Proposals are due by 4:00 p.m. CST on 07/24/2024.
Please send all questions in writing to the Contract Specialist, Stephanie Ellington, stephanie.ellington@usda.gov.
Please submit all proposal documents to the Contract Specialist, Stephanie Ellington, stephanie.ellington@usda.gov.
The United States Department of Agriculutre (USDA) Forest Service has a need for two (2) real estate appraisals that includes one non-Federal exchange parcel and one Federal exchange parcel. The two proposed exchange parcels are near one another in Lemhi County Idaho and located on the north side of Salmon River Road. Both parcels are also located within the Salmon Wild and Scenic River Corridor (WSR) recreation section, corridor (1/4 mile on either side of the river). Protection of WSR outstanding and remarkable values (ORVs) are proposed to be protected through deed restrictions.
Non-Federal Parcel
The 10.85-acres of non-Federal land is made up of Brittanica Lode Mining Claim Survey No. 3353 and a portion of the Ohio Lode Mining Claim Survey No. 3351. The proponent has also offered as part of the exchange granting the Forest Service multiple easements. The proposed easements include segments of the Sheepeater Trail, Boulder Basin Trail, and Boulder Creek Road that cross sections of the proponent’s non-Federal private land (Boulder Basin Trail, and Boulder Creek Road have largely overlapping footprints in the area where the easements would be granted). Should the exchange come to fruition, the Forest Service would also retain an easement across the Federal parcel for Boulder Creek Road, and Boulder Basin Trail.
The Non-Federal parcel that the proponent is proposing to exchange with the Forest Service is mostly steep, consists of sagebrush and grasses, and does not contain any live water. The parcel is adjacent to the Salmon River and accessed by the Salmon River Road. Boulder Creek Road, and Boulder Basin Trail cross the parcel (although both the road and trail occupy the same footprint on this parcel) Vegetation consists of both native and fruit bearing tree species as well as native brush and grasses. The topography is mostly flat or gently sloped. Boulder Creek flows through the parcel.
Federal Parcel
The Federal Parcel consists of one 4.61-acre parcel identified as Tract 37 in BLM Special Instructions. The Federal parcel has several privately owned improvements that were previously authorized via a Special Use Authorization. These buildings and improvements are privately owned by the land exchange proponent and will not be considered in the appraisal. Some of the improvements are eligible for listing on the National Registry of Historic Places.
As part of the exchange, the proponent has also agreed to grant the Unites States a road and trail easement for Boulder Basin Road and Boulder Basin trail, and an easement for the Sheepeater Trail across his private lands in the area. See maps attached for information about the approximate footprint of these trails. The land the proponent is proposing to acquire from the Forest Service is mostly flat with good river access and contains part of Boulder Creek running through it.
The Federal Parcel contains multiple cultural resources that are proposed to be protected via deed restrictions, and cultural resource mitigation measures which will be developed in consultation with the Idaho State Historic Preservation Office. A draft document showing the proposed reservations and covenants to run with the Federal parcel is contained in Exhibit B of the Agreement to Initiate dated January 4, 2024, and will be revised prior to completion of the appraisal process.
The Federal Parcel also contains critical habitat for Endangered Species Act listed fish species. To preserve and protect this habitat, several restrictions on future use and development within the Riparian Habitat Conservation Area surrounding Boulder Creek will be developed in the course of the NEPA analysis. A draft document showing the proposed reservations and covenants to run with the Federal parcel is contained in Exhibit B of the Agreement to Initiate dated January 4, 2024, and will be revised prior to completion of the appraisal process.
The Federal Parcel also contains 1.38 acres of wetlands and 1.34 acres of floodplains, while the Non-Federal Parcel contains no wetlands, and only .51 acres of floodplains. To ensure compliance with Executive Orders 11990 and 11988 deed restrictions to protect wetlands and floodplains will be required on the Federal Parcel. A draft document showing the proposed reservations and covenants to run with the Federal parcel is contained in Exhibit B of the Agreement to Initiate dated January 4, 2024, and will be revised prior to completion of the appraisal process.
