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attached rectangular building and heights ranging from 22 to 70 <br /> feet with an average of about 55 feet which develops an <br /> enclosure of about 97 ,000 cubic feet . <br /> Other facilities include a 10 X 70 concrete platform scale with <br /> a 60 , 000 ton capacity , paved parking and roadways and an area <br /> cleared and used for the storage of about 75 , 000 tons of raw <br /> limestone . <br /> METHODS OF VALUATION <br /> In the valuation of real estate , there are three commonly <br /> accepted approaches to value. These are described as the Cost <br /> Approach , the Income Approach and the Market Data Approach. <br /> The Cost Approach to value establishes the current fair market <br /> value of the land , as if unimproved , plus current reproduction <br /> cost new of all improvements, less accrued depreciation . For <br /> appraisal purposes , accrued depreciation is defined as the <br /> difference between current cost and present value. <br /> The Income Approach to value converts net income attributable <br /> to the real estate into an indication of property value by the <br /> use of a capitalization rate . After developing the gross <br /> economic income potential , deductions are made for vacancy and <br /> all operating expenses . The remaining net income is then <br /> capitalized with a rate or factor which represents the <br /> relationship between net income and property value. <br /> The Market Data Approach compares and relates the property <br /> under study to other similar properties which have sold in the <br /> general area in recent years . Units of comparison are <br /> developed from the comparable sale properties and applied to <br /> the the property under appraisement to indicate the market <br /> value . This approach has the greatest application and <br /> reliability when sufficient market data is available. <br /> In this appraisal , the Cost Approach has been the primary basis <br /> for valuation. This is because there is a sufficient number of <br /> land sales and listings in the area on which to base a <br /> conclusion of land value . The Market Approach has no <br /> application because of the lack of sales data on similar <br /> properties. The Income Approach cannot be applied for several <br /> reasons . Properties with a high degree on specialized use are <br /> normally owner operated . Therefore , there are no comparable <br /> rents upon which to base commensurate rental income. <br /> COST APPROACH <br /> The Cost Approach to value establishes the present fair market <br /> value of the site, as if unimproved , plus current reproduction <br /> cost new of all improvements less accrued depreciation . <br /> -9- <br />