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Independent appraisal puts as‑proposed development at about $114M; city appraisers say they were retained only by the city
Summary
An independent appraisal presented at the workshop valued the proposed 7.7-acre development components at about $113.9 million and estimated a market-oriented ground rent just under $5.7 million; the appraiser said the firm’s sole client on this assignment is the city and the current scope did not include percentage-rent scenarios.
An appraisal team retained by the City of Boca Raton presented valuation work at the Dec. 15 workshop and offered several figures the council said it would use in negotiations and financial analysis.
Walter Duke of Walter Duke & Partners told the council the firm’s sole client for this assignment is the city and that the firm had not been retained by the developer or related entities for this assignment. Project lead Andrew Rolfe summarized the deliverables and numbers: a component value of approximately $113,900,000 for the 7.7‑acre Terra proposal (office, retail, hotel, residential); a market-oriented ground rent estimate derived by applying a 5% multiplier to that value (just under $5,700,000); and a market ‘‘as‑is’’ value for the larger 30.86‑acre site (including city hall, the library and existing improvements) of about $136,500,000 (Walter Duke; Andrew Rolfe).
Council members questioned whether a percentage-rent formula should be reflected in an appraisal or included as a supplemental analysis. Rolfe said percentage rent was not part of the current scope but the firm could provide that analysis if the council requested it. One council member asked staff to seek an amendment to the scope to include percentage-rent options and alternative valuation scenarios; staff and Duke agreed they could add that work (Council discussion).
Public commenters raised fiscal and process concerns tied to long lease terms. Pam Paschke asked how a 99‑year lease would be assessed given limited comparable examples and questioned why condominium tax assumptions were included in a PFM evaluation; Mike Liebelson (a mayoral candidate) urged the council to reconsider appraisal methodology and suggested a discounted-cash-flow analysis might produce different valuations.
Next steps: Council members asked staff to request additional appraisal options — including percentage‑rent scenarios and alternate valuation approaches — and to circulate the appraiser’s letter clarifying the firm’s city-only engagement. No final fiscal decisions or contractual approvals were made at the workshop.
