tax Schedule) University Dr S Kmart Plaza (2) Kmart (3) 92,800 $ 4.00 $ 371,200 $ 45,470 $ 3,138,100 $ 33.82 Plaza Strip Center (4) 12,500 $ 6.00 $ 75,000 $ 8,560 $ 640,100 $ 51.21 Burger King (5) 4,169 $ 9.73 $ 40,560 $ 3,950 $ 352,700 $ 84.60 Fastbank ATM 60 Total Kmart Plaza 109,529 $ 4.44 $ 486,760 $ $7,980 $ 4, UO,9oo $ 37.72 (1) Existing Lease (2) Excludes A TM Income but Considers Building Area (3) Existing Lease (4) Estimated Rent Based on Lease Recap (5) Ground Lease The lease recap on the following page indicates a range in rents from $4.12 to $13.23 per square foot and a range in building size from 23,998 square feet to 130,000 square feet. The average rent is $7.26 per square foot and the average building size is 69,174 square feet. It is reasonable to assume the larger the building the lower the rents per square foot. It is also reasonable to assume that lease rates can be influenced by the location ... the better business locations will command higher rents. Based on the lease information as recapped, as well as the lease information provided by the applicant's, it is NOT unreasonable to think that a convincing argument can be made for the lease rates as utilized in the above recap and that the current value of the 13th Avenue S Kmart and the University Drive S Kmart Plaza are reasonable estimates. The table on the following page recaps existing lease data and supports the estimated rents for the properties.