456 n. alameda boulevard appraisal report

MUNDY APPRAISAL SERVICES 456 N. ALAMEDA BOULEVARD

LAS CRUCES, NEW MEXICO 88005

(575) 527-9260

APPRAISAL REPORT

OF A

77,711 SQUARE FOOT TEMPORARY CONSTRUCTION EASEMENT

REQUIRED FOR THE RIATA ROAD BRIDGE CONSTRUCTION PROJECT

LOCATED ON

THE WEST SIDE OF RIATA ROAD

APPROXIMATELY ONE MILE NORTH OF LA LUZ GATE ROAD

UNINCORPORATED OTERO COUNTY, NEW MEXICO.

AT THE REQUEST OF

MS. SARA E. WOODS

ATTORNEY AT LAW

HOLT MYNATT MARTINEZ P.C.

1660 HICKORY LOOP

LAS CRUCES, NEW MEXICO 88005

EFFECTIVE DATE OF APPRAISAL

NOVEMBER 25, 2019

PREPARED BY:

KAREN I. MUNDY, MAI

NEW MEXICO

STATE CERTIFIED GENERAL APPRAISER #1219-G

Riata Road Temporary Construction Easement, Otero County, New Mexico

MUNDY APPRAISAL SERVICES

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December 20, 2019

Ms. Sara E. Woods

Attorney at Law

Holt Mynatt Martinez P.C.

1660 Hickory Loop

Las Cruces, New Mexico 88005

Re: 77,711 Square Foot Temporary Construction Easement

Required for the Riata Road Bridge Construction Project

West side of Riata Road

Unincorporated Otero County, New Mexico.

Dear Ms. Woods,

Pursuant to your request, I have made an investigation and analysis of the above referenced

property. In accordance with your instructions, I have formed an opinion of fair market

value of the temporary construction easement required by Otero County for the Riata Road

Bridge Construction Project, for which I have prepared and hereby submit this Appraisal

Report. This report is intended to comply with the reporting requirements set forth under

Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice

(USPAP).

The purpose of this report is to provide an opinion of fair market value of the temporary

construction easement as of the date of inspection on November 25, 2019. The client and

intended user of the report is Holt Mynatt Martinez P.C. with Otero County named as an

additional intended user. The intended use of the appraisal is to estimate compensation due

to the property owner for use of the temporary construction easement by Otero County.

The value reported is qualified by certain definitions, limiting conditions, and certifications

that are set forth within the attached report. This report is intended for use by Holt Mynatt

Martinez P.C., the client, with Otero County named as an additional intended user. It may

not be distributed to or relied upon by other persons or entities without written permission.

Having considered all of the facts and analyses within this report, together with other

relevant data compiled in the course of its preparation, I have concluded that, as of

November 25, 2019, my estimate of compensation due to the property owner for Otero

County’s use of the 77,711 square foot temporary construction easement was:

FOUR HUNDRED FIFTY DOLLARS

($450.00)

Thank you for the opportunity to provide appraisal services for Holt Mynatt Martinez P.C.

Karen I. Mundy, MAI inspected the subject property and the comparable properties used in

the analysis, and prepared the report. Questions from authorized users of the report are

welcomed. On the following page please find an Appraisal Summary.



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Ms. Sara E. Woods

December 20, 2019

Page 2

VALUATION

Before After

Value of Larger Parcel $60,200

Value of Square Footage of

TCE

$4,460

Value of TCE Compensation – 10% $450.00

Damages $0

Benefits $0

Net Damages $0

Total Compensation $450.00

The total compensation estimate shown above reflects a value for the fee simple estate of the

larger parcel of $2,500 per acre. This equates to an opinion of market value for the fee

simple estate of the area to be used for the temporary construction easement of $4,460,

which must then be multiplied by 10% as discussed later in the report to reflect the fact that

the temporary construction easement will be used for one year or less. Multiplying 10% by

the estimated fee simple value of $4,460 results in total compensation for use of the

temporary construction easement of $450.00.

A description of the property appraised, together with an explanation of the valuation

procedures utilized, is contained in the body of the attached report. For your convenience,

an Executive Summary follows this letter.

Respectfully submitted,

Karen I. Mundy, MAI

State Certified General Appraiser NM-01219-G



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EXECUTIVE SUMMARY

PROPERTY TYPE : The larger parcel consists of a 24.069-acre tract of

land that remains in its native desert state.

LOCATION : The larger parcel is located on the west side of

Riata Road, north of the City of Alamogordo, in

unincorporated Otero County, New Mexico.

Generally speaking, this reflects the west side of

Riata Road approximately one mile north of La

Luz Gate Road. The temporary construction

easement contains a total of 77,711 square feet, or

1.784 acres and extends west from Riata Road

towards the center of the property along the north

and south sides of the arroyo that traverses the

property east to west.

OWNER OF RECORD : Carrel, Carrel, and Lamphere.

EFFECTIVE DATE

OF VALUATION AND

INSPECTION DATE : November 25, 2019.

PURPOSE OF APPRAISAL : The purpose of this report is to provide an

estimate of compensation due to the property

owner for Otero County’s use of the temporary

construction easement as of the date of

inspection.

INTENDED USE AND USER : The intended use of the appraisal is to assist Otero

County in estimating compensation due to the

property owner for use of the temporary

construction easement. The client and intended

user of the report is Holt Mynatt Martinez P.C.,

with Otero County named as an additional

intended user.

DESCRIPTION OF

LARGER PARCEL : The larger parcel is a tract of land that is slightly

irregular in shape and contains 24.069 acres.

DESCRIPTION OF

TEMPORARY

CONSTRUCTION EASEMENT : The temporary construction easement contains

77,711 square feet, or 1.784 acres. The

temporary construction easement extends west

from Riata Road towards the center of the



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property along the north and south sides of the

arroyo that traverses the property east to west.

