DOCKET NO.: 05-00346.001-C-3
2 of 21
(CIAO) designation from the Illinois Property Assessment
Institute and the Certified Assessment Evaluator (CAE)
designation awarded by the International Association of Assessing
Officers (IAA0). Salisbury has previously appraised 10 to 15
anchor stores associated with regional malls.
Salisbury identified Taxpayer's Exhibit No. 1 as the appraisal of
the subject property he had prepared. The appraisal was
described as a summary report of a limited appraisal. The
witness explained that a limited appraisal means that he made a
departure from the Uniform Standards of Professional Appraisal
Practice (USPAP) by electing not to use the cost approach, one of
the three approaches to value. Salisbury testified he did not
use the cost approach because anchor stores are unique and in
malls create their own market. He explained that anchor stores
tend to sell for about the same price regardless of age. The
witness testified that sales of new anchor stores would be less
representative because of the significant amount of depreciation
associated with a sale.
The appellant's appraiser testified the preferred method of
valuation of anchor stores is the sales comparison approach. He
testified there is a symbiotic relationship with anchor stores
and the malls they are associated with. According to Salisbury
malls rely on anchor stores to bring in people which in turn make
the inline stores successful. The witness explained that mall
developers first try to line up anchor stores willing to locate
in the mall to surround the inline stores. Salisbury testified
that as a result, anchor stores tend to sell in a very tight
range and rents are very consistent in a very short range.
Salisbury testified the subject property is attached to the
Eastland Mall, a very strong commercial area and the strongest
commercial area in Bloomington-Normal. Salisbury testified he
has been in the subject property a number of times but the
official inspection date was May 23, 2006, where he conducted a
full physical interior and exterior inspection. The purpose of
his appraisal was to estimate market value as of January 1, 2005.
He appraised the unencumbered fee simple interest and categorized
the subject property as an anchor store for a regional mall.
Salisbury testified the improvements were constructed in 1999 and
were approximately six years old as of January 1, 2005. He was
of the opinion the improvements were in good condition. The
witness was of the opinion the highest and best use of the
subject as improved was its continued commercial use as
developed. In estimating the market value of the subject
property Salisbury developed the income and sales comparison
approaches.
The first approach to value developed by Salisbury was the income
approach. The initial step under the income approach was to
