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October 17, 2011 (Regular Meeting) Page 693 priced according to the base price and conditioned back at the discretion of the appraiser. THE BASE PRICE METHOD INDUSTRIAL ACREAGE LAND MODEL 06 The Base Price Method of appraising industrial acreage is referred to as Land Model 06. This land model is utilized to reflect market value when appraising acreage in areas that typically have access to all utilities. The market indicates that land values change when properties have different amenities such as road frontage, road types, the size of the parcel, or lack public utilities. Land Model 06 is also an excellent appraisal tool when utilizing the neighborhood concept for different locations within the jurisdiction being appraised. The following is a description of how these factors affect each parcel of land: A. Location: Location is the key factor in the determination of market value in the County. Depending on market demand and sales prices, Base Price Areas were established throughout the County. Within each base price area other location factors may be applied to a given parcel. The concept of neighborhood homogeneity may tend to affect values as the parcel comes more under the influence of the neighborhood and less under the influence of the total base area. The market demands higher prices for property in or near active market areas. Desirable subdivisions, availability of water and sewer, proximity to shopping areas, higher base price areas and the existence of amenities are factors which tend to increase market demand. The inverse may be true for parcels near a declining subdivision or undesirable industrial use area. These influences must be determined and adjusted on an individual bases by the appraiser. B. Size: The size of a parcel plays a major role in determining the per acre price at which a parcel of land will sell. The total price asked for a parcel of land has an indirect correlation with the number of potential buyers in the market. This situation stimulates more price negotiation and longer turnover periods for large tracts. Consequently, the actual cash value per acre decreases as the size of the parcel increases. The value of small lots containing less than one acre depends greatly on zoning and health department restrictions, therefore, these lots are typically priced by the lot, square foot or front foot. Tracts priced by the acre are typically priced using the base price method in conjunction with following size factor chart: SIZE ADJUSTMENTS INDUSTRIAL ACREAGE Land Model 06 Acreage Range Size Factor Calculation Acreage Range Size Factor Calculation .001 - .250 Ac Acres x Base x 160% 25.001 - 100.000 Ac Acres - 25 x Base x 75% +[(25 x Base x 100 %) Formula - (( Acres - 25) x 75 %) +25.00 Acres .259 - .750 Ac Acres - .250 x Base x 175% + (.250 x Base x 160 %) 100.001 - 250.000 Ac Acres - 100 x Base x 60% + (25 x base x 100 %) Formula - (( Acres - .250) x 175 %) + .40 + (75 x Base x 75 %)] Acres Formula - (( Acres - 100) x 60 %) + 81.25 Acres .751 - 2.000 Ac Acres x Base x 170% 250.001 - 500.000 Ac Acres - 250 x Base x 40% + [(25 x Base x 100 %) 2.001 - 6.000 Ac Acres - 2.000 x Base x 115% + (75 x. Base x 75 %) + (2.000 x base x 170 %) + (150 x Base x 60 %)] Formula - (( Acres - 250) x 40 %) + 171.25 Formula - (( Acres - 2.000) x 115 %) + 3.40 Acres Acres 500.001 - 750.000 Ac Acres - 500 x. Base x 250 + [(25 x Base x 100 %) + (75 x Base x 75 %) 6.001 - 20.000 Ac Acres - 10 x Base x 87% + (150 x Base x 60 %) + [(2.00 x Base x 170%) + (250 x Base x 40 %)] + (4.00 x Base X 115 %)] Formula - (( Acres - 500) x 25 %) + 271.25 Formula - (( Acres - 6) x 87 %) + 8.00 Acres Acres 750.001 - UP Acres - 750 x Base x 15% 20.001 - 25.000 Ac Acres x Base x 100% + [(25 x Base x_ 100 %) + (75 x Base x 75 %) + (150 x Base x 60 %)