EXECUTIVE SUMMARY

(Continued)

The duration of the temporary construction

easement will be one year or less.

ZONING : Not Zoned, Unincorporated Otero County.

HAZARDOUS WASTE

CONDITIONS : Based on my inspection, there does not appear to

be hazardous waste on the larger parcel.

HIGHEST AND BEST USE : The highest and best use of the larger parcel as

vacant and as improved is for rural residential

development.

HYPOTHICAL CONDITIONS

AND EXTRAORDINARY

ASSUMPTIONS : None.

OPINION OF COMPENSATION

DUE TO THE PROPERTY OWNER

FOR USE OF THE TEMPORARY

CONSTRUCTION

EASEMENT : $450.00.

APPRAISAL SUMMARY:

VALUATION

Before After

Value of Larger Parcel $60,200 Unchanged

Value of area of TCE $4,460

Value of TCE-10%

Compensation

$450.00

Damages $0

Benefits $0

Net Damages $0

Total Compensation $450.00



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CERTIFICATION

I certify that, to the best of my knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions and conclusions are limited only by the reported

assumptions and limiting conditions, and are my personal, impartial, unbiased,

professional opinions and conclusions.

3. I have no present or prospective interest in the property that is the subject of this

report, and I have no personal interest with respect to the parties involved.

4. I have no bias with respect to the property that is the subject of this report or to the

parties involved with this assignment.

5. My engagement in this assignment was not contingent upon developing or reporting

predetermined results.

6. My compensation for completing this assignment is not contingent upon the

development or reporting of a predetermined value or direction in value that favors

the cause of the client, the amount of the value opinion, the attainment of a stipulated

result, or the occurrence of a subsequent event directly related to the intended use of

this appraisal.

7. The reported analyses, opinions, and conclusion were developed, and this report has

been prepared, in conformity with the Code of Professional Ethics and Standards of

Professional Appraisal Practice of the Appraisal Institute.

8. The reported analyses, opinions, and conclusion were developed, and this report has

been prepared, in conformity with the Uniform Standards of Professional Appraisal

Practice.

9. The use of this report is subject to the requirements of the Appraisal Institute relating

to review by its duly authorized representatives.

10. I have made a personal inspection of the property that is the subject of this report, as

well as an inspection of the comparable properties used in this report.

11. Annalee Mundy provided appraisal assistance to the person signing this certification

but is not signing this certification.

12. I have not performed any prior services regarding the subject property, as an

appraiser, or in any other capacity, within the 3-year period immediately preceding

acceptance of this appraisal report.

13. To the best of my knowledge and belief, no portion of the reported compensation of

the subject property consist of items which are non-compensable under New Mexico

State law;

14. Any increase or decrease in market value of the subject property prior to the date of

valuation, found to have resulted from the proposed use of the subject property

and/or the public improvement for which it is to be acquired, other than that due to

physical deterioration within the reasonable control of the owner, has been

disregarded in estimating the values reported herein;

15. As of the date of this report, I, Karen I. Mundy, MAI, have completed the

requirements of the continuing education program of the Appraisal Institute.



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I have concluded that, as of November 25, 2019, my opinion of compensation due to the

property owner for use of the 77,711 square foot, or 1.784-acre temporary construction

easement was:

FOUR HUNDRED FIFTY DOLLARS

($450.00)

__________________

____________________December 20, 2019

Karen I. Mundy, MAI Date

State Certified General Appraiser

NM-01219-G



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LIMITING CONDITIONS

1. Unless otherwise stated, the value appearing in this appraisal represents the opinion

of the market value or the value defined AS OF THE DATE SPECIFIED. Market

value of real estate is affected by national and local economic conditions and

consequently will vary with future changes in such conditions.

2. The value estimated in this appraisal report is gross, without consideration given to

any encumbrance, restriction or question of title, unless specifically defined.

3. This appraisal report covers only the property described and any values or rates

utilized are not to be construed as applicable to any other property, however similar

the properties might be.

4. Site size of the larger parcel and temporary construction easement was based on a

Survey prepared by Moy Surveys, Inc. dated September 7, 2019, which has been

included in the report.

5. It is assumed that the title to the premises is good; that the legal description is

correct; that the improvements are entirely and correctly located on the property

described and that there are no encroachments on this property, but no investigation

or survey has been made.

6. This appraisal expresses my opinion, and employment to make this appraisal was in

no way contingent upon the reporting of predetermined value or conclusion.

7. No responsibility is assumed for matters legal in nature, nor is any opinion of title

rendered. In the performance of our investigation and analysis leading to the

conclusions reached herein, the statements of others were relied on. No liability is

assumed for the correctness of these statements; and, in any event, the appraiser’s

total liability for this report is limited to the actual fee charged.

8. Neither all nor any part of the contents of this report (especially any conclusions, the

identity of the appraiser or the firm with which she is connected, or any reference to

the Appraisal Institute or any of its designations) shall be disseminated to the public

through advertising media, public relations media, news media, sales media or any

other public means of communication without our prior written consent and

approval.

9. It is assumed that there are no hidden or unapparent conditions of the property,

subsoil, or structures, which would render it more or less valuable. The Appraiser

assumes no responsibility for such conditions or the engineering, which might be

required to discover these factors.

10. Unless otherwise stated in this report, the appraiser has no knowledge of the

existence of hazardous substances, including without limitation asbestos,

polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may

or may not be present on the property, nor did the appraiser become aware of such

during the appraiser's inspection. The appraiser has no knowledge of the existence of

such materials on or in the property unless otherwise stated. The appraiser, however,

is not qualified to test for such substances or conditions.

