For Training Purposes
Prepared by DOI OVS
April 2013
Statement of Work for the Appraisal
River Valley State Park Replacement Property
Page 1 of 9
STATEMENT OF WORK
River Valley State Park Conversion – Replacement Property
Subject Property Identification
Identification
Case Name
River Valley State Park replacement property
Location
1234-1239 Shoehorn Drive, Hudson, NY.
Common Name
Parcels A, B, and C
Property Type
Residential and agriculture
Case Type
Replacement property
Property Description
Property I.D.
Land
Area
Access
Primary Characteristics
Parcel A
30 acres
County road
(Shoehorn Drive)
Residential/Agriculture
Parcel B
15 acres
None, landlocked
Wetland
Parcel C
20 acres
County road
(Shoehorn Drive)
Agriculture
Legal Description
See surveys attached as Exhibit 4.
Property Interest
to be Appraised
Fee simple estate subject to the exceptions indicated in the Outstanding
Rights section below.
The appraiser must immediately notify the client of any indications of
rights contrary to these described. This may result in amended
instructions.
Outstanding Rights
Parcel A:
1. Avigation easement in favor of the Hudson County Airport
limiting buildings and towers to 100’ above grade
Parcel B:
1. None
Parcel C:
1. Conservation Easement held by Hudson Land Trust preventing
any land division
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Prepared by DOI OVS
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Statement of Work for the Appraisal
River Valley State Park Replacement Property
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Reservations
Parcel A:
1. Timber rights to all trees in excess of 20” DBH through 2013
Parcel B:
1. None
Parcel C:
1. Corn harvest for 2013
2. Hunting rights through 2013
Tenancies
Parcel C is subject to a sharecrop agreement through 2013.
Fixtures and
Personal Property
None.
Property Access
Physical:
All parcels are accessed from Shoehorn Drive (county road),
with Parcel B accessed by permission through farm trail on
Parcel A.
Legal:
Parcel A and C front Shoehorn Drive on the north. Parcel B
has no legal access, but may be accessed by permission over
Parcel A.
Owner/Occupant
The State of New York has options to purchase all three parcels
(documents are Exhibit 3) Current owners are
Parcel A: Treadway Group, LLC
Parcel B: County of Filmore Revenue Department
Parcel C: Jacob and Lillian Jackson
Owner/Occupant
Contact
Attached Exhibits
1. Location Map
2. Assessor’s Plat Map
3. Option Agreements
4. Legal Descriptions
5. Survey
6. Guidance for Larger Parcel Determinations Memo
Appraisal Instructions
Pre-Work Meeting
The appraiser may be required to attend a pre-work meeting with the
assigned review appraiser, the client, and other interested parties. The
client will coordinate the date, time, and place of the meeting.
For Training Purposes
Prepared by DOI OVS
April 2013
Statement of Work for the Appraisal
River Valley State Park Replacement Property
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Property Inspection
The appraiser must inspect the subject property, unless the review
appraiser has approved other conditions in writing.
The appraiser must certify that he/she extended an offer to the property
owner (or the owner’s representative) to accompany him/her during the
property inspection. [Uniform Relocation Assistance & Real Property
Acquisition Policies Act of 1970 (PL 91-646) as amended and the
Uniform Appraisal Standards for Federal Land Acquisitions, Section D-
14]
Assignment
Communications
1. The appraiser must address any questions regarding appraisal
instructions and/or technical requirements for the appraisal to the
client.
2. Refer all requests for information concerning the appraisal to the
client.
Reporting
Confidential
Information
The appraisal report must exclude confidential information.
Public
Dissemination
While the public is not an intended user of the appraisal report, the Term
Sheet, Freedom of Information Act (FOIA) and agency policy will likely
result in the release of all or part of the appraisal report to others.
Appraisal License
The appraiser must hold a valid license as a Certified General appraiser
for the jurisdiction in which the subject property is located. (Valid
credentials include those obtained directly from the jurisdiction, those
issued under a reciprocity agreement, and/or those characterized as
“temporary” under the jurisdiction’s licensing and certification statutes.)
