As part of the transaction of turning over the Chicago Avenue Armory, the Illinois Senate requested a report on the buiding's appraised value. The report contains some essential history of the land transactions:
"The parcel was conveyed to the State of Illinois to be used as an armory in two separate conveyances. The first conveyance, the eastern parcel, approximately 218 feet by 297 feet, was conveyed in 1915 by the Commissioners of Lincoln Park to the State of Illinois in exchange for another piece of property. The second parcel, 119 feet by 218 feet, was conveyed to the State of Illinois by the City of Chicago in 1937."
The document mentions the November 26, 1985 re-zoning of the property to a lower standard height than the surrounding blocks.
In determining the highest and best use of the parcel of land, the appraisers defined those terms as: "1 - the reasonable and probably use that will support the highest present value as of the effective date of the appraisal; and 2 - that use, which among the legal uses, is physically possible and financially feasible, resulting in the highest land value." Accordingly, the appraisers concluded that the highest and best use for the appraisal would a multi-family housing.
Under the heading, Effective Age, Economic Life & Remaining Economic Life, the appraiser cites the building's deficiencies, which include the lack of central air-conditioning, lack of adequate elevator coverage, and outdated mechanical equipment, concluding that the building was nearing the end of its economic viability.
After supplying cost data and analysis, the appraiser indicates that the value of the building improvements is far less than the value of the vacant land. The appraisal concludes under the heading, Final Correlation:
"The appraiser's opinion is that the building is of no value and the subject site is appraised for land value only minus demolition costs."
"The appraiser's final opinion of value, basedon comparable land sales and development of the land residual valuation technique, is $38,400,000.00"