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I. INTRODUCTORY INFORMATION
A. GENERAL INFORMATION
B. MARKET FACTORS
C. VALUATION FACTORS
II. DETAILED DESCRIPTION OF THE PROPERTY
A. GENERAL PROPERTY DESCRIPTION
B. APPROXIMATE LAND DIMENSIONAL CHARACTERISTICS
C. BUILDING STRUCTURE CHARACTERISTICS
I. INTRODUCTORY INFORMATION:
A. GENERAL INFORMATION
Three contiguous parcels of “premier profile/location” property in the City of Minnetonka are offered for sale or development. The three properties combined total approximately 8.7 acres. The northern boundaries of the properties have 495 “straight line” feet of frontage on the south public access side of Minnehaha Creek between the Gray’s Bay Outlet of Lake Minnetonka and Interstate Highway 494. Two of the parcels have existing single-family homes and outbuildings situated upon them; one parcel is open land. The properties are currently zoned R-1, low-density single family residential.
Both parcels share a small pond with an existing water channel access from the pond north to Minnehaha creek. The properties are partially populated by a variety of tree species (mature oaks, poplar, small/medium maples, birch, some elm, pines, and crab apple) in various stages of maturity, along with other forms of undergrowth (sumac and buckthorn). There is an existing “open area” sand/gravel “road” located on the eastern edge of the properties, allowing access to the back portions of all the properties, and to Minnehaha Creek. The general soil condition of the properties consists of a shallow layer of black dirt over a sand/gravel base.
A small portion of the westerly edge of the properties is delineated as flood plain on existing City of Minnetonka topographical maps. FEMA Flood Zone X indicates the area is not located in a Special Flood Hazard Area. FEMA Flood Zone A indicates the area is located in a Flood Hazard Area, but no base flood elevations have been determined. Actual flood plain boundaries, if any, are to be determined by survey.A public road runs across the southern front boundary lines of the properties. City water, sanitary sewer and storm sewer utilities are in place in this road. A sanitary sewer line also runs diagonally from southwest to northeast, on City of Minnetonka property, within 50-100 feet of the northwestern corner and northern boundary of the properties and the southern edge of Minnehaha Creek.
A north/south running electric power line easement is part of approximately the easterly 60 feet of the most easterly-located parcel. This is an easement for location of power line poles, line service and maintenance access, and limits the power company, Excel Energy, to a specific number and type of power transmission poles allowed on the parcel along the extent of the easement. There is also a temporary underground power line along the easterly edge of the property connecting to the existing overhead power line. This connection runs east, and is being utilized by the City of Minnetonka for power to run a municipal well pump. Costs incurred in mitigating the relocation or reworking of this power access due to any work done on the parcel, are the responsibility of the City of Minnetonka.
B. MARKET FACTORS:
The subject property is located in the City of Minnetonka, Hennepin County, Minnesota. The city is a second ring suburb located approximately 10 miles west of the downtown Minneapolis Central Business District. The property has easy access to major north-south (Interstate 494) and east-west (Interstate 394) freeway systems, allowing for easy access to major transportation arteries throughout the Twin Cities area, and easy access to downtown Minneapolis. Bus service is available within less than two blocks walking distance.
The property is bounded on the north by Minnehaha Creek. Approximately one block to the south is the Minnetonka Civic Center Complex, which includes the City Hall, Fire and Police Departments. Amenities within the Complex include a Community Center, two Ice Arenas, a small outdoor amphitheater, soccer/playfields, an indoor recreation center, additional access to Minnehaha Creek, and hiking trails.
A major shopping center, Ridgedale, is within a few minutes drive of the property location. Major automotive service centers, other major grocery and shopping locales (including Cub Foods, Byerly’s Foods, Lund’s Foods, Whole Foods Natural/Organic, Target Greatland and K-Mart), and a wide variety of restaurants are within minutes of the location. Three major west suburban hospitals (North Memorial, Methodist, and Fairview-Southdale) are within a 15-minute drive. The property is approximately 1.5 miles east of Lake Minnetonka’s Gray’s Bay public access marina, and within another mile of the Wayzata Bay Yacht Club. A premier health and wellness center, The Marsh, is located within 2 ½ blocks.
The properties are located with the boundaries of Hopkins School District #270. The Hopkins School District is considered one of the finest in the State of Minnesota.
The neighborhood and surrounding area consists mainly of good quality and well-maintained residential homes varying widely in age, design, price range and appeal. It appears there are no obvious adverse influences affecting the marketability of properties in the area.
In the wider area surrounding the neighborhood, all types of zoning classification and land use are evident. These include single and two family dwellings, town homes, institutional and scattered commercial/retail.
