1st Reading - Jersey City

Port~on of PJP Landfill Site, Jersey City New Jersey'\Highest an~ Best "Usej ," j ,Highest and best use is defined as the reasonably probable and legal use of vacantland or an improved property, which is physically possible, appropriately' 'supported, financially feasible, and results in the highest value. 'Highest and best use of land or a site as though vacant assumes that a parcd of 'land is vacant or can be made Vac~nt by demOlishing any improvements. With this.assumption, uses that create value in the marketplace can be identified, and theappraiser can begin to select comparable properties and estimate land value. Landas thoughCost Approach, , ,vacant is a fundamental concept of valuation theory and the basis for theThere are four basic criteria that are considered and analyzed in determining thehighest and best use .öf a property:1. ' Physîcallypossîblè. What uses are physically possible given the constraints;of the size and physical characteristics of the site?2, Legally permîssîble, What uses are permitted by zoning' or other restrictions(i.e. deed restrictions) ,on the property?3. Fînancîally feasîbk Of the physically possible and legally permitted uses;which ar~ financially feasible in that they wil produce a net return to theproperty owner?''4. Maxîmally'productîve. Of the financially feasible uses, which use wilproduce the highest net return, orresult in tIie highest present value of the'property?Based on the four criteria listed above, it is our opinion that the highest and best ·, ,use ofthe subject property is for warehouse development consistent with the 'requirements of the I-Industrial District. As previously reported,the subject site's'existing soils and subsurface conditions require special engineering and sitepreparation work. The precise costoE thiswork is currently unknown. However,given the demand for industrial space in the local market and the preliminary cost 'est,imateprovided by Malcolm Pirnie, warehoùse development is consideredfinancially feasibly. Furthermore, warehouse development represents the mostprofitable use of the subject property;VALUE REEARCH GROUI', LLC 19