Appraisal Report for ALP 46.27 acres Retro. Value 10/10/02

LOVE APPRAISALS, INC.
SUMMARY OF THE APPRAISAL PROBLEMS
The Uniform Appraisal Standards for Federal Land Acquisition first requires
a determination of the larger parcel. The tests to establish the larger parcel are
unity of ownership and highest and best use. The larger parcel is the only easy
determination in this appraisal. It is the land previously owned by the CWCB
transferred by Quit Claim Deed to the Animas-La Plata Water Conservancy District
on August 21, 1998 subject to "a perpetual easement over that portion of the
property reasonably necessary for the construction, operation, maintenance and
replacement of the Durango Pumping Plant of the Animas-La Plata Project". This
perpetual easement was then assigned to the Unites States Bureau of Reclamation
on October 10, 2002, the effective date of the appraisal. The valuation of
Reclamation's perpetual easement is the purpose of this appraisal.
Because there are no sales of land with similar perpetual easements or
restrictions, the appraisal process first involves finding comparable sales similar to
the fee simple estate. The larger parcel is unique in physical characteristics and
location. It has an excellent location, just south of the Animas River, across from
Santa Rita Park and within walking distance of the historic portion of Durango. The
Animas River forms the north boundary providing the amenity of river frontage and
unrestricted views to the north. U.S. Highway 160/550, Camino del Rio, follows the
east boundary and County Road 210 forms the north boundary. The intersection of
Camino del Rio and County Road 210 is signalized which eliminates a large
potential development cost. The site had sloping, easily developable topography
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