HomeMy Public PortalAboutCOW A 2013-07-041
MUNICIPALITY OF THE DISTRICT OF CHESTER
COMMITTEE OF THE WHOLE
Thursday, July 4, 2013 – 8:45 a.m.
AGENDA
1. MEETING CALLED TO ORDER
2. MINUTES OF PREVIOUS MEETING:
2.1 Committee of the Whole – June 20, 2013
3. CAO REPORT.
4. MATTERS ARISING:
4.1 Memo from CAO - By-Law #72 – Private Street Improvement and Maintenance By-Law
re Administration Fee (Section 4).
4.2 Update - Access to Nature Conservancy Lots
4.3 Lordly Park Property
4.4 UNSM Caucus Structure Review.
5. GRANT REQUESTS:
5.1 Essential Services
(a) South Shore Community Justice
5.2 Regional Services
(a) Christmas Daddies (an annual donation from Council – no requests received)
(b) Lunenburg County Crime Prevention Association
(c) Lunenburg County Seniors Advisory Committee
(d) Lunenburg Queens Volunteer Partnership
(e) United Way of Lunenburg County (Council has matched employee donations – last year
employee donations were approximately $960.00)
5.3 Local Non-Profit
(a) Chester & Area Family Resource Centre
(b) Chester Playhouse
(c) Hubbards Area Recreation Association
(d) Municipality of Chester Transportation Society (Community Wheels)
(e) New Ross Family Resource Centre
(f) New Ross Regional Development Society (Council and Tourism Requests)
(g) Through the Years Community Day Care
5.4 Community Halls
(a) District 1 Community Centre
(b) East Chester Recreation Association
5.5 National/Provincial, Cultural/Health Services
(a) NS Ground Search & Rescue (Advertisement in Wilderness Guide)
(b) NS/Nunavut Command Legion Booklet
(c) Victorian Order of Nurses
(d) Zoe Valle Memorial Library
2
(e) Christmas Tree Council of Nova Scotia
5.6 Discussion re: Grant request from New Ross Legion
6. CORRESPONDENCE
6.1 Email from UNSM dated June 25, 2013 regarding School Review Process.
6.2 Memo from Municipal Clerk dated June 19, 2013 regarding the request from residents
and the Press whether the agendas and information for upcoming meetings can be put
on-line.
6.3 Memo from Municipal Clerk dated June 19, 2013 regarding Minute Taking and Posting
of Minutes.
7. NEW BUSINESS.
8. ADJOURNMENT.
In Camera following regular session under Section 22 of the MGA if required
Narrative Appraisal Report on the Subject Property
located at:
Lot #1 (18,200.0sf),
Lot #2 (10,200.0sf)
Both being portion of PID# 60089760
82 Union Street, Village of Chester,
Municipality of the District of Chester,
Nova Scotia.
Submitted to:Mr. Matthew S. Davidson P. Eng.
Public Works Director
Municipality of the District of Chester
151 King Street, PO Box 369,
Chester, NS
B0J 1J0
Submitted by:Kenneth T. Young, AACI, P.App
Broker / Owner / Senior Appraiser
NSREAA Registration ¹ 302146
Young & Associates Real Estate Appraisals & Consultants
450 Lahave Street, Unit 17, Box 253
Bridgewater Nova Scotia, B4V 4A3
ph: 902.531.2522 or fax: 902.530.3284
email: kenneth.young@yahoo.ca
Kenneh T. Young, AACI, P.App
Broker / Owner /Senior Appraiser
NSREAA - Registration ¹ 302146
Mailing Address
450 Lahave Street, Unit 17, Box 253
Bridgewater, Nova Scotia, B4V 4A3
Street Address
557 King Street, Suite 2B
Bridgewater, Nova Scotia, B4V 1B3
Ph: 902.531.2522
Fax: 902.530.3284
Email: kenneth.young43@yahoo.ca
June 11th, 2013
Mr. Matthew S. Davidson P. Eng.
Public Works Director
Municipality of the District of Chester
151 King Street, PO Box 369,
Chester, NS
B0J 1J0
RE:Narrative Appraisal Report on the Subject Property located at:
Lot #1 (18,200.0sf), Lot #2 (10,200.0sf) Both being portion of PID# 60089760
82 Union Street, Village of Chester, Municipality of the District of Chester, Nova Scotia.
Dear Mr. Davidson:
In accordance with your request and authorization, I have inspected the subject properties under
appraisal on May 15th, 2013, investigated and gathered the necessary data to make certain
analyses that have enabled me to form an opinion of the Market Value of the Fee Simple Interest
of the subject property at the “Highest & Best Use”. It is understood that this report will be utilized
for possible disposal purposes of the subject properties. Market Value, as employed, is outlined
in this report.
This Narrative Appraisal Report is limited to the client only for the estimation of Market Value of the
subject property under appraisal. All of the approaches to value are listed that have been utilized
within the appraisal report.
As a result of this investigation, and subject to the assumptions and limiting conditions contained
in this report, and that the two lots are assumed to be subdivided, complete and available for
immediate development, it is our opinion that the estimated value of the fee simple interest in the
subject properties, based on a land area of the 2 lots identified within this report, as of May 15th,
2013 is
Young & Associates Real Estate Appraisals & Consultants
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letter of transmittal continued....
Market Value Of Lot #1
$54,600.00
(fifty four thousand and six hundred dollars)
Market Value Of Lot #2
$5,300.00
(fifty three hundred dollars)
The attached pages describe the methods and approaches to value that have been employed and
contain some of the data gathered during the course of the investigation.
I certify that we have no present or prospective interest in the above captioned property of any kind
whatsoever. This valuation has been performed in accordance with the Canadian Uniform
Standards of Professional Appraisal Practice of the Appraisal Institute of Canada.
I trust that you will find the enclosed report to be satisfactory and should you require any further
clarification or additional information, please do not hesitate to contact the undersigned.
Respectfully Submitted,
Kenneth T. Young, AACI, P.App
Broker / Owner / Senior Appraiser
NSREAA Registration ¹ 302146
Young & Associates Real Estate Appraisals & Consultants
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Contingent and Limiting Conditions
1.This report is prepared at the request of the client identified on the cover page of this
appraisal report as of the effective date May 15th, 2013. The purpose of the appraisal is to
estimate the Market Value of the subject properties, for disposal purpose. It is not reasonable for
any other person, other than the client, to rely upon this appraisal without first obtaining written
authorization from the Municipality of the District of Chester. There may be qualifications,
assumptions, or limiting conditions in addition to those set out below relevant to that person’s
identity or his intended use. The report is prepared on the assumption that no other person or
persons will rely on it for any other purpose except for the purpose intended and that all liability to
all such persons is denied.
2. While expert in appraisal matters, the author is not qualified and does not purport to give
legal advice. It is assumed that:
a)the land description employed in this report is correct;
b)title to the property is good and marketable;
c) there are no encroachments, encumbrances, restrictions, lease or covenants that
would in any way affect the valuation, except as expressly noted herein;
d) the existing use is a legally conforming use which may be continued by any
purchaser from the existing owner;
e) rights-of-way, easements, or encroachments over other real property and leases or
other covenants noted herein are legally enforceable; and
f) the final estimate of value is of the land only, and is subject to there being no
contamination of any kind to the site.
Because these assumptions have been made, no investigation, legal or otherwise, has been
undertaken which would verify these assumptions except as expressly noted herein.
3. The Author is not a qualified surveyor. Sketches, drawings, diagrams, photographs, etc.
are presented in this report for the limited purpose of illustration only and are not to be relied upon
in themselves.
4. No investigation has been undertaken with the local zoning office, the fire department, the
building inspector, the health department or any other government regulatory agency unless such
investigations are expressly represented to have been made in this report. The subject properties
must comply with such government regulations and, if it does not comply, its noncompliance may
affect market value. To be certain of compliance, further investigations may be necessary.
5. Neither possession of this report nor a copy of it carries with it the right of publication. All
copyright is reserved solely to Municipality of the District of Chester. It shall not be disclosed,
quoted from or referred to, in whole or in part, or published in any manner. This report is subject
only to confidential review by the Appraisal Institute of Canada as provided in the Code of Ethics,
Standards of Professional Conduct and Standards of Professional Practice of the Appraisal
Institute of Canada.
Young & Associates Real Estate Appraisals & Consultants
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contingent and limiting conditions continued.....
6. The Author is not qualified to give engineering advice. It is assumed that there are no
patent or latent defects in the subject’s improvements, that no objectionable materials are present,
that they are structurally sound and in need of no immediate repairs, unless expressly noted within
this report. No soil tests have been done, nor have tests been done of the heating, plumbing,
electrical, or other systems and, for the purpose of this report, they are assumed to be in good
working order.
7. Market data has been obtained, in part, from documents at the land registry office, or as
reported by the Real Estate Board. As well as using such documented and generally reliable
evidence of market transactions, it was also necessary to rely on hearsay evidence. Except as
noted herein, a reasonable attempt has been made to verify all such information. Where
information has been supplied by others, absolutely no obligation is assumed by the appraiser for
its accuracy.
8. Because market conditions, including economic, social and political factors, change rapidly
and on occasion, without warning, the market value expressed as of the date of this appraisal
cannot be relied upon to estimate the market value as of any other date except with further advice
of the Appraiser.
9. The compensation for services rendered in this report does not include a fee for court
preparation or court appearance, which must be negotiated separately. However, neither this nor
any other of these limiting conditions is an attempt to limit the use that might be made of this report
should it properly become evidence in a judicial proceeding. In such a case, it is acknowledged that
it is the judicial body which will decide the use of the report which best serves the administration
of justice.
10. The appraiser reserves the right to review all calculations referred to in this report and, if
necessary, revise his opinion in light of any new facts, trends, or changing conditions existing at
any date prior to or at the valuation date which became apparent to him subsequent to the date of
this appraisal.
11. Unless otherwise noted in this report, the appraiser is not qualified to comment on
environmental issues that may affect the market value of the property appraised, including but not
limited to hazardous materials, pollution or contamination of land, buildings, water, groundwater
or air. Unless expressly stated, the property is assumed to be free and clear of pollutants and
contaminants, including but not limited to moulds or mildews or conditions which may give rise to
either, and in compliance with all regulatory environmental requirements, government or otherwise,
and free of any environmental condition, past or present or future, that might effect the market
value of the property appraised. If the party relying on this report requires information about
environmental issues then that party is cautioned to retain an expert qualified in such issues. We
expressly deny any legal liability related to the affect of environmental issues on the market value
of the property appraised
12. This report has been prepared exclusively for the Municipality of the District of Chester in
estimating the market value, and the intended use is for disposal purpose of the subject properties
under appraisal. The author accepts no responsibility whatsoever if this report is used by another
without written permission by Young & Associates Real Estate Appraisal & Consultants, or used
for another purpose or intended use without written permission by Young & Associates Real Estate
Appraisal & Consultants.
Young & Associates Real Estate Appraisals & Consultants
Table of Contents
Title/Cover Page.............................i
Letter of Transmittal............................ii
Contingent and Limiting Conditions....................iv
Part I - Preface
Summary of Salient Facts and Important Conclusions..............2
Terms of Reference................................3
Scope of the Appraisal...........................3
Purpose of the Appraisal..........................4
Intended Use of the Appraisal.......................4
Property Interest Appraised........................4
Definition of Significant Terms.......................4
Definition of Exposure Time........................4
Definition of Market Value.........................5
Property Under Appraisal.........................6
History of the Subject Property......................7
Mortgage, Liens or Encumbrances....................7
Effective Date of the Appraisal.......................7
Reasonable Exposure Time........................7
Regional and Neighbourhood Data........................8
Zoning/Planning..................................9
Assessment and Taxes..............................9
Part II - Analysis and Conclusions
Highest and Best Use...............................11
Appraisal Process.................................14
Direct Comparison Approach...........................17
Reconciliation and Final Estimate of Value....................25
Certification of Appraiser.............................26
Part III - Addenda
Schedule “A”Photos of Subject Property.....................28
Schedule “B”Site Map..............................29
Schedule “C”Location Map............................30
Schedule “D”.Zoning Regulations........................31
Young & Associates Real Estate Appraisals & Consultants
Part I - Preface
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Summary of Salient Facts & Important Conclusions
Address of Property: Lot #1 (18,200.0sf), Lot #2 (10,200.0sf) Both being portion
of PID# 60089760, 82 Union Street, Village of Chester,
Municipality of the District of Chester, Nova Scotia.
Type of Property:Vacant Site
Site Area:Lot #1, (18,200 square feet)
Lot #2, (10,200 square feet).
Purpose of Appraisal:Estimate of the Market Value at its Highest and Best Use.
Intended Use of Appraisal:To assist in the estimate of market value for possible
disposal purpose
Property Interest Appraised:Fee simple interest of the subject property
Property Owner:Municipality of the District of Chester
Zoning:The subject property is situated in an area of the Village of
Chester that has a land use designation of Institutional (I)
Zone which permits a narrow range of uses.
Highest and Best Use:Continuation of the existing use.
Assessed Value & Taxes:
Lot Assessed Value Taxes
PID# 60089760 AAN# 00948845 $260,900.00 $2,191.56
Delinquent Taxes:The Municipality of the District of Chester has interim billing.
The interim bill for the 2013 tax year was sent in May for
payment of June 15th with the final bill being sent in October
for payment by November 15th. However, the subject
property is currently owned by the Municipality of the District
of Chester and would be exempt.
Effective Date of Appraisal:May 15th, 2013.
