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HEARING Conservation Futures - revised
��. 615 Sheridan Street (Meson Port Townsend, WA 98368 (arntrt www.JeffersonCountyPublicHealth.org Public Health JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS REGULAR AGENDA REQUEST TO: Board of County Commissioners FROM: Michael Dawson,Water Quality Manager,Environmental Public Health and Water Quality Tami Pokorny,Natural Resources Program Coordinator DATE: July 21,2025 SUBJECT: Public Hearing and Possible Decision Regarding Applications for Conservation Futures Funding in 2025 STATEMENT OF ISSUE: The Conservation Futures Fund program(chapter 3.08 JCC)requires a duly noticed public hearing to be held as part of the process for allocating funds to projects that protect public open spaces. On July 7, 2025, BoCC approved a Public Hearing Notice to hold a public hearing July 21, 2025 at 2:30 p.m. on the 2025 Conservation Futures Program project applications. The Notice was published in The Port Townsend and Jefferson County Leader on July 9 and July 16, 2025. BoCC may decide which project(s)to fund and pass resolution(s)for funding, after hearing public comment and considering an analysis by the Department of Community Development on impacts to growth. ANALYSIS S 1'RATEGIC GOALS: The three (3)applications to the Conservation Futures Fund in 2025 are: 1. Deerfoot Forest: Applicant requests $98,000 towards the acquisition of a conservation easement on two parcels totaling 36.9 acres, located within the Donovan and Tarboo Creek watersheds along Center Road in Quilcene. The conservation easement would create protected open space for a second growth forest and wetlands. The applicant also requests $12,000 towards reimbursement of operations and maintenance costs. The proposed match is $114,000 in funds from the Navy's Readiness and Environmental Protection Integration (REPO program. The project applicant and sponsor is Jefferson Land Trust. Project location: S5 T27N R1 W. 2. Upper Yarr Creek Protection: Applicant requests $26,000 towards fee simple acquisition of a 1.03-acre parcel located in the Tarboo Creek watershed in Quilcene. The acquisition would create protected open space to conserve riparian slope and stream habitat. The proposed match is $20,000 in a donation of land value and $6,000 in crew time from Northwest Watershed Institute. The project applicant and sponsor is Northwest Watershed Institute. Project location: S29 T28N R1W. Community Health Environmental Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-940' (f) Always working for a safer and healthier community 01 360-379-4487 3. Toandos Forest Acquisition and Restoration: Applicant requests $76,000 towards the fee simple acquisition of a 6.38-acre parcel on the Toandos peninsula within the Dabob Bay Natural Area. The acquisition would create protected open space to conserve water quality and habitat connectivity in the Dabob Bay ecosystem. The applicant also requests$18,500 towards reimbursement of operations and maintenance costs. The proposed match is $65,000 in funds from the Navy's Readiness and Environmental Protection Integration (REPI)program and $29,500 in private donations to Northwest Watershed Institute. The project applicant and sponsor is Northwest Watershed Institute. Project location: S15 T27N R1 W. At its April 22, 2025 meeting, the Conservation Futures Fund Citizen Oversight Committee (CFF Committee)voted unanimously to declare all three projects worthy of funding. As a second motion,the CFF Committee voted unanimously to fully fund Toandos Forest Acquisition and Restoration and Deerfoot Forest. The Committee also voted eleven (11) for and one(1)against to fully fund Upper Yarr Creek Protection. This briefing packet contains: • Draft resolutions consistent with the recommendations of the CFF Committee • Three(3)Conservation Futures Fund project applications • Draft summary of the April 22, 2025 CFF Committee meeting • Analysis from Joel Peterson, Jefferson County Department of Community Development • Map of conservation futures projects 2003-2024 • Conservation Futures Fund Citizen Oversight Committee recommendations memo, presented to BoCC on May 19, 2025 by Committee Vice Chair Ron Rempel The purpose of the CFF Program is to address the "general and increasing need to provide a system of public open spaces...for the health, welfare,benefit and safety of the residents of Jefferson County,"and to maintain "Jefferson County as a desirable place to live, visit and locate businesses."Conservation Futures Fund tax levy collections,authorized under RCW 84.34.230 are an important means of retaining community character and accomplishing open space policies and objectives of the Jefferson County Comprehensive Plan. The goal of the program is to preserve and protect the county's open space resources from development, and from being "negatively and permanently affected." JCC 3.08.030 allows up to 15%of the Conservation Futures Fund levy monies raised in the preceding year to be used for operations and maintenance needs. Fifteen percent of the revenue collected in 2024($323,200) is$48,480. The total request for operations and maintenance funding in 2025 is $30,500. RCW 84.34.230 and 84.34.240(3)require that rights or interests in real property acquired with CFF funds shall not"reduce the capacity of land suitable for development necessary to accommodate the allocated housing and employment growth plans"of the County. An analysis on the impact to growth from the Jefferson County Department of Community Development is provided here,which concludes that"the proposals,totaling ca.44 acres,do not negatively impact housing supply or employment growth." Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-940' (f) Always working for a safer and healthier community (f) 360-379-4487 Grant agreements for approved projects between project sponsors and the County will be developed by Environmental Public Health and submitted to BoCC for approval. FISCAL IMPACT: The explicit purpose of the Conservation Futures Fund Program is to fund acquisition projects to support a system of public open spaces. There is no impact to the General Fund for this effort. The following previously approved CFF projects are anticipated to close during the remainder of 2025: • Tarboo Wildlife Preserve—West Slope Forest Addition: $150,000 • Lower Chimacum Creek Mainstem Acquisitions(portion of): $52,000 • Humbleberry Farm: $130,000 The following previously approved CFF projects were cancelled: • North Barry Snow Creek: $74,000 • Dosewallips River Lazy C: $7,649 RECOMMENDATION: Review the three(3)CFF project proposals and supporting documentation. Hold a public hearing on July 21, 2025 at 2:30 p.m. Consider written and oral testimony at the public hearing and adopt any of the enclosed funding resolutions, with or without revisions. REVIEWED BY: 44. r0"-Z&I:7617") -77(S/94— J rg'Peters, County Administrator Date Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f)360-379-4487 STATE OF WASHINGTON County of Jefferson In the Matter of Dedicating Conservation Futures Funds to the Deerfoot Forest Project as RESOLUTION NO. Authorized by an in Accordance with Jefferson County Code (JCC) Chapter 3.08 to Provide a System of Open Spaces WHEREAS, Conservation Futures Fund tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection;and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and RCW 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Fund Citizen Oversight Committee has reviewed project applications for 2025 and made its funding recommendations to the Board of County Commissioners in accordance chapter 3.08 JCC; and WHEREAS,under the provisions of the Jefferson County Conservation Futures Fund Program,Jefferson Land Trust, as project sponsor, requests funding towards the acquisition of conservation easements on two (2) parcels of land in S5 T27N R1W with Assessor's Parcel Numbers 701052002 and 701052011 and to reimburse operations and maintenance costs; and WHEREAS, the County retains enough developable land to accommodate the Deerfoot Forest project as well as the housing and employment growth that it is expected to receive,thus satisfying the requirement of RCW 84.34.240(3);and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project; NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY,STATE OF WASHINGTON: Section 1.Whereas Clauses Adopted as Findings of Fact. The Jefferson County Board of Commissioners hereby adopts the above"Whereas"clauses as Findings of Fact. Section 2. Dedication of Acquisition Funds Approved. Jefferson County hereby dedicates up to $98,000 in Conservation Futures funds towards reimbursement of eligible acquisition expenses for the Deerfoot Forest project. Funding is contingent upon presentation of a matching contribution of at least fifty percent(50%). The sponsor anticipates that the matching contribution will be fifty-one percent (51%) at the time of project completion. Section 3. Dedication of Operations and Maintenance Funds Approved. Jefferson County hereby dedicates up to $12,000 in Conservation Futures funds towards reimbursement for eligible operations and maintenance expenses incurred within ten years of the signing of this resolution,contingent on a matching contribution of no less than the amount of Conservation Futures Funds requested for operations and maintenance. Section 4. Nullification. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition,is not received from the sponsor within three years of the signing of this resolution. PT Leader: Please publish two times (July 9 and July 16, 2025) Contact Person: Tami Pokorny Bill to:Jefferson County Public Health, Water Quality 615 Sheridan St. Port Townsend, WA 98368 NOTICE OF PUBLIC HEARING Conservation Futures Fund Program Project Applications in 2025 NOTICE IS HEREBY GIVEN that a public hearing is scheduled by the Jefferson County Board of Commissioners for MONDAY,July 21, 2025 at 2:30 p.m. in the Commissioners' Chambers, County Courthouse, 1820 Jefferson Street, Port Townsend, WA 98368 (HYBRID). Notice of said hearing is to be published in the official newspaper of Jefferson County. Conservation Futures funds available to projects in 2025 total $323,200. The total amount requested for projects recommended in 2025 (Deerfoot Forest, Toandos Forest Acquisition and Restoration, Upper Yarr Creek Protection) is $230,500. Per JCC 3.08.030(4), the BOCC must hold a public hearing to take comments on the projects submitted for consideration during the Conservation Futures funding cycle. This agenda item is to approve the public notice only; individual funding awards will be reviewed at the public hearing. The information is available for viewing on the County website by visiting: www.co.jefferson.wa.us and follow this pathway—Services—Laserfiche Web Portal (username and password is: public) - Board of Commissioners— BOCC Agenda Packets —2025 Weekly Agenda Items—21 July 2025— 072125 —HEARING re Conservation Futures You are welcome to participate in this hearing. You will need to join the meeting by 2:30 p.m. using the following methods: VIRTUALLY: Via the following Zoom link: https://zoom.us/j/93777841705, PHONE: Dial 1-253-215-8782 and enter access code: 937-7784-1705# and press *9 to "raise your hand" to be called upon. Access for the hearing impaired can be accommodated using Washington Relay Service at 1-800-833-6384, or IN-PERSON at the address listed above. In addition, written testimony is also invited beginning on July 9, 2025 and ending on July 21, 2025 at the end of the Public Hearing, unless extended by the Board of County Commissioners. Written public testimony may be submitted by Email to:jeffbocc@co.jefferson.wa.us You may view documents and testimony received by visiting: www.co.jefferson.wa.us and following this pathway —Services—Laserfiche Web Portal (username and password is: public)—Board of Commissioners— BOCC Agenda Packets—2025 Weekly Agenda Items— 21 July 2025—072125 — HEARING re Conservation Futures You can also Mail your testimony to:Jefferson County Commissioners' Office; P.O. Box 1220, Port Townsend, WA 98368. Written testimony must be received by the Board of County Commissioners by the end of the hearing testimony period. Signed this 7th day of July, 2025. JEFFERSON COUNTY BOARD OF COMMISSIONERS /S/Heidi Eisenhour, Chair Section 5. Severability. If any section,subsection,sentence,clause,or phrase of this resolution or its application to any person or circumstance is held invalid, the remainder of this resolution or its application to other persons or circumstances shall be fully valid and shall not be affected. Section 6. Effective Date. This resolution is effective upon adoption. Section 7. SEPA Categorical Exemption. This resolution is categorically exempt from the State Environmental Policy Act under WAC 197-11-800(19). (SIGNATURES FOLLOW ON THE NEXT PAGE) Page 2 of 3 APPROVED AND ADOPTED this day of 2025. JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS SEAL: Heidi Eisenhour,Chair Greg Brotherton,Member Heather Dudley-Nollette,Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway, Date Philip C.Hunsucker, Date Deputy Clerk of the Board Chief Civil Deputy Prosecuting Attorney Page 3 of 3 STATE OF WASHINGTON County of Jefferson In the Matter of Dedicating Conservation Futures Funds to the Toandos Forest Acquisition and RESOLUTION NO. Restoration Project as Authorized by an in Accordance with Jefferson County Code (JCC) Chapter 3.08 to Provide a System of Open Spaces WHEREAS, Conservation Futures Fund tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection;and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and RCW 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Fund Citizen Oversight Committee has reviewed project applications for 2025 and made its funding recommendations to the Board of County Commissioners in accordance with chapter 3.08 JCC; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Fund Program, Northwest Watershed Institute,as project sponsor,requests funding towards reimbursement for acquisition of one (1)parcel of land in S15 T27N R1W with Assessor's Parcel Number 701153003; and WHEREAS, the County retains enough developable land to accommodate the Toandos Forest Acquisition and Restoration project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirement of RCW 84.34.240(3); and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project; and NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY,STATE OF WASHINGTON: Section 1.Whereas Clauses Adopted as Findings of Fact. The Jefferson County Board of Commissioners hereby adopts the above "Whereas"clauses as Findings of Fact. Section 2. Dedication of Acquisition Funds Approved. Jefferson County hereby dedicates up to $76,000 in Conservation Futures funds towards reimbursement of eligible acquisition expenses for the Toandos Forest Acquisition and Restoration project. Funding is contingent upon presentation of a matching contribution of at least fifty percent(50%).The sponsor anticipates that the matching contribution will be fifty percent(50%)at the time of project completion. Section 3. Dedication of Operations and Maintenance Funds Approved. Jefferson County hereby dedicates up to $18,500 in Conservation Futures funds towards reimbursement for eligible operations and maintenance expenses incurred within ten years of the signing of this resolution, contingent on a matching contribution of no less than the amount of Conservation Futures Funds requested for operations and maintenance. Section 4. Nullification. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition,is not received from the sponsor within three years of the signing of this resolution. Section 5. Severability. If any section,subsection,sentence,clause,or phrase of this resolution or its application to any person or circumstance is held invalid,the remainder of this resolution or its application to other persons or circumstances shall be fully valid and shall not be affected. Section 6. Effective Date. This resolution is effective upon adoption. Section 7. SEPA Categorical Exemption. This resolution is categorically exempt from the State Environmental Policy Act under WAC 197-11-800(19). (SIGNATURES FOLLOW ON THE NEXT PAGE) Page 2 of 3 APPROVED AND ADOPTED this day of 2025. JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS SEAL: Heidi Eisenhour,Chair Greg Brotherton, Member Heather Dudley-Nollette,Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway, Date Philip C.Hunsucker, Date Deputy Clerk of the Board Chief Civil Deputy Prosecuting Attorney Page 3 of 3 STATE OF WASHINGTON County of Jefferson In the Matter of Dedicating Conservation Futures Funds to the Upper Yarr Creek Protection RESOLUTION NO. Project as Authorized by an in Accordance with Jefferson County Code (JCC) Chapter 3.08 to Provide a System of Open Spaces WHEREAS, Conservation Futures Fund tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and RCW 84.34.220 to acquire open space land,agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Fund Citizen Oversight Committee has reviewed project applications for 2025 and made its funding recommendations to the Board of County Commissioners in accordance with chapter 3.08 JCC; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Fund Program, Northwest Watershed Institute,as project sponsor,requests funding towards reimbursement for acquisition of one (1)parcel of land in S29 T28N R1W with Assessor's Parcel Number 801293003; and WHEREAS, the County retains enough developable land to accommodate the Upper Yarr Creek Protection project as well as the housing and employment growth that it is expected to receive,thus satisfying the requirement of RCW 84.34.240(3); and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project; NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY,STATE OF WASHINGTON: Section 1.Whereas Clauses Adopted as Findings of Fact. The Jefferson County Board of Commissioners hereby adopts the above"Whereas"clauses as Findings of Fact. Section 2. Dedication of Acquisition Funds Approved. Jefferson County hereby dedicates up to $26,000 in Conservation Futures funds towards reimbursement of eligible acquisition expenses for the Upper Yarr Creek Protection project. Funding is contingent upon presentation of a matching contribution of at least fifty percent (50%). The sponsor anticipates that the matching contribution will be fifty percent (50%) at the time of project completion. Section 3. Nullification. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition,is not received from the sponsor within three years of the signing of this resolution. Section 4. Severability. If any section,subsection,sentence,clause,or phrase of this resolution or its application to any person or circumstance is held invalid, the remainder of this resolution or its application to other persons or circumstances shall be fully valid and shall not be affected. Section 5. Effective Date. This resolution is effective upon adoption. Section 6. SEPA Categorical Exemption. This resolution is categorically exempt from the State Environmental Policy Act under WAC 197-11-800(19). (SIGNATURES FOLLOW ON THE NEXT PAGE) Page 2 of 3 APPROVED AND ADOPTED this day of 2025. JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS SEAL: Heidi Eisenhour,Chair Greg Brotherton, Member Heather Dudley-Nollette,Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway, Date Philip C.Hunsucker, Date Deputy Clerk of the Board Chief Civil Deputy Prosecuting Attorney Page 3 of 3 SON Cr 24 2025 Jefferson County Conservation Futures Fund Program �-sit] C,�°� Property Acquisition Project and/or Operations and Maintenance Project Application Please complete the following application in its entirety. Be sure to answer"N/A"for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at(360)379-4498 or tpokornv@Jco.lefferson.wa.us with questions. Background and Eligibility Information 1. Project Title Deerfoot Forest 2. Conservation Futures Fund Acquisition Request Amount: $98,000 Conservation Futures O&M Request Amount: $12,000 3. Total Conservation Futures Request Amount: $110,000 4. Please indicate the type of interest contemplated in the acquisition process. Warranty Deed X Easement Other(Please describe below.) In whose name will the property title be held after acquisition? Penney Jo Ewing Hubbard will continue to hold title,with a conservation easement held by Jefferson Land Trust and potentially a REPI easement held by the US Department of Defense. 5. Applicant Information Name of Applicant or Organization: Jefferson Land Trust Contact: Sarah Spaeth Title: Director of Conservation&Strategic Partnerships Address: 1033 Lawrence St. Port Townsend,WA 98368 Phone: (360)379-9501, ext. 101 Fax: ( ) - , ext. Email: sspaethPsaveland.org 6. Sponsor Information: (if different than applicant) Organization Name: Contact: Title: Address: Phone: ( ) - , ext. Fax: ( ) - , ext. Email: 1 2025 CFF Program Application This application was approved by the sponsor's legally responsible body(e.g., board, council, etc.) on February 20,2024 7. Project Location Street Address or Description of Location: 11500 Center Rd.Quilcene,WA 98376 Driving Directions from Port Townsend: From Chimacum,take Center Road south for 11.5 miles and turn right into the private driveway. Section: 5 Township: 27 N Range: 1W Assessor's Parcel Number(s): 701052002 and 701052011 Please differentiate current and proposed ownership of each APN and indicate if the parcel is to be acquired with CFF funds or used as match. All parcels listed above will remain in Penney Hubbard's ownership and will be preserved with a conservation easement held by Jefferson Land Trust,likely along with a Navy Readiness and Environmental Protection Integration (REPI) restrictive easement. Please list the assessed values for each property or APN, as applicable. 701052002 -$469,479 current market value assessed&taxable value 701052011-$82,905 current market value assessed&taxable value 8. Existing Conditions New Site: Yes X No Number of Parcels:2 Addition to Existing Site: Yes No X Acres to Be Acquired: 36.9 Total Project Acreage(if different): Current Zoning: RR:20 and RR:5 Existing Structures/Facilities: Two residences,two wells,a pump house,a small barn,woodshed,and a few additional outbuildings. Any current covenants,easements or restrictions on land use: None Current Use: Residential Waterfront(name of body of water): None Shoreline(linear feet): N/A Owner Tidelands/Shorelands: N/A 9. Current Property Owner X is _is not a willing seller. Project Description 2 2025 CFF Program Application 10. In 1,000 words or less,provide a summary description of the project,the match, and why you think preserving this property is important. Name three top objectives for the property(other than those related to funding). Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Fund Program funds including: vegetation,topography, surrounding land use, and relationship to parks, trails, and open space. Describe the use planned for the site, any development plans after acquisition(including passive development), characteristics of the site which demonstrate that it is well-suited to the proposed use, and plans for any structures currently on the site. If applicable, describe how the site project relates to a larger conservation program(please identify), and whether the project has a plan, schedule and funding dedicated to its completion. Please also list any important milestones for the project or critical dates, e.g. grant deadlines. List the dates and explain their importance. Please attach a spreadsheet of the budget. Jefferson Land Trust is seeking Conservation Futures funding for the permanent protection of Deerfoot Forest with a conservation easement.This property is in Quilcene along Center Road and contains two parcels that total 36.9 acres. Jefferson Land Trust seeks to protect this property with a conservation easement to protect the important ecological features of upland forest,forested wetlands, and headwaters of two important creek systems.The easement will prohibit fragmentation of the two parcels,further development,and conventional/clear-cut forest management practices. The Hubbard Forest property appears to be a section of the headwaters of both Donovan Creek and Tarboo Creek.This is inferred from onsite characteristics, knowledge of the water drainage,property location,and elevation hillshade imagery.Jefferson Land Trust and other partners such as the Northwest Watershed Institute,WA Department of Natural Resources,and Jefferson County have been working for over two decades on the protection efforts of both watersheds of Donovan and Tarboo Creeks.This offers an important opportunity for Jefferson Land Trust to continue with land protection efforts in these priority areas. The Deerfoot Forest conservation easement will limit future development, require single ownership of the two parcels, restrict forest management that only permits ecological enhancement activities,all with the goal of protecting the wildlife corridor that this diverse second growth forest contributes to(described further in#7). As large rotating clearcuts have occurred on adjacent neighboring parcels, Penney Hubbard and her husband have ensured that the management of the Deerfoot Forest has allowed natural regeneration of the forest ecosystem to occur.Their management vision includes the maintenance,preservation,and enhancement of the diverse second growth forest as a"forest garden"for native plant species,wildlife,and human recreation and enjoyment. Deerfoot Forest has been naturally regenerating since its last logging operation around 1920.There are various forest zones including mature Douglas fir mixed with cedar,western hemlock,Sitka spruce,alder and maple patches,and forested wetlands.While some areas of the forest could benefit from more conifer tree presence,there is a substantial amount of downed wood and standing snags throughout the property which provide important habitat for various wildlife and sequester water and carbon on site.The property has varied topography ranging from mostly flat forestland on the south side of Center Road to south-facing sloped forestland on the parcel north of Center Road.The topography and soils of Deerfoot Forest hosts seasonal and perennial forested wetlands and while there is no apparent surface water flow,the property appears to have hydrological connections as a section of the headwaters of both Donovan Creek and Tarboo Creek.These characteristics are well-suited to the proposed ecological protection. On the property,in addition to the two 3 2025 CFF Program Application residences located in the larger northern parcel, infrastructure includes two wells,a pump house,a small barn, and other small outbuildings.Current zoning of the parcels appears to allow for one additional development right on the southern parcel that would be extinguished with the conservation easement.The existing infrastructure on site would remain in use by private landowners after protection with the conservation easement,and the infrastructure would be limited to within one"building envelope"in the easement. Deerfoot Forest's surrounding neighbor landowners include private timber companies, residential development,and Department of Natural Resources Forest Board.These surrounding land uses have resulted in the Deerfoot Forest serving as an intact wildlife corridor across the busy Center Road from the DNR Dabob Bay Natural Area,only.25 miles away across Dabob Rd to the south.The landowners and other community members have regularly sited black bears and cougars crossing Center Road between the two Hubbard parcels, presumably because of the habitat interruption and fragmentation occurring on the surrounding properties.The Deerfoot Forest has remained a wildlife and native plant refuge over the years as nearby disturbances have continued to occur. Jefferson Land Trust intends to protect this forested property with a conservation easement before the end of 2026 or early 2027,and CFF funds will provide essential funding toward this goal. In addition to CFF funds, funding from the Navy Readiness and Environmental Protection Integration (REPI) program for the REPI easement will also likely provide a substantial amount of the funding for this project,as well as (or alternately) a bargain sale of the conservation easement from the landowners, providing the required matching funds for the CFF program.The federal grant dollars and landowner match contributed to this project have reduced the amount of funding requested from the CFF program. After the protection of Deerfoot Forest with a conservation easement,the landowners will continue to manage the property to enhance its ecological values,and the property will be protected from inappropriate development or timber harvesting,forever. To date,Jefferson Land Trust protects over 1,360 acres in the Tarboo Creek and Donovan Creek watersheds. These properties include forestland, riparian,and farmland properties,working with several partners, including the Northwest Watershed Institute and Department of Natural Resources. Top objectives: 1. Protect the property with a conservation easement and Navy REPI restrictive easement which will reduce the development rights, protect the forest and wetland habitat,and protect the headwaters of Tarboo Creek and Donovan Creek-2026/early 2027 2. After protection of the property the landowners,Jefferson Land Trust staff,and other natural resources partners will collaborate to plan and implement the best forest management practices to ensure that the property continues on its path toward old-growth forest characteristics and contributes to climate resiliency 3. Landowners, Land Trust,and other partners will continue to assess the use of the property as a wildlife corridor and determine if there are additional enhancements that can contribute to that use. The overarching goal of this project is to protect the ecological values of Deerfoot Forest so that the property will always remain in a maturing forested condition, protecting the water quality of the lower watersheds. 4 2025 CFF Program Application 11. Estimate costs below, including the estimated or appraised value of the propert(ies) or property right(s) to be acquired, even if Conservation Futures Fund funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. Estimated or Appraised Value of Propert(ies)to be Acquired:The estimated value of the conservation easement is$180,000. Total Estimated Acquisition-related Cost(see Conservation Futures Fund Manual for eligible costs): $32,000 Total Operation and Maintenance Cost: $12,000 Total Project Cost: $224,000 Basis for Estimates (include information about how the property value(s) was determined, anticipated acquisition- related costs, general description of operation and maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work): Deerfoot Forest estimated costs Timeline Est.Total CFF Request Match Cost Easement acquisition 2026 $180,000 $75,000 $105,000 Land acquisition related costs,i.e. 2026 $24,000 $15,000 $9,000 appraisal,survey, Baseline document, closing costs Project management,admin and legal ongoing $8,000 $8,000 $0 fees O&M ongoing $12,000 $12,000 $0 Total $224,000 $110,000 $114,000 (49%) (51%) The estimate for the value of the easement acquisition is based on the current Jefferson County fair market value assessment of the property,combined with our knowledge of the appraised value of other conservation easements on local properties recently. Similarly,Jefferson Land Trust completes multiple acquisition projects a year which helps us provide experienced estimates for project management and other administrative costs that will be needed for this project. Standalone 0 & M go to question #14: Scored Questions 5 2025 CFF Program Application 1. To what degree does the project leverage contributions for acquisition from groups, agencies or individuals? Sponsors or other organizations are required to contribute to acquisition of the proposed site and/or operation and maintenance activities. 1 a. Please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures Fund program funds. 1 b. Matching Fund Estimate Acquisition O&M % Conservation Futures Funds Requested S98.000 S12,000 49.0% Matching Funds/Resources* $114,000 51% Total Project Acquisition Cost S212,000 $12,000 100% *If a prior acquisition is being proposed as match,please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. 1 c. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when? Navy REPI (or bargain sale) $114,000 _ Yes No Yes No NOTE: Fifty percent(50%) matching funds are required, and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation of property or a property right can be considered as a matching resource. Donation of resources for on-going maintenance or stewardship("in- kind"contributions)are not eligible as a match. 2. To what degree has the project sponsor identified the long-term stewardship issues for the proposed project? 2 a. Identify any factors,threats, or stressors that could negatively affect the conservation values and/or community benefits for which the property would be conserved. The mature forest conditions and hydrological conservation values of the Deerfoot Forest,including the seasonal and perennial wetlands that feed into the Donovan Creek and Tarboo Creek watersheds could be negatively impacted by further development currently allowed on the southern parcel under county code, and by conventional forest management practices without a conservation easement. 2 b. Describe the management strategies that the stewardship plan will include to address the identified factors, threats,or stressors, including any actions planned to make these negative outcomes or impacts less likely. The Land Trust anticipates that the stewardship plan will focus on management strategies designed to retain and enhance the mature forest and wetland characteristics of the property.The landowners have a forest management plan that was recently updated in consultation with an experienced DNR forester.This plan promotes forest health,diversity,and resilience and will be a guiding document in the development of the Stewardship Plan. The Stewardship Plan is created in partnership with landowners who retain the fee-simple rights to the property.These plans,including their management strategies,are developed once the staff have more time (funded by public granting agencies)to conduct site assessments to create a baseline conditions report and 6 2025 CFF Program Application stewardship plan.The Land Trust will engage in ongoing,detailed discussions with landowners and their forest manager to formulate joint strategies for protecting and enhancing the identified conservation values, once the project has secured funding and before closing on the conservation easement. While we will have the required Stewardship Plan outline or draft to County Environmental Health staff in advance of closing on the conservation easement,the national Land Trust Alliance—which regularly updates its Standards and Practices to guide accredited land trusts such as Jefferson Land Trust—requires a management plan to be developed within 12 months of land acquisition.This timeline allows staff to set management goals,address risks to conservation values,and identify appropriate public access opportunities.When necessary,we will update the Stewardship Plan according to the conservation easement requirements. (https://landtrustalliance.org/resources/learn/explore/practice-12b-land-management-and- stewardship 2 c. Describe any existing water rights, and current uses of water. Identify any conservation values currently being protected that are dependent on these sources of water. The Deerfoot Forest property residences utilize two domestic wells. Onsite water supply is not an element of the identified conservation values. 3. To what degree has the project sponsor demonstrated effective long-term stewardship of a similar project? 3 a. Describe the sponsoring agency's previous or on-going stewardship experience. Over the 35 years since it was formed,Jefferson Land Trust has managed many acquisition projects with several project partner organizations, including Jefferson County,The Trust for Public Land, Northwest Watershed Institute, North Olympic Salmon Coalition (NOSC),JCCD, HCSEG,the Navy and others,and we have been responsible for conducting or coordinating restoration activities in partnership with many of those same agencies and organizations. The Land Trust also holds title to over 1,890 acres of preserves and we have helped with the preservation and stewardship of another 12,941 acres in Jefferson County.We currently hold 69 conservation easements on 3,597 acres, including the Tarboo Wildlife Preserve(396 acres),Carl's Forest (156 acres),Arlandia (28 acres),and other facilitated protection projects with the Northwest Watershed Institute. Jefferson Land Trust stewardship and monitoring protocols were developed with the guidance of the national Land Trust Alliance,and adherence to those protocols is one of the requirements for our formal land trust accreditation. 3 b. Has the project sponsor and/or applicant been involved in other projects previously approved for Conservation Futures Fund funding? No, neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures Fund funds. X Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures Fund funds. Please provide details: Jefferson Land Trust has worked with many willing landowners and has sponsored 40 CFF applications over the years since Jefferson County approved collection of the conservation futures property tax and developed the program in 2003.These projects are found in almost all areas of East Jefferson County and range from fee simple acquisition of nature preserves that are held by Jefferson Land Trust,or by other entities such as the City of Port Townsend,Jefferson County or the Jamestown S'Klallam Tribe,to permanent conservation easements held by Jefferson Land Trust on privately owned properties. 7 2025 CFF Program Application 4. To what degree is the project a part of an adopted open space, conservation, or resource preservation program or plan that was open to public review and comment, or identified in a community conservation effort that provided opportunities for public input? The proposed acquisition: _is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort, that provided opportunities for public review and comment. Please describe below, including this project's importance to the plan. Please also reference the website of the plan if available or include the plan with this application. X complements an adopted open space or conservation plan that was open to public review, but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. is a stand-alone project, or part of a project that was not open to public review. For context,the Deerfoot Forest property is nearby the Washington DNR's designated Dabob Bay Natural Area.The Dabob Bay Natural Area was created to protect one of Washington's highest functioning coastal spit and tidal wetland systems. Deerfoot Forest and other properties within the Tarboo watershed have the opportunity to provide additional protection to these areas by protecting the water quality of tributaries feeding into Dabob Bay.Tarboo-Dabob is identified in the Willamette Valley—Puget Trough—Georgia Basin Ecoregional Assessment(Floberg et al.2004) as a priority area for conserving terrestrial biodiversity,and the summary of special occurrences appendix. Jefferson Land Trust's community-vetted 100-Year Conservation Plan articulates the importance of preserving habitat with the community vision-"Habitat is biologically diverse, interconnected, and supports viable population of keystone species."(pg. 13, Jefferson Land Trust Conservation Plan,2010). It also identifies "wildlife corridors" and "natural ecosystems"as priorities for habitat areas to be protected,which Deerfoot Forest can be characterized as. A portion of the Deerfoot Forest property is specifically identified as a Highly Resilient Terrestrial Biodiversity Area through Jefferson Land Trust's Climate Resiliency Spatial Conservation Planning. More information about the Land Resilience Study can be found in the hyperlink and in Question#11. 5. To what degree does the project conserve opportunities which are otherwise lost or threatened? 5 a. The proposed acquisition site X does does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 5 b. If applicable, please carefully describe the nature and immediacy of the threat, and any unique qualities about the site. The landowners of Deerfoot Forest have considered working with Jefferson Land Trust to protect their forestland for over a decade now. Up until last year,the Hubbards wanted to reserve their ability to sell off their second parcel in case they have unexpected medical costs arise. However,now that there is the opportunity to secure Conservation Futures funds for the protection of this property,we can now work with the landowners to consolidate the property,extinguish the remaining development right,and ensure that it cannot be subdivided or clearcut should the landowners need to sell the property in the future,or after their lifetimes. 8 2025 CFF Program Application 6. Are the conservation values of the project commensurate with or greater than the amount of CFF funds requested, and will both the timeframes for meeting project objectives and associated metrics demonstrate achievement of the conservation objectives? 6 a. Summarize the project's conservation values and how the CFF funds requested support these values. The conservation values of the property that will be protected by the conservation easement include mature, diverse forest habitat,forested wetlands,scenic qualities along a main county road,and educational and scientific opportunities. The protection of this mature forest habitat will benefit the biological diversity, carbon sequestration,and groundwater recharge of the forest, as well as extend the wildlife corridor in the Tarboo and Donovan Creek watersheds that many partners have been working to protect for two decades. CFF funds requested will directly support these values by utilizing the conservation future tax levy to preserve the sensitive lands of Deerfoot Forest that would be permanently damaged by increased development or resource extraction. CFF funds may also leverage additional funding from the Navy's Readiness and Environmental Integration Program,and/or a bargain sale of the conservation easements. The timeframes for meeting the project objectives are reasonable and will achieve the conservation objectives. 6 b. Summarize how the project's conservation values are related to the project's specific objectives. The objectives described in the Project Description ensure that Jefferson Land Trust is performing the appropriate steps to ensure permanent protection of the conservation values described in 6a. 7. To what degree does the project preserve habitat for flora and fauna other than habitat for anadromous fish species? 7 a.X provides habitat for State of Washington Priority Habitat specific to the project and/or State or Federal (NOAA and USFWS)Candidate, Endangered,Threatened or Sensitive species(provide list and references). 7 b.X provides habitat for native flora and fauna. Identify the documented habitat(s) and native flora or fauna species that will be protected by the project. 7 c.X contributes to a wildlife corridor or migration route identified by Washington Connectivity Working Group or other peer-reviewed source. If affirmative in any of the above,please describe and list the Priority Habitat(s) and Threatened, Endangered, or Sensitive species below, and cite or provide documentation of species'use.' Note about this year's changes to 7c:the "Washington Connectivity Working Group"has no data on their Linkage Pathways interactive map west of the Cascade Mountains.Additionally, all the links recommended in the footnote below are expired. If citing information from specific resources is desired,please provide different requests. Otherwise,sponsors will continue to cite information from their resources. Note also that the Land Trust is participating in the statewide Washington Habitat Connectivity Action Planning process and is providing feedback and local priority information to advise the update of the Action Plan, expected to be complete in mid-2025. See, for example, http://www.dnr.wa.gov/researchscience/topics/naturalheritagc/pages/amp nh.aspx http://www.wdfw.wa.gov/conservation/phs/list/ http://www 1.dnr.wa.gov/nhp/refdesk/plants.html http://www 1.dnr.wa.gov/nhp/refdcsk/pubs/wa_ecological systems.pdf 9 2025 CFF Program Application The Deerfoot Forest property is nearby other conserved land including the conservation easements Tarboo Wildlife Preserve (396 acres),Carl's Forest(156 acres),Arlandia (28 acres),and other facilitated protection projects with the Northwest Watershed Institute,contributing to greater habitat corridors for wildlife species. The mature, mixed species forest and forested wetlands onsite provide habitat for multiple species-wildlife documented onsite include Black bear and deer,cougar,coyote, raccoon, local woodpecker species and bat species that move throughout the landscape.Western toads have been sited on the property for multiple years-they are listed as a State Candidate(WDFW Priority Habitat and Species list) and Federal Species of Concern. The Olympic Cougar Project,a connectivity collaborative funded by the international Panthera nonprofit organization, has documented that within the last several months,Yenewes,a collared female cougar who now has four kittens,spent one week on the northern Deerfoot Forest parcel.When a cougar who is part of this study spends a week in one place,they have either killed and are eating,or they are denning.Additionally, the Olympic Cougar Project has shared data of other collared cats that are also frequenting this area in and around Deerfoot Forest. Directly to the south of Deerfoot Forest is Department of Natural Resources property in their Forest Board category for timber production, but we understand that the presence of marbled murrelets on or near this property means that DNR may be working to incorporate these properties into their Dabob Bay Natural Area Preserve(currently located less than .25 miles from Deerfoot Forest). Deerfoot Forest contributes to the protection of water quality throughout the Dabob Baby and Donovan Creek watersheds by reducing the number of negative impacts that the streams and bays have to respond to such as sedimentation,erosion, pollution,and flooding. Furthermore, Dabob Bay is home to surf smelt,Pacific sand lace, Pacific Herring, Pacific geoduck, hardshell clams,commercial oyster production as well as several WDFW Priority Habitats (estuarine and marine wetland,freshwater emergent wetland).Quilcene Bay,fed by Donovan Creek has similar conservation values and species present. 8. To what degree does the project protect habitat for anadromous fish species? 8. Describe to what degree the project protects habitat for anadromous fish species (for example: marine shorelines, stream or river corridors including meander zones, and riparian buffers). Please provide documentation and maps that demonstrate the location, quality and extent of the existing buffer and adjoining habitat. As described in question #7,this property appears to be some of the headwaters of both Donovan Creek and Tarboo Creek,both of which are anadromous streams for multiple salmonid species,including Hood Canal summer chum, Puget Sound chinook,coho.The protection of habitats upstream in a watershed provides benefit to the water quality and conditions of the salmon-bearing streams further down the watershed. 9. To what degree does the project preserve farmland for agricultural use OR preserve forestland for forest management? 9 a. Describe the extent and nature of current and planned agricultural use or forest management activities of the proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds. The forestland's primary management goal is not for silvicultural and economic production, but instead for actively managing the property through enhancing and preserving the ecological diversity and resiliency of this upland and forested wetland habitat. 9 b. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. 10 2025 CFF Program Application With the proposed terms of the conservation easement, Deerfoot Forest will be able to be managed in a similar function as described in llb, in perpetuity.The easement terms will restrict clear cutting, timber harvest,and conversion of the forest which will protect the water quality,soil health,watershed function and wildlife habitat as described throughout this application. 9 c. Does this project preserve a mix of quality farmland and forestland? Preservation of farmland is not one of the proposed conservation values for this forested property;the preservation of structurally diverse,second growth forest is the primary goal of this conservation easement. 10. To what degree does this project increase resiliency to and mitigation of climate change, and is the project's scale significant in regards to increasing climate resiliency? 10. Describe how this project will increase resiliency to and mitigation of climate change. Is the project's scale significant in regards to increasing climate resiliency? Jefferson Land Trust and the North Olympic Land Trust have been involved in a Land Resilience Study of the North Olympic Peninsula since 2020.This study included working with a professional GIS consultant to utilize over 90 data sets and draw from 18 public and private sources to develop a set of climate resilience metrics that are helping to structure conservation initiatives in both partner organizations and shape future collaboration.The metrics are analyzed through the four pillars of our work including working farmland, working forestland, habitat and biodiversity,and community opportunity areas. Through this analysis, portions of Deerfoot Forest are identified as a Terrestrial Biodiversity Conservation Opportunity Area through this spatial resiliency study.Terrestrial Biodiversity Conservation Opportunity Areas are defined as the lands on the Olympic Peninsula that are most likely to retain their ecological integrity and features that support migrating biodiversity both present and predicted,where there are corridors between these features that will support future migration and are the habitat lands that have high carbon sequestration values. The long-term protection of this structurally diverse second-growth forest will enhance its ecological integrity,contributing to climate change resilience.Achieving climate change resilience in Jefferson County will require incremental protection efforts,collaborating with landowners of varying property sizes. Most privately-owned parcels in the county, not held by commercial timber companies,are smaller than 100 acres. In this context,the 37-acre size of this project is particularly significant,especially due to its proximity to the Dabob Bay Natural Area Preserve and protection efforts in the lower Donovan Creek watershed. 11. What area does the project serve? 11 a. Describe how the proposed acquisition benefits primarily a local area X broad county area including the area served,the nature of the benefit,the jurisdictions involved, and the populations served. Deerfoot Forest is a piece of property that is part of a much broader county area that has been prioritized for protection by many local and regional land conservation and management partners. Both the Donovan and Tarboo Creek watersheds have been prioritized for preservation and restoration for over two decades, as described in#7. Deerfoot Forest is at the top of these watersheds,which benefits all of the downstream work that has been happening over many years. 11 b. Is the project located in an area that is under-represented by CFF funded Projects?Areas that Conservation Futures has not been able to support to date include, Toandos Peninsula, Dosewallips Valley, Bolton Peninsula, and the West End. No. 11 2025 CFF Program Application 12. To what degree is the applicant committing to providing educational opportunities, interpretive opportunities, and/or serve as a general community resource that does not reduce the conservation value(s) of the project? 12. Describe the educational or interpretive opportunities that the applicant will provide for public access, educational or interpretive displays(signage,kiosks,etc.)on the proposed site, including any plans to provide those improvements and any plans for public accessibility that will not reduce the conservation value(s)of the project.2 Provide the time frames when each of the above will be implemented. While conservation easements cannot require access for the public or interpretive signage,the Hubbards are very passionate about being able to share educational and visitor opportunities on their property.Their future goals for the forest stated in their Forest Management Plan include designing additional walking trails and visitor infrastructure such as benches and gazebo to encourage the opportunity for people to visit an exemplary native forest and wildlife habitat for future generations. 13. To what degree does the project preserve historic or culturally significant resources3? 13. The proposed acquisition _includes historic or culturally significant resources'and is registered with the National Register of Historic Places,or an equivalent program. is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. X none of the above. If affirmative in any of the above,please describe below, and cite or provide documentation of the historical cultural resources. Standalone 0 & M Projects 14.Applications for standalone Operation and Maintenance funding to be scored on a scale of 1- 100 based on information provided. Consider the CFF Manual and the topics below,for example: 14. Please describe in detail,the reason 0&M funds are needed,proposed 0&M activities,and how they protect resources cited in the original acquisition project. Attach additional information such as up-to-date stewardship plan,maps,field reports,work plan,budget,timeline,etc.,to support the application,if appropriate. O&M projects must address a compelling, immediate need. Specifically include whether the project has an up- to-date stewardship plan. If there is such a plan,is it being implemented and is the proposed 0&M work specifically included in the plan?Also,describe any unforeseen or urgent threats to the resource conservation values of the site and whether the proposed 0&M activities will mitigate those threats and/or prevent potential future threats. Verification 2 The words"education"and"interpretation"are interpreted broadly by the CFF Committee. 3 Cultural resources means archeological and historic sites and artifacts,and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. 12 2025 CFF Program Application 15. Sponsor commitments: 15 a. Sponsors of projects that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved,or three years after the acquisition funds are disbursed to the applicant, whichever is later.The progress report must address any changes in the project focus or purpose,progress in obtaining matching funding,and stewardship and maintenance. Sponsors receiving 0&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project"report card"that will be submitted annually to the Board of County Commissioners. 15 b. If this project is approved for funding,I understand the sponsor is required to submit progress reports for three years and for any year in which 0&M funds are expended. Initials ;`IgtWozS Date 15 c. If,three years after the date funding is approved by the Board of County Commissioners,the project sponsor has not obtained the required matching funds,the Committee may request the Board of County Commissioners to nullify their approval of funds,and may require the project to re-apply. If this project is approved for funding, I understand that we may be required to re-submit the application if the project sponsor does not obtain the necessary matching funding within three years. $ Initials3111 f 25Date 15 d.The applicant has reviewed all project requirements and all information in the application is accurate to the best of their knowledge. S 5 _Initialsate 15 e. The sponsor commits to providing long-term stewardship to achieve the conservation and protection goals of the project as proposed in this application or as may be modified with recommendation•of the CF Committee and approval of the BoCC. 5S Initials 3(t1/83ate 13 2025 CFF Program Application Landowner Form1 Acknowledgement Project Applicant Information Applicant Name:Jefferson Land Trust Project Number/Name: Contact: ❑ Mr. ® Ms. First Name: Sarah Last Name: Spaeth Title: Director of Conservation Mailing Address: 1033 Lawrence St. Port Townsend, WA 98368 E-Mail Address:sspaeth@saveland.org Property Information Address or Location: 11500 Center Road. Quilcene,WA 98376 County/Parcel Number. 701052002 and 701052011 Landowner Information Landowner Name: Hubbard Center Road LLC Representative: 0 Mr. ® Ms. First Name: Penney Last Name: Hubbard Title: Mailing Address: PO Box 602 Quilcene, WA 98376 E-Mail Address: auntpenney@gmail.com 1. Penney Hubbard, Hubbard Center Road LLC, is the legal owner of property described in the grant application being submitted to Jefferson County Conservation Futures by the project applicant. 2. I am aware that the project being proposed in the grant application is on my property. 3. If a grant is successfully awarded, I will be contacted and asked to engage in negotiations. 4. My signature does not represent authorization of project implementation. 5. If I am affiliated with the project applicant, I will recuse myself from decisions made by the project applicant to work on or purchase my property. 6. There/are not (circle one)tenants on the property.Tenants displaced as a result of this project may be eligible for relocation assistance. .1 _PI(S1U-A 22C4 Landowner/Repres tative Signature Date t_/ 1 (✓t\fl el .- ‘)fNfL-• 1 1 Deerfoot Forest =iVacelli m ` :r `11 REPI Protection , Dabob Bay Natural Area(DNR) € DNR Forest Board '' $ US Fish&Wildlife Jefferson Land Trust Preserves y /� ,'' Streams ' rt • _ Jefferson Co.Tax Parcels " � d � " iiiii.41 fe:?,, ','„ ''''irp..t.i'.z, ....4 .,;;.--...4,„,, . . . , , , . ,. ...„.„.. ,..w.,....„.„,. is .41r t : -at '� ,'} t 4" is • • Saga ''yam Va stla II' 44r4E 1Llr �( ifs '�'�`'" k { fr fl tit IL �S � . . }t Y , ,IC ■ �� �F � i .r. It tk 1-!. St. + � w v , x - _ ;. amid f ?0 2 000 4 000 ',... Deerfoot Forest F—_� F' , 00et t" 4".)2023 Aerial Image(NAIP) ..\ ' +,40 Conservation Futures Fund 2025 For informational purposes only.All �Ei rku,,. data represented are from varying D Site Location Map sources and approximate. N TRUST 1 Map created in March 2025 Deerfoot Forest Jefferson Land Trust Conservation Easements REPI Protection ~ DNR Forest Board DNR Natural Area '�. US Fish&Wildlife a - Jefferson Co.Tax Parcels . ,� 1l'% r! • • h ^" r s, I tr i� „ i 41yzM , J ` — ....2:-.4rta„,,,;1`,' nabob Bay .',-,, , , s=tt,‘,', `,4 f.144:.;:„....,,,i1... 1 ,),):ti4 7., ; , . . , ._ . ...., , _ . t. AIL_ 0 a 950 1 VIIII4 I•'--{ J )Feet Deerfoot Forest 2023Aerial Image (NAIP) � ` For informational purposes only.All Conservation Futures Fund data represented are from varying 11t�1V D sources and approximate. N TRUST Map created in February 2025 I-1 Deerfoot Forest . .. ,,, 1 , - .,, 0.4, ' , ,' ,"•,.'' Jefferson Land Trust Conservation Easements REPI Protection -- .,. Dabob Bay Natural Area(DNR) xio* 1111111 DNR Forest Board 1 or ., " -- 1 * .1.,e•':' ):).' P"'''' , ' i e _____.............'' '' '' / ' , , ! 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'.S�' Co-'.---.,..-.,.." �yyr `. 4� �,-, , is �'. ;� • s - x = n .� fc .' _.� y, - ,, 5.xx. ` 419.•, ...a" a -!may. • - lair ii. _ i - ,� � ., a^ tar .i% yt • 1 .r>'."^rr a[ -la s�,2,,,. ; _ \ Onsite driveway with Douglas fir and bigleaf maple. +e.� i b;+ ��p5x ft{f 5Y -',`I VV:.*p-Af t:` qj - ..litc-,,,i1, 1y: 7 '?��:,+C r Liter 3�•'r.k+ ,i.:i.,i,-a..'-'.tA,-S,,'7.,1•-1*2.V';,1.:.';..,i:,*,,..),.,•:..,4.'1'454*.*0'1;1,,.:,ts„:'1\ Y3 g ram' f,"�#�i; S.'`. k 4 f ♦ �$9� A. i4tff$4..4v,,:i,1t.a:,-:‘,,;]i-.—i;.,,.--,.I,,.,1 .'''.,-..''04,..,,',,' 3g L? f 1 d 1 t a�.*--..ee•�ppkks C. n iii f ! 4 T ,, -.,1,, --.1 f , ,, 't. .4 i I e4,0'';'7.'-.'!- " ' ,# ,fit .� + '� . K ., b a ,-'sue 1;,� _ ` `..a. ' '�C: ' k ' ' it ah r, �' x i _..{° Ls` ,yam r .�1. tit - hx 3 } "' �. � r� +0 ,;` tr #.z'�?. Large maple on site; moss and lichen demonstrate strong moisture presence.Conservation Futures Citizen Advisory Committee site visit. ,, Ir., Yhti ." � Fss i ;'- \ ['' ,� �„w,a h V.•d, sr" .4. mar .a s' °, t ,,. R" �, :. 1: , .ram. 1',,i „s,`"` *,,y.. i# r 7}R' r. AIL, � �.1I6. X. � r, / 1 a b' at ....1 ,��. ' \ I ,. 1 1IV 4 ':i (b d .... 4.q F `f` t n. > Ay„'i r �{"n. r ..c... .;„t„, . ., -et. „., «c. ac z :: , dam , .. _ , .--- .✓ ? : ., �"w. ..,9r .r: ...if.:: � ,,i s �/ � 1 .�,� �r� ��c, � �"�,+�v# .�s�>rra�„,,Y,-�c� r�� R ,,,�• .,�.. �y��`a ft� ��' I r �:.. '" Y � "` t.t,.� K'. '. r ,,g - i _ �4-• ..ram.` t ''r' t 'w:r" • . .- ` x }+... `. .,.any... .. �=t_ `&.�,rt g `� Representative conditions of mixed alder,salmonberry,sword fern forest. Northern neighbor boundary line (commercial forestry) can be seen in background. _ .' i� d - _ A- 4k:---11' " 4 � § fi 1 , 3 L y ' I if /, -...\ ....