INCLINE VILLAGE, Nev. - A new property appraisal of the old Incline K-2 elementary school site on Southwood Boulevard was recently completed in response to renewed interest from two potential buyers.The appraisal, conducted by Johnson-Perkins & Associates, Inc., the largest real estate appraisal firm in Northern Nevada, values the property as of Nov. 16 at $2.75 million - between $950,000 and $1.85 million less than its appraised value from three years ago."The market has declined precipitously since the first appraisal, and a decline in value was to be expected," said Mike Boster, the district's capital projects planner. "We are encouraged by the latest real estate trends showing values gradually beginning to come back."For now, the "highest and best use" of the property in today's market, according to the appraisal, is to "hold until market conditions warrant development of commercial uses."It's the school district's and school board's intention to follow that recommendation, Boster said.There are a variety of land uses allowed for the property, according to the appraisal, including: "employee housing, bed and breakfast facilities, hotels and motels and a wide variety of commercial, public service, recreation and resource management uses."Recently, two potential buyers have expressed interest, Boster said: the Tahoe Transportation District and an unknown second party, inquiring through a commercial representative. When asked this week if the name of unknown company had been learned, he said no."Everything right now is still preliminary," said Curtis Garner, transit manager for TTD, adding that several locations are being looked at for a possible long-term station for the East Shore Express.The East Shore Express, a pilot program this past summer that made daily runs to and from Sand Harbor every 20 minutes from 9 a.m. to 6 p.m. from mid-June to early-September, used the old Incline K-2 site as its main pick-up location.Since the shuttle is a two-year pilot project, Garner said it's TTD's "hope" to continue to use the site this summer for the service. Derek Kirkland, capital program specialist for TTD, said the site could potentially be used as a transportation hub serving multiple modes of transit. According to the appraisal, the old K-2 site's total land area is approximately 6.41 acres, with its two closed school buildings equaling about 49,459 square feet.An appraisal done in November 2009 determined the value of the site at $3.7 million to $4.6 million if the buildings remained standing, according to previous reports. A second appraisal done at that time also valued the property at $4.6 million to $5.5 million if the buildings were demolished."The 2009 appraisal was done when we were working with the community to determine the most beneficial community use for the site, one of which included clearing the site for some kind of new development," Boster said. "We needed to know that cost at the time."The November 2012 appraisal only determined the value of the property with the school buildings still standing. "... If a potential buyer does come along and is interested in having the buildings demolished as part of any deal, we can do an in-house assessment of what it would cost to demo the buildings," Boster said.If the existing school buildings were to remain, the buyer would need to do "extensive" seismic retrofits to bring them up to code, Boster said, since a fault line extends under the site."I do not have the figure (of much that would cost), but our engineers estimate that it could be more than the cost to demo and build something new," he said. "Further, the building is purpose-built as a school with a floor plan that would only appeal to a limited number of potential users."Ultimately, the school board intends to select a buyer whose use of the property will benefit the community, Boster said, while also following Nevada law governing the sale or transfer of publicly owned property.As for now, the district is allowing Burdick Construction to store materials at the site - mostly dirt and rocks - from the Rosewood Creek Restoration project for a fee, Boster said. The construction company started using the property in August and will be likely be out by next fall, he said.