11. If the presence of such substances, such as asbestos, urea formaldehyde foam

insulation, or other hazardous substances or environmental conditions, may affect



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the value of the property, the value estimated is predicated on the assumption that

there is no such proximity thereto that would cause a loss in value. No responsibility

is assumed for any such conditions, or for any expertise or engineering knowledge

required to discover them.

12. The Americans with Disabilities Act ("ADA") became effective January 26, 1992.

The appraiser has not made a specific compliance survey and analysis of this

property to determine whether or not it is in conformity with the various detailed

requirements of the ADA. It is possible that a compliance survey of the property,

together with a detailed analysis of the requirements of the ADA, could reveal that

the property is not in compliance with one or more of the requirements of the Act. If

so, this fact could have a negative effect upon the value of the property. Since the

appraiser has no direct evidence relating to this issue, possible noncompliance with

the requirements of ADA in estimating the value of the property has not been

considered.



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INTERIOR VIEW OF LARGER PARCEL FACING WEST;

PICTURE TAKEN NOVEMBER 25, 2019.

RIATA ROAD FACING SOUTH WITH SUBJECT ON RIGHT;

PICTURE TAKEN NOVEMBER 25, 2019.



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VIEW OF RIATA ROAD FACNG NORTH AND PROPOSED AREA OF BRIDGE

CONSTRUCTION;

PHOTO TAKEN NOVEMBER 25, 2019.

ADDITIONAL INTERIOR VIEW OF LARGER PARCEL FACING WEST;

PHOTO TAKEN NOVEMBER 25, 2019.



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Identification of the Larger Parcel

The larger parcel consists of a 24.069-acre tract of land located on the west side of Riata

Road, approximately one mile north of La Luz Gate Road, in unincorporated Otero County,

New Mexico. The tract is mostly unimproved and remains in its native desert state.

Identification of the Temporary Construction Easement

The temporary construction easement will extend west from Riata Road towards the center

of the larger parcel in an irregular shape that follows the north and south sides of the arroyo

that traverses the property east to west. The temporary construction easement (TCE) is

required by Otero County to build a bridge over the arroyo at Riata Road. The purpose of

the project is to improve access and safety during times of flooding to the residential uses

fronting Riata Road.

In my opinion, there are no damages to the larger parcel created by the temporary

construction easement since the duration of the easement is one year or less. There are

currently no improvements in place on the larger parcel and as such the property owners will

not be impacted. Once the bridge construction is finished, any future residential uses on the

property will benefit from the improved access and safety on Riata Road.

Identification of the Remainder

The remainder parcel will retain the same use characteristics as before the temporary

construction easement since no land is to be acquired. As mentioned above, the Riata Road

Bridge Construction project will benefit the larger parcel by improving access and safety.

Purpose, Intended Use and Intended User of the Appraisal

The purpose of this appraisal is to provide an opinion of compensation due to the property

owner for Otero County’s use of the temporary construction easement, which is also the

intended use of the report. The client and intended user of the report is Holt Mynatt

Martinez P.C., with Otero County named as an additional intended user.

Effective Date of Appraisal and Report Date

The effective date of appraisal for the subject property coincides with the date of property

inspection on November 25, 2019. The report date is reflected in the letter of transmittal.



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Legal Description

The subject property is described by lengthy metes and bounds description. Generally

speaking, the larger parcel is described as a tract of land in Section 29, Township 15 South,

Range 10 East, N.M.P.M., Otero County, New Mexico. The full legal description can be

found in the Addenda of the Report, as well as the legal description for the TCE.

Property History and Property Owner Contact

As per the Otero County Assessor’s office, the current owners of record for the subject

property are Carrel, Carrel and Lamphere, who have owned the property in excess of three

years. To the best of my knowledge, the subject property is not actively listed for sale.

Interest Appraised

The interest appraised herein consists of the fee simple estate of the larger parcel. An

easement is required for the TCE.

Definition of Fee Simple Estate

The Dictionary of Real Estate Appraisal (Fifth Edition 2010), by the Appraisal Institute,

defines Fee Simple Estate on page 78 as follows:

"Absolute ownership unencumbered by any other interest or estate,

subject only to the limitations imposed by the governmental powers

of taxation, eminent domain, police power, and escheat."

Definition of Easement

The Dictionary of Real Estate Appraisal (Fifth Edition 2010), by the Appraisal Institute,

defines an Easement on page 63 as follows:

"The right to use another’s land for a stated purpose.”

Definition of Fair Market Value

Fair market value (FMV) is the price that property would sell for on the open market. It is

the price that would be agreed on between a willing buyer and a willing seller, with neither

being required to act, and both having reasonable knowledge of the relevant facts.

IRS Publication 561



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Scope of Work

As previously mentioned, the client requested an opinion of compensation due to the

property owner for use of the temporary construction easement required by Otero County

for the Riata Road Bridge Construction project. To this end, Karen I. Mundy inspected the

subject property on November 25, 2019. Property history was obtained from the Otero

County Multiple Listing Service (MLS) and the Otero County Assessor’s Office.

Site size for the larger parcel and TCE were based on a Survey prepared by Moy Surveying

dated September 7, 2019, which can be found on Page 22 of the report. The owners’

attorney, Mr. R. Keith Thompson, the attorney for Mr. Lamphere, was emailed on

December 12, 2019 regarding the project but no response was received. A copy of the email

has been included in the Addenda of the report.

A study of the subject neighborhood was conducted with regard to access, land uses and

trends, demographics and market demand factors. Once all the data was gathered, analysis

of the subject property was made with regard to its highest and best use.

There are three standard valuation techniques used to provide an opinion of market value.

These include the Cost Approach, Sales Comparison Approach and the Income Approach.

In as much as the larger parcel reflects vacant land, only the Sales Comparison Approach

was applicable.