-e.,...,-"`"' sele .. . ,t' i t tea. w. s: 7 1F)tre - -_ _ ++ *., -i`* -, _�'' ;gi ."._ N .a -, . �;i Y _ --,..:. _ , ',...ii,„;; ,.. 7.'..„, ,, So,. - do, ' .‘','-'' ' ' '- - It' +ice XM, - s iwr .:. �' '� , ,-....�,.. .e d' t E.. ' " a �t .. ire § *- '� '�! "+f' :_ ak`. #' . d# � t , , �` I Iy 4 r . . \\,‘.: ., ...,\ J lk One of many Western toads found onsite by the landowners.Western toads are listed as a State Candidate (WDFW Priority Habitat and Species list) and Federal Species of Concern. reoy' Jefferson Land Trust 1�}f sb. Board of Directors TRUST 2025 Jane Guiltinan Board President Tom Sanford • Dean Emeritus at Bastyr • Executive Director of North University Olympic Land Trust • Naturopathic Physician, retired Tim Lawson Rick York Vice President • California Department of Fish • Founder and Executive Director and Game - Botanist and of Port Townsend School of Biologist, retired Woodworking, retired Barry Mitzman Brian Rogers • Reporter and Peabody Award- Secretary winning Television Producer, • Chancellor of University of retired Alaska Fairbanks, retired • Seattle University Strategic • State of Alaska Legislator, Communications Director, retired retired Julie Lockhart Ed Thompson Treasurer • Attorney and land conservation • Educator and nonprofit professional, American professional, retired Farmland Trust, retired • Executive Director of WinterSpring, retired Ben Wilson • Healthcare and Technology, Sherry Moller retired • Plan Manager for Washington • Board President of Climate FAIR P1 Action Pathways for Schools Jefferson Land Trust Board Roster 2025 Jennifer Harrison • Head of Gaming Experimentation, Microsoft • Managing Director of Earth Economics Jefferson Land Trust Board Roster 2025 JEFFERSON LAND TRUST ORGANIZATIONAL CHART BOARD OF DIRECTORS ➢ RICHARD TUCKER- Executive Director SARAH SPAETH- Director of Conservation and Strategic Partnerships BLAISE SULLIVAN-Conservation Project Manager ➢ ERIK KINGFISHER- Director of Stewardship& Resilience CARRIE CLENDANIEL- Preserve Manager DEVON BUCKHAM—Education Coordinator GREG SACHS—Preserve Assistant KELLY STOCKER—Americorps Habitat Enhancement Crew Member MARLOWE MOSER—Stewardship Coordinator ➢ KATE GODMAN-Director of Philanthropy SARAH ZABLOCKI-AXLING- Development Manager SYDNEY LAROSE—Development Assistant RIC BREWER-Community Relations& Events Manager ➢ STEPAHNIE WEIGAND—Communications Manager LILLY SCHNEIDER—Communications Coordinator ➢ PAULA McNEES- Finance Manager ➢ CRISTINA VILLALOBOS—Office& Preserve Assistant(Matrixed to Stewardship) ➢ RYEN HELZER—Community Forest Manager • INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASU-Y DISTRICT DIRECTOR 2 CUPANIA CIRCLE MONTEREY PARK, CA 91755-7406 Employer Identification Number: Date: MAY 0 3 .994 91-146507A Case Number: 954109002 JEFFERSON LAND TRUST Contact Person: C/O DOUG MASON PRES TYRONE THOMAS PO BOX 1610 Contact Telephone Number: PORT TOWNSEND, WA 98368-0109 (213) 894-2289 Our Letter Dated: May 08, 1990 Addendum Applies: No Dear Applicant: This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501 (a) of the Internal Revenue Code as an organization described in section 501(c) (3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509 (a) of the Code because you are an organization of the type described in section 509 (a) (1) and 170(b) (1) (A) (vi) . Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a) (1) Status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a) (1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, r - Richard R. Orosco District Director Letter 1050 (DO/CO) INCOME Restricted Funds Federal, State & County Grants 250,795 Foundation Grants 150,000 Donor Restricted - Investment - Operations Income Annual Contributions 545,000 Special Events 66,550 Fee for Service 156,110 Investment Income - Other/Release from Restriction 809,201 Foundation Grants/Unrestricted 20,000 Total Income 1 ,997,656 EXPENSE Direct Program 156,629 Acquisition & Conveyance - Land/Easement Holding 55,800 Professional Services 179277.00 General & Administrative 1 ,605,445 Total Expense 1 ,997,151 Net Income 505 JEFFERSON LAND TRUST AND SUBSIDIARIES Consolidated Financial Statements For the Years Ended December 31, 2023 and 2022 TABLE OF CONTENTS Independent Auditor's Report 1 Consolidated Financial Statements: Consolidated Statement of Financial Position 3 Consolidated Statement of Activities and Changes in Net Assets-2023 5 Consolidated Statement of Activities and Changes in Net Assets-2022 6 Consolidated Statement of Functional Expenses-2023 7 Consolidated Statement of Functional Expenses-2022 8 Consolidated Statement of Cash Flows 9 Consolidating Statement of Financial Position 11 Consolidating Statement of Activities and Changes in Net Assets 12 Consolidating Statement of Functional Expenses 13 Notes to the Consolidated Financial Statements 14 Aanders , Inc PS 324 So.Main Street,Unit A,Montesano,WA 98563 CERTIFIED PUBLIC ACCOUNTANTS Telephone(360)533-3370 Fax(360)532-7123 &CONSULTANTS alkenandsanders©aiken-sanders.com Independent Auditor's Report To the Board of Directors Jefferson Land Trust&Subsidiaries Port Townsend,WA Report on the Audit of the Financial Statements Opinion We have audited the accompanying consolidated financial statements of Jefferson Land Trust and Subsidiaries (collectively, JLT, a nonprofit organization), which comprise the consolidated statement of financial position as of December 31,2023 and 2022,and the related consolidated statements of activities and changes in net assets,functional expenses,and cash flows for the years then ended,and the related notes to the consolidated financial statements. In our opinion,the financial statements referred to above present fairly,in all material respects,the financial position of JLT, as of December 31,2023 and 2022, and changes in net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of JLT and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about JLT's ability to continue as a going concern for one year after the date that the financial statements are available to be issued. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery,intentional omissions,misrepresentations,or the override of internal control.Misstatements are considered material if there is a substantial likelihood that,individually or in the aggregate,they would influence the judgment made by a reasonable user based on the financial statements. 1 MEMRFR AMFRICAN INSTITIITF OF CFRTIFIFf Pt'RI IC ACCOUNTANTS AND WASHINCTC)N SOCIFTY SF CFRTIFIFf)PI RI IC ACCUI INTANTS In performing an audit in accordance with GAAS,we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of JLT's internal control.Accordingly,no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluate the overall presentation of the financial statements. • Conclude whether,in our judgment,there are conditions or events,considered in the aggregate,that raise substantial doubt about JLT's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit,significant audit findings,and certain internal control—related matters that we identified during the audit. Other Information Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The supplementary information on pages 11-13 is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and to certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Aiken& Sanders, Inc.,PS Certified Public Accountants &Consultants July 26,2024 Montesano,WA 2 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2023 and December 31, 2022 Assets 2023 2022 Current Assets: Cash and cash equivalents $ 2,427,128 $ 2,173,070 Accounts receivable 170,424 37,604 Current pledges receivable 1,139,589 1,063,546 Prepaid expense 15,839 1,361 Total Current Assets 3,752,980 3,275,581 Land and Conservation Easements: Habitat land 9,231,039 7,534,455 Working land 5,052,673 97,728 Open space land 332,761 332,761 Conservation easements 69 69 Total Land and Conservation Easements 14,616,542 7,965,013 Fixed Assets: Furniture, equipment, and improvements 97,340 97,340 Less: Accumulated depreciation (66,611) (61,086) Fixed assets, net 30,729 36,254 Other Assets: Long term pledges receivable 150,366 471,051 Land hold fee-net - 8,333 Investments 2,276,171 1,463,104 Total Other Assets 2,426,537 1,942,488 Total Assets $ 20,826,788 $ 13,219,336 The accompanying notes are an integral part of these financial statements 3 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2023 and December 31, 2022 Liabilities & Net Assets 2023 2022 Current Liabilities: Accounts payable $ 30,683 $ 26,399 Accrued liabilities and deferred revenue 138,401 112,823 Total Current Liabilities 169,084 139,222 Long-Term Liabilities: Note payable 550,000 - Total Liabilities 719,084 139,222 Net Assets: Without donor restrictions Undesignated 1,099,368 1,039,705 Board designated 14,520,704 7,833,694 15,620,072 8,873,399 With donor restrictions 4,487,632 4,206,715 Total Net Assets 20,107,704 13,080,114 Total Liabilities &Net Assets $ 20,826,788 $ 13,219,336 The accompanying notes are an integral part of these financial statements 4 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Activities and Changes in Net Assets For the Year Ended December 31, 2023 Without Donor With Donor Total Restrictions Restrictions 2023 Support and Revenues: Gifts and contributions $ 1,260,518 $ 2,601,431 $ 3,861,949 Donated land and easements 184,433 - 184,433 Inkind donations 11,042 - 11,042 Grants and contracts 4,906,931 - 4,906,931 Special events income,net of expenses of$37,121 16,782 - 16,782 Net investment return 80,034 101,457 181,491 Net assets released from restriction 2,421,971 (2,421,971) - Total Support and Revenue 8,881,711 280,917 9,162,628 Expenses: Program services 1,525,548 - 1,525,548 Management and general 302,737 - 302,737 Fundraising 306,753 - 306,753 Total Expenses 2,135,038 - 2,135,038 Change in Net Assets 6,746,673 280,917 7,027,590 Net Assets,Beginning of Year 8,873,399 4,206,715 13,080,114 Net Assets,End of Year $ 15,620,072 $ 4,487,632 $ 20,107,704 The accompanying notes are an integral part of these financial statements 5 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Activities and Changes in Net Assets For the Year Ended December 31, 2022 Without Donor With Donor Total Restrictions Restrictions 2022 Support and Revenues: Gifts and contributions $ 576,404 $ 2,522,348 $ 3,098,752 Donated lands and easements 977,256 - 977,256 Inkind donations 2,193 - 2,193 Grants and contracts 805,373 - 805,373 Special events income,net of expenses of$26,761 23,366 - 23,366 Net investment return (76,265) 1,894 (74,371) Net assets released from restriction 859,895 (859,895) - Total Support and Revenue 3,168,222 1,664,347 4,832,569 Expenses: Program services 1,960,104 - 1,960,104 Management and general 438,537 - 438,537 Fundraising 300,403 - 300,403 Total Expenses 2,699,044 - 2,699,044 Change in Net Assets 469,178 1,664,347 2,133,525 Net Assets, Beginning of Year 8,404,221 2,542,368 10,946,589 Net Assets, End of Year $ 8,873,399 $ 4,206,715 $ 13,080,114 The accompanying notes are an integral part of these financial statements 6 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Functional Expenses For the Year Ended December 31, 2023 Management Fund- Total Program and General Raising 2023 Salaries $ 581,490 $ 162,041 $ 194,180 $ 937,711 Payroll taxes 48,293 13,458 16,127 77,878 Employee benefits 70,153 19,549 23,426 113,128 Professional fees 416,346 46,314 14,000 476,660 Land and stewardship expenses 286,823 - - 286,823 Rent 19,435 5,416 6,490 31,341 Public awareness 8,795 4,291 1,679 14,765 Dues and subscriptions 12,594 11,763 16,090 40,447 Insurance 12,556 8,038 4,193 24,787 Postage and printing 11,324 215 10,034 21,573 Other 5,611 10,138 310 16,059 Travel and seminars 10,580 4,618 1,223 16,421 Office supplies 18,579 3,675 5,344 27,598 Depreciation and amortization 2,460 3,055 - 5,515 Utilities 8,997 2,507 3,004 14,508 Web design and maintenance 8,910 - - 8,910 Bad debts - 6,000 - 6,000 Bank fees 2,602 1,659 10,653 14,914 Total Expenses $ 1,525,548 $ 302,737 $ 306,753 $ 2,135,038 The accompanying notes are an integral part of these financial statements 7 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Functional Expenses For the Year Ended December 31, 2022 Management Fund- Total Program and General Raising 2022 Salaries $ 451,664 $ 237,470 $ 191,204 $ 880,338 Payroll taxes 36,334 19,103 15,381 70,818 Employee benefits 55,597 29,231 23,536 108,364 Value of conservation easements written down 890,117 - - 890,117 Professional fees 343,533 46,843 13,141 403,517 Land and stewardship expenses 93,842 - - 93,842 Rent 15,968 8,396 6,760 31,124 Public awareness 11,758 446 3,585 15,789 Dues and subscriptions 7,069 16,347 11,055 34,471 Insurance 9,773 4,831 3,890 18,494 Postage and printing 10,291 1,096 14,802 26,189 Other 4,969 9,118 815 14,902 Interest expense - 3,525 - 3,525 Travel and seminars 8,661 8,703 161 17,525 Office supplies 7,744 20,254 4,145 32,143 Depreciation and amortization 2,924 3,829 - 6,753 Utilities 7,129 3,748 3,018 13,895 Web design and maintenance 1,350 - - 1,350 Bad debts 890 23,918 - 24,808 Bank fees 491 1,679 8,910 11,080 Total Expenses $ 1,960,104 $ 438,537 $ 300,403 $ 2,699,044 The accompanying notes are an integral part of these financial statements. 8 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31, 2023 and December 31, 2022 2023 2022 Cash flows from operating activities: Cash received from grantors, donors and customers $ 8,948,453 $ 3,420,969 Cash paid to suppliers and employees (2,139,733) (1,851,446) Cash paid for interest - (3,525) Cash received from interest 44,382 24,405 Net cash provided(used)by operating activities 6,853,102 1,590,403 Cash flows from investing activities: Cash paid for investments (1,275,403) (518,055) Cash received from investments 593,455 1,894 Proceeds from notes receivable - 41,577 Cash paid for land (6,467,096) (338,686) Net cash provided(used)by investing activities (7,149,044) (813,270) Cash flows from financing activities: Cash paid on line of credit - (83,537) Cash received from loan 550,000 Net cash provided(used)by financing activities 550,000 (83,537) Net increase (decrease)in cash & cash equivalents 254,058 693,596 Cash& cash equivalents at beginning of year 2,173,070 1,479,474 Cash & cash equivalents at end of year $ 2,427,128 $ 2,173,070 The accompanying notes are an integral part of these financial statements 9 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31, 2023 and December 31,2022 2023 2022 Reconciliation of increase(decrease)in net assets to net cash provided(used) by operating activities: Increase (decrease) in net assets: $ 7,027,590 $ 2,133,525 Adjustments: Depreciation and amortization 5,515 6,753 Bad debts 6,000 24,808 Land hold fee amortization(adjustment) 8,333 8,333 Realized and unrealized losses (gains) on investments (137,109) 98,776 Donated land (184,433) (207,256) Changes in assets and liabilities: (Increase) decrease in accounts receivable (132,820) (32,952) (Increase) decrease in pledges receivable 244,642 (480,678) (Increase) decrease in prepaid expense (14,478) (1,361) Increase(decrease) in accounts payable 4,284 12,172 Increase (decrease) in accrued expenses and deferred revenue 25,578 28,283 Net cash provided(used)by operating activities $ 6,853,102 $ 1,590,403 The accompanying notes are an integral part of these financial statements 10 JEFFERSON LAND TRUST AND SUBSIDIARIES Consolidating Statement of Financial Position Year Ended December 31,2023 JLT Jefferson Resources, Chimacum Consolidated Land Trust LLC Ridge CF,LLC Subtotal Eliminations 2023 Assets Current Assets: Cash and cash equivalents $ 2,416,391 $ 10,637 $ 100 $ 2,427,128 $ - $ 2,427,128 Accounts receivable 170,424 - - 170,424 - 170,424 Current pledges receivable 1,139,589 - - 1,139,589 - 1,139,589 Prepaid expense 15,839 - - 15,839 - 15,839 Total Current Assets 3,742,243 10,637 100 3,752,980 - 3,752,980 Land and Conservation Easements: Habitat land 8,409,108 821,931 - 9,231,039 - 9,231,039 Working land 97,728 - 4,954,945 5,052,673 - 5,052,673 Open space land 332,761 - - 332,761 - 332,761 Conservation easements 69 - - 69 - 69 Total Land and Conservation Easement 8,839,666 821,931 4,954,945 14,616,542 - 14,616,542 Fixed Assets: Furniture,equipment,and improveme 87,203 10,137 - 97,340 - 97,340 Less:Accumulated depreciation (65,080) (1,531) - (66,611) - (66,611) Total Fixed Assets 22,123 8,606 - 30,729 - 30,729 Other Assets: Long term pledges receivable 150,366 - - 150,366 - 150,366 Land hold fee-net - - - - - - Investments 7,571,312 - - 7,571,312 (5,295,141) 2,276,171 Total Other Assets 7,721,678 - - 7,721,678 (5,295,141) 2,426,537 Total Assets $20,325,710 $ 841,174 $ 4,955,045 $26,121,929 $(5,295,141) $20,826,788 Liabilities Current Liabilities Accounts payable $ 30,683 $ - S - $ 30,683 $ - $ 30,683 Accrued liabilities and deferred reven 138,401 - - 138,401 - 138,401 Total Current Liabilities 169,084 - - 169,084 - 169,084 Long Term Liabilities Note payable - 550,000 - 550,000 - 550,000 Total Liabilities 169,084 550,000 - 719,084 - 719,084 Net Assets With Donor Restrictions 4,487,632 - - 4,487,632 - 4,487,632 Without Donor Restrictions 15,668,994 291,174 4,955,045 20,915,213 (5,295,141) 15,620,072 Total Net Assets 20,156,626 291,174 4,955,045 25,402,845 (5,295,141) 20,107,704 Liabilities&Net Assets $20,325,710 $ 841,174 $ 4,955,045 $26,121,929 $(5,295,141) $20,826,788 The accompanying notes are an integral part of these financial statements. 11 JEFFERSON LAND TRUST AND SUBSIDIARIES Consolidating Statement of Activities Year Ended December 31,2023 JLT Resources, Chimacum Ridge Consolidated Jefferson Land Trust LLC CF,LLC Subtotal Eliminations 2023 Support and Revenues Gifts and contributions $ 3,861,949 $ - $ - $ 3,861,949 $ - $ 3,861,949 Donated land and easements 184,433 - - 184,433 - 184,433 Inkind donations 11,042 - - 11,042 - 11,042 Grants and contracts 4,906,931 - - 4,906,931 - 4,906,931 Special events income,net of expenses of$37,121 16,782 - - 16,782 - 16,782 Net investment return 181,454 37 - 181,491 - 181,491 Net assets released from restriction - - - - - - Total Support and Revenues 9,162,591 37 - 9,162,591 - 9,162,628 Program Expenses Jefferson Land Trust 1,513,398 - - 1,513,398 - 1,513,398 JLT Resources,LLC - 12,150 - 12,150 - 12,150 Chimacum Ridge CF,LLC - - - - - - Total Program Expenses 1,513,398 12,150 - 1,525,548 - 1,525,548 Management and general 302,737 - - 302,737 - 302,737 Fundraising 306,753 - - 306,753 - 306,753 Total Expenses 2,122,888 12,150 - 2,135,038 - 2,135,038 Change in Net Assets 7,039,703 (12,113) - 7,027,553 - 7,027,590 Capital Transfer - 6,551 4,955,045 4,961,596 (4,961,596) - Net assets-Beginning of Year 13,116,923 296,736 - 13,413,659 (333,545) 13,080,114 Net assets-End of the Year $ 20,156,626 $ 291,174 $ 4,955,045 $ 25,402,808 $(5,295,141) $ 20,107,704 The accompanying notes are an integral part of these financial statements. 12 JEFFERSON LAND TRUST AND SUBSIDIARIES Consolidating Statement of Functional Expenses Year Ended December 31,2023 Total Jefferson JLT Resources, Chimacum Ridge Program Management Consolidated Land Trust LLC CF,LLC Services &General Fundraising Eliminations 2023 Salaries $ 581,490 $ - $ - $ 581,490 $ 162,041 $ 194,180 $ - $ 937,711 Payroll taxes 48,293 - - 48,293 13,458 16,127 - 77,878 Employee benefits 70,153 - - 70,153 19,549 23,426 - 113,128 Professional fees 405,343 11,003 - 416,346 46,314 14,000 - 476,660 Land and stewardship expenses 286,242 581 - 286,823 - - - 286,823 Rent 19,435 - - 19,435 5,416 6,490 - 31,341 Public awareness 8,795 - - 8,795 4,291 1,679 - 14,765 Dues and subscriptions 12,594 - - 12,594 11,763 16,090 - 40,447 Insurance 12,556 - - 12,556 8,038 4,193 - 24,787 Postage and printing 11,324 - - 11,324 215 10,034 - 21,573 Other 5,552 59 - 5,611 10,138 310 - 16,059 Travel and seminars 10,580 - - 10,580 4,618 1,223 - 16,421 Office supplies 18,579 - - 18,579 3,675 5,344 - 27,598 Depreciation and amortization 1,953 507 - 2,460 3,055 - - 5,515 Utilities 8,997 - - 8,997 2,507 3,004 - 14,508 Web design and maintenance 8,910 - - 8,910 - - - 8,910 Bad debts - - - - 6,000 - - 6,000 Bank fees 2,602 - - 2,602 1,659 10,653 - 14,914 Total Expenses $ 1,513,398 $ 12,150 $ - $ 1,525,548 $ 302,737 $ 306,753 $ - $ 2,135,038 The accompanying notes are an integral part of these financial statements. 13 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Organization— Jefferson Land Trust (The Land Trust) is a Washington not-for-profit corporation formed on April 7, 1989. The Land Trust's purpose is to acquire, preserve and manage open space lands and easements for land conservation purposes benefitting the public. The Land Trust also provides information and materials to the public on land conservation issues. The Land Trust serves Jefferson County on the Olympic Peninsula in Washington State. The Land Trust has been accredited by the national Land Trust Alliance since August 5,2009. On September 5, 2007, JLT Resources, LLC was formed with the Land Trust as its only member. JLT Resources, LLC was formed for the purpose of purchasing and holding land for conservation purposes. On November 13, 2023, Chimacum Ridge Community Forest, LLC was formed with the Land Trust as its only member. Chimacum Ridge Community Forest, LLC was formed for the purpose of purchasing land and operating a community forest. Principles of Consolidation— These financial statements consolidate the statements of Jefferson Land Trust, JLT Resources, LLC, and Chimacum Ridge Community Forest, LLC (collectively, "JLT"). Inter-organization balances and transactions have been eliminated in consolidation. Basis of accounting— The consolidated financial statements of JLT have been prepared on the accrual basis of accounting. Basis of presentation— JLT follows accounting prescribed by the Financial Accounting Standards Board in its Accounting Standards Codification (ASC) 958 Not-for Profit Entities. Under ASC 958, JLT is required to report information regarding its financial position and activities according to two classes of net assets: with donor restrictions, and without donor restrictions. With Donor Restrictions: Net assets that result from contributions whose use by JLT is restricted by donor imposed stipulations that may expire with the passage of time or can be fulfilled or otherwise removed by actions of JLT. Without Donor Restrictions:Net assets that are not restricted by donor stipulation. Gifts of goods and equipment are reported as without donor restrictions unless explicit donor stipulations specify how the donated assets must be used. Property and Fixed Assets— Improvements, furniture and equipment are capitalized at cost if purchased, or, if donated, at the approximate fair value at the date of donation. When retired or otherwise disposed of, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference, less any amount realized from disposition, is reflected in earnings. Maintenance and repairs are charged to expense as incurred. Costs of significant improvements are capitalized. JLT provides for depreciation using the straight-line method over the estimated useful lives of the assets of five to ten years. 14 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 JLT records acquisitions of land at cost if purchased. Land acquired through donation is recorded at fair value, with fair values generally based on independent professional appraisals. These assets fall into two primary categories: Conservation Lands- Real property with significant ecological value for habitat, open space, or working lands. Stewardship programs of JLT manage these properties to protect the natural biological diversity of the property. JLT manages its working timberland as a Forest Stewardship Council-Certified,managed forest. Conservation Easements-Voluntary legal agreements between a landowner and a land trust or government agency to permanently protect the identified natural features and conservation values of the property. These easements may be sold or transferred to others so long as the assignee agrees to carry out, in perpetuity, the conservation purposes intended by the original grantor. Conservation easements owned by JLT protect habitat, open space and working lands, such as family farms, through its stewardship programs. Easements acquired represent numerous restrictions over the use and development of land not owned by JLT. Since the benefits of such easements accrue to the public upon acquisition, the fair market value of easements acquired is shown in the year of acquisition as an addition to net assets to record the donation of the easement, and unless conveyed to a public agency for consideration, shown as a reduction in net assets to record the value of the public's benefit and to recognize that these easements have no marketable value once severed from the land and held by JLT. Easements held by JLT are carried on the consolidated statement of financial position at$1 each for tracking and accounting purposes. A total of$69 is recorded in the financial records for the nominal value of easements acquired. JLT has preserved a total of 4,517 acres of land with 69 current easements. The original acquisition cost of the easements,expensed when acquired,was in excess of$19,100,000. Portions of two easements with a value of$770,000 were donated to JLT during 2022. Accordingly, $770,000 of contribution revenue and $770,000 of related write down expense have been reported on the consolidated statements of activities for the year ended December 31,2022. Estimates— The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America(U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Expense Allocation— The costs of providing various programs and other activities have been summarized on a functional basis in the consolidated statement of functional expense. Program expenses represent expenses incurred to fulfill JLT's exempt purposes. Management and general expenses support that exempt purpose while fundraising expenses are incurred to raise resources to carry out program activities. Expenses are recorded, when appropriate, to the function receiving direct benefit. When expenses benefit more than one function, an allocation is made based on relative benefits provided to each function. Cash and Cash Equivalents— For reporting purposes, JLT considers all unrestricted highly liquid investments with a purchased maturity of three months or less to be cash and cash equivalents. 15 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31,2023 and 2022 Concentrations— JLT maintains its cash in bank deposit accounts with three financial institutions. JLT's cash balances may, at times,exceed federally insured limits. At December 31, 2023,three donor's pledges represented approximately 70%of pledges receivable. At December 31,2022, four donor's pledges represented approximately 86%of pledges receivable. Investments— Investments in marketable securities with readily determinable fair values are valued at their fair values in the consolidated statement of financial position. Certificates of deposit are carried at cost plus accrued interest in the consolidated statement of financial position. Unrealized gains and losses are included in the change in net assts. Grants and Contracts— JLT receives grants and contracts from federal, state, and local agencies, as well as from private organizations, to be used for specific programs or land purchases. The excess of grants receivable over reimbursable expenditures to-date is recorded as deferred revenue. Federal Income Taxes— The Internal Revenue Service has determined Jefferson Land Trust and JLT Resources, LLC (a disregarded entity) to be exempt from federal income taxes under Internal Revenue Code Section 501(c)(3).Contributions to JLT are deductible as allowed under IRC Section 170(b)(I)(A)(vi). During the year ended December 31, 2012, the Land Trust elected the provisions of Section 501(h), relating to expenditures to influence legislation. That election remains in force unless revoked. Contributions— Contributions are recognized when received or when a donor makes an unconditional promise to give to JLT. Contributions that are restricted by the donor are reported as increases in net assets without donor restrictions if the restrictions expire in the year in which the contributions are recognized. All other donor restricted contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets with donor restrictions are reclassified to net assets without donor restrictions. Unconditional promises to give (pledges receivable) are recognized as revenues in the period the pledge is received. Long term pledges (collection expected in greater than one year) are discounted to the net present value of future cash flows. Conditional promises to give are recognized only when the conditions on which they depend are substantially met and the promise becomes unconditional. Subsequent Events— JLT has evaluated subsequent events through July 26, 2024, the date on which the consolidated financial statements were available to be issued. 16 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 B. LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS: JLT, although it expects to receive current support to fund operations for 2024 and later years,has$1,062,007 and $423,001 of financial assets available within one year of the statement of financial position dates on December 31,2023 and 2022,respectively,to meet cash needs for general operating expenditures. JLT also has $614,039 and $578,659, of board designated assets as of December 31, 2023 and 2022, respectively,that can be reallocated for general expenditures if needed. Financial assets available within one year consist of the following: 2023 2022 Financial assets at year end $ 6,163,678 $ 5,208,375 Donor restricted to purpose (4,487,632) (4,206,715) Board designations (614,039) (578,659) Financial assets available to meet cash needs within one year $ 1,062,007 $ 423,001 C. NET ASSETS COMPOSITION: JLT's net assets with donor restrictions consisted of the following at December 31, 2023 and 2022: 2023 2022 Purpose Restriction: For stewardship of Bullis Forest Preserve $ 27,483 $ 39,511 Chi-yakh-wh 30,740 35,715 Campaign Readiness Fund/Operations 1,132,364 672,260 Stewardship funding 843,969 836,341 Quimper Wildlife Corridor 264,918 210,353 Other program restrictions 52,111 51,770 2,351,585 1,845,950 Time Restriction: Outstanding pledges 1,289,955 1,540,797 Permanent Restriction Endowment Fund 846,092 819,968 Total Net Assets With Donor Restrictions $ 4,487,632 $ 4,206,715 17 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 Net assets without donor restrictions consisted of the following at December 31, 2023 and 2022: 2023 2022 Designated: Quimper Wildlife Corridor $ 2,115,834 $ 1,576,803 Chimacum Creek 388,347 388,347 Duckabush Riparian Forest 492,800 492,800 Duckabush Hacheney 90,000 90,000 Donovan Creek 270,000 270,000 Duckabush Wetlands&Oxbow 530,000 530,000 Bulis Forest Preserve 125,240 125,240 Moore 34,155 34,155 Beaver Valley 662,537 105,986 Brinnon-Wright 130,000 130,000 Upper Snow Creek Forest 340,000 340,000 Snow Creek Uncas Preserve 260,000 260,000 Chimacum Commons 90,850 90,850 Snow Creek Estuary 86,000 86,000 Snow Creek-Hopkins 95,000 95,000 Silver Reach 125,000 125,000 Gateway 85,000 85,000 Kilham Corner 81,202 81,202 Fite&Fissler 182,226 182,226 Valley View 1,710,000 1,710,000 Discovery Bay 311,358 311,358 Longmire 145,000 145,000 Ruck 601,000 - Chimacum Ridge 4,955,046 - Stewardship Fund 401,432 366,053 CP Operations Reserve 27,476 27,476 Karen Mckee Board Fund 13,328 13,328 Operations Reserve 171,804 171,801 Conservation easements 69 69 Total Designated 14,520,704 7,833,694 Undesignated 1,099,368 1,039,705 Total Net Assets Without Donor Restrictions: $ 15,620,072 $ 8,873,399 Net assets of$2,421,209 and $846,509, respectively,were released from donor restrictions by incurring expenses satisfying the purpose restriction specified by the donor, and net assets of$762 and $13,386, respectively, were released due to the expiration of time restrictions for the years ended December 31,2023 and 2022. 18 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 D. LINE OF CREDIT: JLT entered into a line of credit arrangement with 1 t Security Bank during 2021. The line requires monthly payments of interest at 4.25% on outstanding balances. The line of credit principal balance was $0 and $0 at December 31, 2023 and 2022,respectively. E. ENDOWMENTS: The JLT endowment consists of one fund established to support general operations. As required by U.S. GAAP, net asset associated with endowment funds are classified and reported based on the existence or absence of donor- imposed restrictions. Nature of Endowments and Interpretation of Relevant Laws- JLT's Board of Directors has reviewed the Washington State Prudent Management of Institutional Funds Act(PMIFA) and,having considered its rights and obligations thereunder, has determined that it is desirable to preserve, on a long-term basis, the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this determination, JLT classifies as nets assets with donor restrictions (a) the original value of gifts donated to the permanent endowment, and (b) the original value of subsequent gifts to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in net assets with permanent donor restrictions is classified as net assets with donor restrictions until those amounts are appropriated for expenditure by JLT in a manner consistent with the standard of prudence prescribed by PMIFA. However, JLT has informed donors of its spending policy which states that no distributions will be made during the first five years of the fund's existence or until it reaches a threshold balance of$400,000. Since these milestones have not yet been reached,JLT adds all amounts earned to the permanently restricted balance. In accordance with PMIFA, JLT considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds, (1) the duration and preservation of the various funds, (2) the purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other resources of JLT, and(7)JLT's investment policies. Endowment net assets, all permanently restricted, totaled $846,092 and $819,968, respectively, at December 31, 2023 and 2022. 19 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 Changes in endowment net assets for the year ended December 31, 2023 are as follows: Temporary Permanent Donor Restrictions Donor Restrictions Total Endowment Net Assets 1/1/2023 $ - $ 819,968 $ 819,968 Contributions - 5,500 5,500 Investment Income - 11,019 11,019 Net Appreciation(Depreciation) - 9,605 9,605 Endowment Net Assets 12/31/23 $ - $ 846,092 $ 846,092 Changes in endowment net assets for the year ended December 31,2022 are as follows: Temporary Permanent Donor Restrictions Donor Restrictions Total Endowment Net Assets 1/1/2022 5 - $ 68,074 $ 68,074 Contributions - 750,000 750,000 Investment Income - 1,894 1,894 Net Appreciation(Depreciation) - - - Endowment Net Assets 12/31/22 $ - $ 819,968 $ 819,968 Funds with Deficiencies- From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or PMIFA requires JLT to retain as a fund of perpetual duration. In accordance with U.S. GAAP, deficiencies of this nature are reported in net assets with donor restrictions. There were no such deficiencies as of December 31,2023 or 2022. Return Objectives and Risk Parameters- JLT has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that JLT must hold in perpetuity or for donor-specified periods as well as board-designated funds. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner that is intended to produce results that exceed the price and yield results of a custom Policy Index made up of various indices. The composition of the custom Policy Index is based upon the strategic asset allocation of the investment portfolio and assumes a moderate level of investment risk. The investment objectives of the Operations Endowment Fund include maintenance of principal, timely liquidity, and preservation of purchasing power over time. Strategies Employed for Achieving Objectives- To satisfy its long-term rate-of-return objective, JLT notes that for funds earmarked for capital appreciation, appropriate investments include intermediate term bond funds/ETF's, equity mutual funds,equity ETF's, and unconstrained bond funds. 20 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 Spending Policy and How the Investment Objectives Relate to the Spending Policy- JLT's spending policy intends that no distributions shall be made from the Operations Endowment Fund for the first five years of its existence or until it reaches a threshold balance of$400,000, whichever shall first occur. After a five-year period which ended in December of 2014, or after achieving the $400,000 threshold, distributions shall be made on an annual basis as determined by the Board. Regular disbursements should be limited to a maximum of 5% of the value of the portfolio at the beginning of each fiscal year, or one-half of the income generated by the fund for the most recent fiscal year, whichever is less. At no time will the distribution of the spendable amount result in the invasion of the original amounts donated. F. ACCOUNTS RECEIVABLE: Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. Historically, bad debts have been immaterial. During 2023 and 2022, there were bad debts of $6,000 and $24,808, respectively. As of December 31, 2023, management estimated that all accounts receivable were collectible. JLT had no material amounts past due at December 31,2023. G. PLEDGES RECEIVABLE: JLT received promises to give from a number of donors in 2023 and in years prior to 2023. JLT has provided an allowance for uncollectible amounts based on its assessment of the current status of individual pledges and has discounted pledges to current value using a rate of .15%. Pledges receivable at December 31, 2023 are to be received as follows: Less than one year $ 1,139,589 Two to five years 159,007 Thereafter - 1,298,596 Less discount to present value (2,441) Less allowance for uncollectible (6,200) $ 1,289,955 H. NOTE RECEIVABLE: On February 15, 2008, JLT granted a loan to an individual in relation to one of the pieces of conservation land owned by JLT. A promissory noted was received in exchange. 21 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 The promissory note was for the amount of$93,750 and was to be paid in monthly installments of approximately $600. The note matured on January 15,2028 with an annual interest rate of 5%. The note was paid in full during the year ended December 31, 2022. I. FURNITURE,EQUIPMENT,AND IMPROVEMENTS: Furniture,Equipment, and Improvements consist of the following at December 31,2023 and 2022: 2023 2022 Furniture&Equipment,and Software $ 57,351 $ 57,351 Accumulated Depreciation and Amortization -34336 (33,825) 23,015 23,526 Leasehold Improvements 39,989 39,989 Accumulated Depreciation (32,275) (27,261) 7,714 12,728 Fixed Assets-Net $ 30,729 $ 36,254 Accumulated Depreciation and Amortization was $66,611 and $61,086 at December 31, 2023 and 2022, respectively. J. ECONOMIC DEPENDENCY: For 2023 and 2022, grant funding was primarily provided by the State of Washington Recreation and Conservation Office, State of Washington Department of Commerce, and Jefferson County. A reduction in this level of support, if it were to occur, could have a significant impact on JLT's operation K. RETIREMENT PLAN: JLT maintains a Simplified Employee Pension—Individual Retirement Accounts Contribution Benefit Plan ("the Plan"). Eligible employees may join the Plan after one year of service. There were employer contributions of $36,959 and$20,580,respectively, for 2023 or 2022. L. LAND AND CONSERVATION EASEMENTS: Land and conservation easements at December 31 are summarized as follows: 22 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 2023 2022 Quimper Wildlife Corridor S 2,250,333 $ 1,711,301 Chimacum Creek 385,348 385,348 Duckabush Riparian Forest 492,800 492,800 Duckabush-Hacheney 90,000 90,000 Donovan Creek 205,000 205,000 Duckabush Wetlands&Oxbow 530,000 530,000 Bulis Forest Preserve-JLTR 125,240 125,240 Beaver Valley-JLTR 662,537 105,985 Moore-JLTR 34,155 34,155 Upper Snow Creek Forest 340,000 340,000 Snow Creek Uncas Preserve 325,000 325,000 Chimacum Commons 90,850 90,850 Snow Creek Estuary 86,000 86,000 Silver Reach 125,000 125,000 Gateway 85,000 85,000 Kilham Corner 38,930 38,930 Valley View 2,002,000 2,002,000 Discovery Bay 418,583 418,583 Fissler 75,000 75,000 Longmire 145,000 145,000 Snow Creek-Hopkins 95,000 95,000 Thorndyke 458,751 458,751 Chimacum Ridge-CRCF 4,954,945 - Ruck 601,000 - Conservation easements 69 69 Total Unrestricted Net Assets $ 14,616,542 $ 7,965,013 M. INCOME TAX&UNCERTAIN TAX POSITIONS: Jefferson Land Trust, JLT Resources, LLC (a disregarded entity), and Chimacum Ridge Community Forest, LLC (a disregarded entity) are tax exempt non-profit organizations under the Internal Revenue Code Section 501(c)(3) and are not classified as a private foundation. Accordingly, the financial statements do not include any provision for income taxes. JLT files income tax returns in the U.S. federal jurisdiction. The Trust is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2020. Currently, there is no examination or pending examination with the Internal Revenue Service(IRS)or any other state or federal taxing authorities. 23 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 JLT adopted the provisions of FASB ASC 740-10, Accounting for Uncertainty in Income Taxes, on January 1, 2009. As of December 31, 2023, there are no tax positions for which the deductibility is certain but for which there is uncertainty regarding the timing of such deductibility. N. INVESTMENTS AND FAIR VALUE MEASUREMENTS: JLT follows U.S. GAAP which establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 Measurements) and the lowest priority to unobservable inputs (Level 3 Measurements). The three levels of the fair value hierarchy under ASC 958 are described as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Trust has the ability to access. Level 2: Inputs to valuation methodology include: Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets or liabilities in inactive markets. Inputs other than quoted prices that are observable for the asset or liability. Inputs that are principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31,2023. Stocks: Valued at quoted market prices in active markets for identical assets. Mutual Funds: Valued at quoted market prices in active markets, which represent the net asset value (NAV) of shares held by the JLT at year end. Community Foundation: Valued at applicable share of pooled market investments at foundation. Certificates of Deposit:Valued at original investment plus received and accrued interest. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Trust believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. 24 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 The following table sets forth by level, within the fair value hierarchy, JLT's assets at fair value as of December 31,2023: Assets at Fair Value as of December 31,2023 Level 1 Level 2 Level 3 Total Mutual funds $ 954,554 $ - $ - $ 954,554 Community Foundation - 409,605 - 409,605 Total Assets at Fair Value: $ 954,554 $ 409,605 $ - $ 1,364,159 Certificates of deposit,held at cost plus accrued interest 912,012 Total Investments $ 2,276,171 The following table sets forth by level, within the fair value hierarchy, JLT's assets at fair value as of December 31,2022: Assets at Fair Value as of December 31,2022 Level 1 Level 2 Level 3 Total Mutual funds $ 873,725 $ - $ - $ 873,725 Community Foundation - 200,083 - 200,083 Total Assets at Fair Value: $ 873,725 $ 200,083 $ - $ 1,073,808 Certificates of deposit,held at cost plus accrued interest 389,296 Total Investments $ 1,463,104 Investment return for the years ended December 31 consisted of the following: 2023 2022 Interest÷nd income $ 44,382 $ 15,371 Realized/unrealized(loss)gain 137,109 (89,742) Total $ 181,491 $ (74,371) 25 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 O. LAND PURCHASE AND HOLD FEE: JLT signed a purchase and sale agreement with a third party during 2015 for the purchase of approximately 850 acres of forest land in Jefferson County. The terms of the agreement, dated March 17, 2015, required JLT to purchase the property for an amount not to exceed the appraised fair market value of the property. The terms of the agreement required the payment of a $100,000 non-refundable hold fee to the third party to allow time for the purchase process to be completed and for JLT to raise the necessary funding to complete the purchase. The hold fee agreement was to expire on March 17, 2019. During 2016, JLT signed an amended agreement that resulted in the refund of$25,000 of the$100,000 hold fee and extended the agreement to nine year from the original five years,now expiring in 2023. JLT adjusted amortization of the hold fee to the new life of the agreement which resulted in an increase to the hold fee asset of $8,331 in 2016. Amortization expense of $8,331 was recognized during 2023 and 2022, completing the hold fee amortization. JLT completed the land purchase during 2023. P. NOTE PAYABLE: JLT Resources, LLC signed a loan agreement and promissory note on January 11, 2023, with the Washington State Housing Finance Commission, for a total of $550,000. The loan proceeds were used for a property acquisition. The loan requires annual interest accrual at 1% simple interest, with payments of principal and interest deferred until maturity. The note matures on the earlier of January 31, 2031, or when a conservation easement is sold on the underlying property. Jefferson Land Trust plans to purchase and hold the conservation easement. 26 Jefferson Land Trust Board Meeting Minutes LA:Ni Tuesday, February 20, 2024 (4:00—6:00 PM) Zoom Only TRU! Zoom : 943 0298 7630 Passcode: 385702 Action Material Agenda Items Requir Who Time in Packet ed 4:00 Confirm all Zoom participants can hear and participate in meeting. Action Brian No 4:05 Welcome&Announcements Info Brian No Consent Agenda Brian Yes 4:10 Action • Minutes of the 1/16/24 Board Meeting Consent Agenda Approved ED Update • ED Report (see full report for details) • QWC TLT still awaiting sig nature from the Governor • 3 properties in QWC to close in March Info Yes Richard • Presentation from Olympic Housing Trust next week on plans for 4:15 Chimacum Commons • Capital Campaign total to date 6 million+;presently at 73%of goal • Climate resiliency project with NOLT-improving mapping tools • Audit to occur first part of March • Conservation Breakfast March 14, Presentation on the Cougar Project CPC Projects • Pedersen property The CPC recommends that JLT Board approve the purchase of the Pedersen property 4:45 Action Rick&Sarah Yes • Priority ranking for CFF of proposed acquisitions of Humbleberry Farm and Hubbard properties The CPC recommends that JLT Board approve the following priority for CFF request-1. Humbleberry Farm 2. Hubbard The Board approved the purchase of the Pedersen property The Board approved the CFF priority of!. Humbleberry,2. Hubbard SON c ct 021 2025 Jefferson County Conservation Futures Fund Program �9Sy�No`l Property Acquisition Project and/or Operations and Maintenance Project Application Please complete the following application in its entirety. Be sure to answer "N/A"for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at(360)379-4498 or tpokorny@co.lefferson.wa.us with questions. Background and Eligibility Informatior 1. .Project Title: Toandos Forest Acquisition and Restoration 2.Conservation Futures Acquisition Request: $96,000 Conservation Futures O&M Request: $0 3. Total Conservation Futures Request: $96,000 4. Please indicate the type of interest contemplated in the acquisition process. X Warranty Deed _ Easement _Other(Please describe below.) In whose name will the property title be held after acquisition`? Northwest Watershed Institute 5. Applicant Information Name of Applicant or Organization: Northwest Watershed Institute Contact: Peter Bahls Title: Executive Director/Conservation Biologist Address: 3407 Eddy Street, Port Townsend, WA 98368 Phone: (360) 821-9566, ext. Fax: ext. Email: peter@nwwatershed.org 6. Sponsor Information: (if different than applicant) Same Organization Name: Contact: Title: Address: Phone: . Fax: ( ) - ,ext. This application was approved by the sponsor's legally responsible body(e.g., board, council, etc.)on February 25, 2025 1 2025 CFF Program Application 7. Project Location Street Address or Description of Location: 1125 Toandos Road, Quilcene, WA Driving Directions from Port Townsend: Coyle Road south to Toandos Road. Need gate code to proceed on Toandos Road to"Leaning Firs" sign on left. Section: 15 Township: 27 N Range: 1 W Assessor's Parcel Number(s): 701-153-003 Please differentiate current and proposed ownership of each APN and indicate if the parcel is to be acquired with CF funds or used as match. The parcel is to be acquired with CF funds Please list the assessed values for each property or APN, as applicable. 701-153-003 = $124,257 8. Existing Conditions New Site: Yes No Number of Parcels: 1 Addition to Existing Site: Yes No Acres to Be Acquired: 6.38 Total Project Acreage (if different): Current Zoning: 1 per 5 Existing Structures/Facilities: Yes Any current covenants, easements or restrictions on land use: No Current Use: Residential Waterfront (name of body of water): Discovery Creek watershed, part of Dabob Bay Watershed Shoreline(linear feet): NA Owner Tidelands/Shorelands: NA 9. Current Property Owner X is _is not a willing seller. Project Description 10. In 1,000 words or less, provide a summary description of the project,the match, and why you think preserving this property is important.Name three top objectives for the property(other than those related to funding). Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Fund Program funds including: vegetation,topography, surrounding land use,and relationship to parks, trails, and open space. Describe the use planned for the site, any development plans after acquisition(including passive development), characteristics of the site which demonstrate that it is well-suited to the proposed use, and plans for any structures currently on the site. If applicable, describe how the site project relates to a larger 2 2025 CFF Program Application conservation program (please identify), and whether the project has a plan, schedule and funding dedicated to its completion. Please also list any important milestones for the project or critical dates, e.g. grant deadlines. List the dates and explain their importance. Please attach a spreadsheet of the budget. Background, goals, and objectives Since 2002, Northwest Watershed Institute (NWI),Jefferson Land Trust, and over 40 partnering organizations have been working on a landscape scale project to protect and restore the Tarboo- Dabob Bay watershed,with over 4,000 acres conserved to date along Tarboo Creek and within the state's Dabob Bay Natural Area.The three main objectives of the conservation effort are to: 1) protect and restore the stream and wetland corridor,from the headwaters of Tarboo Creek to Dabob Bay, 2) conserve uplands for sustainable forestry, 3) preserve lands within the Dabob Bay Natural Area. For this project, NWI proposes to acquire and permanently protect and restore a 6.38 acre parcel within the boundaries of the Dabob Bay Natural Area. The property adjoins state protected lands on three sides. The property is mostly forested with a small residence and drains to Discovery Creek. As match to the grant, NWI is proposing to clean up the property, including removal of the cabin, trailers, debris, decommission of roads and septic system, and re-vegetation and weed control where needed. Protection and restoration of the property is an important piece in the larger landscape scale conservation effort to protect and restore fish, wildlife, water quality and habitat connectivity of the Dabob Bay ecosystem. Proposed uses The Property will be owned and managed by NWI. County deed restrictions will permanently preserve the Property. Selective timber harvest of the existing tree plantation will be permitted to restore complex older forest structure and habitat.A walking trail system for supervised public school and other tours is planned. Critical dates and urgency NWI has a signed purchase agreement with the landowner to purchase by June 30, 2025. If funding cannot be secured by then, an NWI supporter has agreed to purchase the property and hold until October 2025, then re-sale for the same price to NWI. If NWI cannot purchase,the property will be sold for residential development. 11. Estimate costs below, including the estimated or appraised value of the propert(ies) or property right(s)to be acquired, even if Conservation Futures Fund funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. Estimated or Appraised Value of Propert(ies) to be Acquired: $145,000 Total Estimated Acquisition-related Cost(see Conservation Futures Manual for eligible costs): $17,000 Total Operation and Maintenance Cost: $30,000 Total Project Cost: $192,000 3 2025 CFF Program Application Budget JCCF Match to Total Request JCCF Cost Timeline Acquistion Hough Property- Fee Simple 80,000 65,000 145,000 Aug-25 Acquisition Related Costs: Appraisal 4,200 4,200 Feb-25 Closing costs 3,500 3,500 Stewardship and forest mgt plan 2,800 1,000 3,800 O&M Costs - Cleanup and restoration Demo and remove cabin,trailers,junk 15,000 15,000 Nov-25 Decompact/decommission roads 5,000 5,000 Nov-25 Planting and weed control - 2 years 6,000 6,000 Feb-25 Project management and administration 5,500 4,000 9,500 Feb 25-Feb 27 Total Project Costs 96,000 96,000 192,000 Basis for Estimates (include information about how the property value(s)was determined, anticipated acquisition- related costs, general description of operation and maintenance work to be performed,task list with itemized budget, and anticipated schedule for completion of work): Estimate of fair market value is based on a restricted appraisal report by Chad Johnson, SH&H Appraisal, dated February 26, 2025 (see Supplemental Materials). Clean-up and restoration costs are based on NWI's inspection of the site and experience of over 20 years of working with contractors and NWI's field crew to do this type of work. Standalone 0 & M go to question #14: Sewed Questions 1. To what degree does the project leverage contributions for acquisition from groups, agencies or individuals? Sponsors or other organizations are required to contribute to acquisition of the proposed site and/or operation and maintenance activities. 1 a. Please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures Fund program funds. Describe 4 2025 CFF Program Application 1 b. Matching Fund Estimate Acquisition O&M Conservation Futures Funds Requested $96,000 $0 50% Matching Funds/Resources* $66,000 $30,000 50% Total Project Acquisition Cost $162,000 $30,000 100% *If a prior acquisition is being proposed as match,please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. 1 c. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when? Navy REPI easement $65,000 Yes No 2025 Yes No 2025 NWI Donations $31,000 Yes No 2025 Yes No 2025 NOTE: Fifty percent(50%) matching funds are required, and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation of property or a property right can be considered as a matching resource. Donation of resources for on-going maintenance or stewardship ("in- kind"contributions) are not eligible as a match. 2. To what degree has the project sponsor identified the long-term stewardship issues for the proposed project? 2 a. Identify any factors, threats, or stressors that could negatively affect the conservation values and/or community benefits for which the property would be conserved. The property needs work to help restore it to natural conditions.The residential site needs to be removed and the forest,which is mainly Douglas fir plantation and open areas, needs to be diversified and revegetated. 2 b. Describe the management strategies that the stewardship plan will include to address the identified factors, threats, or stressors, including any actions planned to make these negative outcomes or impacts less likely. As match to this grant, NWI is proposing to clean up the property and restore native vegetation where needed. Restoration includes removal of two trailers, cabin, shed, household debris, decommission septic system, remove utilities, decommission/decompact roads, and revegetate clear areas within native trees and shrubs, and control weeds. As part of the Stewardship Plan, NWI will also prepare a Forest Management Plan for the purpose of treating the plantation forest to restore diverse older forest species and stand structure. 2 c. Describe any existing water rights, and current uses of water. Identify any conservation values currently being protected that are dependent on these sources of water. 5 2025 CFF Program Application The property does not have a well or water rights.The resident currently gets water from roof runoff and the neighbor's hose. 3. To what degree has the project sponsor demonstrated effective long-term stewardship of a similar project? 3 a. Describe the sponsoring agency's previous or on-going stewardship experience. Northwest Watershed Institute is a nonprofit conservation organization that provides scientific, technical and on-the-ground support for watershed restoration and has been conducting habitat stewardship and restoration projects in the Tarboo watershed for over 20 years. NWI employs conservation biologists and professional restoration field crew and has extensive experience stewarding and managing the Tarboo Wildlife Preserve and private and state conservation properties using professional staff, experienced field crew, contractors, and volunteers. NWI forestlands are certified by the Forest Stewardship Council and NWI has completed several successful ecologically-based selective timber harvests in the Tarboo forest to date. 3 b. Has the project sponsor and/or applicant been involved in other projects previously approved for Conservation Futures Fund funding? No, neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures Fund funds. X Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures Fund funds. Please provide details: Yes. NWI has been involved in eleven previous successful Conservation Futures funded projects in the Tarboo watershed including nine conservation easement projects proposed jointly by NWI and JLT and two fee simple projects. NWI is now completing the West Slope Forest,funded in 2024 and planned for acquisition by June of 2025. 4. To what degree is the project a part of an adopted open space, conservation, or resource preservation program or plan that was open to public review and comment, or identified in a community conservation effort that provided opportunities for public input? The proposed acquisition: X is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort, that provided opportunities for public review and comment. Please describe below, including this project's importance to the plan. Please also reference the website of the plan if available or include the plan with this application. complements an adopted open space or conservation plan that was open to public review,but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. is a stand-alone project, or part of a project that was not open to public review. 6 2025 CFF Program Application The Property is within the approved boundaries of Washington State's Dabob Bay Natural Area. The boundary was established to identify the area where DNR and partners want to prioritize acquisition of private lands from willing owners for permanent conservation as part of the Natural Area. The Dabob Bay Natural Area boundary has been expanded three times since 2008 after extensive public hearings, scientific review, and with broad and strong public support. This parcel is included in the 2009 expansion after scientific assessment by DNR's Natural Areas biologists, several public hearings in Jefferson County, review and approval by DNR's Natural Heritage Advisory Council, and approval by the State Commissioner of Public Lands. Jefferson Land Trust's Jefferson County Conservation Plan (2010),that underwent public participation and review, generally identifies the Property as within a priority habitat conservation area. https://www.saveland.org/wp- content/uploads/2016/06/2010 JLT ConservationPlan LoRes.pdf The Property is more specifically included within the priority Dabob Bay area of the Tarboo Creek/Dabob Bay Implementation Strategy, a Sub-Plan of JLT's Jefferson County Conservation Plan (2010). The Property is a top priority in Northwest Watershed Institute's Tarboo Watershed Conservation Strategy to protect and restore lands within the recently expanded boundaries of the Dabob Bay Natural Area (Objective 2) and also fits within the Forestland protection objective (objective 3) http://www.nwwatershed.org/tarboo-watershed-conservation-strategy.html The proposed properties are within a priority terrestrial conservation area identified and mapped in the Willamette Valley-Puget Trough--Georgia Basin Ecoregional Assessment(2004 Floberg et al). This priority area includes much of the Tarboo and Thorndyke watersheds. The Ecoregional plan, developed by Washington Department of Fish and Wildlife and The Nature Conservancy, is one of the primary conservation plans for Puget Sound and has received extensive public and scientific review. 5. To what degree does the project conserve opportunities which are otherwise lost or threatened? 