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<br />
<br />Analysis of Data and Conclusions
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<br />I. Highest and Best Use
<br />Since a diminution in value is most easily detected when there has been a change or modification in the
<br />intensity of use, the same four tests of legal permissibility, physical possibility, financial feasibility, and
<br />maximum productivity are applied to the subject.
<br />I, What uses are legally allowed considering zoning, easements, and deed or use restrictions?
<br />2. Of the legally permissible uses, which are physically possible given its characteristics?
<br />3, Which physically possible and legally permissible uses provide a reasonable return to the land?
<br />4. Of the preceding, which use will result in the greatest net return to the land?
<br />
<br />A. As Though Vacant and Available for Its Highest and Best Use
<br />
<br />Legally Permissible
<br />Again, the subject is located in the extra-territorial zoning district of Fargo and falls within the SR-2 zoning
<br />district: i,e" single-family use. which conforms to the surrounding development. The area south of the
<br />slumping is located ina FEMA-identified X zone; the balance of the site is located in the 100-year flood plain
<br />and the floodway of the Red River, Typical residential covenants control development of the subdivision for
<br />the benetit of its residents, Given the preceding, a residential use is legally permissible; however, neither the
<br />City of Fargo nor Cass County would permit this site to be used as a buildable site, given the subsidence of
<br />the unstable soils.
<br />
<br />Physically Possible
<br />The physical constraints of the site are the predominant factor when considering development, since these
<br />characteristics dictate the size and ultimately, the income producing capability of any proposed
<br />improvements, The site is an irregular river lot with 110.0::1: feet of frontage on 641h Avenue North, anda gross
<br />area of 29,813 square feet. In the before state, about 14,575 square feet of the site, lying south of the river
<br />bank escarpment was considered suitable for residential development; however, the bank is slipping, and
<br />areas along the top of the slope and behind the garage are slumping, Fault lines and fissures are also visible.
<br />With these safety issues present, neither the City nor the County wo~ermit con~truction on this site, in its
<br />"as is" or damaged condition. {~rr,,.f/~ -tk ;1i)rl1--. e~(lr- d~c/C. b~h.,.pI-j-I..(...hgu.:U IJ
<br />drJIP,'''.1- 1_'):3-07.
<br />
<br />Financially Feasible and Maximum Productive
<br />The preceding tests imply that a residential use of the site is probable; however, the following valuation
<br />analysis will prove that the site's underlying market value (as though vacant) has diminished, given the failure
<br />of the soils, and there is no benefit to be gained from developing this site to a residential use. When the
<br />estimated value of the site at $21,000 is compared to the historic repair estimates of$21 0,000 to $250,000,
<br />included in this appraisal for Damaged Sales I - 4 (Moore Engineering, 200 I and 2002), it is clear, that
<br />repairing this lot would not be tinancially feasible or maximally productive, since the cost to repair far
<br />exceeds the value of the site as though vacant and available for its highest and best use.
<br />
<br />Summary as Though Vacant
<br />No reasonable person would consider this site buildable due to safety issues, nor would they consider it
<br />repairable taking into account historic repair cost estimates submitted by Moore Engineering on properties
<br />\~ith similar detrimental conditions, Since there are any number of competitively priced vacant lots available
<br />for sale in the open market, with and without a view, that are not impaired, the highest and best use of the
<br />subject site is reduced to green space.
<br />
<br />RM HOEFS & ASSOCIATES, INC,
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