|522 FW 6, Exhibit 1
Sample Memorandum - Opinion of Value
Subject: Memorandum of Value for Fee Title
The Donnally tract is located in Benton County, Oregon, lying approximately 14 miles southwesterly of Corvallis, Oregon, and about one mile west of U.S. Highway 99W. The tract is bounded on the north by tracts (1 8) and (25), the east by tract (1 8), and the south and west by Barclay Road. See attached survey plat and description for an exact delineation of the subject. I was accompanied by the owner on an inspection of the property on Monday morning, September 30, 1992.
Tract (27) is a 7.4-acre (3 ha) parcel, being a part of a larger 55+ acre (22.3 ha) ownership. The subject is physically severed by a gravel county road and in my opinion this acquisition will cause no severance damage nor constitute a business loss to the remainder.
The physical character of the subject is low and brushy. Because of its proximity to Muddy Greek, tract (27) is inundated during periodic high water flows of the creek. Being located within a flood plain, the subject has no uses such as a rural cabin or homesite development. This opinion is based on typical investor attitudes with respect to small subdivisional acreages in rural areas.
No improvements presently exist on the subject.
Recent market sales and listings of property lying in close proximity to the tract indicate a value range of $325 to $500 per acre. These values are indicative of market attitudes with regard to acreages ranging from 48 acres (1 9.4 ha) up to 391 acres (1 58.3 ha). The subject itself sold as a 55-acre (2-2.3 ha) parcel for $400 per acre in December 1990.
It is noted that larger ranch properties, which have been subdivided, have resold as small recreational tracts for $800 to $1,000 per acre. These small properties, however, have view and topographical advantages over tract (27).
Therefore, based on the sales data as previously discussed, ft is my
opinion that the market value of tract (27) is $650 per acre or $4,81 0
overall as of October 1, 1992, my last day on the premise. This total estimate
of fair market value is rounded to $4,800. 1 have no present or contemplated
future interest in the subject property.
(Signature, title and date)