Appraisal Development and Reporting
Appraisal Review
The appraisal development and report must comply with this statement
of work, including all requirements in the cited regulations, standards,
and policy. The appraiser must modify any compliance deficiencies
identified by review appraiser. UASFLA and USPAP also require the
appraiser to practice current body of knowledge, so methodology must
comport with the The Appraisal of Real Estate, 13
th
Edition, 2008,
Appraisal Institute, or other authoritative texts.
Appraisal
Regulations and
Standards
Uniform Standards of Professional Appraisal Practice (USPAP)
Uniform Appraisal Standards for Federal Land Acquisitions
For Training Purposes
Prepared by DOI OVS
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Statement of Work for the Appraisal
River Valley State Park Replacement Property
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(UASFLA)
49 CFR 24.103 Criteria for Appraisals under the Uniform Relocation
Assistance & Real Property Acquisition Policies Act (URA)
36 CFR 59.3(b)(2)
Land and Water Conservation Fund (LWCF) State Assistance
Program Manual
Legal Instructions
None.
Comprehensive
Content
All UASFLA-compliant appraisals must conform to the content outlined
in UASFLA, Appendix A and B.
Certification
(UASFLA A-4) Include all certification statements required by both
USPAP and UASFLA.
Only certified general appraisers may sign a certification. Each
certification signatory is responsible for the entire report. Professional
contributors must not sign an appraisal certification but the certification
must acknowledge their specific contribution.
Client
New York State Office of Parks and Recreation
Intended Users
1. New York State Office of Parks, Recreation, and Historic
Preservation
2. National Park Service of the United States Department of the
Interior
Intended Use
The opinion of market value will be used to determine if this
replacement property equals or exceeds in value another property
proposed for conversion to a non-recreational use. The appraisal is not
intended for any other use.
Date of Value
The date of value is the date of the last property inspection. The date
must match the date of value of the related conversion property
appraisals.
Limiting Conditions
(UASFLA A-7) Do not use superfluous or boilerplate type limiting
conditions, nor statements such as, “except as stated in the body of the
report.” Check the report for these exceptions.
The appraiser may not make assumptions for conditions that are his/her
opinion, for example, the likelihood of a zoning change. He/she must
analyze this condition and account for the risk in highest and best use
and the value conclusion.
For Training Purposes
Prepared by DOI OVS
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Statement of Work for the Appraisal
River Valley State Park Replacement Property
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Extraordinary
Assumptions
(UASFLA A-7 and D-3) The appraisal must comply with USPAP
extraordinary assumptions disclosure requirements. Only use an
assumption if it results in credible analysis. Statements of fact, such as
site size, should be excluded from assumptions.
Environmental Conditions. The appraisal must reflect any known
adverse environmental conditions that will not be cured at the current
owner’s expense but inherited by a purchaser. Conversely, the appraisal
must be subject to the extraordinary assumption that unknown
conditions would be fully remediated by the owner.
Other. If the appraiser determines that other extraordinary assumptions
are necessary for the completion of the assignment, he/she must contact
the client for prior written approval.
Hypothetical
Conditions
(UASFLA A-7 and D-3) The appraisal must comply with USPAP
disclosure requirements. He/she may only use a hypothetical condition if
it results in credible analysis and must clearly explain its implications to
the valuation because of its adoption.
Parcel A Timber Harvest. Hypothetically value the property as if the
reserved timber harvest is complete.
Parcel C. Hypothetical value the property without any contribution from
standing crops.
Other. If the appraiser determines that hypothetical conditions are
necessary, he/she must contact the review appraiser for prior written
approval.
Jurisdictional
Exceptions
Exposure Time. (UASFLA A-9, D-1b, B-2) Contrary to USPAP, which
requires the appraiser to analyze and state the exposure time for any
definition of value that includes exposure, UASFLA A-9 mandates that
the appraiser not link the value to a specific exposure time. To comply
with USPAP the appraiser must invoke a Jurisdictional exception. The
legal basis for delinking is found in UASFLA B-2.
Parcel A Residence. NPS has determined that the residence will not
contribute to the replacement property’s recreational utility so this
improvement must be excluded from valuation.