The appraisals must comply with the General Exchange Act of March 20, 1922, the Federal Land Policy and Management Act of October 21, 1976 as amended by the Federal Land Exchange Facilitation Act of August 20, 1988, 36 CFR 254 (Subpart A), the Uniform Appraisal Standards for Federal Land Acquisitions (sixth edition), and the Uniform Standards of Professional Appraisal Practice (edition current as of date of report). The sole determination of whether or not the report complies with these regulations will be made by the review appraiser. The purpose of the appraisal will be to derive a market value conclusion for each of the parcels as of the effective date of the appraisal.
The contract appraiser may provide information about the assignment, appraisal results, or portions thereof only to the Senior Review Appraiser. Appraisals may only be distributed to the intended users after the technical review is completed and any dissemination will be by the Forest Service only.
This appraisal statement of work has been prepared based upon the best information available at the time. If additional information becomes available during the development of the appraisal which is not consistent with the information included in this appraisal statement of work, the assignment may have to be revised. The appraiser shall immediately contact the Review Appraiser should such information be discovered and prior to completing the appraisal assignment.
Details of the non-federal property are contained in the ALTA Commitment for Title Insurance File No. 658688 by Old Republic National Title Insurance Company dated April 3, 2024, and other documents attached to this appraisal statement of work.
Legal descriptions and the estates to appraise are contained in the Agreement to Initiate executed May 27, 2020, which will be provided – together with other pertinent information – in electronic format.
GENERAL SPECIFICATIONS
Performance – Unless otherwise stated, the contract appraiser (appraiser) shall furnish all materials, supplies, tools, equipment, personnel, travel, and shall complete all requirements including performance of the professional services listed herein. The appraiser shall assume responsibility for all work, including the selection of subcontractors and their work products. The appraiser must notify the Forest Service review appraiser of the selection of all subcontract appraisers or specialists before they start work. The appraiser shall present specialist and consulting reports in the addenda to the appraisal report or make them available for inspection by the Forest Service review Appraiser.
Property Inspection and Contacting Landowners – The appraiser signing the report will attend a pre-work conference with the Forest Service Review Appraiser for discussion and understanding of this Statement of Work. The pre-work conference may be held as a teleconference or in conjunction with the property site inspection. Invited attendees shall include at least one representative of the landowner and at least one representative of the ID/WY Landownership Adjustment Zone.
Communication Protocol – During the development of the appraisal, the appraiser and intended users shall copy all other intended users on written communications (i.e., e-mail, and all other forms of written, electronic, or reproduced communications) and make reasonable efforts to include all other intended users on verbal communications. Representatives of the U.S. Forest Service and the property owners (parties) shall be encouraged (and permitted) to attend an appraisal pre-work conference. The pre-work conference may be held via telephone, video conference, or in person. Any party can choose not to participate in the pre-work conference; however, the appraiser and the Forest Service Review Appraiser must attend. The purpose of the pre-work conference is to review this appraisal Statement of Work. All parties are encouraged to provide market data information for consideration by the appraiser. Communications between the parties and the appraiser outside the pre-work conference and site inspection are encouraged to be in writing and routed to all other intended users. Subject to the foregoing, the appraiser is free to contact any person in any manner he/she deems appropriate in completing due diligence for appraisal development.
The appraiser should not discuss with the owner, or anyone except the Forest Service Review Appraiser and/or the Regional Appraiser, any appraisal analyses, theories, methodology to be used, conclusions, opinions of the appraisal report related to the value of the subject property or any value related topic during the appraisal process. The appraiser may only discuss value related topics with the Forest Service Review Appraiser for the project and/or the Regional Appraiser.
It is appropriate for the landowner, or anyone else, to talk with the appraiser during the appraisal process when needed about factual matters about the property, the ownership, maps, surveys, timber, any rights reserved, known sales of similar property, other factual data, etc.
Comprehensive Review – A value opinion is acceptable for agency use only after a Forest Service review appraiser has found the appraisals to be compliant with the UASFLA, the USPAP, and the written instructions (a.k.a. Statement of Work) developed for the specific case. As an alternative to disapproval, the staff review appraiser may discuss findings of deficiency and request corrections. In response to the request for corrections, the appraiser may submit an amended appraisal report. Therefore, the assignment is not complete until the contract appraiser is notified by the staff review appraiser that the Agency’s technical review process has been completed.