Date of Inspection:May 15th, 2013
Market Value Of Lot #1
$54,600.00
(fifty four thousand and six hundred dollars)
Market Value Of Lot #2
$5,300.00
(fifty three hundred dollars)
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Terms of Reference
SCOPE OF THE APPRAISAL
The scope of this appraisal encompasses those methods, necessary research, procedures and
investigations considered to be typical and appropriate for this class of property and the intended
use of the report, the Standards of Professional Practice of the Appraisal Institute of Canada and
the Uniform Standards of Professional Practices of the Appraisal Foundation. In regard to the
subject property, this involves the following:
1. A physical inspection of the subject properties under appraisal was undertaken on
May 15th, 2013.
2. During the property inspection the neighbourhood was inspected, noting relevant
competition characteristics and the general physical make-up. Zoning and tax
information was obtained from the Municipality of the District of Chester. Site Areas
and Assessed Values were obtained from the Property Valuation Services
Corporation. Site sizes were obtained from information supplied by the client with
regards to the subject properties under appraisal. This information has been relied
upon as accurate. In estimating the highest and best use of the subject, an analysis
was made of the surrounding land use and of the supply and demand for similar
type property within the general market area. The Direct Comparison Approach to
value is considered to be the only applicable land valuation technique. Sales data
has been obtained from the Multiple Listing Service of the Nova Scotia Association
of Realtors as well as information contained in the Appraiser’s working files. Other
real estate appraisers and Realtors may have also furnished information (data
derived from these sources has been verified whenever possible and is believed to
be accurate).
3. Compiling and analyzing data collected in the above areas assists in the estimation
of the Highest and Best Use for the subject property. The subject property is located
in an area that currently is zoned Institutional (I) Zone which permits a narrow
range of allowable uses from churches, to sewage treatment facilities.
4. Verification of Third Party information: The analysis set out in this report relied on
written and verbal information received from a variety of sources we consider to be
reliable. Market data collected from other Appraisers, local Realtors, Property
Managers, the office files of Young & Associates and/or other such persons whom
are familiar with the subject market, have been utilized in developing the approach
to value. Unless otherwise stated herein, we did not verify client supplied
information, which we believed to be correct. The mandate for the appraisal did not
require a report prepared to the standard appropriate for court purposes or
arbitration, so we did not fully document or confirm by references primary sources
of all information herein.
5. A final estimate of value was made after assembling, examining and analyzing the
data defined in this Scope of the Appraisal.
6. The appraiser did not complete technical investigations such as:
- an environmental review of the property;
- investigations into the bearing qualities of the soils;
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terms of reference continued . . .
PURPOSE OF THE APPRAISAL
The purpose of this Appraisal Report is to provide the client with an estimate of the Market Value
of the subject properties under appraisal of the Fee Simple Interest which is located at 82 Union
Street, Village of Chester, Municipality of the District of Chester, Nova Scotia.
INTENDED USE OF THE APPRAISAL
The intended use the Appraisal Report is to provide the client with an estimate of the Market Value
of the subject property located 82 Union Street, Village of Chester, Municipality of the District of
Chester, Nova Scotia as of effective date May 15th, 2013, for possible disposal.
PROPERTY INTEREST APPRAISED
The property rights being appraised in this report are those which will accrue to the owner of the
property described herein. This encompasses the rights normally attached to the freehold (or fee
simple) interest in the property under appraisal.
DEFINITION OF SIGNIFICANT TERMS
Fee Simple Estate: “Absolute ownership unencumbered by any other interest or estate;
subject only to the limitations of eminent domain, escheat, police power
and taxation.”
Leased Fee Estate: “ An ownership interest held by a landlord with the right of use and
occupancy conveyed by lease to others; the rights of lessor (the leased
fee owner) and the leased fee are specified by contract terms contained
within the lease” (lessor’s or landlord’s estate)
DEFINITION OF EXPOSURE TIME:
The estimate of market value is predicated on a reasonable period of exposure in the real estate
market. A reasonable exposure period is a function of price, time and use, not an estimate of time
alone.
The Appraisal Institute of Canada defines exposure time as follows:
"The estimated length of time the property interest being appraised would have been
offered on the market before the hypothetical consummation of a sale at market value on
the effective date of the appraisal; a retrospective estimate based upon an analysis of past
events assuming a competitive and open market".
The exposure time inherent in the market value concept is always presumed to precede the
effective date of the appraisal.
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terms of reference continued . . .
DEFINITION OF MARKET VALUE
Market Value:Market Value is defined in Canadian Uniform Standards of Professional
Appraisal Practice as:
“The most probable price which a property should bring in a
competitive and open market under all conditions requisite to a fair
sale, the buyer and seller each acting prudently and knowledgeably,
and assuming the price is not affected by undue stimulus.”
Implicit in this definition is the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby:
a)buyer and seller are typically motivated;
b)both parties are well informed or well advised and acting in what they consider their
own best interest;
c)a reasonable time is allowed for exposure in the open market;
d)payment is made in terms of cash in Canadian dollars or in terms of comparable
financial arrangements comparable thereto; and
e)the price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated
with the sale.
Personal Property: “Identifiable portable and tangible objects which are considered by the
general public as “personal”, e.g., furnishings, art work, antiques, gems and
jewellery, collectibles, machinery and equipment and all property that is not
classified as real estate.”
Real Estate: “An identified parcel or tract of land, including improvements, if any.”
Real Property: “The interests, benefits, and rights inherent in the ownership of real estate.”
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terms of reference continued . . .
TYPE OF PROPERTY UNDER APPRAISAL/SITE DESCRIPTIONS
PID# 60089760. The site contains a total area of about 28,500.0sf and is currently owned by the
client identified within this report. Based on the “Schedule A” contained within the last recorded
deed the site has frontage on Union Street of 114.0'and a depth along Prince Street of 250.0'.
Based on information obtained from the client and discussion with the planning department for the
Village of Chester, the subject site can be subdivided into two lots
The first lot being referred to as Lot #1, has frontage on Union Street of about 114.0' and an
approx depth of 160.0 feet making this lot about 18,200 square feet. Currently, this site is
developed with a small building situated on the southern end of this lot. It is understood that this
analysis does not include this building. This portion of the site is landscaped of average quality
with mature trees and shrubs. Due to the size and configuration, this lot has potential for
development within the current zoning bylaws as identified within the report.
The second lot being referred to as Lot #2, has frontage on Prince Street of about 90.0' and a
depth of about 114.0', and would have an area of about 10,200 square feet. The majority of this
lot has low lying areas. Based on information from the planning department for the Village of
Chester this lot is situated within a Watercourse Protection Area. Therefore, it is understood that
a development permit would not be issues for this lot. Further information can be viewed within the
addenda section of this report.
The subject properties under appraisal are located in an area that has independent wells and
municipal sewer services. Also available to the site are street lights, police and fire protection,
garbage removal, telephone, electricity and cable TV.
(Location Map and Site Plan of the subject sites can be viewed in the Addenda section of this
appraisal report.)
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terms of reference continued . . .
HISTORY OF THE SUBJECT PROPERTY
It is understood that subject properties have been owned by the current owners identified within
this appraisal report since 1984. It is understood that the subject properties under appraisal have
not been exposed to the open market within the last three years.
MORTGAGES, LIENS OR ENCUMBRANCES
The subject property is being appraised on the basis that there are no mortgages, liens or other
encumbrances claimed against it.
EFFECTIVE DATE OF THE APPRAISAL
This valuation applies as of May 15th, 2013 (inspection date). This valuation pertains to the
effective date and reflects the market conditions that prevail as of that specific date. Sudden
changes in value could occur due to economic conditions, regulatory changes, political factors,
physical changes etc. to the property. The market value expressed in this report applies as of the
effective date of the appraisal, and may not be a reliable indication of value as of another date.
REASONABLE EXPOSURE TIME
The final estimate of value assumes that the subject property was exposed for sale on the open
market in a manner typical for this class of property for at least three to twelve months prior to the
effective date.
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Regional and Neighbourhood Data
The subject property is situated in the Village of Chester. This area of the province is known as
the South Shore region which includes parts of Halifax, Lunenburg, Queens and Shelburne
Counties. The area is characterized by the Atlantic Ocean with many bays, coves and inlets
peppered along the coast line of the South Shore.
During the American Revolution the village avoided a raid by American Privateers through the
"rouge ruse” where the town’s women, young and old, garbed in cloaks with their red lining worn
outwards marched in an early morning of 30 June 1782 to successfully convince American
Privateers lying offshore to find another place to pillage. The following day the privateers
successfully executed the Raid on Lunenburg, Nova Scotia (1782).
During the War of 1812, the American Privateer Young Teaser was trapped off the shores of
Chester by the HMS Hogue (1811). To avoid capture, a crew member of the Young Teazer
destroyed his own ship, killing most of the crew. After World War 1, to honour the 54 soldiers from
the area that were killed, the famous New York sculptor J. Massey Rhind was commissioned to
make the Nova Scotia Highlander soldier cenotaph.
Chester is one of the wealthiest communities in the province as a result of being a vacation and
resort destination, with many seasonal and year round estates and mansions. The nearby waters
of Mahone Bay and its numerous islands are well known for yachting and have made Chester into
a cruising destination. A Provincial ferry from the village provides a schedule of daily trips to Big
Tancook Island and Little Tancook Island.
Chester was the site of a controversial proposal to change the status of the village. A committee
had been formed in hopes of changing the status of Chester by incorporating as a town, thereby
leaving the Chester Municipal District. Many residents of the village under the banner "Citizens for
Fairness" successfully fought the motion on the principle that the majority of citizens, by ballot,
should decide such a fundamental change.
Some also saw the possibility of higher taxes, costs for a town hall, a mayor, and water and
sewage services as reasons to not incorporate. They won the right to a plebiscite in the fall of 2002
from the Nova Scotia Legislature. The motion was defeated in a public plebiscite on February 22,
2003.
The Village of Chester is situated on the Chester Peninsula which extends into Mahone Bay and
has two natural harbours. Front Harbour (including Front Cove) on the east and Back Harbour
(including Back Cove or Mill Cove) on the west. The Village of Chester is also immediately south
of Stanford Lake
According to the 2011 Stats Canada Report the Municipality of the County of Lunenburg had a
population of 35,717, showing a 1.5% decrease from the 2006 Census Reports. (This includes the
Municipality of the District of Chester). The Village of Chester showed a population of 2,348
persons for the 2011 Census report
As of April 2013, the unemployment rate for the South Shore Region, including the Village of
Chester, is reported by Statistics Canada as being 9.0% (3 month moving average), in comparison
to the provincial rate of 9.2%. Some of the major employers in the region include Michelin Tire,
South Shore Regional Hospital and Fisherman’s Memorial Hospital, and a host of Agricultural,
Forestry, Fisheries and Tourism related businesses.
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Zoning/Planning
From information obtained from the Municipality of the District of Chester, it is understood that the
subject properties are situated within a Institutional (I) Zone. This designation permits a narrow
range of allowable uses from churches, to sewage treatment facilities.
(Zoning By-laws can be viewed in the Addenda section of this report which give a full description
of the current uses.)
Assessment and Taxes
PAN# 00948845 (roll number)Residential Exempt
2013/14 Assessment $260,900.00
Tax Rate ($/100)$N/A
Property Taxes $2,191.56
The above information was obtained from the Municipality of the District of Chester. The subject
property has an assessed value of $260,900.00. The property taxes for the 2013/2014 taxation
year are $2,191.56. Due to the property being owned by the Municipality of the District of Chester,
the site is exempt from taxes. The amount shown, is the amount that would be paid if the property
was owned by a private individual or corporation.
We emphasize that the tax information included herein is a mathematical calculation based on the
most recent available assessment and the approximate tax rate. We cannot ensure the
continuance of the current tax system. Also, the property tax information for the year 2014 may
or may not be higher or lower than that indicated for the year 2013. Thus, the subject taxes may
vary significantly from those indicated and the value estimate herein may not reflect the actual
market value of the subject property.
Young & Associates Real Estate Appraisals & Consultants
Part II - Analysis and Conclusions
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Highest and Best Use
The principle of the highest and best use is a fundamental consideration in the valuation of real
property interests, The Appraisal of Real Estate Canadian Edition, defines Highest and Best Use
as:
" The reasonably probable and legal use of vacant land or an
improved property, which is physically possible, financially feasible,
and that results in the highest and best use."
The definition applies specifically to the highest and best use of the land. It is to be recognized,
however, that in cases where a site has existing improvements on it, the highest and best use may
very well be determined to be different from the existing use. The existing use will continue,
however, until such time as the value of the land vacant for its highest and best use exceeds the
total value of the property in its existing use.
The highest and best use must be:
1. Physically Possible - the size, shape, terrain, and soil conditions of the parcel of land
affect its physical utility and adaptability. The size, design and condition of an improved
property may suggest that rehabilitation, conversion or demolition are in order.
2. Legally Permissible - depends on public restrictions such as zoning, building codes,
historic park preservation regulations, and environmental controls as well as the private or
contractual restrictions found in deeds or long term leases.
3. Financially Feasible - uses that should produce returns that exceed the income
required to satisfy operating expenses and debt service (interest and amortization).
4. Maximum Return - among financially feasible uses, the use that produces the highest
price or value consistent with the rate of return warranted by the market. In our opinion, the
highest and best use of the subject property would be the continuation of it present use.
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highest and best use continued . . .
The subject properties under appraisal as identified within this appraisal report are situated within
the southeast area of the Municipality of the District of Chester within the rural Village of Chester.