5 a. The proposed acquisition site X does does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 5 b. If applicable, please carefully describe the nature and immediacy of the threat, and any unique qualities about the site. The proposed acquisition will provide a significant conservation opportunity that will be otherwise by lost in the next year.The small property has outsized conservation value as an inholding surrounded on three sides by state protected land and is important to protect and restore forest and wildlife connectivity. If Conservation Futures grant funding is not secured,the property will be sold 7 2025 CFF Program Application for residential development,with impacts not only on the property but on surrounding protected lands, such as potential dog and cat harassment of wildlife, stormwater impacts to Discovery Creek, and spread of non-native plants and weeds to surrounding native forests. The seller is moving this summer and is giving NWI until June 30, 2025 to purchase the property under a signed purchase agreement (see Supplemental Materials).An NWI supporter has agreed to serve as an interim buyer to purchase the property (under NWI's purchase agreement assigned to them) and hold the property until October 2025 if needed to allow time for grant funding to be secured to purchase the property. 6. Are the conservation values of the project commensurate with or greater than the amount of CFF funds requested, and will both the timeframes for meeting project objectives and associated metrics demonstrate achievement of the conservation objectives? 6 a. Summarize the project's conservation values and how the CFF funds requested support these values. The project's conservation values are extremely high relative to CF funds requested because: 1) the property is a key inholding surrounded on three sides by protected lands and thus its fate has an outsized influence on conservation of the larger landscape, 2) match is provided for a portion of the acquisition costs and all of the cleanup and restoration costs. Conservation objectives of acquiring the property will be obtained by October of 2025. Cleanup and restoration will be completed within two years, by February 2027, to allow two planting seasons. 6 b. Summarize how the project's conservation values are related to the project's specific objectives. The project's conservation values of providing wildlife habitat and connecting corridor to adjoining protected lands, water quality protection for downstream Discovery Creek, cultural resources for local Tribes, outdoor education,forest carbon storage, and protecting biodiversity are well served by the project objectives which are to purchase the property for permanent conservation and restoration of older forest habitat. 7. To what degree does the project preserve habitat for flora and fauna other than habitat for anadromous fish species? 7 a. X provides habitat for State of Washington Priority Habitat specific to the project and/or State or Federal (NOAA and USFWS) Candidate, Endangered, Threatened or Sensitive species (provide list and references). 7 b. X provides habitat for native flora and fauna. Identify the documented habitat(s) and native flora or fauna species that will be protected by the project. 7 c. X contributes to a wildlife corridor or migration route identified by Washington Connectivity Working Group or other peer-reviewed source. 8 2025 CFF Program Application If affirmative in any of the above,please describe and list the Priority Habitat(s) and Threatened, Endangered, or Sensitive species below, and cite or provide documentation of species'use.' Priority and Listed Species (observed on-site or within 1 mile) Western toad (near) State Candidate and Federal Species of Concern Pileated woodpecker(on site) State Candidate Fisher (near) State Endangered Documented observations by Peter Bahls and Keith Lazelle, NWI Listed Species benefited downstream in Discovery Creek(WDFW data): Puget Sound steelhead State Candidate and Federal Threatened Hood Canal coho salmon Federal Species of Concern Documented in WDFW fish distribution mapping and NWI survey data Listed Species benefited downstream in Tarboo-Dabob Bay Hood Canal summer chum salmon State Candidate and Federal Threatened Puget Sound Chinook salmon State Candidate and Federal Threatened Documented in NWI's nearshore fish survey report- http://www.nwwatershed.org/uploads/pdf/tarbooFishSurvey.pdf Provides habitat for a variety of native flora and fauna The project is surrounded on three sides by permanently protected state lands, much of which is older diverse forest habitat. Protection of the parcel will protect help restore connected forest habitats that support a high diversity of at-risk fish, bird, amphibian, and mammal species that occur in Pacific Northwest forests, including western toad, amphibians, bats, bear, cougar, blacktail deer, and neo-tropical migratory birds. The 6-acre parcel is primarily 30-year old plantation forest, but includes a variety of forest types including alder and some older trees. Ecologically based thinning of plantation forest is proposed that will promote older forest habitat growth over time for potential use by at-risk species such as fisher and marbled murrelet. Wildlife corridor The property is a critical piece of long-term effort to protect a significant wildlife corridor from the headwaters of Tarboo Creek downstream and around Dabob Bay. Cougar and bear are frequently seen on the Toandos Peninsula and a recent camera trap survey study by Point No Point Treaty Council shows this Toandos area as having a high density of deer and cougar (see maps and photos). Western toads, seen in the area, seasonally migrate from wetlands to nearby forests.The proposed project will significantly benefit landscape scale wildlife conservation. 8. To what degree does the project protect habitat for anadromous fish species? ' See, for example, http://www.dnr.wa.gov/researchscience/topics/naturalheritage/pages/amp nh.aspx http://www.wdfw.wa.gov/conservation/phs/list/ http://www l.dnr.wa.gov/nhp/refdesk/plants.html http://www 1.dnr.wa.gov/nhp/refdesk/pubs/wa_ecological_systems.pdf 9 2025 CFF Program Application 8. Describe to what degree the project protects habitat for anadromous fish species (for example: marine shorelines, stream or river corridors including meander zones, and riparian buffers). Please provide documentation and maps that demonstrate the location, quality and extent of the existing buffer and adjoining habitat. The slopes of the Toandos Forest Property drain to a tributary of upper Discovery Creek, which is a salmon spawning stream and the second largest stream feeding Tarboo-Dabob Bay (see Maps). Protection and restoration of the property will prevent stormwater runoff, pesticides, septic waste and other contamination from reaching Discovery Creek or the downstream estuary. Most lands are now conserved within the watershed of Discovery Creek and the addition of this parcel will help secure long-term watershed level protection for native coho salmon, coastal cutthroat trout,fall chum salmon, and steelhead that occur in Discovery Creek. Anadromous Fish Species benefited in adjacent downstream Discovery Creek: Puget Sound steelhead State Candidate and Federal Threatened Hood Canal coho salmon Federal Species of Concern Fall chum samon Coastal cutthroat trout Western Brook lamprey Federal Species of Concern Listed Species benefited downstream in Tarboo-Dabob Bay(documented rearing habitat) Hood Canal summer chum salmon State Candidate and Federal Threatened Puget Sound Chinook salmon State Candidate and Federal Threatened 9. To what degree does the project preserve farmland for agricultural use OR preserve forestland for forest management? 9 a. Describe the extent and nature of current and planned agricultural use or forest management activities of the proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds. The forest will be managed for ecologically based sustainable forestry and to restore diverse older forest habitats. NWI will prepare a Forest Management Plan that meets FSC standards and that will involve thinning the 30-year-old plantation forest as needed to help restore older forest structure, function and species diversity, and to provide sustainable timber products as feasible. 9 b. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. NWI proposes to protect and help fully restore watershed functions, wildlife habitat, and water quality by: 1) Removal of all residential impacts, including trailers, cabin, unpermitted septic system, debris, and utilities, 2) De-compacting and decommissioning roads and residential areas as needed to improve infiltration and soil condition, and 3) Planting native trees and shrubs and controlling weeds as needed to revegetate the site. 10 2025 CFF Program Application 4) Conducting low impact selective thinning of the Douglas fir plantation as needed to help restore species and structural diversity to the forest. 9 c. Does this project preserve a mix of quality farmland and forestland? This specific project involves forestland and habitat protection and does not include agriculture. However, if the definition of agriculture is broadened to include native food foraging,the Property has excellent potential for gathering of black truffles and other edible mushrooms and deer hunting. In addition, although this property does not include agricultural lands,within the context of the large conservation effort for the Tarboo-Dabob Bay watershed, NWI,JLT, and partners are preserving a mix of agricultural lands,forestlands,wetlands, and wildlife habitats. 10. To what degree does this project increase resiliency to and mitigation of climate change, and is the project's scale significant in regards to increasing climate resiliency? 10. Describe how this project will increase resiliency to and mitigation of climate change. Is the project's scale significant in regards to increasing climate resiliency? Forests of the Pacific Northwest are among the best in the world for sequestering and storing carbon.The project proposal to protect and restore forest habitat will store significant amounts of carbon. Every acre of a 60-year old forest stores roughly the equivalent of 7 years of carbon emissions by the average American. In addition,the planned thinning of the plantation forest to help restore diverse older forest in terms of species and structure and will increase its resilience to forest fires, helping to mitigate climate change impacts. Finally,the property helps the county's resilience to the climate crisis by removing a residential property from the wildland-urban interface where a large fire would be catastrophic for residential uses. 11. What area does the project serve? 11 a. Describe how the proposed acquisition benefits primarily a local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. The proposed project benefits a broad county area because it is a key part of a conservation project that extends from the headwaters of Tarboo Creek to the state's Dabob Bay Natural Area to protect and restore habitats and wildlife connectivity on a landscape scale. In particular,the project will protect a critical "gap" in the 11,300 acre Dabob Bay Natural Area that will directly benefit the wildlife, biodiversity and safeguard water quality in downstream Dabob Bay,which has been recognized as a state and national priority for conservation due to its diverse estuarine habitats and valuable shellfish production. 11 b. Is the project located in an area that is under-represented by CFF funded Projects?Areas that Conservation Futures has not been able to support to date include, Toandos Peninsula, Dosewallips Valley, Bolton Peninsula, and the West End. Yes,the project is located on the Toandos Peninsula, an area under-represented by CFF funding. 11 2025 CFF Program Application 12. To what degree is the applicant committing to providing educational opportunities, interpretive opportunities, and/or serve as a general community resource that does not reduce the conservation value(s) of the project? 12. Describe the educational or interpretive opportunities that the applicant will provide for public access, educational or interpretive displays (signage, kiosks, etc.) on the proposed site, including any plans to provide those improvements and any plans for public accessibility that will not reduce the conservation value(s) of the project.2 Provide the time frames when each of the above will be implemented. The Property will serve as an important site for educating the public on forest protection and sustainable use.The site is easily accessible as a stop on NWI field tours and NWI plans to develop a foot trail system to host workshops,tours and other public events to expand understanding and adoption of forest restoration methods. As described in the letter from the Port Gamble S'Klallam Tribe,the Property will also serve an important educational purpose as a place for the Tribes to pass on traditions of sustainable gathering of forest plants used for cultural purposes and ceremonies. The Properties is also available for public access by prior permission, including deer hunting, berry picking, and mushroom picking,three important recreational uses in rural areas 13. To what degree does the project preserve historic or culturally significant resources-? 13. The proposed acquisition includes historic or culturally significant resources4 and is registered with the National Register of Historic Places, or an equivalent program. X is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. none of the above. If affirmative in any of the above,please describe below, and cite or provide documentation of the historical cultural resources. Please see letter from Laura Price, Cultural Resources Director for the Port Gamble S'Klallam Tribe, that attests to the importance of this Property for preserving and restoring cultural resources. The Port Gamble S'Klallam Tribe,Jamestown S'Klallam Tribe, Lower Elwha S'Klallam Tribe, and Skokomish Tribe are signatories to the Point No Point Treaty and retain the right to hunt and gather within their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to rely upon a diversity of intact native plant communities in the region, as they have for thousands of years, as places where they gather traditional food, medicine, and materials for use in all aspects of their cultural life, including social and religious. The project site's forests will provide resources for tribal uses, such as cedar bark for basket weaving. If funded,the project will permanently conserve the forest while allowing sustainable harvest and gathering to maintain tribal cultural traditions. 2 The words "education"and"interpretation" are interpreted broadly by the CFF Committee. Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. 12 2025 CFF Program Application Standalone 0 & M Projects 14. Applications for standalone Operation and Maintenance funding to be scored on a scale of 1- 100 based on information provided. Consider the CFF Manual and the topics below,for example: 14. Please describe in detail,the reason 0&M funds are needed,proposed 0& M activities,and how they protect resources cited in the original acquisition project. Attach additional information such as up-to-date stewardship plan,maps, field reports, work plan, budget, timeline, etc., to support the application, if appropriate. 0&M projects must address a compelling, immediate need. Specifically include whether the project has an up- to-date stewardship plan. If there is such a plan, is it being implemented and is the proposed 0&M work specifically included in the plan?Also, describe any unforeseen or urgent threats to the resource conservation values of the site and whether the proposed 0&M activities will mitigate those threats and/or prevent potential future threats. 13 2025 CFF Program Application Verification 15. Sponsor commitments: 15 a. Sponsors of projects that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved,or three years after the acquisition funds are disbursed to the applicant, whichever is later.The progress report must address any changes in the project focus or purpose, progress in obtaining matching funding, and stewardship and maintenance. Sponsors receiving 0& M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project"report card"that will be submitted annually to the Board of County Commissioners. 15 b. If this project is approved for funding, I understand the sponsor is required to submit progress reports for three years and for any year in which 0& M funds are expended. Initials k4 ;17#$bate 15 c. If, three years after the date funding is approved by the Board of County Commissioners, the project sponsor has not obtained the required matching funds,the Committee may request the Board of County Commissioners to nullify their approval of funds,and may require the project to re-apply. If this project is approved for funding, I understand that we may be required to re-submit the application if the project sponsor does not obtain the necessary matching funding within three years. Initials f.�.". Date 15 d. The applicant has reviewed all project requirements and all information in the application is accurate to the best of their knowledge. /7i Initials ? Date foV; 15 e. The sponsor commits to providing long-term stewardship to achieve the conservation and protection goals of the project as proposed in this application or as may be modified with recommendation of the CF Committee and approval of the BoCC. pa, Initials r j Date Zo2-S 14 2025 CFF Program Application I ' c .4.44,1' Tarboo Northwest Watershed Watershed Institute Assessment y^a Port Townsend Watershed Locator 1�4 l CV '. 4 I, N � f A `^-',-. ''-_ z ) 5 0 5 Miles 11Z ,, , y i G March 2004 L-_ c o '� 11-1-11 i/6 ram ;Proposed Tat-boo Watershed Project � Hoo�y��'�� ` Canal ����// t++ Olympic Quilcene r, �/ Bridge / I ()C"j Mountains - i a r. S 7 I - I / 1 '>'-' _�` °° t _ , - �t )i ° i 't Seattle 4 I Qrem ertori, — ,I _ _ t'l C Northwest Washington State 0. I r k,. Figure 1. Project location within the Tarboo Creek-Dabob Bay and Hood Canal watersheds. Tarboo Creek Watershed Dabob Bay Natural Area 2019 lidar Imagery (3 ft resolution) Projection: NAD 1983 atershed boundary State Plane Wash, North 0 0.75 1.5 3 I 1 1 1 1 1 l 1 I Miles �411 Road ww • Lakes Northwest Streams Watershed Institute dirofr Rare Forests Rare Forest EO—Confirmed Rare Forest EO—Possible f 2020 P• arcels ` NW Watershed DNR Natural Area WDWF Critical Habitat Preserve 4 , County Park DNR Trust Lands Rayonier Under Appraisal _ss Other-Private o Other-Public ry. Easement Type Conservation Easement DNR Aquatic Land Public Private Northwest Watershed Institute Unknown 1a Land Boundaries Current Dabob NA Boundary Proposed Dabob NA Boundary Figure 2. Project location within the -Dabob Bay Natural Area (orange and magenta lines). d I ....—i • lll...rrr��. wid.Y ' 4. .N . '....— : 1 1 I .03.. _1„, ___1,,,:,_.,,....7.7,,,' .,, a , ..r,tlit i # x "` sib. se- Irv' Figure 3. The proposed Hough property acquisition is surrounded on three sides by state protected lands. r Y up � jj w ,0„ 706.=;"roposed Project..=. . Ea -�� . nit r $ .. ..r,a I °, ,,530045: iti 'w k „ fi '� '157008'r- idX' ... 1 , P ..*. �+-4'../ S 4w+ - , -um. ..- �, Y.,. , k o -__ ,;HZ, 47.83'Gc '...oil ' Authenticated Maxar'Jefferson Count,WA.P '.- A Associate Figure 4. Property includes critical areas(slight unstable slopes) and drains to Discovery Creek. ,. -reY F f _ - , I yx i 'yyp- : rA • . . �yyy +. t s limit kx , „. , , , t l' ,': - ,,,,, '' : f f t, f la th€,.;4 i n 3> t l„"A #i •.t f P 1 V Ft" r F ;, �, ; , -- ` �.e .g : t{f -. ws '�,.d' , t 4 C x0,y '4' -, �,� .- Err:. - - . 'fir• "r . Figure 5. Tom Hough, property owner, and Peter Bahls, NWI, at entrance to property. p .,t..� r •w ; �, t ` aid 1'xw , < ...., ,, r ...,,,,I.,--,......t { it r � • _ y 1.. , yt,;„; i , t. i+,4 ram} iii$$$ 1i. .4 <; �6,—.-.� ; = r ' R , t t. * _.� t * ; ,-1,V', - '4 ..", ' ''' . '4,i,.; 44 plif,...%.. 1 4 .4,t,;-, ,..f. 6. t k ; c' ' `f f ,I ft* sf`+` `� [ iiI -ti` /j S} ., t y. y y� ""1 ., d`R 7 ,.T F -i .F ryy ,T ��t 4 ' _ tilliAlit r S'` ' ?. ' "' • is ' may, i et A d .4" .+ -`-tom- "•++rRP fin: , 49 4-44›. ., -AAA~ m - a �� .4,1 '�- ram' H` ..: '.° � .... ... - s. a ,. . .w _ ro , crx, �%=. Figure 6. Some older native conifer forest occurs on property. 1 `' V I i,, : • �� 6* * 8, 4 �,,�.�l 1 ti+'7' � se x .*' .- # 4 ,- V a' ' :' ., v , ,` S j ,+ � 4 {. 'i _4,4fir. '`' t d yl "+! -t� .KY s °�' S6 iit ml ,.,. 1 yea, ° !�� �` � 1 ,._. 04 F- 4... 47, -t,....:(„::7 ,,. se ..."..4 i. .1.,....-0.--:.„ 4',..1,37, ; : .-.$ N.,. , ' ss,,, ii 1 i > w ,fir <ty 1 14} di ,i<4 .t ¢ ,- 1;''. a ` 7. , `� fir' „` .. • Figure 7. Property surrounded by state Natural Area protected forests. ti44C,';,,ItJ f 4 AXE • 1) a ;:Y ' , P am. filif v, e Figure 8. Alder forest on property. - ,. - " a '.fi u m v Figure 9.Young conifer forest on entrance driveway to property. 'iitt.....,..1''''' • 1-- - .'...---......„. , ........„ ,..,....... .4,,,,,,44: ..„......„ Y Y..' .:� r w• ,;r•w• � .. . .y�,1 ,w a.. �,s a .,,,,,,... 3a2s °, ;* l • j 3tt h1 : it a ' - .,• f t 4_ St } * i 3 a;f,' y ,. 11.9 _ ;'ram +: .a+, _ V•s K A 9R an 3r r i 3t Figure 10. Open areas on property proposed for re-vegetation. ' 4 '. Y. 1 i ry I R^6 .�f #. € M ! {1/.*.. I 4, r� Itf. Figure 11. Cabin/trailer and cleared areas of the Property proposed for restoration. :., I. , ,,,, .,°.'''.,"'," ."/ //--".0'..i.'4. • , :•711,1,„ II et,,........ p, • ............-4, : , :.--.... f,.:;?" .0. ''Z'.....,, E,-"iiike-•••.. ,;-'71r , .-•,,74,1111,44 t 0 .„, „ Ilii .: .. Y,} 9 1f pT1 ,4 1 JFjy n 7', ., tk ,a `ram ti ^' Bc. eL f,X rF Figure 12. Cabin/trailer on property proposed for removal. >: ^ A. ,, . ' ,, ,"` ,. + -a x ice:: _ ,.w ; . ,..,�i'r. S" a "' ► ,« ' ;' t n '� k s '"fir` ,, „A.,.., ^,- _. 'aIa.a t " k M $ 1. k y,� �{f: Gl" �•$' yQ .n .. .sAF:... ♦ r t , 3Y ys ,„.„,,.:,;,,w,":",;;..t.-,,'";;',7'.4-Z:iit7,-4 .. ,,,' '-'"-* ....,..,,-,.,:- .--,.=':•' - ,'.,.. _ ,'_ __ - ,, ,,,, _, ,,-, - „, . r. Figure 13. Young forest on the property. k x. P ,-e-,: ;, .A41‘44-' ' . - ..4......_. �+� fir �. b sr � ,'_ y ' � _�,,, • -t �!" I ru... . `t .. 611..._ ,,, \' ,11 ^t,< ^e w, r,'^' -ems"` �. . 4 . _ . .,,,,,i, .,,, s'�.-'-+y' '�-• ;* 00$4��v'tt_,-. ' ` -. fi i.'ty r kr ( mod,a.`tL,.. .2• ,...x, s Y. a a k ..99it"" ! . • ._ ya"VW .. .ur', + is -d . r:. • = +.. •�, ^ .1M+"'4 r •ti • mod. • r y 4 ' 874.6.' . ' , . ' " ''. :- / — ' ' Cougar at Fisher bait station less than 1 m• ile away Figure from property. . `0, 14. *" - 4r i/ f. __ ..,_ ,, ... _ .,„ ,,,„ .. .c., ,,, „.. -- .. ,, ,,, .4,..„-,,,.. ,, _,„1-,t, r ,.... __... ,,,,,-, ,.. ,.. ; r- ,. ,, ., I. , , .. 1 ft. , 1 Photo by John Jacobson Figure 15. A fisher, shown here in Olympic National Park, was spotted by Keith Lazelle on Toandos Road within one mile of the property several years ago. 2020 Camera Grid-Cougar Density • 2020 Cameras 2020 Approx.Density °cages t t so ays "°"°""�°°"" Figure 16. Cougar density heat map.The dillt cam,too days • it—y.04 days Toandos Peninsula has a high density of t "°'g"'2°°a" wildlife and is important as wildlife corridor. . �+ • •• • From Dylan Bergan, wildlife biologist, Point • ' No Point Treaty Council. • • - • ' • • • • • % • • — • • • 10. i _ • • • i j • • ,„00.04r • • • • "se • 1 • • 2020 Camera Grid-Fawn Density Lai • 2020 Cameras 2020 Approa.Denary ```- 0tawns"t00a" 'x; .'. tlewnt tOO a" 1 : ? imi t4wn'3paos Figure 17. Fawn density heat map.Another t t,�an t°a" t„�� „ayz example of wildlife abundance around ti x Dabob Bay. .r* •• • • :• T: _ • • `fir: i • • , ' • • • • if • • ) ,,, . • • "0 225 s5 9Mtn r, 1 e r t Jefferson County Conservation Futures Proposal 2025 Upper Yarr Creek Acquisition Project SUPPLEMENTAL MATERIALS Proof of willing seller: See narrative, project sponsor proposing to sell deed restriction to property already owned by NWI. Estimate of value: No appraisal required. Requesting $20,000 or less. Site location map: See separate PDF, maps and photos Critical areas map: See separate PDF, maps and photos Project boundary map: See separate PDF, maps and photos Color images: See separate PDF, maps and photos Development plan or Narrative: NA Proof of 501c3 status Current budget: 2024-2025 Board roster: 2024-2025 Staff roster: 2025 Financial statements: last fiscal year July 2023-June 2024 Resolution to submit proposal: NWI executive committee resolution Cultural Resources letter from Port Gamble S'Klallam Tribe, Feb 27, 2025 AGREEMENT FOR CONTINGENT PURCHASE AND SALE OF VACANT REAL ESTATE (Dabob Bay Natural Area-Hough) THIS AGREEMENT FOR CONTINGENT PURCHASE AND SALE OF VACANT REAL ESTATE (the "Agreement") is made as of the l544)-day of Nova m\o , 2024 , by and between the NORTHWEST WATERSHED INSTITUTE, a Washington non-profit corporation and/or assigns (hereinafter referred to as the "Buyer") and THOMAS J. HOUGH, as his separate estate,(hereinafter referred to as"Seller")(collectively,the"Parties"). WHEREAS, Seller is the owner of certain real property consisting of approximately 6.38 acres at 1125 Toandos Road,Quilcene in Jefferson County,Washington; and WHEREAS, Seller desires to convey said real property to Buyer, and Buyer desires to acquire said real property; NOW, THEREFORE, in exchange for the mutual promises and covenants herein contained, and other good and valuable consideration, the mutual receipt and sufficiency of which is hereby acknowledged by Seller and Buyer, it is agreed as follows: SECTION 1 PROPERTY Seller shall sell and convey to Buyer, and Buyer shall purchase and accept from Seller, all subject to the terms and conditions of this Agreement, that certain real property located in Jefferson County, Washington, the legal description of which is set forth on Exhibit A attached hereto and incorporated by this reference herein,together with the following: (i) All rights, tenements, hereditaments, easements, associated tidelands, and appurtenances, including, but not limited to, any rights, title and interest of Seller in and to all trees,crops, oil, gas,sand, gravel, water rights,or mineral rights; (ii) All improvements, if any, and other items located upon or within said real property; (iii) All easements, rights-of-way and other rights used in connection with said real property, including but not limited to the following: maintenance easements, rights to adjacent streets, roads,alleys and rights-of-way; (iv) All permits, plans, licenses, surveys, consultant's reports on all matters, including Purchase and Sale Agreement 1 of 15 Dabob Bay Natural Area Hough but not limited to soils, engineering, traffic, environmental matters, and wetlands made by, for or on behalf of Seller with respect to the property, and an assignment of all representations and warranties made therein to Seller. The parcel of land, together with the improvements, rights and interests described above, are collectively referred to herein as the"Property." SECTION 2 PURCHASE PRICE 2.1 Amount. The purchase price ("Purchase Price") to be paid for the Property shall be the greater of the sum of ONE HUNDRED AND TWENTY THOUSAND U.S. Dollars ($120,000.00) or the Fair Market Value of the Property as determined by a qualified appraiser in an appraisal commissioned and paid for by Buyer. If the Fair Market Value exceeds $120,000, the Parties agree to amend this Agreement to make such amount the Purchase Price. Buyer's obligation to purchase the Property is contingent on the availability of funding to the Buyer. If Buyer does not obtain sufficient funding to purchase the Property and complete the Agreement prior to the closing date, then Buyer may terminate this Agreement without further obligation other than loss of its Deposit as provided herein. 2.2 Earnest Money Deposit. Within ten (10) days following the execution and delivery of this Agreement, Buyer shall open escrow with First American Title of Jefferson County in Port Townsend, Washington (the "Escrow Agent"), by depositing with Escrow Agent a copy of this Agreement and the sum of One Thousand Dollars ($1,000.00) (the 'Deposit"), in the form of a personal check payable to Escrow Agent. In the event that this transaction is consummated as contemplated by this Agreement, the Deposit shall be applicable to the Purchase Price. In the event that this transaction is not consummated as contemplated by this Agreement, the Deposit shall be returned to Buyer; provided, however, that in the event that this transaction is not consummated as contemplated by this Agreement because Buyer has not obtained sufficient funding to purchase the Property,the Deposit shall be paid over to Seller. 2.3 Payment. Purchase Price shall be paid into escrow by a Buyer warrant or wire transfer payable to the Escrow Agent on the Closing Date as defined below. 2.4 Compensating Tax. If the property is in forest land designation under chapter 84.33 RCW, this transaction is exempt from the payment of compensating tax as provided by RCW 84.33.140 (13)(c), or if the property is in open space, agricultural, or timberland classification under chapter 84.34 RCW, this transaction is exempt from the payment of additional tax as provided by RCW 84.34.108(6)(f). SECTION 3 CLOSING 3.1 Closing Date. "Closing," "Closing Date" or "Date of Closing" as those terms are used herein, shall mean the date upon which all documents are recorded and monies paid to complete Purchase and Sale Agreement 2 of 15 Dabob Bay Natural Area Hough the purchase contemplated herein. The Date of Closing shall be as soon as practical to facilitate an orderly closing but no later than June 30, 2025 unless otherwise agreed in writing by the Parties. 3.2 Escrow. This transaction shall be closed in escrow at First American Title of Jefferson County, 2424 S. Park Ave, Port Townsend WA 98368 ("Escrow Company"), which shall be arranged by Buyer within ten (10)days of execution of this Agreement. The Parties shall deposit the necessary documents and funds in escrow sufficiently in advance of the Closing Date to facilitate an orderly closing. Buyer and Seller shall each pay one-half of the Escrow Company's fee. SECTION 4 CONVEYANCE,TITLE INSURANCE,AND POSSESSION 4.1 Possession. Buyer shall be entitled to possession of the Property on the Closing Date, but Buyer shall have a right of entry pursuant to Section 5 below. 4.2 Form of Deed. On the Closing Date, Seller shall convey title to the Property to Buyer by Statutory Warranty Deed, free and clear of all assessments, monetary liens or encumbrances securing the payment of money, and subject only to any other encumbrances or defects accepted by Buyer in writing. 4.3 Preliminary Commitment. (a) Seller has obtained a preliminary commitment for an ALTA Owner's Standard Coverage Policy of title insurance (hereafter "Preliminary Commitment") from First American Title of Jefferson County. Seller further warrants that title shall be good, marketable and insurable subject only to the exceptions approved by Buyer pursuant to subsection 4.3(b). (b) Within thirty (30) days of execution of this Agreement, the Buyer shall notify the Seller in writing of any exceptions thereto which are wholly or conditionally acceptable to the Buyer (hereafter "Title Notice"). Following giving of Title Notice, if additional encumbrances affecting the Property arise, Buyer shall have twenty (20) days from receipt thereof to review and approve these additional items. Failure of the Buyer to so approve in writing any exception to Seller's title shown in the Preliminary Commitment or arising thereafter shall be deemed to be a disapproval of such exception. Purchase and Sale Agreement 3 of 15 Dabob Bay Natural Area Hough 4.4 Policy Condition of Closing. Seller shall, prior to or at the Closing Date, at its sole cost and expense, undertake (by the exercise of its reasonable efforts and with due diligence) to remove, eliminate or modify any exceptions not acceptable to Buyer. Closing shall be conditioned upon Title Company issuing its ALTA Owner's Standard Coverage Policy insuring fee title to the Property in the name of Buyer in the amount of the Purchase Price, subject only to (i) the printed form exceptions contained in the ALTA Owner's policy and (ii) such exceptions accepted by Buyer. 4.5 Use of Purchase Price. Purchase Price to be paid by Buyer to Seller at Closing may be used in whole or in part by Seller by and through the Escrow Company to remove any liens, liabilities,or encumbrances which Seller is to have removed. 4.6 Cost of Policy. Seller shall be responsible for the cost of the title insurance policy. Buyer shall be responsible for requesting and for paying the cost of any additional endorsements, co- insurance policies and reinsurance certificates issued by Title Company at Buyer's request. SECTION 5 BUYER'S RIGHT AFTER ACCEPTANCE 5.1 Inspection Contingency. After the date of this Agreement, Seller shall permit Buyer and/or its designated agents to enter upon the Property at all reasonable times for the purpose of conducting environmental assessments and investigating the Property and the physical condition thereof, including, without limitation, soil, water, and air conditions, and the condition of improvements, if any, upon the Property. Inspections by Buyer, if any, shall not be construed as estopping actions upon any warranty made herein. 5.2 Buyer's Waiver of Disclosure Statement. Buyer and Seller acknowledge that the Property may or may not be considered "commercial real estate" as defined in Chapter 64.06 RCW, and hereby waive all rights, obligations, and remedies (including, without limitation, the right of rescission) which may be applicable or available to the parties hereto. Buyer acknowledges that Buyer has been advised of Buyer's right (to the extent applicable to the subject transaction) to receive a completed Seller Disclosure Statement pursuant to Chapter 64.06 RCW and that Buyer hereby waives that right, whether or not applicable, provided, however, that Seller shall complete and deliver to Buyer Section 6 (Environmental) of the Seller Disclosure Statement relating to the Property within five (5) days after the execution and delivery of this Agreement. 5.3 Studies. (a) Seller Studies. Within five days of the date of this Agreement, Seller shall deliver to Buyer true copies of all studies, reports, surveys, soils tests, reviews, correspondence with all governmental entities, environmental checklists and reports, plans and other printed or written material (all of which are collectively referred to as the "Seller's Studies") prepared or received by, or on behalf of, Seller with respect to the Property and Purchase and Sale Agreement 4 of 15 Dabob Bay Natural Area Hough any part thereof. Seller authorizes Buyer to speak with any person preparing Seller's Studies with respect to the contents thereof. Buyer shall not be responsible for any cost associated with Seller's Studies, except for the cost of any additional inquiry or investigation that Buyer deems necessary with respect to the Seller's Studies. (b) $uyer Studies. Buyer shall have the right to prepare, or have prepared, appraisals, market and engineering studies, soils tests, feasibility studies, surveys, resurveys or survey updates, environmental investigations and such other tests, studies or investigations (all of which are collectively referred to as the "Buyer's Studies") with respect to the Property. Buyer shall be solely responsible for costs of all Buyer's Studies. (c) Termination. If the Buyer determines at its sole discretion that the Seller Studies or Buyer's Studies indicate the Property is not suitable for the intended use by Buyer or the Property presents risk of liability unacceptable to Buyer, Buyer may terminate this Agreement without further obligation so long as such termination is provided to Seller in writing within 120 days of this Agreement If no such notice is provided to Seller, Buyer's inspection contingency shall be deemed waived. Should Buyer timely terminate this Agreement under his Inspection Contingency, Buyer shall be entitled to a refund of any earnest money funds paid into escrow. 5.4 Subsequent Acts. Between the date of this Agreement and the Closing Date, Seller shall maintain the Property and keep the Property in condition at least as good as on the date of this Agreement. Seller shall not remove any timber, harvestable crop, improvements, minerals, sand, gravel, or other item from the Property after the date of this Agreement without prior, written approval by Buyer. At least ten (10) calendar days prior to the Closing Date, Seller shall have removed all junked vehicles, mobile homes,outhouses,temporary structures or personal property that are not intended to be a part of this transaction, and equipment, machines, other solid waste and trash from the Property to the satisfaction of Buyer. SECTION 6 CONTINGENCIES 6.1 Conditions. Buyer's obligations under this Agreement are subject to and contingent upon the following: (a) The truth and accuracy as of the Closing Date of all representations and warranties of Seller set forth in this Agreement or in any instrument or document delivered by Seller to Buyer. (b) The delivery by Seller to Buyer on or prior to the Closing Date of all documents and instruments required by the terms of this Agreement (c) The performance on or prior to Closing by Seller of all acts required under this Agreement. Purchase and Sale Agreement 5 of 15 Dabob Bay Natural Area Hough (d) The absence at Closing of any violation of any federal, Buyer or local law, rule, regulation or ordinance affecting the use, occupancy or condition of the Property. (e) The absence at Closing of any failure to comply with the order of any court, government authority or agency pertaining to the Property or the use, occupancy or condition of the Property. (f) The absence at Closing of any proceeding or threat of any proceeding to condemn all or any part of the Property by a proceeding in eminent domain. (g) Conveyance of acceptable title as provided in Section 4. (h) Approval of Seller's and Buyer's Studies pursuant to subsection 5.2. (i) The availability of funding to purchase the Property and complete the Agreement. 6.2. Waiver. If any condition specified in Section 6.1 is not met at Closing,Buyer may waive such condition in writing, or Buyer may terminate this Agreement without any further liability, subject to paragraphs 5.2 and 2.2. Upon such termination, the Deposit and any monies deposited by Buyer pursuant to this Agreement, together with all interest earned thereon shall be promptly returned to Buyer; provided, however, that if the termination is due only to the unavailability of funding to purchase the Property and complete the Agreement, the Deposit, together with all interest earned thereon, shall be paid over to Seller as liquidated damages and as Seller's sole remedy and not as a forfeiture or penalty. Upon disbursement of the Deposit by the Escrow Agent as provided herein, neither Buyer nor Seller shall have any further liability to the other under this Agreement, except for all indemnity provisions set forth herein which shall survive for such term as provided for in this Agreement SECTION 7 REPRESENTATIONS AND WARRANTIES Seller makes the following representations and warranties to Buyer. Each of these representations and warranties is material and is relied upon by Buyer. Each of the representations and warranties shall be deemed accurate through Closing and shall survive Closing. 7.1 Title. Title to the Property is vested in Seller. 7.2 No Liabilities. There exists upon the Property no condition which is in violation of any statute, ordinance, regulation or administrative or judicial order or holding, whether or not appearing in the public records pertaining to the Property. 7.3 Correctness. All information furnished by Seller to Buyer with respect to the Property is Purchase and Sale Agreement 6 of 15 Dabob Bay Natural Area Hough accurate and true. 7.4 Litigation. To the best of Seller's knowledge, there is no pending or threatened litigation affecting the Property or any portion thereof, including but not limited to alleged violation of federal, Buyer or local environmental laws. Neither Seller nor its predecessors have received any notice relating to a breach or suspected breach of any environmental laws. 7.5 Condition of Property. To the best of Seller's knowledge, Seller represents and warrants the following: there are no apparent or latent defects in the Property; the Property does not contain any underground storage tanks, surface impoundments, asbestos or asbestos-containing material, or polychlorinated biphenyls (PCBs) or PCB-containing materials, past or present refuse dump sites, chemical storage sites, areas of heavily stained soil, or sites of known hazardous material releases other than those indicated and described by exhibit attached hereto; and the Property is free from the presence of hazardous waste or materials and no hazardous waste or materials have been generated, stored, released, disposed of, or transported over, on or within the Property. The term "hazardous waste or materials" includes any substance, waste or material defined or designated as hazardous, toxic or dangerous (or any similar term) by any federal, Buyer or local statute, regulation, rule or ordinance now in effect, including but not limited to the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601, et seq., and the Model Toxics Control Act, RCW 70A.305D. Seller has no undisclosed knowledge of any fact or condition that would materially impair the market value of the Property, would materially increase the cost of operating the Property or would be inconsistent with the terms of this Agreement. 7.6 Authorization. Seller has the right and authority to enter into this Agreement and all documents contemplated by this Agreement, to make the representations and warranties set forth herein and to perform this Agreement in accordance with its terms. Neither the execution of this Agreement nor its performance by Seller will conflict with or result in the breach of any mortgage, deed of trust, encumbrance, restriction, covenant, agreement or other undertaking whatever. 7.7 Vacancy. No one is presently occupying the Property, either with or without Seller's permission. SECTION 8 INDEMNITY AND HOLD HARMLESS Seller agrees to indemnify, defend with counsel acceptable to Buyer, and hold harmless Buyer, its agencies, employees, officers and agents from (a) all liabilities, losses, claims, demands, damages, assessments, costs and expenses(including reasonable attorneys' and consultants' fees) of every kind (hereafter "Liabilities") resulting from, arising out of or relating to the breach by Seller of any of its warranties, representations or covenants contained in this Agreement and (b) all Liabilities arising under, resulting from or arising out of any activities of Seller, its agents, employees, contractors, subcontractors, permittees, or licensees at the Property prior to or at Purchase and Sale Agreement 7 of 15 Dabob Bay Natural Area Hough Closing, including but not limited to the use, disposal, transportation, generation, or sale of hazardous material as defined in subsection 7.5. SECTION 9 DESTRUCTION OR CONDEMNATION Seller shall bear the risk of loss prior to Closing. If, on or before the Closing Date, either the Property is materially damaged, or condemnation proceedings are commenced with respect to the Property, Buyer shall have the right, at its sole election, by giving notice to Seller, either to terminate this Agreement or to purchase the Property in accordance with this Agreement. If Buyer elects to terminate this Agreement, all rights and obligations of Seller and Buyer shall terminate. If Buyer elects to purchase the Property in accordance with this Agreement, Buyer shall be entitled to all insurance proceeds or condemnation awards payable by reason of such damage or condemnation. In the event there is no insurance or inadequate insurance to cover the damage, Buyer shall be entitled to a reduction in the Purchase Price equal to the market value of the Property destroyed or damaged. Seller shall immediately give notice to Buyer upon the occurrence of any damage to the improvements on the Property or the initiation of any condemnation proceedings affecting the Property. The term "material damage" as used in this section shall mean any damage or destruction that cannot be repaired or replaced within ninety (90)days. SECTION 10 CLOSING AND CLOSING COSTS Prior to or on the Closing Date, Seller and Buyer shall deposit the following documents and funds in escrow, and the Escrow Company shall close the escrow in accordance with the instructions of Buyer and Seller consistent with this Agreement: 10.1 Seller Obligations. Seller shall deposit the following: (a) duly executed and acknowledged Statutory Warranty Deed conveying the Property to Buyer and a Real Estate Excise Tax Affidavit; (b) escrow instructions, as required of Seller to close this transaction in accordance with this Agreement; (c) if Seller is a corporation or partnership, a certified resolution authorizing the execution of all documents delivered at the Closing; (d) pursuant to Section 1445 of the Internal Revenue Code of 1986, as amended, a nonforeign affidavit, stating that Seller is not a foreign person and providing Seller's United Buyers taxpayer identification number. If Seller is not able to certify that it is not a "foreign person," Buyer is authorized to withhold a portion of the purchase price at closing for U. S. Income Tax purposes; and Purchase and Sale Agreement 8 of 15 Dabob Bay Natural Area Hough (e) such other instruments or documents as may be required pursuant to the provisions hereof or as mutually agreed by Seller and Buyer to be necessary to fully consummate the transaction contemplated hereby. 10.2 Buyer-Obligations. Buyer shall deposit the following-. (a) The Purchase Price; and (b) such other funds and documents, including without limitation, escrow instructions as are required of Buyer,to close the purchase in accordance with this Agreement. 10.3 Prorations. All rents and other income, if any, and water, sewer, utility and maintenance charges, and any other expenses with respect to the operation of the Property shall be prorated between Seller and Buyer as of the Closing Date, and to the extent information then available, such proration shall be made as of the Date of Closing. Such proration shall be adjusted and completed after the Closing Date as and when complete information becomes available, and Buyer and Seller agree to cooperate and use their best efforts to complete such prorations not later than sixty (60) days after the Closing Date. No insurance prorations shall be made. Seller shall pay any assessments charged against the Property in full prior to or at Closing. Seller shall pay all real estate taxes and personal property taxes, if any, through the Date of Closing. In the event Seller has prepaid any real estate taxes, Seller may seek a refund from the appropriate county official; Buyer shall have no obligation to refund or pay any such amount to Seller. Seller shall pay any real property excise tax due, and the cost of any revenue stamps, if applicable, required to complete this transaction. Buyer will pay recording fees. SECTION 11 SURVIVAL The representations, warranties, indemnification and obligations (to the extent such obligations are not fully performed at closing) contained herein are intended to be operative after delivery of Seller's deed to the Property in order to be fully effective and shall be deemed not to have merged in the deed. SECTION 12 REAL ESTATE COMMISSION Seller shall pay any real estate commission payable in connection with this transaction. Any real estate agent or broker acting in this transaction shall be deemed to be the sole agent of Seller. SECTION 13 NOTICES All notices required or permitted to be given hereunder shall be in writing and shall be deemed given upon personal service or receipt after deposit in the United Buyers first class mail addressed as follows: Purchase and Sale Agreement 9 of 15 Dabob Bay Natural Area Hough To Seller: Thomas J. Hough 1125 Toandos Road Quilcene, WA 98376 With copy to Barbara Hough-Hood by email to bhood1996@gmail.com To Buyer: Peter Bahls, Director Northwest Watershed Institute 3407 Eddy Street Port Townsend, WA 98368 The foregoing addresses may be changed by written notice. SECTION 14 MISCELLANEOUS 14.1 Entire Agreement. This Agreement constitutes the entire agreement between the Parties. No other prior and contemporaneous negotiations, understandings and agreements, whether oral or written shall be deemed to exist or bind any of the Parties hereto. 14.2 Binding Nature. All rights and obligations arising out of this Agreement shall inure to the benefit of and be binding upon the respective successors, heirs, assigns, administrators, executors and marital communities, if any, of the Parties hereto. 14.3 Washington Law. This Agreement shall be construed, interpreted and enforced pursuant to the laws of the Buyer of Washington. Venue shall be in Jefferson County, unless this Agreement is assigned to a state agency in which case venue shall be in Thurston County. The terms of this Agreement shall be given their ordinary meaning and shall not be presumed construed in favor of or against either party hereto. 14.4 Time of the Essence. Time is of the essence of this Agreement. No waiver or consent to any breach or other default in the performance of any of the terms of this Agreement shall be deemed to constitute a waiver of any subsequent breach of the same or any other term or condition hereof. In the event time for performance falls on a weekend or legal holiday designated by the United Buyers or Washington Buyer, performance shall be deemed to be timely rendered if so rendered on the next business day. 14.5 Captions. The captions and section headings hereof are inserted for convenience purposes only and shall not be deemed to limit or expand the meaning of any section. Purchase and Sale Agreement 10 of 15 Dabob Bay Natural Area Hough 14.6 Invalidity. If any provisions of this Agreement shall be invalid, void or illegal, it shall in no way affect, impair or invalidate any of the other provisions hereof. 14.7 Counterparts. This Agreement may be signed in counterparts, any one of which shall be deemed an original. 14.8 Date of Agreement. The date of this Agreement shall be the date on which the last party executes this Agreement. Said date shall be inserted on the first page hereof when such date is determined. 14.9 Good Faith. Both Parties shall act reasonably and in good faith in order to consummate this transaction, and Seller shall neither sell nor dispose of any of the Property nor cause or suffer the creation of any matter of record, or defect in the title to the Property for the purpose of avoiding its obligation to close. 14.10 Default. In the event that either party defaults in the performance of any of that parry's obligations under this Agreement, the non-defaulting party shall have all remedies available in law or equity,but neither party shall be liable for consequential damages. 14.11 Attorneys' Fees and Costs. If either party is required to retain an attorney to bring suit or seek arbitration to interpret or enforce any provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, paralegal fees, accountant and other expert witness fees and all other fees, costs and expenses actually incurred and reasonably necessary in connection therewith, including those incurred on appeal, in addition to all other amounts provided by law, regardless of whether the matter proceeds to judgment or is resolved by the defaulting party curing the default. 14.12 Assignability. This Agreement shall not be assigned without the prior written consent of the other party except as otherwise provided in this Agreement. Seller may wish to gain certain tax benefits available to Seller under I.RC.§1031 by using a qualified intermediary to facilitate a delayed exchange for the Property to be conveyed under this Agreement. The qualified intermediary shall be released from any obligations under this Agreement. Seller shall remain fully liable to perform all obligations under this Agreement, including but not limited to Seller's representations, warranties and indemnification regarding the Property. Seller shall convey the Property directly to Buyer. The success or failure of the anticipated tax consequences from the I.R.C.§1031 delayed exchange shall not be deemed a term, condition, or contingency of this Agreement, nor shall such tax consequences be deemed a legal excuse for nonperformance by Seller. 14.13 Advice of Counsel. Seller acknowledges that it has had an opportunity to seek independent legal advice regarding the transaction. 14.14 Submission. This Agreement must be executed by Seller, and an original delivered to Purchase and Sale Agreement 11 of 15 Dabob Bay Natural Area Hough Buyer, at the address set forth in this Agreement, on or before 4:00 p.m. on February 9, 2024, to be considered by Buyer. This Agreement shall not be binding upon Buyer until signed by an authorized representative of Buyer. IN WITNESS WHEREOF, the Parties have executed this Agreement the date and year set forth opposite their respective names. SELLER: Thomas J. Hough • du 1 Dated: , 6,/-1 C L U J /Z BUYER: NORTHWEST WATERSHED INSTITU I'L Dated: fVb(/ 20 2`7 By: pa-3,z_ PETER BAHLS Executive Director INDIVIDUAL ACKNOWLEDGMENT STATE OF WASHINGTON ) ss. COUNTY OF JEFFERSON ) On this/5' -day of dvnw-t nAt,!2024, before me personally appeared THOMAS J. HOUGH, to me known to be the person that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said person for the uses and purposes therein mentioned. Purchase and Sale Agreement 12 of 15 Dabob Bay Natural Area Hough Dated: N ri ve_m�, r I-i nil V Notary Public Print Name vnn(1 C`. ' u.,i --) ANNA C BROWN My commission expires z-— 2 Notary Public State of Washington Commission # 77938 My Comm. Expires Jun 22, 2025 (Use this space for notarial stamp/seal) Purchase and Sale Agreement 13 of 15 Dabob Bay Natural Area Hough BUYER ACKNOWLEDGMENT STATE OF WASHINGTON ) ) ss: COUNTY OF JEFFERSON ) On this 204/Clay of /tiOV ,&c7, 2024, before me personally appeared PETER BAHLS, to me known to be the Executive Director of Northwest Watershed Institute that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that the execution of the instrument was duly authorized and that the seal affixed, if any, is the corporate seal of said corporation. In witness whereof I have hereunto set my hand and affixed my official seal this7iU'day of C v\ . :r- 2nz `\\ ,_0ARI • A••g01mbe I74•c's\-c Nota Public . �yOQ �- •(• Print ame - c� NOTAio Nm +.. _ cPN _ My commission expires ng- lz 2.c2zcr, • A 13. • UBLIG �N• //min limo (Use this space for notarial stamp/seal) Purchase and Sale Agreement 14 of 13 Dabob Bay Natural Area Hough EXHIBIT A Legal Description of the Property (HOUGH) Tract 4, described as follows: That portion of the East 1/2 of the Southwest 1/4 of Section 15,Township 27 North, Range 1 West,W.M., described as follows: Beginning at the center of said Section; Thence South along the North and South center line of said Section, 758 feet to the True Point of Beginning; Thence West a distance of 752.77 feet to intersect the Easterly line of that certain tract of land sold to Gene Ray Myers by Real Estate Contract recorded March 8, 1971,Auditor's No. 208162;thence along said Myers Tract, South 15°42' S4" East, 19.22 feet; Thence continue along said Easterly line of Myers Tract, South 33° 56'38"East, 209.75 feet; thence continuing along said Easterly line of Myers Tract, South 34°96'24" East, 190.24 feet; Thence East a distance of 521.44 feet to intersect the North and South center line of said Section 15 at a point 350 feet South of the Point of Beginning; Thence North to the Point of Beginning. Situate in the County of Jefferson, State of Washington. Purchase and Sale Agreement 15 of 15 Dabob Bay Natural Area Hough 4110k sH Er H . ., ... ... .. i,,, a ...,1,.. ,...,.. ..._. —4 ....z.c e - "11;12..,,.- * . • . ., .... t• . -, '.'4 . * i. • . . ..„- . .. ' -. - VI - ;• r "1 ,..,_ Ir .1.•• . ' - „. • - -I . , - lie- - ., ii _ ,411: , % t MI "' ' .•'4'"..t ' ' : •, ' 4 . *"'" '„.4.4'„ ,•-• ..."* P- ....„ _ All ..... .. .,% ....., .. ,. . ., , .04.. . -...1. .,,•, :„. - ' -.' 44.... ..,.e:* 44-4e-, ,... * 4,,, ' 'to 4'' — ,,.' ,,,,,*.' '*, ',1**V" •-.------. '''''1 * i''P,it: ...,, 1 401- , r k. ,,.. , 4 77N4ifitlii tin 4, . . ,VVV 7.4' -'E' --'-''-' ' -- - REPORT ... , ,;,,,,,,,,:, -:;„*".-•. ,_-,,,:_-,--',. -410r4 - --,,,,- * HOUGH PROPERTY -.- . - ,-',. ,,- VVV 1125 TOANDOS ROAD QUILCENE , WASHINGTON 98376 -,.. SH&H FILE 16344-25 VALUAr`ON AND C0NSU_` ING February 26, 2025 Peter Bahls Executive Director Northwest Watershed Institute 3407 Eddy Street Port Townsend, Washington 98368 Re: Restricted Appraisal Report Hough Property 1125 Toandos Road Quilcene, WA 98376 SH&H File 16344-25 Dear Mr. Bahls: At your request, I am providing you with an appraisal of the above referenced property. Per our agreement, this report is provided in a Restricted Appraisal Report format. This appraisal report has been prepared with the intent to conform with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, which includes the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by The Appraisal Foundation. In addition,this report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a Restricted Appraisal Report. As such,it presents limited discussions of the data,reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client stated within this report. In completing this assignment, sufficient background information and supporting facts have been analyzed to arrive at a value conclusion, with some of this information being retained in a file memorandum by the appraiser. It is my understanding that this report will be utilized to assist you in establishing the value attributed to the subject's real property as of the effective date of value. The property is currently subject to a Purchase and Sale Agreement with the Northwest Watershed Institute, dated November 2024. The contract price is identified as the greater of$120,000 or the"Fair Market Value"of the property as determined by an appraisal. 3609 Market Place West,Suite 201 University Place,Washington 98466 p. 253.564.3230 f. 253.564.31 43 According to the prospective buyer's representative,the $120,000 threshold was generally based on the assessed value of the property. Thus, this appraisal report will be utilized to determine a final contract price for the property. The subject of this appraisal is comprised of one Jefferson County Assessor's parcel with a total area of 6.38 acres, according to Jefferson County GIS information and a Purchase and Sale Agreement document provided. The subject site is located along the easterly side of Toandos Road,westerly of Coyle Road, in the Quilcene-Dabob area of unincorporated Jefferson County (Quilcene address), Washington. The site is forested and gently sloped upward in an easterly direction. The site is improved with a cabin/carport structure containing 168 square feet of enclosed area. Electrical and telephone service are available to the site; however, the site does not have public water access nor is a well or approved septic system installed. The site is, however, currently served by an unapproved septic system, although the legal ability to continue to use this infrastructure is speculative to assume. The purpose of this appraisal is to provide an estimate of the market value of the fee simple interest in the property, as of the date of inspection. The market value of the subject property, as of the date of inspection, February 20, 2025, is estimated at: ONE HUNDRED FORTY-FIVE THOUSAND DOLLARS $145,000 The market value conclusion herein is based on an estimated marketing time of twelve months or less,based on sales of similar properties in the greater market. This estimate of marketing time assumes that the property is competently marketed and priced commensurate with current market parameters. The appraisal report that follows summarizes the assignment, describes the area and the subject property, and explains the valuation techniques and reasoning leading to the final opinion of market value. As in the case of any appraisal, the reader's attention is directed to the underlying Assumptions and Limiting Conditions that are included in the accompanying report. Respectfully submitted, Chad C. Johnso , AI State of Washington Certification 1101662 TABLE OF CONTENTS Title Page Letter of Transmittal i i Table of Contents iv Subject Photographs v Factual Description Property Identification 1 Intended Use and User of the Appraisal 1 Property Rights Appraised 2 Legal Description 2 Sales History 2 Purpose of the Appraisal 3 Scope of the Appraisal 4 Location Data 4 Property Description 7 Zoning 11 Taxes and Assessments 12 Improvements Description 12 Analysis of Data and Opinions of Appraiser Highest and Best Use 13 Property Valuation 13 Sales Comparison Approach 13 Reconciliation 31 Certification 32 Qualifications 34 Assumptions and Limiting Conditions 37 Extraordinary Assumptions and/or Hypothetical Conditions 42 SUBJECT PHOTOGRAPHS i ,f.. c^'r f a� �� } ,..,_ ,% &, a xIR uk D ' ' 1,,, , lit liti f . , ,::.- 40.: . - '-. V�`'' ,' .- 1.44 '"ilr.��d �� Ak;i.� ': t 5: kA� f 'ttia a* `' .r , SOUTHERLY VIEW OF TOANDOS ROAD , # x , it t 43 r s .. q , 1 DRIVEWAY TO THE SUBJECT PROPERTY L T 111 I . I ., ,, i r ,........ .. y♦ Y x _ ....., ..;... „.. . . , ... ...... . , sr.,. . „,,,,,,,....,..,, ...,.......,%, ,„ _. . . VIENN OF THE SUBJECT PROPERTY SITE .. y a a y i f"d "�R • t .. . I.- ADDITIONAL VIEW OF THE SUBJECT PROPERTY SITE 0 . a y qr r` b KJ e y 7177. VIEW OF CABIN/CARPORT STRUCTURE • i a ,. • I '=gat INTERIOR OF CABIN IL, • 'E • R; * t i S` q, S t, . i:ii f' i , _ ,.. - 14000111 . _ �.._ 1. -3,# 1.. t,f yS yn _... - INTERIOR OF SUBJECT SITE * /'44.'1' a i. 1 e 0 - 4„ SHED RESTRICTED APPRAISAL REPORT This Appraisal Report is prepared with the intent to comply with the reporting requirements set forth under the Uniform Standards of Professional Appraisal Practice for a Restricted Appraisal Report The depth of discussion contained in this report is specific to the needs of the client stated within this report. Diligent effort has been made to fully comply with USPAP. If authorized users of this limited scope appraisal find the information provided is in any way inadequate or insufficient,rather than be misled or confused by this report,they must seek clarification or additional information from the appraiser. APPRAISER Chad C. Johnson, MAI SH&H Valuation and Consulting 3609 Market Place West, Suite 201 University Place, WA 98466 CLIENT Peter Bahls Executive Director Northwest Watershed Institute 3407 Eddy Street Port Townsend, Washington 98368 PROPERTY IDENTIFICATION Hough Property 1125 Toandos Road Quilcene,Washington 98376 INTENDED USE AND USER OF THE APPRAISAL This appraisal is presented in a Restricted Appraisal Report format and is intended to be used only by the client and intended user, Northwest Watershed Institute. The intended use of the report is to establish the market value of the property to determine an appropriate sale price relevant to a pending transaction. Use of this report by others is not intended by the appraisers or the client. A Client is defined as: "The party or parties(i.e., individual,group, or entity)who engage an appraiser by employment or contract in a specific assignment, whether directly or through an agent."I 1 Uniform Standards of Professional Appraisal Practice, 2024 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C.,,p.4. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 1 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT PROPERTY RIGHTS APPRAISED The subject property is appraised as to the fee simple interest. Fee simple interest is defined as follows: "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain,police power, and escheat. "2 LEGAL DESCRIPTION A title report, dated September 16, 2024, completed by First American Title Insurance Company, was provided and contains a full legal description of the subject property. A copy of this document,inclusive of the legal description,is included in the addenda section of this report. SALES HISTORY According to the title report provided, ownership of the subject property is vested with Thomas J. Hough, a single man. Mr. Hough purchased the property on July 10, 1991. The seller was Discovery Investments and the sale was recorded via Statutory Warranty Deed under Jefferson County Auditor's file number 341821. I am not aware of any arm's length or market-based transfers of ownership during the previous ten years. The property is currently subject to a Purchase and Sale Agreement between the seller(Mr. Hough) and the Northwest Watershed Institute (NWI). The contract price is identified as "the greater sum of ONE HUNDRED AND TWENTY THOUSAND U.S. Dollars ($120,000)or the Fair Market Value of the Property as determined by a qualified appraiser in an appraisal commissioned and paid for by the buyer." The Purchase and Sale Agreement goes on to state that "if the Fair Market Value exceeds $120,000, the Parties agree to amend this Agreement to make such amount the Purchase Price." A copy of the Purchas and Sale Agreement is included in the Addenda of this report. Thus, it is my understanding that the intended use of this Restricted Appraisal report is to help establish a final purchase price relevant to the pending transaction. 2 The Dictionary of Real Estate Appraisal, 7th Edition,Appraisal Institute,Chicago,2022,p.73 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 2 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT EFFECTIVE VALUATION DATES Date of Report: February 26, 2025 Date of Inspection/Effective Date of Value: February 20, 2025 MARKETING/EXPOSURE PERIOD The indicated exposure time (i.e., the length of time the subject property would have been exposed for sale in the market had it sold at the market value concluded in this analysis as of the date of this valuation) would have been twelve months or less. The estimated marketing time (i.e., the amount of time it would probably take to sell the subject property if exposed in the market beginning on the date of this valuation) is estimated to be twelve months or less. These conclusions are based on sales of similar type properties in the market. PROBABLE BUYER The most probable buyer of the subject property would likely be an owner user. PURPOSE OF THE APPRAISAL The purpose of the appraisal is to estimate the "as is" market value of the property as of the date of inspection. DEFINITION OF MARKET VALUE Market Value is defined as"the most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. "3 DEFINITION OF "AS IS"MARKET VALUE "The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. "4 3 The Appraisal of Real Estate,15th Edition,Appraisal Institute,Chicago,2020,p.48. 4 The Dictionary of Real Estate Appraisal,7's Edition,Appraisal Institute,Chicago,2022,p.10. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 3 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT SCOPE OF THE APPRAISAL The scope of this appraisal encompasses the necessary research and analysis to prepare a report in accordance with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by The Appraisal Foundation. The scope of this restricted assignment relates to the field work, inspection, research, and analysis conducted for preparation and valuation of the subject property's estimated value subject to the limitations detailed in this report. This limited scope appraisal assignment involved an inspection of the subject property on February 20, 2025. Statistical, descriptive, and demographic data was gathered using various informational systems such as the Northwest Multiple Listing Service and Jefferson County public records. In the case of the subject property, given that the property is mostly undeveloped with the exception of a cabin and some site infrastructure, the most (and only) applicable and relevant approach to value is the Sales Comparison Approach. In arriving at the value of the subject property by this approach, sales of similar properties were considered. The other typical approaches (Income Approach and Cost Approach) are not typically relied upon in the subject market for these types of properties and are thus not relevant. The exclusion of the other approaches does not detract from the overall reliability of the value conclusion reported herein. UNAVAILABILITY OF INFORMATION A wetland delineation report, site specific soils study, and environmental report were not provided during the timeframe of this assignment. Therefore, any information that would have been provided by these documents is not known or considered. LOCATION DATA A map showing the subject property's location within the Puget Sound metropolitan area is presented on the following page. A second map showing the subject property's location within the immediate neighborhood is presented following the area map. In general, the subject is located in the Quilcene area of easterly Jefferson County. This area is comprised of a mixture of forestry/resource properties as well as single family development,primarily on larger/low-density parcels. Many homesites in the area benefit from marine views of Hood Canal/associated water bodies and/or the Olympic Mountain Range. HOUGH PROPERTY,1125 TOANDOS RO:kD.QUILCENE,JEFFERSON COUNTY,WA 98376 Page 4 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT I Granite Falls Por: I adlook-Ironda I -Ike Stevens Everett 5 0 frvlaproe - SUBJECT PROPERTY Edmords holihne Bothrll Bangor Base Seabeck Bainbridge Is and Seattle BrPrierton I.amma tiamma r I — Renton Bella r Vashon Island V \ I.00dsport, Kent Urion Gig Harbor Federal Way , 4 I Tacoma Er uric aw 2Att, Puyallup L 3 kewooa Span away Graham Olympia TumWater 439 -r51 Capitol State Forest 4P Yelm EY 7 I a Tenino tonville- ts Dakville 11&ter/ AREA MAP HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 5 SII&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT 0 C? ong Spit 0 0 SUBJECT PROPERTY LOCATION MAP HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,Vs',A 98376 Page 6 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT PROPERTY DESCRIPTION The site description provided below is derived from observations made during the site inspection as well as information provided by the client and public records. Site Description The subject property consists of one Jefferson County assessor's parcel(APN 701153003) containing 6.38 acres, according to Jefferson County GIS information and the Purchase and Sale Agreement. It is located along the easterly side of Toandos Road, westerly of Coyle Road, in the Quilcene - Dabob area of unincorporated Jefferson County (Quilcene address), Washington. The site is forested and gently sloped upward in an easterly direction. The site is improved with a cabin/carport structure containing 168 square feet of enclosed area. Electrical and telephone service are available to the site; however, the site does not have public water access nor is a well or approved septic system installed. The site is, however, currently served by an unapproved septic system, although the legal ability to continue to use this utility is speculative to assume. The owner currently utilizes a rain catchment system for ancillary water purposes and also uses water from an adjacent property owner (by a hose) under an informal agreement for potable purposes. The property does not have a permanent/conventional water system. An aerial view of the subject, with the approximate boundaries of the subject site outlined in red,is provided on the following page. Further details of the subject site are as follows: Location: The subject site is located along the easterly side of Toandos Road, westerly of Coyle Road, in the Quilcene-Dabob area of unincorporated Jefferson County, Washington. Municipal Jurisdiction: Jefferson County. Address: 1125 Toandos Road Quilcene, Washington 98376 Access: The subject site is accessed by way of a driveway extending off of Toandos Road, a private, gated road extending southwesterly off of Coyle Road. The gate is operated by a keypad system. The road is gravel-surfaced but in good condition and appears to be adequately maintained. Site Area: The subject site is comprised of one assessor's parcel (APN 701153003). According to Jefferson County Assessor's records, the site contains an area of 6.38 acres. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 7 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT vo. t.' !!!‘r ' ' -, -.....v.,,, .z.. -irke , Ito I. I k r a. ____�___ - __ ~-a'.- , . 4 ..1 *li*Autt,* " *.lciiii ,,,„, „,.., , , .....,,,, ,,,,, .„ .....5,. ..„:" . :r -, , ,, , , 01. .,F ''' ' 1 * *0 •. ' itgr '--'' -0rtirt;714 ' eke:„ .0't, ' -No ....E.- r t iS r '' :.•., IlLIFF47.77-'4,,,7 44.104::,'..i.t.osw ' ,4,-,- , :Iiiit6.40„- 1;„›.-1111:, 1.,'"4";_.111-44070,7,.-, '*4111111‘ .',i• I:7Z li.: .t 4004 * . dam►* �+ . + ; ' . ,,,,,v, 00 , ... , .. . ,,„,„„,„ ,... ..„,. . "..,11.,, 10.___ ,,, ,, 7„.4 tiorkir04:1*, " , :41,4* r�6 #M • • 1r • �r * "' tic i ' g •,. ate, r ''' 4 — -;i,, ioi `f _ ►' ' k" 4 t roir t 0111 N► Wn .�. i.; a a, t .APB, _ 'd' • lnF4l Jr. �� t oviliow �s 1•1 a 1".,r� AERIAL VIEW OF SUBJECT SITE SUBJECT PROPERTY OUTLINED IN RED FIOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 8 Sll&li File 16344-25 Chad C.Johnson,M 11 RESTRICTED APPRAISAL REPORT Shape: Generally rectangular/slightly irregular Utilities: Electrical and telephone service are available to the site. Well and septic systems would be necessary for conventional homesite development. While the property has a septic system adjacent to the cabin, no permits were obtained when it was installed and the legal ability to continue to utilize this system is unknown and speculative to assume. Topography and Coverage: The site contains a combination of sloped and level topography. A topographic map obtained from the Jefferson County GIS mapping system is presented on the following page. Coverage consist primarily mixed conifer species, along with other areas of brush and grasses. Wetlands: I was not provided with any reports or studies relative to wetlands delineation for the subject property. Based on the National Wetlands Inventory map provided by the U.S. Fish and Wildlife Service and the Jefferson County GIS mapping system,there do not appear to be any wetlands on the subject site. Flood Plain: According to Flood Insurance Rate Map Number 5303 1C0910C, dated June 7, 2019, the subject property is located outside of any flood zones. Soils: Soils reports/studies for the subject site were not available. Instead, data from the United States Department of Agriculture (USDA) Natural Resources Conservation Service mapping system is utilized. The subject property is primarily composed of Sinclair gravelly sandy loam, 0 to 15 percent slopes (SnC). The Sinclair series consists of moderately well drained soils that formed in glacial till on glacial terraces. Vegetation is mainly Douglas fir, western redcedar, red alder, willow, rhododendron, and salal. Most of the acreage of this soil is used for the production of trees, small ranches, and rural homesites. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 9 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT TOPOGRAPHY MAP SUBJECT PROPERTY OUTLINED IN RED HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 10 SII&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Environmental Issues: An environmental report was not provided. It is noted that there are some areas of debris on the subject property, including an old trailer,vehicle and general debris. I am not aware of any adverse environmental issues that would impact the highest and best use of the subject property. Easements/ Encroachments: A title report relevant to the subject property was provided. There do not appear to be any easements encumbering the subject property that would adversely impact the highest and best use of the site. Surrounding Uses: Surrounding uses in the vicinity of the subject property includes residential uses on larger acreage properties and sites that are managed for the commercial harvest of timber. Views: The site has territorial views. ZONING The subject property consists of one Jefferson County assessor's parcel(701153003). The zoning for the subject property is Rural Residential 5 (RR-5), per the Jefferson County Code. The purpose of this district is to "Allow for continued residential development in areas of Jefferson County consisting of relatively high-density pre-existing patterns of development, along the county's coastal areas, and within areas within or adjacent to rural centers and rural crossroads. In addition, this district seeks to support and foster Jefferson County s existing rural residential landscape and character by restricting new land divisions to a base density of one unit per five acres. " This zoning designation allows for a base density of one dwelling unit per five acres. Outright permitted uses include, but are not limited to, single-family residences, duplexes, home businesses, bed and breakfast residences, mineral extraction activities, parks and playfields,recreational facilities,and aquaculture activities and uses. The subject property contains a reported area of 6.38 acres. The subject is improved with a small cabin and carport. While this is a legal use of the subject site, more permanent/conventional residential development would likely require a well be installed and that the existing septic either be approved by Jefferson County (the outcome of which would be speculative to assume) or a new system installed. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 11 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT TAXES AND ASSESSMENTS The subject property is carried on the Jefferson County Tax and Assessment roll under one assessor's parcel number. Tax and assessment information for the subject property is summarized in the chart below. Land Improve. Total 2025 Parcel Number Value Value Value Taxes 701153003 $105,644 $18,613 $124,257 $1,016.62 The 2025 taxes are based on the 2024 assessed values and result in an amount of$1,016.62 as shown in the above chart. Experience has shown that the assessed value of a property is often an unreliable indicator of market value,despite the assessor's mandate to assess all properties at 100% of market value. This appears to be the case with the subject as the assessed value is lower than the appraised value herein. According to Jefferson County Assessor records, the taxes for the subject are paid current. IMPROVEMENTS DESCRIPTION The subject is improved with a cabin and carport structure. The structure is of wood frame construction and was built in 1999. The enclosed cabin contains one room and has a total area of 168 square feet, according to measurements taken during the physical observation. The interior is sparsely finished and has electrical service; however, the site does not contain a well nor access to public water, nor is there an approved septic system. The carport is adjacent to the cabin and contains an area of 126 square feet. The site is further improved with a rainwater catchment system, as well as a storage shed containing 120 square feet. The structures are overall in average condition. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 12 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT HIGHEST AND BEST USE "As Though Vacant" Considering the limited allowed legal uses according to zoning, as well as the physical characteristics of the site, the highest and best use of the property"as though vacant"is for development of the site with one single-family residence. "As Improved" The subject is improved with a small cabin and carport structure; however,there is no well or approved septic system in place. The structure has utilitarian value to the site for recreational use. Therefore, the highest and best use as improved is for continued use of the existing recreational improvement in the interim, with the potential for single-family residential development in the future, as dictated by demand. PROPERTY VALUATION The subject site is a rural residential site and is improved with a cabin/carport structure. Although all three approaches to value were considered,based on the characteristics of the subject property, the only applicable and relevant approach to value is the Sales Comparison Approach. The Sales Comparison Approach is considered to provide sufficient data to arrive at a reasonable and supportable value conclusion for the subject property. SALES COMPARISON APPROACH The Sales Comparison Approach involves the process of comparing improved properties which have recently sold, with the subject property, noting and adjusting for similarities and dissimilarities between the property being appraised and the sale comparables. This approach to value considers a physical unit of comparison, the price per site in this case. Within this approach, I will evaluate comparable sales data to formulate a value estimate for the subject property. The research for comparable sales focused on rural residential properties with similar use potential as the subject. The search first focused on the sale of rural properties that contained outbuildings and/or small residentiaUcabin structures. Two sales were identified (L-2 and L-4). The search was then expanded to include unimproved properties with similar development potential as the subject. To that end,two additional closed sales were identified(L-3 and L-5), as well as one current listing(L-1). HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 13 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT All of the comparables are located within the subject's general neighborhood of Quilcene, and all of the closed sales have occurred within the past six months. A total of four closed comparable sales and one current listing were selected for the analysis of the subject property. The exhibit below summarizes the comparables utilized, with a location map shown on the page after the chart. Following the map, more detailed information for the comparables is presented, together with a parcel map. In this instance, the most appropriate unit of comparison is the price per site. SALE COMPARABLES Size Sale Location Sale Date (Acres) Sales Price L-1 11573 Coyle Road Listing 4.67 $89,000 Quilcene L-2 82 Camelot Road Jul-24 7.10 $120,000 Quilcene L-3 24)O(Munn Road Oct-24 5.51 $135,000 Quilcene L-4 771 Lakenes Road Nov-24 5.05 $150,000 Quilcene L-5 4 Mt. Walker View DriNie Jan-25 4.97 $150,000 Quilcene HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 14 SH&11 File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT ti%at. _ I',.1 Zilland Comp3 Comp 4 ---"--119Dabo. Bridg- Comp 2 Jilcene Subject Camp Discovery 101 {.. Vinla Bees Mill a 0 Comp 5 Bangor Base SEAL ROCK Comp I Coyle Olympic View COMPARABLE LAND SALES MAP HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 15 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Listing No. 1 Property Identification Record ID 15925 Property Type Residential Address 11573 Coyle Road,Quilcene,Jefferson County,Washington 98376 Location Toandos Peninsula Assessor's Parcel Number 601222007 Instrument Statutory Warranty Deed Sale Data Grantor Brian L. Spain Survey Date February 24,2025 Property Rights Fee Simple Verification Tim Horvath, listing agent(360)531-0980 Listing Price $89,000 Land Data Zoning RR5,Jefferson County Topography Sloped&forested Utilities Electric in street; approved septic design Shape Rectangular Land Size Information Gross Land Size 4.670 Acres or 203,425 SF Indicators List Price/Site $89,000 Remarks This is the listing of a rural residential site located along Coyle Road, in the Toandos Peninsula area outside of Quilcene, in unincorporated Jefferson County. The site contains 4.67 acres, is sloped and heavily forested and is rectangular in shape. There is electrical service available in the street. There is an approved 5-bedroom septic permit; however, installation of the septic system, along with a well, are required for development. A GeoTech study has been completed for the property and has identified adequate buildable space for a single-family residential development. The property has been listed for sale multiple times over the past few years. According to the listing agent,the buildable area of the site is greatly diminished due to significant sloping;however, a small portion is buildable. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 16 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT w _ v •�`L. 0i tie".'.447. '-.7' '*4:•.:4' ' .4.. ' ' ' , ..4 4 le I t I.44..,„ , iiii... - 1,. ..- . -...... vz,.. .. . , ,,,w, .. ...„...:,:. ,„•,.....,, ,...„..0.t...".-.7,,;,;., tot ...,,,..:,, ,,. .,* - : . - ,.....„_-74 ....,. . .... w ...,....r , \-4 ' -AL.!, ,—, tip ..- •-- -- —.371000 .1 7 e, .„.... . 7 •***rirqmitipset 44ttle.r.:-' '- • 44,..- **-'. , • .....,„t,.,; - , i' ..7 !' • li''!' tr,:w'f Jet x II ,' i .. t- I _----- - - — - • `" ,iIR r 'e;ar ,.Si :�yv "si' .rf; • �`;. _ yr TOANDOS PENINSULA * —IF.41.#' er •A"4:1116° #% - • •%,,.'I.:..f •.:I tb '4'. - . 'i it - '...'7:4,, '''4i''..':;:::'i ... ' 4'".11.:,..4.,-7. lit..:i :"*,,, ... ..),-it, '.,.,`1. -. -f...., .4.1...÷.. -„,, :.4-"i4ip ' th Iv - . � _0 rit:4.... ti V a €4 �s �t �� is k241041r, a • ' r ;ice$ u• ''' .,r'#_ . �' ^r,. , ` .... 1.i ' " ' qa .. r I, 11573 COYLE ROAD HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 17 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Sale No.2 Property Identification Record ID 15926 Property Type Residential Address 82 Camelot Road,Quilcene,Jefferson County,Washington 98376 Location Easterly of SR 101 Assessor's Parcel Number 702131023 Instrument Statutory Warranty Deed Sale Data Grantor Steven&Bernita Moul Grantee David Metoyer&Anthony Metoyer Sale Date July 24,2024 Auditor's File Number 667019 Property Rights Fee Simple Financing Cash Sale History Sold 11/2020 for$75,000 Verification Kalan Hatton, selling agent; 360-531-4419 Sale Price $120,000 Land Data Zoning RR5,Jefferson County Topography Sloped&heavily forested Utilities See remarks Shape Triangular Land Size Information Gross Land Size 7.100 Acres or 309,276 SF Front Footage 980 ft Center Road Indicators Sale Price/Site $120,000 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 18 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Sale No.2(Cont.) Remarks This is the July 2024 sale of a rural residential site located in the Quilcene area of unincorporated Jefferson County. There is access to the site by way of Camelot Road, a gravel access easement extending northerly off of Center Road,as well as a gated driveway extending off of Center Road. The triangular site has approximately 980 feet of frontage along Center Road. The site contains 7.1 acres and is sloped and heavily forested. Electrical service is available in Center Road. There is a low producing well at the top end of the allowable chloride level. Septic is needed for development. The site is improved with an enclosed metal shed/garage containing 300 square feet with a gravel floor and a seven-foot high garage door. There is also an open walled carport. According to the selling broker,both outbuildings are in average condition. The site was listed for sale for $135,000 and was on the market for 257 days before selling for $120,000,or 89%of its list price. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 19 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT *< y; i 14 � ; u „` 0. .. t' �' a pet K # � s ',... '41.?... ** 1" '. ' ',' t '311,.t''',* '•1!jr t s s �,. .--.v. ,,`; „�: • t +Ml� +Yt t '°wt s EASTERLY OF SR 101 ` , ,; # , t, %.. . r 7 * y�. a • a. 'at 6 xF 82 CAMELOT ROAD HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 20 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Sale No. 3 Property Identification Record ID 15927 Property Type Residential Address 24XX Munn Road,Quilcene,Jefferson County,Washington 98376 Location Lake Leland area Assessor's Parcel Number 802261019 Instrument Statutory Warranty Deed Sale Data Grantor Sara Brown Grantee Virginia Navrides Sale Date October 22,2024 Auditor's File Number 668485 Property Rights Fee Simple Financing Seller financed at typical terms Verification Sher Kirkpatrick, selling agent; 360-909-8636 Sale Price $135,000 Land Data Zoning RR 20,Jefferson County Topography Portions steeply sloped&forested Utilities Electric in the street Shape Rectangular Land Size Information Gross Land Size 5.510 Acres or 240,016 SF Indicators Sale Price/Site $135,000 Remarks This is the October 2024 sale of a rural residential site located near Lake Leland, in the Quilcene area of unincorporated Jefferson County. The site contains 5.51 acres. The topography is a combination of steeply sloped and level site area. It is heavily forested;however,there is reportedly no merchantable timber. Electrical service is available at the property line and well and septic are needed for development. There is a clear-cut dirt road extending from Munn Road to a buildable area. The property was listed for$135,000 and was on the market for 85 days before selling it for its full list price. According to the selling agent, there was nothing atypical about the property or transaction,which was seller financed,which is common in the area. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 21 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT tl t 1, < i_ `Via„ , • lk- 'i,..„ f''' ;s3 rf ';, � i'�'Atie ''7 „; "+ ;-• J n , /1'-.:*kti6. '.'"V 120-3,41,1P. k 7s,-, • '.. . - ''/1... t a • 1+s Y rp� jole LAKE LELAND AREA v. ty � g k.°+A , +� Y %gT,.�M'� ,�. A Y t 24XX MUNN ROAD HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 22 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Sale No. 4 Property Identification Record ID 15928 Property Type Residential Address 771 Lakenes Road,Quilcene,Jefferson County,Washington 98376 Location Lords Lake area Assessor's Parcel Number 702121003 Instrument Statutory Warranty Deed Sale Data Grantor Peter L. Tennigkeit Grantee Andrew&Kimberly Luly Sale Date November 06,2024 Auditor's File Number 668694 Property Rights Fee Simple Verification Jenn Forest, selling agent; 360-316-1147 Sale Price $150,000 Land Data Zoning RRS,Jefferson County Topography Sloped upward SW to NE,forested Utilities See remarks Shape Rectangular Land Size Information Gross Land Size 5.050 Acres or 219,978 SF Indicators Sale Price/Site $150,000 Remarks This is the November 2024 sale of a rural residential site located in the Lords Lake area, off of Lakenes Road, in the Quilcene area of unincorporated Jefferson County. The site contains 5.05 acres and has a view of the Olympic Mountains. The topography is sloped upward in a southwesterly to a northeasterly direction, with adequate level site area for development. It is forested. Electrical service is available a few parcels down Lakenes Road. Septic and well are needed for development. The site is improved with an unpermitted tiny home in average/good, newer condition. The tiny home contains a kitchenette and loft sleeping area. There is a solar power system, a composting toilet and a rainwater catchment system in place. The site is improved with multiple smaller outbuildings used for storage and small animal husbandry. The property was listed for$185,000 and sold for$150,000 after being on the market for 67 days. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 23 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT 3r. , .,,4, r�$ �!' x mn+g Tr, .4 3ibi t„. 1 . i .,,,,, ,,,,, ,, -,,,,,,,,,,,,„14 . ,, i... ,..,...1, , -x. To, . . * *itit :v?,,ts,,,i, . Jou:. _.,,.4.1f, ,,,,,,,,,r,ts, . .iiii‘ * . : _ .• ,, „,4 .,:., _ . ,,_,.. d 15 40, t .iritit 4 ki,,, . ,. . . ..„ „,...,.... II p , .,:. . .. 1. n.- , ..p .. . 0. ..i.lioil,kt:'.**A:sit,„*'....t:tri..,:1114:**7.0*41:411t,„...1 ', ei, ...:.: ,, ... toi.,,,,, .- 4 .74" 011'. . ' '' *--, ' '' ,- , - ' 14. 'V, .:-.. ' .''' ., $fib d litt '4. - At 1'4 0, 4:0 , , ' ,* '; .'", jqtki„ '. .4 ' '1:''' 1 v' $,-,s ,,...t.A.' ' "!^00,. dlit* —} -.2-• , 'iv. c'. ' ' ' — ‘I'F. •- -0%4. 1 tit rib' .II :'k-4 4.4h4i..',.- . r, .. . .. 1 . ti ,h a+ r. . ?fib +." LORDS LAKE AREA fi i ' + t - :,i'— t i ,. h ' 1 -- ' IA , . lit !, a, .," k '4.fit,. ' 'r ' ' :,, '*1 1 ....' 1 , 1 P.: .._ . ..- '1,/: 4. • • 771 LAKENES ROAD HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 24 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Sale No. 5 Property Identification Record ID 15931 Property Type Residential Address Mt Walker View Drive,Quilcene,Jefferson County, Washington 98376 Location Toandos Peninsula Assessor's Parcel Number 601225012 Instrument Statutory Warranty Deed Sale Data Grantor Jason&Cheryl Wright Grantee Keith Mast,Jacob&Emily Moushey Sale Date January 25,2025 Auditor's File Number 669834 Property Rights Fee Simple Financing Typical Verification Tim Horvath, listing agent(360)531-0980 Sale Price $150,000 Land Data Zoning RR5,Jefferson County Topography Gently sloped&forested Utilities Electric in street;well&septic needed Shape Rectangular Land Size Information Gross Land Size 4.970 Acres or 216,493 SF Indicators Sale Price/Site $150,000 Remarks This is the January 2025 sale of a rural residential site located in the Mt Walker View subdivision. The property is located at the end of Mt. Walker View Drive (Starry Night Place), which is identified on a plat map as a small, cul-de-sac subdivision. The site is located on the Toandos Peninsula,outside of the Quilcene area,in unincorporated Jefferson County. The site contains 4.97 acres and is gently sloped and forested. There is a view of Mt. Walker. Electrical service is available in the street,and septic and well are needed for development. The property was listed for$159,950 and sold for$150,000 after being on the market for 170 days. The site has an approved Site Development Review in place. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 25 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT w . : • f` 4041tit al - ) w f f • r`t SF 01014,607,4 , ✓a."{' ..1r[ iris. � i,.y�� 'c i e 1 '' t ..i ► r �� "* 'way ^'` , u+r a k .14''• :' 4 't"; " . . f'+ `may M a .: . d i ."'►� 7R+Y .-11"M'IT n., f,4v+it, • w1 '- i . # R Y Yd ti i *M+, '.'! f + f �1a .a.0 # . '*, '} +. ;' 0. •""� p l •3,LY7 * w 4 it lati''. ',t* -*;1*--'' Nr;g4* f ''':5; --. yr . . � - +'+ t:r")' 41;-*f; t� ter 1 stR,y' A r µ y� ,f ,nry 1, ', - :iz .t . : 1••'_ ''.of `, -r ate- ' `�^, r,. -.- $ f } , • • . 'r. : t s , w.r � z ,f'' '. Af !:� * , fi� �Tc 0. � ,- 4- ! 1, �zkK `` �„� ` ' � + s , f* r " — .Ja . _!'J TOANDOS PENINSULA 4, G ` 4 g4 � St< i , # . Y\ y is ''‘U''',*1/4. '''', * ' . . . f. } t • MT WALKER VIEW DRIVE HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 26 nson, SH&H File 16344-25 Chad C.JohMAI RESTRICTED APPRAISAL REPORT Analysis of Land Sales A basic principle in the valuation of real estate is that no two properties are identical,which means that adjustments are necessary to reflect the various differences of the properties being considered. An adjustment process is applied to the comparables,with an adjustment chart presented following the discussion of the comparables. The adjustment process allows the appraiser to consider the thought process often followed by buyers and sellers in comparing different properties. Within the discussion of each sale detailed herein, the sales' characteristics are noted and compared to the subject, resulting in conclusions requiring adjustments to the indicated unit prices of the comparables. Qualitative adjustments are applied, either positive or negative, to account for physical differences between the comparables and the subject property. In this instance, the price per site has been utilized for analysis purposes. Quantitative Adjustments The property rights conveyed, financing, conditions of sale, and buyer expenditures/other do not require any quantitative adjustments for the comparables. Market Conditions In analyzing the influence of the market conditions at the time of sale of the comparables in relation to the market conditions as of the date of appraisal,the key factor is the passage of time. More specifically, the question to be answered in its simplest form is whether there is any trend in general prices through time. The date of sale for the comparables ranges from July 2024 to January 2025, as well as a current listing. All of the closed sales have occurred within the last six months,with one of the sales occurring a few weeks before the date of inspection for the subject. The rural residential market in Jefferson County has historically exhibited gradual signs of growth. Therefore, due to the relatively recent dates of sale, no market conditions adjustments are applied to the comparables. After quantitative adjustments, the comparables indicate a range on a price per site basis from$89,000 to $150,000 per site. The next step is to consider the appropriate qualitative adjustments to apply to the comparables for the analysis of the subject. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 27 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Qualitative Adjustments The individual comparable sales are now compared to the subject as it relates to qualitative adjustments, including Location, Site Size (Acres), Site Utility, Utilities in Place, and Improvements. An adjustment grid has been prepared, as shown on the following page, simulating the thought process a prudent and knowledgeable purchaser might use if involved in comparing the comparables to the subject property. This chart is presented as an aid in depicting the positive and negative influences that impact the market value of properties in this market segment. Location The subject is located on the Toandos Peninsula, off of Toandos Road, which is a private, gated road finished with gravel and dirt. L-1 and L-5 are also located on the Toandos Peninsula, but are accessed off of Coyle Road, which is a finished and county-maintained arterial. Additionally,L-5 is located in a subdivision plat. These comparables are therefore adjusted downward for location. L-2 contains a considerable amount of frontage along a higher trafficked arterial (Center Road), which is a less desirable attribute for a rural residential property. Thus,this comparable is adjusted upward for location. The remaining sales are similar enough when compared to the subject in location that no adjustment is needed for this factor. Site Size The subject contains 6.38 acres. All of the comparables are similar enough in size to forgo an adjustment. Site Utility The subject property has a combination of sloped and level topography. L-1 and L-2 have more sloped topography and are adjusted upward, with L-1 reported to have a very confined potential homesite due to topography. Thus,upward adjustments are appropriate for this factor,with a stronger adjustment applied to L-1. L-5 has less areas of sloping than the subject and is adjusted downward. The remaining comparables are generally similar to the subject in site utility and no adjustments are applied. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 28 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Comparable Number L-1 L-2 L-3 L-4 L-5 Sale Price n/a $89,000 $120,000 $135,000 $150,000 $150,000 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjustment $0 $0 $0 $0 $0 Adjusted Price $89,000 $120,000 $135,000 $150,000 $150,000 Financing Cash to Seller Cash to Seller Cash to Seller Cash to Seller Cash to Seller Cash to Seller Adjustment $0 $0 $0 $0 $0 Adjusted Price $89,000 $120,000 $135,000 $150,000 $150,000 Conditions of Sale Arms Length Arms Length Arms Length Arms Length Arms Length Arms Length Adjustment $0 $0 $0 $0 $0 Adjusted Price $89,000 $120,000 $135,000 $150,000 $150,000 Buyer Expenditures/Other None None None None None Adjustment $0 $0 $0 $0 $0 Adjusted Price $89,000 $120,000 $135,000 $150,000 $150,000 Date of Sale Feb-25 Listing Jul-24 Oct-24 Nov-24 Jan-25 Months Since Sale 0 6 3 3 0 Adjustment 0.00% 0.00% 0.00% 0.00% 0.00% Adjusted Price $89,000 $120,000 $135,000 $150,000 $150,000 Adjusted Price/Site $89,000 $120,000 $135,000 $150,000 $150,000 Qualitative Adjustments Location Superior Inferior Similar Similar Superior Adjustment - + - Size(Acres) 6.38 4.67 7.10 5.51 5.05 4.97 Adjustment Site Utility Inferior Inferior Similar Similar Superior Adjustment ++ + - Utilities in Place Superior Superior Similar Inferior Similar Adjustment - - + Improvements Inferior Similar Inferior Superior Inferior Adjustment + + -- + Total Adjustment Upward Upward Upward Downward Downward Utilities in Place The subject has electrical service,but a well and septic system are needed for conventional residential development. Although the subject currently has a septic system in place, it was not approved at the time of installation and the ability to legally utilize this infrastructure is speculative. Therefore, the property is essentially viewed as not having a septic system for analysis purposes. The historical functionality of the existing system, however, suggests that the site's soils are capable of supporting such a system. L-1 also has electrical service and there is an approved septic design in place. This comparable is adjusted downward for utilities. L-2 has electrical service as well as a drilled well and is also adjusted downward for this factor. L-4 does not have electrical service and is adjusted upward. L-3 and L-5 are similar to the subject in this regard and no adjustments are needed. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 29 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Improvements The subject is improved with a small cabin/carport structure, as well as a storage shed. L- 4 has a newer tiny home in average/good condition; thus, a strong downward adjustment is applied to this comparable. L-2 is improved with some outbuildings;thus,no adjustment is applied to this comparable. L-1, L-3 and L-5 do not contain improvements or outbuildings. These comparables are adjusted upward for this factor. Conclusion The five comparables indicate a range from$89,000 to$150,000 per site. Predicated upon the previous discussion and taking into consideration the location and quality of the subject property, a value higher than L-3 ($135,000/site), but lower than L-4 ($150,000) and L-5 ($150,000/site)is reasonable. Based on my analysis and discussion herein,a value estimate of $145,000, as bracketed and supported by the central tendencies of L-3 and L-4, is concluded for subject property, resulting in an overall value, as follows: VALUE BY THE SALES COMPARISON APPROACH Acres Value 6.38 $145,000 Predicated upon the previous analysis, the opinion of value for the subject property by the Sales Comparison Approach is as follows: Market Value indication by the Sales Comparison Approach, as of February 20, 2025: $145,000 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 30 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Reconciliation Only the Sales Comparison Approach is utilized for this appraisal assignment. The Sales Comparison Approach allows for the comparison of similar type properties to the subject, noting for similarities and differences between the comparables and the subject property. This approach contributes a credible value conclusion and is the most (and only) relevant approach for this type of property. Based upon the preceding data and discussions, the "as is" market value of the subject property, as of the date of inspection, February 20, 2025, is estimated at: ONE HUNDRED FORTY-FIVE THOUSAND DOLLARS $145,000 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 31 SH&H File 16344-25 Chad C.Johnson,MAI CERTIFICATION I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and represent my personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and have no personal interest with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. I have made personal inspections of the property that is the subject of this report. 8 Katherine E. Tiffany, License Number 1002112,provided significant real property appraisal assistance to the person signing this report relevant to the subject research, market research, comparable confirmation, analysis and/or report preparation. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared,in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or an approval of a loan. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 32 SH&H File 16344-25 Chad C.Johnson,MAI CERTIFICATION 12. I am competent and qualified to perform the appraisal assignment. 13. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 14. As of the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute. ae,ie Chad C. Johnson, AI State of Washington Certification 1101662 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 33 SH&H File 16344-25 Chad C.Johnson,MAI QUALIFICATIONS CHAD C.JOHNSON,MAI GENERAL EDUCATION BA,Business Administration, Option in Real Estate,Washington State University Relevant Coursework Real Estate Principles Real Estate Finance Real Estate Valuation Real Estate Investment Real Estate Law CERTIFICATIONS Washington State Certified General Real Estate Appraiser Certification 1101662 Issue Date: March 31,2005 PROFESSIONAL DESIGNATION MAI,Appraisal Institute PROFESSIONAL EXPERIENCE Real Estate Appraiser and Consultant SH&H Valuation and Consulting(formerly Strickland,Heischman&Hoss, Inc.) June 2001 to Present SELECTED APPRAISAL INSTITUTE COURSES Course 310,Basic Income Capitalization(February 2002) Course 320,General Applications(December 2004) Course 410, Standards of Professional Practice,Part A(September 2001) Course 420, Standards of Professional Practice,Part B(September 2001) Course 510,Advanced Income Capitalization(December 2002) Course 520,Highest&Best Use and Market Analysis(September 2006) Course 530,Advanced Sales Comparison and Cost Approaches(September 2008) Course 540,Report Writing and Valuation Analysis(August 2003) Course 550,Advanced Applications(January 2009) Uniform Appraisal Standards for Federal Land Acquisitions—Practical Applications(May 2017) Eminent Domain and Condemnation(August 2018) Fundamentals of the Uniform Appraisal Standards for Federal Land Acquisitions(October 2020) Various Continuing Education Courses and Seminars HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 34 SH&H File 16344-25 Chad C.Johnson,MAI QUALIFICATIONS PARTIAL LIST OF PROPERTY TYPES APPRAISED Apartments Industrial Subdivisions Agricultural Properties Institutional Properties Aquaculture Properties Leasehold Interests Automobile Dealerships Medical Offices Automobile Repair Facilities Mineral Extraction Operations Banks Mixed-Use Properties Bowling Alleys Natatoriums Business Parks Nurseries Cardlock Fueling Facilities Private Schools Carwashes Professional Offices Churches Recreational Properties Commercial Land Religious Retreats Commercial Subdivisions Residential Land Condominium Developments Residential Subdivisions Conservation Easements Resource and Forest Land Properties Daycare Centers Restaurants Food Processing Plants Retail Properties Gas Station/Convenience Stores Right-of-Way Acquisitions Golf Courses Self-Storage Facilities Health Clubs Shellfish Processing Plants Hotels/Motels Single-Family Residences Industrial Properties Waterfront Properties APPRAISAL EXPERIENCE IN THE FOLLOWING WASHINGTON COUNTIES Benton County Lewis County Clallam County Mason County Clark County Okanogan County Cowlitz County Pacific County Franklin County Pierce County Grant County San Juan County Grays Harbor County Skagit County Island County Snohomish County Jefferson County Spokane County King County Thurston County Kitsap County Whatcom County Kittitas County Yakima County HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 35 SH&H File 16344-25 Chad C.Johnson,MAI QUALIFICATIONS PARTIAL LIST OF CLIENTS FOR WHICH I HAVE COMPLETED APPRAISALS 1s`Security Bank(formerly Anchor Bank) Northwest Watershed Institute Alaska USA Federal Credit Union 0 Bee Credit Union Bank of America Olympia Federal Bank of the Pacific Pierce County Bank of the West Peoples Bank Bank of Washington Port of Silverdale BECU Portage Bank Capitol Land Trust PUD No. 1 of Clallam County Center for Natural Lands Management Puyallup School District Central Kitsap School District Quinault Nation Enterprise Board City of Enumclaw Security State Bank City of Kent Snohomish County City of Tacoma South Whidbey Parks&Recreation District City of University Place Sportsmen's National Land Trust City of Yakima Sunwest Bank Columbia Bank TAPCO Credit Union Commencement Bank Thurston County Community National Bank&Trust Thurston First Bank CUSG/CU Services Group Timberland Bank First Federal Trust for Public Lands Forterra Tukwila School District Grays Harbor County Umpqua Bank Great Peninsula Conservancy UniBank Harborstone Credit Union US Bank Heritage Bank US Department of Agriculture—Forest Service HomeStreet Bank US Department of the Interior(DOI-AVSO) Hood Canal Salmon Enhancement Group Washington Department of Fish and Wildlife Jefferson County Washington Department of Natural Resources Jefferson Land Trust Washington Farm Service Agency Key Bank Washington Parks&Recreation Commission Kitsap Bank Washington Business Bank Kitsap Credit Union Washington Trust Bank Mountain Pacific Bank WCLA Credit Union Native American Bank,NA WSECU Nature Conservancy of Washington Wells Fargo Bank Nisqually Land Trust Wells Fargo Wealth Management North Kitsap School District Whidbey Camano Land Trust North Olympic Land Trust Yakima County Public Services Northwest Christian Credit Union Zions First National Bank Northwest Farm Credit Services Various Attorneys,Accountants&Individuals HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 36 SH&H File 16344-25 Chad C.Johnson,MAI ASSUMPTIONS AND LIMITING CONDITIONS Unless noted otherwise in the body of the report,this appraisal is subject to the following assumptions and limiting conditions. 1. No responsibility is assumed for legal or title considerations. Title to the subject property is marketable and free and clear of all liens,encumbrances,encroachments,easements and restrictions. The property is assumed to be under responsible ownership and competent management and is assumed available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that impact the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that impact the value of the property. 4. Information, public and private, relevant to sale price indications is assumed to be correct. 5. The property is in compliance with all applicable building, environmental,zoning, and other federal, state and local laws, regulations and codes. 6. Information, estimates and opinions contained in the report, obtained from others, including third-party sources,are assumed to be reliable and have not been independently verified and no warranty is given for accuracy. 7. An appraisal is inherently subjective and represents my opinion as to the value of the property appraised. 8. The conclusions stated in my appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 9. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 10. When environmental impact studies are not provided in conjunction with the appraisal, I reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 37 SH&H File 16344-25 Chad C.Johnson,MAI ASSUMPTIONS AND LIMITING CONDITIONS 11. Unless otherwise agreed to in writing, I am not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 12. I have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 13. No opinion is expressed as to the value of subsurface oil,gas or mineral rights,if any,and I have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in my appraisal. 14. I accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability, and civil, mechanical,electrical, structural and other engineering and environmental matters. 15. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 16. Neither all nor any part of the contents of this report(especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the person signing the report. 17. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 38 SH&H File 16344-25 Chad C.Johnson,MAI ASSUMPTIONS AND LIMITING CONDITIONS 18. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 19. No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 20. The current purchasing power of the dollar is the basis for the value stated herein. I have assumed that no extreme fluctuations in economic cycles will occur. 21. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by my analysis will vary from my estimates, and the variations may be material. The Americans with Disabilities Act(ADA)became effective in the 1990s. I have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. I claim no expertise in ADA issues,and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner's financial ability with the cost to cure the non-conforming physical characteristics of a property, a specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 22. No studies have been provided to me indicating the presence or absence of hazardous materials on the subject property or in the improvements, and my valuation is predicated upon the assumption that the subject property is free and clear of any environmental hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property and the person signing the report shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because I am not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 39 SH&H File 16344-25 Chad C.Johnson,MAI ASSUMPTIONS AND LIMITING CONDITIONS 23. The person signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. I am not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 24. The appraisal report and the value conclusion within the appraisal is predicated upon the assumption that the satisfactory completion of construction, repairs or alterations will be performed in a workmanlike manner. 25. It is expressly acknowledged that in any action which may be brought against SH&H Valuation and Consulting,or their respective officers,owners,managers,directors,agents, subcontractors or employees (the "SH&H Valuation and Consulting Parties"), arising out of, relating to, or in any way pertaining to this engagement, the appraisal reports, or any estimates or information contained therein,the"SH&H Valuation and Consulting Parties" shall not be responsible or liable for an incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with gross negligence. It is further acknowledged that the collective liability of the"SH&H Valuation and Consulting Parties" in any such action shall not exceed the fees paid for the preparation of the appraisal report unless the appraisal was fraudulent or prepared with gross negligence. Finally, it is acknowledged that the fees charged herein are in reliance upon the foregoing limitations of liability. 26. SH&H Valuation and Consulting, an independently owned and operated company, has prepared the appraisal for the specific purpose stated elsewhere in the report. The intended use of the appraisal is stated in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless I provide my prior written consent. I expressly reserve the unrestricted right to withhold my consent to your disclosure of the appraisal report(or any part thereof including,without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless my prior written consent is obtained,no third party may rely on the appraisal report (even if their reliance was foreseeable). HOUGH PROPERTY,1 125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 40 SH&H File 16344-25 C had C.Johnson,MAI ASSUMPTIONS AND LIMITING CONDITIONS 27. The conclusions contained in this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. SH&H Valuation and Consulting and the undersigned are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While I am of the opinion that my findings are reasonable based on current market conditions, I do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, I assume competent and effective management and marketing for the duration of the projected holding period of this property. 28. Any prospective value estimates presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph,several events may occur that could substantially alter the outcome of my estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders,fire and other physical destruction,changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 29. The value estimate herein is subject to these and to any other assumptions or conditions set forth in the body of this report, but which may have been omitted from this list of Assumptions and Limiting Conditions. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 41 SH&H File 16344-25 Chad C.Johnson,MAI EXTRAORDINARY ASSUMPTIONS AND/OR HYPOTHETICAL CONDITIONS 1. Extraordinary Assumption: "an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions."5 Extraordinary assumptions assume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in analysis. There are no extraordinary assumptions relevant to this appraisal. 2. Hypothetical Conditions: "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. "6 A hypothetical condition assumes conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in analysis. There are no hypothetical conditions relevant to this appraisal. 5 Uniform Standards of Professional Appraisal Practice, 2024 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C.,p.4. 6 lbid,p.4. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 42 • SH&H File 16344-25 Chad C.Johnson,MAI ADDENDA -:I fi,sTAT4,6, STATE OF WASHINGTON flASN1061011StAiF OfPARIMINI OF . ta DEPARTMENT OF LICENSING - BUSINESS AND PROFESSIONS DIVISION CIL LICENSING 4' THIS CERTIFIES THE PERSON OR BUSINESS NAMED BELOW IS AUTHORIZED AS A ::1 : ) I:I CERTIFIED GENERAL REAL ESTATE APPRAISER SUPERVISOR V, CHAD CARTER JOHNSON l' f 1 , .). 1101662 , 03/31/2005 12/15/2026 ) 'I License Number' ------ Issue Date Expiration Date larcus J Clasper,Director --' ,I — — — — - - • --:.--.::•---,,:1=-:":7:... ..._.i.t.i..-3_ American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) Tirk First lAnsurenx "n Compeny ALTA COMMITMENT FOR TITLE INSURANCE ncc issued by FIRST AMERICAN TITLE INSURANCE COMPANY NOTICE IMPORTANT—READ CAREFULLY: THIS COMMITMENT IS AN OFFER TO ISSUE ONE OR MORE TITLE INSURANCE POLICIES. ALL CLAIMS OR REMEDIES SOUGHT AGAINST THE COMPANY INVOLVING THE CONTENT OF THIS COMMITMENT OR THE POLICY MUST BE BASED SOLELY IN CONTRACT. THIS COMMITMENT IS NOT AN ABSTRACT OF TITLE, REPORT OF THE CONDITION OF TITLE, LEGAL OPINION, OPINION OF TITLE, OR OTHER REPRESENTATION OF THE STATUS OF TITLE. THE PROCEDURES USED BY THE COMPANY TO DETERMINE INSURABILITY OF THE TITLE, INCLUDING ANY SEARCH AND EXAMINATION, ARE PROPRIETARY TO THE COMPANY,WERE PERFORMED SOLELY FOR THE BENEFIT OF THE COMPANY,AND CREATE NO EXTRACONTRACTUAL LIABILITY TO ANY PERSON,INCLUDING A PROPOSED INSURED. THE COMPANY'S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUE A POLICY TO A PROPOSED INSURED IDENTIFIED IN SCHEDULE A IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THIS COMMITMENT. THE COMPANY HAS NO LIABILITY OR OBLIGATION INVOLVING THE CONTENT OF THIS COMMITMENT TO ANY OTHER PERSON. COMMITMENT TO ISSUE POLICY Subject to the Notice; Schedule B, Part I— Requirements; Schedule B, Part II— Exceptions; and the Commitment Conditions,First American Title Insurance Company,a Nebraska corporation(the"Company"),commits to issue the Policy according to the terms and provisions of this Commitment. This Commitment is effective as of the Commitment Date shown in Schedule A for each Policy described in Schedule A,only when the Company has entered in Schedule A both the specified dollar amount as the Proposed Amount of Insurance and the name of the Proposed Insured. If all of the Schedule B, Part I —Requirements have not been met within 180 days after the Commitment Date, this Commitment terminates and the Company's liability and obligation end. COMMITMENT CONDITIONS 1. DEFINITIONS a. "Discriminatory Covenant":Any covenant,condition,restriction,or limitation that is unenforceable under applicable law because it illegally discriminates against a class of individuals based on personal characteristics such as race, color, religion,sex,sexual orientation,gender identity,familial status,disability,national origin,or other legally protected class. b. "Knowledge"or"Known":Actual knowledge or actual notice,but not constructive notice imparted by the Public Records. c. "Land": The land described in Item 5 of Schedule A and improvements located on that land that by State law constitute real property. The term"Land" does not include any property beyond that described in Schedule A,nor any right, title, interest,estate,or easement in any abutting street,road,avenue,alley,lane,right-of-way,body of water,or waterway,but does not modify or limit the extent that a right of access to and from the Land is to be insured by the Policy. d. "Mortgage":A mortgage,deed of trust,trust deed,security deed,or other real property security instrument,including one evidenced by electronic means authorized by law. e. "Policy":Each contract of title insurance,in a form adopted by the American Land Title Association,issued or to be issued by the Company pursuant to this Commitment. f. "Proposed Amount of Insurance": Each dollar amount specified in Schedule A as the Proposed Amount of Insurance of each Policy to be issued pursuant to this Commitment. g. "Proposed Insured":Each person identified in Schedule A as the Proposed Insured of each Policy to be issued pursuant to this Commitment. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part I—Requirements;and Schedule B,Part 1I—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. A%SOC IAnUN Reprinted under license from the American Land Title Association. Page 1 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) h. "Public Records":The recording or filing system established under State statutes in effect at the Commitment Date under which a document must be recorded or filed to impart constructive notice of matters relating to the Title to a purchaser for value without Knowledge.The term"Public Records"does not include any other recording or filing system,including any pertaining to environmental remediation or protection, planning, permitting, zoning, licensing, building, health, public safety,or national security matters. i. "State":The state or commonwealth of the United States within whose exterior boundaries the Land is located.The term "State"also includes the District of Columbia,the Commonwealth of Puerto Rico,the U.S.Virgin Islands,and Guam. j. "Title":The estate or interest in the Land identified in Item 3 of Schedule A. 2. If all of the Schedule B,Part I—Requirements have not been met within the time period specified in the Commitment to Issue Policy,this Commitment terminates and the Company's liability and obligation end. 3. The Company's liability and obligation is limited by and this Commitment is not valid without: a. the Notice; b. the Commitment to Issue Policy; c. the Commitment Conditions; d. Schedule A; e. Schedule B,Part I—Requirements; f. Schedule B,Part II—Exceptions;and g. a counter-signature by the Company or its issuing agent that may be in electronic form. 4. COMPANY'S RIGHT TO AMEND The Company may amend this Commitment at any time. If the Company amends this Commitment to add a defect, lien, encumbrance,adverse claim,or other matter recorded in the Public Records prior to the Commitment Date,any liability of the Company is limited by Commitment Condition 5.The Company is not liable for any other amendment to this Commitment. 