Confidentiality – The contract appraiser may provide information about the assignment, appraisal results, or portions thereof only to the Senior Review Appraiser noted herein. Appraisals may only be distributed to the intended users after the technical review is complete. If distributed, that release will be made by the Director of Lands and Minerals for the Intermountain Region (i.e., the client).
Federal Law Controls – Federal law may differ from the law of some states and supersedes State law when they conflict. Accordingly, the appraiser must understand Federal law as it affects the appraisal process in the opining of market value.
UASFLA and USPAP Conflicts – In those uncommon instances where the UASFLA and the USPAP conflict, the UASFLA takes precedence. If it is necessary to invoke the Jurisdictional Exception Rule to the USPAP to meet certain provisions of the UASFLA, such action must include a citation of the over-riding federal policy, rule, or regulation that requires it. Any jurisdictional exceptions not specifically cited in the UASFLA must be discussed with the Forest Service review appraiser.
Definition of Terms – Unless specifically defined herein or in current editions of either the USPAP or the UASFLA, definitions of all terms are the same as those found in the current edition of The Dictionary of Real Estate Appraisal published by the Appraisal Institute. The UASFLA takes precedence in any differences among definitions.
Freedom of Information Act – Freedom of Information Act (FOIA) provisions may result in the release of all or part of the appraisal report. If providers of information gathered by the contract appraiser request it be kept confidential, that information is not to be included in the report. The contract appraiser must make confidential information available to the Senior Review Appraiser upon request, but such information will not be incorporated into a Forest Service system of records. A statement signed by the contract appraiser requesting confidentiality and citing reasons for seeking confidentiality must accompany any confidential information. If such information is incorporated into a Forest Service system of records, it will be kept separate from the appraisal report and clearly marked as CUI – Controlled Unclassified Information – that is subject to the Privacy Act.
Updating of Report – At the Government’s request (and within two years of the date of report), the appraiser shall update the value opinion as of a specified date. A supplemental contract will be negotiated as necessary.
Testimony – Upon the request of the United States Attorney or the Department of Justice, the contract appraiser shall testify regarding the appraisal. A supplemental contract will be negotiated as necessary.
GENERAL APPRAISAL REPORT SPECIFICATIONS
The following specifications required by the Forest Service are in addition to those set forth in Uniform Standards of Professional Appraisal Practice (USPAP 2024 edition) and the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA-6th edition).
Appraisal Report Format – – The assignment requires preparation of two appraisal reports. Although USPAP includes two options for appraisal reports, the restricted appraisal report option is not permitted for this assignment since a restricted appraisal report cannot be reviewed to the level of detail required for Federal appraisals. Unless otherwise specified in the following Assignment Instructions, the appraisal reports should contain all applicable components listed in UASFLA Appendix C. Any question as to their applicability shall be determined by the Senior Review Appraiser. The face of the reports shall be labeled to identify the appraised property and to show the appraiser's name and address and the date of the appraisal. All pages of the reports, including the exhibits, shall be numbered.
The guidelines in Section 2.5 of the Uniform Appraisal Standards for Federal Land Acquisitions for completing “project appraisal reports” can be followed if appropriate – 1) all of the parcels appraised [in the report] are total acquisitions, or partial acquisitions of a nominal and/or consistent nature; 2) all parcels [in the report] are vacant or have similar improvements; 3) all parcels [in the report] are located within a geographic area with a relatively similar land use pattern; 4) all parcels [in the report] have the same or similar highest and best use; 5) the most relevant approach to value is the same for all parcels [in the report], and; 6) the same array of market data can be relied on in the valuation of each parcel [in the report]. However, the project report(s) should be prepared in such a manner so that the parts relevant to a specific parcel are readily identifiable. Project reports are not meant to be appraisal shortcuts, merely clerical shortcuts.
Appraisal Report Delivery – The appraiser shall submit to the assigned Forest Service Review Appraiser only final reports. “Draft” copies will not be accepted. The Forest Service Review Appraiser will then review the final appraisal reports for acceptance or recommended revisions. One electronic copy (e.g., PDF) of each report shall be submitted.
The appraiser shall provide information about the assignment, appraisal results, or portions thereof only to the Forest Service Review Appraiser. The intended users shall not participate in the technical review process. Dissemination of appraisal results to representatives of the ID/WY Land Adjustment Zone, Salmon-Challis National Forest, and Charles Mualem, will be after technical review and approval by the Forest Service Review Appraiser and then only under the discrete instruction of the Client, the Intermountain Region’s Director of Lands and Minerals. Violation of these procedures jeopardizes the appraisals and review process.