In order to perform an analysis via the Sales Comparison Approach, residential land sales

were compared to the larger parcel. Land sales were obtained from the Otero County

Multiple Listing Service. These sales were confirmed with the grantor or the grantee, or

with another party involved with the sale considered to be reliable, such as a real estate

broker or appraiser, and were inspected by the appraiser.



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SUMMARY OF AREA AND NEIGHBORHOOD DATA

As previously mentioned, the larger parcel is located on the west side of Riata Road,

approximately one mile north of La Luz Gate Road, in unincorporated Otero County, New

Mexico. Otero County is located in south central New Mexico, approximately 70 miles

northeast of Las Cruces, 210 miles south of Albuquerque and 290 miles west of Lubbock,

Texas.

Alamogordo is the county seat of Otero County, and is the metropolitan center of the

Tularosa Basin. The city is the commercial and governmental center for the county.

Holloman Air Force Base, which is located in Alamogordo, is the home of the F-117 Stealth

Fighter Wing, the German Air Force in the United States and the High-Speed Test Track.

According to their website, Holloman Air Force Base supports about 21,000 people,

including active duty soldiers, retirees, their families, and others. As per the Alamogordo

Daily News, the German Air Force plans to leave Holloman Airforce Base by 2019.

Also located near Alamogordo is the N. White Sands Missile Range, the second largest

overland testing range in the world. Located approximately 68 miles to the west of

Alamogordo is the City of Las Cruces, which is the second largest city in New Mexico. The

following discussion represents information obtained from the University of New Mexico’s

Bureau of Business and Economic Research Department, the U.S. Census and from

Holloman Air Force Base websites.

Social

The above chart describes the population of Otero County. The estimated 2017 population

of Alamogordo was 31,248 people, an increase of 2.78% from the 2010 population of

30,403. The 2010 population of 30,403 reflects a decline of 14.6% from the population in



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2000 of 35,582. Total personnel at Holloman Air Force Base as per the 2013 Fact Sheet

was 11,964 people, up slightly from 11,659 people in 2010.

Economic

The above chart describes the income and poverty levels for Otero County. Principal crops

for Otero County include cattle, hay, fruit, nuts, sheep and chile. Otero County is a major

source of pistachio nuts and pecans, and there are wineries near Tularosa. Significant

impact on the area will occur due to the recent completion of a commercial spaceport,

Spaceport America, located near Upham, New Mexico, approximately 50 miles northeast of

Las Cruces.

Essentially, the spaceport will allow private companies to create vehicles, conduct research

and send private citizen’s to space, as opposed to government-funded astronauts. On

October 22, 2010, the nearly 2-mile long and 200-foot wide runway was dedicated.

According to the Spaceport America website, on October 17, 2011, New Mexico Governor

Susana Martinez and Sir Richard Branson dedicated the Virgin Galactic “Gateway to

Space.” The Gateway to Space is a 120,000 square foot combined hangar and terminal

facility that will support several spaceships.

The Gateway will also house all of the company’s astronaut preparation and celebration

facilities, a mission control center and a friends and family area. There is also space

committed to public access via the planned New Mexico Spaceport Authority Visitor

Experience. Indicated cost of the Gateway was $209 million and the building meets LEED

gold standards for environmental quality.



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According to a May 10, 2019 press release, Sir Richard Branson announced that Virgin

Galactic will move to Spaceport America in summer 2019 from Mojave, California.

According to the article, this announcement signals the final countdown to a regular

spaceflight service for paying passengers and science research from Spaceport America.

A study conducted by NMSU projects a payroll of $300 million and employment of 2,300

people in the spaceport’s fifth year of operation. A similar study by a private sector group

estimates that by 2020, the projected spaceport will generate $750 million in revenue and

employ more than 3,500 people.

The City of Alamogordo and Otero County are closely linked to Holloman Air Force Base

and White Sands Missile Range. The two bases represent a combined military-civilian

annual payroll of more than $230 million and an economic impact of more than $450

million to the local economy.

Gerald Champion Regional Medical Center occupies a $32 million facility containing

131,000 square feet on 23 acres of a 66-acre site. The one-story building was designed in

the “medical mall” concept for medical care that focuses on outpatient service.

The emergency room includes 15 beds, plus four trauma beds and six beds in the emergency

walk-in care center. The facility also provides a helipad. General surgical, labor/delivery,

nursery, food court and an outdoor patio are some of the features of this new facility. The

former hospital is still leased by Gerald Champion and portions of it are used for a dialysis

center.

Environmental

The average annual temperature in Otero County is 61 degrees and the average annual

snowfall is four inches. The Sacramento Mountain range is the southwest tip of the Rocky

Mountain chain within the boundary of the United States. Cloudcroft, with an average

elevation of 9,000 feet, offers one of the southernmost ski locations in the United States.

A large attraction for the area is White Sands National Park. White Sands is a unique place,

full of white sand dunes. The dunes are not technically sand, but in fact are comprised of

gypsum. According to the National Park Service website, “only a handful of gypsum dune

fields are known, and the white sands dune field is by far the world's largest, covering 275

square miles.” The same website says that White Sands was declared a National Monument

in April 29, 1934.



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The closest major airport is located in El Paso, Texas, approximately 85 miles southwest of

Alamogordo. Carriers in El Paso include Southwest, American, America West, Delta and

United Airlines.

Development

New commercial development has been concentrated along the White Sands Boulevard

corridor. Buffalo Wild Wings recently opened, and joined several other nationally

franchised restaurants and retailers. Desert Sun Toyota is a car dealership that was recently

built on N. White Sands Boulevard. A Wal Mart Super Center was constructed at New

York Avenue and First Street, just east of White Sands Boulevard, and ancillary commercial

development has been on-going in conjunction with the traffic fueled by the Wal Mart Super

Center. Home Depot and Lowes Improvement stores were constructed in the northern

portion of the City on the east side of White Sands Boulevard.