5. LIMITATIONS OF LIABILITY a. The Company's liability under Commitment Condition 4 is limited to the Proposed Insured's actual expense incurred in the interval between the Company's delivery to the Proposed Insured of the Commitment and the delivery of the amended Commitment,resulting from the Proposed Insured's good faith reliance to: i. comply with the Schedule B,Part I—Requirements; ii. eliminate,with the Company's written consent,any Schedule B,Part II—Exceptions;or iii. acquire the Title or create the Mortgage covered by this Commitment. b. The Company is not liable under Commitment Condition 5.a. if the Proposed Insured requested the amendment or had Knowledge of the matter and did not notify the Company about it in writing. c. The Company is only liable under Commitment Condition 4 if the Proposed Insured would not have incurred the expense had the Commitment included the added matter when the Commitment was first delivered to the Proposed Insured. d. The Company's liability does not exceed the lesser of the Proposed Insured's actual expense incurred in good faith and described in Commitment Condition 5.a.or the Proposed Amount of Insurance. e. The Company is not liable for the content of the Transaction Identification Data,if any. f. The Company is not obligated to issue the Policy referred to in this Commitment unless all of the Schedule B, Part I— Requirements have been met to the satisfaction of the Company. g. The Company's liability is further limited by the terms and provisions of the Policy to be issued to the Proposed Insured. 6. LIABILITY OF THE COMPANY MUST BE BASED ON THIS COMMITMENT; CHOICE OF LAW AND CHOICE OF FORUM a. Only a Proposed Insured identified in Schedule A,and no other person,may make a claim under this Commitment. b. Any claim must be based in contract under the State law of the State where the Land is located and is restricted to the terms and provisions of this Commitment. Any litigation or other proceeding brought by the Proposed Insured against the Company must be filed only in a State or federal court having jurisdiction. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part I—Requirements;and Schedule B,Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. c,.or IMIO. Reprinted under license from the American Land Title Association. Page 2 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) c. This Commitment, as last revised, is the exclusive and entire agreement between the parties with respect to the subject matter of this Commitment and supersedes all prior commitment negotiations,representations,and proposals of any kind, whether written or oral,express or implied,relating to the subject matter of this Commitment. d. The deletion or modification of any Schedule B, Part II—Exception does not constitute an agreement or obligation to provide coverage beyond the terms and provisions of this Commitment or the Policy. e. Any amendment or endorsement to this Commitment must be in writing and authenticated by a person authorized by the Company. f. When the Policy is issued, all liability and obligation under this Commitment will end and the Company's only liability will be under the Policy. 7. IF THIS COMMITMENT IS ISSUED BY AN ISSUING AGENT The issuing agent is the Company's agent only for the limited purpose of issuing title insurance commitments and policies.The issuing agent is not the Company's agent for closing,settlement,escrow,or any other purpose. 8. PRO-FORMA POLICY The Company may provide,at the request of a Proposed Insured,a pro-forma policy illustrating the coverage that the Company may provide.A pro-forma policy neither reflects the status of Title at the time that the pro-forma policy is delivered to a Proposed Insured,nor is it a commitment to insure. 9. CLAIMS PROCEDURES This Commitment incorporates by reference all Conditions for making a claim in the Policy to be issued to the Proposed Insured. Commitment Condition 9 does not modify the limitations of liability in Commitment Conditions 5 and 6. 10. CLASS ACTION ALL CLAIMS AND DISPUTES ARISING OUT OF OR RELATING TO THIS COMMITMENT, INCLUDING ANY SERVICE OR OTHER MATTER IN CONNECTION WITH ISSUING THIS COMMITMENT, ANY BREACH OF A COMMITMENT PROVISION, OR ANY OTHER CLAIM OR DISPUTE ARISING OUT OF OR RELATING TO THE TRANSACTION GIVING RISE TO THIS COMMITMENT, MUST BE BROUGHT IN AN INDIVIDUAL CAPACITY.NO PARTY MAY SERVE AS PLAINTIFF, CLASS MEMBER, OR PARTICIPANT IN ANY CLASS OR REPRESENTATIVE PROCEEDING. ANY POLICY ISSUED PURSUANT TO THIS COMMITMENT WILL CONTAIN A CLASS ACTION CONDITION. FIRST AMERICAN TITLE INSURANCE COMPANY 1 First American Way,Santa Ana,CA 92707 By: Kenneth D.DeGiorgio,President By: Lisa W.Comehl,Secretary This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part 1—Requirements;and Schedule B,Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. ASSOCIATION Reprinted under license from the American Land Title Association. Page 3 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) Transaction Identification Data,for which the Company assumes no liability as set forth in Commitment Condition 5.e.: Issuing Agent: Horizon Title Group,Inc. Issuing Office:2424 South Park Avenue,PO Box 598 Port Townsend,WA 98368 Issuing Office's ALTA®Registry ID: 1167581 Loan ID Number: Commitment Number:05-5234-TTJ Issuing Office File Number:05-5234-TTJ Property Address: 1125 Toandos Road,Quilcene,WA 98376 SCHEDULE A 1. Commitment Date: September 16,2024 8:00 AM 2. Policy to be issued: AMOUNT PREMIUM TAX TOTAL a. 2021 ALTA Owner's $ $0.00 S $0.00 Standard Policy PROPOSED INSURED: Northwest Watershed Institute Inc.,a Washington nonprofit corporation The estate or interest to be insured: fee simple 3. The estate or interest in the Land at the Commitment Date is: fee simple 4. The Title is,at the Commitment Date,vested in: Thomas J.Hough,a single man 5. The Land is described as follows: See Exhibit A attached hereto and made a part hereof. HORIZON TITLE GROUP,INC. FIRST AMERICAN TITLE INSURANCE COMPANY 2424 South Park Avenue,PO Box 598,Port Townsend, 1 First American Way,Santa Ana,CA 92707 WA 98368 Telephone: (360)385-1322 b `' )4,; Countersigned y: HeffizeNTitle Group By: Kenneth D.DeGiorgio,President By: Rochelle Lewis Lisa W. Cornehl, Secretary Horizon Title Group,Inc.,License#603575523 This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B. Part I—Requirements;and Schedule B,Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICANThe use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND ri m ALTA members in good standing as of the date of use.All other uses are prohibited. ^N•a 1c'e'Ioh Reprinted under license from the American Land Title Association. Page 4 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) SCHEDULE B,PART I—Requirements All of the following Requirements must be met: 1. The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land.The Company may then make additional Requirements or Exceptions. 2. Pay the agreed amount for the estate or interest to be insured. 3. Pay the premiums,fees,and charges for the Policy to the Company. 4. Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured,or both,must be properly authorized,executed,delivered,and recorded in the Public Records. Duly authorized and executed Deed from Thomas J.Hough,a single man,to Northwest Watershed Institute Inc.,a Washington nonprofit corporation,to be executed and recorded at closing. 5. Lien of the real estate excise sales tax and surcharge upon any sale of said Land,if unpaid. 6. General Taxes.The first portion$441.77 becomes delinquent after April 30th.The second portion$441.17 becomes delinquent after October 31 st. Year: 2024 Amount Billed: $882.94 Amount Paid: $882.94 Amount Due:$0.00,plus interest and penalty,if delinquent Tax Account No.:701 153 003 Assessed value: $110,654.00 PID No.: 17274 7. The Company has been asked to issue a policy(ies)without disclosure of the liability amount.This commitment shall be effective only when the amount of the policy(ies)committed for has been inserted in Schedule"A"hereof.The forthcoming policy must be issued in an amount at least equal to the full value of the estate insured in accordance with our rating schedule on file in the office of the Washington State Insurance Commissioner. The Company may have further requirements if the undisclosed amount to be insured exceeds the current assessed valuation. 8. The Land described in this commitment appears to be residential in nature and may be subject to the provisions of RCW 6.13.010,et seq.(homestead statute)if the Land is occupied as a primary residence.If the Land is occupied as a primary residence,RCW 6.13.060 requires that all documents conveying or encumbering the Land must be executed by each spouse or domestic partner,individually.Alternatively,the company will accept a deed identifying the non-vested spouse occupying the Land as the Grantor and the vested spouse as the Grantee.This applies if the non-vested spouse currently resided in the residence or if the vested spouse resides in the residence and the non-vested spouse doesn't reside in the residence but has lived there within the previous 6 months.In the event that the company receives documents to insure that are not executed as required,the company may be unable to record or to insure the transaction.Please contact your Title Officer if you have any questions. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part I—Requirements;and Schedule B,Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. ASSO(IMION Reprinted under license from the American Land Title Association. Page 5 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) SCHEDULE B,PART II—Exceptions Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This Commitment and the Policy treat any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted,repudiated,removed, and not republished or recirculated. Only the remaining provisions of the document will be excepted from coverage. The Policy will not insure against loss or damage resulting from the terms and conditions of any lease or easement identified in Schedule A,and will include the following Exceptions unless cleared to the satisfaction of the Company: 1. Any defect,lien,encumbrance,adverse claim,or other matter that appears for the first time in the Public Records or is created, attaches,or is disclosed between the Commitment Date and the date on which all of the Schedule B,Part I-Requirements are met. 2. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records. 3. Any facts,rights,interest,or claims which are not shown by the Public Records but which could be ascertained by an inspection of the Land or by making inquiry of persons in possession thereof. 4. Easements,claims of easements,or encumbrances which are not shown by the Public Records. 5. Discrepancies,conflicts in boundary lines,shortages in area,encroachments,or any other facts which a correct survey would disclose,and which are not shown by the Public Records. 6. (a)Unpatented mining claims;(b)Reservations or exceptions in patents or in Acts authorizing the issuance thereof;(c)Water rights,claims or title to water,ditch or ditch right,whether or not the matters excepted under(a),(b),or(c)are shown by the Public Records;(d)Indian Tribal Codes or Regulations,Indian Treaty or Aboriginal Rights,including easements or equitable servitudes. 7. Any lien or right to a lien for services,labor,equipment or material or medical assistance,unless such lien is shown by the Public Records as of Date of Policy. 8. Any service,installation,connection,maintenance,construction,tap or reimbursement charges/costs for sewer,water,garbage or electricity. 9. Any claim to(a)ownership of or rights to minerals and similar substances,including but not limited to ores,metals,coal, lignite,oil,gas,uranium,clay,rock,sand,and gravel located in,on,or under the Land or produced from the Land,whether such ownership or rights arise by lease,grant,exception,conveyance,reservation,or otherwise;and(b)any rights,privileges, immunities,rights of way,and easements associated therewith or appurtenant thereto,whether or not the interests or rights excepted in(a)or(b)appear in the Public Records. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part 1—Requirements;and Schedule B,Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. A1'°CIATION Reprinted under license from the American Land Title Association. Page 6 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) 10. Easement,including terms and provisions contained therein: Disclosed by: Decree entered in Jefferson County Superior Court Cause No. 7222 For:Ingress and egress over road as it existed on October 06, 1966 11. Easement,including terms and provisions contained therein: Recorded: December 30, 1969 Recording No.:203763 For:Road purposes 12. Easement,including terms and provisions contained therein: Recorded:June 12, 1990 Recording No.:331591 For:Underground electric transmission and/or distribution system 13. Easement,including terms and provisions contained therein: Recorded: September 19,2011 Recording No.:562353 For:Electric transmission and/or distribution system This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part I—Requirements;and Schedule B,Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. ASSnctAEION Reprinted under license from the American Land Title Association. Page7of9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) EXHIBIT"A" The Land referred to herein below is situated in the County of Jefferson,State of Washington and is described as follows: Tract 4,described as follows: That portion of the East 1/2 of the Southwest 1/4 of Section 15,Township 27 North, Range 1 West,W.M., described as follows: Beginning at the center of said Section; thence South along the North and South center line of said Section,758 feet to the True Point of Beginning; thence West a distance of 752.77 feet to intersect the Easterly line of that certain tract of land sold to Gene Ray Myers by Real Estate Contract recorded March 8, 1971,Auditor's No.208162; thence along said Myers Tract,South 15°42' S4"East, 19.22 feet; Thence continue along said Easterly line of Myers Tract,South 33°56' 38"East,209.75 feet; . thence continuing along said Easterly line of Myers Tract,South 34°96' 24"East, 190.24 feet; thence East a distance of 521.44 feet to intersect the North and South center line of said Section 15 at a point 350 feet South of the Point of Beginning; thence North to the Point of Beginning. Situate in the County of Jefferson,State of Washington. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B,Part I—Requirements;and Schedule B,Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. ASSOCIATION Reprinted under license from the American Land Title Association. Page8of9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) INFORMATIONAL NOTES 1. The Company requires the proposed insured to verify that the Land covered by this commitment is the Land intended to be conveyed in this transaction.The description of the Land may be incorrect,if the application for title insurance contained incomplete or inaccurate information.Notify the Company well before closing if changes are necessary.Closing instructions must indicate that the legal description has been reviewed and approved by all parties. 2. As of the date hereof there are no matters against Northwest Watershed Institute Inc.,a Washington nonprofit corporation, which would appear as exceptions in the policy to issue,except as shown herein. 3. Abbreviated Legal Description: PTN El/2 SW S15 T27 R1 W(TAX 2) 4. The vestee(s)herein acquired title by deed recorded July 10, 1991 under Auditor's File No.341821 .pdf).The record discloses no other conveyances of the property herein described within the last 24 months. 5. The situs address of the Land herein described is: 1125 Toandos Road, Quilcene,WA 98376 6. Map 7. Combined Exception Documents 8. RECORDING PACKAGE INSTRUCTIONS: Jefferson,Clallam,Kitsap,Mason,and San Juan County recording packages must be sent to the following address: Horizon Title Group,Inc. 2424 South Park Avenue Port Townsend,WA 98368 Pacific County recording packages must be sent to the following address: Horizon Title Group,Inc. 1308 37th Street Seaview,WA 98644 9. PLEASE NOTE: THERE WILL BE A FEE OF$5.00+TAX PER E-RECORDED DOCUMENT INCLUDED ON ALL RECORDING INVOICES. 10. NOTE: A FEE MAY BE CHARGED UPON THE CANCELLATION OF THIS COMMITMENT PURSUANT TO WASHINGTON STATE INSURANCE CODE AND THE FILED RATE SCHEDULE OF THIS COMPANY. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part I—Requirements;and Schedule B,Part 11—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. A5.°',^'o� Reprinted under license from the American Land Title Association. Page 9 of 9 } _ TRANSAMERICA T ' coo.y .41a. TITLE INSURANCE COMPANY rrn� ` � OF C�fi-riry.L NE • (,•. atFF uy,'.ci 3 i8 • 2i ER.. i 7!',•' •• fain Foil mom,AQBQyEITof" 1391 Jl0. 10. -: -t -.T 4 _•7 JEFFERSON TITLE COMPANY, INC. R1P. c z . - 37546-R/Ef658D SM --- - 41:FcPEGU'°UN u r r - - -' • it .i NNWRECORDED actors to §. THOMAS J BOOGB • : � . P.O. SOY 92 n,.sr.,zr.._.._._..._Nordland, WA 98358 _ _....._ `. Rolntery warranty • .• w: ,;i`- s+ THE GRANTOR GLENN R. WOOD. Trustee of DIS TMENT$, a Trust }': isamlisomoidontiosd TEN DOLLARS AND OTHER • - CONSIDERATION "' in kid pfid.me 4od osFnob to4,.• THOMAS J. HOUGB, a si a • �V'Y , Me following deocFrled real awtw shunted in the Oorsb d Je(r__,,,, ,? onmot Wasdlnpan: iiY.. - t - SEE EXHIBIT 'A' AS ATTACHED HEREANDO HEREOF. -- ` Fh` SUBJECT TO: Easement established i "dec a entered in Jefferson County Superior Court Cause No. 7222; Ea en un Auditor's File No. 2037631 x, r Easement under Auditor's File . 3 159 . -.' =•b. - - • • sl )fix6Qaq 9Y . g r., pR,dd '1.i0 • • "r" T't Oab field._._ • S1 scos = f • D.rd...__. July 3__ .... ... n_91... a DISCOVERY INVESTMENTS __� _Fa GLENN:R."WOOD, Trustee • r P HI OPJ ON ) thi ay of .7u�y , 19 91, personally appeared nn lt.W d to me known to be the individual_ descri i 'and who executed the within and foregoing instrument. �gn•.oat ".stated that he was authorized to execute the instrument " fi2,y'� ksowledged it as the _ _..Trustee of DISCOVERY'INVFST1rtrrg • e.•Oct. to the free and voluntary.act of :- ...Zen .4:arty for the uses and purposes entioned in the instrument. '— 4Sit' b y�� ♦ •/ LtAtt-, i-C t-n /1/OYL1D`1 • C ary Public in and for th State . " _ �U� (] VCL 341 �- cr8 of Washington, residing at.C.f+L�r44Cs r1 My.commission expires: /0IG/yam !.i-'! My,ppomtmem eap.... . . _ - t P g.10 - - Form 3t59-4 sr..ug .ram..` .•� _ • yr�i t ,i'^�. • • ♦{; ,3z • �; F'•� ',-.4 � rim Norf '•- , • t ti • • �� i • SIBIBIT a . Tract 4, described as follows . . That portion of the East 1/2 of. thv t 1/4 of Section 1S, a Township 27 North, Range L Yest. . ribed as follows. • J `� • Beginning at the center of- ee on • thence South along the North t center line of said Section. <_ 758 feet to the True Point B Ili - .— . ' thence Nest a distance of/ S2 11 f to intersect the Easterly line of that certain tract of I sold to Gene Ray Myers by Real Estate . Contract recorded March . 1971, A ditor's No. 208162; - I thence along said M ern ra ooth 15' 42' Sew East. 19.22 feet; thence continue a "on al Easterly line of Myers Tract. South 33' S6' 38' East, 209.75 ii - thence continua g a,4�n na Easterly line of Myers Tract. South 34' 06' 24' East. 1 0. 4 es thence East a . enc. of.5 .44 feet to- intersect the North and South ! center line f s act n 1S at a point 350 feet South of the Point . of Beginning thence North th Polo f Beginning. • Situate in the Cou o Jeff . State of Washington k4. - 1 .:�559 - '' • • • • 208162 Pioneer Nafiorial 'Title Insurance Company REAL ESTATE CONTRACT • • Wa.N,NOTON TtTa[ 13.1.I0M T'EM CON 9.ACT,made nod entered into thb 14th thy of December, 1970 • ietw.ea Lowell R. Day and Edith Day, his wife, . • • iadnaftu m&d the.mil,"and Gene Jay Myers and Elizabeth F. Myers, his wife, • hereinafter called the" srcbese,• W1TNFSSETH:That the miler agrees to en to the purchaser and the purchaser area to purchase from the eau the folbwlag drescd tot estate,with the appurtenances,In Jefferson County,Slats of Washington: • A tract of land situated in the east half of the Southwest Quarter of Section 15, Township 27 North, Range 1 West, W,M„ Jefferson County. Washington, described as: Beginning at the Northwest corner of said subdivision' thence South 89 40130"Fast 378.13 feet along the North line of said subdivision; thence South 5°14'56" East 218,89 feet; thence South 14°43'51. East • 202.05 feet; thence South 24°41'281e East 173.94 feet; thence South - 15°42,54" East 218.66 feet; thence South 33°56'38" Fast 209.75 feet: thence South 34°06'24" East 359.00 feet; thence South 25°45'10" East 350.50 feet; thence South 19°46'48" East 65.96 feet; thence West • 1080.54 feet to the West line of, said subdivision; thence North 0012}'556" {Erarst along the west line of said subdivision 1633.00 feet The terect'a°an-iXoa$°Il!-�0II cIIdt�GP 'i.B fallow.The purchase prim is Eighteen thousand seven hundred fifty and no/100(318750,00 )DotLe,,of.btc! Vive thousand and no/100 -($5000.00 )Whirl bare been paid,the receipt whereof b hereby acknowledged,and the balance of add purchase prize shall he paid as follows: `" One hundred thirty-five and no/100 -0135,00 )noDaa (f)., a more at purchaser's option,so 05 before the 1st day of April s 19 71 sad One hundred thirty-five and no/l00 (1135.00 )Dot1a e err wore at purchaser's option,on or before the let day of each succeeding Wender tooth unto the balm of mid par:bae prim shall have been fully pal!-the purchaser further area to pay interest on the diminishing balance of said purchase prize •,� a'y nae o' eight pee one per annum from the 1st day of March •lip 71 • wbkh interest shall be deducted from each lutallmeot payment and the halanm of each payment applied In reduction of prladpal AD payments to be made hereunder.ban be made at OLYMPIC INVESTMENTS, Chimacum, Wash., 98325 er al each other place.no the seller nay direct In writing. grt (l • u if t0di-Pt 5 CO'i1C 5_TAX PO COIINSY 1'ttJ /r0 Inthb contract,"date of d 71 • C�,4 • A.referred to dosing"shall be )torch !• 19 (1)The purchase aeumn and auto to pay before delinquency ell tares and assessments that may as between grantor and grantee breams become►lieu on said peal estate;and if by the terms of this cootnct the purchaser has uwmed payment of any mortgage, meted or other encumbrance,or has assumed payment of or agreed to purchase subject to,any tun or assessments now a lien on said nai estate,the purchaer agrees to pay the same before delinquency. (1)'The purchaser agrees,until the purchase price Is fully paid,to keep the holding,now and hereafter placed on said reel estate beamed to the actual cash value detect(salon loss or damage by both fire sod windstorm In a company acceptable to the seller and foe • the aebe,',smells,as his Interest may appear,zed to pay all premiums therefor and to deliver all policies and marvels thereof to the'elier. (3)Tbu purchaser agrees that furl Inspection of said real estate bus been made and that neither the sales or his assigns shall he held to soy revenant reverting the condition of any improvements thereon nor shall the purchaser or seller or the assigns of either be held to ay comment or agreement for alterations,Improvements or repairs unless the covenant or agreement relied on is contained heroin or In bo welding ad attached to and mode a part of this contract. ' The e purchaser assumes all hazards of damage to or destruction of any Improvements now on said real estate or her iter paced thereo,and of the taking of said real estate or my part thereof for public use;and agrees that no ads damage,destruction or taking shall constitute•route of coasldcratioo.In case any port of sold real estate Is ukco for public use,the portion of the condemnation award remaining after payment of eeasonablee expenses of procuring the same shall tic paid to the seller and apphed as payment on the purchase price herein unless the seller elects to allow the purchaser to apply all or a portion of such tondemnatioa.wad so the rebuiding or restora- tion of any Impeoscmento damaged by such taking.in ease of damage or destruction from a peril Insured against,the proceeds of such laeoeunce remainin;after payment of the reasonable expense of procuring the some shall be devoted to the restoration or rebuilding of such i.provements within a reasonable time,unless purchaser elects that said proceeds than be paid to the abler for applicetlon oa the madam price buds. (S)no miler has delivered,or agrees to deliver within IS days et!the dote of riming,a purchaser's policy of title insurance V daadand form,o,a mmmltmmt thereto,issued by sasses.v.,w.,,eau n c,,.u.a ra.....,i soelee the purchase to the full amount of mid puenbae price against loss or damage by reason of defect In miles'+title to said real prate asof the date of doling and cotining no taoprfou other than the following: a- Rioted general exceptions appeufeg in said policy farm; • b.Lieu or ensbronco which by the terms of this mntrad the por hale,is to sesame,or as m which tha rmeryaao hereunder L to to made subject;and e.sty misting mound or motoacta under which miler b purchasing said col mute,and nay mrtgage or other obligation,which mDrr iy tble mnlrad area to pay.am.of which for the puzpose oI thin pat mph(S)shall he domed defects la idler'.title - 1 — - r VOL 24 .�.f 188 "tG March Ft, 1971� a t: I .. (d)If seller's tale to said rail elate is subject to an edging contract or contract.under'which seer to purchasing laid'rsal cute, . ev an7 mortgage or other obligation,which seller is to pay,seller agrees to make such payments in accordance with the terms thereof,and von defeat,the purchaser shall bave the right to make any payments necessary to remove the default,and anY payments so made.ben to appfled to the payments next falling doe the seller coder this contract. (7)The aehr.cam,upon reviving full payment of the purrbase price and interest In the manner above specified,to execute and d➢vcr to purchaser■ statutory wsrtanty__fit__1 fillmont deed to raid real estate,excepting any part thereof hereafter taken for public use,free of encumbrances except any that may attach after date of dosing through any person other than the seller,and "abject to the followings Taseaenta and restrictions presently of Public Record. - • • (a)Unless•digereot date is provided for herein,the purchaser shall be evtltled to powmlon of said real estate on date of dosing • and to retain powession so long as purchaser is not to default hereunder.The purchaser roveeaots to keep the buildings and other Improve- - manta on mid real estate to good repair and not to permit waste and not to use,or permit the use of,the real estate for any illegal • purpose.The purchaser covenants to pay all service,installation or corn/ruction charges for water,sever,electricity,garbage or other utility anima furnished to said real estate after the date purrhaur is entitle!to possession. (9)In use the purchaser fins to make any payment herein provided or to maintain iasun,L-e,as herein required,the w➢er may make each payment or elect such insurance,and any amounts so paid by the seer,together with interest at the rate of 10%per annum thereon (ram date of payment uotti repaid,shall be repayable by purchaser on seller's demand,all without prejudice to any other right the seller might have by reason of such default (10)TIme la of the essence of this contract,Sled it is agreed that in rye the purchaser shall fall to comply with or perform any condition or agreement hereof or to snake any payment required hereunder promptly eat the time and in the manner herein required,the ' natter may elect to declare"all the purchasers right hereunder terminated,and upon has doing so,all payments made by the purchaser hereunder and all Improvements placed upon the real entme shall be'tainted to the seller as liquidated damages,sod the seller shall have right to re-enter mod take posses,ioe of the:sal estate.;and on seals,1n>the seller of any default on the part of the putchaser than ba construed as a waiver of any subscqucct dellait. Service upon purchaser of all demands,notices or oils papers with respect to forfeiture and termination of purchaser's rights may be made by United Ste•,bga k postage pre-paid,return receipt requested,directed to the purchaer at his address Lase known to the seller. • (11)Upon of election to bring suit to enforce any covenant of this contract,including suit to collect soy payment requited hereunder,the gran to pay a reasonable turn as attorney n fees and all cost,and expenses In coneeetlon with such suit,which mem dull be Inrhded In any judgment or decree entered in such suit j U the arikr shall bring Slit to peonre an adjudication of the termination of the purchaser's rights hereunder,and judgment Is so watered,the purchaser agrees to pay a reasonable sum as attorney's lees and all costs and openers to connection Mtla such suit,and also the seasonable nw of earthing records to determine the condition of title at the date such suit is commenced,which sums shall be lacluded in any judgment or decree entered in curb suit. IN WITNESS WHEREOF,the partln hereto have minded thin Ins tdate first written shove. I x e1 (out) r • _ _ (axe) STATE OF WASI NGTON, Oana►oI Jefferson • - I 0atkla day pesaagy.ppeaeedhrfonme -Lowe11-R.-Day-and'Edith Day to me known to he the hadhidual a described In and who esacutcd the within and foregoing Instrument,and acknowledged that they iced the sm.as their .- .five and voluntary ad and deed,for the on and putpasc - - t►edn mentioned ONLY fader my hand and odIdal real thia - Cis day d a""`�s""`C, 7( . `\Sn io�, off•` i:,V 4r: •' -- - •••dw7 Public L marl fee(ha I Rallllt(!r o n d - _ . "pafaag r - Chfinactlr>it...,:,.,:r.aj)l`t\�• -_ - - , .�a..3,.. • • A 'd7g `OJIJfd(1-Q)' Wig 07096 a'gavtl apuvI91 1aolay( •a I •- IS 3a5 as^Y 7916 - 8767 I tU00Yl N 0JN'3Sd3 Ear nay Ayr aua0 Ot 31d631•r Huie ) 2` :E Wd B •r 11, I (R�lity(1pp II11 1 771 lDU • 1J011 F's*antkl Tw W°aTll lo)papa Wlarolo Toll wotoeliefeem i .,.. Ii • `-101S311033 334 twin•7IV]t U1 gpu IuangN iaauly t a10r0311 lOt awn].anyet Slot 30-508033i 1V131 • ' eNd 7sr431e 03010133 vo; 24 f 189 March R, 1971i - :_� - - 1111 #wh[[ :Tooll:4, . L .,.4 K ar 1111164Y8Y1.T12iL3 I- JAN 11 670 Fs - 203763 ..�7 • BITTY 1 nrnt v..�..r.., bMrl thy,} Ilr" w u 1 A 8 5 IA I N T �:Grow 'mow..WRed uam.._ V j 2 THZ5 ACRrrl�x7 made and entered into this je'� day of ^I ( 3 December, 1969, by and between Harold Pederson and Ruby A. 4 • Ipedaravn„ husband and wife, Halter A. Pederson and Janet Psdera. , • S ' husband and wife, and Lovell R. Day and Edith Day, husband and r I • -) d wifi, hereinafter known as the party of the first part, and + - 7 Maxie Worl®an, a widow, hereinafter known as party of the second 8 per. 9 The first parties are the owners of the following described 10, real estate, to-wits . 11 The Lest half of the Southwest quarter of Section 15, 22 • Township 21 Forth, Range 1 West, N.M., Jefferson County. • Waahinctni 15 The second party is the owner oft , 14 The Northwest quarter of the Southwest quarter of • 15 said Section 15; 16 Each party i■ desirous of securing an easement over and 17 across the land of the other party as hereinafter est forth , and 18 in consideration of each party granting to the other respective 19 easements, the parties grant as follovsi 20 Party of the first pert hereby grants to party of the second R 1 1� part an easement for road purposes by the most feasible route to 22 oonnect with existing road which runs in a general Northerly and 23 Southerly direction across the east half of the southwest 24 quarter of said section. also an easement to use the existing 25 • rued. 26 Party of the second part grants unto party of the first part 27 en easement for reed purposes over and 'across the Northwest quart r 28 of the southwest quarter of said section, following the geasaal 29 Doors• of an existing road. The road easements herein granted are thirty (70) feet in 31 width, and permanent and perpetual. 32 The road easements herein granted will be used jointly by • • NO �,�L F 1TA T�. o.suxas GAMY,' INLES TAX R►el -afl ......w..1 . i1Kh N 1+• ?s.....nrt. lbcct CO9 TTY V' Ib..Tv....u... r,s.�++w[.• - t lw. - - -- - _-- • • • 1 both the party of the first part and party of the second part, 2 and will connect with each other. 3 All parties making use of the easement agree to share in the 4 upkeep and maintenance of the road in proportion to their uae " 6 thereof. 6 Roth grantors and grantees, their successors and assigns 7 reserve the right to use the said road, AND Easements for ingress 8 and *gross to all such properties as may be owned by the 9 respective parties in either Section 1S or 22, Township 27 North, 10 Range 1, West N.M. , Jefferson County, Washington. 11 IN WITNESS WHEREOF, the parties hereto have hereunto 12 affixed their signaturesthis 3G)iday of December, 1969. 13 14 15 16 (5P 17 18 4 0.„/,, 19 • 20 21 22 �P 23 ✓ !0 24 a`t��-� '�`-i e 25 t 2 �1.,. ► . 9 26 27 28 A roughs plot of the granted easements, not drawn to scale, 29 is attached to show the general course of the respective easements herein conveyed. 30 31 • • 32 ' a suse.e rove .r s•.a gireler Pier Tw+a 16 •.:612 �---�- • • f • • • 4 i 1 , • • I •t ' Osl?Q r L I o) I �.�`'�- 1::. 4 1 • %. I r RZ / Do • • • .Iy.t• • 11 •1� I (Atilt) Mr /5": .• • 0 VOA am/4i//I .t4 V3AJ 1n7.Isrj . . uwwu7A4 • , . . • ,,! • V . M W heIli teh x j'441. S1•)15 /f hi M 's - . ...... .... , . ..• -,..„.. . . . ..... ..lLa• 4 .i . ` • • • 1 �. • • • • • • • :: 4 - . • • • 1.\ i I 5 1 SY Ys l Si.Si. c+ter - L �3 11\ r w a • a 4 % S g! "' i��.1. 4 r !DO ''a sat r TY SAS.11'/d'4. 92140 ..-_t L ;NI ♦ Yl r„ 1 'Zi/ raid AI 4 i v t f5 \tt JA 1," mai, :1I 11 i -- Ste32 /1-t dtf.ld s 3 r• sur A. H 4. t V NI1 11147 KII 11.11'41 r a 77 t I4 ii y� M �—{,) 0 SIT AIS..w.r,v 04.4.1 PVC CAI 0 Sir 4110447 N✓I I A4,7 r,.cn I h 1` 2r...., a. SI..R/NOS 5�}rt 1 Near wwe sour. c.„/rlltr . a♦ S Ic ZZ �.% � 01,f lw rr J✓IO,V/l1es Sr /f M/tt 44,.v rtw 4t Owr.I ,1.77/ Y v r IS. R� Sj Si 7' , 9 - E.E. ANDERSON - PROF LAND SURVEYOR - 5528 KUHN ST., PORT TOWNSEND3 WASH. 98368 (206) 385-1225 Uh,c3Afir 1540,14a 1 ceTnun STANLEY BROOKS flied 5r rrnl ilia .�»19x v� at I. ma,"r"�nE/nom."""5'�r by«r ge r"I'fr"r~ S✓I urr Ir 7.twcrs /w.'D 31617 IRONSIDES r.rFrw+yrIIY IM n*ivawn,NIA.fry Irr 1rr N thebook - Al.4t+te4144 -'Sw.x r/mom*IIJr,�,,,,.., e400.cs BREMERTON, WASH 98310 !.-1 4,i.ESo.., r.pwl, M .�,,,s ,11 7,1 _ -trim BY !ATI 1M MD. —_ /y-7 ,�/,tls�'/� E. .?.�0s.e1oN Skc 5 'Ato 27 N .E' /✓ µ'M f f�9 d/td;'79 p N R9` 40' 30"W 266lS• \(' rv-5' - _.'5 CTf, SEC, IS I� ,i I,F, N,W, COR.e''r SW} PIPE 4- \\\ I t,t id It ' MERIDIAN: EAST WF<T E. S.C.: 15 W, SCALE. Iw _ IDS \i�� • SET. RE-first 11 • SET I-K 2" LINE STAKE \i 1 1 1 w , EAST l 1 Li 5A'_ ('F:CM FT, t, a. 52r182 ' H: SW I. TRACT •F LANE IN ' f S2•.43 I' It E s+ SEC. IS, T 27 N, k I N, N.PI , DESCRINE I I N r. •Eb, AT A POINT T`N THE WEST LINE .7f SAID SUID,WHICH 15 . ' i.. '.:°W 4 424 0 p FROM THE N.W.COIL THEREOF, TM S(:`'1?'`..W _ ` 61G' T^ THE N.R CnR. -I A TRACT r F „A NE E ROAD ESMT, ` DESC. UNDER A.F.N. t24.r;_. T'I. S7.'43.,7 1 ION, N SG; TN- N 2G'10'53"E 17,,' 7; TN. 7'' M' E 1737O', TM, !I'26'4',l I••F ' TH, \\ N50440'S"E 30264' T THE N`E C M .. SAD TRACT °ESC,UNUfI N 33°SE 3P W cc.7S1' TH. N I' I_ `et, 0. 'o,r, AC' I4S,75; TN, WEST ...USA 2' T' THE F fe TCGETNER WITH 6 ,us,l_c T t; . ,. I RECORD. SURVEY FOR: a. N M UP: i. ,w fO LAND SUP',tali C5/S,, Se„ fSy6o MAlI N 26, loffl ': •L ._ __ /. ., _N S1'tG`SOWE p/ C ROAD ESMT. :' 0 • ,_O 3A / . A 7G 443 0 y 714, 7/N 265.4. ro* re 1 70 • • • • • • • 3315 t 9OQU5SS NJ • • 9 t=bwz1S- i I• ..'`jiFGL� 9�. • ' • PUGET EASEMENT FOR UNDERGROUND ELECTRIC SYSTEM d3 P�/f�ER I•br and in consideration of One Dollar ($1-0(1)• o , t t ui$PAq f .i• . valuable consideration, the receipt of which is hereby ackrnMrl y; . •36 r •j ' GLENN R.'WOOD, Trustee of Discovery Investments-_ . •• r• l"Grantor' herein).grants.conveys and ssanants to PI(MT Sot'NT1 INSWE.R A 1.1G1:1T Y. t shington cor- poration("Grantee"herein),for the pugnws hereinafter set forth a perpetual easeme, ante acre and over the-fol- - • lowing described real property lithe"Pmle•rtl"herein) sif=.rt_eZ8g11--County.Wasltintiron. • See Exhibit 'A" attached hereto and by this referees made a part , • hereof. 6\----------/ , Except as may be otherwise set forth herein Grantee's rights.• t (upon that portion of the Property(the-Right- of Way"herein(described as follows: h a to.ol.Wsic__. feet inatadth h her e5*Wldlkan aarh sitioof scenes'. taw 31rse rtisrAl RIs kAl ewo . The easement roadway within. th , re)d-scribed .ptoperty. , NO kiini E3 f • . S4LLS TAX F.E,t' E - • • COUNTY�' L $ RE • . "• Q r�!1"r+•t3f!r�`n-+c�.�At?t(Clfl • . I.Purpose.Grantee shall hav • e t right ct.operate.maintain repair.replace and enlarge an underground electric transmission and/or disbihit)on ay m upon`r nd under the RishtoJ-tt'ay together with all necessary or convenient ap- purtenances therefor.;w ch chi ut are not limited to the fetlewing:underground conduits.cables.communication lines:vaults.manholes.a 'ch s.an rot mews:and semi-buried or ground mounted fatalities.Following the initial coo- • structiot of its fad)iti Gratk@e may time to'time construct such additional facilities as it may require. i Aeces.Grantee shot a he r4ght of access to the Rightof-Way Over and anent the to enable Grantee to mer- . - • else its rights hereunder.pro e-1de . ttGrantee shall compensate Granter for any damage to Property caused bylhe emer- cise of said right of access. 'N • • I • . 1 • 7.Obatnadlceq Lsndh.capl fg. ranee may from time to time remove trees.hushes,or other obstructions within the Right- •. of-Way and mar le et-and grade the Righted-Way to the extent reasonably necessary to cam-nut the purposes set forth in . 4 parattraph t hereott pronideil.t at following any such work.Grantee shall.to the extent reasonably practiable..restore the Right-ufrWa• the iti a Was immediately prior to such work Following the installation of Granters underground facilities. ranter may undertake any ordinary improvements to the landscaping of the Right-of-Way.provided that no trees or , other plc is-stall be..'---Y-,,, pieced thereon which would he unreatonabh expensive or impractical for Grantee to remove and - restore ,/'� s L of Rt�Ad-Way.Grantor reserves the right to use the Right-of-Way for any purpose net inaamWent with the i hta h n gel td.prodded•that grantor shall not contort or maintain any.building or other structure on the Riltht- �Yny tclh w mterferc with the exercise of the.riRlhts herein eranttd:that no digging tunneling or other font d con sin •r an'shall he done on the Property which would disturb the compaction or unearth Grantees facilities on the Rights Vay.lr endanger the lateral support to said facilities:and thatno blasting shall be done-within 15 feet of the Right-d- Way. )) 5.'inde iu y.0V accepting and recording this easement.Grantee agrees to indemnify and hold harmless Grantor Irma any • • i and all claims for injuries and/or damages suffered by any person rilorli may be caused by the Grantee's exercise of dm rights . herein granted:provided,that Grantee shall nut be responsible to Grantor for any injuries and/or damages to any posers S • I caused by acts or omissions of Grantor. , • R AbandonMent.The rights herein granted shall continue until such rime as Grantee ceases to use the Right-of-N'ay for a • period'of five tit sumesive years.in whucti esyntthis easement she.•e•rminate and all rights hereunder shall revert to Gran- tor.provided that no abandonment shall he deemed to have occurred by reason of Grantees-failure to initially install its - a facilities on the Right-of-Way within any period at time from the date hereof. '; 7.Successors and Assigns.The rights red obligations of the paints than inure to the benefit of and be binding upon their i .respective successors aml assigns. .rts v t:, • Jli1! 1 2 v:i 309 FR:i 95 • • DATED this day d 1 Y t((-l-C L - _ .19e10 r ,ra .GRANTOR Glenn R. Wood. Trustee of . pi_s overy Investments • f. • . �STATES),WASHINGTON 1 i SS COUNTY OF ✓ 'n•�`1 (�� • On this cay'personaUy appeared before me Glenn R. Wood j to me :iwn'to Ville individual_described in and wisa executed the within and foregoing instrument,and acknowledged that =•he aigned:Pub;same as hiS free and voluntary act and deed for the uses`,end purposes therein mentioned. GfVE�anbder rrq hung red official seal this � day f .1 o.A$ •.19 /CJ _ v 6 l t t-r.r r L 4�+ CS.V1 r' A_ Y I I��Ll.6� o • • "'t•� XaaN Puhlic In for the State of Washdtngtm • s c r.f 1 residing at l' ti.�la ems„ .. Hy arnmissiOnDtpires___1 /Lf q2 • . STATE OF WASHINGTON 1 - COUNTY OF 1 ( IN7 On this day personally appeared before me to me known to be the individual_described in and oho executed the within and foregoing Instrument.and acknowledged that } _ signed the same as free and voluntary ace and deed foe the uses and purposes therein mentioned. • i f. GIvEN under my hand and official seal Ihis/—t day Of .19 Public In and for the Slate of Washington. I O (.....(,,,,,...‘",...........,Not.adtry ree et My Cottmission pcpires i STATE OF WASHINCTON ,� - • 1 • 001JNiYOF t . • On this day personally appeared before me • to me known to be the individual_desttibed in and echo executed the within and foregoing instrument and acknowledged 1ha1 • signed the same as - free and voluntary act and deed far the uses and purposes therein mentioned. Gll'E"under my ridensial seal this day of Rotary Public in and for the State of Washington. . residing at My sslDn FScptires 1-• . . .., - C---''''''''..-:, - .'• .„ ,- ,.. t STATEOF WASHINGTON 1 . . CORPORATE ACKNOWLEDGMENT 1 Oot.'�'1YOF 1 on this day of • .19__.._'.before me.the undersigned.personally appeared • and to me bnowo)d be the and .respectively.of . I the corporation that executed the foregoing instrument. )1.` and adn. s.nlg ed the said ireixiutent to he the free and ssluntary act and deed of said corporation,foe the Inez and purposes therein rrtehnaen tt.and on oath stated*al authorised to execute the said instrument and that the seal affixed is the corporate snap of said corporation Witness my hand and official seal hereto affixed the day and year first above mitten. • t j ' . Notary Public in and for the State of Was/unpin. t residing at • i My Co mnission 1]rpires VQL 309 ma. 96 • • . . . • ' . . • • .... . . • . - ' . ' . . . . . - . • . . " • • I ..• . ' -.. . • . • , . .. - .. 9001555 NJ . . SW 15-27-1W - • ' • G.R. Wood • -----___\ . . Tract 4, described as foilows: : . • .. . . t That portion of the East half of the Southwest qua tei:-44,f Section 15, Township 27 North, Range I West, w.M.,, -described as follows: Beginning at the center of said Section; thence South, along the North and South centerline of said Section, 758 feet to the True Point of Beginning; thence West, a distance of 752.77 feet to intersect the Easterly line of that certain tract of land sold te Gene kay Myers by Real Estate Contract recorded March 8, 1971, Auditorts-NO. 208162; thence along said Myers Tract, South 15°42'54' East, 19.22 feet; . thence continue along said Easterly line of Myers Tract South 33°5638" East 209.75 feet; thence continuing along said Easterly line of Myers Tract. South 34°06'24" East 190.24 feet; thence Eds1 a distance of 521.44 feet to intersect the North and South centerline of said Section 15, at a point 350 feet South of the Point of Beginning; thence North to the Point of Beginning. Situate in the County of Jeff r$ Stet of Washington. . . . . . . . . . . • • 0 ' ' / • . . . i , . , . - • • ' • • ' ' .. . -, . • • -- . ... . • - 0...,, . . . . •. .. • • . . • . . . ' • . . . , . . . . . . . • . . • - . . • . . . _ .. ' . . ., . ' .*. •-- .. , - •• . . .. . . . . . • .. .: • . . . , . ;• . ' . - • . . . . - • ".. . ' • . to, • • . - . . . • . • . . . • • . . . I i • • , . , . ,• • • EXHIBIT "A" . . .. . 309 97 . . exerrt 562353 PGS : 2 EASE Jefferson County WA Auditor's Office - Donna Eld"TILE CO -No.a Aud,tu- Illi IYY iP11Id.411.1611011.W.NV Ifd hiPi IN till RETURN ADDRESS: Puget Sound Energy,Inc. Attn: ROW Department NO REAL ESTATE 3130 S.38th Street EXCISE TAX REQUIRED Tacoma,WA 98409 JEFFERSON COUNTY TREASURER KO BY:bi.1364414/01/4a4 EASEMENT JEFFERSON TITLE COMPANY has placed this docr_mcnt of record as REFERENCE#: a customer courtesy and accepts no GRANTOR: HOUGH liability for the accuracy or validity GRANTEE: PUGET SOUND ENERGY,INC. of the document. SHORT LEGAL: NE-SW-15.27N-01 W ASSESSOR'S PROPERTY TAX PARCEL: 701-153-003 No Monetary Cbnsiderati©n For and in consideration of One Dollar ($1.00) and other valuable consideration in hand paid, THOMAS J. HOUGH,a single man,(`Grantor herein),hereby conveys and warrants to PUGET SOUND ENERGY,INC., a Washington Corporation ("Grantee" herein), for the purposes hereinafter set forth, a nonexclusive perpetual easement over, under, along across and through the following described real property ('Property' herein) in JEFFERSON County,Washington: TRACT 4-THAT PORTION OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 15, TOWNSHIP 27 NORTH. RANGE 1 WEST, W.M., DESCRIBED AS FOLLOWS: BEGINNING AT THE CENTER OF SAID SECTION; THENCE SOUTH ALONG THE NORTH AND SOUTH CENTER LINE OF SAID SECTION,758 FEET TO THE TRUE POINT OF BEGINNING;THENCE WEST A DISTANCE OF 752.77 FEET TO INTERSECT THE EASTERLY LINE OF THAT CERTAIN TRACT OF LAND SOLD TO GENE RAY MYERS BY REAL ESTATE CONTRACT RECORDED MARCH 8, 1971, AUDITOR'S NO. 208162; THENCE ALONG SAID MYERS TRACT, SOUTH 15'42'54" EAST, 19.22 FEET;THENCE CONTINUE ALONG SAID EASTERLY UNE OF MYERS TRACT,SOUTH 33°58'38"EAST,209.75 FEET;THENCE CONTINUING ALONG SAID EASTERLY UNE OF MYERS TRACT,SOUTH 34"06'24"EAST,190.24 FEET;THENCE EAST A DISTANCE OF 521.44 FEET TO INTERSECT THE NORTH AND SOUTH CENTER UNE OF SAID SECTION 15 AT A POINT 350 FEET SOUTH Of THE POINT OF BEGINNING; THENCE NORTH TO THE POINT OF BEGINNING. SITUATE IN THE COUNTY OF JEFFERSON,STATE OF WASHINGTON. Except as may be otherwise set forth herein Grantee's rights shall be exercised upon that portion of the Property ('Easement Area'herein)described as follows: An Easement Area TEN (10) feet in width having FIVE(5) feet of such width on each side of a centerline described as follows: THE CENTERLINE OF GRANTEE'S FACILITIES AS NOW CONSTRUCTED, TO BE CONSTRUCTED,EXTENDED OR RELOCATED LYING WITHIN THE ABOVE DESCRIBED PROPERTY. 1. Purpose. Grantee shall have the right to use the Easement Area to construct,operate,maintain,repair, replace,improve,remove,and enlarge one or more utility systems for purposes of transmission,distribution and sale of electricity. Such systems may include,but are not limited to: Underground Facilities. Conduits,lines,cables,vaults,switches and transformers for electricity; fiber optic cable and other lines,cables and facilities for communications; semi-buried or ground- mounted facilities and pads,manholes,meters,fixtures,attachments and any and all other facilities or appurtenances necessary or convenient to any or all of the foregoing. Following the initial construction of all or a portion of its systems, Grantee may,from time to time,construct such additional facilities as it may require for such systems. Grantee shall have the right of access to the Easement Area over and across the Property to enable Grantee to exercise its rights hereunder. Grantee shall compensate Grantor for any damage to the Property caused by the exercise of such right of access by Grantee. 2. Easement Area Clearing and Maintenance. Grantee that have the right to cut,remove and dispose of any and all brush.trees or other vegetation in the Easement Area. Grantee shall also have the right to control,on a continuing basis and by any prudent and reasonable means,the establishment and growth of brush,trees or other vegetation in the Easement Area_ UG Electric 10/2003 10506681, RW-079555 HOUGH Page 1 of 2 3. Grantor's Use of Easement Area. Grantor reserves the right to use the Easement Area for any purpose not inconsistent with the nights herein granted, provided, however, Grantor shah not construct or maintain any buildings, structures or other objects on the Easement Area and Grantor shall do no blasting within 300 feet of Grantee's facilities without Grantee's prior written consent 4. indemnity. Grantee agrees to indemnify Grantor from and against liability incurred by Grantor as a result of Grantee's negligence in the exercise of the rights herein granted to Grantee, but nothing herein shall require Grantee to Indemnify Grantor for that portion of any such liability attributable to the negligence of Grantor or the negligence of others. 5. Abandonment. The rights herein granted shall continue until such time as Grantee ceases to use the Easement Area for a period of five(5)successive years,in which event,this easement shall terminate and all rights hereunder,and any Improvements remaining in the Easement Area,shall revert to or otherwise become the property of Grantor, provided, however, that no abandonment shall be deemed to have occurred by reason of Grantee's failure to initially install its systems on the Easement Area within any period of time from the date hereof. 6. Successors and Assigns. Grantee shall have the right to assign,apportion or otherwise transfer any or all of its rights,benefits,privileges and interests arising in and under this easement. Without limiting the generality of the foregoing, the rights and obligations of the parties shall inure to the benefit of and be binding upon their respective sucresvors and assigns. DATED this,Z 9 day of ai j y ,2011. GRANTOR: BY: 2/ THOMAS J.HO H /71C/ BY: STATE OF WASHINGTON ) ) SS COUNTY OFT0A)) On this%14 day of I7 lit. /s T ,2011,before me,a Notary Public in and for the State of Washington,duly commissioned and sworn,personally appeared THOMAS J.HOUGH,to me known to be the indivi al(s)who executed the within and foregoing instrument,and acknowledged that ffi< signed the same as 55 free and voluntary act and deed,for the uses and purposes therein mentioned. GIVEN UNDER my hand and official seal h: : r . . and year in this certificate first above written. l7' •. , Off, (Sign ry) (: Y �`tl� (Print or stamp name Notary) �; 5�e ial `� .' NOTARY PUBLIC in and for the State of Wash TierutAiSC---41b VA ` GF VII- Residing at / I My Appointment Expires: i t/o.'5/cO/3 Wily w.IM MO al MIMI MIA MI M pined sell 1'wrp ru 105066811 RW-079555 HOUGH Page 2 of 2 EACH) (LESS TAX 1117) 1 \ 701153006 3023 \ \ \ \ TAX 5, 2 ) \ \ ILT / (TAX 18) TAX( 19) \ \ / / I I \ \ 701153009 / l — 1 0 TAX 8 ,� WAY \ \z PILT / AWPiP — 1— / 0 \ \0 a (DNR PILT) / TAX 18) /II / ♦02,, 1TAX 19) 701153018 \ / TAX 17 / — 701153003 — — DNR PILT \ \o TAX 2 2' 701153 J20 / / / / • \moo ,3022 701153021 TAX 18 & 19 / i1 TAX 20 (LESS N 6V8' / / / \ \ OF EAC�H) / � / \ \ l � \ \ This sketch is not based on a survey of / / 701153027 the010 rproperty.yofFiIt is r First wAmerican / TAX 26 \ \ TAXI 93(LESS charge courtesy of First American Title Company solely for the purpose of assisting in locating the said premises. \ \-2_ TAX 10,16) It does not purport to show all roads or easements.The company assumes no liability for any inaccuracies therein. \c 701153014 TAX 13 \ \ 701153012 701153011 TAX 11 \ \ TAX 10 DNR PILT \ \ AGREEMENT FOR CONTINGENT PURCHASE AND SALE OF VACANT REAL ESTATE (Dabob Bay Natural Area-Hough) THIS AGREEMENT FOR CONTINGENT PURCHASE AND SALE OF VACANT REAL ESTATE (the "Agreement") is made as of the/ day of NoVa.mbr , 202y , by and between the NORTHWEST WATERSHED INSTITUTE, a Washington non-profit corporation and/or assigns (hereinafter referred to as the "Buyer") and THOMAS J. HOUGH, as his separate estate,(hereinafter referred to as"Seller")(collectively,the "Parties"). WHEREAS, Seller is the owner of certain real property consisting of approximately 6.38 acres at 1125 Toandos Road,Quilcene in Jefferson County,Washington; and WHEREAS, Seller desires to convey said real property to Buyer, and Buyer desires to acquire said real property; NOW, THEREFORE, in exchange for the mutual promises and covenants herein contained, and other good and valuable consideration, the mutual receipt and sufficiency of which is hereby acknowledged by Seller and Buyer, it is agreed as follows: SECTION 1 PROPERTY Seller shall sell and convey to Buyer, and Buyer shall purchase and accept from Seller, all subject to the terms and conditions of this Agreement, that certain real property located in Jefferson County, Washington, the legal description of which is set forth on Exhibit A attached hereto and incorporated by this reference herein,together with the following: (i) All rights, tenements, hereditaments, easements, associated tidelands, and appurtenances, including, but not limited to, any rights, title and interest of Seller in and to all trees, crops, oil, gas, sand, gravel, water rights,or mineral rights; (ii) All improvements, if any, and other items located upon or within said real property; (iii) All easements, rights-of-way and other rights used in connection with said real property, including but not limited to the following: maintenance easements, rights to adjacent streets, roads,alleys and rights-of-way; (iv) All permits, plans, licenses, surveys, consultant's reports on all matters, including Purchase and Sale Agreement I of 15 Dabob Bay Natural Area Hough but not limited to soils, engineering, traffic, environmental matters, and wetlands made by, for or on behalf of Seller with respect to the property, and an assignment of all representations and warranties made therein to Seller. The parcel of land, together with the improvements, rights and interests described above, are collectively referred to herein as the"Property." SECTION 2 PURCHASE PRICE 2.1 Amount. The purchase price ("Purchase Price") to be paid for the Property shall be the greater of the sum of ONE HUNDRED AND TWENTY THOUSAND U.S. Dollars ($120,000.00) or the Fair Market Value of the Property as determined by a qualified appraiser in an appraisal commissioned and paid for by Buyer. If the Fair Market Value exceeds $120,000, the Parties agree to amend this Agreement to make such amount the Purchase Price. Buyer's obligation to purchase the Property is contingent on the availability of funding to the Buyer. If Buyer does not obtain sufficient funding to purchase the Property and complete the Agreement prior to the closing date, then Buyer may terminate this Agreement without further obligation other than loss of its Deposit as provided herein. 2.2 Earnest Money Deposit. Within ten (10) days following the execution and delivery of this Agreement, Buyer shall open escrow with First American Title of Jefferson County in Port Townsend, Washington (the "Escrow Agent"), by depositing with Escrow Agent a copy of this Agreement and the sum of One Thousand Dollars ($1,000.00) (the "Deposit"), in the form of a personal check payable to Escrow Agent. In the event that this transaction is consummated as contemplated by this Agreement, the Deposit shall be applicable to the Purchase Price. In the event that this transaction is not consummated as contemplated by this Agreement, the Deposit shall be returned to Buyer; provided, however, that in the event that this transaction is not consummated as contemplated by this Agreement because Buyer has not obtained sufficient funding to purchase the Property,the Deposit shall be paid over to Seller. 2.3 Payment. Purchase Price shall be paid into escrow by a Buyer warrant or wire transfer payable to the Escrow Agent on the Closing Date as defined below. 2.4 Compensating Tax. If the property is in forest land designation under chapter 84.33 RCW, this transaction is exempt from the payment of compensating tax as provided by RCW 84.33.140 (13)(c), or if the property is in open space, agricultural, or timberland classification under chapter 84.34 RCW, this transaction is exempt from the payment of additional tax as provided by RCW 84.34.108(6)(f). SECTION 3 CLOSING 3.1 Closing Date. "Closing," "Closing Date" or "Date of Closing" as those terms are used herein, shall mean the date upon which all documents are recorded and monies paid to complete Purchase and Sale Agreement 2 of 15 Dabob Bay Natural Area Hough the purchase contemplated herein. The Date of Closing shall be as soon as practical to facilitate an orderly closing but no later than June 30, 2025 unless otherwise agreed in writing by the Parties. 3.2 Escrow. This transaction shall be closed in escrow at First American Title of Jefferson County, 2424 S. Park Ave, Port Townsend WA 98368 ("Escrow Company"), which shall be arranged by Buyer within ten (10) days of execution of this Agreement. The Parties shall deposit the necessary documents and funds in escrow sufficiently in advance of the Closing Date to facilitate an orderly closing. Buyer and Seller shall each pay one-half of the Escrow Company's fee. SECTION 4 CONVEYANCE,TITLE INSURANCE,AND POSSESSION 4.1 Possession. Buyer shall be entitled to possession of the Property on the Closing Date, but Buyer shall have a right of entry pursuant to Section 5 below. 4.2 Form of Deed. On the Closing Date, Seller shall convey title to the Property to Buyer by Statutory Warranty Deed, free and clear of all assessments, monetary liens or encumbrances securing the payment of money, and subject only to any other encumbrances or defects accepted by Buyer in writing. 4.3 Preliminary Commitment. (a) Seller has obtained a preliminary commitment for an ALTA Owner's Standard Coverage Policy of title insurance (hereafter "Preliminary Commitment") from First American Title of Jefferson County. Seller further warrants that title shall be good, marketable and insurable subject only to the exceptions approved by Buyer pursuant to subsection 4.3(b). (b) Within thirty (30) days of execution of this Agreement, the Buyer shall notify the Seller in writing of any exceptions thereto which are wholly or conditionally acceptable to the Buyer (hereafter "Title Notice"). Following giving of Title Notice, if additional encumbrances affecting the Property arise, Buyer shall have twenty (20) days from receipt thereof to review and approve these additional items. Failure of the Buyer to so approve in writing any exception to Seller's title shown in the Preliminary Commitment or arising thereafter shall be deemed to be a disapproval of such exception. Purchase and Sale Agreement 3 of 15 Dabob Bay Natural Area Hough 4.4 Policy Condition of Closing. Seller shall, prior to or at the Closing Date, at its sole cost and expense, undertake (by the exercise of its reasonable efforts and with due diligence) to remove, eliminate or modify any exceptions not acceptable to Buyer. Closing shall be conditioned upon Title Company issuing its ALTA Owner's Standard Coverage Policy insuring fee title to the Property in the name of Buyer in the amount of the Purchase Price, subject only to (i) the printed form exceptions contained in the ALTA Owner's policy and (ii) such exceptions accepted by Buyer. 4.5 Use of Purchase Price. Purchase Price to be paid by Buyer to Seller at Closing may be used in whole or in part by Seller by and through the Escrow Company to remove any liens, liabilities,or encumbrances which Seller is to have removed. 4.6 Cost of Policy. Seller shall be responsible for the cost of the title insurance policy. Buyer shall be responsible for requesting and for paying the cost of any additional endorsements, co- insurance policies and reinsurance certificates issued by Title Company at Buyer's request. SECTION 5 BUYER'S RIGHT AFTER ACCEPTANCE 5.1 Inspection Contingency. After the date of this Agreement, Seller shall permit Buyer and/or its designated agents to enter upon the Property at all reasonable times for the purpose of conducting environmental assessments and investigating the Property and the physical condition thereof, including, without limitation, soil, water, and air conditions, and the condition of improvements, if any, upon the Property. Inspections by Buyer, if any, shall not be construed as estopping actions upon any warranty made herein. 5.2 Buyer's Waiver of Disclosure Statement. Buyer and Seller acknowledge that the Property may or may not be considered "commercial real estate" as defined in Chapter 64.06 RCW, and hereby waive all rights, obligations, and remedies (including, without limitation, the right of rescission) which may be applicable or available to the parties hereto. Buyer acknowledges that Buyer has been advised of Buyer's right (to the extent applicable to the subject transaction) to receive a completed Seller Disclosure Statement pursuant to Chapter 64.06 RCW and that Buyer hereby waives that right, whether or not applicable, provided, however, that Seller shall complete and deliver to Buyer Section 6 (Environmental) of the Seller Disclosure Statement relating to the Property within five (5) days after the execution and delivery of this Agreement. 