From information obtained from the Municipality of the District of Chester, it is understood that the
subject properties are situated in an Institutional (I) Zone. This designation permits a narrow range
of allowable uses from churches, to sewage treatment facilities.
(Zoning By-laws can be viewed in the Addenda section of this report which give a full description
of the current uses.) Within the subject and surrounding areas there is a mixture of residential and
commercial, particularly conversion and renovation of older buildings, which has been ongoing in
this area over the last several years.
A decline of housing prices within the real estate market in 2007 and 2008 has reduced housing
prices and has slowed sales of existing housing along with construction of new housing. This has
reduced the demand for any development within the subject and surrounding communities.
However, within the past twelve months, housing prices have increased slightly within the South
Shore Region as a whole, based on current MLS statistics. This increase is due to a demand for
existing housing, based on lower prices. New home construction is still slower than recent years,
due to the current market demand. The shift to new construction will increase the demand for
residential building sites.
PID# 60089760. The site contains a total area of about 28,500.0sf and is currently owned by the
client identified within this report. Based on the “Schedule A” contained within the last recorded
deed the site has frontage on Union Street of 114.0'and a depth along Prince Street of 250.0'.
Based on information obtained from the client and discussion with the planning department for the
Village of Chester, the subject site can be subdivided into two lots
The first lot being referred to as Lot #1, has frontage on Union Street of about 114.0' and an
approx depth of 160.0 feet making this lot about 18,200 square feet. Currently, this site is
developed with a small building situated on the southern end of this lot. It is understood that this
analysis does not include this building. This portion of the site is landscaped of average quality
with mature trees and shrubs. Due to the size and configuration, this lot has potential for
development within the current zoning bylaws as identified within the report.
The second lot being referred to as Lot #2, has frontage on Prince Street of about 90.0' and a
depth of about 114.0', and would have an area of about 10,200 square feet. The majority of this
lot has low lying areas. Based on information from the planning department for the Village of
Chester, this lot is situated within a Watercourse Protection Area. Therefore, it is understood that
a development permit would not be issued for this lot. Further information can be viewed within
the addenda section of this report. Therefore, it is understood that Lot #2 would provide amenity
to the adjacent site, and the development of this lot would be in conjunction with the adjoining lot.
The subject properties under appraisal are located in an area that have independent wells and
municipal sewer services. Also available to the site are street lights, police and fire protection,
garbage removal, telephone, electricity and cable TV.
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highest and best use continued . . .
Residential use exists in the immediate area of the subject, while the bulk of the commercial use
properties are scattered throughout the subject area ranging from gas stations/convenience stores,
glass companies, auto repair shops, etc.
Also, there is an average housing stock combined with property used for seasonal use along local
waterways and small lakes within the area. There has been little to no development of residential
and or commercial construction over the past several years and appears that this will continue for
several more years.
Highest and Best Use may be defined as "that use, from among reasonably probable and legal
alternative uses, thought to be physically possible, appropriately supported, financially feasible and
which results in the highest land values." In most instances, the existing improvements will
constitute or represent the Highest and Best Use of land. It is to be recognized, however, that in
cases where a site has existing improvements on it, the Highest and Best Use may very well be
determined to be different from the existing use. The existing use will continue, however, until such
time as the value of the land vacant for its Highest and Best Use exceeds the total value of the
property in use or as improved. Analysis of the subject property in order to determine its potential
and most probable optimum use, the following factors were considered:
- The location of the property and its proximity to other markets
- The size, shape and physical features of the property.
- Legal (and physical) access to the property.
- Municipal services available.
- Local zoning and planning considerations.
- Size, condition and functional qualities of the improvements.
- Surrounding land use schemes.
- Real Estate and development trends, etc.
The highest and best use of the subject properties under appraisal as identified within this appraisal
report, as though vacant, is considered to be for development within the permitted use of the
current zoning bylaws.
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Appraisal Process
There are three basic approaches available to the appraiser in the estimation of the market value
of the subject property. The methods and procedures of these approaches are summarized as
follows:
Income Approach - This approach is applied in the valuation of income producing or investment
properties. The basic steps of this procedure are the estimation of gross income less expenses
resulting in net income and the determination of an appropriate method of capitalization which,
when applied to net income, results as an indication of economic value. The subject property is not
an income producing property. Therefore, this approach will be not be used in this appraisal report.
Cost Approach - The Cost Approach consists of two basic components. Firstly, the valuation of
the land as if free and clear of improvements under its highest and best use and secondly, the
estimation of the replacement cost new of the improvements less any loss in value (depreciation)
due to deterioration or obsolescence. The Cost Approach is applicable to new and special purpose
properties. Typically properties such as the subject property do not trade based on the replacement
cost. In the case of the subject property, this method is not considered to be reliable due to the
subject properties being vacant land, therefore, it is concluded that this approach will not be used
in this appraisal report.
Direct Comparison Approach - Typically, this approach involves the analysis of properties of
comparable nature which have sold on the open market of recent date. Where applicable, the sale
price of each comparable sale is adjusted for dissimilar features such as differences in market
conditions, physical factors and locational characteristics. Adjustment for differences equates the
sale prices of comparable sales to an expression of market value applicable to the subject. The
data used for this comparison come from the Multiple Listing Services sales data available to the
appraiser, as well as data of private sales. Adjustments are made on a dollar or percentage basis
to correct for differences where the comparable properties are considered inferior or superior to
the subject property. Therefore this approach will be used in this appraisal.
Concluded Methodology
The Direct Comparison Approach will be utilized to value the subject property under appraisal and
is considered to be the applicable valuation technique for the property located at: Lot #1
(18,200.0sf), Lot #2 (10,200.0sf) Both being portion of PID# 60089760, 82 Union Street, Village
of Chester, Municipality of the District of Chester, Nova Scotia.
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appraisal process continued . . .
The valuation process is the orderly program in which the data used to estimate the value of the
subject property is acquired, classified, analyzed and presented. The first step in the process is
to define the appraisal problem, i.e., to identify the real estate, the effective date of the value
estimate, the property rights being appraised and the type of value sought. Once this has been
accomplished, the appraiser collects and analyzes the factors that affect the market value of the
subject property. These factors are addressed in the area and neighbourhood analysis, the site
and improvement analysis, the highest and best use analysis, the application of the three
approaches to value (income approach, cost approach, and direct comparison approach).
Land Valuation Techniques
Land value is a local product. It arises from supply and demand in the market where the property
is located and bears only coincidental relationship to the value of similar land in other localities.
The valuation of land must therefore be based on analysis of its local market. Whether vacant or
improved with buildings, land is usually valued as if available for development to its highest and
best use - the most probable legal use which will yield the greatest return. This use must be
acceptable to the market and must conform to existing zoning and land use ordinances. If there
are improper improvements on the land and it is not available for development to its highest and
best use, the land value may need adjustment to reflect demolition and other costs necessary to
make it available for proper development.
The six procedures used to value land are:
1. Direct Comparison - This is the most commonly used and generally most reliable approach
for valuing vacant land providing a sufficient number of comparable land sales exist. Sales of
similar types of vacant land are derived from the market and are reduced to an appropriate unit of
comparison (i.e., price/m2, price/sf, price/ha, price/acre, price/lot, price/suite ). Where necessary,
the unit sale prices are adjusted for differences such as date of sale, location, and physical factors.
The adjusted unit prices are applied to the subject land to arrive at an indication of market value.
For the subject, this is the most appropriate method of valuation and has been adopted.
2. Allocation - This technique is based on the typical ratio of land value to improvement value for
specific categories of real estate. This method is inappropriate for the subject which contains
undeveloped land and where other vacant land sales can be considered.
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appraisal process continued . . .
4. Subdivision Development - This technique, applicable chiefly to undeveloped lands, calls for
estimating total value as if the lands were subdivided and sold, and subtracting the development
costs. The subject property does not appear to have this imminent potential. Therefore, this
approach is not considered in this report.
5. Land Residual - This method is similar to the abstraction method but is intended for income
producing properties. Net income is determined and the amount of this income attributable to
improvement is determined. The remainder of the income is capitalized into an indication of the
site value. This approach is not employed in the report.
6. Ground Rent Capitalization - This technique is used to value land when the ground rent
corresponds to the value of the landowner’s interest in the property and market-derived
capitalization rates are available to convert the ground rent into an indication of market value. This
approach is not employed in the report.
All six procedures are derived from the three basic approaches to value. Sales Comparison and
Income Capitalization (i.e., ground rent capitalization) can be directly applied to land valuation.
Allocation and Extraction procedures reflect the influence of the Direct Comparison and Cost
Approaches; the Land Residual technique is based on the Income Capitalization and Cost
Approaches. Subdivision Development draws on elements of all three approaches.
Concluded Methodology
The Direct Comparison Approach will be referenced to estimate the market value of the subject
property located at Lot #1 (18,200.0sf), Lot #2 (10,200.0sf) Both being portion of PID# 60089760,
82 Union Street, Village of Chester, Municipality of the District of Chester, Nova Scotia. and is
considered to be the only applicable valuation technique.
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Direct Comparison Approach
The Direct Comparison Approach is a method of estimating market value whereby a subject
property is compared with similar properties that have sold recently. Preferably, all properties are
situated in the same area. One premise of the Direct Comparison Approach is that the market will
determine a price for the property being appraised in the same manner that it determines the prices
of comparable, competitive properties. Essentially, this approach is a systematic procedure for
carrying out comparative shopping. As applied to real estate, the comparison is applied to the
unique characteristics of the economic good that cause real estate prices to vary.
When applying the Direct Comparison Approach, the appraiser follows a systematic procedure and
must always compare like with like. The steps of the procedure are as follows:
1. Research the market to obtain information about transactions, listings and other
offerings of properties similar to the subject property.
2. Verify the information by considering whether the:
a). Data obtained are factually accurate,
b). Transactions reflect arm’s-length market considerations (an appraiser verifies
information by consulting a knowledgeable source).
3. Determine relevant units of comparison.
4. Compare the subject and comparable sales according to the elements of comparison
and adjust the sale price of each comparable as appropriate.
5. Reconcile the multiple value indications that result from the comparable into a single
value indication.
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direct comparison approach continued . . .
Introduction
The Direct Comparison Approach is a process of comparing market data; that is the price paid for
similar properties, prices asked by owners, and offers made by prospective purchasers willing to
purchase. It is good evidence of value because it represents the actions of buyers and sellers in
the market.
The Direct Comparison Approach is based on the principle of "substitution", which implies that a
prudent purchaser will not pay more to buy or rent a property than what it will cost to buy or rent
a comparable substitute property. This approach to value recognizes that the typical buyer will
compare properties which constitute the market for a given type and class of property.
In making comparisons between properties, similarities and dissimilarities must be recognized. The
conclusions which are deemed to be most dependable are those based upon comparisons of
factors and conditions which are very much alike. However, in the valuation analysis, consideration
must be given to dissimilarities that affect the relative desirability and utility of the sales, compared
to that of the subject property.
Traditionally, the major elements of comparison are location, physical characteristics and sale date,
with the objective being to deduce from the data of the sales, the price which the property under
appraisal would command, if exposed for sale on the market for a reasonable time, as of the date
of valuation.
As part of this assignment, 10 sales were reviewed. Due to the scope of this appraisal assignment
and the terms of reference I have not relied on sales to or from governments or government
agencies. From this body of market information, I have selected 5 sales which, in my opinion, were
most relevant and of greatest assistance in providing an indication of the market value of the
subject property.
Only the most relevant comparable properties are detailed in this report. The properties are
summarized on the following chart (entitled Summary of Most Relevant Comparable Properties).
The properties were inspected (external inspection from the vantage point of the abutting roads)
and were compared to the subject property. The sales chart is followed by an analysis providing
further details of the sale properties and their comparison to the subject property as though vacant.
The unit of comparison in this valuation is “price per square foot”.
In my opinion, the variance in price indicated by the comparable sales is due to a number of factors
including date of sale, location, size, motivation, other physical characteristics of each of the
comparable properties. Therefore, adjustments have been applied to selected comparable sales.
There are a limited number of recent comparable land sales in the area. Upon surveying the real
estate market, the appraiser has compiled the details of these properties and has listed them in the
table shown on the following page. These property transactions represent a reasonable cross
section of the vacant land sales as it pertains to the subject property.
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Summary of Most Relevant Comparable Properties.
Sale #Comparable
Property
Sale Date
(M/D/Yr)
Sale
Price
Area
Square
Foot
Price
/Square
Foot
Comments
1 Jubilee Road,
Bridgewater,
Lunenburg Co. NS.
05.01.2012 $32,100 13,993.00sf $2.29/sf Vacant site. Located within The Town of Bridgewater,
Zone R2, allows uses similar to the zoning of the subject
sites. An upward adjustment warranted
2 North Street, Village
of Chester
Lunenburg Co. NS
02.07.2012 $96,000 21,527.00sf $4.45/sf Vacant site. Located within The Village of Chester,
Zone HC, allows uses similar to the zoning of the subject
sites. An downward adjustment warranted
3 Clearway Street,
Town of Mahone Bay,
Lunenburg Co. NS.
08.25.2011 $44,000 27,057.00sf $1.62/sf Vacant site. Located within The Town of Mahone Bay,
Zone R, allows uses similar to the zoning of the subject
sites. An upward adjustment is warranted
4 Long Hill Road,
Blockhouse
Lunenburg Co. NS.
07.12.2012 $5,000 84,070.00sf $0.65/sf Vacant site. Located within the at the north boundary of
the Town of Mahone. Located within a rural zoning.
