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Cost Approach 35
<br />Cost Approach
<br />The steps taken to apply the cost approach are:
<br />• Develop an opinion of the value of the land as though vacant and available to be developed to
<br />its highest and best use, as of the effective date of the appraisal;
<br />• Estimate the replacement cost new of the existing improvements using Marshall Valuation
<br />Service;
<br />• Estimate depreciation from all causes and deduct this estimate from replacement cost new to
<br />arrive at depreciated replacement cost of the improvements; and
<br />• Add land value to the depreciated replacement cost of the improvements to arrive at a market
<br />value indication for the property overall.
<br />The following tables summarize our valuation by the cost approach.
<br />Replacement Cost Estimate
<br />Building Improvements
<br />Bldg Name
<br />MVS Building Type
<br />MVS Class Quality
<br />Quantity
<br />Unit
<br />Unit Cost
<br />Cost New
<br />Pool Building
<br />Shower Room Buildings
<br />C Cheap
<br />1,908
<br />SF
<br />$63.12
<br />$120,433
<br />Storage /Restroom
<br />Restroom Buildings
<br />C Low cost
<br />2,848
<br />SF
<br />$91.65
<br />$261,019
<br />Press Box /Concessions
<br />Storage Buildings
<br />C Low cost
<br />1,753
<br />SF
<br />$47.16
<br />$82,671
<br />Subtotal - Replacement Cost New
<br />$464,124
<br />Plus: Indirect Cost
<br />5%
<br />$23,206
<br />Su btota 1
<br />$487,330
<br />Plus: Entrepreneurial Profit
<br />10%
<br />$48,733
<br />Total Replacement Cost New
<br />$536,063
<br />Site Improvements
<br />Item
<br />Quality
<br />Quantity
<br />Unit
<br />Unit Cost
<br />Cost New
<br />Fencing
<br />Average
<br />2,693
<br />LF
<br />$9.47
<br />$25,503
<br />Athletic Field Lighting
<br />Average
<br />3
<br />Each
<br />$53,371.50
<br />$160,115
<br />Swimming Pool
<br />Average
<br />4,788
<br />SF
<br />$54.76
<br />$262,191
<br />Baseball fields
<br />Average
<br />2
<br />Each
<br />$100,000.00
<br />$200,000
<br />Concrete bleachers
<br />Average
<br />5,180
<br />SF
<br />$71.47
<br />$370,215
<br />Footba I I fi el d
<br />Average
<br />1
<br />Each
<br />$40,000.00
<br />$40,000
<br />General site improvements
<br />Average
<br />1
<br />Total
<br />$50,000.00
<br />$50,000
<br />Scoreboards
<br />Average
<br />2
<br />Each
<br />$2,134.86
<br />$4,270
<br />Baseball backstops
<br />Average
<br />1
<br />Each
<br />$2,854.22
<br />$2,854
<br />Football goalposts
<br />Average
<br />1
<br />Pair
<br />$2,236.96
<br />$2,237
<br />Subtotal - Replacement Cost New
<br />$1,117,384
<br />Plus: Indirect Cost
<br />5%
<br />$55,869
<br />Subtotal
<br />$1,173,253
<br />Plus: Entrepreneurial Profit
<br />10%
<br />$117,325
<br />Total Replacement Cost New
<br />$1,290,578
<br />Overall Property
<br />Building Improvements
<br />$464,124
<br />Site Improvements
<br />$1,117,384
<br />Subtotal - Replacement Cost New
<br />$1,581,507
<br />Plus: Indirect Cost
<br />5%
<br />$79,075
<br />Su btota 1
<br />$1,660,583
<br />Plus: Entrepreneurial Profit
<br />10%
<br />$166,058
<br />Total Replacement Cost New $1,826,641
<br />Source: Marshall Valuation Service except for Indirect Costs and Entrepreneurial Profit, which are appraiser's estimates.
<br />The Glenn Center
<br />irr
<br />Attachment number 1
<br />H -5 Page 368
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