The updated appraisal of the Myers Park Development prepared by the Swan Valuation Group was delivered to City Hall late Monday afternoon and distributed to Council members by Economic Development Director Max McKnight immediately following last night's regular meeting.

Swan prepared an initial appraisal that was delivered in December of 1994 but the document was determined to be of little value by the then City Council because there was no development plan in place. Taking all factors into consideration, the recent market value of the saleable property appears to have changed little since the initial 1994 study.

The appraisal received Monday shows a total retail value of the property, with roads as shown in the illustration (inside) in place, of $1.6 million. The study estimated development cost to the City as $918,836. This included the roads, sales commissions, and what was shown as a 10% of sales "Entrepreneur Profit." After several adjusting factors were included, the report concluded that the current total market value of the property was $780,000. In contrast to the 1994 appraisal, only 87.97 of the total 158.5 acres, which included the total 30.69 acres of the Wal-Mart and Tapjac properties, are considered. The remaining 41.85 are dedicated for proposed roads and green space. (we can't account for 1.61 acres. ed)

The conclusion of the 1994 report was that a market value of between $1 and $1.4 million was reasonable for the total property including Wal-Mart and Tapjac properties. The total retail (infrastructure in) value for the property was shown then at approximately $3 million. It was estimated to take thirty years to completely sell the lots with a cost for infrastructure of approximately $700,000 plus street and traffic control improvements.

The recent appraisal average retail (infrastructure in) value per acre is calculated by this newspaper as $17,051. In 1994 the average retail price per acre was shown as $20,182. Some of the difference can be attributed to the difference in the size of lots being offered for sale. The 1994 study assumed many small, one to two acre lots. The recent study assumes lot sizes of five and a half to twenty acre lots that will be subdivided and improved by developers.

The market value (raw land) price approach also shows a similar comparison. Dividing the 1994 $1.4 million market value by the total 152 acres gave an average value of $9,210. The recent 1997 average market value, based on the $780,000 valuation divided by the 87.97 acres gives a per acre market value of $8,866. If the lower $1 million number from the 1994 appraisal is used, average market value was only $6,578.

The 1994 hypothetical subdivision, used to estimate a retail, or land with some infrastructure in place, value was presented as a basis for the initial appraisal assumed the entire 129.82 remaining acres (after the sale of the 30.69 Wal-Mart and Tapjac acres) would be sold. The resulting rough development plan utilized minimal street construction and showed only the estimated costs for basic services such as water and sewer.

In the recent appraisal, it was assumed "that the City of Carthage would incur the cost for the east-west bound streets to be known as Marlin Perkins Avenue and George E. Phelps Blvd., along with Myers Circle which connects the two. In addition, the City of Carthage would incur the cost for utility extensions along said streets. Each of the roads will be 40' wide with center turn lane; the right of ways will be 80' wide. The cost for said infrastructure is estimated at $636,000. The remaining roads would be developed by the individual lot purchaser. The existing site improvements would be razed by the prospective buyer."

In 1994 the document went into some detail as to how the property could possibly be developed. To limit up front development costs, a two phase plan was suggested that would develop exterior lots first and gradually sell interior property. One advantage of this approach, it was noted, was that the airport could continue to operate during the approximate five year initial phase.

"Since the main runway for the airport is located near the center of the property," the report stated in 1994, "there is a possibility that the facility could have continued use as a municipal airport until the sale of lots warrant this area’s development. Since this area would set vacant anyway, there is no reason why airport use couldn’t continue."

The latest appraisal assumes the airport will not reopen.

The Council will have an opportunity to discuss and evaluate the latest appraisal in a work session to be scheduled next week.