Permits a wide range of commercial, institutional, and
residential use. An upward adjustment is warranted. with
regards to Lot #1,no adjustment is warranted for Lot #2
5 Highway #325,
Whynott Settlement
Lunenburg Co. NS.
04.04.2010 $10,000 25,800.00sf $0.39/sf Vacant site. Located within a rural community of
Settlement east of the Town of Bridgewater, Low lot,
similar in as Lot #2. Located in an area of the
municipality, that has limited zoning regulations
Upward adjustment is warranted, with regards to Lot
#1,no adjustment is warranted for Lot #2
Subject
Property
Lot #1 (18,200.0sf),
Lot #2 (10,200.0sf)
Both being portion
of PID# 60089760, 82
Union Street, Village
of Chester,
Municipality of the
District of Chester,
Nova Scotia
N/A N/A Average
Site Area
19,356.00
square feet,
Average
Price per
square foot
$1.88
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direct comparison approach continued. . .
Market Data Analysis and Adjustments.
The foregoing Summary of Most Relevant Comparable Properties outlines comparable sales
analyzed in the valuation of the subject properties. The sales have been evaluated on the price per
square foot of site area. The rates/sf range from $0.39 to $4.45/sf with an average rate of $1.88/sf.
Adjustments have been made to the transactions based on the following considerations.
Property Rights - all of the transactions reflect the acquisition of the freehold interest in the
property and no adjustment is warranted.
Financing Terms - all of the properties are believed to have been traded on a cash basis with no
special financing consideration. Therefore no adjustment is warranted.
Conditions of Sale - all of the properties are believed to have been traded on an arm’s length
basis with no undue stimuli on the part of the seller and the buyer. Therefore, no adjustment is
warranted.
Market Conditions - adjustments have been made to all the transactions to reflect the estimated
change in land values between the date of the comparable sales and the effective date of the
appraisal. The adjustment has been based on the average change in the MLS Statistics from the
Nova Scotia Association of Realtors.
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direct comparison approach continued. . .
In addition to the foregoing markets adjustment, qualitative rankings have been made to the
comparable sales data for location, lot size, and services. No substantive basis for the quantitative
adjustments for these factors has been identified. Therefore, the comparable sales have been
ranked based on relative comparability to the subject properties under appraisal as outlined in the
following. A single point system has been assigned for each factor based on whether a sales is
superior, inferior, or similar to the subject properties in these elements. (+1 - Superior, -1 - Inferior,
and 0 - Similar)
Location Adjustment - The comparable sales are all located within rural communities that would
be considered similar to the subject properties. However, these sales reflect a wide range of
locational characteristics from relative remote residential use to location of potential commercial use.
Lot Size Adjustment - The comparable sales have lot sizes ranging from 13,900 to 84,000 square
feet and the subject properties, Lot #1, and Lot #2, are similar to the comparable sales with regards
to lot size. Therefore, it is understood that Lot #2 would provide amenity to the adjacent site, and
the development of this lot would be in conjunction with the adjoining lot.
Services Adjustment - The subject property under appraisal is situated within the Village of
Chester, where independent wells and municipal sewer services exist. The comparable sales are
also located within similar areas of independent wells and sewer systems and municipal sewer
services.
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direct comparison approach continued. . .
The following table summarizes the following adjustments and ranking consideration for the
comparable sales.
Summary of Adjustments and Ranking Analysis
Sale # Price /sf Market Time Adjusted Total
Conditions Price Location Size Services Point Comparability
1 $2.29 $0 $2.29 -1 0 -1 -2 Inferior
2 $4.45 $0 $4.45 0 +1 0 +1 Superior
3 $1.62 $0 $1.62 0 0 +1 +1 Superior
4 $0.65 $0 $0.65 0 0 0 0 Similar
5 $0.39 $0 $0.39 0 0 0 0 Similar
After analysis, the range of adjusted sale price per square foot range from $2.50/sf to $3.75/sf with
an average rate of $3.12/sf. The comparable sales have been ranked based on the relative size,
quality, condition, location and features in comparison to the subject. However, it is the appraiser’s
opinion that comparable sales #2 and #3 are considered to be closely ranked comparable
properties.
These two comparable sales provide an adjusted range of $2.75 to $3.25 per square foot with an
average rate from this group of $3.00 per square foot rounded. There is no basis for suggesting
that the subject property would be more closely reflected by either of these two comparable sales,
therefore, the average per square foot rate is accepted and will be applied to the area of the subject
property under appraisal.
However, for Lot #2, the two lower comparable sales provide an adjusted range of $0.39 to $0.65
per square foot with an average rate from this group of $0.52 per square foot rounded. There is
no basis for suggesting that the subject property would be more closely reflected by either of these
two comparable sales, therefore, the average per square foot rate is accepted and will be applied
to the area of the subject property under appraisal
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direct comparison approach continued. . .
Adjustments for the differences between the sale and subject property have been made. These
adjustments are based on professional judgment and market observations. These adjustments
should not be interpreted as being absolute market derived, such as through paired sales method
or by statistical analysis. The sale price of each sale has been broken down to a price per square
foot.
To reiterate, from information obtained from the Municipality of the District of Chester, it is
understood that the subject properties are situated in an Institutional (I) Zone. This designation
permits a narrow range of allowable uses from churches, to sewage treatment facilities.
(Zoning By-laws can be viewed in the Addenda section of this report which give a full description
of the current uses.) Within the subject and surrounding areas there is a mixture of residential and
commercial, particularly conversion and renovation of older buildings, which has been ongoing in
this area over the last several years.
A decline of housing prices within the real estate market in 2007 and 2008 has reduced housing
prices and has slowed sales of existing housing along with construction of new housing. This has
reduced the demand for any development within the subject and surrounding communities.
However, within the past twelve months, housing prices have increased slightly within the Region
of the South Shore as a whole, based on current MLS statistics. This increase is due to a demand
for existing housing, based on lower prices. New home construction is still slower than recent years,
due to the current market demand. The shift to new construction will increase the demand for
residential building sites.
PID# 60089760. The site contains a total area of about 28,500.0sf and is currently owned by the
client identified within this report. Based on the “Schedule A” contained within the last recorded
deed the site has frontage on Union Street of 114.0'and a depth along Prince Street of 250.0'.
Based on information obtained from the client and discussion with the planning department for the
Village of Chester, the subject site can be subdivided into two lots.
The first lot being referred to as Lot #1, has frontage on Union Street of about 114.0' and an approx
depth of 160.0 feet making this lot about 18,200 square feet. Currently, this site is developed with
a small building situated on the southern end of this lot. It is understood that this analysis does not
include this building. This portion of the site is landscaped of average quality with mature trees and
shrubs. Due to the size and configuration, this lot has potential for development within the current
zoning bylaws as identified within the report.
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direct comparison approach continued. . .
The second lot being referred to as Lot #2, has frontage on Prince Street of about 90.0' and a depth
of about 114.0', and would have an area of about 10,200 square feet. The majority of this lot has
low lying areas. Based on information from the planning for the Village of Chester, this lot is
situated within a Watercourse Protection Area. Therefore, it is understood that a development
permit would not be issued for this lot. Further information can be viewed within the addenda
section of this report. Therefore, it is understood that Lot #2 would provide amenity to the adjacent
site, and the development of this lot would be in conjunction with the adjoining lot. Amenity land
provides contributory value to the front land, typically, amenity land would contribute about 8.0% to
12.0% of the front land value. This reduced rate is mainly due to the reduced utility, and the location
of the amenity land.
Typically, as the area of the residential sites increase, the cost per square foot would decrease and
as the land area decreases, the cost per square foot would increase. This would make it much
easier in valuing residential sites. Based on the foregoing analysis, a per square rate of $3.00 will
be applied to Lot #1, and a rate of $0.52 will be applied to Lot #2. It is understood that the market
value of the lots identified within this report, is subject to the approvals from the Municipality of the
District of Chester, for the subdivision of the two lots. Therefore, the final estimate of market value
by the Direct Comparison Approach for the Subject Property as identified within this appraisal report
is estimated at:
Calculation: Lot #1, 18,200.00 sf X $3.00/sf = $54,600.00
Lot #2, 10,200.00 sf X $0.52/sf= $5,304.00
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Reconciliation and Final Estimate of Value
The indications of value arrived by the approach employed in this report is summarized as follows:
Lot #1 (18,200.0sf), Lot #2 (10,200.0sf) Both being portion of PID# 60089760, 82 Union Street,
Village of Chester, Municipality of the District of Chester, Nova Scotia
Direct Comparison Approach Lot #1, 18,200.00 sf X $3.00/sf = $54,600.00
Lot #2, 10,200.00 sf X $0.52/sf= $5,304.00
The purpose of this appraisal report is to estimate the market value, as of May 15th , 2013 to aid the
client, Municipality of the District of Chester for possible disposal purposes of the subject
properties. To this end, the appraiser has inspected the subject land, surrounding neighbourhood
and general area. A search of the market has been made to find all and any data which is
considered pertinent in the valuation of the subject property.
To estimate the market value of the subject property, the most applicable approach for this type and
class of property was utilized within the appraisal report. The Direct Comparison Approach was
considered the most applicable approach to value and comparable sales throughout the
neighbourhood and surrounding areas were located and analyzed with market adjustments being
made for the differences between the subject and comparable properties utilized.
After carefully considering all factors affecting value including size, shape and location of the sales,
topography, zoning, highest and best use, developments in the area, accessibility, services available
and comparable sales data, it is the appraiser’s opinion that the market value of the subject property
has been provided by the findings of the Direct Comparison Approach.
Therefore, as of May 15th, 2013, the market value of the subject property is considered to be
reasonably represented at:
Market Value Of Lot #1
$54,600.00
(fifty four thousand and six hundred dollars)
Market Value Of Lot #2
$5,300.00
(fifty three hundred dollars)(rounded)
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Certification
Subject Property: Valuation of :Lot #1 (18,200.0sf), Lot #2 (10,200.0sf) Both being
portion of PID# 60089760, 82 Union Street, Village of
Chester, Municipality of the District of Chester, Nova
Scotia
I certify that, to the best of my knowledge and belief,
- The statements of fact contained in this report are true and correct;
- The property was personally inspected on May 15th, 2013. I have not withheld any comments or
observations which might affect the opinion of value stated in this report.
- The analyses, opinions and conclusions reported herein are my personal and unbiased views and
are limited only by the Contingent and Limiting Conditions contained herein.
- I have no past, present or contemplated future interest in the real estate which is the subject of this
report, and that I have no personal interest or bias with respect to the parties involved;
- My compensation is not contingent upon any action or event resulting from the analyses, opinions
or conclusions in, or the use of this report;
- This appraisal has been made in conformity with, and is subject to, the Canadian Uniform Standards
of Professional Appraisal Practice as well as the By-laws and regulations of the Appraisal Institute of
Canada and the Nova Scotia Real Estate Appraiser Association. This report is subject to review by
duly authorized representatives of these bodies.
- No one provided significant professional assistance to the person signing this report.
- I am presently re-certified under the continuing education program of the Appraisal Institute of
Canada,
- In my opinion, the estimate market value of the subject property, as of May 15th, 2013,
was:
Market Value Of Lot #1
$54,600.00
(fifty four thousand and six hundred dollars)
Market Value Of Lot #2
$5,300.00
(fifty three hundred dollars)
Young & Associates Real Estate Appraisals & Consultants
Kenneth T. Young, AACI, P.App
Broker /Owner / Senior Appraiser
NSREAA Registration ¹ 302146
June 11th, 2013
Date of Report
Young & Associates Real Estate Appraisals & Consultants
Part III - Addenda
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Schedule “A”Subject Property Photographs
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Schedule “B”Site Plan.
This site plan is only for illustrating the location of the subject properties under appraisal and is not
to scale and should not be relied upon as being a true copy.
Subject
Property
Lot #2
Subject
Property
Lot #1
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Schedule “C”Location Map
Subject
Property
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Schedule “D” Zoning Regulations.
(Source: Village of Chester, Land Use By-Law Schedule “A” Zoning Map.)
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Schedule “D” Zoning Regulations cont..
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Schedule “D” Zoning Regulations cont..
Subject
Property
Young & Associates Real Estate Appraisals & Consultants
Narrative Appraisal Report on the Subject Property
located at:
Lot #1 (18,200.0sf),
Lot #2 (10,200.0sf)
Both being portion of PID# 60089760
82 Union Street, Village of Chester,
Municipality of the District of Chester,
Nova Scotia.
Submitted to:Mr. Matthew S. Davidson P. Eng.
Public Works Director
Municipality of the District of Chester
151 King Street, PO Box 369,
Chester, NS
B0J 1J0
Submitted by:Kenneth T. Young, AACI, P.App
Broker / Owner / Senior Appraiser
NSREAA Registration ¹ 302146
Young & Associates Real Estate Appraisals & Consultants
450 Lahave Street, Unit 17, Box 253
Bridgewater Nova Scotia, B4V 4A3
ph: 902.531.2522 or fax: 902.530.3284
email: kenneth.young@yahoo.ca
Kenneh T. Young, AACI, P.App
Broker / Owner /Senior Appraiser
NSREAA - Registration ¹ 302146
Mailing Address
450 Lahave Street, Unit 17, Box 253
Bridgewater, Nova Scotia, B4V 4A3
Street Address
557 King Street, Suite 2B
Bridgewater, Nova Scotia, B4V 1B3
Ph: 902.531.2522
Fax: 902.530.3284
Email: kenneth.young43@yahoo.ca
June 24th, 2013
Mr. Matthew S. Davidson P. Eng.