Most residential development is single-family housing located along the north and eastern

perimeter of the city limits, and in the vicinity of Desert Lakes Country Club in the south

portion of the city.

With regards to the Alamogordo housing market, 496 homes sold for the period from

November 30, 2015 through November 29, 2016 ranging in price from $9,000 to $575,000,

with a median price of $125,000 and 60 days on the market. For the period from November

30, 2016 through November 29, 2017, 518 homes sold in within Alamogordo ranging in

price from $12,900 to $556,750, with a median price of $127,750 and 60 days on the

market. For the period from November 30, 2017 through November 29, 2018, 630 homes

sold within Alamogordo ranging from $10,600 to $589,000, with a median sales price of

$138,750 and 53 days on the market. For the period from November 30, 2018 through

November 29, 2019, 690 homes sold within Alamogordo ranging from $7,000 to $484,500,

with a median sales price of $138,000 and 44 days on the market. This information shows

that over the previous four years there has been an overall increasing trend in median sales

price, with an average increase of 2.6% per year.

There are currently 222 active listings in the City of Alamogordo, which equates to a 3.9-

month supply based on average absorption for the past 12 months of 57.5 homes per month.

This shows that the supply is currently in balance. Median asking price is $164,700.

Conversations with market participants indicates a strong real estate market in Alamogordo.



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Conclusion

Economic indicators for the area are stable. This will result in stable and increasing

property values in the future for Otero County and the City of Alamogordo in the near

future, however market conditions may decline slightly in 2020 as a result of the German

Air Force terminating their contract with Holloman Airforce Base.



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SURVEY OF LARGER PARCEL AND TCE

TCE



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DESCRIPTION OF LARGER PARCEL AND TCE

Location

The larger parcel is located on the west side of Riata Road, just south of 96 Riata Road,

north of Canary Road, south of High Mesa Road and approximately one mile north of La

Luz Gate Road, in unincorporated Otero County, New Mexico. The temporary construction

easement extends west from Riata Road toward the center of the property and partially

follows the north and south sides of the arroyo that traverses the property. As mentioned

throughout the report, the temporary construction easement will be used by Otero County

for the Riata Road Bridge Project.

Site Size, Shape and Access

The larger parcel contains 24.069 acres remains in its native desert state with no

improvements noted. The site has approximately 690 front feet on the west side of Riata

Road and an average depth of roughly 1,650 feet. The larger parcel is slightly irregular in

shape, and access is provided from Riata Road, a paved two-lane publicly maintained

roadway.

The TCE contains 1.784 acres, or 77,711square feet and is irregular in shape as shown on

the survey on the preceding page. Access to the larger parcel and TCE is considered to be

average. Riata Road interchanges with La Luz Gate Road, approximately one mile south of

the subject.

Adjoining Uses

The land uses fronting Riata Road consists of rural residential development.

Utilities

Domestic wells and private septic systems are required. Electric is available for extension to

the larger parcel.

Topography and Soil

The majority of the topography of the larger parcel is generally level and at grade with Riata

Road. As previously mentioned, the site remains in its native desert state. An arroyo

traverses the property east to west. The larger parcel, topography and soil are considered to



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be suitable for future rural residential development with the exception of the property

affected by the arroyo.

Hazardous Waste Sites

Based on my visual inspection of the larger parcel, no hazardous waste contamination was

evident. However, an environmental audit of the subject by a qualified expert is necessary

to determine whether or not any current or potential toxic waste, hazardous materials or

undesirable substances may be affecting the subject site.

Easements and Encroachments

According to the survey provided by the client prepared by Moy Surveying dated September

9, 2019, no adverse easements or encroachments were noted. As mentioned throughout the

report, the 77,711 square foot temporary construction easement will extend from the

northeastern corner of the property towards the center of the property, partially following the

north and south sides of the arroyo, and will be less than one year in duration.

Flood Hazard Zone

As per Map Number 35035C0950D, the larger parcel is located in Flood Zone “X”. Flood

Zone “X” indicates areas determined to be outside the 500-year flood plain. A Firmette

has been included immediately following this section of the report.

Zoning

The subject property is not zoned as it is located in unincorporated Otero County. Generally

speaking, the land uses surrounding the subject property are rural residential in nature.

Assessed Value and Taxes

The larger parcel is identified as account number R026608 and is assessed for a total of

$49,317. Property taxes in 2019 were $413.28.

Conclusion

The subject property appears to be suitable for future rural residential uses. In my opinion,

the larger parcel will not be damaged by the County’s use of the temporary construction

easement and will retain the same access, use and shape attributes once the temporary

construction easement is abandoned by the County.



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ASSESSOR’S AERIAL MAP



26

FLOOD ZONE MAP



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HIGHEST AND BEST USE

The Dictionary of Real Estate Appraisal, Fourth Edition, defines highest and best use as

follows:

"The reasonably probable and legal use of vacant land or an improved property, which

is physically possible, appropriately supported, financially feasible, and that results in

the highest value. The four criteria the highest and best use must meet are legal

permissibility, physically possibility, financially feasibility and maximum

productivity."

Additionally, the Appraisal of Real Estate, Thirteenth Edition, states that an understanding

of market behavior is essential to the concept of highest and best use. Market forces create

market value, so the interaction between market forces and highest and best use is of crucial

importance. When estimating market value, highest and best use analysis identifies the most

profitable, competitive use to which a property can be put. Therefore, highest and best use

is a market driven concept.