Examination Notice – The appraiser shall provide Charles Mualem and Forest personnel advance notice of the examination date and shall give them, or their designated representative(s), an opportunity to accompany the appraiser during the inspection of the property. These notices shall be documented in the transmittal letter accompanying the appraisal report.
Statement of Assumptions and Limiting Conditions – Since all Agency appraisal reports are the property of the United States and may be used for any legal and proper purpose, do not include any conditions that limit distribution of the report. Uses of uninstructed extraordinary assumptions or hypothetical conditions invalidate the appraisal.
Maps – Include detailed topographic and aerial imagery of the appraised property with the property boundaries and dimensions delineated. Significant encumbrances and both legal and physical access routes must be shown.
Scope of Work – UASFLA requires the appraiser to make a larger parcel determination in all appraisals. The appraiser shall not consider land outside the property described in the Agreement to Initiate executed January 4, 2024, for either larger parcel determination or in reaching a conclusion of the highest and best use (UASFLA, Section 1.12); however, it must be shown if the appraised tracts each consist of one or more larger parcels.
The appraiser shall conduct all investigations necessary to provide credible results including market/marketability analyses using inferred demand studies. The three approaches to value shall be considered and presented, if deemed reliable, regardless of the appraiser’s opinion of added strength to the overall value conclusion. A detailed field inspection of the subject property shall be made by the appraiser signing the report.
Zoning – Determine “consistent” zoning (and other land use restrictions) of Federal land by research and analysis, not by assumption.
Highest and Best Use – Conduct sufficient depth of market analysis to provide a credible opinion of value, considering the complexity of the assignment and the volatility of the market. The definition of highest and best use as defined at 36 CFR 254, Subpart A, 254.2 must be used:
An appraiser’s supported opinion of the most probable and legal use of a property, based on market evidence, as of the date of valuation.
The highest and best use conclusions must be clearly supported by market evidence. Sale to a public entity is not an acceptable highest and best use. A non-economic highest and best use such as “conservation,” “natural lands,” “preservation,” or any use that requires the property to be withheld from economic production in perpetuity, is not a valid use upon which to base an opinion of market value.
Market value cannot be predicated upon potential uses that are speculative and conjectural.
The appraiser's opinion of a reasonable probability of a zoning change must have a factual foundation. The appraisal report shall include a description of the investigation undertaken to determine the probability of rezoning. The investigation shall include thorough research of the use(s) and zoning of properties situated similarly to the subject property within the area covered by the zoning authority. The stated rezoning conclusion shall be supported by facts surfaced in the research. A property cannot be valued as if it were already rezoned for a different use. The property must be valued only in light of the probability of obtaining a zone change.
Essential to the appraiser’s conclusion of highest and best use is the determination of the Larger Parcel. The appraiser must make a Larger Parcel determination in every appraisal conducted under the UASFLA. The Larger Parcel, for purposes of these standards, is defined as “that tract or those tracts of land that possess a unity of ownership and have the same, or an integrated, highest and best use.” Elements of consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use. Under the rules for Larger Parcel determination, as described in Section 4.3.4 of UASFLA, two physically separate tracts may constitute a single Larger Parcel, or a single contiguous tract may constitute multiple Larger Parcels. The appraiser’s analysis that led to the Larger Parcel(s) determination and the determination(s) itself must both be reported. If the appraiser concludes there are multiple Larger Parcels, then the value analyses for each larger parcel can be presented in a single appraisal report. If the appraiser determines the property to be acquired includes multiple Larger Parcels, then the appraiser must further analyze whether the multiple Larger Parcels would reflect a discount or enhancement to the portfolio if offered on the market at the same time.
If highest and best use is for assemblage, describe and explain the relationship of the appraised property to the property to which it would be joined. If speculation or investment is the highest and best use of the property, describe and explain both the interim and the most probable ultimate use.
When there is a claim that the highest and best use of a property is something other than the property’s existing use, the burden of proof is on the appraiser to provide sufficient rationale to support the conclusion.
