2. Abatements/Wal-Mart, Sam's - Laserfiche WebLink

Abatements g4223 & #4224 Wal-Mart & Sam's Club 5 As you can see if the correct square foot numbers are used it would 'add considerable to the overall value of each parcel while not increasing the value per square foot which is $44.89~ If a rent of $6.00 per square foot was used the effect on value would be as follows: STORE Assessment Department Income Calculations SIZE RENTISF GROSS RENT EXPENSE INDICATED VALUE VALUEISF WaI-Mar[ 118,880 $ 6.00 713,280 $ 103,425 $ 6,098,500 51.30 Sam's 117,558 $ 600 705,348 $ 102,275 $ 6,930,700 51.30 There is a range of lease prices from $4.12 to 13.23 per square foot. There is a range of building sizes from 23,998 square foot to 130,000 square foot. The average rent is $7.26 per square foot and the average size is 69,174 square foot. It is reasonable to assume the larger the building the lower the rents per square foot. It is also reasonable to assume that lease rotes can be influenced by the locatiom The better business location the higher the lease rates. Based on the lease information it is NOT unreasonable to think that a convincing argument could be made for a lease rate of $6.00 and that current market value on Wal-Mart and Sam's is a reasonable estimate. COST INFORMATION Actual building construction cost information was limited to 2 stores. The building permit totals for the Home Depot building in Fargo was added as a reference. The information collected is listed below: CITY OR AREA DATE SIZE Home Depot, Fargo 2001 118,193 BLDG COSTS $3,550,000 COSTS/SF $30.04 Buildihg Permit Total Minneapolis Suburb 1999-2000 Minneapoli? ~u~_b~ rb 1999-2000 108,152 $5,320,000 103,455 $5,367,000 $49.19 Actual Costs $51.88 Actual Costs The amotmt tbr improvement value thr Wal-Mart is $3,769,000 or $31.29 per square foot and for Sam's the improvement value is $3,700,000 with a square foot value of $31.40. Based on available cost information it appears that the improvement values on both Wal-Mart and Sam's is reasonable.