PURPOSE OF THE APPRAISAL
The purpose of the appraisal is to estimate the fair market value of:
Building l: Six bedroom residence homeMarket va1ue is defined as "the highest price estimated in terms of money, which a property could be expected to bring if exposed for sale on the open market, al1owing a reasonable time to find a purchaser who buys with knowledge of all of the uses to which it is adapted, and for which it is capable of being used.""Frequently it is referred to as "the price at which a willing seller would sell, and a willing buyer would buy, neither being under abnormal pressure."
Building 2: Gymnasium with classrooms, dressing rooms, full b1eachers, and a full stage.
Building 3: Former dining hall and food service area.
Building 4: Former library.
Building 5: Former dormitory.
Building 6: Chapel.
Building 7: Rehabi1itated dormitory.
Buildings #2, 3, 5 and 7 are current1y vacant and have been for five or more years.
Buildings #l, 4, and 6 are current1y being utilized.
According to the records located in the registery of Deed's Office, Sarpy County, Nebraska, ownership of the subject property rests with a deed filed December 16, 1982 shows transfer to Jesse Lewis Craig and Bobbie Evelyn Craig, husband and wife, and David Bratcher and Nadine C. Bratcher, husband and wife.
This deed appears to be the payoff of a contract to purchase the campus from Central Contracting Crporation. A memorandum of the contract was filed on November 30, 1977.
A subsequent contract for deed filed in the State of Nebraska and entered on August 26, 1986 at 8:00 a.m and recorded in book 20 of Miscellaneous on page 622 in Saunders County by Don Clark, Register of deeds shows Jesse L. and Bobbie T. Craig as the current sole owners of said property.
LEGAL DESCRIPTION OF TOTAL AREA
The part of North Half of the Northeast Quarter of Section 4, Township l4, Range 7, Saunders County, Nebraska, described as commencing at a point 40 rods West of the Northeast corner of said Section, extending thence WeEast 55 rods1 thence South 30 rods , thence East 55 rods, thence North 30 rods to the place of bcginning: all of Block 2 in Dickinson's Addition to Wahoo; the North 1/2 of Block.l, Dickenson's Second addition to Wahoo, described as commencing at the Northwest corner of said Lot 1, thence South along the West boundary line of said Lot 1, a distance of 125 feet, thence East parallel with the North line of said Lot 1 to the East boundary line of said Lot I to the Northeast corner of said lot 1, thence west along the Worth boundary line of said Lot 1 to the place of beginning, all of said real estate being in Saunders County, Nebraska.
Property appears to be above any flood plain.
The subject property is zoned school in Wahoo's zoning code. however, the City of Wahoo has granted a special permit to the owner to operate a care center-chemical dependency unit in the property being appraised.
GENERAL STATEMENT OF THE SUBJECT PROPERTY
AND ITS PROPOSED CHANGE IN USE:
Tbe buildings were utilised as a college campus until it closed in 1975. Since the college remained closed up to September of 1992, the buildings, with the ezception of the "residence", were rarely in use, and therefore some of the buildings have deteriorated and suffered some vandalism.
The campus has been sold out of bankruptcy since 1977. The buildings are all still very structurally sound, and therefore have always been physically capable of a converted use.
At this time, the owner has remodeled the one dormitory (building 7), for use as a rehabilitation center for chemical dependency. The residence home is is excellent condition and being lived in. The church and libray are being utilized by a church congregation.
This appraisal includes specific data relevant to the new venture.
In the appraiser's opinion, the current change to a chemical dependency treatment center is a business venture with the typical risks associated with any venture. Appraisers will therefore value the buildings bascd on the proposed change in use and will also consider other alternative uses if this venture is not feasible.
HIGHEST AND BEST USE
Site is always valued in terms of its Highest and Best use. The Highest and Best Use of a site is "that reasonable and probable use that will support the highest present value as defined, as of the effective date of the appraisal."  [Real Estate Appraisasal Terminology, edited by Bryl N. Boyce, 1975, pg.107]
The Rational of Highest and Best Use is that a property must have utility reflected through market demand to have a Market function. In turn, function determines use, and Use is a major determinant of value, in the context of existing current market forces. Since Market Value in particular is always the highest Price that an informed and prudent Purchaser would pay, the use in terms of which Market Value is estimated is Highest and Best Use.
In estimating Highest and Best Use, following Site analysis and Improvements analysis, as applicable, the appraiser goes through essentially four stages of analysis:
1. Possible Uses (Physical) What uses are physically possible on the subject site or in the subject improvements1 given the physical characteristics revealed by property analysis?
2. Permissible Uses (Lega1} What uses are permitted under existing zoning and other land use regulations and controls and under existing deed restrictions, for the subject property?
3. Feasible Uses (Appropriate Use) Among legally permitted and Physically possible uses for the subject property, which are appropriate given the characteristics revealed by market, neighborhood and property analysis? Which uses produce any net return to the owner or a positive net present value?
4. Highest and Best Use. Among appropriate
or feasible uses for the subject property, which use will produce the highest