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~~~~~/~~~ <br />~~~~~~ ~ <br />~~~ ~'~~ ~r~~c <br />REAL ESTn! E A~JAL1'STs <br />October 4, 1999 <br />Mr. Craig Lewis <br />Project Manager <br />Melvin Mark Companies <br />111 SW Columbia, Suite 1380 <br />Portland, Oregon 97201 <br />RE: Aighest and Best Use - Planned 4-Story Building <br />Chemeketa and High Street - Salem, Oregon <br />Dear Mr. Lewis: <br />"' E . ~ <br />~., , ~? - ? -,-? <br />Tha.nk you for requesting a proposal to prepare a Highest and Best Use study for the captioned <br />property. From our meeting with Mr. Curtis, Mr. Whittington and you on September 23, 1999, in <br />Salem, it is my understanding we would study the following development scenarios: <br />^ Scenario 1- First floor retail and up to three stores of office space <br />^ Scenario 2- First floor retail and up to three stories of apartments <br />^ Scenario 3- Up to four stories of office space <br />^ Scenario 4 - Retail only <br />The Highest and Best Use siudy will address the supply and demand components for each of these <br />scenarios, as well as size constraints driven by parking issues. In addition, we will present a <br />hypothetical value for each scenario recognizing a hypothetical building which would be similar to <br />the construction and quality of the Courthouse Square building. The process is to estimate a value <br />for each of the scenarios and deducting the estimated construction cost and absorption cost. This <br />process would result in a residual value for the land. The scenario that indicates the highest land <br />value would represent the highest and best use of the site. We would assume the site would be <br />improved with 56 parking spaces and a concrete floor ready for construction. The estimated cost for <br />those improvements are $1,000,000 and those costs would not be deducted to determine the site <br />value. <br />SUITE 200 • ll0 SW YAIvIHILL STREET • PORTL.3ND, OREGOi~ 972G4 0(5U3) 22o-i)98; ~~ FAX (~03j 2; 3-1273 <br />YV1TH OFFIC~S IN <br />VANCOUVER, SEATTLE, SACRAMENTO AND SALE[vt <br />DON;,LU R. PALbSER, l1AI DAVID T. HiLL . CHRISTOPHER VP.TERL ;US SPF'4CF P!.>~'r61.L '.I.~.~~: <br />GAVIC W. GRUTH, MAI PHILIP l.5TEFFEN, MAI M.4RIC!~t. [,AN^~NSLL, Mi~f S°.IA~: L.'s~:cLCi':: .`. -.. <br />UAVID E. I'IET3:,4, MAI CHRISTOPHER. K. MONGER, b1AI TL~10T1-?l' E. !VR1Gli'[,'.IAi ;~:)uU 5. Li[.E~"~4`,'. !.1.~•,i <br />