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Charles E Thompson & Assoc., Inc.
<br />Real Estate Appraisers & Counselors
<br />
<br /> April 12, 2005
<br />
<br /> Mr. Russ Royer
<br /> Senior Real Property Officer
<br /> City of Eugene Public Works
<br /> Engineering Division
<br /> 858 Pearl Street
<br /> Eugene, OR 97401
<br />
<br /> RE: Complete Appraisal - Summary Report of two undeveloped land parcels located north
<br /> oflrvington Road, south of Beacon Drive, east of Prairie Road, and west of River Road,
<br /> Lane County, Oregon (Property owned by LeeLynn, Inc., and Wiley Mtn., Inc.)
<br />
<br /> Dear Mr. Royer:
<br />
<br /> During our telephone conversation on Friday, April 8, 2005, you indicated a concern involving the
<br /> analysis of Sale Nos. 2 and 4. Your opinion was that these two sales seemed to support a higher
<br /> value for the subject then the values reported of $6,000 per acre for Subject Parcel 2, and $7,000 per
<br /> acre for Subject Parcel 1.
<br />
<br /> Sale No. 2, after subtracting $50,000 for the improvements, reflected a per acre value of$5.195 per
<br /> acre. My analysis was that this sale indicated a value for the two subject properties of well above
<br /> this figure, i submit that $6,000 and $7,000 per acre are well above this figure.
<br />
<br /> Likewise, Sale No. 4 reflected a per acre price of $5,633 per acre. Again, my values of $6,000 and
<br /> $7,000 per acre are above this figure.
<br />
<br /> Perhaps, based solely on these two sales, I could have gone somewhat higher, perhaps $7,000 and
<br /> $8,000 per acre; however, I based the value conclusions on all of the sales, rather thanjust those two.
<br />
<br /> Our discussion regarding the lack of sales of properties adjacent to the Urban Growth Boundary,
<br /> prompted me to search back in time to find a 2000 sale, which involved a 77.03 acre (useable) land
<br /> parcel located on the west side of Greenhill Road, adjacent to Barger Drive, and approximately 1,326
<br /> feet south of its intersection with Bodenhamer Road in Lane County, Oregon. This property sold
<br /> in February of 2000 for a price $250,000, or $3,245 (useable) per acre. Adjusting this for time at 4%
<br /> per annum, results in a time adjusted price per acre of $3,948 per acre.
<br />
<br /> While this property is similar to the subject in that it is zoned Exclusive Farm Use and involves
<br /> several drainage-ways, it is considered inferior in that it is also bisected in a diagonal fashion with
<br /> a BPA power line near the eastern one-third of the property. Moreover, the soils are inferior to those
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<br /> 1~0. BOX 10233 · EUGENE, OREGON · 97't40-2233 · TELEPftONE (54l) 343-8895 · E4X (.541) 343-5190
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