Sales Comparison Approach – Nearby arm’s length transactions, comparable to the land under appraisement, reasonably current, are the best evidence of market value. The Federal courts recognize the Sales Comparison Approach as being normally the best evidence of market value.
Analyze the last sale of the subject property if relevant. If not used, explain why. An unsupported claim that a sale of the subject property was a forced sale, or is not indicative of its current value, is unacceptable.
When supportable by market evidence, the use of quantified adjustments is preferred. Percentage and dollar adjustments may, and often should, be combined. Resort to qualitative adjustments only when there is inadequate market data to support quantitative adjustments. Factors that cannot be quantified are dealt with in qualitative analysis. When quantitative and qualitative adjustments are both used in the adjustment process, all quantitative adjustments should be made first.
Within the Sales Comparison Approaches to value, include sales adjustment charts that summarize the adjustments and show the final adjusted sale prices and how the sales compare with the subject property.
Comparable Sales – Inspect all sales directly compared with appraised property sufficiently for credible analysis and comparison. Discuss unusual circumstances that precluded on-the-ground inspection with Forest Service appraisal personnel prior to completion of the appraisal report. Comparable sale inspection cannot be waived unless Forest Service appraisal personnel provides such a waiver in writing.
At a minimum, document all direct comparable sales with:
- Parties to the transaction
- Date of transaction
- Recordation data
- Verification of the price, terms, and conditions of sale with buyer, seller, broker, or other knowledgeable person. Include the verifying party’s telephone number.
- Person who verified the transaction and verification date
- Buyer motivation
- Location
- Legal and physical access
- Size
- Legal description
- Property rights conveyed
- Consideration
- Financing terms
- Sale conditions, such as arm’s length or distressed
- Improvements
- Physical description (topography, vegetative cover, water influence, and other characteristics.)
- Non-realty items
- Economic characteristics
- Zoning
- Current use
- Topographic map
- Photographs
Include a list of the sales considered, but not actually used, in the addenda. Cite pertinent facts such as date, size, buyer and seller, price, terms, location, and explain why each sale was not used. Alternatively, this information could be presented in the market analysis section of the report.
Income Approach – The development approach (a.k.a. the subdivision approach and discounted cash flow analysis) should not be relied upon as the primary indicator of value when comparable sales are available with which to accurately conclude the property’s market value. The appraiser shall adhere to UASFLA direction pertaining to this highly sensitive and complex method of valuation.
If the Development Approach is employed, it may be necessary for the appraiser to obtain the services of an independent engineering firm with regard to infrastructure costs as part of the assignment (please refer to UASFLA 4.12, Appraiser’s Use of Supporting Experts’ Opinions). The USDA Forest Service will not be responsible for the cost of any independent engineering firm studies.
Addenda/Other Pertinent Exhibits – Present in the addenda additional data such as documents and charts pertinent to the valuation and referred to in the body of the report. Include a copy of this document (statement of work prepared specifically for the assignment), specialist reports, and supporting documents that describe the property rights appraised in the addendum of the appraisal report.
Qualifications – Include the qualifications of all appraisers or technicians who made significant professional contributions and include a copy of the current Certified General Appraiser license issued by the State of Idaho within the Addenda to the appraisal report.
ASSIGNMENT ELEMENTS
The case name associated with this assignment is the Proposed Shoup Land Exchange. The current owner of the Non-Federal exchange parcel is Charles Mualem. The current owner of the Federal exchange parcel is the United States of America.
Both the USPAP and the UASFLA identify seven critical assignment elements necessary to ensure appraisals are credible, reliable, and accurate. The purpose of these assignment instructions is to convey these elements; however, the appraiser shall conduct the due diligence they deem necessary to fully understand the following:
- client
- intended users
- intended use
- type and definition of value
- effective date
- relevant characteristics about the subject property
- assignment conditions
Client – The appraiser shall recognize the Director of Lands and Minerals for the Intermountain Region, 324 25th Street, Ogden UT 84401 as the client.
Intended Users – The intended users shall, in addition to the client, include Senior Review Appraiser Chris Lauger, Lands/Realty personnel attached to the Salmon-Challis National Forest, Lands/Realty personnel attached to the Idaho/Wyoming Landownership Adjustment Zone, Lands/Realty personnel attached to the Intermountain Regional Office, Office of General Counsel personnel, and duly designated representatives of Charles Mualem.