Public Works Director
Municipality of the District of Chester
151 King Street, PO Box 369,
Chester, NS
B0J 1J0
RE:Narrative Appraisal Report on the Subject Property located at:
Lot #1 (18,200.0sf), Lot #2 (10,200.0sf) Both being portion of PID# 60089760
82 Union Street, Village of Chester, Municipality of the District of Chester, Nova Scotia.
Dear Mr. Davidson:
In accordance with your request and authorization, I have inspected the subject properties under
appraisal on May 15th, 2013, investigated and gathered the necessary data to make certain
analyses that have enabled me to form an opinion of the Market Value of the Fee Simple Interest
of the subject property at the “Highest & Best Use”. It is understood that this report will be utilized
for possible disposal purposes of the subject properties. Market Value, as employed, is outlined
in this report. This Narrative Appraisal Report is limited to the client only for the estimation of
Market Value of the subject property under appraisal. All of the approaches to value are listed that
have been utilized within the appraisal report.
The subject properties are situated within a Institutional (I) Zone. This designation permits a
narrow range of allowable uses from churches, to sewage treatment facilities. However, the
subject are to be appraised based on a hypothetical scenario, that the zoning of the subject
properties under appraisal are situated within a Central Village Residential (CVR) Zone.
We have been provided with documentation relative to the re-zoning of the subject properties under
appraisal. However, this documentation only indicates, that if a re-zoning was initiated to maximize
residential development, then the most likely zone, would be Central Village Residential
(CVR).Therefore, the Municipality of the District of Chester, would have to approve the application
for the re-zoning of the subject properties. Due to the absence of this approval, I have invoked an
Extraordinary Assumption that the application for the re-zoning of the subject properties (Lot#1, and
#2) would be approved by the municipality. If the assumption proves to be otherwise, then our
estimated value may be impacted.
Young & Associates Real Estate Appraisals & Consultants
-iii-
letter of transmittal continued....
As a result of this investigation, and subject to the assumptions and limiting conditions contained
in this report, and that the two lots are assumed to be subdivided, complete and available for
immediate development, it is the Appraiser’s Opinion that the estimated value of the fee simple
interest in the subject properties, based on a land area of the two lots identified within this report,
as of the effective date of May 15th, 2013 is
Market Value Of Lot #1
$141,000.00
(One hundred and forty one thousand dollars)
Market Value Of Lot #2
$14,000.00
(Fourteen thousand dollars)(rounded)
The attached pages describe the methods and approaches to value that have been employed and
contain some of the data gathered during the course of the investigation. I certify that we have no
present or prospective interest in the above captioned property of any kind whatsoever. This
valuation has been performed in accordance with the Canadian Uniform Standards of Professional
Appraisal Practice of the Appraisal Institute of Canada.
I trust that you will find the enclosed report to be satisfactory and should you require any further
clarification or additional information, please do not hesitate to contact the undersigned.
Respectfully Submitted,
Kenneth T. Young, AACI, P.App
Broker / Owner / Senior Appraiser
NSREAA Registration ¹ 302146
Young & Associates Real Estate Appraisals & Consultants
-iv-
Contingent and Limiting Conditions
1.This report is prepared at the request of the client identified on the cover page of this
appraisal report as of the effective date May 15th, 2013. The purpose of the appraisal is to
estimate the Market Value of the subject properties, for disposal purpose. It is not reasonable for
any other person, other than the client, to rely upon this appraisal without first obtaining written
authorization from the Municipality of the District of Chester. There may be qualifications,
assumptions, or limiting conditions in addition to those set out below relevant to that person’s
identity or his intended use. The report is prepared on the assumption that no other person or
persons will rely on it for any other purpose except for the purpose intended and that all liability to
all such persons is denied.
2. While expert in appraisal matters, the author is not qualified and does not purport to give
legal advice. It is assumed that:
a)the land description employed in this report is correct;
b)title to the property is good and marketable;
c) there are no encroachments, encumbrances, restrictions, lease or covenants that
would in any way affect the valuation, except as expressly noted herein;
d) the existing use is a legally conforming use which may be continued by any
purchaser from the existing owner;
e) rights-of-way, easements, or encroachments over other real property and leases or
other covenants noted herein are legally enforceable; and
f) the final estimate of value is of the land only, and is subject to there being no
contamination of any kind to the site.
Because these assumptions have been made, no investigation, legal or otherwise, has been
undertaken which would verify these assumptions except as expressly noted herein.
3. The Author is not a qualified surveyor. Sketches, drawings, diagrams, photographs, etc.
are presented in this report for the limited purpose of illustration only and are not to be relied upon
in themselves.
4. No investigation has been undertaken with the local zoning office, the fire department, the
building inspector, the health department or any other government regulatory agency unless such
investigations are expressly represented to have been made in this report. The subject properties
must comply with such government regulations and, if it does not comply, its noncompliance may
affect market value. To be certain of compliance, further investigations may be necessary.
5. Neither possession of this report nor a copy of it carries with it the right of publication. All
copyright is reserved solely to Municipality of the District of Chester. It shall not be disclosed,
quoted from or referred to, in whole or in part, or published in any manner. This report is subject
only to confidential review by the Appraisal Institute of Canada as provided in the Code of Ethics,
Standards of Professional Conduct and Standards of Professional Practice of the Appraisal
Institute of Canada.
Young & Associates Real Estate Appraisals & Consultants
-v-
contingent and limiting conditions continued.....
6. The Author is not qualified to give engineering advice. It is assumed that there are no
patent or latent defects in the subject’s improvements, that no objectionable materials are present,
that they are structurally sound and in need of no immediate repairs, unless expressly noted within
this report. No soil tests have been done, nor have tests been done of the heating, plumbing,
electrical, or other systems and, for the purpose of this report, they are assumed to be in good
working order.
7. Market data has been obtained, in part, from documents at the land registry office, or as
reported by the Real Estate Board. As well as using such documented and generally reliable
evidence of market transactions, it was also necessary to rely on hearsay evidence. Except as
noted herein, a reasonable attempt has been made to verify all such information. Where
information has been supplied by others, absolutely no obligation is assumed by the appraiser for
its accuracy.
8. Because market conditions, including economic, social and political factors, change rapidly
and on occasion, without warning, the market value expressed as of the date of this appraisal
cannot be relied upon to estimate the market value as of any other date except with further advice
of the Appraiser.
9. The compensation for services rendered in this report does not include a fee for court
preparation or court appearance, which must be negotiated separately. However, neither this nor
any other of these limiting conditions is an attempt to limit the use that might be made of this report
should it properly become evidence in a judicial proceeding. In such a case, it is acknowledged that
it is the judicial body which will decide the use of the report which best serves the administration
of justice.
10. The appraiser reserves the right to review all calculations referred to in this report and, if
necessary, revise his opinion in light of any new facts, trends, or changing conditions existing at
any date prior to or at the valuation date which became apparent to him subsequent to the date of
this appraisal.
11. Unless otherwise noted in this report, the appraiser is not qualified to comment on
environmental issues that may affect the market value of the property appraised, including but not
limited to hazardous materials, pollution or contamination of land, buildings, water, groundwater
or air. Unless expressly stated, the property is assumed to be free and clear of pollutants and
contaminants, including but not limited to moulds or mildews or conditions which may give rise to
either, and in compliance with all regulatory environmental requirements, government or otherwise,
and free of any environmental condition, past or present or future, that might effect the market
value of the property appraised. If the party relying on this report requires information about
environmental issues then that party is cautioned to retain an expert qualified in such issues. We
expressly deny any legal liability related to the affect of environmental issues on the market value
of the property appraised
12. This report has been prepared exclusively for the Municipality of the District of Chester in
estimating the market value, and the intended use is for disposal purpose of the subject properties
under appraisal, based on a hypothetical scenario, that the lots are zoned Central Village
Residential (CRV). The author accepts no responsibility whatsoever if this report is used by another
without written permission by Young & Associates Real Estate Appraisal & Consultants, or used
for another purpose or intended use without written permission by Young & Associates Real Estate
Appraisal & Consultants.
Young & Associates Real Estate Appraisals & Consultants
Table of Contents
Title/Cover Page.............................i
Letter of Transmittal............................ii
Contingent and Limiting Conditions....................iv
Part I - Preface
Summary of Salient Facts and Important Conclusions..............2
Terms of Reference................................3
Scope of the Appraisal...........................3
Purpose of the Appraisal..........................4
Intended Use of the Appraisal.......................4
Property Interest Appraised........................4
Definition of Significant Terms.......................4
Definition of Exposure Time........................4
Definition of Market Value.........................5
Property Under Appraisal/Site Descriptions................6
History of the Subject Property......................7
Mortgage, Liens or Encumbrances....................7
Effective Date of the Appraisal.......................7
Reasonable Exposure Time........................7
Regional and Neighbourhood Data........................8
Zoning/Planning..................................9
Assessment and Taxes..............................9
Part II - Analysis and Conclusions
Highest and Best Use...............................11
Appraisal Process.................................14
Direct Comparison Approach...........................17
Reconciliation and Final Estimate of Value....................25
Certification of Appraiser.............................26
Part III - Addenda
Schedule “A”Photos of Subject Property.....................28
Schedule “B”Site Map..............................29
Schedule “C”Location Map............................30
Schedule “D”.Zoning Regulations........................31
Young & Associates Real Estate Appraisals & Consultants
Part I - Preface
Young & Associates Real Estate Appraisals & Consultants
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Summary of Salient Facts & Important Conclusions
Address of Property: Lot #1 (18,200.0sf), Lot #2 (10,200.0sf) Both being portion
of PID# 60089760, 82 Union Street, Village of Chester,
Municipality of the District of Chester, Nova Scotia.
Type of Property:Vacant Site
Site Area:Lot #1, (18,200 square feet)
Lot #2, (10,200 square feet).
Purpose of Appraisal:Estimate of the Market Value at its Highest and Best Use.
Intended Use of Appraisal:To assist in the estimate of market value for possible
disposal purpose.
Property Interest Appraised:Fee simple interest of the subject property
Property Owner:Municipality of the District of Chester
Zoning:The subject property is situated in an area of the Village of
Chester that has a land use designation of Institutional (I)
Zone which permits a narrow range of uses. However, the
subject properties are being valued based on a hypothetical
scenario, that the zoning of the subject properties under
appraisal is Central Village Residential (CVR) Zone.
Highest and Best Use:Continuation of the existing use.
Assessed Value & Taxes:
Lot Assessed Value Taxes
PID# 60089760 AAN# 00948845 $260,900.00 $2,191.56
Delinquent Taxes:The Municipality of the District of Chester has interim billing.
The interim bill for the 2013 tax year was sent in May for
payment of June 15th with the final bill being sent in October
for payment by November 15th. However, the subject
property is currently owned by the Municipality of the District
of Chester and would be exempt.
Effective Date of Appraisal:May 15th, 2013.
Date of Inspection:May 15th, 2013
Market Value Of Lot #1
$141,000.00
(One hundred and forty-one thousand dollars)
Market Value Of Lot #2
$14,000.00
(Fourteen thousand dollars)
Young & Associates Real Estate Appraisals & Consultants
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Terms of Reference
SCOPE OF THE APPRAISAL
The scope of this appraisal encompasses those methods, necessary research, procedures and
investigations considered to be typical and appropriate for this class of property and the intended
use of the report, the Standards of Professional Practice of the Appraisal Institute of Canada and
the Uniform Standards of Professional Practices of the Appraisal Foundation. In regard to the
subject property, this involves the following:
1. A physical inspection of the subject properties under appraisal was undertaken on
May 15th, 2013.
2. During the property inspection the neighbourhood was inspected, noting relevant
competition characteristics and the general physical make-up. Zoning and tax
information was obtained from the Municipality of the District of Chester. Site Areas
and Assessed Values were obtained from the Property Valuation Services
Corporation. Site sizes were obtained from information supplied by the client with
regards to the subject properties under appraisal. This information has been relied
upon as accurate. In estimating the highest and best use of the subject, an analysis
was made of the surrounding land use and of the supply and demand for similar
type property within the general market area. The Direct Comparison Approach to
value is considered to be the only applicable land valuation technique. Sales data
has been obtained from the Multiple Listing Service of the Nova Scotia Association
of Realtors as well as information contained in the Appraiser’s working files. Other
real estate appraisers and Realtors may have also furnished information (data
derived from these sources has been verified whenever possible and is believed to
be accurate).
3. Compiling and analyzing data collected in the above areas assists in the estimation
of the Highest and Best Use for the subject property. The subject property is located
in an area that currently is zoned Institutional (I) Zone which permits a narrow
range of allowable uses from churches, to sewage treatment facilities. However,
the subject to be appraised based on a hypothetical scenario, that the zoning of the
subject properties under appraisal is Central Village Residential (CVR) Zone.
4. Verification of Third Party information: The analysis set out in this report relied on
written and verbal information received from a variety of sources we consider to be
reliable. Market data collected from other Appraisers, local Realtors, Property
Managers, the office files of Young & Associates and/or other such persons whom
are familiar with the subject market, have been utilized in developing the approach
to value. Unless otherwise stated herein, we did not verify client supplied
information, which we believed to be correct. The mandate for the appraisal did not
require a report prepared to the standard appropriate for court purposes or
arbitration, so we did not fully document or confirm by references primary sources
of all information herein.
5. A final estimate of value was made after assembling, examining and analyzing the
data defined in this Scope of the Appraisal.
6. The appraiser did not complete technical investigations such as:
- an environmental review of the property
- investigations into the bearing qualities of the soils
Young & Associates Real Estate Appraisals & Consultants
-4-
terms of reference continued . . .