C. VALUATION FACTORS:
The properties are unique with regard to the relatively large acreage involved, and the fact only two single-family dwellings are situated on the properties. In addition, the proximity to Minnehaha Creek, the characteristics of the landscape, the secluded nature of the location and the close proximity of municipal utilities create a value added pricing premium with regard to other properties in the surrounding area. This pricing premium is of particular importance when considering the development potential of the land.
Valuations typically include two methodologies: the replacement or “cost approach” and the “market approach”. A third evaluation method used with developable property is the “highest use approach”, which seeks to project the market potential of the property if prepared for its highest reasonable marketable possibility. The “highest use approach” provides an estimate of both a wholesale and retail valuation of the property, relative to its existing undeveloped condition and its projected marketability if fully or partially developed.
An estimate of market value based upon potential development will be presented in this document. The single-family dwellings will be evaluated on the basis of each individual dwelling unit’s characteristics, with the additional assumption the property could be formally or administratively subdivided so the existing dwellings would have a minimum lot size of approximately .5 Acre. The remaining undeveloped land would then be evaluated in terms of its estimated potential wholesale/retail profile.
A separate analysis of the properties, in terms of their maximum market potential, which could include the teardown of the existing single- family homes, will not be done in this report. Teardown would be an alternative if the developable land valuations exceed the total market value of the single-family home’s individual marketability situated on a reduced half-acre lot size.
II. DETAILED DESCRIPTION OF THE PROPERTY:
A. GENERAL PROPERTY DESCRIPTION:
The property consists of three contiguous parcels located in the City of Minnetonka, County of Hennepin, State of Minnesota. All parcels are part of Registered Land Survey Number 0673, County of Hennepin, State of Minnesota. Two of the parcels have been combined under one Property Identification Number. Parcel # 2 consists of the North 500 feet of the parcel located at 14808 Timberhill Road, Minnetonka, MN 55345 (RLS #673, Tract B).
Parcel # Property I.D. # Address Location
1 16-117-22 13 0001 14802 Timberhill Road, Minnetonka, MN
RLS #673, Tract A
2 Part of Parcel #3 14808 Timberhill Road, Minnetonka, MN
RLS #673, North 500 Feet of Tract B
3 16-117-22 13 0019 14814 Timberhill Road, Minnetonka, MN
RLS #673, Tract C
NOTE: Parcels number 1 and 2 (Tracts A and C) have single-family dwellings located upon them. Parcel number 2 is open land. All parcels are contiguous with each other.
B. APPROXIMATE LAND DIMENSIONAL CHARACTERISTICS:
Parcel # Property Type Approximate Property Size
1 Tract A Torrens S269.18 X W883.96 X N165 X E1093.75
163161.075 SF (3.746 Acres)
2 N. 500 Ft. Torrens S165 X W500 X N165 X E500
Tract B 82,500 SF (1.894 Acres)
3 Tract C Torrens S165.33 X W769.33 X N165 X E830.88
132,017.325 SF (3.031 Acres)
Total Area 377,698.4 SF (8.671 Acres) (Approximate)
NOTE: Dimensions per RLS #673. Subject to actual survey confirmation. Parcel number 1 southerly line by triangulation is 265.721 feet. Parcel number 3 southerly line by triangulation is 176.106 feet. Measurement by established radius may be slightly different. One U.S Survey Acre equals 43,560 square feet.
C. BUILDING/STRUCTURE CHARACTERISTICS:
1. Parcel #1: 14802 Timberhill Road, Minnetonka, MN 55345
Parcel #1 has two buildings located upon it: A single-family dwelling and small detached storage building.
The single-family dwelling is a “California Style” cedar shake Rambler with two fireplaces and a tuck-under double garage. The home was completely remodeled by the “Home Savvy” Learning Channel Television Crew over a two-year period during the middle 1990’s. It has a “California” style main entry open front porch, a three-season rear porch, and a composite rear deck. The detached outside barn-style storage building is approximately 10.3 X 11.2 feet (115 Sq. Ft.), and sits on a concrete slab.
2. Parcel #2: North 500 ft. of Tract B, 14808 Timberhill Road, Minnetonka, MN 55345.
Parcel #2 has no buildings located upon it.
3. Parcel #3: 14814 Timberhill Road, Minnetonka, MN 55345
Parcel #3 has two buildings located upon it: a single-family two story walkout and an eight-stall (with storage area) 36X60 horse stable of steel/treated wood/concrete construction.
The single-family dwelling is a walkout rambler with two stone fireplaces, a built-in stone kitchen fireplace/grill, and a two-car garage. The home is of brick and redwood siding construction.
