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HomeMy WebLinkAboutH-2 - Letter From George Hamilton Jones Regarding Beacon Bay AppraisalOFFICE TELEPHONE (7141 673-6733 GEORGE HAMILTON JONES, M.A.I.. APPRAISAL CONSULTANT 717 LIDO PARK DRIVE NEWPORT BEACH. CALIFORNIA 92663 December 6, 1979 Mr. Robert L. Wynn City Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92663 Dear Mr. Wynn: MEMBER AMERICAN REAL �:J City TE OF : DEC 1 01979 �► City Manager ct ;lnr•.mt Beach ry Re: Estimated Appraisal Fee - '{ Beacon Bay In accordance with your recent request, I have reviewed the physical characteristics of the subject property, various documents including the ex- isting and proposed Beacon Bay lease, C. C. and R.'s, "Instruction to Ap- praisers" (dated October 25, 1979), and have studied the scope of work and fee required in order to form a supportable opinion of the fair market rental value of the 73 individual lots within Beacon Bay. The date of value will be January 1, 1980. The study shall also include analysis of factors pertinent to the render- ing of an opinion of the rental advantage which the present lessees have un- der the existing lease. Due to the complex nature of the problem, and the uncertainty of time re- quired for certain elements of the appraisement, it would be my recommenda- tion that this fee be set on the basis of a per diem arrangement with a "not to exceed upper limit". As a result of my investigation, it is my opinion that said fee shall not exceed $22 , 500. The basis of fee payment would be in accordance with our established per diem rate. Said rate is on the basis of the following: George H. Jones, M. A. I.: Gary L. Vogt, M. A. I . : William R. Hansen: A detailed report of hours spent by each individual would be $ 7 5/hour $50/hour $ 4 5/hour submitted to you with the billing on a monthly basis, if this is acceptable to you. Mr. Robert L. Wynn December 6, 1979 Page 2 I have further estimated that the assignment should require from three to four months to complete. If authorization to do this work was received by January 1, 1980, the re- port could be submitted to you on or before May 1, 1980. The appraisal would be prepared in accordance with the Standards of Prac- tice of the American Institute of Real Estate Appraisers, of which Mr. Vogt and I are members. Ten copies of the report shall be submitted. If this office is retained to do such work, I respectfully request that ar- rangements be made with the appropriate members of the Beacon Bay Associa- tion so that full access to all properties can be obtained, and we may be able to consider any factors they feel are pertinent to the valuation. We appreciate your considering our office for this challenging assignment. If there are any questions relating to this matter, please let me know. Respectfully submitted, H.milton Jones, M. A. I. GHJ/jjr