In estimating highest and best use there are essentially four criteria that must be met. As

mentioned above, the highest and best use must be legally permissible, physically possible,

financially feasible and maximally productive. These criteria are most often considered

sequentially since tests of legal permissibility and physical possibility must be applied

before the tests of financial feasibility and maximal productivity can be applied.

The first criteria to be considered for a site are its legally permissible uses. Private

restrictions, zoning and building codes, historic district controls, and environmental

regulations must be investigated because they preclude many potential uses. After

determining a site's legally permissible uses, the physically possible uses of a site must be

considered. The size, shape area, terrain, and accessibility of a parcel of land and the risk of

natural disasters such as floods or earthquakes affect the uses under which it may be

developed. The utility of a parcel may also depend on its frontage and depth.

After considering the legally permissible and physically possible uses of a site, it is

necessary to determine which of the legally permissible and physically possible uses of the

site are actually financially feasible. All uses that are expected to produce a positive return

are regarded as financially feasible. Of the financially feasible uses, the one that produces

the highest residual land value consistent with the rate of return warranted by the market for

that use is the highest and best use.



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In summary, the following tests must be met in estimating the highest and best use. The use

must be legal. The use must be probable, not speculative or conjectural. There must be a

profitable demand for such use and it must return to the land the highest net return for the

longest period of time. These tests have been applied to the subject property. In arriving at

the estimate of highest and best use, the subject site was analyzed as-vacant.

Highest and Best Use - As Vacant

Legally Permissible

The larger parcel is not subject to zoning due to its location in unincorporated Otero County.

As such, a single-family rural residential or agricultural use are legally permissible uses of

the larger parcel.

Physically Possible

The larger parcel is slightly irregular in shape with roughly 690 front feet on the west side of

Riata Road. The topography is generally level and at grade with Riata Road, with the

exception of the portion of the property that the arroyo traverses. Domestic wells and

private septic systems are required and the larger parcel is not located in a flood zone.

Single-family rural residential development is a physically possible use of the larger parcel.

Financially Feasible

Based on the legally permissible and physically possible uses of the larger parcel, single-

family rural residential development is a financially feasible use of the larger parcel.

Maximally Productive

The maximally productive use of the larger parcel as vacant is single-family rural residential

development as market demand warrants.



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VALUATION

As discussed in The Appraisal of Real Estate, Twelfth Edition, the ultimate goal of the

valuation process is a well-supported value conclusion that reflects all the factors that

influence the market value of the property being appraised. To achieve this goal, the

property is studied from three different viewpoints, which correspond to the three traditional

approaches to value. These approaches are known as the Cost Approach, Sales Comparison

Approach, and Income Approach, and are briefly described as follows.

The Cost Approach is based on the premise that market participants relate value to cost. In

the Cost Approach the value of a property is derived by adding the estimated value of the

land to the current reproduction cost or replacement cost of the improvements and then

subtracting the amount of depreciation in the structures from all causes. This approach was

not applicable in the valuation process since the larger parcel reflects vacant land.

The Sales Comparison Approach is based on the premise that market value is reflected in

the sales prices of properties deemed to be comparable to the property being appraised, and

is the most useful and reliable when a number of similar properties have sold recently. In as

much as the subject reflects vacant land, this was the only applicable approach in the

valuation process.

In the Income Approach, the present value of the future benefits of property ownership is

measured. Because rural residential tracts of land are seldom transferred via a ground lease,

the Income Approach was not considered to be applicable in the valuation of the subject.



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31

SALES COMPARISON APPROACH

As outlined in The Appraisal of Real Estate, Twelfth Edition, the Sales Comparison

Approach is the process in which a value estimate is derived by analyzing the market for

similar properties and comparing these properties to the subject property. Often these

elements are also analyzed in the Sales Comparison Approach to determine the adjustments

to be made to the sales prices of comparable properties. The comparative techniques of

analysis applied in the Sales Comparison Approach are fundamental to the valuation

process.

In the Sales Comparison Approach, market value is estimated by comparing the property to

similar properties that have recently sold, are listed for sale or are under contract. A major

premise of the Sale Comparison Approach is that the market value of a property is directly

related to the prices of comparable, competitive properties.

To this end, I have researched land sales in the Alamogordo area for comparison to the

larger parcel. The sales were compared on a price per acre unit of comparison consistent

with the motivations of the local market. Please refer to the table below for a description of

the comparable land sales used in my analysis and the Land Sales Location Map on the

preceding page. Land Sale Data sheets can be found starting on Page 34 of the report.

Sale Location Sale Date Sales Price Size (Acres) Price/Acre

1 Lot 8 Marin Drive,

Tularosa

Sept. 2019 $20,000 5.05 Ac. $3,960

2 36 Lemin Avenue,

Alamogordo

Jan. 2019 $32,500 15.44 Ac.

$2,105

3 Lot 6 Moonshine Trail,

Alamogordo

Feb. 2018 $10,000 5.0 Ac. $2,000

4 N. Albatross Road,

Tularosa

Apr. 2017 $39,500 19.85 Ac. $1,990

Subj. W. Side Riata Road --- --- 24.069 Ac.

---

Discussion of Sales

Land Sale 1 is located at lot 8 Marin Drive in Tularosa and reflects cleared land ready for

residential development. This lot has central water and sewer available provided by the

Village of Tularosa. This sale also reflects a higher price per acre than that achievable by

the subject due to its smaller size. The property sold for $20,000, or $3,960 per acre, in

September 2019 after being on the market for 480 days. This property is superior to the

subject property in terms of availability of utilities and topography.



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Sale 2 is located at 36 Lemin Avenue in Alamogordo. This property contains 15.44

acres, and sold for $32,500, or $2,105 per acre, in January 2019. This property is similar

to the subject in terms of size and topography but slightly inferior in terms of access.