PURPOSE OF THE APPRAISAL
The purpose of this Appraisal Report is to provide the client with an estimate of the Market Value
of the subject properties under appraisal of the Fee Simple Interest which is located at 82 Union
Street, Village of Chester, Municipality of the District of Chester, Nova Scotia.
INTENDED USE OF THE APPRAISAL
The intended use the Appraisal Report is to provide the client with an estimate of the Market Value
of the subject property located 82 Union Street, Village of Chester, Municipality of the District of
Chester, Nova Scotia as of effective date May 15th, 2013, for possible disposal.
PROPERTY INTEREST APPRAISED
The property rights being appraised in this report are those which will accrue to the owner of the
property described herein. This encompasses the rights normally attached to the freehold (or fee
simple) interest in the property under appraisal.
DEFINITION OF SIGNIFICANT TERMS
Fee Simple Estate: “Absolute ownership unencumbered by any other interest or estate;
subject only to the limitations of eminent domain, escheat, police power
and taxation.”
Leased Fee Estate: “ An ownership interest held by a landlord with the right of use and
occupancy conveyed by lease to others; the rights of lessor (the leased
fee owner) and the leased fee are specified by contract terms contained
within the lease” (lessor’s or landlord’s estate)
DEFINITION OF EXPOSURE TIME:
The estimate of market value is predicated on a reasonable period of exposure in the real estate
market. A reasonable exposure period is a function of price, time and use, not an estimate of time
alone.
The Appraisal Institute of Canada defines exposure time as follows:
"The estimated length of time the property interest being appraised would have been
offered on the market before the hypothetical consummation of a sale at market value on
the effective date of the appraisal; a retrospective estimate based upon an analysis of past
events assuming a competitive and open market".
The exposure time inherent in the market value concept is always presumed to precede the
effective date of the appraisal.
Young & Associates Real Estate Appraisals & Consultants
-5-
terms of reference continued . . .
DEFINITION OF MARKET VALUE
Market Value:Market Value is defined in Canadian Uniform Standards of Professional
Appraisal Practice as:
“The most probable price which a property should bring in a
competitive and open market under all conditions requisite to a fair
sale, the buyer and seller each acting prudently and knowledgeably,
and assuming the price is not affected by undue stimulus.”
Implicit in this definition is the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby:
a)buyer and seller are typically motivated;
b)both parties are well informed or well advised and acting in what they consider their
own best interest;
c)a reasonable time is allowed for exposure in the open market;
d)payment is made in terms of cash in Canadian dollars or in terms of comparable
financial arrangements comparable thereto; and
e)the price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated
with the sale.
Personal Property: “Identifiable portable and tangible objects which are considered by the
general public as “personal”, e.g., furnishings, art work, antiques, gems and
jewellery, collectibles, machinery and equipment and all property that is not
classified as real estate.”
Real Estate: “An identified parcel or tract of land, including improvements, if any.”
Real Property: “The interests, benefits, and rights inherent in the ownership of real estate.”
Young & Associates Real Estate Appraisals & Consultants
-6-
terms of reference continued . . .
TYPE OF PROPERTY UNDER APPRAISAL/SITE DESCRIPTIONS
PID# 60089760. The site contains a total area of about 28,500.0sf and is currently owned by the
client identified within this report. Based on the “Schedule A” contained within the last recorded
deed the site has frontage on Union Street of 114.0' and a depth along Prince Street of 250.0'.
Based on information obtained from the client and discussion with the planning department for the
Village of Chester, the subject site can be subdivided into two lots
The first lot being referred to as Lot #1, has frontage on Union Street of about 114.0' and an
approx depth of 160.0 feet making this lot about 18,200 square feet. Currently, this site is
developed with a small building situated on the southern end of this lot. It is understood that this
analysis does not include this building. This portion of the site is landscaped of average quality
with mature trees and shrubs. Due to the size and configuration, this lot has potential for
development within the hypothetical scenario, that the subject properties have a zoning of Central
Village Residential (CVR) Zone, which permits single unit dwellings.
The second lot being referred to as Lot #2, has frontage on Prince Street of about 90.0' and a
depth of about 114.0', and would have an area of about 10,200 square feet. The majority of this
lot has low lying areas. Based on information from the planning department for the Village of
Chester this lot is situated within a Watercourse Protection Area. Therefore, it is understood that
a development permit would not be issued for this lot. Further information can be viewed within
the addenda section of this report.
The subject properties under appraisal are located in an area that has independent wells and
municipal sewer services. Also available to the site are street lights, police and fire protection,
garbage removal, telephone, electricity and cable TV.
(Location Map and Site Plan of the subject sites can be viewed in the Addenda section of this
appraisal report.)
Young & Associates Real Estate Appraisals & Consultants
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terms of reference continued . . .
HISTORY OF THE SUBJECT PROPERTY
It is understood that subject properties have been owned by the current owners identified within
this appraisal report since 1984. It is understood that the subject properties under appraisal have
not been exposed to the open market within the last three years.
MORTGAGES, LIENS OR ENCUMBRANCES
The subject property is being appraised on the basis that there are no mortgages, liens or other
encumbrances claimed against it.
EFFECTIVE DATE OF THE APPRAISAL
This valuation applies as of May 15th, 2013 (inspection date). This valuation pertains to the
effective date and reflects the market conditions that prevail as of that specific date. Sudden
changes in value could occur due to economic conditions, regulatory changes, political factors,
physical changes etc. to the property. The market value expressed in this report applies as of the
effective date of the appraisal, and may not be a reliable indication of value as of another date.
REASONABLE EXPOSURE TIME
The final estimate of value assumes that the subject property was exposed for sale on the open
market in a manner typical for this class of property for at least three to twelve months prior to the
effective date.
Young & Associates Real Estate Appraisals & Consultants
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Regional and Neighbourhood Data
The subject property is situated in the Village of Chester. This area of the province is known as
the South Shore region which includes parts of Halifax, Lunenburg, Queens and Shelburne
Counties. The area is characterized by the Atlantic Ocean with many bays, coves and inlets
peppered along the coast line of the South Shore.
During the American Revolution the village avoided a raid by American Privateers through the
"rouge ruse” where the town’s women, young and old, garbed in cloaks with their red lining worn
outwards marched in an early morning of 30 June 1782 to successfully convince American
Privateers lying offshore to find another place to pillage. The following day the privateers
successfully executed the Raid on Lunenburg, Nova Scotia (1782).
During the War of 1812, the American Privateer Young Teaser was trapped off the shores of
Chester by the HMS Hogue (1811). To avoid capture, a crew member of the Young Teazer
destroyed his own ship, killing most of the crew. After World War 1, to honour the 54 soldiers from
the area that were killed, the famous New York sculptor J. Massey Rhind was commissioned to
make the Nova Scotia Highlander soldier cenotaph.
Chester is one of the wealthiest communities in the province as a result of being a vacation and
resort destination, with many seasonal and year round estates and mansions. The nearby waters
of Mahone Bay and its numerous islands are well known for yachting and have made Chester into
a cruising destination. A Provincial ferry from the village provides a schedule of daily trips to Big
Tancook Island and Little Tancook Island.
Chester was the site of a controversial proposal to change the status of the village. A committee
had been formed in hopes of changing the status of Chester by incorporating as a town, thereby
leaving the Chester Municipal District. Many residents of the village under the banner "Citizens for
Fairness" successfully fought the motion on the principle that the majority of citizens, by ballot,
should decide such a fundamental change.
Some also saw the possibility of higher taxes, costs for a town hall, a mayor, and water and
sewage services as reasons to not incorporate. They won the right to a plebiscite in the fall of 2002
from the Nova Scotia Legislature. The motion was defeated in a public plebiscite on February 22,
2003.
The Village of Chester is situated on the Chester Peninsula which extends into Mahone Bay and
has two natural harbours. Front Harbour (including Front Cove) on the east and Back Harbour
(including Back Cove or Mill Cove) on the west. The Village of Chester is also immediately south
of Stanford Lake
According to the 2011 Stats Canada Report the Municipality of the County of Lunenburg had a
population of 35,717, showing a 1.5% decrease from the 2006 Census Reports. (This includes the
Municipality of the District of Chester). The Village of Chester showed a population of 2,348
persons for the 2011 Census report
As of April 2013, the unemployment rate for the South Shore Region, including the Village of
Chester, is reported by Statistics Canada as being 9.0% (3 month moving average), in comparison
to the provincial rate of 9.2%. Some of the major employers in the region include Michelin Tire,
South Shore Regional Hospital and Fisherman’s Memorial Hospital, and a host of Agricultural,
Forestry, Fisheries and Tourism related businesses.
Young & Associates Real Estate Appraisals & Consultants
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Zoning/Planning
The subject properties are situated within a Institutional (I) Zone. This designation permits a
narrow range of allowable uses from churches, to sewage treatment facilities. However, the
subject are to be appraised based on a hypothetical scenario, that the zoning of the subject
properties under appraisal are situated within a Central Village Residential (CVR) Zone.
We have been provided with documentation relative to the re-zoning of the subject properties under
appraisal. However, this documentation only indicates, that if a re-zoning was initiated to maximize
residential development, then the most likely zone would be Central Village Residential (CVR).
Therefore, the Municipality of the District of Chester, would have to approve the application for the
re-zoning of the subject properties. Due to the absence this approval, I have invoked an
Extraordinary Assumption that the application for the re-zoning of the subject properties (Lot#1, and
#2) would be approved by the municipality. If the assumption proves to be otherwise, then our
estimated value may be impacted.
(Zoning By-laws can be viewed in the Addenda section of this report which give a full description
of the current uses.)
Assessment and Taxes
PAN# 00948845 (roll number)Residential Exempt
2013/14 Assessment $260,900.00
Tax Rate ($/100)$N/A
Property Taxes $2,191.56
The above information was obtained from the Municipality of the District of Chester. The subject
property has an assessed value of $260,900.00. The property taxes for the 2013/2014 taxation
year are $2,191.56. Due to the property being owned by the Municipality of the District of Chester,
the site is exempt from taxes. The amount shown, is the amount that would be paid if the property
was owned by a private individual or corporation.
We emphasize that the tax information included herein is a mathematical calculation based on the
most recent available assessment and the approximate tax rate. We cannot ensure the
continuance of the current tax system. Also, the property tax information for the year 2014 may
or may not be higher or lower than that indicated for the year 2013. Thus, the subject taxes may
vary significantly from those indicated and the value estimate herein may not reflect the actual
market value of the subject property.
Young & Associates Real Estate Appraisals & Consultants
Part II - Analysis and Conclusions
Young & Associates Real Estate Appraisals & Consultants
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Highest and Best Use
The principle of the highest and best use is a fundamental consideration in the valuation of real
property interests, The Appraisal of Real Estate Canadian Edition, defines Highest and Best Use
as:
" The reasonably probable and legal use of vacant land or an
improved property, which is physically possible, financially feasible,
and that results in the highest and best use."
The definition applies specifically to the highest and best use of the land. It is to be recognized,
however, that in cases where a site has existing improvements on it, the highest and best use may
very well be determined to be different from the existing use. The existing use will continue,
however, until such time as the value of the land vacant for its highest and best use exceeds the
total value of the property in its existing use.
The highest and best use must be:
1. Physically Possible - the size, shape, terrain, and soil conditions of the parcel of land
affect its physical utility and adaptability. The size, design and condition of an improved
property may suggest that rehabilitation, conversion or demolition are in order.
2. Legally Permissible - depends on public restrictions such as zoning, building codes,
historic park preservation regulations, and environmental controls as well as the private or
contractual restrictions found in deeds or long term leases.
3. Financially Feasible - uses that should produce returns that exceed the income
required to satisfy operating expenses and debt service (interest and amortization).
4. Maximum Return - among financially feasible uses, the use that produces the highest
price or value consistent with the rate of return warranted by the market. In our opinion, the
highest and best use of the subject property would be the continuation of it present use.
Young & Associates Real Estate Appraisals & Consultants
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highest and best use continued . . .
The subject properties under appraisal as identified within this appraisal report are situated within
the southeast area of the Municipality of the District of Chester within the rural Village of Chester.
From information obtained from the Municipality of the District of Chester, it is understood that the
subject properties are situated in an Institutional (I) Zone. This designation permits a narrow range
of allowable uses from churches, to sewage treatment facilities.
(Zoning By-laws can be viewed in the Addenda section of this report which give a full description
of the current uses.) Within the subject and surrounding areas there is a mixture of residential and
commercial, particularly conversion and renovation of older buildings, which has been ongoing in
this area over the last several years.
A decline of housing prices within the real estate market in 2007 and 2008 has reduced housing
prices and has slowed sales of existing housing along with construction of new housing. This has
reduced the demand for any development within the subject and surrounding communities.
However, within the past twelve months, housing prices have increased slightly within the South
Shore Region as a whole, based on current MLS statistics. This increase is due to a demand for
existing housing, based on lower prices. New home construction is still slower than recent years,
due to the current market demand. The shift to new construction will increase the demand for
residential building sites.
PID# 60089760. The site contains a total area of about 28,500.0sf and is currently owned by the
client identified within this report. Based on the “Schedule A” contained within the last recorded
deed the site has frontage on Union Street of 114.0'and a depth along Prince Street of 250.0'.
