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Abatements #4223 & 94224- Wal-Mart & Sam's Club 4
<br />
<br />CITY OR AREA
<br />Minneapolis Suburb
<br />
<br />LEASE AND INCOME COMPARISON
<br />
<br /> DATE SIZE LEASE/SF LANDLORD EXPENSE
<br /> 1999 108,162 $ 7.98 None. Net,Net,Net
<br />
<br />Minneapolis Suburb 1999 103,455 $ 6.92 None. Net,Net,Net
<br />St Paul Suburb 1999 27,044 $ 8.00 None. Net,Net,Net
<br />Minneapolis Suburb 1998 35,904 $19.97 Some. Rent is after expenses
<br />Minneapolis Suburb 1995 49,104 $ 7.69 Some. Rent is after expenses
<br />Local 1998 59,897 $ 684 None Net, Net, Net
<br />Central Minnesota 1995 130,000 $ 5.94 None, Net, Net, Net
<br />Central Minnesota 1992 94,481 $ 6.00 None, Net, Net, Net
<br />Local 1981 23,998 $ 8.00 Major Maintenance
<br />Local 1994 30,000 $13.23 Major Maintenance
<br />Local 1994 80,692 $ 6.60 Management
<br />Local 1994 51,600 $ 7.15 Management
<br />Local 1995 45,800 $1050 Major Maintenance
<br />Local 1992 56,200 $ 6.00 Mgm[ Major Maintenance
<br />Regional 1992 69,306 $ 7.42 None. Net, Net, Net
<br />Central Minnesota 1993 94,481 $ 5.12 None Net, Net, Net
<br />Detroit Lakes 1991 86,479 $4.12 None. Net, Net, Net
<br />Central Minnesota 1991 91,266 $ 4.89 None. Net, Net, Net
<br />Minneapolis Suburb 1990 114,000 $ 5.04 None. Net, Net, Net
<br />Local 1987 31,614 $6.75 Major Maintenance
<br /> 69,173 $ 7.26
<br />
<br />AVERAGE
<br />
<br />The Wal-Mart and Sam's representative submitted an income workshcct to support a request
<br />for a lower value. The mechanics of the income approach is to calculate an income based on
<br />what a retail building would typically rent for, subtract out expenses, and then capitalize that
<br />remaining net income into an estimate of value. The calculations from their worksheets is
<br />shown in the following grid:
<br />
<br />Applicant's Income Calculations With Incorrect Building Sizes
<br />
<br />INDICATED
<br />
<br />STORE SIZE RENT/SF GROSS RENT EXPENSE VALUE VALUE/SF
<br />
<br />Wal-Mar[ 114,086 $ 5.25 $598,952 $ 86,848 $ 5,121,000 $44.89
<br />
<br />Sam's 109,398 $5.25 $574,340 $ 83,279 $4,910,600 $4489
<br />
<br />Our present value on Wal-Mart is $5,940,000 and on Sam's it is $5,795,000 but those values
<br />are based on square footages which differ from the representative's worksheet. We have
<br />Wal-Mart being 118,880 square foot is size, excluding the enclosed garden area, and Sam's
<br />at 117,558 square feet. Based on these sizes and using the same income schedule the
<br />following would be produced.
<br />
<br />STORE
<br />
<br />Applicant's Income Calculations With Correct Building Sizes
<br /> INDICATED
<br /> SIZE RENT/SF GROSS RENT EXPENSE VALUE
<br />
<br />VALUE/SF
<br />
<br />WaI-Mar[ 118,880 $ 5.25 $624,120 $ 90,497 $ 5,336,200 $44.89
<br />Sam's 117,558 $ 5.25 $617,179 $ 89,491 $ 5,276,900 $44.89
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