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$800,000 under both the "sales comparison" and "income
capitalization" approaches.
Strachota estimated the value of the Property under the cost
approach by ascertaining the "current cost to reproduce or
replace the existing structure, deducting for all accrued
depreciation in the property, and adding the estimated land
value." Strachota computed his $600,000 value under this
approach without taking into account any premium on account of
the zoning advantage enjoyed by the Property.
Strachota estimated the value of the Property under the
sales comparison approach by "comparing the * * * [Property] to
similar properties that may have been sold recently, applying
appropriate units of comparison, and making adjustments, based on
the elements of comparison, to the sale prices of the
comparables." Strachota computed his $800,000 value under this
approach by relying primarily on a February 1993 sale of a 13,964
square foot adult entertainment establishment in Minneapolis,
Minnesota. Apart from this sale, Strachota concluded, no other
sales were comparable to the Property.
Strachota estimated the value of the Property under the
income-capitalization approach by "converting anticipated
benefits into property value"; i.e., capitalizing the Property's
income expectancy to arrive at its value. In applying the income
approach, Strachota considered commercial rents ranging from
$1.50 to $18 per square foot, and selected a $5 figure as the
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