Based on information obtained from the client and discussion with the planning department for the
Village of Chester, the subject site can be subdivided into two lots
The first lot being referred to as Lot #1, has frontage on Union Street of about 114.0' and an
approx depth of 160.0 feet making this lot about 18,200 square feet. Currently, this site is
developed with a small building situated on the southern end of this lot. It is understood that this
analysis does not include this building. This portion of the site is landscaped of average quality
with mature trees and shrubs. Due to the size and configuration, this lot has potential for
development within the current zoning bylaws as identified within the report.
The second lot being referred to as Lot #2, has frontage on Prince Street of about 90.0' and a
depth of about 114.0', and would have an area of about 10,200 square feet. The majority of this
lot has low lying areas. Based on information from the planning department for the Village of
Chester, this lot is situated within a Watercourse Protection Area. Therefore, it is understood that
a development permit would not be issued for this lot. Further information can be viewed within
the addenda section of this report. Therefore, it is understood that Lot #2 would provide amenity
to the adjacent site, and the development of this lot would be in conjunction with the adjoining lot.
The subject properties under appraisal are located in an area that has independent wells and
municipal sewer services. Also available to the site are street lights, police and fire protection,
garbage removal, telephone, electricity and cable TV.
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highest and best use continued . . .
Residential use exists in the immediate area of the subject, while the bulk of the commercial use
properties are scattered throughout the subject area ranging from gas stations/convenience stores,
glass companies, auto repair shops, etc.
Also, there is an average housing stock combined with property used for seasonal use along local
waterways and small lakes within the area. There has been little to no development of residential
and or commercial construction over the past several years and appears that this will continue for
several more years.
Highest and Best Use may be defined as "that use, from among reasonably probable and legal
alternative uses, thought to be physically possible, appropriately supported, financially feasible and
which results in the highest land values." In most instances, the existing improvements will
constitute or represent the Highest and Best Use of land. It is to be recognized, however, that in
cases where a site has existing improvements on it, the Highest and Best Use may very well be
determined to be different from the existing use. The existing use will continue, however, until such
time as the value of the land vacant for its Highest and Best Use exceeds the total value of the
property in use or as improved. Analysis of the subject property in order to determine its potential
and most probable optimum use, the following factors were considered:
- The location of the property and its proximity to other markets
- The size, shape and physical features of the property.
- Legal (and physical) access to the property.
- Municipal services available.
- Local zoning and planning considerations.
- Size, condition and functional qualities of the improvements.
- Surrounding land use schemes.
- Real Estate and development trends, etc.
From information obtained from the Municipality of the District of Chester, it is understood that the
subject properties are situated within a Institutional (I) Zone. This designation permits a narrow
range of allowable uses from churches, to sewage treatment facilities. However, the subject are
to be appraised based on a hypothetical scenario, that the zoning of the subject properties under
appraisal is Central Village Residential (CVR) Zone.
We have been provided with documentation relative to the potential of the re-zoning of the subject
properties under appraisal. However, this documentation only indicates, that if a re-zoning was
initiated to a maximize residential development potential, then the most likely would be Central
Village Residential (CVR), zone. Therefore, the Municipality of the District of Chester, would have
to approve the application for the re-zoning of the subject properties. Due to the absence this
approval, I have invoked an Extraordinary Assumption that the approvals for the re-zoning of the
subject properties would be approved by the municipality. If the assumption proves to be
otherwise, then our estimated value may be impacted.
The highest and best use of the subject properties under appraisal as identified within this appraisal
report, as though vacant, is considered to be for development within the hypothetical scenario, that
the subject properties would be zoned Central Village Residential (CVR).
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Appraisal Process
There are three basic approaches available to the appraiser in the estimation of the market value
of the subject property. The methods and procedures of these approaches are summarized as
follows:
Income Approach - This approach is applied in the valuation of income producing or investment
properties. The basic steps of this procedure are the estimation of gross income less expenses
resulting in net income and the determination of an appropriate method of capitalization which,
when applied to net income, results as an indication of economic value. The subject property is not
an income producing property. Therefore, this approach will be not be used in this appraisal report.
Cost Approach - The Cost Approach consists of two basic components. Firstly, the valuation of
the land as if free and clear of improvements under its highest and best use and secondly, the
estimation of the replacement cost new of the improvements less any loss in value (depreciation)
due to deterioration or obsolescence. The Cost Approach is applicable to new and special purpose
properties. Typically properties such as the subject property do not trade based on the replacement
cost. In the case of the subject property, this method is not considered to be reliable due to the
subject properties being vacant land, therefore, it is concluded that this approach will not be used
in this appraisal report.
Direct Comparison Approach - Typically, this approach involves the analysis of properties of
comparable nature which have sold on the open market of recent date. Where applicable, the sale
price of each comparable sale is adjusted for dissimilar features such as differences in market
conditions, physical factors and locational characteristics. Adjustment for differences equates the
sale prices of comparable sales to an expression of market value applicable to the subject. The
data used for this comparison come from the Multiple Listing Services sales data available to the
appraiser, as well as data of private sales. Adjustments are made on a dollar or percentage basis
to correct for differences where the comparable properties are considered inferior or superior to
the subject property. Therefore this approach will be used in this appraisal.
Concluded Methodology
The Direct Comparison Approach will be utilized to value the subject property under appraisal and
is considered to be the applicable valuation technique for the property located at: Lot #1
(18,200.0sf), Lot #2 (10,200.0sf) Both being portion of PID# 60089760, 82 Union Street, Village
of Chester, Municipality of the District of Chester, Nova Scotia.
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appraisal process continued . . .
The valuation process is the orderly program in which the data used to estimate the value of the
subject property is acquired, classified, analyzed and presented. The first step in the process is
to define the appraisal problem, i.e., to identify the real estate, the effective date of the value
estimate, the property rights being appraised and the type of value sought. Once this has been
accomplished, the appraiser collects and analyzes the factors that affect the market value of the
subject property. These factors are addressed in the area and neighbourhood analysis, the site
and improvement analysis, the highest and best use analysis, the application of the three
approaches to value (income approach, cost approach, and direct comparison approach).
Land Valuation Techniques
Land value is a local product. It arises from supply and demand in the market where the property
is located and bears only coincidental relationship to the value of similar land in other localities.
The valuation of land must therefore be based on analysis of its local market. Whether vacant or
improved with buildings, land is usually valued as if available for development to its highest and
best use - the most probable legal use which will yield the greatest return. This use must be
acceptable to the market and must conform to existing zoning and land use ordinances. If there
are improper improvements on the land and it is not available for development to its highest and
best use, the land value may need adjustment to reflect demolition and other costs necessary to
make it available for proper development.
The six procedures used to value land are:
1. Direct Comparison - This is the most commonly used and generally most reliable approach
for valuing vacant land providing a sufficient number of comparable land sales exist. Sales of
similar types of vacant land are derived from the market and are reduced to an appropriate unit of
comparison (i.e., price/m2, price/sf, price/ha, price/acre, price/lot, price/suite ). Where necessary,
the unit sale prices are adjusted for differences such as date of sale, location, and physical factors.
The adjusted unit prices are applied to the subject land to arrive at an indication of market value.
For the subject, this is the most appropriate method of valuation and has been adopted.
2. Allocation - This technique is based on the typical ratio of land value to improvement value for
specific categories of real estate. This method is inappropriate for the subject which contains
undeveloped land and where other vacant land sales can be considered.
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appraisal process continued . . .
4. Subdivision Development - This technique, applicable chiefly to undeveloped lands, calls for
estimating total value as if the lands were subdivided and sold, and subtracting the development
costs. The subject property does not appear to have this imminent potential. Therefore, this
approach is not considered in this report.
5. Land Residual - This method is similar to the abstraction method but is intended for income
producing properties. Net income is determined and the amount of this income attributable to
improvement is determined. The remainder of the income is capitalized into an indication of the
site value. This approach is not employed in the report.
6. Ground Rent Capitalization - This technique is used to value land when the ground rent
corresponds to the value of the landowner’s interest in the property and market-derived
capitalization rates are available to convert the ground rent into an indication of market value. This
approach is not employed in the report.
All six procedures are derived from the three basic approaches to value. Sales Comparison and
Income Capitalization (i.e., ground rent capitalization) can be directly applied to land valuation.
Allocation and Extraction procedures reflect the influence of the Direct Comparison and Cost
Approaches; the Land Residual technique is based on the Income Capitalization and Cost
Approaches. Subdivision Development draws on elements of all three approaches.
Concluded Methodology
The Direct Comparison Approach will be referenced to estimate the market value of the subject
property located at Lot #1 (18,200.0sf), Lot #2 (10,200.0sf) Both being portion of PID# 60089760,
82 Union Street, Village of Chester, Municipality of the District of Chester, Nova Scotia. and is
considered to be the only applicable valuation technique.
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Direct Comparison Approach
The Direct Comparison Approach is a method of estimating market value whereby a subject
property is compared with similar properties that have sold recently. Preferably, all properties are
situated in the same area. One premise of the Direct Comparison Approach is that the market will
determine a price for the property being appraised in the same manner that it determines the prices
of comparable, competitive properties. Essentially, this approach is a systematic procedure for
carrying out comparative shopping. As applied to real estate, the comparison is applied to the
unique characteristics of the economic good that cause real estate prices to vary.
When applying the Direct Comparison Approach, the appraiser follows a systematic procedure and
must always compare like with like. The steps of the procedure are as follows:
1. Research the market to obtain information about transactions, listings and other
offerings of properties similar to the subject property.
2. Verify the information by considering whether the:
a). Data obtained are factually accurate,
b). Transactions reflect arm’s-length market considerations (an appraiser verifies
information by consulting a knowledgeable source).
3. Determine relevant units of comparison.
4. Compare the subject and comparable sales according to the elements of comparison
and adjust the sale price of each comparable as appropriate.
5. Reconcile the multiple value indications that result from the comparable into a single
value indication.
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direct comparison approach continued . . .
Introduction
The Direct Comparison Approach is a process of comparing market data; that is the price paid for
similar properties, prices asked by owners, and offers made by prospective purchasers willing to
purchase. It is good evidence of value because it represents the actions of buyers and sellers in
the market.
The Direct Comparison Approach is based on the principle of "substitution", which implies that a
prudent purchaser will not pay more to buy or rent a property than what it will cost to buy or rent
a comparable substitute property. This approach to value recognizes that the typical buyer will
compare properties which constitute the market for a given type and class of property.
In making comparisons between properties, similarities and dissimilarities must be recognized. The
conclusions which are deemed to be most dependable are those based upon comparisons of
factors and conditions which are very much alike. However, in the valuation analysis, consideration
must be given to dissimilarities that affect the relative desirability and utility of the sales, compared
to that of the subject property.
Traditionally, the major elements of comparison are location, physical characteristics and sale date,
with the objective being to deduce from the data of the sales, the price which the property under
appraisal would command, if exposed for sale on the market for a reasonable time, as of the date
of valuation.
As part of this assignment, 10 sales were reviewed. Due to the scope of this appraisal assignment
and the terms of reference I have not relied on sales to or from governments or government
agencies. From this body of market information, I have selected 6 sales which, in my opinion, were
most relevant and of greatest assistance in providing an indication of the market value of the
subject property.
Only the most relevant comparable properties are detailed in this report. The properties are
summarized on the following chart (entitled Summary of Most Relevant Comparable Properties).
The properties were inspected (external inspection from the vantage point of the abutting roads)
and were compared to the subject property. The sales chart is followed by an analysis providing
further details of the sale properties and their comparison to the subject property as though vacant.
The unit of comparison in this valuation is “price per square foot”.
In my opinion, the variance in price indicated by the comparable sales is due to a number of factors
including date of sale, location, size, motivation, other physical characteristics of each of the
comparable properties. Therefore, adjustments have been applied to selected comparable sales.
There are a limited number of recent comparable land sales in the area. Upon surveying the real
estate market, the appraiser has compiled the details of these properties and has listed them in the
table shown on the following page. These property transactions represent a reasonable cross
section of the vacant land sales as it pertains to the subject property.
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Summary of Most Relevant Comparable Properties.
Sale #Comparable
Property
Sale Date
(M/D/Yr)
Sale
Price
Area
Square
Foot
Price
/Square
Foot
Comments
1 North Street, Village
of Chester
Lunenburg Co. NS
02.07.2012 $96,000 21,527.00sf $4.45/sf Vacant site. Located within The Village of Chester, site
provides good utility, road frontage and is located within
same area as the subject sites. Municipal sewer services
and independent wells, similar to subject property .
Zoned Highway Commercial (HC)
2 Lot 46, Hawthorn
Road, Mahone Bay,
NS,
“Hawthorn Hill”
12.14.2012 $70,000 19,484.67sf $3.59 / sf Vacant site. Located within the Town of Mahone Bay,
mostly cleared with good utility, with average road
frontage and good location.
Zoned Residential (R)
3 Lot #1, Tops’L Lane,
Chester
Lunenburg Co. NS.
11.17.2010 $175,000 24,479.00sf $7.14/sf Vacant site. Located within the Village of Chester on
Tops’L Lane. Site provides good utility, road frontage
and has a partial water view of the front harbour.
Municipal sewer services and independent wells, similar
to subject property
Zoned Low Density Residential (LDR)
4 Lot #108, Regent
Street, Chester
Lunenburg Co. NS.
03.17.2010 $75,000 5,382.00sf $13.94/sf Vacant site. Located within the Village of Chester on
Regent Street, Site provides good utility, road frontage
and is located within same area as the subject sites.
Municipal sewer services and independent wells, similar
to subject property Older dwelling on site.
Zoned Central Village Residential (CVR)
5 Victoria Street,
Chester
Lunenburg Co. NS.
