Item 3: Ordinance Vacating Portion of West 4th Alley

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Page 2 of 3 Basis of Value Report 4` Avenue Alley (portion of) November 30, 2012 The subject property is located along 4 Avenue Alley, between Charnelton and Lincoln streets. The sales utilized in this Basis of Value Report are considered to be as comparable to the subject's Whiteaker Special Area zoning as could be located at this time. Several of the sales are considered to be superior to the subject property mainly due to superior locations compared to the subject property, but as stated previously, the sales utilized in this Basis of Value Report are considered to be the best that could be located at this time. Sale #1's I -2 zone was in the process of being changed to Commercial zoning and is considered to be comparable with the Whiteaker Special Area's "Mixed Use" zoning allowances, and it is recognized to be in a superior location. Sale 41 is considered to set the upper value range. As was noted above, the subject's location is somewhat inferior compared to most of the sales presented due to a mixed use neighborhood that is served only by "local" streets with modest traffic counts, rather than superior areas with major streets and symbiotic commercial demand within a comparable neighborhood. Sale #3's location is inferior to Sales #I and 2's locations, but Sale #3 is still considered to be located in a superior location compared to the subject. Sale # 5 was located near Alder Street on the curve where Franklin Boulevard becomes Broadway. This property has an inferior shape and has some traffic restrictions and limitations, but is considered to be a good comparable property, with its superior location noted. Sale #6 was also a very irregularly shaped parcel, which limits its development potential, and its location is considered to be inferior compared to the subject. Sales #4 and 6 are the same zoning and deserve high credence in estimating an appropriate unit value. Sale #5 is also considered to be a highly relevant comparable sale for estimating an appropriate unit value for the subject property. Sales Al and 2 were given the least weight in estimating the overall unit value for the subject property due to their much superior locations, etc. The overall reasonable value range is, therefore, $6.03 /SF to $28.95/SF. Taking into consideration the described comparable sales and corresponding adjustments, an unencumbered unit value is estimated to be $14 /SF. The Lane County Assessor estimates the real market value (as of January 1, 2012) of the current adjoining properties to be approximately $21 /SF. City staff reports that the subject alley is 14' X 334' + /- (4,676 SF). As part of the proposed alley vacation, the City will reserve a public utility easement over the entire alley right -of -way for all existing utilities. The reservation of the public utility easement is estimated to reduce the value of the subject area by approximately 35 %. The value of the proposed vacation of 4`h Avenue Alley is, therefore, calculated to be: $14.00 /SF X.65 = $9.10 /SF X 4,676/SF = $42,552, or $42,500, rounded. Assessment of value estimated to the benefittint! (adjoining) property owner: $42,500. This Basis of Value Report is not an appraisal and is intended for City of Eugene internal use only. Prepared by Lloyd Williams, Real Property Officer