Sale 3 is located at Lot 6 Moonshine Trail in Alamogordo. This property contains 5.0

acres and sold in February of 2018 for $10,000, or $2,000 per acre. In terms of location

and topography this property is similar to the subject larger parcel but is inferior in terms

of access, as this property is located off of an unpaved road.

Sale 4 is located on N. Albatross Road west of Tularosa and sold for $39,500, or $1,990

per acre, in April 2017. This property is similar to the subject in terms of topography but

slightly inferior in terms of location. According to Mr. Tommie Herrell, the listing agent,

market conditions for vacant rural residential properties have remained stable from this

property’s 2017 date of sale to the present.

Conditions of Sale

Property Right/Financing

The sales were verified with regards to property rights conveyed and financing terms (cash

equivalency). All of the sales reflect fee simple transactions purchased for cash or its

equivalent, and no adjustment for financing or property rights were required.

Market Conditions

A comparison of the sales did not indicate an adjustment for changing market conditions

was appropriate.

Motivations of Seller/Buyer

My verification of the sales used in this analysis revealed that none of the sales were distress

situations and no adjustment was deemed warranted for buyer or seller motivations.

Rather than adjust the sales quantitatively, the appraisers have ranked them by price per acre

in relation to the larger parcel. A summary of this can be seen in the chart on the following

page.



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Sale # Price Per Acre Ranking

1 $3,960 Superior

2 $2,105 Slightly Inferior

4 $1,990 Slightly Inferior

3 $2,000 Inferior

Giving greatest weight to Sales 2, 3, and 4 and secondary weight to Sale 1, I have reconciled

at a value per acre for the subject property of $2,500.

Opinion of Fair Market Value – Larger Parcel

Multiplying the opinion of fair market value per acre of $2,500 by the 24.069 acres

contained in the larger parcel results in an opinion of fair market value of $60,173, or

$60,200 rounded.

Opinion of Fair Market Value – Remainder Before Acquisition

The opinion of market value for the remainder parcel before acquisition is the same as the

opinion of fair market value of the larger parcel since the construction easement is

temporary and not the fee simple estate.

Opinion of Fair Market Value – Temporary Construction Easement

Multiplying the opinion of fair market value per acre of $2,500 by the 1.784 acres contained

in the temporary construction easement results in an opinion of fair market value of $4,460.

However, the fee simple estate is not being acquired but rather a temporary easement and an

allocation of 10% for the easement was applied based on market information for ground

lease rates. The duration of the TCE will be one year or less.

Multiplying 10% by the estimated fee simple value of $4,460 results in total compensation

for the utility easement of $446, or $450 rounded.



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Land Sale One

Address: Lot 6 Marin Drive

Location: West of Tularosa

Otero County Assessor Account #: R025905

Grantor: Jones Living Trust

Grantee: Gerald and Patty Gattis

Sale Date: September 23, 2019

Reception #: 201907506

Property Rights: Fee Simple

Marketing Time: 480 Days

Conditions of Sale: Arms-Length Transaction

Financing: Cash to the Seller

Sale Price: $20,000

Verification: Ms. Rebekah Graham and MLS # 158614

Land Data

Zoning: Village of Tularosa

Topography: Level

Utilities: Village of Tularosa Water and Sewer

Shape: Rectangular

Land Size: 5.05 Acres

Sale Price/Acre: $3,960

Remarks:

This property reflects a single-family residential lot with central water and sewer available.



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Land Sale Two

Address: 36 Lemin Avenue

Location: North of Alamogordo


Grantor: Karen Steinhoff Gronewold

Grantee: Stuart and Tina Gross

Sale Date: January 1, 2019





Financing: Seller Financed

Sale Price: $32,500

Verification: Ms. Annie Daniels and MLS # 158991

Land Data

Zoning: Not Zoned, Unincorporated Otero County

Topography: Generally Level/Native Desert

Utilities: Domestic Well and Private Septic Required

Shape: Irregular



Remarks:

This property reflects unimproved land west of Lemin Avenue and according to the selling broker, Ms.

Annie Daniels, this area is improving.



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Land Sale Three

Address: Lot 6 Moonshine Trail

Location: Southwest of Tularosa


Grantor: George and Myong Chadwell

Grantee: Royce Lee and Kimberly Wagner

Sale Date: March 8, 2018





Financing: Cash

Sale Price: $10,000

Verification: Ms. Sandra Krall and MLS # 157654

Land Data



Utilities: Private well and septic required

Shape: Irregular



Remarks:

This property reflects unimproved land on the southwest side of Moonshine Trail and according to the

selling broker, this property was purchased by a neighboring property owner.



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Land Sale Four

Address: East Side of N. Albatross Road

Location: Southwest of Tularosa


Grantor: Herrell Properties

Grantee: Salto

Sale Date: April 18, 2017

Reception #: Real Estate Contract as per Mr. Tommie Herrell


Marketing Time: Unknown


Financing: Seller Financed

Sale Price: $39,500

Verification: Mr. Tommie Herrell and MLS # 156286

Land Data



Utilities: Domestic Well and Private Septic Required

Shape: Rectangular



Remarks:

This property reflects unimproved land and according to Mr. Tommie Herrell, the listing and selling

agent, market conditions have remained stable since this property’s 2017 date of sale.



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QUALIFICATIONS OF KAREN I. MUNDY, MAI

PROFESSIONAL EXPERIENCE:

MAI, Designated Member of the Appraisal Institute - #11,288

State Certified General Real Estate Appraiser, New Mexico-001219-G

QUALIFICATIONS OF THE APPRAISER

EDUCATION BACKGROUND AND SPECIAL TRAINING:

Graduate from the University of Tampa, 1986, with Bachelor of Science Degree in with a

major in Finance, and a minor in Economics.

