Pope & Talbot, Inc., & Subsidiaries - Page 30

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               Messrs. Monger and Griffin estimated the value of the                  
          improved portions of Port Ludlow using a cost approach.  An                 
          income approach was also used for those properties for which                
          there was sufficient revenue and expense data (i.e., the                    
          restaurant, marina, and golf course).  The sales comparison                 
          approach was not considered a reliable value indicator, since               
          individual resort components sell infrequently, and they derive             
          their value mostly in connection with the larger resort property.           
          Messrs. Monger and Griffin utilized the sales comparison                    
          approach, however, to estimate the value of the land underlying             
          the improvements.  That method is discussed below.  Messrs.                 
          Monger and Griffin determined the following fair market values              
          for the land and improvements at Port Ludlow:                               

                    Land and Improvement                 Value                        
                    Golf course                        $2,350,000                     
                    Convention center and sales                                       
                    office                             270,000                        
                    Restaurant                         500,000                        
                    Marina                             1,080,000                      
                    Total                            $4,200,000                       

          In addition, Messrs. Monger and Griffin utilized the cost                   
          approach to estimate the value of certain retail and commercial             
          facilities that were under construction in 1985 at $130,000.                
               Finally, in estimating the value of the vacant, undeveloped            
          land, Messrs. Monger and Griffin divided the parcels into                   
          functional units, or a smaller number of property groups with               




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