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October 17, 2011 (Regular Meeting) Page 697 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 Acreage Range Size Factor Calculation Acreage Range .001 - .250 Ac Acres x Base x 300% 25.001 - 100.000 Ac Formula - 259 - .999 Ac Acres - .250 x Base x 270% + (.250 x. Base x 300 %) 100.001 - 250.000 Ac Formula - (( Acres - .250) x 270 %) + .750 Acres Formula - 1.000 Ac Acres x Base x 275% 1.001 - 5.000 Ac Acres - 1.000 x Base x 105% + (1.000 x base x 275 %) 250.001 - 500.000 Ac Formula - Formula - (( Acres - 1.000) x 105 %) + 2.750 Acres 500.001 - 750.000 Ac 5.001 - 24.000 Ac Formula - Acres - 5 x Base x 90% + [(1.00 x Base x 275 %) + (4.00 x Base X 105 %)] ((Acres - 5) x 90 %) + 6.950 Acres 24.001 - 25.000 Ac Acres x Base x 100% Examples of the Application: Formula - Land Model 07 Size Factor Calculation Acres - 25 x Base x 70% +[(25 x Base x 100 %) ((Acres - 25) x 70 %) +25.00 Acres Acres - 100 x Base x 55% + (25 x_ base x 100 %) + (75 x Base x 70 %)] ((Acres - 100) x 55 %) + 77.500 Acres Acres - 250 x Base x 35% + [(25 x Base x 100 %) + (75 x Base x 70 %) + (150 x Base x 55 %)] (( Acres - 250) x 35 %) + 160.000 Acres Acres - 500 x Base x 20% + [(25 x Base x 100 %) + (75 x Base x 70 %) + (150 x Base x 55 %) + (250 x Base x 35 %)] (( Acres - 500) x 20 %) + 247.500 Acres 750.001 - UP Acres - 750 x Base x 10% + [(25 x Base x 100 %) + (75 x Base x 70 %) + (150 x Base x 55 %) + (250 x Base x 35 %) + (250 x Base x 20 %)] Formula - (( Acres - 750) x 10 %) + 297.500 Acres Acers Percent Acers Percent Acers Percent 0.001 300.0° 4.000 147.50 75.000 80.0% 0.100 300.0° 5.000 139.0% 100.000 77.50 0.200 300.0% 6.000 130.8% 150.000 70.0% 0.250 300.0% 7.000 125.0% 200.000 66.3% 0.300 295.0% 8.000 120.6% 250.000 64.0% 0.400 288.8% 9.000 117.2% 300.000 59.2% 0.500 285.0% 10.000 114.5% 350.000 55.7% 0.600 282.5% 12.000 110.4% 400.000 53.1% 0.700 280.7% 15.000 106.3% 450.000 51.1% 0.800 279.4% 20.000 102.3% 500.000 49.5% 0.900 278.3% 25.000 100.0% 600.000 44.6% 1.000 275.0% 30.000 95.0% 750.000 39.7% 2.000 190.0% 40.000 88.8% 800.000 37.8% 3.000 161.7% 50.000 85.0% 1000.000 32.3% C. Road Frontage COMMERCIAL ACREAGE Land Model 07 The market tends to recognize parcels containing 10 acres or less as single sites. Tracts of this size do not to tend to vary in price unless they have inadequate road frontage. Parcels containing ten acres or less are considered to have adequate frontage if 30% of the total acreage is in road frontage. Sales of large tracts, which have potential for development, tend to reflect the amount of road frontage in relation to total parcel size. Parcels containing more than ten acres are considered to have adequate frontage if 10% of the total acreage is in road frontage. Dividing the number of acres of road frontage (1 Acre = 208' X 208') by the total acreage, yields the percent of frontage to total acreage. This percent when applied to the following chart produces a plus or minus factor to be applied to each parcel.