If the appraiser decides to invoke USPAP’s Jurisdictional Exception
Rule for other reasons necessary to comply with law, regulation, or
UASFLA, he/she must contact the review appraiser to obtain prior
written approval.
For Training Purposes
Prepared by DOI OVS
April 2013
Statement of Work for the Appraisal
River Valley State Park Replacement Property
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Identification of
Assumptions,
Conditions, and
Exceptions in
Report
(UASFLA A-2, A-5, A-7) The appraiser must identify (summarize) all
extraordinary assumptions, hypothetical conditions, and jurisdictional
exceptions wherever he/she states the final value conclusion, including
the Letter of Transmittal and the Summary of Salient Facts. Write all of
these in full in the Assumptions and Limiting Conditions section.
Scope of the
Appraisal (Work)
(UASFLA A-8) The appraiser must outline and defend his/her selection
of the scope of work necessary to achieve credible results given the
intended use and users of the appraisal. He/she must be defined the
geographic area and time span for appropriate market data (more than
comparable selection) and the extent to which the data was confirmed
must be stated.
The appraiser must discuss the applicability of all standard valuation
approaches, including a defense of the exclusion of any of these
approaches.
Market Value
Definition and
Source
(UASFLA A-9) The amount in cash or on terms reasonably equivalent
to cash, for which in all probability the property would have sold on the
effective date of the appraisal, after a reasonable exposure time on the
open competitive market, from a willing and reasonably knowledgeable
seller to a willing and reasonably knowledgeable buyer, with neither
acting under any compulsion to buy or sell, giving due consideration to
all available economic uses of the property at the time of the appraisal.
(Interagency Land Acquisition Conference, Uniform Appraisal
Standards for Federal Land Acquisitions, fifth edition, page 13,
Appraisal Institute, 2000.)
Legal Description
Verification
(UASFLA A-11, D-5) The appraiser must verify the legal description on
the ground during the property inspection. Notify the client of any
apparent deviations.
Property
Description
(UASFLA A-12, A-13) The area description should only include
information that directly supports highest and best use analysis, larger
parcel determination, and the valuation approaches. Analysis must
adequately support all feasible uses identified in highest and best use.
Support the influence on value of positive and negative attributes of
adjacent or nearby public facilities such as parks or commuter services.
Fully describe and document with maps and photographs the physical
attributes of the site that influence value.
Property History
Use. (UASFLA A-13d, B-5) Describe the use and occupancy for the last
ten years, or if indeterminable, discuss the attempts obtain it. Identify
the date and use of the original construction and those of any major
For Training Purposes
Prepared by DOI OVS
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Statement of Work for the Appraisal
River Valley State Park Replacement Property
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renovations.
Sales. Provide a ten-year history of sales, including offers to buy or sell
the property. If there is none, report the last sale, regardless of date.
Provide the buyer, seller, sale date, price, terms, and conditions of sale.
Support a conclusion of whether the sale represents market value at the
time of the sale. The appraiser must analyze any recent arm’s length sale
of the subject property as evidence of the subject’s market value.
Rent. Provide a three-year history of rents. Any current leases must
include all pertinent information and be analyzed for market rent or
grounds given for not doing so.
Assessment and Tax
Load
(UASFLA A-13g) Estimate the assessment and tax burden where the
property in private ownership on Parcel B.
Zoning
(UASFLA A13h, D-6) Identify and describe current zoning and master
plans. Analyze the potential for rezoning or variances to regulations of
current zoning in support of highest and best use analysis in compliance
with UASFLA Section D-6. Do not appraise the property assuming it
can be rezoned, but include the effect on value of risk, time, and
expense.
Identify and analyze any current non-conformance.
Since the market value definition requires an open market, analyze
zoning and other land use regulations in the context of the property in
private ownership.
Other Land Use
Regulations
(UASFLA A13h, D-6) Identify and analyze other land use regulations,
such as historic districts, flood control boundaries, construction permits,
and any economic restrictions or incentives (e.g. rent control, tax
abatements).
Larger Parcel
(UASFLA, Sections A-14, B-11 & B-13) The appraiser must conduct
all research necessary for a well-supported larger parcel(s) conclusion.