Intended Use – The intended use of the appraisals is to provide a value basis for the potential, voluntary land exchange between Charles Mualem and the U.S.A., as represented by the USDA Forest Service, of the property identified in Exhibits A and B of the Agreement to Initiate executed January 4, 2024, “as if” the Federal lands were in private ownership, zoned consistent with other non-Federal properties in the area, and available for sale in the open market.
Type and Definition of Value – The type of opinion of value to be developed is market value. The definition of market value as defined at 36 CFR 254, Subpart A, 254.2 must be used:
Market Value means the most probable price in cash, or terms equivalent to cash, which lands or interests in lands should bring in a competitive and open market under all conditions requisite to a fair sale, where buyer and seller each acts prudently and knowledgeably, and the price is not affected by undue influence.
This definition makes no linkage between the estimated market value and a specified exposure time. Rather, the federal definition of market value already presumes that the property was exposed on the open market for a reasonable length of time, given the character of the property and its market. Therefore, a specific exposure time shall not be cited in an appraisal report prepared under the UASFLA. Invoke the Jurisdictional Exception Rule to avoid a violation of the USPAP standards, which require the development of a specific exposure time.
Suggested language for the Jurisdictional Exception follows:
The Uniform Appraisal Standards for Federal Land Acquisitions provide that the appraiser shall not link an opinion of market value to a specific exposure time. This is contrary to Standards Rule 1-2(c) of the 2024 edition of the Uniform Standards of Professional Appraisal Practice and is considered a Jurisdictional Exception.
Effective Date – All appraisals must be made as of the same date of value. Because Agency decision making regarding the proposed land exchange must be based upon current opinions of value, delivery of appraisal reports to a Forest Service review appraiser shall be within 30 days of the date of the value opinion. If the date of value is later than the last date of inspection, report the steps taken to verify the physical features of the parcels as of the date of value (e.g. no significant wildfires, beetle infestations, landslides, etc.).
Relevant Characteristics about the Subject Property:
Property Interest(s) to be Appraised – For all of the appraisals associated with this assignment, the estate to be appraised consists of “all rights, title, and interests subject to any outstanding rights and reservations.” Outstanding rights, and proposed reservations are identified in Exhibits A and B of the Agreement to Initiate executed January 4, 2024.
Legal Description – Legal descriptions are identified in Exhibits A and B of the Agreement to Initiate executed January 4, 2024.
Additional Information – Information, including the following, will be provided.
- Request for Appraisal Services dated May 7, 2024
- Agreement to Initiate executed January 4, 2024, (including Exhibits A through D include Land Descriptions and Project Map)
- Commitment for Title Insurance, together with recorded deeds listed as exceptions, covering the non-Federal property (various dates)
- Federal Land Status Report
- Various maps
- Mineral, Cultural Resource, Biological Assessments, Phase I Hazardous Materials, and Wetlands/Floodplains reports as available with some currently being developed. As they are completed, they will be forwarded.
Assignment Conditions – The appraisal must comply with 36 CFR 254 (Subpart A), the Uniform
Appraisal Standards for Federal Land Acquisitions (sixth edition), the Uniform Standards of Professional Appraisal Practice (2024 edition), and the Appraisal Instructions contained herein.
The use of an uninstructed assumption or hypothetical condition that results in other than “as is” market value will invalidate the appraisal. Include only factors relating to the appraisal problem. Assumptions and limiting conditions that are speculative in nature are inappropriate. Do not include limiting conditions that significantly restrict the application of the appraisal.
One hypothetical condition is identified in this statement of work:
- In analyzing the value of the Federal property, the appraiser has assumed that the lands and interests are in private ownership, zoned consistent with similar non-Federal properties in the area, and are available for sale on the open market in accordance with 36 CFR 354, Subpart A, 254.9(b)(1)(ii). As this is contrary to what existed as of the effective date of appraisal, it is noted as a hypothetical condition.
It is not anticipated that any other extraordinary assumptions or hypothetical conditions will be necessary to achieve credible results. If an issue arises during the development of the appraisal that would necessitate their use, the Forest Service review appraiser must be consulted and supplemental instructions issued prior to completion of the assignment.