5.3 Studies. (a) Seller Studies. Within five days of the date of this Agreement, Seller shall deliver to Buyer true copies of all studies, reports, surveys, soils tests, reviews, correspondence with all governmental entities, environmental checklists and reports, plans and other printed or written material (all of which are collectively referred to as the "Seller's Studies") prepared or received by, or on behalf of, Seller with respect to the Property and Purchase and Sale Agreement 4 of 15 Dabob Bay Natural Area Hough any part thereof. Seller authorizes Buyer to speak with any person preparing Seller's Studies with respect to the contents thereof. Buyer shall not be responsible for any cost associated with Seller's Studies, except for the cost of any additional inquiry or investigation that Buyer deems necessary with respect to the Seller's Studies. (b) Buyer Studies. Buyer shall have the right to prepare, or have prepared, appraisals, market and engineering studies, soils tests, feasibility studies, surveys, resurveys or survey updates, environmental investigations and such other tests, studies or investigations (all of which are collectively referred to as the "Buyer's Studies") with respect to the Property. Buyer shall be solely responsible for costs of all Buyer's Studies. (c) Termination. If the Buyer determines at its sole discretion that the Seller Studies or Buyer's Studies indicate the Property is not suitable for the intended use by Buyer or the Property presents risk of liability unacceptable to Buyer, Buyer may terminate this Agreement without further obligation so long as such termination is provided to Seller in writing within 120 days of this Agreement. If no such notice is provided to Seller, Buyer's inspection contingency shall be deemed waived. Should Buyer timely terminate this Agreement under his Inspection Contingency, Buyer shall be entitled to a refund of any earnest money funds paid into escrow. 5.4 Subsequent Acts. Between the date of this Agreement and the Closing Date, Seller shall maintain the Property and keep the Property in condition at least as good as on the date of this Agreement. Seller shall not remove any timber, harvestable crop, improvements, minerals, sand, gravel, or other item from the Property after the date of this Agreement without prior, written approval by Buyer. At least ten (10) calendar days prior to the Closing Date, Seller shall have removed all junked vehicles, mobile homes,outhouses,temporary structures or personal property that are not intended to be a part of this transaction, and equipment, machines, other solid waste and trash from the Property to the satisfaction of Buyer. SECTION 6 CONTINGENCIES 6.1 Conditions. Buyer's obligations under this Agreement are subject to and contingent upon the following: (a) The truth and accuracy as of the Closing Date of all representations and warranties of Seller set forth in this Agreement or in any instrument or document delivered by Seller to Buyer. (b) The delivery by Seller to Buyer on or prior to the Closing Date of all documents and instruments required by the terms of this Agreement. (c) The performance on or prior to Closing by Seller of all acts required under this Agreement. Purchase and Sale Agreement 5 of 15 Dabob Bay Natural Area Hough (d) The absence at Closing of any violation of any federal, Buyer or local law, rule, regulation or ordinance affecting the use, occupancy or condition of the Property. (e) The absence at Closing of any failure to comply with the order of any court, government authority or agency pertaining to the Property or the use, occupancy or condition of the Property. (f) The absence at Closing of any proceeding or threat of any proceeding to condemn all or any part of the Property by a proceeding in eminent domain. (g) Conveyance of acceptable title as provided in Section 4. (h) Approval of Seller's and Buyer's Studies pursuant to subsection 5.2. (i) The availability of funding to purchase the Property and complete the Agreement. 6.2. Waiver. If any condition specified in Section 6.1 is not met at Closing,Buyer may waive such condition in writing, or Buyer may terminate this Agreement without any further liability, subject to paragraphs 5.2 and 2.2. Upon such termination, the Deposit and any monies deposited by Buyer pursuant to this Agreement, together with all interest earned thereon shall be promptly returned to Buyer; provided, however, that if the termination is due only to the unavailability of funding to purchase the Property and complete the Agreement, the Deposit, together with all interest earned thereon, shall be paid over to Seller as liquidated damages and as Seller's sole remedy and not as a forfeiture or penalty. Upon disbursement of the Deposit by the Escrow Agent as provided herein, neither Buyer nor Seller shall have any further liability to the other under this Agreement, except for all indemnity provisions set forth herein which shall survive for such term as provided for in this Agreement SECTION 7 REPRESENTATIONS AND WARRANTIES Seller makes the following representations and warranties to Buyer. Each of these representations and warranties is material and is relied upon by Buyer. Each of the representations and warranties shall be deemed accurate through Closing and shall survive Closing. 7.1 Title. Title to the Property is vested in Seller. 7.2 No Liabilities. There exists upon the Property no condition which is in violation of any statute, ordinance, regulation or administrative or judicial order or holding, whether or not appearing in the public records pertaining to the Property. 7.3 Correctness. All information furnished by Seller to Buyer with respect to the Property is Purchase and Sale Agreement 6 of 15 Dabob Bay Natural Area Hough accurate and true. 7.4 Litigation. To the best of Seller's knowledge, there is no pending or threatened litigation affecting the Property or any portion thereof, including but not limited to alleged violation of federal, Buyer or local environmental laws. Neither Seller nor its predecessors have received any notice relating to a breach or suspected breach of any environmental laws. 7.5 Condition of Property. To the best of Seller's knowledge, Seller represents and warrants the following: there are no apparent or latent defects in the Property; the Property does not contain any underground storage tanks, surface impoundments, asbestos or asbestos-containing material, or polychlorinated biphenyls (PCBs) or PCB-containing materials, past or present refuse dump sites, chemical storage sites, areas of heavily stained soil, or sites of known hazardous material releases other than those indicated and described by exhibit attached hereto; and the Property is free from the presence of hazardous waste or materials and no hazardous waste or materials have been generated, stored, released, disposed of, or transported over, on or within the Property. The term "hazardous waste or materials" includes any substance, waste or material defined or designated as hazardous, toxic or dangerous (or any similar term) by any federal, Buyer or local statute, regulation, rule or ordinance now in effect, including but not limited to the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601, et seq., and the Model Toxics Control Act, RCW 70A.305D. Seller has no undisclosed knowledge of any fact or condition that would materially impair the market value of the Property, would materially increase the cost of operating the Property or would be inconsistent with the terms of this Agreement. 7.6 Authorization. Seller has the right and authority to enter into this Agreement and all documents contemplated by this Agreement, to make the representations and warranties set forth herein and to perform this Agreement in accordance with its terms. Neither the execution of this Agreement nor its performance by Seller will conflict with or result in the breach of any mortgage, deed of trust, encumbrance, restriction, covenant, agreement or other undertaking whatever. 7.7 Vacancy. No one is presently occupying the Property, either with or without Seller's permission. SECTION 8 INDEMNITY AND HOLD HARMLESS Seller agrees to indemnify, defend with counsel acceptable to Buyer, and hold harmless Buyer, its agencies, employees, officers and agents from (a) all liabilities, losses, claims, demands, damages, assessments, costs and expenses(including reasonable attorneys' and consultants' fees) of every kind (hereafter "Liabilities") resulting from, arising out of or relating to the breach by Seller of any of its warranties, representations or covenants contained in this Agreement and (b) all Liabilities arising under, resulting from or arising out of any activities of Seller, its agents, employees, contractors, subcontractors, permittees, or licensees at the Property prior to or at Purchase and Sale Agreement 7 of 15 Dabob Bay Natural Area Hough Closing, including but not limited to the use, disposal, transportation, generation, or sale of hazardous material as defined in subsection 7.5. SECTION 9 DESTRUCTION OR CONDEMNATION Seller shall bear the risk of loss prior to Closing. If, on or before the Closing Date, either the Property is materially damaged, or condemnation proceedings are commenced with respect to the Property, Buyer shall have the right, at its sole election, by giving notice to Seller, either to terminate this Agreement or to purchase the Property in accordance with this Agreement. If Buyer elects to terminate this Agreement, all rights and obligations of Seller and Buyer shall terminate. If Buyer elects to purchase the Property in accordance with this Agreement, Buyer shall be entitled to all insurance proceeds or condemnation awards payable by reason of such damage or condemnation. In the event there is no insurance or inadequate insurance to cover the damage, Buyer shall be entitled to a reduction in the Purchase Price equal to the market value of the Property destroyed or damaged. Seller shall immediately give notice to Buyer upon the occurrence of any damage to the improvements on the Property or the initiation of any condemnation proceedings affecting the Property. The term "material damage" as used in this section shall mean any damage or destruction that cannot be repaired or replaced within ninety (90)days. SECTION 10 CLOSING AND CLOSING COSTS Prior to or on the Closing Date, Seller and Buyer shall deposit the following documents and funds in escrow, and the Escrow Company shall close the escrow in accordance with the instructions of Buyer and Seller consistent with this Agreement: 10.1 Seller Obligations. Seller shall deposit the following: (a) duly executed and acknowledged Statutory Warranty Deed conveying the Property to Buyer and a Real Estate Excise Tax Affidavit; (b) escrow instructions, as required of Seller to close this transaction in accordance with this Agreement; (c) if Seller is a corporation or partnership, a certified resolution authorizing the execution of all documents delivered at the Closing; (d) pursuant to Section 1445 of the Internal Revenue Code of 1986, as amended, a nonforeign affidavit, stating that Seller is not a foreign person and providing Seller's United Buyers taxpayer identification number. If Seller is not able to certify that it is not a "foreign person," Buyer is authorized to withhold a portion of the purchase price at closing for U. S. Income Tax purposes; and Purchase and Sale Agreement 8 of 15 Dabob Bay Natural Area Hough (e) such other instruments or documents as may be required pursuant to the provisions hereof or as mutually agreed by Seller and Buyer to be necessary to fully consummate the transaction contemplated hereby. 10.2 BuyerObligations. Buyer shall deposit the following-: (a) The Purchase Price;and (b) such other funds and documents, including without limitation, escrow instructions as are required of Buyer,to close the purchase in accordance with this Agreement. 10.3 Prorations. All rents and other income, if any, and water, sewer, utility and maintenance charges, and any other expenses with respect to the operation of the Property shall be prorated between Seller and Buyer as of the Closing Date, and to the extent information then available, such proration shall be made as of the Date of Closing. Such proration shall be adjusted and completed after the Closing Date as and when complete information becomes available, and Buyer and Seller agree to cooperate and use their best efforts to complete such prorations not later than sixty (60) days after the Closing Date. No insurance prorations shall be made. Seller shall pay any assessments charged against the Property in full prior to or at Closing. Seller shall pay all real estate taxes and personal property taxes, if any, through the Date of Closing. In the event Seller has prepaid any real estate taxes, Seller may seek a refund from the appropriate county official; Buyer shall have no obligation to refund or pay any such amount to Seller. Seller shall pay any real property excise tax due, and the cost of any revenue stamps, if applicable, required to complete this transaction. Buyer will pay recording fees. SECTION 11 SURVIVAL The representations, warranties, indemnification and obligations (to the extent such obligations are not fully performed at closing) contained herein are intended to be operative after delivery of Seller's deed to the Property in order to be fully effective and shall be deemed not to have merged in the deed. SECTION 12 REAL ESTATE COMMISSION Seller shall pay any real estate commission payable in connection with this transaction. Any real estate agent or broker acting in this transaction shall be deemed to be the sole agent of Seller. SECTION 13 NOTICES All notices required or permitted to be given hereunder shall be in writing and shall be deemed given upon personal service or receipt after deposit in the United Buyers first class mail addressed as follows: Purchase and Sale Agreement 9 of 15 Dabob Bay Natural Area Hough To Seller: Thomas J. Hough 1125 Toandos Road Quilcene,WA 98376 With copy to Barbara Hough-Hood by email to bhood1996@u,gmail.com To Buyer: Peter Bahls,Director Northwest Watershed Institute 3407 Eddy Street Port Townsend,WA 98368 The foregoing addresses may be changed by written notice. SECTION 14 MISCELLANEOUS 14.1 Entire Agreement. This Agreement constitutes the entire agreement between the Parties. No other prior and contemporaneous negotiations, understandings and agreements, whether oral or-written shall be deemed to exist or bind any of the Parties hereto. 14.2 Binding Nature. All rights and obligations arising out of this Agreement shall inure to the benefit of and be binding upon the respective successors, heirs, assigns, administrators, executors and marital communities, if any,of the Parties hereto. 14.3 Washington Law. This Agreement shall be construed, interpreted and enforced pursuant to the laws of the Buyer of Washington. Venue shall be in Jefferson County, unless this Agreement is assigned to a state agency in which case venue shall be in Thurston County. The terms of this Agreement shall be given their ordinary meaning and shall not be presumed construed in favor of or against either party hereto. 14.4 Time of the Essence. Time is of the essence of this Agreement. No waiver or consent to any breach or other default in the performance of any of the terms of this Agreement shall be deemed to constitute a waiver of any subsequent breach of the same or any other term or condition hereof. In the event time for performance falls on a weekend or legal holiday designated by the United Buyers or Washington Buyer, performance shall be deemed to be timely rendered if so rendered on the next business day. 14.5 Captions. The captions and section headings hereof are inserted for convenience purposes only and shall not be deemed to limit or expand the meaning of any section. Purchase and Sale Agreement 10 of 15 Dabob Bay Natural Area Hough 14.6 Invalidity. If any provisions of this Agreement shall be invalid, void or illegal, it shall in no way affect, impair or invalidate any of the other provisions hereof. 14.7 Counterparts. This Agreement may be signed in counterparts, any one of which shall be deemed an original. 14.8 Date of Agreement. The date of this Agreement shall be the date on which the last party executes this Agreement. Said date shall be inserted on the first page hereof when such date is determined. 14.9 Good Faith. Both Parties shall act reasonably and in good faith in order to consummate this transaction, and Seller shall neither sell nor dispose of any of the Property nor cause or suffer the creation of any matter of record, or defect in the title to the Property for the purpose of avoiding its obligation to close. 14.10 Default. In the event that either party defaults in the performance of any of that parry's obligations under this Agreement, the non-defaulting party shall have all remedies available in law or equity,but neither party shall be liable for consequential damages. 14.11 Attorneys' Fees and Costs. If either party is required to retain an attorney to bring suit or seek arbitration to interpret or enforce any provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, paralegal fees, accountant and other expert witness fees and all other fees, costs and expenses actually incurred and reasonably necessary in connection therewith, including those incurred on appeal, in addition to all other amounts provided by law, regardless of whether the matter proceeds to judgment or is resolved by the defaulting party curing the default. 14.12 Assignability. This Agreement shall not be assigned without the prior written consent of the other party except as otherwise provided in this Agreement. Seller may wish to gain certain tax benefits available to Seller under I.RC.§1031 by using a qualified intermediary to facilitate a delayed exchange for the Property to be conveyed under this Agreement. The qualified intermediary shall be released from any obligations under this Agreement. Seller shall remain fully liable to perform all obligations under this Agreement, including but not limited to Seller's representations, warranties and indemnification regarding the Property. Seller shall convey the Property directly to Buyer. The success or failure of the anticipated tax consequences from the I.R.C.§1031 delayed exchange shall not be deemed a term, condition, or contingency of this Agreement, nor shall such tax consequences be deemed a legal excuse for nonperformance by Seller. 14.13 Advice of Counsel. Seller acknowledges that it has had an opportunity to seek independent legal advice regarding the transaction. 14.14 Submission. This Agreement must be executed by Seller, and an original delivered to Purchase and Sale Agreement 11 of 15 Dabob Bay Natural Area Hough Buyer, at the address set forth in this Agreement, on or before 4:00 p.m. on February 9, 2024, to be considered by Buyer. This Agreement shall not be binding upon Buyer until signed by an authorized representative of Buyer. IN WITNESS WHEREOF, the Parties have executed this Agreement the date and year set forth opposite their respective names. SELLER: Thomas J. Hough Dated: .7/61/_ ' �aZ BUYER: NORTHWEST WATERSHED INSTITUTE, Dated: v V f?i/ 20 2 c By: pa--3--„A_ PETER BAHLS Executive Director INDIVIDUAL ACKNOWLEDGMENT STATE OF WASHINGTON ) ss. COUNTY OF JEFFERSON ) On this/5' -day of No mAltr",2024, before me personally appeared THOMAS J. HOUGH, to me known to be the person that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said person for the uses and purposes therein mentioned. Purchase and Sale Agreement 12 of 15 Dabob Bay Natural Area Hough Dated: (Unue_mal-e r` 15— 7614 Notary Public ANNA C BROWN Print Name ft.nnn Y7%u,fJ Notary Public My commission expires o Z 2- 2 State of Washington Commission #77938 My Comm. Expires Jun 22, 2025 (Use this space for notarial stamp/seal) Purchase and Sale Agreement 13 of 15 Dabob Bay Natural Area Hough BUYER ACKNOWLEDGMENT STATE OF WASHINGTON ) ss: COUNTY OF JEFFERSON ) On this 204day of /4Jo‘'441&etr, 2024, before me personally appeared PETER BAHLS, to me known to be the Executive Director of Northwest Watershed Institute that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that the execution of the instrument was duly authorized and that the seal affixed, if any, is the corporate seal of said corporation. In witness whereof I have hereunto set my hand and affixed my official seal this7rnti^day of 1\ONtAM10-e:,(- 2-nzd--1 `\\``Uttniurrrtiii Qop c,be"'; '•;fir % Nota Public :e,,e '��= Print ame tC- r A- N; _ My commission expires r- - rz., 2racr, At/BLIC • •t *22O32 ���`• (Use this space for notarial stamp/seal) Purchase and Sale Agreement 14 of 15 Dabob Bay Natural Area Hough EXHIBIT A Legal Description of the Property (HOUGH) Tract 4, described as follows: That portion of the East 1/2 of the Southwest 1/4 of Section 15,Township 27 North,Range 1 West, W.M., described as follows: Beginning at the center of said Section; Thence South along the North and South center line of said Section, 758 feet to the True Point of Beginning; Thence West a distance of 752.77 feet to intersect the Easterly line of that certain tract of land sold to Gene Ray Myers by Real Estate Contract recorded March 8, 1971,Auditor's No. 208162;thence along said Myers Tract, South 15°42' S4" East, 19.22 feet; Thence continue along said Easterly line of Myers Tract, South 33° 56'38" East, 209.75 feet; thence continuing along said Easterly line of Myers Tract, South 34°96'24" East, 190.24 feet; Thence East a distance of 521.44 feet to intersect the North and South center line of said Section 15 at a point 350 feet South of the Point of Beginning; Thence North to the Point of Beginning. Situate in the County of Jefferson, State of Washington. Purchase and Sale Agreement 15 of 15 Dabob Bay Natural Area Hough 3609 Market Place West, Suite 201, University Place, WA 98466 p. 253.564.3230 I f. 253.564.3143 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. 0. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: op 24 2C 93-1325820 DLN: 17053259778026 NORTHWEST WATERSHED INSTITUTE Contact Person: 3407 EDDY STREET CLINTON L FORTNER ID# 31163 PORT TOWNSEND, WA 98368-0000 Contact Telephone Number: (877) 829-5500 Public Charity Status : 17 0 (b) (1) (A) (v i) Dear Applicant : Our letter dated JANUARY 2002, stated you would be exempt from Federal income tax under section 501 (c) (3) of the Internal Revenue Code, and you would be treated as a public charity, rather than as a private foundation, during an advance ruling period. Based on the information you submitted, you are classified as a public charity under the Code section listed in the heading of this letter. Since your exempt status was not under consideration, you continue to be classified as an organization exempt from Federal income tax under section 501 (c) (3) of the Code. Publication 557, Tax-Exempt Status for Your Organization, provides detailed information about your rights and responsibilities as an exempt organization. You may request a copy by calling the toll-free number for forms, (800) 829-3676 . Information is also available on our Internet Web Site at www.irs .gov. If you have general questions about exempt organizations, please call our toll-free number shown in the heading. Please keep this letter in your permanent records. Sincerely yours, (t455L, Lois G. 91? ner Director, Exempt Organizations Rulings and Agreements Letter 1050 (DO/CG) 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 Ordinary Income/Expense Income Grant Revenue 4010•Federal Funds 1,500,000.00 4020•Foundation 2,000.00 4030•State Funds 42,000.00 Total Grant Revenue 1,544,000.00 Contributed Income 4040• Restricted 131,000.00 4050• Unrestricted 120,000.00 Contributed Income-Other 0.00 Total Contributed Income 251,000.00 Rental/Lease Income 4165•Olson tideland lease 4,000.00 4175• Rental Income Reinertsen Rental 18,000.00 4182• Rental Income-Yarr Caretaker 6,000.00 Total Rental/Lease Income 28,000.00 Consulting/Miscellaneous 4210•Consulting Fees 2,000.00 Total Consulting/Miscellaneous 2,000.00 Total Income 1,825,000.00 Gross Profit 1,825,000.00 Expense Health benefits 6096• Health insurance 34,000.00 6094•HSA Contribution 10,600.00 Total Health benefits 44,600.00 6041 • Paypal Fees 300.00 6010•Advertising 100.00 6030•Automobile Expense 2,500.00 6040• Bank Service Charges 500.00 6060• Depreciation Expense 1,600.00 Insurance 6091 •Auto 4,000.00 6093• Liability Insurance 4,000.00 Total Insurance 8,000.00 Land Acquisition 6170•Closing Expenses 40,000.00 6150•Land 1,300,000.00 Land Acquisition-Other 0.00 Total Land Acquisition 1,340,000.00 6180•Licenses and Permits 0.00 6210•Miscellaneous 0.00 Payroll Expenses Gross wages 6237•Education Director 24,000.00 6231 •Director 90,000.00 6232•Stewardship Director 36,000.00 6233• Project Assistant 7,000.00 6234• Field Crew 88,000.00 Total Gross wages 245,000.00 Page 1 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 Payroll Taxes 6246• Paid Family and Medical Leave 0.00 6240• Medicare 3,500.00 6241 • Social Security 15,000.00 6243•Workers Comp 11,000.00 6245•WA State Unemployment 3,600.00 Total Payroll Taxes 33,100.00 Payroll Expenses-Other 0.00 Total Payroll Expenses 278,100.00 6250• Postage and Delivery 750.00 6260• Printing and Reproduction 750.00 Professional Fees 6271 •Accounting 1,500.00 6274• Legal Fees 2,000.00 Total Professional Fees 3,500.00 Program Expense 6284• Student Stipend 2,000.00 6282 Fees 1,600.00 6283• Project subcontractors 40,000.00 6286•Overrun 0.00 Total Program Expense 43,600.00 6290• Rent 12,000.00 Repairs and Maintenance 6350• Septic Repair 0.00 6310• Building Repairs 50,000.00 6320•Computer Repairs 250.00 6330• Equipment Repairs 3,000.00 Repairs and Maintenance-Other 500.00 Total Repairs and Maintenance 53,750.00 Supplies 6420• Field Supplies 30,000.00 6440•Office Supplies 2,000.00 Total Supplies 32,000.00 Taxes 6510• Property Taxes 5,000.00 Total Taxes 5,000.00 Telephone/Communications 6650• Mobile phone 1,800.00 6610• Internet Server 800.00 6620•Telephone-Local 0.00 Telephone/Communications-Other 0.00 Total Telephone/Communications 2,600.00 Travel&Ent 6720 • Meals 140.00 Total Travel&Ent 140.00 Utilities 6810•Gas and Electric 600.00 Utilities-Other 0.00 Total Utilities 600.00 Page 2 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 9000• Suspense 0.00 Total Expense 1,830,390.00 Net Ordinary Income -5,390.00 Other Income/Expense Other Income 7010• Interest Income 10,000.00 Total Other Income 10,000.00 Other Expense 8016•Conservation Ease/Deed Restri 0.00 Total Other Expense 0.00 Net Other Income 10,000.00 Net Income 4,610.00 Page 3 Northwest Watershed Institute BOARD OF DIRECTORS 2024-25 Board Members and Affiliation and Term on the Board of Directors Officers Peter Bahis Peter Bahls is currently full time Executive Director and Conservation President,Vice-President, Biologist for Northwest Watershed Institute. Treasurer Term- 2023-2025 3407 Eddy Street Port Townsend,WA 98368 Jean Ball Jean Ball is a farmer and naturalist in Quilcene,Washington. Board Member Term - 2024-2026 10221 Center Road, Quilcene,WA 98368 Scott Calhoun Scott Calhoun studied biology and geology in college and graduate Board Member school where he specialized in shorelines and watersheds. He owns forestland in the Tarboo watershed. 5710 59th Ave NE Seattle,WA 98105 Term-2024-2026 Janis Henry Janis Henry is a retired biotech patent attorney and chemist with over Secretary 30 years of experience.She is a life-long nature enthusiast and embraces adventure travel. 14445 SE 55th Street Bellevue,WA 98006 Term- 2023-2025 Gene Jones Gene Jones is a member of the Port Gamble S'Klallam Tribe and Board Member spiritual leader for four Tribes in the Olympic Peninsula region. 5860 NE Totten Road Term-2023-2025 Poulsbo,WA 98370 Liz Hoenig Kanieski Liz Hoenig Kanieski has over 25 years of experience as a field biologist, environmental educator,and environmental planner.Much of her work 1005 Lawrence Street has focused on watershed protection,citizen engagement and water Port Townsend,WA 98368 resources. Term-2023-2025 Keith Lazelle Keith Lazelle is an award-winning nature photographer who lives on Board Member Dabob Bay.His work has been used by many environmental organizations including Audubon,Hoh River Trust,The Nature PO Box 192 Conservancy,and NWI. Quilcene,WA 98376 Term-2024-2026 Northwest Watershed Institute STAFF ROSTER 2025 Peter Bahls, Executive Director Wesley Meyers, Stewardship Director Megan Brookens, Education and Outreach Director Robin Enge, Administrative Assistant Eva Ellis, Field Crew Bernt Goodson, Field Crew Zack Hawkes, Field Crew Hanna Petersen, Field Crew Veronica Phelan, Field Crew Grace Rabbitt Burke, Field Crew Trevor Williams, Field Crew Abel Dances, Carpenter 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 Ordinary Income/Expense Income Grant Revenue 4010• Federal Funds 2,057,763.40 4020• Foundation 1,614.27 4030•State Funds 41,710.22 Total Grant Revenue 2,101,087.89 Contributed Income 4040• Restricted 130,710.00 4050• Unrestricted 116,423.00 Contributed Income-Other 520.00 Total Contributed Income 247,653.00 Rental/Lease Income 4165•Olson tideland lease 4,000.00 4175• Rental Income Reinertsen Rental 7,673.37 4182• Rental Income-Yarr Caretaker 4,139.46 Total Rental/Lease Income 15,812.83 Consulting/Miscellaneous 4210• Consulting Fees 1,155.00 Total Consulting/Miscellaneous 1,155.00 Total Income 2,365,708.72 Gross Profit 2,365,708.72 Expense Health benefits 6096• Health insurance 31,075.72 6094• HSA Contribution 10,300.00 Total Health benefits 41,375.72 6041 • Paypal Fees 289.80 6010•Advertising 127.05 6030•Automobile Expense 2,033.19 6040• Bank Service Charges 499.77 6060• Depreciation Expense 1,600.00 Insurance 6091 •Auto 4,130.00 6093• Liability Insurance 4,059.45 Total Insurance 8,189.45 Land Acquisition 6170•Closing Expenses 0.00 Total Land Acquisition 0.00 6180• Licenses and Permits 15.00 6210• Miscellaneous 163.37 Payroll Expenses Gross wages 6237• Education Director 23,754.50 6231 • Director 73,333.48 6232•Stewardship Director 33,682.00 6233• Project Assistant 6,119.00 6234• Field Crew 86,245.20 Total Gross wages 223,134.18 Page 1 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 Payroll Taxes 6246• Paid Family and Medical Leave 1.19 6240• Medicare 3,305.81 6241 •Social Security 14,169.09 6243•Workers Comp 10,942.09 6245•WA State Unemployment 3,687.53 Total Payroll Taxes 32,105.71 Payroll Expenses-Other 4,853.32 Total Payroll Expenses 260,093.21 6250•Postage and Delivery 744.74 6260• Printing and Reproduction 758.11 Professional Fees 6271 •Accounting 1,375.00 6274• Legal Fees 324.50 Total Professional Fees 1,699.50 Program Expense 6284•Student Stipend 0.00 6282• Fees 1,553.89 6283• Project subcontractors 82,835.44 6286•Overrun 68.55 Total Program Expense 84,457.88 6290• Rent 12,000.00 Repairs and Maintenance 6350• Septic Repair 9,769.44 6310•Building Repairs 9,207.34 6320• Computer Repairs 248.20 6330• Equipment Repairs 2,868.14 Repairs and Maintenance-Other 474.37 Total Repairs and Maintenance 22,567.49 Supplies 6420• Field Supplies 8,204.99 6440•Office Supplies 1,951.11 Total Supplies 10,156.10 Taxes 6510• Property Taxes 4,963.81 Total Taxes 4,963.81 Telephone/Communications 6650•Mobile phone 1,567.40 6610• Internet Server 758.50 6620•Telephone-Local 81.26 Telephone/Communications-Other 142.28 Total Telephone/Communications 2,549.44 Travel&Ent 6720•Meals 144.65 Total Travel&Ent 144.65 Utilities 6810• Gas and Electric 696.03 Utilities-Other 770.16 Total Utilities 1,466.19 Page 2 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 9000• Suspense 267.06 Total Expense 456,161.53 Net Ordinary Income 1,909,547.19 Other Income/Expense Other Income 7010• Interest Income 9,952.06 Total Other Income 9,952.06 Other Expense 8016•Conservation Ease/Deed Restri 782,040.09 Total Other Expense 782,040.09 Net Other Income -772,088.03 Net Income 1,137,459.16 Page 3 12:55 PM Northwest Watershed Institute 01/10/25 Balance Sheet Accrual Basis As of June 30, 2024 Jun 30,24 ASSETS Current Assets Checking/Savings First Fed CD-3090 51,430.51 First Federal CD-3091 51,523.58 First Fed Savings 52,417.11 1020•Checking-Kitsap 59,986.66 Total Checking/Savings 215,357.86 Accounts Receivable 1200•Accounts Receivable 22,048.75 Total Accounts Receivable 22,048.75 Other Current Assets 1250• Prepaid Insurance 2,115.50 1300• Employee advance 163.88 1499• Undeposited Funds 111,313.33 Total Other Current Assets 113,592.71 Total Current Assets 350,999.32 Fixed Assets 1513•Vehicle-2001 Ford xtra Cab 8,000.00 1554•Trailers 4,000.00 1512•Vehicle-Ford pickup 4,150.00 1530• Kubota Tractor 16,709.10 1590•Accumulated Depreciation -28,592.08 Property 1555•Capital Improvements 3,035.20 1551 • Land 2,197,217.48 Total Property 2,200,252.68 Total Fixed Assets 2,204,519.70 TOTAL ASSETS 2,555,519.02 LIABILITIES&EQUITY Liabilities Current Liabilities Accounts Payable 2000•Accounts Payable 5,965.77 Total Accounts Payable 5,965.77 Other Current Liabilities 2100•Payroll Liabilities 2105• Fica,Medicare,FWH Payable 5,148.22 2109•WA-Paid Fam Med Leave Emp. 446.33 2120•Workers Comp Payable 5,013.23 2130• SUTA&EAF Payable 1,663.44 2125• FUTA Payable 267.06 2100• Payroll Liabilities-Other 489.77 Total 2100• Payroll Liabilities 13,028.05 2250• Rental Security Deposit 3,000.00 Total Other Current Liabilities 16,028.05 Total Current Liabilities 21,993.82 Total Liabilities 21,993.82 Page 1 12:55 PM Northwest Watershed Institute 01/10/25 Balance Sheet Accrual Basis As of June 30, 2024 Jun 30,24 Equity 1110• Retained Earnings 1,396,066.04 Net Income 1,137,459.16 Total Equity 2,533,525.20 TOTAL LIABILITIES&EQUITY 2,555,519.02 Page 2 _./V VY • 3407 Eddy Street I Port Townsend, Washington 98368 Northwest voice 360.385.6786 fax 360.385.2839 Watershed Institute email peter@nwwatershed.org I www.nwwatershed.org Memo To: Tarboo Creek Conservation Project File From:Peter Bahls, Executive Director CC: Date: February 25, 2025 Re: Executive Committee Resolution to Submit Jefferson County Conservation Futures 2025 Application for the Toandos Forest project. At its Annual Board Meeting of June 21, 2024, the Board of Directors of Northwest Watershed Institute unanimously approved the following resolution — An executive committee comprised of Peter Bahls and Janis Henry shall serve as an executive committee to have the power to make on-going decisions between Board meetings per the existing by-laws. On February 25, 2025 the executive committee approved the following resolution — DECIDED — Northwest Watershed Institute shall sponsor and submit a grant application for Jefferson County Conservation Futures 2025 Program for the Toandos Forest project within the boundaries of the state's Dabob Bay Natural Area. Priority: The Toandos Forest property is 6x the size of the Upper Yarr property and is at high risk of development if JCCF funding is not awarded, so it is considered the top priority for NWI. /r/(2 .t.i Peter Bahls Janis Henry President Secretary February 27, 2025 Peter Bahls, Executive Director Northwest Watershed Institute 3407 Eddy Street Port Townsend, WA 98368 Dear Mr. Bahls: I understand that Northwest Watershed Institute is applying for Jefferson County Conservation Futures (JCCF)grant funding to acquire and protect Toandos Forest,6.38 acres of forestland within the state's Dabob Bay Natural Area boundaries. If successful,the grant funding will protect the forest under county deed restrictions and allow older forest habitats to develop,while permitting some limited harvest of trees and other forest products. We strongly support this project and want to convey the importance of the forest as a cultural resource to the Tribes. The JCCF grant application states that cultural resources include"...traditional, religious,ceremonial, and social uses and activities of affected Indian Tribes...". I want to make it clear that the Toandos Forest is a cultural resource under this definition and the proposed plan for protection and restoration would help grow its importance. Four tribes- Port Gamble S'Klallam Tribe,Jamestown S'Klallam Tribe, Lower Elwha S'Klallam Tribe, and Skokomish Tribe-are signatories to the Point No Point Treaty and retain the right to hunt and gather within their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to rely upon the forests of the region, as they have for thousands of years,as places where they gather traditional food, medicine,and materials for use in all aspects of their cultural life, including social and religious. Currently,the Tribe is enjoying a renaissance of weavers and artists using traditional methods and materials; especially materials from the cedar tree. For example,tribal members harvest the inner bark of large cedar trees for weaving baskets and clothing used for ceremonial purposes.They also harvest wood from cedar, big leaf maple, and alder trees to make large box drums, masks,and other traditional objects that the Tribes have used for thousands of years for religious and social ceremonies. However, with the conversion of vast areas to private industrial tree farms and development projects, it is increasing difficult for the Tribes to access forests suitable for traditional cultural uses. The proposed project will protect an important cultural resource for the Tribes: a growing native forest where,with good stewardship, the benefits to the Tribes will continue to grow as the forest develops into an older, biologically diverse forest with a large variety of indigenous plants and trees of cultural importance.The Tarboo forest is significant not just for the materials it can offer over time, but the opportunity for the Tribe to harvest locally;the process of harvesting itself is infused with traditional, social and religious meaning that we want to pass on to the coming generations. Sincerely, Laura Price Cultural Resources Director Port Gamble S'Klallam Tribe 31912 Little Boston RD NE Kingston WA 98346 Office: 360-297-9655 Cell: 360-509-7723 EXAMPLE OF RE-RECORD OF SWD FOR CONSERVATION FUTURES PURPOSES AFTER RECORDING RETURN TO: Northwest Watershed Institute 3407 Eddy Street Port Townsend, WA 98368 DOCUMENT TITLE: Statutory Warranty Deed—Re-Record GRANTOR: Rosie L.von Engel GRANTEE: Northwest Watershed Institute ABBREVIATED LEGAL DESCRIPTION (Complete description on Page 1): S29 T28 R1W Tax 2 ASSESSOR'S TAX PARCEL NUMBER(S): 801 293 003 REFERENCE NUMBERS OF RELATED DOCUMENTS: 658592 The parties are re-recording the Statutory Warranty Deed, recorded on 01/17/2023 in the official records of Jefferson County, Washington, under Auditor's File No. 658592 (a copy of which is attached hereto as Exhibit A), for the sole purpose of including language required by Jefferson County providing funding to Grantee Northwest Watershed Institute's acquisition of the property described in said Statutory Warranty Deed, and without additional consideration from Grantee to Grantor. 1 4899-1951-4625v.6 0046182-000042 STATUTORY WARRANTY DEED (RE-RECORD) THE GRANTOR Rosie L.von Engel,now according to the application for title insurance Rose/Marie Ludmilla von Engel,as her separate estate for an in consideration of TEN DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERATION in hand paid, conveys and warrants to Northwest Watershed Institute,a Washington nonprofit corporation the following described real estate,situated in the County of Jefferson, State of Washington(the"Property"): Tax Parcel Number(s): 801 293 003 That portion of the North 100 feet of the Southeast'A of the Southwest'A of Section 29, Township 28 North,Range 1 West,W.M. and that portion of the Northeast 'A of the Southwest '/4 of said Section 29 lying Easterly of the Quilcene-Center County Road right of way as conveyed by Deed recorded March 13, 1956 under Auditor's File No. 149069 and Southerly of the Old Tarboo Lake Road as conveyed by Deed recorded March 1, 1948 under Auditor's File No. 112974, in Jefferson County,Washington; Together with the West 158 feet of the North 100 feet of the Southwest '/4 of the Southeast 'A in said Section 29. Situate in the County of Jefferson, State of Washington. SUBJECT TO: Covenants, Conditions, Restrictions, Easements, Plats and Surveys, if any, affecting title,which may appear in the public record Grantee's costs of acquiring the Property were provided in part by grant funding from the Jefferson County Conservation Futures property tax authorized by Washington law. Grantee hereby agrees to be bound by Jefferson County Code (JCC) 3.08.030(9),the uses authorized under RCW 84.34.230, including the obligation to ensure the long-term conservation of the Property in accordance with the terms and conditions of this Notice of Grant Restrictions and Restrictive Covenants for Conservation Purposes, and to obtain the consent of Jefferson County prior to any conveyance of any interest acquired hereby. Consistent with JCC 3.08.030(9),the Property shall not be converted to a different use unless and only if other equivalent lands or interest in lands within Jefferson County are received by Grantee in exchange. {Signature page(s) to follow) 2 4899-1951-4625v.6 0046182-000042 IN WITNESS WHEREOF, Grantor has caused this instrument to be executed and delivered as of the day of , 2025. GRANTOR: Rosie L. von Engel State of Washington ) ) ss. County of ) On this day of , 2025, Rosie L. von Engel, known to me or proved by satisfactory evidence to be the individual described in this instrument, acknowledged before me that she signed this instrument as her free and voluntary act and deed for the uses and purposes stated therein. Notary Public for State of Washington Residing at: My commission expires: — 3 4899-1951-4625v.6 0046182-000042 IN WITNESS WHEREOF, Grantee has caused this instrument to be executed and delivered as of the day of , 2025. GRANTEE: NORTHWEST WATERSHED INSTITUTE By: Its: Date: State of Washington ) ) ss. County of ) On this day of , 2025, Peter Bahls, known to me or proved by satisfactory evidence to be the individual described in this instrument, acting in his capacity as Executive Director of Northwest Watershed Institute, acknowledged before me that he signed this instrument as the free and voluntary act and deed of such corporation for the uses and purposes stated therein. Notary Public for State of Washington Residing at: _ My commission expires: _ 4 4899-1951-4625v.6 0046182-000042 EXHIBIT A Original Statutory Warranty Deed {attached} 5 4899-1951-4625v.6 0046182-000042 SON -, ��, JC2 1 2025 Jefferson County Conservation Futures Fund Program �9SN1 Nei\°� Property Acquisition Project and/or Operations and Maintenance Project Application Please complete the following application in its entirety. Be sure to answer"N/A"for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at(360)379-4498 or tpokornv@cojefferson.wa.us with questions. Background and Eligibility Information 1. Project Title: Upper Yarr Creek Protection 2. Conservation Futures Acquisition Request: $26,000 Conservation Futures O&M Request: $0 3. Total Conservation Futures Request: $26,000 4. Please indicate the type of interest contemplated in the acquisition process. X Warranty Deed OR Easement Other(Please describe below.) In whose name will the property title be held after acquisition? Northwest Watershed Institute 5. Applicant Information Name of Applicant or Organization: Northwest Watershed Institute Contact: Peter Bahls Title: Executive Director/Conservation Biologist Address: 3407 Eddy Street, Port Townsend,WA 98368 Phone: (360) 821-9566, ext. Fax: ext. Email: peter@nwwatershed.org 6. Sponsor Information: (if different than applicant) Same Organization Name: Contact: Title: Address: Phone: . Fax: ( ) - , ext. This application was approved by the sponsor's legally responsible body(e.g., board, council, etc.) on February 25, 2025 1 2025 CFF Program Application 7. Project Location Street Address or Description of Location: 12 Old Tarboo Road, Quilcene Driving Directions from Port Townsend: South on Center Road, left at Old Tarboo Road and park Section: 29 Township: 28 N Range: 1 W Assessor's Parcel Number(s): 801-293-003 Please differentiate current and proposed ownership of each APN and indicate if the parcel is to be acquired with CF funds or used as match. The parcel is to be acquired with CF funds Please list the assessed values for each property or APN, as applicable. 801-293-003 = $34,125 8. Existing Conditions New Site: Yes No Number of Parcels: 1 Addition to Existing Site: Yes No Acres to Be Acquired: 1.03 Total Project Acreage(if different): Current Zoning: 1 per 5 Existing Structures/Facilities: No Any current covenants, easements or restrictions on land use: No Current Use: Vacant land Waterfront(name of body of water): Yarr Creek, tributary to Tarboo Creek Shoreline(linear feet): NA Owner Tidelands/Shorelands: NA 9. Current Property Owner X is _is not a willing seller. Project Description 10. In 1,000 words or less,provide a summary description of the project,the match, and why you think preserving this property is important.Name three top objectives for the property(other than those related to funding). Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Fund Program funds including: vegetation,topography, surrounding land use, and relationship to parks, trails, and open space. Describe the use planned for the site, any development plans after acquisition(including passive development),characteristics of the site which demonstrate that it is well-suited to the proposed use, and plans for any structures currently on the site. If applicable, describe how the site project relates to a larger conservation program(please identify),and whether the project has a plan, schedule and funding dedicated to its completion. Please also list any important milestones for the project or critical dates, e.g. grant deadlines. List the dates and explain their importance. Please attach a spreadsheet of the budget. Background, goals, and objectives 2 2025 CFF Program Application Since 2002, Northwest Watershed Institute (NWI),Jefferson Land Trust, and over 40 partnering organizations have been working on a landscape scale project to protect and restore the Tarboo- Dabob Bay watershed, with over 4,000 acres conserved to date. The three main objectives of the conservation effort are to: 1) protect and restore the stream and wetland corridor, from the headwaters of Tarboo Creek to Dabob Bay, 2) conserve uplands for sustainable forestry, 3) preserve lands within the Dabob Bay Natural Area. For this project, NWI proposes to permanently protect a one acre parcel of critical stream and riparian habitat along Upper Yarr Creek. NWI purchased the property in 2023 to prevent development that would have impacted water quality, wildlife habitat, and downstream salmon habitat in Yarr Creek and Tarboo Creek. The Jefferson County Conservation Futures Manual does not appear to prevent a conservation organization from securing reimbursement toward a property purchased prior to the grant agreement being in place. The manual does require that a Statutory Warranty Deed (SWD) be placed on the property that includes a paragraph of specific deed restriction language required by the county. Since this property was purchased by NWI in 2023, NWI is requesting county approval for reimbursement toward the fee simple appraised value of the property through one of two methods: 1) after the Conservation Futures grant agreement is in place, NWI re-records the Statutory Warranty Deed and includes the county's required language (see Supplemental information for example of the re-record of deed restriction), or 2) prior to signing a Conservation Futures grant agreement, NWI sells the property to an interim private buyer,then after the grant agreement is place, NWI purchases the property back and records a new SWD with the addition of the county's deed restrictions. Proposed uses The Property will be owned and stewarded by NWI as a unit of the Tarboo Wildlife Preserve.The property will serve as one of the places NWI brings students and other groups for field tours and educational trips to learn about the Tarboo watershed and stream habitats. Critical dates and urgency To afford permanent protection and stewardship of the property, NWI needs to secure at least partial reimbursement for the purchase made in 2023. The property has no deed restriction on it at present and NWI may need to sell the property in the future without funding to help fund the purchase and long term stewardship. 11. Estimate costs below, including the estimated or appraised value of the propert(ies) or property right(s) to be acquired, even if Conservation Futures Fund funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. 3 2025 CFF Program Application JCCF Match to Total Request JCCF Cost Timeline Acquistion NWI Upper Yarr Ck property 20,000 20,000 40,000 Aug-25 Acquisition Related Costs: Aug-25 Deed recording/legal/closing costs 1,000 1,000 Appraisal 5,000 5,000 Operations and Maintenance (O&M) Stewardship Plan 3,400 3,400 Sep-25 Project management and administration 2,600 2,600 Mar-25-Sept 25 Total Project Costs 26,000 26,000 52,000 Percent match to JCCF 50% Estimated or Appraised Value of Propert(ies) to be Acquired: $40,000 Total Estimated Acquisition-related Cost (see Conservation Futures Manual for eligible costs): $8,600 Total Operation and Maintenance Cost: $3,400 Total Project Cost: $52,000 Basis for Estimates (include information about how the property value(s) was determined, anticipated acquisition- related costs, general description of operation and maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work): Estimate of fee simple fair market value is based on a sale of property to NWI in 2023 for$37,000 and some increase since then. Scored Questions 1. To what degree does the project leverage contributions for acquisition from groups, agencies or individuals? Sponsors or other organizations are required to contribute to acquisition of the proposed site and/or operation and maintenance activities. 1 a. Please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures Fund program funds. Describe 1 b. Matching Fund Estimate Acquisition O&M Conservation Futures Funds Requested $26,000 $0 50% Matching Funds/Resources* $22,600 $3,400 50% Total Project Acquisition Cost $48,600 $3,400 100% 4 2025 CFF Program Application *If a prior acquisition is being proposed as match,please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. 1 c. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when? NWI land match $20,000 Yes No 2025 Yes No 2025 NWI labor donation $6,000 Yes No 2025 Yes No 2025 NOTE: Fifty percent(50%) matching funds are required, and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation of property or a property right can be considered as a matching resource. Donation of resources for on-going maintenance or stewardship ("in- kind"contributions) are not eligible as a match. 2. To what degree has the project sponsor identified the long-term stewardship issues for the proposed project? 2 a. Identify any factors, threats, or stressors that could negatively affect the conservation values and/or community benefits for which the property would be conserved. No major stewardship issues. Property boundaries have been surveyed and marked.Adjoining property on two sides is permanently protected for forestry under conservation easement by Leopold-Freeman Forests. 2 b. Describe the management strategies that the stewardship plan will include to address the identified factors, threats, or stressors, including any actions planned to make these negative outcomes or impacts less likely. Stewardship plan will the following management strategies: baseline assessment and restoration and stewardship plan to include: debris cleanup, annual monitoring for weed control and encroachment issues, road decommission and revegetation, potential selective thinning (non- commercial), and tree planting as needed to help restore older forest habitat and species and structural diversity. 2 c. Describe any existing water rights, and current uses of water. Identify any conservation values currently being protected that are dependent on these sources of water. No water rights and no use of water on the property. 3. To what degree has the project sponsor demonstrated effective long-term stewardship of a similar project? 3 a. Describe the sponsoring agency's previous or on-going stewardship experience. Northwest Watershed Institute is a nonprofit conservation organization that provides scientific, technical and on-the-ground support for watershed restoration and has been conducting habitat stewardship and restoration projects in the Tarboo watershed for over 20 years. NWI employs 5 2025 CFF Program Application conservation biologists and professional restoration field crew and has extensive experience stewarding and managing the Tarboo Wildlife Preserve and private and state conservation properties using professional staff, experienced field crew, contractors, and volunteers. 3 b. Has the project sponsor and/or applicant been involved in other projects previously approved for Conservation Futures Fund funding? No, neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures Fund funds. X Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures Fund funds. Please provide details: Yes. NWI has been involved in eleven previous successful Conservation Futures funded projects in the Tarboo watershed including nine conservation easement projects proposed jointly by NWI and JLT and two fee simple projects. NWI is now completing the West Slope Forest acquisition funded in 2024. 4. To what degree is the project a part of an adopted open space, conservation, or resource preservation program or plan that was open to public review and comment, or identified in a community conservation effort that provided opportunities for public input? The proposed acquisition: X is specifically identified in an adopted open space, conservation, or resource preservation program or plan,or community conservation effort, that provided opportunities for public review and comment. Please describe below, including this project's importance to the plan. Please also reference the website of the plan if available or include the plan with this application. complements an adopted open space or conservation plan that was open to public review,but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. is a stand-alone project, or part of a project that was not open to public review. Jefferson Land Trust's Jefferson County Conservation Plan (2010)generally identifies the Property as within a priority forest conservation area. https://www.saveland.org/wp- content/uploads/2016/06/2010 JLT ConservationPlan LoRes.pdf More specifically, the Property is within two mapped priority areas of the Tarboo Creek/Dabob Bay Implementation Strategy, a Sub-Plan of JLT's Jefferson County Conservation Plan (2010).Those priority areas are: 1) the priority habitat stream corridor area and 2) the priority forests area. The Property is a top priority in Northwest Watershed Institute's Tarboo Watershed Conservation Strategy to protect and restore the stream and wildlife corridor of Tarboo Creek (Objective 1) and also fits within the Forestland protection objective (objective 3) http://www.nwwatershed.org/tarboo-watershed-conservation-strategy.html 6 2025 CFF Program Application The proposed properties are within a large priority terrestrial conservation area identified and mapped in the Willamette Valley-Puget Trough--Georgia Basin Ecoregional Assessment(2004 Floberg et al).This priority area includes much of the Tarboo and Thorndyke watersheds. The Ecoregional plan, developed by Washington Department of Fish and Wildlife and The Nature Conservancy, is one of the primary conservation plans for Puget Sound and has received extensive public and scientific review. S. To what degree does the project conserve opportunities which are otherwise lost or threatened? 5 a. The proposed acquisition site X does does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 5 b. If applicable, please carefully describe the nature and immediacy of the threat, and any unique qualities about the site. NWI purchased the property in 2023 in a bidding war with another potential buyer who wanted to move onto the property with a trailer and storage containers that would likely have caused severe impacts to Yarr Creek, its riparian habitat, and downstream habitat on Tarboo Creek and NWI's Tarboo Wildlife Preserve. The property is comprised mostly of critical habitat of Yarr Creek, its riparian forest and associated steep slope ravines. If NWI cannot secure funding to protect the property under county deed restriction and help fund long term stewardship, NWI may need to sell the parcel and it could be heavily impacted by inappropriate residential development. 6. Are the conservation values of the project commensurate with or greater than the amount of CFF funds requested, and will both the timeframes for meeting project objectives and associated metrics demonstrate achievement of the conservation objectives? 6 a. Summarize the project's conservation values and how the CFF funds requested support these values. The project's conservation values are extremely high relative to CF funds requested because the project is low cost and most of the acreage represents critical stream and riparian habitat. Upper Yarr Creek flows into Tarboo Creek on the Tarboo Wildlife Preserve, so protection of this small critical parcel helps secure water quality and important salmon habitat downstream. The property also adjoins permanently conserved forestlands on two sides, so protection of this parcel will help long term wildlife connectivity of the larger area. 6 b. Summarize how the project's conservation values are related to the project's specific objectives. The project's conservation values of stream, salmon habitat, and water quality, as well as wildlife habitat and connectivity are directly served by NWI's objective to fully and permanently protect the parcel as a unit of the Tarboo Wildlife Preserve. 7. To what degree does the project preserve habitat for flora and fauna other than habitat for anadromous fish species? 7 a. X provides habitat for State of Washington Priority Habitat specific to the project and/or State or Federal (NOAA and USFWS) Candidate, Endangered, Threatened or Sensitive species (provide list and references). 7 2025 CFF Program Application 7 b. X provides habitat for native flora and fauna. Identify the documented habitat(s)and native flora or fauna species that will be protected by the project. 7 c. X contributes to a wildlife corridor or migration route identified by Washington Connectivity Working Group or other peer-reviewed source. If affirmative in any of the above, please describe and list the Priority Habitat(s) and Threatened, Endangered, or Sensitive species below, and cite or provide documentation of species'use.' Priority and Listed Species on-site Tarboo Creek tributaries Priority Riparian Habitat Western toad (nearby) State Candidate and Federal Species of Concern Pileated woodpecker (on site) State Candidate _Documented observations by Peter Bahls, NWI Listed Species benefited downstream in lower Yarr Creek and Tarboo Creek: Puget Sound steelhead (likely) State Candidate and Federal Threatened Hood Canal coho salmon (Yarr Ck) Federal Species of Concern Western Brook lamprey (likely) Federal Species of Concern Documented in WDFW fish distribution mapping and NWI survey data Listed Species benefited downstream in Tarboo-Dabob Bay (documented rearing habitat) Hood Canal summer chum salmon State Candidate and Federal Threatened Puget Sound Chinook salmon State Candidate and Federal Threatened Documented in NWI's nearshore fish survey report- http://www.nwwatershed.org/uploads/pdf/tarbooFishSurvey.pdf Provides habitat for a variety of native flora and fauna The project will protect stream, riparian and forest habitats that support a high diversity of at-risk fish, bird, amphibian, and mammal species that occur in Pacific Northwest forests, including western toad, amphibians, bats, bear, cougar, blacktail deer, and neo-tropical migratory birds. The property comprises stream and riparian habitat along the Yarr Creek ravine, especially important for birds and other wildlife. Wildlife corridor The property is a small but critical piece of a long-term effort to protect a significant wildlife corridor from the Tarboo valley to the uplands along Yarr Creek and also directly connects with large protected forestlands. For example, during the Conservation Futures field tour, a radio collared cougar named Yenewes was on a kill site on lower Yarr Creek about% mile away. She has a den with three cubs on the other side of Center Road and is frequently tracked in this area (Matt Mahan, Panthera project). I See, for example, http://www.dnr.wa.gov/researchscience/topics/naturalheritage/pages/amp nh.aspx http://www.wdfw.wa.gov/conservation/phs/list/ http://www 1.dnr.wa.gov/nhp/refdesk/plants.html http://www 1.dnr.wa.gov/nhp/refdesk/pubs/wa_ecological systems.pdf 8 2025 CFF Program Application 8. To what degree does the project protect habitat for anadromous fish species? 