AGENDA #5d

Memorandum

TO:                  W. Calvin Horton, Town Manager

FROM:            Bill Letteri, Public Works Director

SUBJECT:       Estimated Building Values

DATE:             February 16, 2005

This memorandum responds to your request for information on estimated value of the Old Post Office, the Old Library (Chapel Hill Museum) and the Old Town Hall (IFC Shelter).

In the absence of a professional appraisal, it is difficult to accurately estimate the value of these buildings.  The information below provides a range of values including the insurance value, the estimated replacement value and the estimated market value.  The insurance value is taken from our insurance records in the Finance Department.  The estimated replacement value assumes a replacement cost of $160 per square foot.  The estimated market value is probably the most difficult to predict.  For the purposes of this report, we have assumed the market value is about 20% above the replacement value.  This assumption is based on the fact that each of these structures is located on very desirable downtown lots.

Building	Square Footage	Insurance Value	Estimated Replacement Value	Estimated Market Value
Old Post Office	15,985	$2,673,764	$2,797,375	$3,356,850
Old Library (Museum)	12,800	$2,048,000	$2,240,000	$2,688,000
Old Town Hall (IFC Shelter)	10,368	$1,658,880	$1,814,400	$2,177,280