Since this appraisal is in support of a Federal land exchange, it must
also comply with UASFLA D-7. Further explanation of the basis of
larger parcel determination in appraisals for conversions is attached to
this Statement of Work as Exhibit 7.
The property to be appraised is the entire lands described in this
statement of work. Using contiguity, ownership, and unity of highest
and best use analysis, the appraiser should determine the larger parcel(s)
only within the lands identified in this appraisal assignment. As
For Training Purposes
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Statement of Work for the Appraisal
River Valley State Park Replacement Property
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described in D-7, the appraiser must exclude common adjacent
ownership from the determination.
Highest and Best
Use
(UASFLA A14, B-3) Analyze the highest and best use of the property
as if vacant using the four tests in elimination methodology, including
the perfect improvement. Then, analyze the property as it is improved
using the same methodology, including building differences from the
perfect improvement and the consequences of those differences. The
approaches to value must reflect these consequences.
The appraisal must conclude an economic highest and best use, not that
of public interest (park, preservation, etc.). The highest and best use
conclusion must be a specific use adequately supported by market
evidence and analysis. Supply and demand analysis of all financially
feasible uses is a critical element; mere assertion is unacceptable.
Comparable Sales
and Rentals
(UASFLA A-17) All sales and rents used in direct comparison to the
subject property must conform to UASFLA, A-17 in development and
reporting. Sales and rental data used in support of adjustments,
depreciation, and/or capitalization rate development must include all
relevant information, including sufficiency for independent reviewer
verification.
Sales Comparison
Approach
(UASFLA A-17, B-4, D-9) UASFLA considers the sales comparison
approach the best evidence of market value. Excluding this approach, or
giving other approaches more weight, needs comprehensive rationale.
In this approach, provide a narrative comparison of the comparable sale
to the subject property. A comparison grid summarizing the narrative is
desirable.
UASFLA prefers quantitative adjusting, but requires the appraiser to
support them with market evidence. It permits adjustment by percentage
factors, or whole dollars, as appropriate. Any client rules to the contrary
should be discussed thoroughly. The intended user of the NPS requires
UASFLA compliance that the appraiser selects and defends the
appropriate methodology, not the client.
Alternatively, the appraiser can use qualitative adjusting, whether
exclusive or in conjunction with quantitative adjusting. It requires more
comparables and extensive reasoning than quantitative adjusting.
Reconcile the divergent value indications with an analysis of the
reliability of adjustments and weighting the comparables for influence
in the conclusion.
For Training Purposes
Prepared by DOI OVS
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Statement of Work for the Appraisal
River Valley State Park Replacement Property
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Include comparable data sheets on all direct sales used in this approach
in this section or in the Addendum. Any sale to or by a government
entity, or those requiring rezoning or extensive permitting must have
extraordinary verification outlined in UASFLA section D-9.
Cost Approach
(UASFLA A-16) State the source of reproduction or replacement cost.
Include entrepreneurial incentive as extracted from the market. Estimate
depreciation using the breakdown or market extraction methods, not
published tables, or age-life computations.
UASLA anticipates that the appraiser will not use the Cost Approach
when the market would not reproduce the buildings.
Income Approach
(UASFLA A-18) The preferred method of supporting a capitalization
rate is from rates reflected by comparable sales.
Reconciliation of the
Approaches to a
Final Value
Estimate
(UASFLA A-19) Review the applicability of each approach and the
quality of the data used. Explain the weighting of each approach in the
final value estimate. Use analysis and logic to reconcile a conclusion of
a single-point value.
Exhibits
Subject Maps. Include a north arrow and subject identification.
Comparable Maps. Include a map showing the relative location of the
sale or rental and the subject property. Include a north arrow. If
necessary, show the sale or rental property on a more detailed map for
field verification.
Photos. Identify the subject of the photo, direction of the picture and
location of the photographer. Include the date of the photo and the name
of the photographer.
Plot Plan. Include a plot plan of the entire property, identifying streets
and frontage, building locations and setbacks, significant site
improvements, and easements. The plan should also show photo
locations and direction.
Assignment Instructions. Include this statement of work, other
assignment instructions, and the engagement letter in the appraisal
report addendum.