05.25.2009 $85,000 9,000.00sf $9.44/sf Vacant site. Located within the Village of Chester on
Victoria Street. Site provides similar utility to comparable
#3, and has good road frontage and with distant water
view of the harbour. Municipal sewer services and
independent well, similar to subject property
Zoned Central Village Residential (CVR)
6 Hospital Road,
Garden Lots,
Lunenburg Co. NS.
09.28.2009 $110,000 11,500.00sf $9.56/sf Vacant site. Located within a rural community of Garden
Lots, mostly cleared with good utility, water views,
situated in an area of independent wells and septic
systems. Average road frontage and good location.
Zoned General Basic (GB)
Subject
Property
Lot #1 (18,200.0sf),
Lot #2 (10,200.0sf)
Both being portion
of PID# 60089760, 82
Union Street, Village
of Chester,
Municipality of the
District of Chester,
Nova Scotia
N/A N/A Average
Site Area
per
square foot
15,228.00
Average
Price per
square foot
$8.02
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direct comparison approach continued. . .
Market Data Analysis and Adjustments.
The foregoing Summary of Most Relevant Comparable Properties outlines comparable sales
analyzed in the valuation of the subject properties. The sales have been evaluated on the price per
square foot of site area. The rates/sf range from $3.59 to $13.94/sf with an average rate of
$8.02/sf.
Adjustments have been made to the transactions based on the following considerations.
Property Rights - all of the transactions reflect the acquisition of the freehold interest in the
property and no adjustment is warranted.
Financing Terms - all of the properties are believed to have been traded on a cash basis with no
special financing consideration. Therefore no adjustment is warranted.
Conditions of Sale - all of the properties are believed to have been traded on an arm’s length
basis with no undue stimuli on the part of the seller and the buyer. Therefore, no adjustment is
warranted.
Market Conditions - adjustments have been made to all the transactions to reflect the estimated
change in land values between the date of the comparable sales and the effective date of the
appraisal. The adjustment has been based on the average change in the MLS Statistics from the
Nova Scotia Association of Realtors.
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direct comparison approach continued. . .
In addition to the foregoing markets adjustment, qualitative rankings have been made to the
comparable sales data for location, lot size, and services. No substantive basis for the quantitative
adjustments for these factors has been identified. Therefore, the comparable sales have been
ranked based on relative comparability to the subject properties under appraisal as outlined in the
following. A single point system has been assigned for each factor based on whether a sales is
superior, inferior, or similar to the subject properties in these elements. (+1 - Superior, -1 - Inferior,
and 0 - Similar)
Location Adjustment - The comparable sales are all located within communities that would be
considered similar to the subject properties. However, these sales reflect a wide range of locational
characteristics from similar residential use to highway commercial use.
Lot Size Adjustment - The comparable sales have lot sizes ranging from 5,382 to 24,400 square
feet and the subject properties, Lot #1, and Lot #2, are similar to the comparable sales with regards
to lot size. Therefore, it is understood that Lot #2 would provide amenity to the adjacent site, and
the development of this lot would be in conjunction with the adjoining lot.
Services Adjustment - The subject property under appraisal is situated within the Village of
Chester, where independent wells and municipal sewer services exist. The comparable sales are
also located within similar areas of independent wells and municipal sewer services.
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direct comparison approach continued. . .
The following table summarizes the following adjustments and ranking consideration for the
comparable sales.
Summary of Adjustments and Ranking Analysis
Sale # Price /sf Market Time Adjusted Total
Conditions Price Location Size Services Point Comparability
1 $4.45 $0 $4.45 0 +1 0 +1 Inferior
2 $3.59 $0 $3.59 +1 0 0 0 Inferior
3 $7.14 $0 $7.14 0 +1 0 +1 Superior
4 $13.94 $0 $13.94 0 +1 +1 +2 Superior
5 $9.44 $0 $9.44 0 0 0 0 Similar
6 $9.56 $0 $9.56 0 0 +1 +1 Inferior
After analysis, the range of adjusted sale price per square foot range from $5.50/sf to $9.25/sf with
an average rate of $7.40/sf. The comparable sales have been ranked based on the relative size,
quality, condition, location and features in comparison to the subject. However, it is the appraiser’s
opinion that comparable sales #3 and #5 are considered to be closely ranked comparable
properties.
These two comparable sales provide an adjusted range of $7.00 to $8.50 per square foot with an
average rate from this group of $7.75 per square foot rounded, which is supported by the
unadjusted average rate of the comparable sales. There is no basis for suggesting that the subject
property would be more closely reflected by either of these two comparable sales, therefore, the
average per square foot rate is accepted and will be applied to the area of the subject property
under appraisal.
Lot #2, As stated within the report and based on information from the planning department for the
Village of Chester, this lot is situated within a Watercourse Protection Area. Therefore, it is
understood that a development permit would not be issued for this lot. Further information can be
viewed within the addenda section of this report. Therefore, it is understood that Lot #2 would
provide amenity to the adjacent site, and the development of this lot would be in conjunction with
the adjoining lot. Therefore, it is understood that Lot #2 would provide amenity to the adjacent site,
and the development of this lot would be in conjunction with the adjoining lot. Amenity land provides
contributory value to the front land, typically, amenity land would contribute about 8.0% to 12.0%
of the front land value. This reduced rate is mainly due to the reduced utility, and the location of the
amenity land.
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direct comparison approach continued. . .
Adjustments for the differences between the sale and subject property have been made. These
adjustments are based on professional judgment and market observations. These adjustments
should not be interpreted as being absolute market derived, such as through paired sales method
or by statistical analysis. The sale price of each sale has been broken down to a price per square
foot.
From information obtained from the Municipality of the District of Chester, it is understood that the
subject properties are situated within a Institutional (I) Zone. This designation permits a narrow
range of allowable uses from churches, to sewage treatment facilities. However, the subject are
to be appraised based on a hypothetical scenario, that the zoning of the subject properties under
appraisal is Central Village Residential (CVR) Zone.
We have been provided with documentation relative to the potential of the re-zoning of the subject
properties under appraisal. However, this documentation only indicates, that if a re-zoning was
initiated to a maximize residential development potential, then the most likely would be Central
Village Residential (CVR), zone.
Therefore, the Municipality of the District of Chester, would have to approve the application for the
re-zoning of the subject properties. Due to the absence this approval, I have invoked an
Extraordinary Assumption that the approvals for the re-zoning of the subject properties would be
approved by the municipality. If the assumption proves to be otherwise, then our estimated value
may be impacted.
The highest and best use of the subject properties under appraisal as identified within this appraisal
report, as though vacant, is considered to be for development within the hypothetical scenario, that
the subject properties would be zoned Central Village Residential (CVR).
PID# 60089760. The site contains a total area of about 28,500.0sf and is currently owned by the
client identified within this report. Based on the “Schedule A” contained within the last recorded
deed the site has frontage on Union Street of 114.0'and a depth along Prince Street of 250.0'.
Based on information obtained from the client and discussion with the planning department for the
Village of Chester, the subject site can be subdivided into two lots.
The first lot being referred to as Lot #1, has frontage on Union Street of about 114.0' and an approx
depth of 160.0 feet making this lot about 18,200 square feet. Currently, this site is developed with
a small building situated on the southern end of this lot. It is understood that this analysis does not
include this building. This portion of the site is landscaped of average quality with mature trees and
shrubs. Due to the size and configuration, this lot has potential for development within the current
zoning bylaws as identified within the report.
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direct comparison approach continued. . .
The second lot being referred to as Lot #2, has frontage on Prince Street of about 90.0' and a depth
of about 114.0', and would have an area of about 10,200 square feet. The majority of this lot has
low lying areas. Based on information from the planning for the Village of Chester, this lot is
situated within a Watercourse Protection Area. Therefore, it is understood that a development
permit would not be issued for this lot. Further information can be viewed within the addenda
section of this report. Therefore, it is understood that Lot #2 would provide amenity to the adjacent
site, and the development of this lot would be in conjunction with the adjoining lot. Amenity land
provides contributory value to the front land, typically, amenity land would contribute about 8.0% to
12.0% of the front land value. This reduced rate is mainly due to the reduced utility, and the location
of the amenity land.
Typically, as the area of the residential sites increase, the cost per square foot would decrease and
as the land area decreases, the cost per square foot would increase. This would make it much
easier in valuing residential sites. Based on the foregoing analysis, a per square rate of $7.75 will
be applied to Lot #1, and a rate of $1.37 will be applied to Lot #2. It is understood that the market
value of the lots identified within this report, is subject to the approvals from the Municipality of the
District of Chester, for the subdivision of the two lots. Therefore, the final estimate of market value
by the Direct Comparison Approach for the Subject Properties as identified within this appraisal
report is estimated at:
Calculation: Lot #1, 18,200.00 sf X $7.75/sf = $141,000.00 rounded
Lot #2, 10,200.00 sf X $1.37/sf= $14,000.00 rounded
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Reconciliation and Final Estimate of Value
The indications of value arrived by the approach employed in this report is summarized as follows:
Lot #1 (18,200.0sf), Lot #2 (10,200.0sf) Both being
portion of PID# 60089760, 82 Union Street, Village of
Chester, Municipality of the District of Chester, Nova
Scotia
Direct Comparison Approach Lot #1, 18,200.00 sf X $7.75/sf = $141,000.00 rounded
Lot #2, 10,200.00 sf X $1.37/sf= $14,000.00 rounded
The purpose of this appraisal report is to estimate the market value, as of May 15th , 2013 to aid the
client, Municipality of the District of Chester for possible disposal purposes of the subject properties.
To this end, the appraiser has inspected the subject land, surrounding neighbourhood and general
area. A search of the market has been made to find all and any data which is considered pertinent
in the valuation of the subject property.
To estimate the market value of the subject property, the most applicable approach for this type and
class of property was utilized within the appraisal report. The Direct Comparison Approach was
considered the most applicable approach to value and comparable sales throughout the
neighbourhood and surrounding areas were located and analyzed with market adjustments being
made for the differences between the subject and comparable properties utilized.
After carefully considering all factors affecting value including size, shape and location of the sales,
topography, zoning, highest and best use, developments in the area, accessibility, services available
and comparable sales data, it is the appraiser’s opinion that the market value of the subject property
has been provided by the findings of the Direct Comparison Approach.
Therefore, as of May 15th, 2013, the market value of the subject properties is considered to be
reasonably represented at:
Market Value Of Lot #1
$141,000.00
(One hundred and forty one thousand dollars) (rounded)
Market Value Of Lot #2
$14,000.00
(Fourteen thousand dollars)(rounded)
Young & Associates Real Estate Appraisals & Consultants
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Certification
Subject Property: Valuation of :Lot #1 (18,200.0sf), Lot #2 (10,200.0sf) Both being
portion of PID# 60089760, 82 Union Street, Village of
Chester, Municipality of the District of Chester, Nova
Scotia
I certify that, to the best of my knowledge and belief,
- The statements of fact contained in this report are true and correct;
- The property was personally inspected on May 15th, 2013. I have not withheld any comments or
observations which might affect the opinion of value stated in this report.
- The analyses, opinions and conclusions reported herein are my personal and unbiased views and
are limited only by the Contingent and Limiting Conditions contained herein.
- I have no past, present or contemplated future interest in the real estate which is the subject of this
report, and that I have no personal interest or bias with respect to the parties involved;
- My compensation is not contingent upon any action or event resulting from the analyses, opinions
or conclusions in, or the use of this report;
- This appraisal has been made in conformity with, and is subject to, the Canadian Uniform Standards
of Professional Appraisal Practice as well as the By-laws and regulations of the Appraisal Institute of
Canada and the Nova Scotia Real Estate Appraiser Association. This report is subject to review by
duly authorized representatives of these bodies.
- No one provided significant professional assistance to the person signing this report.
- I am presently re-certified under the continuing education program of the Appraisal Institute of
Canada,
- In my opinion, the estimate market value of the subject property, as of May 15th, 2013,
was:
Market Value Of Lot #1
$141,000.00
(One hundred and forty one thousand dollars)(rounded)
Market Value Of Lot #2
$14,000.00
(Fourteen thousand dollars)(rounded)
Young & Associates Real Estate Appraisals & Consultants
Kenneth T. Young, AACI, P.App
Broker /Owner / Senior Appraiser
NSREAA Registration ¹ 302146
June 24th, 2013
Date of Report
Young & Associates Real Estate Appraisals & Consultants
Part III - Addenda
Young & Associates Real Estate Appraisals & Consultants
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Schedule “A”Subject Property Photographs
View of Subject Property
Lot #1, Looking North
View of Subject Property
Lot #2, Looking South
Street Scene of Subject
Property Lot #1,and #2
Looking North
Subject
Properties
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Schedule “B”Site Plan.
This site plan is only for illustrating the location of the subject properties under appraisal and is not
to scale and should not be relied upon as being a true copy.
Subject
Property
Lot #2
Subject
Property
Lot #1
Young & Associates Real Estate Appraisals & Consultants
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Schedule “C”Location Map
Subject
Property
Young & Associates Real Estate Appraisals & Consultants
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Schedule “D” Zoning Regulations.
(Source: Village of Chester, Land Use By-Law Schedule “A” Zoning Map.)
Young & Associates Real Estate Appraisals & Consultants
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Schedule “D” Zoning Regulations cont..
Young & Associates Real Estate Appraisals & Consultants
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Schedule “D” Zoning Regulations cont..
Young & Associates Real Estate Appraisals & Consultants
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Schedule “D” Zoning Regulations cont..
Subject
Property
Young & Associates Real Estate Appraisals & Consultants