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<br /> <br /> <br />PROPOSAL TO CONSULT <br />August 2, 2019 <br /> <br />Gary Donaldson <br />Interim Tax Director <br />Orange County Office of Tax Administration <br />228 S. Churton Street, Suite 200 <br />Hillsborough, NC 27278 <br /> <br />Re: Providing Commercial Property Income Information for Populating Income Modules. <br /> <br />Purpose: To provide information that will support the upcoming Orange County Tax Reassessment. <br /> <br />Type of project/Scope of work: Our work product will comprise the following: <br /> <br />x Investigation of commercial property rental rates, occupancy rates, expenses (on a per unit, per square foot <br />or expense ratio basis as appropriate) and capitalization rates in Orange County, the surrounding areas, a <br />regional basis or a national basis as applicable. Income information will come from national surveys, local <br />surveys, survey’s made by Analytical for this assignment, Analytical’s in-house files, CoStar and other <br />sources. It is worth noting that Analytical Consultants has performed over 1,700 commercial appraisals in <br />Orange, Durham and Wake County since January 2008 and our files are a very good source of verified <br />local, relevant income and expense data for this assignment. Some property specific income and expense <br />data from our files will need to remain confidential in regards as to the exact property providing the <br />information. <br />x There may be specific property types such as hotels and convenience stores where we will purchase <br />proprietary information / expertise from other vendors to populate the income modules. Although some <br />relatively inexpensive survey information is available, pointed actual information on expenses of hotel and <br />convenience stores in the local market is not widely available. Our fee is inclusive of the cost of resources <br />(surveys, data purchasing, outside consulting, etc.) needed to complete the assignment, which in some <br />cases will include payments to experts in the valuation of certain properties. <br />x Income information will be sorted by property type with each property type being assigned a low, medium <br />and high range (ie Class A, B and C). Some property types will include limited information on <br />subcategories such as medical office as a subcategory of general office space. Retail will include limited <br />data on restaurants, drug stores and convenience stores. <br />x It is important to us that Orange County has all of the assistance needed to ensure that there is adequate <br />data to support the reassessment. We anticipate that it will take us six months to gather and prepare the <br />data needed. In 2020 we propose updating the information with current sales and capitalization rate data. <br />Following delivery of the update, our fee includes a one month period during which a qualified employee of <br />Analytical consultants will be available via phone or onsite at the Orange County offices between the hours <br />of 9am to 5pm (up to 10 hours per week) to answer questions or provide assistance with the general use <br />125 Kingston Drive <br />Suite 206 <br />Chapel Hill, NC 27514 <br />Tel: 919-929-9539 <br />Fax: 919-929-9543 <br />DocuSign Envelope ID: 48D95A50-1183-4EB9-9997-46BD3A0D7724