Qualified as an Expert Witness in United States Bankruptcy Court in Albuquerque, New

Mexico (1998); the United States Court of Federal Claims in Washington, D.C. (2000); New

Mexico District Court, Las Cruces, New Mexico (2000, 2002, 2003 and 2004); Wyoming

District Court, Pinedale, Wyoming (2002); Lincoln County District Court, Carrizozo, New

Mexico (2006).

Treasurer - Rio Grande Chapter of the Appraisal Institute – 2002

Secretary - Rio Grande Chapter of the Appraisal Institute – 2003

Board of Directors - Rio Grande Chapter of the Appraisal Institute – 2012-2014

Successfully completed or challenged the following real estate courses from the Appraisal

Institute:

Course 110 and 120 Real Estate Appraisal Principles and Procedures - 1992

Course 310- Basic Income Capitalization - 1993

Course 510 - Advanced Income Capitalization - 1993

Course 530 - Highest and Best Use Analysis - 1994

Course 540 - Report Writing and valuation Analysis - 1995

Course 550 - Advanced Applications - 1994

Standard of Professional Practice Parts A and B – 1997, 2003

Demonstration Appraisal - 1996

General Comprehensive Examination - 1997

Course 720 - Condemnation Appraising: Advanced Applications – 2003

Successfully completed the following real estate courses from the American Society of Farm

Managers and Rural Appraisers:

Appraising Natural Resources - 2002

Appraising Ag Land in Transition – 2005

SEMINARS:

The Appraisal of 2-4 Family Units - Appraisal Institute; August 1997

Eminent Domain and Condemnation Appraisal - Appraisal Institute; April 1998

Small Hotel/Motel Valuation - Appraisal Institute; September 1998

Lease Abstracting and Analysis – Appraisal Institute; February 1999

Case Studies in Highest and Best Use - Appraisal Institute; June 2000

Uniform Standards of Professional Appraisal Practice - Appraisal Institute; July 2001

Feasibility and Investment Timing- Appraisal Institute; January 2002

Analyzing Operating Expenses - Appraisal Institute; June 2003

Valuation of Detrimental Conditions in Real Estate - Appraisal Institute; June 2003

Business Practices and Ethics - Appraisal Institute; June 2003



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7- Hour National USPAP Update – Appraisal Institute; January 2005

Professionals Guide to the URAR - Appraisal Institute; January 2005

Subdivision Valuation - Appraisal Institute; April 2006

Evaluation Commercial Construction - Appraisal Institute; October 2006

Uniform Standards for Federal Land Acquisitions – Appraisal Institute; March 2007

7-Hour National USPAP Update – Appraisal Institute; April 2007

Forecasting Revenues - Appraisal Institute; June 2007

Introduction to Valuing Green Buildings - Appraisal Institute; September 2008

Attacking and Defending the Appraisal in Litigation - Appraisal Institute; October 2008

Introduction to FHA Appraising - Appraisal Institute; April 2009

7- Hour National USPAP Update – McKissock School; April 2009

7- Hour National USPAP Update - Appraisal Institute; February 2010

Business Ethics and Practices - Appraisal Institute; September 2010

Appraising Distressed Commercial Real Estate - Appraisal Institute; April 2011

7-Hour National USPAP Update - Appraisal Institute; January 2012

Practical Regression Using Microsoft Excel - Appraisal Institute; October 2012

Advanced Market Analysis – Appraisal Institute – April 2013

Separating Personal Property and Real Property - Appraisal Institute – June 2013

7-Hour National USPAP Update - Appraisal Institute; January 2014

7-Hour National USPAP Update- Appraisal Institute; January 2016

New Mexico Regional Economic Forecast Update-UNM; February 2017

General Appraisal Site Valuation and Cost Approach – Appraisal Institute; March 2017

7-Hour National USPAP Update- ASFMRA; February 2018

Commercial Valuation of Solar – Appraisal Institute; January 2019

EMPLOYMENT:

February 1997; Owner, Mundy Appraisal Services

April 1996 to January 1997; Fee Appraiser, Mesilla Valley Appraisal Services.

January 1994 to April 1, 1996; Senior Appraiser, Callaway and Price, Inc., Fort Pierce, FL.

November 1990 to December 1993: Fee Appraiser, Pardue Heid Church Smith and Waller,

Inc., West Palm Beach, Florida.

REPRESENTATIVE CLIENTS:

United States GSA, Wells Fargo Bank, Bank of America, Bank of the West, Citizen’s Bank,

US Bank, First New Mexico Bank, Pioneer Bank, Bank ‘34, BBVA Compass Bank, New

Mexico State Land Office, City of Las Cruces, Dona Ana County, Village of Hatch, City of

Sunland Park, City of Alamogordo, Village of Columbus, Hatch Valley Public Schools, Las

Cruces Public Schools, New Mexico State Highway and Transportation Department,

Attorneys and Private Entities.

REPRESENTATIVE ASSIGNMENTS:

Commercial and Residential Property including but not limited to:

Single and Multifamily Complexes, Hotels and Motels; Professional Office Complexes,

Eminent Domain, Industrial Parks, Warehouses, Shopping Centers and Free-Standing Retail

Buildings, Vacant Land, Subdivision Analysis; Mobile Home Parks; Farm & Ranch, Citrus

Groves, Special Purpose: Post Office, Nursing Home, Banking Facility,

Restaurant, Convenience Stations, Packing House, Easements.



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ADDENDA



41

LEGAL DESCRIPTION OF LARGER PARCEL AND TCE



42

LEGAL DESCRIPTION OF LARGER PARCEL AND TCE – PAGE 2



43

PROPERTY OWNER CONTACT



44

ENGAGEMENT DOCUMENT



45

KAREN I. MUNDY’S LICENSE

456 n. alameda boulevard appraisal report

Documents