8. Describe to what degree the project protects habitat for anadromous fish species (for example: marine shorelines, stream or river corridors including meander zones, and riparian buffers). Please provide documentation and maps that demonstrate the location, quality and extent of the existing buffer and adjoining habitat. Upper Yarr Creek is listed in DNR's stream type mapping as fish bearing, and cutthroat may occur. Lower Yarr Creek, about one-quarter mile downstream, has documented use as spawning habitat by coho salmon and coastal cutthroat trout (per NWI spawning surveys since 2002). The project will protect downstream water quality for salmon in Yarr Creek and Tarboo Creek, as well as helping protect water quality of Dabob Bay, used by juvenile rearing salmon. Listed Species benefited in adjacent downstream Yarr Creek and Tarboo Creek: Puget Sound steelhead (historic) State Candidate and Federal Threatened Hood Canal coho salmon Federal Species of Concern Western Brook lamprey Federal Species of Concern Listed Species benefited downstream in Tarboo-Dabob Bay (documented rearing habitat) Hood Canal summer chum salmon State Candidate and Federal Threatened Puget Sound Chinook salmon State Candidate and Federal Threatened 9. To what degree does the project preserve farmland for agricultural use OR preserve forestland for forest management? 9 a. Describe the extent and nature of current and planned agricultural use or forest management activities of the proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds. Forest management (non-commercial) will be conducted for restoration purposes, such as weed control, hand selective thinning of young alder, planting of native tree species to restore older forest habitat.These activities will be detailed in the proposed Stewardship Plan. 9 b. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. Complete protection of the parcel will allow for full preservation and restoration of soils, water quality, and other watershed functions over time. 9 c. Does this project preserve a mix of quality farmland and forestland? This specific project involves forestland and habitat protection and does not include agriculture. However, if the definition of agriculture is broadened to include native food foraging,the Property has potential for gathering of black truffles and other edible mushrooms and deer hunting. In addition, although this property does not include agricultural lands, within the context of the large conservation effort for the Tarboo-Dabob Bay watershed, NWI,JLT, and partners are preserving a mix of agricultural lands,forestlands, wetlands, and wildlife habitats. 9 2025 CFF Program Application 10. To what degree does this project increase resiliency to and mitigation of climate change, and is the project's scale significant in regards to increasing climate resiliency? 10. Describe how this project will increase resiliency to and mitigation of climate change. Is the project's scale significant in regards to increasing climate resiliency? This project will increase habitat and wildlife resilience to climate extremes of winter flooding and summer high temperatures by: 1) protecting riparian vegetation and their undisturbed steep slopes that are vulnerable to increased erosion and sediment impacts to stream habitats during winter flooding, and 2) protecting riparian forests and their ability to provide shade that will help reduce summer stream temperatures and impacts to fish. 11. What area does the project serve? 11 a. Describe how the proposed acquisition benefits primarily a local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. Although the project acreage is small, it benefits a broad county area because it is a key part of a conservation project that extends from the headwaters of Tarboo Creek to the state's Dabob Bay Natural Area to protect and restore habitats and wildlife connectivity on a landscape scale. In particular, the project proposes protection of a critical section of Yarr Creek, where, if developed, there would likely be outsized impacts on downstream salmon habitat, adjoining protected habitats of the Leopold-Freeman Forest and the Tarboo Wildlife Preserve, and potentially the water quality of Dabob Bay, regionally important for shellfish production and public recreation. 11 b. Is the project located in an area that is under-represented by CFF funded Projects?Areas that Conservation Futures has not been able to support to date include, Toandos Peninsula, Dosewallips Valley, Bolton Peninsula, and the West End. No. 12. To what degree is the applicant committing to providing educational opportunities, interpretive opportunities, and/or serve as a general community resource that does not reduce the conservation value(s) of the project? 12. Describe the educational or interpretive opportunities that the applicant will provide for public access, educational or interpretive displays (signage, kiosks, etc.) on the proposed site, including any plans to provide those improvements and any plans for public accessibility that will not reduce the conservation value(s) of the project.'Provide the time frames when each of the above will be implemented. The Property is easily accessible from Center Road and NWI plans to use it as site for supervised field trips of the Tarboo watershed for NWI's education programs for students and community members. As described in the letter from the Port Gamble S'Klallam Tribe,the Property will also serve an important place for the Tribes to pass on traditions of sustainable gathering of forest plants used for cultural purposes and ceremonies. 2 The words "education"and"interpretation"are interpreted broadly by the CFF Committee. 10 2025 CFF Program Application The Property is also available for public access by prior permission, including deer hunting, berry picking, and mushroom picking, three important recreational uses in rural areas 13. To what degree does the project preserve historic or culturally significant resources3? 13. The proposed acquisition includes historic or culturally significant resources4 and is registered with the National Register of Historic Places, or an equivalent program. X is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. none of the above. If affirmative in any of the above,please describe below, and cite or provide documentation of the historical cultural resources. Please see letter from Laura Price, Cultural Resources Director for the Port Gamble S'Klallam Tribe, that attests to the importance of this Property for preserving and restoring cultural resources. The Port Gamble S'Klallam Tribe,Jamestown S'Klallam Tribe, Lower Elwha S'Klallam Tribe, and Skokomish Tribe are signatories to the Point No Point Treaty and retain the right to hunt and gather within their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to rely upon a diversity of intact native plant communities in the region, as they have for thousands of years, as places where they gather traditional food, medicine, and materials for use in all aspects of their cultural life, including social and religious. The project site's forest is easily accessible and will provide resources for tribal uses, such as cedar bark for basket weaving. If funded,the project will permanently conserve the forest while allowing sustainable harvest and gathering to maintain tribal cultural traditions. Standalone 0 & M Projects 14. Applications for standalone Operation and Maintenance funding to be scored on a scale of 1- 100 based on information provided. Consider the CFF Manual and the topics below,for example: 14. Please describe in detail, the reason 0& M funds are needed, proposed 0& M activities, and how they protect resources cited in the original acquisition project. Attach additional information such as up-to-date stewardship plan, maps, field reports, work plan, budget, timeline, etc., to support the application,if appropriate. 0 & M projects must address a compelling, immediate need. Specifically include whether the project has an up- to-date stewardship plan. If there is such a plan, is it being implemented and is the proposed 0 &M work specifically included in the plan? Also, describe any unforeseen or urgent threats to the resource conservation Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. 11 2025 CFF Program Application Via Viagi, V values of the site and whether the proposed 0&M activities will mitigate those threats and/or prevent potential future threats. Verification 15. Sponsor commitments: 15 a. Sponsors of projects that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved,or three years after the acquisition funds are disbursed to the applicant,whichever is later.The progress report must address any changes in the project focus or purpose,progress in obtaining matching funding,and stewardship and maintenance. Sponsors receiving 0&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project"report card"that will be submitted annually to the Board of County Commissioners. 15 b.If this project is approved for funding,I understand the sponsor is required to submit pro ess reports for three years and for any year in which 0&M funds are expended. /26 Initials Date 15 c. If,three years after the date funding is approved by the Board of County Commissioners,the project sponsor has not obtained the required matching funds,the Committee may request the Board of County Commissioners to nullify their approval of funds,and may require the project to re-apply. If this project is approved for funding,I understand that we may be required to re-submit the application if the pro sponsor does nit ob)ain the necessary matching funding within three years. Initials 2 //Date 15 d.The applicant has reviewed all project requirements and all information in the application is accurate to the best of their knowledge. P6 Initials 2/2Date 15 e. The sponsor commits to providing long-term wardship to achieve the conservation and protection goals of the project as proposed in ns application or as ma be modified with recommendation of the CF Committee and approval of the BoCC. /�I& Initials y ate S 12 2025 CFF Program Application . LU' Tarboo Northwest Watershed -- - Watershed Institute Assessment — �., Port Towns Watershed Locator k >- I ,,?� A z , • 5 0 5 Miles 1�It 4, March 2004 U C J . mi y m %i „.Pro osed k _� )� Tarboo p �'�' Project Pro Watershed �/ � _,', Hood.,. - •, l Canal Olympic Quilcene t,, �j Bndge.;- OQ Mountains f' V �' } , r' P O i Q 3 . 0.) r^ r �r1 F it 1 ' Seattle 7,..c..;), I ,r---. ''.. -;_-_-_-- ,.. Fir • ' Weinertori --I / f j f" Northwest Washington State 1 6r 4 r jC l„ Figure 1. Project location within the Tarboo Creek-Dabob Bay and Hood Canal watersheds. Tarboo Watershed Parcel Ownership Parcels DNR Natural Area Nortlw.est Watershed Institute is County Park WDWF Critical Nadtat preserve .... %.i DNR Trutt Lands Tr. ._.. ........ Pope Resources Other•Pirate ' ,.. Under Appraisal III Dabob NRCA 2016 Expansion Conservabon Easements �/� 1 gig Restoration Projects Conserreeon S Restoration Aquatic Lands Unknown j I Pudic { ' Private Northwest Watershed institute .._._.. Private road County road State road it/i • Lakes �V VY streams Northwest Watershed Institute 7 u .LA Dec 2018 0 0.5 1 Miles .e rT i e.'+ basoa +aa arvu say sold. .}' tins apdG r�i 1 Figure 2. Project location within the Tarboo Creek watershed. C F - Mc/ tin t } L..\\\„, cb i @ % I) _., f / 4/1"'; - I //---- V } Cf �` .0 0.,e; yfr , _ , I, „, vapir t . /46 f I ir fir` P ojec .,-r, ' \ ...___ , .��"� Ar cm 1 ____ _____ Th. 0 c., .. ./....y, Zion View Ln 1 _, \ l 91. jic) 1.t ij i ci S �'" /l —I urit��n ,Igo j %', ,,,,' Figure 3.The proposed acquisition adjoins permanently conserved lands of the Leopold-Freeman Forests (hatched lines) and upstream of NWI's Tarboo Wildlife Preserve (green). r. tx y�� • • y.,j,o Z. '� a .J► M '. A,* . .y . ,`. '_1 ,. tckfi+\N °`» r . ','"` �y ,.' ' ` ./� F + ' t , ' • •r* , a" =6, vJ-. ' _4 „„ , . 4 - -4'4! ' .--t.,. t ,..„. . -. i ,....,.. . „ a ma o ... . .,. t, y i y *;G: • r �,. . , j 50.. ^1 a y „i -" s"):0444,;':wAt'..-C,"-, ' '',..4.- l'' ,'''1104,4•110iCial. ` ' i. ...' ''' .,_ b'-' ',44, .4‘ * . ' w^,K�7•`...yr,w•.w...� �.a •� .it•.. -*4 IP- c. — yA °f4'y' i '„ r i s • .r/` 4 . 4. ,,,,, ! ,�af,�y-„p-d a ' ,* 'mar ' ' * tlf;o iitt' {' �'r .,14. .. j 9 « t* =;. •,.. ' ,4 ,�,.% .�..it� ,. + 11'''. ,i , ' v 'i',�' K s ew p N i, 'Ili1 1; .4...... r„w♦�' 'rP'4. >' , '4 -,"`" 41 •� 4 °4+r :,. ]Fri;1 .a. r e ,* . ' :'le f44' *;;.7.4 I,sl '4:: r ' y ,, .'�C`' 't # g�'� +rrA "} 'V►'.�+•tiy-.i•„11�a � .,f r ,�' y#,�w,<s',�'r�r�"'�^ +4 1 r , a a� R - . s 4,.8 t•s ..+a • r� ,. ate-d�.--.i'►•4 r .° .. has, ,, 4 . . .„..,} , i. '.�,1.41, :' j-.. ^r *�r4R �k, � .� "i�..�z' ■ �^y 12 40 2 r' 4. � Hr ��itiA‘ y��2^ e Figure 4.The project is along Upper Yarr Creek (mapped in red)that flows to the Tarboo Widllife Preserve. u axra ` y , 4, "". . _ q ,, , i r if so 29,. -. II Upper Yarr Ck ,o :;411.tear. i .. 1- , Figure 5. Lydar show the project in relation to Yarr Creek and tributaries in ravines. Nos � ' 1291 z ott v . , 1...__VA .• • . 'r..' . ,,. . ., .,y `* . +R i +"'` y . ^YS fir Y Q` Q Y i w I' * R ? " .... - , ,e, )'.VP �' .' d §tea ,'4, &,} 4,04 ...., - , ..„,,,,os •! 29_ ' '4...' `' ' ` !..!....,.. %A k ...-4. •„ ;00#/ a4,-. : ' ..• . � 4 .. - '_ , .....,..„ 4,: , tts 4ue Figure 6. Arial photo showing actual stream course and riparian vegetation through the property. q "roj t lc- 4( I,��F ; A• a,Arum.1 n A1429 D:I.PPG Figure 7.Lydar image showing Upper Yarr Creek in ravine that runs through the property. Orange line is incorrect stream location shown on Jefferson County GIS. t, "ram 4: 4*, r11 J i tx+ f } L yt� t y �'r • itt ';4, ilk's'. ;L'i''' `' - 1 ,,,,N+,.' '04.%%%1:: ,`; ''' 4U.,."t" „°', f, '''. p . -' " , , yvt 4,,41 0 ‘' 1 jeg3{ Gr q. 4 '� i4 b 1 ,F <•. '@ :;:;; t4 •-. ''''''s'.".'4 . \,, ''c.,.,, k ‘Tilth . .\lam.N.:14: `• 4.� le y` .l '�„i �'. , �j' 4#111 _:`. M} 4-,v r ♦. R / ►, x.,lts • �`' wit c y7IN ",:,x£ • ` !! L�' �t $:'�S'w `R..f" P' t it` ti. * C. 1 ♦'1�" # f . �• t ,,, �,t ..rim t... '�' .✓,, i.�s ,� < 4 -ram ^ f -e 4, .4.- ' - Y� iE ^YI.Y`1� -•r y'� Ste( •,-.., ., -.- - ..., .... tx, „I ' 4--T.-0 , „1„.",ki '•1 w J' i•r1 J"ty .-. Y " 41 �,1' cn 1 r t it Y '4 1 7"♦.4 v 4 '- ' ' i �.. .**7 .�+-.. v s ,, r ♦ t 'kr '�` . . . , .. , i, .. .-4, ° s'.. - / it'-'.*‘ -.4 - -,ir.f ...= \ %.**, •-• tf,41, _ , '' 4,., , : •P tolote44 , - , . ;,, li . , r:,*ti..„0, 11(0104 4 Figure 8. Upper Yarr Creek and riparian forest on the property. Most of the property is Priority Habitat. s¢ g'7 � ' . r r i a sue. r.,.- If %, 1 t k :,..ilk,, , r44:-_,,,,i,, ..a,-y . 41:t x - 5 .. n i. 11 k 4 i i s * = i -1. **ns,"y/ ,.� „ ,� AO h � Figure 9. Mixed mature native forest on the property. ,:-,„,,':-I:7: '','-'1 ,,,,4,e/ , . } , , A it T 1:. 'I.,* w ;t !'' ' by,k Y sS k i '. .: _ , _ � t� �`IIW,- • SS w v t ".�,�p 'py !. � t ;it .. • ' `"'n ix . ' .F;, p §. 4 y 4,1„,., , p�T..`jjx' ,'may, 1«X_ S ',4.(Y .v§ — "§; n 4 d.t. Y 41 ¢ , w y� j r x t r ye y., A,�,AA's. •.R i: • is 1 w ' Figure 10. Steep side slope in Upper Yarr Creek ravine. i '" 4 Q 7' 3.:4* .� -. ' is /: ‘i,,, ., , - ,: 3 t r t > a 4 r j '�` f cs .�", -, . a�Y ,fib, _ ` e 1 ,.F., - r ai �Aj_ a'_ss� ` rat b .F • ," .j lsV'3_: '1,h E f Y *. Z. JF .. ,-. air �,i s- �F yt '^y ' yr # #A.ry ;, "K'q + Y P li 0 T ` ,", ' ,- _ k y 4 . � 0 (���°yq,,.n"1S.fi g ' 4 F :,. ,,, XS Figure 11. The south side of property includes younger hardwood forest. ! 1 ,r e _ +.r.:t r - lipprirmiro. ' -"44114. ,-- ....„ - 4. 4 Mr 411V le a r y .. .-� f .r,� . tN':FA. Or fit . ill,,, ' ' Z , -�^ ttpt 4 � .*., Figure 12. Western toad, a state listed at-risk species, has been found nearby and is expected to use forest habitat on the property. Jefferson County Conservation Futures Proposal 2025 Upper Yarr Creek Acquisition Project SUPPLEMENTAL MATERIALS Proof of willing seller: See narrative, project sponsor proposing to sell deed restriction to property already owned by NWI. Estimate of value: No appraisal required. Requesting $20,000 or less. Site location map: See separate PDF, maps and photos Critical areas map: See separate PDF, maps and photos Project boundary map: See separate PDF, maps and photos Color images: See separate PDF, maps and photos Development plan or Narrative: NA Proof of 501c3 status Current budget: 2024-2025 Board roster: 2024-2025 Staff roster: 2025 Financial statements: last fiscal year July 2023-June 2024 Resolution to submit proposal: NWI executive committee resolution Cultural Resources letter from Port Gamble S'Klallam Tribe, Feb 27, 2025 _ /W . 3407 Eddy Street I Port Townsend, Washington 98368 Northwest voice 360.385.6786 fax 360.385.2839 Watershed Institute email peter@nwwatershed.org I www.nwwatershed.org February 27, 2025 Dear Jefferson County Conservation Futures Committee: NWI is willing to protect the Upper Yarr Creek property through compensation to NWI for placing a permanent county deed restriction on the property that prohibits all uses incompatible with habitat conservation and restoration. Sincerely, Peter Bahls Executive Director INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: op 24 06 93-1325820 DLN: 17053259778026 NORTHWEST WATERSHED INSTITUTE Contact Person: 3407 EDDY STREET CLINTON L FORTNER ID# 31163 PORT TOWNSEND, WA 98368-0000 Contact Telephone Number: (877) 829-5500 Public Charity Status: 170 (b) (1) (A) (vi) Dear Applicant : Our letter dated JANUARY 2002, stated you would be exempt from Federal income tax under section 501 (c) (3) of the Internal Revenue Code, and you would be treated as a public charity, rather than as a private foundation, during an advance ruling period. Based on the information you submitted, you are classified as a public charity under the Code section listed in the heading of this letter. Since your exempt status was not under consideration, you continue to be classified as an organization exempt from Federal income tax under section 501 (c) (3) of the Code. Publication 557, Tax-Exempt Status for Your Organization, provides detailed information about your rights and responsibilities as an exempt organization. You may request a copy by calling the toll-free number for forms, (800) 829-3676 . Information is also available on our Internet Web Site at www.irs .gov. If you have general questions about exempt organizations, please call our toll-free number shown in the heading. Please keep this letter in your permanent records. Sincerely yours, 191? Lois G. erner Director, Exempt Organizations Rulings and Agreements Letter 1050 (DO/CG) 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 Ordinary Income/Expense Income Grant Revenue 4010• Federal Funds 1,500,000.00 4020•Foundation 2,000.00 4030•State Funds 42,000.00 Total Grant Revenue 1,544,000.00 Contributed Income 4040• Restricted 131,000.00 4050•Unrestricted 120,000.00 Contributed Income-Other 0.00 Total Contributed Income 251,000.00 Rental/Lease Income 4165•Olson tideland lease 4,000.00 4175•Rental Income Reinertsen Rental 18,000.00 4182•Rental Income-Yarr Caretaker 6,000.00 Total Rental/Lease Income 28,000.00 Consulting/Miscellaneous 4210•Consulting Fees 2,000.00 Total Consulting/Miscellaneous 2,000.00 Total Income 1,825,000.00 Gross Profit 1,825,000.00 Expense Health benefits 6096• Health insurance 34,000.00 6094• HSA Contribution 10,600.00 Total Health benefits 44,600.00 6041 • Paypal Fees 300.00 6010•Advertising 100.00 6030•Automobile Expense 2,500.00 6040• Bank Service Charges 500.00 6060• Depreciation Expense 1,600.00 Insurance 6091 •Auto 4,000.00 6093• Liability Insurance 4,000.00 Total Insurance 8,000.00 Land Acquisition 6170•Closing Expenses 40,000.00 6150• Land 1,300,000.00 Land Acquisition-Other 0.00 Total Land Acquisition 1,340,000.00 6180•Licenses and Permits 0.00 6210•Miscellaneous 0.00 Payroll Expenses Gross wages 6237•Education Director 24,000.00 6231 •Director 90,000.00 6232•Stewardship Director 36,000.00 6233•Project Assistant 7,000.00 6234•Field Crew 88,000.00 Total Gross wages 245,000.00 Page 1 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 Payroll Taxes 6246• Paid Family and Medical Leave 0.00 6240• Medicare 3,500.00 6241 •Social Security 15,000.00 6243•Workers Comp 11,000.00 6245•WA State Unemployment 3,600.00 Total Payroll Taxes 33,100.00 Payroll Expenses-Other 0.00 Total Payroll Expenses 278,100.00 6250•Postage and Delivery 750.00 6260• Printing and Reproduction 750.00 Professional Fees 6271 •Accounting 1,500.00 6274• Legal Fees 2,000.00 Total Professional Fees 3,500.00 Program Expense 6284•Student Stipend 2,000.00 6282• Fees 1,600.00 6283• Project subcontractors 40,000.00 6286•Overrun 0.00 Total Program Expense 43,600.00 6290•Rent 12,000.00 Repairs and Maintenance 6350•Septic Repair 0.00 6310•Building Repairs 50,000.00 6320•Computer Repairs 250.00 6330•Equipment Repairs 3,000.00 Repairs and Maintenance-Other 500.00 Total Repairs and Maintenance 53,750.00 Supplies 6420• Field Supplies 30,000.00 6440•Office Supplies 2,000.00 Total Supplies 32,000.00 Taxes 6510• Property Taxes 5,000.00 Total Taxes 5,000.00 Telephone/Communications 6650•Mobile phone 1,800.00 6610•Internet Server 800.00 6620•Telephone-Local 0.00 Telephone/Communications-Other 0.00 Total Telephone/Communications 2,600.00 Travel&Ent 6720• Meals 140.00 Total Travel&Ent 140.00 Utilities 6810•Gas and Electric 600.00 Utilities-Other 0.00 Total Utilities 600.00 Page 2 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 9000• Suspense 0.00 Total Expense 1,830,390.00 Net Ordinary Income -5,390.00 Other Income/Expense Other Income 7010• Interest Income 10,000.00 Total Other Income 10,000.00 Other Expense 8016•Conservation Ease/Deed Restri 0.00 Total Other Expense 0.00 Net Other Income 10,000.00 Net Income 4,610.00 Page 3 Northwest Watershed Institute BOARD OF DIRECTORS 2024-25 Board Members and Affiliation and Term on the Board of Directors Officers Peter Bahls Peter Bahls is currently full time Executive Director and Conservation President,Vice-President, Biologist for Northwest Watershed Institute. Treasurer Term- 2023-2025 3407 Eddy Street Port Townsend,WA 98368 Jean Ball Jean Ball is a farmer and naturalist in Quilcene,Washington. Board Member Term- 2024-2026 10221 Center Road, Quilcene,WA 98368 Scott Calhoun Scott Calhoun studied biology and geology in college and graduate Board Member school where he specialized in shorelines and watersheds. He owns forestland in the Tarboo watershed. 5710 59th Ave NE Seattle,WA 98105 Term- 2024-2026 Janis Henry Janis Henry is a retired biotech patent attorney and chemist with over Secretary 30 years of experience. She is a life-long nature enthusiast and embraces adventure travel. 14445 SE 55th Street Bellevue,WA 98006 Term- 2023-2025 Gene Jones Gene Jones is a member of the Port Gamble S'Klallam Tribe and Board Member spiritual leader for four Tribes in the Olympic Peninsula region. 5860 NE Totten Road Term- 2023-2025 Poulsbo,WA 98370 Liz Hoenig Kanieski Liz Hoenig Kanieski has over 25 years of experience as a field biologist, environmental educator,and environmental planner. Much of her work 1005 Lawrence Street has focused on watershed protection,citizen engagement and water Port Townsend,WA 98368 resources. Term- 2023-2025 Keith Lazelle Keith Lazelle is an award-winning nature photographer who lives on Board Member Dabob Bay. His work has been used by many environmental organizations including Audubon,Hoh River Trust,The Nature PO Box 192 Conservancy,and NWI. Quilcene,WA 98376 Term- 2024-2026 Northwest Watershed Institute STAFF ROSTER 2025 Peter Bahls, Executive Director Wesley Meyers, Stewardship Director Megan Brookens, Education and Outreach Director Robin Enge, Administrative Assistant Eva Ellis, Field Crew Bernt Goodson, Field Crew Zack Hawkes, Field Crew Hanna Petersen, Field Crew Veronica Phelan, Field Crew Grace Rabbitt Burke, Field Crew Trevor Williams, Field Crew Abel Dances, Carpenter 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 Ordinary Income/Expense Income Grant Revenue 4010• Federal Funds 2,057,763.40 4020• Foundation 1,614.27 4030•State Funds 41,710.22 Total Grant Revenue 2,101,087.89 Contributed Income 4040• Restricted 130,710.00 4050• Unrestricted 116,423.00 Contributed Income-Other 520.00 Total Contributed Income 247,653.00 Rental/Lease Income 4165•Olson tideland lease 4,000.00 4175• Rental Income Reinertsen Rental 7,673.37 4182• Rental Income-Yarr Caretaker 4,139.46 Total Rental/Lease Income 15,812.83 Consulting/Miscellaneous 4210•Consulting Fees 1,155.00 Total Consulting/Miscellaneous 1,155.00 Total Income 2,365,708.72 Gross Profit 2,365,708.72 Expense Health benefits 6096• Health insurance 31,075.72 6094•HSA Contribution 10,300.00 Total Health benefits 41,375.72 6041 • Paypal Fees 289.80 6010•Advertising 127.05 6030•Automobile Expense 2,033.19 6040• Bank Service Charges 499.77 6060•Depreciation Expense 1,600.00 Insurance 6091 •Auto 4,130.00 6093• Liability Insurance 4,059.45 Total Insurance 8,189.45 Land Acquisition 6170•Closing Expenses 0.00 Total Land Acquisition 0.00 6180• Licenses and Permits 15.00 6210• Miscellaneous 163.37 Payroll Expenses Gross wages 6237• Education Director 23,754.50 6231 • Director 73,333.48 6232• Stewardship Director 33,682.00 6233• Project Assistant 6,119.00 6234• Field Crew 86,245.20 Total Gross wages 223,134.18 Page 1 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 Payroll Taxes 6246• Paid Family and Medical Leave 1.19 6240• Medicare 3,305.81 6241 •Social Security 14,169.09 6243•Workers Comp 10,942.09 6245•WA State Unemployment 3,687.53 Total Payroll Taxes 32,105.71 Payroll Expenses-Other 4,853.32 Total Payroll Expenses 260,093.21 6250•Postage and Delivery 744.74 6260•Printing and Reproduction 758.11 Professional Fees 6271 •Accounting 1,375.00 6274•Legal Fees 324.50 Total Professional Fees 1,699.50 Program Expense 6284•Student Stipend 0.00 6282•Fees 1,553.89 6283•Project subcontractors 82,835.44 6286•Overrun 68.55 Total Program Expense 84,457.88 6290• Rent 12,000.00 Repairs and Maintenance 6350•Septic Repair 9,769.44 6310• Building Repairs 9,207.34 6320•Computer Repairs 248.20 6330• Equipment Repairs 2,868.14 Repairs and Maintenance-Other 474.37 Total Repairs and Maintenance 22,567.49 Supplies 6420•Field Supplies 8,204.99 6440•Office Supplies 1,951.11 Total Supplies 10,156.10 Taxes 6510•Property Taxes 4,963.81 Total Taxes 4,963.81 Telephone/Communications 6650• Mobile phone 1,567.40 6610• Internet Server 758.50 6620•Telephone-Local 81.26 Telephone/Communications-Other 142.28 Total Telephone/Communications 2,549.44 Travel&Ent 6720• Meals 144.65 Total Travel&Ent 144.65 Utilities 6810•Gas and Electric 696.03 Utilities-Other 770.16 Total Utilities 1,466.19 Page 2 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 9000• Suspense 267.06 Total Expense 456,161.53 Net Ordinary Income 1,909,547.19 Other Income/Expense Other Income 7010• Interest Income 9,952.06 Total Other Income 9,952.06 Other Expense 8016•Conservation Ease/Deed Restri 782,040.09 Total Other Expense 782,040.09 Net Other Income -772,088.03 Net Income 1,137,459.16 Page 3 12:55 PM Northwest Watershed Institute 01/10/25 Balance Sheet Accrual Basis As of June 30, 2024 Jun 30,24 ASSETS Current Assets Checking/Savings First Fed CD-3090 51,430.51 First Federal CD-3091 51,523.58 First Fed Savings 52,417.11 1020•Checking-Kitsap 59,986.66 Total Checking/Savings 215,357.86 Accounts Receivable 1200•Accounts Receivable 22,048.75 Total Accounts Receivable 22,048.75 Other Current Assets 1250• Prepaid Insurance 2,115.50 1300• Employee advance 163.88 1499• Undeposited Funds 111,313.33 Total Other Current Assets 113,592.71 Total Current Assets 350,999.32 Fixed Assets 1513•Vehicle-2001 Ford xtra Cab 8,000.00 1554•Trailers 4,000.00 1512•Vehicle-Ford pickup 4,150.00 1530• Kubota Tractor 16,709.10 1590•Accumulated Depreciation -28,592.08 Property 1555•Capital Improvements 3,035.20 1551 •Land 2,197,217.48 Total Property 2,200,252.68 Total Fixed Assets 2,204,519.70 TOTAL ASSETS 2,555,519.02 LIABILITIES&EQUITY Liabilities Current Liabilities Accounts Payable 2000•Accounts Payable 5,965.77 Total Accounts Payable 5,965.77 Other Current Liabilities 2100• Payroll Liabilities 2105• Fica,Medicare,FWH Payable 5,148.22 2109•WA-Paid Fam Med Leave Emp. 446.33 2120•Workers Comp Payable 5,013.23 2130•SUTA&EAF Payable 1,663.44 2125• FUTA Payable 267.06 2100• Payroll Liabilities-Other 489.77 Total 2100 •Payroll Liabilities 13,028.05 2250•Rental Security Deposit 3,000.00 Total Other Current Liabilities 16,028.05 Total Current Liabilities 21,993.82 Total Liabilities 21,993.82 Page 1 12:55 PM Northwest Watershed Institute 01/10/25 Balance Sheet Accrual Basis As of June 30, 2024 Jun 30,24 Equity 1110• Retained Earnings 1,396,066.04 Net Income 1,137,459.16 Total Equity 2,533,525.20 TOTAL LIABILITIES&EQUITY 2,555,519.02 Page 2 Ji/ W 3407 Eddy Street ( Port Townsend, Washington 98368 Northwest voice 360.385.6786 fax 360.385.2839 Watershed Institute email peter@nwwatershed.org I www.nwwatershed.org Memo To: Tarboo Creek Conservation Project File From:Peter Bahls, Executive Director CC: Date: February 25, 2025 Re: Executive Committee Resolution to Submit Jefferson County Conservation Futures 2025 Application for the Upper Yarr Creek project. At its Annual Board Meeting of June 21, 2024, the Board of Directors of Northwest Watershed Institute unanimously approved the following resolution— An executive committee comprised of Peter Bahls and Janis Henry shall serve as an executive committee to have the power to make on-going decisions between Board meetings per the existing by-laws. On February 25, 2025 the executive committee approved the following resolution— DECIDED — Northwest Watershed Institute shall sponsor and submit a grant application for Jefferson County Conservation Futures 2025 Program to propose acquisition and restoration of the 1-acre Upper Yarr Creek project. Priority: The Toandos Forest property is 6x the size of the Upper Yarr property and is at high risk of development if JCCF funding is not awarded, so it is considered the top priority for NWI. Y--d/11:-64 / Peter BahIs / Janis Henry President / Secretary February 27, 2025 Peter Bahls, Executive Director Northwest Watershed Institute 3407 Eddy Street Port Townsend,WA 98368 Dear Mr. Bahls: I understand that Northwest Watershed Institute is applying for Jefferson County Conservation Futures (JCCF)grant funding to acquire and protect Upper Yarr Creek, 1 acre of stream and riparian forest habitat adjacent to protected lands of the Leopold-Freeman Forest and flowing into lower Yarr Creek on NWI's Tarboo Wildlife Preserve in the Tarboo valley. If successful,the grant funding will protect the forest under county deed restrictions and allow older forest habitats to develop.We strongly support this project and want to convey the importance of the forest and stream habitat as a cultural resource to the Tribes. The JCCF grant application states that cultural resources include "...traditional, religious,ceremonial, and social uses and activities of affected Indian Tribes...". I want to make it clear that the Upper Yarr Creek property is a cultural resource under this definition and the proposed plan for protection and restoration would help grow its importance. Four tribes-Port Gamble S'Klallam Tribe,Jamestown S'Klallam Tribe, Lower Elwha S'Klallam Tribe, and Skokomish Tribe-are signatories to the Point No Point Treaty and retain the right to hunt and gather within their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to rely upon the forests of the region,as they have for thousands of years,as places where they gather traditional food, medicine, and materials for use in all aspects of their cultural life, including social and religious. Salmon and shellfish are central to sustaining the cultural heritage of the Tribes.Yarr Creek is an important coho salmon spawning stream and these habitats are recognized by the Tribe not just as natural resources but as cultural resources vital for sustaining salmon runs, as well protecting water quality for shellfish production in Dabob Bay. In addition,Tribal members harvest wood from cedar, big leaf maple,and alder trees to make large box drums, masks, and other traditional objects that the Tribes have used for thousands of years for religious and social ceremonies. However,with the conversion of vast areas to private industrial tree farms and development projects, it is increasing difficult for the Tribes to access forests suitable for traditional cultural uses. The proposed project will protect important cultural resources for the Tribes: habitat that sustains salmon and shellfish and forest that provides a large variety of indigenous plants and trees of cultural importance. s. Sincerely, Laura Price Cultural Resources Director Port Gamble S'Klallam Tribe 31912 Little Boston RD NE Kingston WA 98346 Office: 360-297-9655 Cell: 360-509-7723 EXAMPLE OF RE-RECORD OF SWD FOR CONSERVATION FUTURES PURPOSES AFTER RECORDING RETURN TO: Northwest Watershed Institute 3407 Eddy Street Port Townsend, WA 98368 DOCUMENT TITLE: Statutory Warranty Deed—Re-Record GRANTOR: Rosie L. von Engel GRANTEE: Northwest Watershed Institute ABBREVIATED LEGAL DESCRIPTION(Complete description on Page 1): S29 T28 RIW Tax 2 ASSESSOR'S TAX PARCEL NUMBER(S): 801 293 003 REFERENCE NUMBERS OF RELATED DOCUMENTS: 658592 The parties are re-recording the Statutory Warranty Deed, recorded on 01/17/2023 in the official records of Jefferson County, Washington, under Auditor's File No. 658592 (a copy of which is attached hereto as Exhibit A), for the sole purpose of including language required by Jefferson County providing funding to Grantee Northwest Watershed Institute's acquisition of the property described in said Statutory Warranty Deed, and without additional consideration from Grantee to Grantor. 1 4899-1951-4625v.6 0046182-000042 STATUTORY WARRANTY DEED (RE-RECORD) THE GRANTOR Rosie L.von Engel,now according to the application for title insurance Rose/Marie Ludmilla von Engel,as her separate estate for an in consideration of TEN DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERATION in hand paid, conveys and warrants to Northwest Watershed Institute, a Washington nonprofit corporation the following described real estate, situated in the County of Jefferson, State of Washington(the"Property"): Tax Parcel Number(s): 801 293 003 That portion of the North 100 feet of the Southeast'A of the Southwest'A of Section 29, Township 28 North, Range 1 West, W.M. and that portion of the Northeast'A of the Southwest 'A of said Section 29 lying Easterly of the Quilcene-Center County Road right of way as conveyed by Deed recorded March 13, 1956 under Auditor's File No. 149069 and Southerly of the Old Tarboo Lake Road as conveyed by Deed recorded March 1, 1948 under Auditor's File No. 112974, in Jefferson County,Washington; Together with the West 158 feet of the North 100 feet of the Southwest'A of the Southeast 'A in said Section 29. Situate in the County of Jefferson, State of Washington. SUBJECT TO: Covenants, Conditions, Restrictions, Easements, Plats and Surveys, if any, affecting title,which may appear in the public record Grantee's costs of acquiring the Property were provided in part by grant funding from the Jefferson County Conservation Futures property tax authorized by Washington law. Grantee hereby agrees to be bound by Jefferson County Code (JCC) 3.08.030(9), the uses authorized under RCW 84.34.230, including the obligation to ensure the long-term conservation of the Property in accordance with the terms and conditions of this Notice of Grant Restrictions and Restrictive Covenants for Conservation Purposes, and to obtain the consent of Jefferson County prior to any conveyance of any interest acquired hereby. Consistent with JCC 3.08.030(9), the Property shall not be converted to a different use unless and only if other equivalent lands or interest in lands within Jefferson County are received by Grantee in exchange. (Signature page(s) to follow) 2 4899-1951-4625v.6 0046182-000042 IN WITNESS WHEREOF, Grantor has caused this instrument to be executed and delivered as of the day of , 2025. GRANTOR: Rosie L. von Engel State of Washington ) ) ss. County of ) On this day of , 2025, Rosie L. von Engel, known to me or proved by satisfactory evidence to be the individual described in this instrument, acknowledged before me that she signed this instrument as her free and voluntary act and deed for the uses and purposes stated therein. Notary Public for State of Washington Residing at: _ My commission expires: 3 4899-1951-4625v.6 0046182-000042 IN WITNESS WHEREOF, Grantee has caused this instrument to be executed and delivered as of the day of , 2025. GRANTEE: NORTHWEST WATERSHED INSTITUTE By: Its: Date: State of Washington ) ) ss. County of ) On this day of , 2025, Peter Bahls, known to me or proved by satisfactory evidence to be the individual described in this instrument, acting in his capacity as Executive Director of Northwest Watershed Institute, acknowledged before me that he signed this instrument as the free and voluntary act and deed of such corporation for the uses and purposes stated therein. Notary Public for State of Washington Residing at: My commission expires: _ 4 4899-1951-4625v.6 0046182-000042 EXHIBIT A Original Statutory Warranty Deed {attached} 5 4899-1951-4625v.6 0046182-000042 �_sON c0 Jefferson County Conservation Futures Fund (JCCFF) 2Special Meeting: Hybrid between JCPH and Zoom Connection April 01, 2025 from 2:00 to 4:30 PM 'sit l No'\° DRAFT Summary Members Present: Tom Backman, District 3; Carol Bernthal, District 1; Laurie de Koch, District 3; Tom Ehrlichman, District 2; Rob Harbour, Interest—Working Lands; Richard Jahnke, Interest —Coastal Areas; Cheryl Lowe, Interest— Habitat Values; E. Ryan McMackin, Interest—Wetlands; Joanne Pontrello, Chair, District 2; Ron Rempel, Vice Chair, Interest—Wildlife Conservation Biology; Robert Simmons, Interest—Watersheds; Dave Wilkinson, District 1 Members Absent: None County Staff Present: Tami Pokorny, Natural Resources Program Coordinator; Tressa Linguist, Clerk, Environmental Public Health Others Present: Peter Bahls of Northwest Watershed Institute I. Call to Order, Roll Call, Determination of Quorum Chair Joanne Pontrello called the meeting to order at 2:05 PM. Roll call was performed. All members were present, quorum was met. Tressa informed the group that measures were taken to increase Zoom security since the last meeting, and that a transcript was now being generated along with the Zoom recording. II. Public Comments None. III. Summary of previous meeting Tom B moved to approve the 04/01/2025 meeting summary. Bob seconded. The meeting summary was approved by consensus. IV. Old Business Approval of amended 02/19/2025 meeting summary: Tom E was satisfied with his requested changes to the summary. Rick moved to approve, Tom E seconded. The meeting summary was approved by consensus. V. Sub-Committee Reports Materials: The Sub-Committee has not met since our last meeting and had no updates. Storymap: Sub-Committee (Rob, Cheryl, Tressa) will meet 04/23/2025 at JCPH at noon to begin site redesign. Now is a great time to join. Note a correction to what was stated in the meeting: There are two spots available on the Storymap Sub-Committee, not one. Each Sub-Committee may have up to four members. 1 4 VI. New Business Conflict of interest review Tressa displayed again the three questions each CFFCOC member should ask of themselves regarding conflicts of interest and the projects/lands up for consideration (crafted in 2002 by county Chief Civil Deputy Prosecuting Attorney, David Alvarez). Time was allowed for reflection and voicing of recusal. No conflicts of interest were reported. • Do you, as a member of the CFFCOC, stand to gain or lose any financial benefit as a result of the outcome of this hearing? • Are you, as a CFFCOC member, unable to hear and consider this application in a fair and objective manner, i.e., without bias and without a predisposition to any particular result regarding this application? • Have you, as a CFFCOC member, engaged in any communication outside this hearing with either a proponent or opponent of this particular application? 2025 Funding The amount of funding available for this CFF cycle is estimated to be —$321,000. This includes $252,000 from 2024 revenues and —$69,000 in funds returned from the cancelled North Barry/Snow Creek project. These numbers need to be finalized with the Finance department, but with the total request this cycle being $230,500, it is safe to assume that there are sufficient funds available to grant each project in full, should the Committee vote to do so. 2025 funding requests Deerfoot Forest $110,000 Upper Yarr Creek $26,000 Toandos Forest $94,500 Robert's Rules of Order A simplified procedure for conducting meetings using Robert's Rules of Order was displayed as a refresher for the group. Any motions made should be stated clearly, following the procedure, and each member should be given an opportunity to speak before a member may speak again. Respect and decorum are expected. 2025 Project Application Scoring Review and Ranking Tressa displayed a workbook showing individual and cumulative scores for the three 2025 project applications. The 70% cutoff for automatic eligibility (outlined in the Manual, page 4) is 177 points (0.7*253 total points allowed). Average scores were displayed. Toandos Forest exceeded the cutoff, Deerfoot Forest and Upper Yarr Creek fell below the cutoff. %CVs for each project showed the Committee was more divided on the Deerfoot project, less so on Upper Yarr and Toandos Forest. Project Name Score %CV Deerfoot Forest 163 64% Upper Yarr Creek 167 66% 214 Toandos Forest 191 70% It was noted that projects may still be recommended for funding despite falling below the 70% cutoff, if compelling reasons are brought forward during the discussion. This has occurred many times in the past. Questions on the score sheet are up for personal interpretation. Some members score projects based on inherent values, other members score projects relative to each other. Often there are broader benefits and/or conservation values that are not captured in the scoring process. Rob Harbour removed himself from the discussion and sat-in as a member of the public, having missed the project presentation meeting and thus being ineligible to vote this cycle. Members were given an opportunity to revise their submitted individual scores if new perspectives had been gained. Ultimately, it was decided that a more appropriate approach would be to leave the scores as-is and make recommendations based on the arguments presented during today's discussion. Are these lands key open spaces that are worthy of public investment? Do they meet the criteria outlined in JCC for preservation of unique and valuable resources? Discussion began with scores for Deerfoot Forest. Some committee members expressed that their final scores did not reflect their overall opinion on the project's value. The property is a significant area (37 acres) of mature forest surrounded by residential property and commercial forests, much of which have been recently logged. It will take the surrounding landscape many years to develop into the mature and diverse condition Deerfoot is in. An ecological "island." It has hydrologic value to two watersheds. If not conserved, the two parcels may be sold individually in the future, perhaps for development or forestry. The current owners have demonstrated a long-term commitment to stewarding diversity. They are open to having opportunities for community education. Ryan moved to deem Deerfoot Forest worthy of funding, and Tom E seconded. The motion was passed by consensus. There was no further discussion on the project. Carol moved to fully fund Deerfoot Forest at $110,000. Tom B seconded.The motion to fully fund Deerfoot Forest was passed by consensus. Discussion moved to Upper Yarr Creek. This project had a lower level of deviation, meaning the committee were in greater agreement about the final score. Protecting this parcel, which has Yarr Creek flowing through it at the base of a steep hill, will protect the stream from erosion or human impacts to the hillside. It is a small parcel, but it is very vulnerable. The fact that NWI already owns the parcel was discussed —if it is owned by a conservation entity, is it actually threatened? NWI is asking to be reimbursed/rewarded for taking on the risk. The committee should consider this potential scenario in their revision of the program materials. The real estate market is dynamic and fast-paced, and CFF is not an agile program. The parcel is part of a well-managed, larger conservation plan. Ron moved that Upper Yarr Creek be deemed worthy of funding. Ryan seconded.The committee voted 11 in favor, 1 against.The motion passed. There was no further discussion. Ryan moved to fully fund Upper Yarr Creek at $26,000. Laurie seconded.The committee voted 11 in favor, 1 against. The motion to fully fund Upper Yarr Creek passed. 3 4 Toandos Forest was briefly discussed. This project met the 70% cumulative score requirement to be "automatically worthy" of funding. It also showed the least amount of variation among the group. The property is valuable and unique as it is in an area underserved by CFF (Toandos). Bob moved to fully fund the project at $94,500. Ryan seconded.The motion to fully fund Toandos Forest passed by consensus. Public Comment Peter Bahis of NWI gave thanks to the program and to the committee for their efforts this cycle, and recognized that the grant process is a lot of work for the group. Ron asked if it could be possible to reserve a portion of the dollars for a future larger project, such as something on the West End. Staff should investigate, and perhaps a sub-committee should be formed to deliberate. Formation of"Resources" Sub-Committee This committee will generate a set of resources for the CFFCOC that are relevant to conservation in Jefferson County—habitat, cultural resources, agriculture, large scale processes, climate change, etc. What do CFFCOC members need to know to determine if a property is biologically important? What are the specific criteria in RCW and JCC that should be met? What are the biggest conservation issues faced by the county? Perhaps there could be guest lectures. Ron, Carol, and Tom B will make up the sub-committee. Tom E asked that the Materials Sub-Committee consider removing or restructuring application question 14, O&M. The question is confusing and was not answered by any applicants this cycle. The Materials Sub-Committee still plans to overhaul the application this fall. What is the most efficient grant award process others have engaged in? It would be helpful to have more training for CFF, perhaps running through a dummy proposal. Can be hard to evaluate as a new member, this will help with consistency. VII. Next meeting date There are no additional meetings scheduled at this time. Joanne will present the committee's recommendations to the BoCC soon,Tressa to schedule and inform the group. There will also be a public hearing after that where additional comments may be made. It was agreed that September would be a good time to meet again to discuss sub-committee findings. VIII. Announcements None. IX. Public Comment Thanks were given to Tressa for her work and growth over in her position over the last year. X. Adjournment The meeting was adjourned at 3:59 PM. Meeting summary prepared by Tressa Linguist. 4 4 �� .sON coy JEFFERSON COUNTY DEPARTMENT OF COMMUNITY DEVELOPMENT 621 Sheridan Street, Port Townsend,WA 98368 I Web:www.co.jefferson.wa.us/communitydevelopment '*�s�f�N�>,oc Tel:360.379.4450( Fax:360.379.4451 I Email: dcdna co.iefferson.wa.us SquareONE Resource Center I Building Permits & Inspections I Development Review I Long Range Planning TO: Tami Pokorny, Natural Resources Program Coordinator, Jefferson County Water Quality and Environmental Health FROM: Joel Peterson, Associate Planner DATE: May 23, 2025 RE: 2025 Jefferson County Conservation Futures Program Property Acquisition and/or Operations and Maintenance Project Applications Summary of DCD Findings for 2025 Conservation Futures Program: Project Name Project Type 1. Deerfoot Forest—Two Parcels Easements 2. Toandos Forest Acquisition & Restoration 3. Upper Yarr Creek Protection Acquisition The Department of Community Development (DCD) has reviewed the proposed 2025 Jefferson County Conservation Futures Program Property Acquisition and/or Operations and Maintenance Projects and provides the following findings. Summary: When a local government chooses to use Conservation Futures Fund money to purchase an interest in land, it must consider and analyze whether taking land out of the 'stock' of land that can be developed leaves enough land subject to development to accommodate allocated housing and employment growth (RCW 84.34.240). From our analysis, we find that the proposals, totaling ca. 44 acres, do not negatively impact housing supply or employment growth. Methods: Housing Analysis: DCD reviews the estimated number of potential dwelling units that may be forgone by the Conservation Futures actions and the effect this may have on the County's ability to accommodate our projected 20-year population growth within the 2018-2038 planning period contemplated in our current comprehensive plan, and also using recently available population data from the Office of Financial Management considered in the draft 2025-2045 Comprehensive Plan Periodic Review. Any determination made in this exercise is only an estimate based on current zoning and a map review of possible site conditions, including a site development and Critical Areas review. Employment Growth Analysis: Potential impacts resulting from the Conservation Futures program actions on Jefferson County's ability to provide for anticipated employment growth through the next 20-year planning horizon were reviewed. Observations were made of current employment conditions on the parcels and in the vicinity of the project parcels, prevalent employment sectors in the area, and consideration of any other potential effects resulting from conservation action that may limit or enhance the County's ability to provide for economic development or jobs. Findings: 1. Housing. The proposed easements and acquisitions of the 2025 Conservation Futures program would be for conservation purposes. All 2025 projects have Rural Residential zoning. Extinguishing development rights could preclude the future opportunity for approximately four (4) total new theoretical residential units—including single-family residential dwelling units (SFRs) and accessory dwelling units (ADUs). The theoretical yield is primarily based on acreage, vis-a-vis the ability to develop the parcels or further subdivide. The subject parcels were not found to have Critical Areas to the extent that residential development would be restricted. Jefferson County has documented a surplus of vacant and underdeveloped parcels, beyond that which is necessary to accommodate the land needs of the County's projected population during the 20-year planning period (2018-2038 Comprehensive Plan Land Use Element). Also, projected growth rates for Jefferson County to 2045 remain at about the current rate of 1%. As found in past evaluations, the proposed 2025 conservation actions do not reduce the County's capacity to accommodate future planned growth. 2. Employment Growth. No commercial areas are included in the protected properties. Employment or business development that could be forgone by loss of residential dwelling units or employment use of the land is not directly apparent. Potential employment opportunity may include home business or cottage industry opportunities. There is no evidence to suggest that a reduction or shortage of residential parcels that could support home business or cottage industry would be caused by these Conservation Futures projects. Employment in the project areas would likely consist of home businesses, cottage industries or within agriculture and natural resources sectors. Jefferson County has identified natural resource conservation as playing a positive role for economic development, contributing to a draw—as opposed to a loss—of economic development interests and potential employment growth to the area due to the quality of life and healthy environment. Additional Findings from the Jefferson County Comprehensive Plan: 3. The action is consistent with the goals and policies of the Jefferson County Comprehensive Plan for the preservation and enhancement of open space. The Jefferson County Comprehensive Plan identifies goals and policies for the preservation and enhancement of open space as follows: 2 a. Policy LU-P-15.2 Protect open space consistent with the goals and policies of this plan and in cooperation with County Conservation Futures and other land conservation programs. b. Open Space Goal OS-G-1 guides Jefferson County to "Preserve and improve the quality, value and extent of open space lands." Open Space Policy OS-P-1.4 "Identify and conserve critical wildlife habitat, including nesting sites, foraging areas, and migration corridors within or adjacent to natural areas, open spaces, and developed urban areas. Preserve especially sensitive habitat sites that support threatened species and wildlife habitat in developed areas." c. Natural Resources Goal NR-G-1 guides Jefferson County to "Encourage the conservation and long-term sustainable use of resource lands so their continued future use will not be precluded by other uses; and encourage the long-term sustainability of natural resource-based economic activities through Jefferson County. d. Economic Development Goal ED-G-6 guides Jefferson County to "Encourage economic development that sustains natural resources and open spaces, protects environmental quality, encourages non-motorized recreation and transportation, and enhances Jefferson County's overall quality of life." 4. None of the proposals include property in an Urban Growth Area or Rural Commercial area. Scope of Review: This review is conducted solely to ascertain the current Conservation Futures project's potential effect on housing supply and Employment growth. Any statements about the potential for future development or land divisions is predicated upon many factors for site suitability. All applicants are encouraged to take advantage of Community Development's customer assistance programs so that technical provisions of Jefferson County Code can be explained and applied to particular site-specific situations. Attachment 1: 2025 Conservation Futures Housing and Employment Analysis Spreadsheet 3 Attachment 1: CONSERVATION FUTURES HOUSING AND EMPLOYMENT ANALYSIS 2025 APN Zoning Project Current SFR+ADU Additional Theoretical ADU Est.Net New Site Characteristics Housing Employment/Jobs District Acreage SFR Yield of Project Allowance Theoretical PROJECT NAME Acreage D.U./ADU Deerfoot Forest Easement Both parcels are forested,gently sloping Both subject parcels are bounded by private and from N to 5,540 to 460 feet elevation.Road state timber lands,with clear-cut parcels to the access present with some site development. east.Natural resources employment sector. The northern parcel has a primary residence Cottage Industry and Home Business allowed. and an accessory residence.There are no critical areas that would preclude further residential development.Both parcels are identified by WDFW Priority Habitats and Species data to provide marbled murrelet habitat,though the area is not highlighted in the Marbled Murrelet--USFWS critical area map. Northern parcel 701052002 RR-20 28 2 0 0 0 One house and one ADU.No additional residential capacity. Southern parcel 701052011 RR-S 8.89 0 1 1 2 The parcel is vacant.The road segmentation of APN 701052011 by Dabob Road at Center Road,creates an area of 0.17 acres(7381 s.f.)which is not adequate to support residential development individually. 36.89 2 1 1 2 PROJECT NAME APN Zoning Acreage Current SFRs Additional Theoretical ADU Est.Net New Site Characteristics Housing Employment/Jobs District SFR Yield Allowance Theoretical D.U./ADU Toandos Forest 701153003 RR-5 6.38 0 1 1 2 The parcel is forested,and bounded by state Old residential structure will be removed. Land use/employment is characterized as Acquisition A Restoration DNR Forest Lands,Upper watershed for fish- The theoretical D.U.count is based on a forestry.Cottage Industry and Home Business bearing stream.Parcel slopes W to E,528 to vacant parcel. allowed. 470 feet elevation.Slight landslide hazard mapped over east 2/3 of parcel(downslope). WDFW Priority Habitats and Species coverage identifies the area a Northern spotted owl habitat,but not shown on USFWS map. 6.38 0 1 1 _ 2 Page 1oft PROJECT NAME APN Zoning Acreage Current SFRs Additional Theoretical ADU Est.Net New Site Characteristics Housing Employment/Jobs District SFR Yield Allowance Theoretical D.U./ADU Upper Yarr Creek Protection 801293003 RR-5 1 03 0 0 0 0 This one-acre vacant site lies along Center Parcel limited by size and critical areas for The small parcel is adjacent to,mostly road ROW,and is bounded to the north by residential development. surrounded by,private forest lands.Natural Old Tarboo Road.It is situated in the upper resources employment sector.Cottage Industry watershed of Tarboo Creek.There is a fish- and Home Business allowed. bearing stream(Yarr Creek)which bisects the parcel.After applying road and stream buffer setbacks,there is only ca.0.10 acre (4183 square feet)remaining--inadequate for residential development. 11 1.03 0 0 0 0 Summary Totals: 44.3 2 2 I 2 4 Page 2 of 2 Conservation Futures_ Jefferson County, Washington i ( s #� '-_-/i --- _. \ d). 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I '6 mtmem*arts Cm+iKwnm mvFaz 100, ent.2020 !rrA6n.YYvra Ntf �Wv.na R.an .loll t rSr 1 GWmelfma,.lmmew 3el'1 �wma wsc.- Iwlf 1 n It smart Sara and Pars.inG, \s ( /_ mQta.Rr MY.ve CmNv(YC)bYlM dlt6 ••.� Yr>i.�I Lr ]lJt1 i 111 UnJunU b) t J - jederaon luunh t:l5 615 Sheridan Street del n Port Townsend, WA 98368 O C www.JeffersonCountyPublicHealth.org Public Heal TO: Jefferson County Board of Commissioners FROM: Joanne Pontrello, Chair Conservation Futures Fund Citizen Oversight Committee DATE: SUBJECT: Conservation Futures Fund Citizen Oversight Committee—2025 funding round recommendations As the Chair of the Conservation Futures Fund Citizen Oversight Committee (CFF Committee), I am writing to provide you with our funding recommendations for the 2025 cycle. As authorized in RCW 84.34 and by the direction of the Jefferson County Board of County Commissioners, the CFF Committee receives and reviews applications from the community to fund projects that will conserve lands as open space for compatible economic uses, habitat for fish and wildlife, and enjoyment. This past March,the CFF Committee received three applications for consideration in this cycle,that are presented with this memo. Also presented are the Sponsors' responses to some clarifying questions asked by the Committee. Two projects are sponsored by Northwest Watershed Institute (NWI), and one by Jefferson Land Trust (JLT).These sponsoring agencies meet the requirements of"nonprofit nature conservancy corporations", as defined by RCW 84.34.250. All three projects are located in Jefferson County and outside of the City of Port Townsend. • Deerfoot Forest—JLT requests$98,000 in acquisition funding and $12,000 in 0 & M funding for a total request of$110,000 towards a conservation easement(JLT provides 51% matching funds). • Toandos Forest—NWI requests$76,000 in acquisition funding and $18,500 in 0& M funding for a total request of$94,500 towards a fee simple purchase (NWI provides 50% matching funds). • Upper Yarr Creek—NWI requests a total of$26,000 in acquisition funding toward a fee simple purchase (NWI provides 50%matching funds). This 2025 funding cycle,there are $323,200 in CFF funds available to support these projects.The total amount requested is$230,500. CFF Committee members toured the project sites on March 11th, and Sponsors made presentations about their projects and answered initial questions during our April 15t CFF Committee meeting. Additional questions raised by the Committee were provided to, and answered by, Sponsors Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f)360-379-4487 through staff over email. Each Committee member separately scored the projects on a set of 13 criteria in order to assess the merits of protecting each property for open space and the likelihood of project success.The project ranking, as determined by the scores, was reviewed, discussed, and confirmed at the April 22"d meeting. The CFF Committee ranked the projects as follows: 1. Toandos Forest—199 average points (75%of total available points) 2. Upper Yarr Creek—167 average points (66%of total available points) 3. Deerfoot Forest—163 average points (64%of total available points) Neither Deerfoot Forest nor Upper Yarr Creek scored at or above the 70%cutoff score required by the Program Manual to be automatically considered worthy of funding. In both cases, the committee saw that the conservation values of the projects were in actuality worthy of funding for the following reasons: Deerfoot Forest is an "ecological island"that has been managed well and has developed into a mature forest over the last 50 years. It has hydrologic value for two watersheds, which are protected further downstream. Upper Yarr Creek is a small,yet important property which is adjacent to a much larger preserve, and the conservation values are well-worth the low price of the property. If not preserved, it is likely that this section of the creek will see significant disturbance, which could compromise the work already being done downstream to project salmon habitat. After review of the scoring data, and further discussion and evaluation,the Committee arrived at the following funding recommendations: • The Committee voted unanimously that Toandos Forest is worthy of funding. By a second vote, we unanimously recommended full funding at the requested amount of$94,500. • The Committee voted eleven (11) in favor and one (1) against that Upper Yarr Creek is worthy of funding. By a second vote, the Committee voted eleven (11) in favor of and one (1) against recommending full funding at the requested amount of$26,000. • The Committee voted unanimously that Deerfoot Forest is worthy of funding. By a second vote, we unanimously recommended full funding at the requested amount of$110,000. I would like to express my gratitude to the Sponsors for submitting these projects, and to the other CFF Committee members for their time and dedication in evaluating these proposals. If you have any questions, please do not hesitate to contact me at pontrello@gmail.com, or Tami Pokorny at tpokorny@co.jefferson.wa.us. I look forward to attending the public hearing when you consider these recommendations and will be happy to discuss them at that time as well. Thank you for your consideration of the CFF Committee's recommendations for the 2025 funding cycle. Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f)360-379-4487 Sincerely, Joanne Pontrello Conservation Futures Fund Citizen Oversight Committee, Chair Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f)360-379-4487 615 Sheridan Street � ehson Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org Public Healt JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS REGULAR AGENDA REQUEST TO: Board of County Commissioners FROM: Michael Dawson,Water Quality Manager, Environmental Public Health and Water Quality Tami Pokorny,Natural Resources Program Coordinator DATE: July 07, 2025 SUBJECT: Public Hearing and Possible Decision Regarding Applications for Conservation Futures Funding in 2025 STATEMENT OF ISSUE: The Conservation Futures Fund program(chapter 3.08 JCC)requires a duly noticed public hearing to be held as part of the process for allocating funds to projects that protect public open spaces. On June 23, 2025, BoCC approved a Public Hearing Notice to hold a public hearing July 7, 2025 at 10:30 a.m. on the 2025 Conservation Futures Program project applications. The Notice was published in The Port Townsend and Jefferson County Leader on June 25 and July 2, 2025. BoCC may decide which project(s)to fund and pass resolution(s) for funding, after hearing public comment and considering an analysis by the Department of Community Development on impacts to growth. ANALYSIS STRATEGIC GOALS: The three(3) applications to the Conservation Futures Fund in 2025 are: 1. Deerfoot Forest: Applicant requests $98,000 towards the acquisition of a conservation easement on two parcels totaling 36.9 acres, located within the Donovan and Tarboo Creek watersheds along Center Road in Quilcene. The conservation easement would create protected open space for a second growth forest and wetlands. The applicant also requests $12,000 towards reimbursement of operations and maintenance costs. The proposed match is $114,000 in funds from the Navy's Readiness and Environmental Protection Integration(REPI)program. The project applicant and sponsor is Jefferson Land Trust. Project location: S5 T27N R1W. 2. Upper Yarr Creek Protection: Applicant requests $26,000 towards fee simple acquisition of a 1.03-acre parcel located in the Tarboo Creek watershed in Quilcene. The acquisition would create protected open space to conserve riparian slope and stream habitat. The proposed match is $20,000 in a donation of land value and$6,000 in crew time from Northwest Watershed Institute. The project applicant and sponsor is Northwest Watershed Institute. Project location: S29 T28N R1W. Community Health Environmental Health Developmental Disabilities water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f) 360-379-4487 3. Toandos Forest Acquisition and Restoration: Applicant requests $76,000 towards the fee simple acquisition of a 6.38-acre parcel on the Toandos peninsula within the Dabob Bay Natural Area. The acquisition would create protected open space to conserve water quality and habitat connectivity in the Dabob Bay ecosystem. The applicant also requests $18,500 towards reimbursement of operations and maintenance costs. The proposed match is $65,000 in funds from the Navy's Readiness and Environmental Protection Integration(REPI)program and $29,500 in private donations to Northwest Watershed Institute. The project applicant and sponsor is Northwest Watershed Institute. Project location: S15 T27N R1W. At its April 22, 2025 meeting,the Conservation Futures Fund Citizen Oversight Committee (CFF Committee)voted unanimously to declare all three projects worthy of funding. As a second motion, the CFF Committee voted unanimously to fully fund Toandos Forest Acquisition and Restoration and Deerfoot Forest. The Committee also voted eleven(11) for and one(1) against to fully fund Upper Yarr Creek Protection. This briefing packet contains: • Draft resolutions consistent with the recommendations of the CFF Committee • Three(3) Conservation Futures Fund project applications • Draft summary of the April 22,2025 CFF Committee meeting • Analysis from Joel Peterson,Jefferson County Department of Community Development • Map of conservation futures projects 2003-2024 • Conservation Futures Fund Citizen Oversight Committee recommendations memo, presented to BoCC on May 19, 2025 by Committee Vice Chair Ron Rempel The purpose of the CFF Program is to address the"general and increasing need to provide a system of public open spaces...for the health,welfare, benefit and safety of the residents of Jefferson County," and to maintain"Jefferson County as a desirable place to live, visit and locate businesses."Conservation Futures Fund tax levy collections, authorized under RCW 84.34.230 are an important means of retaining community character and accomplishing open space policies and objectives of the Jefferson County Comprehensive Plan. The goal of the program is to preserve and protect the county's open space resources from development, and from being "negatively and permanently affected." JCC 3.08.030 allows up to 15% of the Conservation Futures Fund levy monies raised in the preceding year to be used for operations and maintenance needs. Fifteen percent of the revenue collected in 2024 ($323,200) is $48,480. The total request for operations and maintenance funding in 2025 is $30,500. RCW 84.34.230 and 84.34.240(3)require that rights or interests in real property acquired with CFF funds shall not"reduce the capacity of land suitable for development necessary to accommodate the allocated housing and employment growth plans"of the County. An analysis on the impact to growth from the Jefferson County Department of Community Development is provided here, which concludes that"the proposals, totaling ca. 44 acres, do not negatively impact housing supply or employment growth." Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f)360-379-4487 Grant agreements for approved projects between project sponsors and the County will be developed by Environmental Public Health and submitted to BoCC for approval. FISCAL IMPACT: The explicit purpose of the Conservation Futures Fund Program is to fund acquisition projects to support a system of public open spaces. There is no impact to the General Fund for this effort. The following previously approved CFF projects are anticipated to close during the remainder of 2025: • Tarboo Wildlife Preserve—West Slope Forest Addition: $150,000 • Lower Chimacum Creek Mainstem Acquisitions (portion of): $52,000 • Humbleberry Farm: $130,000 The following previously approved CFF projects were cancelled: • North Barry Snow Creek: $74,000 • Dosewallips River Lazy C: $7,649 RECOMMENDATION: Review the three (3) CFF project proposals and supporting documentation. Hold a public hearing on July 7, 2025 at 10:30 a.m. Consider written and oral testimony at the public hearing and adopt any of the enclosed funding resolutions, with or without revisions. REVIEWED BY: Josh Peters, County Administrator Date Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f) 360-379-4487 STATE OF WASHINGTON County of Jefferson In the Matter. of Dedicating Conservation Futures Funds to the Deerfoot Forest Project as RESOLUTION NO. Authorized by an in Accordance with Jefferson County Code (JCC) Chapter 3.08 to Provide a System of Open Spaces WHEREAS, Conservation Futures Fund tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection;and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and RCW 84.34.220 to acquire open space land,agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Fund Citizen Oversight Committee has reviewed project applications for 2025 and made its funding recommendations to the Board of County Commissioners in accordance chapter 3.08 JCC;and WHEREAS,under the provisions of the Jefferson County Conservation Futures Fund Program,Jefferson Land Trust, as project sponsor, requests funding towards the acquisition of conservation easements on two (2) parcels of land in S5 T27N R1W with Assessor's Parcel Numbers 701052002 and 701052011 and to reimburse operations and maintenance costs; and WHEREAS, the County retains enough developable land to accommodate the Deerfoot Forest project as well as the housing and employment growth that it is expected to receive,thus satisfying the requirement of RCW 84.34.240(3); and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project; NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY,STATE OF WASHINGTON: Section 1.Whereas Clauses Adopted as Findings of Fact. The Jefferson County Board of Commissioners hereby adopts the above"Whereas"clauses as Findings of Fact. Section 2. Dedication of Acquisition Funds Approved. Jefferson County hereby dedicates up to $98,000 in Conservation Futures funds towards reimbursement of eligible acquisition expenses for the Deerfoot Forest project. Funding is contingent upon presentation of a matching contribution of at least fifty percent(50%). The sponsor anticipates that the matching contribution will be fifty-one percent (51%) at the time of project completion. Section 3. Dedication of Operations and Maintenance Funds Approved. Jefferson County hereby dedicates up to $12,000 in Conservation Futures funds towards reimbursement for eligible operations and maintenance expenses incurred within ten years of the signing of this resolution, contingent on a matching contribution of no less than the amount of Conservation Futures Funds requested for operations and maintenance. Section 4. Nullification. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition,is not received from the sponsor within three years of the signing of this resolution. Section 5. Severability. If any section,subsection,sentence,clause,or phrase of this resolution or its application to any person or circumstance is held invalid, the remainder of this resolution or its application to other persons or circumstances shall be fully valid and shall not be affected. Section 6. Effective Date. This resolution is effective upon adoption. Section 7. SEPA Categorical Exemption. This resolution is categorically exempt from the State Environmental Policy Act under WAC 197-11-800(19). (SIGNATURES FOLLOW ON THE NEXT PAGE) Page 2 of 3 APPROVED AND ADOPTED this day of 2025. JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS SEAL: Heidi Eisenhour,Chair Greg Brotherton,Member Heather Dudley-Nollette,Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway, Date Philip C.Hunsucker, Date Deputy Clerk of the Board Chief Civil Deputy Prosecuting Attorney Page 3 of 3 STATE OF WASHINGTON County of Jefferson In the Matter of Dedicating Conservation Futures Funds to the Toandos Forest Acquisition and RESOLUTION NO. Restoration Project as Authorized by an in Accordance with Jefferson County Code (JCC) Chapter 3.08 to Provide a System of Open Spaces WHEREAS, Conservation Futures Fund tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and RCW 84.34.220 to acquire open space land,agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Fund Citizen Oversight Committee has reviewed project applications for 2025 and made its funding recommendations to the Board of County Commissioners in accordance with chapter 3.08 JCC; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Fund Program, Northwest Watershed Institute,as project sponsor,requests funding towards reimbursement for acquisition of one (1)parcel of land in S15 T27N R1W with Assessor's Parcel Number 701153003; and WHEREAS, the County retains enough developable land to accommodate the Toandos Forest Acquisition and Restoration project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirement of RCW 84.34.240(3); and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project; and NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY,STATE OF WASHINGTON: Section 1.Whereas Clauses Adopted as Findings of Fact. The Jefferson County Board of Commissioners hereby adopts the above"Whereas"clauses as Findings of Fact. Section 2. Dedication of Acquisition Funds Approved. Jefferson County hereby dedicates up to $76,000 in Conservation Futures funds towards reimbursement of eligible acquisition expenses for the Toandos Forest Acquisition and Restoration project. Funding is contingent upon presentation of a matching contribution of at least fifty percent(50%).The sponsor anticipates that the matching contribution will be fifty percent(50%)at the time of project completion. Section 3. Dedication of Operations and Maintenance Funds Approved. Jefferson County hereby dedicates up to $18,500 in Conservation Futures funds towards reimbursement for eligible operations and maintenance expenses incurred within ten years of the signing of this resolution, contingent on a matching contribution of no less than the amount of Conservation Futures Funds requested for operations and maintenance. Section 4. Nullification. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition,is not received from the sponsor within three years of the signing of this resolution. Section 5. Severability. If any section,subsection, sentence,clause,or phrase of this resolution or its application to any person or circumstance is held invalid, the remainder of this resolution or its application to other persons or circumstances shall be fully valid and shall not be affected. Section 6. Effective Date. This resolution is effective upon adoption. Section 7. SEPA Categorical Exemption. This resolution is categorically exempt from the State Environmental Policy Act under WAC 197-11-800(19). (SIGNATURES FOLLOW ON THE NEXT PAGE) Page 2 of 3 APPROVED AND ADOPTED this day of 2025. JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS SEAL: Heidi Eisenhour,Chair Greg Brotherton,Member Heather Dudley-Nollette,Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway, Date Philip C.Hunsucker, Date Deputy Clerk of the Board Chief Civil Deputy Prosecuting Attorney Page 3 of 3 STATE OF WASHINGTON County of Jefferson In the Matter of Dedicating Conservation Futures Funds to the Upper Yarr Creek Protection RESOLUTION NO. Project as Authorized by an in Accordance with Jefferson County Code (JCC) Chapter 3.08 to Provide a System of Open Spaces WHEREAS, Conservation Futures Fund tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and RCW 84.34.220 to acquire open space land,agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Fund Citizen Oversight Committee has reviewed project applications for 2025 and made its funding recommendations to the Board of County Commissioners in accordance with chapter 3.08 JCC; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Fund Program, Northwest Watershed Institute,as project sponsor,requests funding towards reimbursement for acquisition of one (1)parcel of land in S29 T28N R1W with Assessor's Parcel Number 801293003; and WHEREAS, the County retains enough developable land to accommodate the Upper Yarr Creek Protection project as well as the housing and employment growth that it is expected to receive,thus satisfying the requirement of RCW 84.34.240(3); and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project; NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY,STATE OF WASHINGTON: Section 1.Whereas Clauses Adopted as Findings of Fact. The Jefferson County Board of Commissioners hereby adopts the above"Whereas"clauses as Findings of Fact. Section 2. Dedication of Acquisition Funds Approved. Jefferson County hereby dedicates up to $26,000 in Conservation Futures funds towards reimbursement of eligible acquisition expenses for the Upper Yarr Creek Protection project. Funding is contingent upon presentation of a matching contribution of at least fifty percent (50%). The sponsor anticipates that the matching contribution will be fifty percent (50%) at the time of project completion. Section 3. Nullification. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition,is not received from the sponsor within three years of the signing of this resolution. Section 4. Severability. If any section,subsection,sentence,clause,or phrase of this resolution or its application to any person or circumstance is held invalid, the remainder of this resolution or its application to other persons or circumstances shall be fully valid and shall not be affected. Section 5. Effective Date. This resolution is effective upon adoption. Section 6. SEPA Categorical Exemption. This resolution is categorically exempt from the State Environmental Policy Act under WAC 197-11-800(19). (SIGNATURES FOLLOW ON THE NEXT PAGE) Page 2 of 3 APPROVED AND ADOPTED this day of 2025. JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS SEAL: Heidi Eisenhour,Chair Greg Brotherton,Member Heather Dudley-Nollette,Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway, Date Philip C.Hunsucker, Date Deputy Clerk of the Board Chief Civil Deputy Prosecuting Attorney Page 3 of 3 iLSON 2025 Jefferson County Conservation Futures Fund Program 18111 sy Property Acquisition Project and/or Operations and Maintenance Project Application Please complete the following application in its entirety. Be sure to answer"N/A"for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at(360)379-4498 or tpokorny@'co.je fferson.wa.us with questions. Background and Eligibility Information 1. Project Title Deerfoot Forest 2. Conservation Futures Fund Acquisition Request Amount: S98,000 Conservation Futures O&M Request Amount: S12.000 3. Total Conservation Futures Request Amount: S110 ,000 4. Please indicate the type of interest contemplated in the acquisition process. Warranty Deed X Easement Other(Please describe below.) In whose name will the property title be held after acquisition? Penney Jo Ewing Hubbard will continue to hold title,with a conservation easement held by Jefferson Land Trust and potentially a REPI easement held by the US Department of Defense. 5. Applicant Information Name of Applicant or Organization: Jefferson Land Trust Contact: Sarah Spaeth Title: Director of Conservation&Strategic Partnerships Address: 1033 Lawrence St. Port Townsend,WA 98368 Phone:(360)379-9501,ext. 101 Fax: ( ) - ,ext. Email: sspaeth(Esaveland.org 6. Sponsor Information: (if different than applicant) Organization Name: Contact: Title: Address: Phone: ( ) - , ext. Fax: ( ) - , ext. Email: 1 2025 CFF Program Application This application was approved by the sponsor's legally responsible body(e.g., board, council, etc.) on February 20,2024 7. Project Location Street Address or Description of Location: 11500 Center Rd.Quilcene,WA 98376 Driving Directions from Port Townsend: From Chimacum,take Center Road south for 11.5 miles and turn right into the private driveway. Section: 5 Township: 27 N Range: 1W Assessor's Parcel Number(s): 701052002 and 701052011 Please differentiate current and proposed ownership of each APN and indicate if the parcel is to be acquired with CFF funds or used as match. All parcels listed above will remain in Penney Hubbard's ownership and will be preserved with a conservation easement held by Jefferson Land Trust,likely along with a Navy Readiness and Environmental Protection Integration(REPI) restrictive easement. Please list the assessed values for each property or APN, as applicable. 701052002 -$469,479 current market value assessed&taxable value 701052011-$82,905 current market value assessed&taxable value 8. Existing Conditions New Site: Yes X No Number of Parcels: 2 Addition to Existing Site: Yes No X Acres to Be Acquired: 36.9 Total Project Acreage(if different): Current Zoning: RR:20 and RR:5 Existing Structures/Facilities: Two residences,two wells, a pump house,a small barn,woodshed,and a few additional outbuildings. Any current covenants,easements or restrictions on land use: None Current Use: Residential Waterfront(name of body of water): None Shoreline(linear feet): N/A Owner Tidelands/Shorelands: N/A 9. Current Property Owner X is _is not a willing seller. Project Description 2 2025 CFF Program Application 10. In 1,000 words or less,provide a summary description of the project, the match, and why you think preserving this property is important. Name three top objectives for the property(other than those related to funding). Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Fund Program funds including: vegetation, topography, surrounding land use, and relationship to parks, trails, and open space. Describe the use planned for the site, any development plans after acquisition(including passive development), characteristics of the site which demonstrate that it is well-suited to the proposed use, and plans for any structures currently on the site. If applicable, describe how the site project relates to a larger conservation program(please identify), and whether the project has a plan, schedule and funding dedicated to its completion. Please also list any important milestones for the project or critical dates, e.g. grant deadlines. List the dates and explain their importance. Please attach a spreadsheet of the budget. Jefferson Land Trust is seeking Conservation Futures funding for the permanent protection of Deerfoot Forest with a conservation easement.This property is in Quilcene along Center Road and contains two parcels that total 36.9 acres.Jefferson Land Trust seeks to protect this property with a conservation easement to protect the important ecological features of upland forest,forested wetlands,and headwaters of two important creek systems.The easement will prohibit fragmentation of the two parcels,further development,and conventional/clear-cut forest management practices. The Hubbard Forest property appears to be a section of the headwaters of both Donovan Creek and Tarboo Creek.This is inferred from onsite characteristics, knowledge of the water drainage, property location,and elevation hillshade imagery.Jefferson Land Trust and other partners such as the Northwest Watershed Institute,WA Department of Natural Resources,and Jefferson County have been working for over two decades on the protection efforts of both watersheds of Donovan and Tarboo Creeks.This offers an important opportunity for Jefferson Land Trust to continue with land protection efforts in these priority areas. The Deerfoot Forest conservation easement will limit future development, require single ownership of the two parcels,restrict forest management that only permits ecological enhancement activities,all with the goal of protecting the wildlife corridor that this diverse second growth forest contributes to (described further in#7). As large rotating clearcuts have occurred on adjacent neighboring parcels, Penney Hubbard and her husband have ensured that the management of the Deerfoot Forest has allowed natural regeneration of the forest ecosystem to occur.Their management vision includes the maintenance, preservation, and enhancement of the diverse second growth forest as a "forest garden"for native plant species,wildlife,and human recreation and enjoyment. Deerfoot Forest has been naturally regenerating since its last logging operation around 1920.There are various forest zones including mature Douglas fir mixed with cedar,western hemlock,Sitka spruce,alder and maple patches,and forested wetlands.While some areas of the forest could benefit from more conifer tree presence,there is a substantial amount of downed wood and standing snags throughout the property which provide important habitat for various wildlife and sequester water and carbon on site.The property has varied topography ranging from mostly flat forestland on the south side of Center Road to south-facing sloped forestland on the parcel north of Center Road.The topography and soils of Deerfoot Forest hosts seasonal and perennial forested wetlands and while there is no apparent surface water flow,the property appears to have hydrological connections as a section of the headwaters of both Donovan Creek and Tarboo Creek.These characteristics are well-suited to the proposed ecological protection. On the property,in addition to the two 3 2025 CFF Program Application residences located in the larger northern parcel, infrastructure includes two wells,a pump house,a small barn,and other small outbuildings. Current zoning of the parcels appears to allow for one additional development right on the southern parcel that would be extinguished with the conservation easement.The existing infrastructure on site would remain in use by private landowners after protection with the conservation easement,and the infrastructure would be limited to within one"building envelope" in the easement. Deerfoot Forest's surrounding neighbor landowners include private timber companies,residential development,and Department of Natural Resources Forest Board.These surrounding land uses have resulted in the Deerfoot Forest serving as an intact wildlife corridor across the busy Center Road from the DNR Dabob Bay Natural Area,only.25 miles away across Dabob Rd to the south.The landowners and other community members have regularly sited black bears and cougars crossing Center Road between the two Hubbard parcels, presumably because of the habitat interruption and fragmentation occurring on the surrounding properties.The Deerfoot Forest has remained a wildlife and native plant refuge over the years as nearby disturbances have continued to occur. Jefferson Land Trust intends to protect this forested property with a conservation easement before the end of 2026 or early 2027,and CFF funds will provide essential funding toward this goal. In addition to CFF funds, funding from the Navy Readiness and Environmental Protection Integration (REPI) program for the REPI easement will also likely provide a substantial amount of the funding for this project,as well as (or alternately) a bargain sale of the conservation easement from the landowners, providing the required matching funds for the CFF program.The federal grant dollars and landowner match contributed to this project have reduced the amount of funding requested from the CFF program. After the protection of Deerfoot Forest with a conservation easement,the landowners will continue to manage the property to enhance its ecological values, and the property will be protected from inappropriate development or timber harvesting,forever. To date,Jefferson Land Trust protects over 1,360 acres in the Tarboo Creek and Donovan Creek watersheds. These properties include forestland, riparian,and farmland properties,working with several partners, including the Northwest Watershed Institute and Department of Natural Resources. Top objectives: 1. Protect the property with a conservation easement and Navy REPI restrictive easement which will reduce the development rights, protect the forest and wetland habitat,and protect the headwaters of Tarboo Creek and Donovan Creek-2026/early 2027 2. After protection of the property the landowners,Jefferson Land Trust staff,and other natural resources partners will collaborate to plan and implement the best forest management practices to ensure that the property continues on its path toward old-growth forest characteristics and contributes to climate resiliency 3. Landowners, Land Trust,and other partners will continue to assess the use of the property as a wildlife corridor and determine if there are additional enhancements that can contribute to that use. The overarching goal of this project is to protect the ecological values of Deerfoot Forest so that the property will always remain in a maturing forested condition, protecting the water quality of the lower watersheds. 4 2025 CFF Program Application 11. Estimate costs below, including the estimated or appraised value of the propert(ies) or property right(s) to be acquired, even if Conservation Futures Fund funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. Estimated or Appraised Value of Propert(ies) to be Acquired:The estimated value of the conservation easement is$180,000. Total Estimated Acquisition-related Cost(see Conservation Futures Fund Manual for eligible costs): $32,000 Total Operation and Maintenance Cost: $12,000 Total Project Cost: $224,000 Basis for Estimates(include information about how the property value(s) was determined, anticipated acquisition- related costs, general description of operation and maintenance work to be performed,task list with itemized budget, and anticipated schedule for completion of work): Deerfoot Forest estimated costs Timeline Est.Total CFF Request Match Cost Easement acquisition 2026 $180,000 $75,000 $105,000 Land acquisition related costs,i.e. 2026 $24,000 $15,000 $9,000 appraisal,survey, Baseline document, closing costs Project management,admin and legal ongoing $8,000 $8,000 $0 fees O&M ongoing $12,000 $12,000 $0 Total $224,000 $110,000 $114,000 (49%) (51%) The estimate for the value of the easement acquisition is based on the current Jefferson County fair market value assessment of the property,combined with our knowledge of the appraised value of other conservation easements on local properties recently. Similarly,Jefferson Land Trust completes multiple acquisition projects a year which helps us provide experienced estimates for project management and other administrative costs that will be needed for this project. Standalone 0 & M go to question #14: Scored Questions 5 2025 CFF Program Application 1. To what degree does the project leverage contributions for acquisition from groups, agencies or individuals? Sponsors or other organizations are required to contribute to acquisition of the proposed site and/or operation and maintenance activities. 1 a. Please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures Fund program funds. 1 b. Matching Fund Estimate Acquisition O&M Conservation Futures Funds Requested $98,000 $12,000 49.0% Matching Funds/Resources* $114,000 SSI 51% Total Project Acquisition Cost $212,000 $12,000 100% *If a prior acquisition is being proposed as match,please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. 1 c. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when? Navy REPI (or bargain sale) $114,000 _ Yes No Yes No NOTE: Fifty percent(50%) matching funds are required, and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation of property or a property right can be considered as a matching resource. Donation of resources for on-going maintenance or stewardship("in- kind"contributions) are not eligible as a match. 2. To what degree has the project sponsor identified the long-term stewardship issues for the proposed project? 2 a. Identify any factors, threats, or stressors that could negatively affect the conservation values and/or community benefits for which the property would be conserved. The mature forest conditions and hydrological conservation values of the Deerfoot Forest, including the seasonal and perennial wetlands that feed into the Donovan Creek and Tarboo Creek watersheds could be negatively impacted by further development currently allowed on the southern parcel under county code, and by conventional forest management practices without a conservation easement. 2 b. Describe the management strategies that the stewardship plan will include to address the identified factors, threats, or stressors, including any actions planned to make these negative outcomes or impacts less likely. The Land Trust anticipates that the stewardship plan will focus on management strategies designed to retain and enhance the mature forest and wetland characteristics of the property.The landowners have a forest management plan that was recently updated in consultation with an experienced DNR forester.This plan promotes forest health,diversity,and resilience and will be a guiding document in the development of the Stewardship Plan. The Stewardship Plan is created in partnership with landowners who retain the fee-simple rights to the property. These plans,including their management strategies,are developed once the staff have more time (funded by public granting agencies)to conduct site assessments to create a baseline conditions report and 6 2025 CFF Program Application stewardship plan.The Land Trust will engage in ongoing,detailed discussions with landowners and their forest manager to formulate joint strategies for protecting and enhancing the identified conservation values, once the project has secured funding and before closing on the conservation easement. While we will have the required Stewardship Plan outline or draft to County Environmental Health staff in advance of closing on the conservation easement,the national Land Trust Alliance—which regularly updates its Standards and Practices to guide accredited land trusts such as Jefferson Land Trust—requires a management plan to be developed within 12 months of land acquisition.This timeline allows staff to set management goals,address risks to conservation values, and identify appropriate public access opportunities.When necessary,we will update the Stewardship Plan according to the conservation easement requirements. (https://landtrustalliance.org/resources/learn/explore/practice-12b-land-management-and- stewardship 2 c. Describe any existing water rights, and current uses of water. Identify any conservation values currently being protected that are dependent on these sources of water. The Deerfoot Forest property residences utilize two domestic wells. Onsite water supply is not an element of the identified conservation values. 3. To what degree has the project sponsor demonstrated effective long-term stewardship of a similar project? 3 a. Describe the sponsoring agency's previous or on-going stewardship experience. Over the 35 years since it was formed,Jefferson Land Trust has managed many acquisition projects with several project partner organizations, including Jefferson County,The Trust for Public Land, Northwest Watershed Institute, North Olympic Salmon Coalition (NOSC),JCCD, HCSEG,the Navy and others,and we have been responsible for conducting or coordinating restoration activities in partnership with many of those same agencies and organizations. The Land Trust also holds title to over 1,890 acres of preserves and we have helped with the preservation and stewardship of another 12,941 acres in Jefferson County.We currently hold 69 conservation easements on 3,597 acres, including the Tarboo Wildlife Preserve(396 acres),Carl's Forest (156 acres),Arlandia (28 acres),and other facilitated protection projects with the Northwest Watershed Institute. Jefferson Land Trust stewardship and monitoring protocols were developed with the guidance of the national Land Trust Alliance,and adherence to those protocols is one of the requirements for our formal land trust accreditation. 3 b. Has the project sponsor and/or applicant been involved in other projects previously approved for Conservation Futures Fund funding? No, neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures Fund funds. X Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures Fund funds. Please provide details: Jefferson Land Trust has worked with many willing landowners and has sponsored 40 CFF applications over the years since Jefferson County approved collection of the conservation futures property tax and developed the program in 2003.These projects are found in almost all areas of East Jefferson County and range from fee simple acquisition of nature preserves that are held by Jefferson Land Trust,or by other entities such as the City of Port Townsend,Jefferson County or the Jamestown S'Klallam Tribe,to permanent conservation easements held by Jefferson Land Trust on privately owned properties. 7 2025 CFF Program Application 4. To what degree is the project a part of an adopted open space, conservation, or resource preservation program or plan that was open to public review and comment, or identified in a community conservation effort that provided opportunities for public input? The proposed acquisition: is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort, that provided opportunities for public review and comment. Please describe below, including this project's importance to the plan. Please also reference the website of the plan if available or include the plan with this application. X complements an adopted open space or conservation plan that was open to public review, but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. is a stand-alone project, or part of a project that was not open to public review. For context,the Deerfoot Forest property is nearby the Washington DNR's designated Dabob Bay Natural Area.The Dabob Bay Natural Area was created to protect one of Washington's highest functioning coastal spit and tidal wetland systems. Deerfoot Forest and other properties within the Tarboo watershed have the opportunity to provide additional protection to these areas by protecting the water quality of tributaries feeding into Dabob Bay.Tarboo-Dabob is identified in the Willamette Valley—Puget Trough—Georgia Basin Ecoregional Assessment(Floberg et at. 2004) as a priority area for conserving terrestrial biodiversity,and the summary of special occurrences appendix. Jefferson Land Trust's community-vetted 100-Year Conservation Plan articulates the importance of preserving habitat with the community vision-"Habitat is biologically diverse, interconnected, and supports viable population of keystone species."(pg. 13,Jefferson Land Trust Conservation Plan,2010). It also identifies "wildlife corridors" and"natural ecosystems"as priorities for habitat areas to be protected,which Deerfoot Forest can be characterized as. A portion of the Deerfoot Forest property is specifically identified as a Highly Resilient Terrestrial Biodiversity Area through Jefferson Land Trust's Climate Resiliency Spatial Conservation Planning. More information about the Land Resilience Study can be found in the hyperlink and in Question#11. 5. To what degree does the project conserve opportunities which are otherwise lost or threatened? 5 a. The proposed acquisition site X does does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 5 b. If applicable, please carefully describe the nature and immediacy of the threat, and any unique qualities about the site. The landowners of Deerfoot Forest have considered working with Jefferson Land Trust to protect their forestland for over a decade now. Up until last year,the Hubbards wanted to reserve their ability to sell off their second parcel in case they have unexpected medical costs arise. However, now that there is the opportunity to secure Conservation Futures funds for the protection of this property,we can now work with the landowners to consolidate the property,extinguish the remaining development right,and ensure that it cannot be subdivided or clearcut should the landowners need to sell the property in the future,or after their lifetimes. 8 2025 CFF Program Application 6. Are the conservation values of the project commensurate with or greater than the amount of CFF funds requested, and will both the timeframes for meeting project objectives and associated metrics demonstrate achievement of the conservation objectives? 6 a. Summarize the project's conservation values and how the CFF funds requested support these values. The conservation values of the property that will be protected by the conservation easement include mature, diverse forest habitat,forested wetlands,scenic qualities along a main county road,and educational and scientific opportunities.The protection of this mature forest habitat will benefit the biological diversity, carbon sequestration,and groundwater recharge of the forest,as well as extend the wildlife corridor in the Tarboo and Donovan Creek watersheds that many partners have been working to protect for two decades. CFF funds requested will directly support these values by utilizing the conservation future tax levy to preserve the sensitive lands of Deerfoot Forest that would be permanently damaged by increased development or resource extraction. CFF funds may also leverage additional funding from the Navy's Readiness and Environmental Integration Program,and/or a bargain sale of the conservation easements. The timeframes for meeting the project objectives are reasonable and will achieve the conservation objectives. 6 b. Summarize how the project's conservation values are related to the project's specific objectives. The objectives described in the Project Description ensure that Jefferson Land Trust is performing the appropriate steps to ensure permanent protection of the conservation values described in 6a. 7. To what degree does the project preserve habitat for flora and fauna other than habitat for anadromous fish species? 7 a.X provides habitat for State of Washington Priority Habitat specific to the project and/or State or Federal (NOAA and USFWS) Candidate, Endangered, Threatened or Sensitive species (provide list and references). 7 b.X provides habitat for native flora and fauna. Identify the documented habitat(s) and native flora or fauna species that will be protected by the project. 7 c.X contributes to a wildlife corridor or migration route identified by Washington Connectivity Working Group or other peer-reviewed source. If affirmative in any of the above,please describe and list the Priority Habitat(s) and Threatened, Endangered, or Sensitive species below, and cite or provide documentation of species'use.' Note about this year's changes to 7c:the "Washington Connectivity Working Group"has no data on their Linkage Pathways interactive map west of the Cascade Mountains.Additionally, all the links recommended in the footnote below are expired. If citing information from specific resources is desired,please provide different requests. Otherwise,sponsors will continue to cite information from their resources. Note also that the Land Trust is participating in the statewide Washington Habitat Connectivity Action Planning process and is providing feedback and local priority information to advise the update of the Action Plan, expected to be complete in mid-2025. See, for example, http://www.dnr.wa.gov/researchscience/topics/naturalheritage/pages/amp nh.aspx http://www.wdfw.wa.gov/conservation/phs/list/ http://www I.dnr.wa.gov/nhp/refdesk/plants.html http://www I.dnr.wa.gov/nhp/refdesk/pubs/wa_ccological systems.pdf 9 2025 CFF Program Application The Deerfoot Forest property is nearby other conserved land including the conservation easements Tarboo Wildlife Preserve (396 acres),Carl's Forest(156 acres),Arlandia (28 acres),and other facilitated protection projects with the Northwest Watershed Institute,contributing to greater habitat corridors for wildlife species. The mature, mixed species forest and forested wetlands onsite provide habitat for multiple species-wildlife documented onsite include Black bear and deer,cougar,coyote, raccoon, local woodpecker species and bat species that move throughout the landscape.Western toads have been sited on the property for multiple years-they are listed as a State Candidate (WDFW Priority Habitat and Species list) and Federal Species of Concern. The Olympic Cougar Project,a connectivity collaborative funded by the international Panthera nonprofit organization, has documented that within the last several months,Yenewes,a collared female cougar who now has four kittens,spent one week on the northern Deerfoot Forest parcel.When a cougar who is part of this study spends a week in one place,they have either killed and are eating,or they are denning.Additionally, the Olympic Cougar Project has shared data of other collared cats that are also frequenting this area in and around Deerfoot Forest. Directly to the south of Deerfoot Forest is Department of Natural Resources property in their Forest Board category for timber production, but we understand that the presence of marbled murrelets on or near this property means that DNR may be working to incorporate these properties into their Dabob Bay Natural Area Preserve (currently located less than .25 miles from Deerfoot Forest). Deerfoot Forest contributes to the protection of water quality throughout the Dabob Baby and Donovan Creek watersheds by reducing the number of negative impacts that the streams and bays have to respond to such as sedimentation,erosion, pollution,and flooding. Furthermore, Dabob Bay is home to surf smelt, Pacific sand lace, Pacific Herring, Pacific geoduck, hardshell clams,commercial oyster production as well as several WDFW Priority Habitats (estuarine and marine wetland,freshwater emergent wetland). Quilcene Bay,fed by Donovan Creek has similar conservation values and species present. 8. To what degree does the project protect habitat for anadromous fish species? 8. Describe to what degree the project protects habitat for anadromous fish species (for example: marine shorelines, stream or river corridors including meander zones, and riparian buffers). Please provide documentation and maps that demonstrate the location, quality and extent of the existing buffer and adjoining habitat. As described in question#7,this property appears to be some of the headwaters of both Donovan Creek and Tarboo Creek, both of which are anadromous streams for multiple salmonid species, including Hood Canal summer chum, Puget Sound chinook,coho.The protection of habitats upstream in a watershed provides benefit to the water quality and conditions of the salmon-bearing streams further down the watershed. 9. To what degree does the project preserve farmland for agricultural use OR preserve forestland for forest management? 9 a. Describe the extent and nature of current and planned agricultural use or forest management activities of the proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds. The forestland's primary management goal is not for silvicultural and economic production, but instead for actively managing the property through enhancing and preserving the ecological diversity and resiliency of this upland and forested wetland habitat. 9 b. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. 10 2025 CFF Program Application With the proposed terms of the conservation easement, Deerfoot Forest will be able to be managed in a similar function as described in 11b,in perpetuity.The easement terms will restrict clear cutting, timber harvest,and conversion of the forest which will protect the water quality,soil health,watershed function and wildlife habitat as described throughout this application. 9 c. Does this project preserve a mix of quality farmland and forestland? Preservation of farmland is not one of the proposed conservation values for this forested property;the preservation of structurally diverse,second growth forest is the primary goal of this conservation easement. 10. To what degree does this project increase resiliency to and mitigation of climate change, and is the project's scale significant in regards to increasing climate resiliency? 10. Describe how this project will increase resiliency to and mitigation of climate change. Is the project's scale significant in regards to increasing climate resiliency? Jefferson Land Trust and the North Olympic Land Trust have been involved in a Land Resilience Study of the North Olympic Peninsula since 2020.This study included working with a professional GIS consultant to utilize over 90 data sets and draw from 18 public and private sources to develop a set of climate resilience metrics that are helping to structure conservation initiatives in both partner organizations and shape future collaboration.The metrics are analyzed through the four pillars of our work including working farmland, working forestland, habitat and biodiversity,and community opportunity areas. Through this analysis, portions of Deerfoot Forest are identified as a Terrestrial Biodiversity Conservation Opportunity Area through this spatial resiliency study.Terrestrial Biodiversity Conservation Opportunity Areas are defined as the lands on the Olympic Peninsula that are most likely to retain their ecological integrity and features that support migrating biodiversity both present and predicted,where there are corridors between these features that will support future migration and are the habitat lands that have high carbon sequestration values. The long-term protection of this structurally diverse second-growth forest will enhance its ecological integrity,contributing to climate change resilience.Achieving climate change resilience in Jefferson County will require incremental protection efforts,collaborating with landowners of varying property sizes. Most privately-owned parcels in the county, not held by commercial timber companies,are smaller than 100 acres. In this context,the 37-acre size of this project is particularly significant,especially due to its proximity to the Dabob Bay Natural Area Preserve and protection efforts in the lower Donovan Creek watershed. 11. What area does the project serve? 11 a. Describe how the proposed acquisition benefits primarily a_local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. Deerfoot Forest is a piece of property that is part of a much broader county area that has been prioritized for protection by many local and regional land conservation and management partners. Both the Donovan and Tarboo Creek watersheds have been prioritized for preservation and restoration for over two decades, as described in#7. Deerfoot Forest is at the top of these watersheds,which benefits all of the downstream work that has been happening over many years. 11 b. Is the project located in an area that is under-represented by CFF funded Projects?Areas that Conservation Futures has not been able to support to date include, Toandos Peninsula, Dosewallips Valley, Bolton Peninsula, and the West End. No. 11 2025 CFF Program Application 12. To what degree is the applicant committing to providing educational opportunities, interpretive opportunities, and/or serve as a general community resource that does not reduce the conservation value(s) of the project? 12. Describe the educational or interpretive opportunities that the applicant will provide for public access, educational or interpretive displays(signage,kiosks, etc.)on the proposed site, including any plans to provide those improvements and any plans for public accessibility that will not reduce the conservation value(s)of the project.2 Provide the time frames when each of the above will be implemented. While conservation easements cannot require access for the public or interpretive signage,the Hubbards are very passionate about being able to share educational and visitor opportunities on their property.Their future goals for the forest stated in their Forest Management Plan include designing additional walking trails and visitor infrastructure such as benches and gazebo to encourage the opportunity for people to visit an exemplary native forest and wildlife habitat for future generations. 13. To what degree does the project preserve historic or culturally significant resources;? 13. The proposed acquisition includes historic or culturally significant resources'and is registered with the National Register of Historic Places,or an equivalent program. is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. X none of the above. If affirmative in any of the above,please describe below, and cite or provide documentation of the historical cultural resources. Standalone 0 & M Projects 14. Applications for standalone Operation and Maintenance funding to be scored on a scale of 1- 100 based on information provided. Consider the CFF Manual and the topics below,for example: 14. Please describe in detail,the reason 0&M funds are needed,proposed 0&M activities,and how they protect resources cited in the original acquisition project. Attach additional information such as up-to-date stewardship plan,maps, field reports,work plan,budget,timeline,etc.,to support the application,if appropriate. O&M projects must address a compelling,immediate need. Specifically include whether the project has an up- to-date stewardship plan. If there is such a plan,is it being implemented and is the proposed 0&M work specifically included in the plan?Also,describe any unforeseen or urgent threats to the resource conservation values of the site and whether the proposed 0&M activities will mitigate those threats and/or prevent potential future threats. Verification 2 The words"education"and"interpretation"are interpreted broadly by the CFF Committee. 3 Cultural resources means archeological and historic sites and artifacts,and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. 12 2025 CFF Program Application 15. Sponsor Comm itments: 15 a. Sponsors of projects that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved,or three years after the acquisition funds are disbursed to the applicant, whichever is later.The progress report must address any changes in the project focus or purpose,progress in obtaining matching funding,and stewardship and maintenance. Sponsors receiving 0&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project"report card"that will be submitted annually to the Board of County Commissioners. 15 b.If this project is approved for funding,I understand the sponsor is required to submit progress reports for three years and for any year in which 0&M funds are expended. 55 Initials ;1110.o2.S Date 15 c. If,three years after the date funding is approved by the Board of County Commissioners,the project sponsor has not obtained the required matching funds,the Committee may request the Board of County Commissioners to nullify their approval of funds,and may require the project to re-apply. If this project is approved for funding,I understand that we may be required to re-submit the application if the project sponsor does not obtain the necessary matching funding within three years. 5 Initials3l1/f9ate 15 d.The applicant has reviewed all project requirements and all information in the application is accurate to the best of their knowledge. S 5 Initials )ate 15 e.The sponsor commits to providing long-term stewardship to achieve the conservation and protection goals of the project as proposed in this application or as may be modified with recommendation•of the CF Committee and approval of the BoCC. 5S Initials 3(tq f 3ate 13 2025 CFF Program Application Landowner n Ack owled ement Form 1 Project Applicant Information Applicant Name:Jefferson Land Trust Project Number/Name: Contact: ❑ Mr. ® Ms. First Name: Sarah Last Name: Spaeth Title: Director of Conservation Mailing Address: 1033 Lawrence St. Port Townsend, WA 98368 E-Mail Address: sspaeth@saveland.org Property Information Address or Location: 11500 Center Road. Quilcene,WA 98376 County/Parcel Number 701052002 and 701052011 landowner Information Landowner Name: Hubbard Center Road LLC Representative: ❑ Mr. ® Ms. First Name: Penney Last Name: Hubbard Title: Mailing Address: PO Box 602 Quilcene, WA 98376 E-Mail Address: auntpenney@gmail.com 1. Penney Hubbard, Hubbard Center Road LLC, is the legal owner of property described in the grant application being submitted to Jefferson County Conservation Futures by the project applicant. 2. I am aware that the project being proposed in the grant application is on my property. 3. If a grant is successfully awarded, I will be contacted and asked to engage in negotiations. 4. My signature does not represent authorization of project implementation. 5. If I am affiliated with the project applicant, I will recuse myself from decisions made by the project applicant to work on or purchase my property. 6. There/are not (circle one)tenants on the property.Tenants displaced as a result of this project may be eligible for relocation assistance. `.1 bb‘A-- plakei) es1) C—( Landowner/Repres tative Signature Date e tNn Deerfoot Forest - � s^, 0,` II ' REPI Protection A.- IIII a Dabob Bay Natural Area(DNR) " am DNR Forest Board _ .. US Fish&Wildlife Jefferson Land Trust Preserves " ':1r ram, r Streams Jefferson Co.Tax Parcels yr !ti. it if `' '�� hif • e . I - A ' - - , I ,,,.. ..., 4 , .,.. '6".4.e.,.;!p"- itrimipirFlf ,,,,,, ... Iv, i c ill .�aN'A ` �11', n . pill d q/f ` is --,y Deerfoot Forest ° °� 20� °°° ,4 . 1 Feet 2023 Aerial Image (NAIP) -* ,. Conservation Futures Fund 2025 For informational purposes only.All data represented are from varying �l�AND sources and approximate. ' Site Location Map Map created in March 2025 N TRUS 1 fritlf 4 ... Deerfoot Forest ,..-. Jefferson Land Trust Conservation Easements REPI Protection .. EN DNR Forest Board DNR Natural Area . . - US Fish &Wildlife i'l... , ••• 1-1 Li j 1 Jefferson Co.Tax Parcels '"'t z • f ,' . ..' '4‘..‘7.,"....:•-• vititlit , ' 't '.0 4..,:..t.i4 ,-r ' . .:AffAtt 4s,t,.'''''" -'' ' .r• .4,`'' . . . ,14.7fri,"P- ' . A. /..,74 ' * r• ,,' ' '',‘ -.14,„0-;'lif,',$' Ft', $•,'' .;• 4, ' . , q,11441,....,L,,-z,,,V1 4 ...,„ : ,- . , , • ,.... ,r . ,{s , ,... '..'• l,,3-'ik:: ,0 • 4 * .'''•'41t.?,.,'',,.,',1-".,1r..:,.'4..? tV 'v , t . , •.,f:,:„,.. it - 4 — 44 i ' - 4tii - !, :*, ,." lf . mi . 7 tIC , i -::.7,17-,:',.,"'*4..:.-;•t,t'13::4i'I.l,,44:;;^4.,..1.;..'..,,,1:,;:,t,,- : „ i.,..'w' i'' lfeti'.-'4'• I v e•4"W' ;','-'' ''-fr*tiq k` ii ., a,•,„ i rix'i-c,'r'*,,,,,.1-:vf.'1i''r,',-1.6`,it,-,''5 1.0,.,•',•i.•'1‘,.0%„.:':4',.'.-'1.,.-4.':,,.,'':..:4'.:1:/t%4f.4(r).:1'.f y'1oi A.4.1,,,g..,','_',,.,,,.V!,-.;,fr"'•: L .-..VI Ar , ;:.:'i''-''i',:i,1'•:, Ii`._.,":r•1.:.4.**::*.'•';l, 'ti't,'ktlefl.F"1P.;':'$1',,1 '','.'s .;t 4 3 :1 1 ‘ . , 4 4 ' .,..t,,. .,„. ,-.4:.",-''.:;'"'",..„, ..,•, . ,,. vs*.:4'.,.,; .t' 'v*, '4•L- 1.,*.W...' -47' 41-4 ''' ' ' ., .:,. :I , ) bob Bay .t , ,e,v : ,-1' ... .,4t..1:..4s_,.i.tr.,.'..1 i ';',ii= "•.:' ' kt. v„, . ,41„-. *4-.4-- ,.,--4--_,111,.... ..,--.: . ., ,,, , .4 ,•:' 475 950 ,'.. 1 900 Deerfoot Forest 2023 Aerial Image (NAIP) All •.....\ Conservation Futures Fund d N For a t a i nr feopr rme as et i on tneac il pa ur er pf or os me s voanr yi yi h g t___ smoaupr ccer se aatnedd ai np pF reobxri umaar yt e 2.0 2 5 I r i . , r 1 Deerfoot Forest . �� Jefferson Land Trust Conservation Easements — ----` ---- —` __r----�—!_ _u t .... `` k r REPI Protection oi "' _l . -' ,','"- Dabob Bay Natural Area(DNR) - '' an DNR Forest Board ----t 7 '''. •" US Fish&Wildlife c<< �� _ Streams et 04 .4" \11‘ _ —---. _-.-__:._'-r—_ , __ :: \J Roads JI 7 (� Jefferson Co.Tax Parcels } ,it , � pia .'} \V if, i I { $ ti \ /II .J..;okfr r Dabob Bat t r---7---------a -- , 11 I 4 : .4, E .r. 175 , Deerfoot Forest t (----. i 15°° IFeet r) 4(•4 2023 Aerial Image (NAIP) "' Conservation Futures Fund 2025 purposes only All For informational ur oses onl .All data represented are from varying �k}f h ID Project Boundary Hillshade Map sources and approximate. N TRUS`L Map created in March 2025 Deerfoot Forest Application Photos 4;3,, kilvy.,; :lis t'-'1,,,. ,..t,_":,, _ il:i, \ 'i. ' '• .r, Iry ; , .0 - 7. 4 ' / 0 . m ;,01, ! '\• • r f. il; � r- tf 1 lit,! ! " • i _,, ,„,--,, ,,-, , - , -,,- -. 1 Aar , —-"•4!).'" * — , • •A ,"#,W# *.F. tit X a E .�, a r:' p t rk; s3ty rz �` t � i ft 3;:" S ..It'''.''''''-'''fie.';• ut � � f{ ,' T ,, ,! 2 f f i' �+ , f+t to �i ,y - .x i d.; f x••, ' ..) 1 tilt f . ,l :I, #�! f ,Y•Y ► r 'it „15 } �L mix•, `,sikt 'f �m dew ti k x k r"1 x y 3 + ' . � a " �p �" r � u i t r 1 �4 tSti `x"' a r! -° i y r f i 4 ,.r 2 A it, k J1 j , i •- fAto _ $ a : , 44 c„ I. T air a� 4 y e ` < a f Et r - f _ ' , gym► •*s. °y _ xe>> 'n Qi&' �` - t t C' • 'g .sir" ..- a A SZ a y s2 ' ,411,4p Forested sedge wetland. R,, faP -•';1. ''71',.'atir4ki,... 'WA ' 1;•; - 'VI' '11', i t r ',!?i , ,, : i i .-.," ..„. 4 „ „. ... i . ,. , ,, , , ...„.,. . ...,.... 't .1'' 6 t.t. f .,--"t. . 'ell,' v 'I, , 1: .° , ''' ' . i „b_. ..,:,...,,..,6„.. .. .,,„ ,,, , ,,,„ 1/ ''I * '.- A I a • -f' T.• trf :::, - 0 41i • \I 1" i4 .,, ,k 1 ,' 4 *....1' • 1,,,, -• .1 0 4 ► ' ,. 1 e.„ IttQ , T xdi r � v a /: — _ A. .*'SA Kj. + ` 'gyp .= r 3 ;.+} yr Y 'R s ' 7‘4 .tj .. .. +;II4 1 +8 '@ _.fi .4" 1'* ♦ _tidy •S,*S `T --- ` '+d4 - r ,,_.:.*„..‘:.-„.f4r,r.:‘ ,,,,oa- . ...;.. ..t,,,,.14,.; C "iftSb:„:". .4% `srtr Southern parcel facing southwest. Bigleaf maple-dominant forest with mid-size regenerating conifers. A. • 4,4+ + : Ott i .:‘,„400, ...., 11;41. \ . •tt t .4 '' •y y� 1 A. X, Mom. " t s "Nt , rt': .` �' i 7 S a. vp ;.. v '� �` r X /t voL At fir 'r s, h � • Y;, '�. �' 1' `.+s ,' F ? tt t yx } tilti •x '=. art f• r ,� i': i.;: ,� ,yy a + s ., •' x r.b x ( .3 4j' vx :y.- pro, x •: K T L 2 . 6 .w• '`fit ._ ,:4 � T" .._yl t 'ate .. S ..1tt+.0 c4' 1 fir.. .„Ar ^0 Y :. 1:::: 3 f-. ;4•1.1::"-.1-14,:.: ' ::_',..,,,,,,.;1: ,, '.�.. f^., 1. :{,s u '77. ''„••-•=• #4 s .-- ,.. O.-w ,: .- ''',..'‘*''''''.4w...1".-_, :iot.:i3Oler....,' It ' ...1". ilk:r . - . ...„.., ,„.zi , ry Onsite driveway with Douglas fir and bigleaf maple. rz � 441 KT Akt Zj Large maple on site; moss and lichen demonstrate strong moisture presence.Conservation Futures Citizen Advisory Committee site visit. .. � t s / y 4^*'+ 1 ; foe . " ii, }* e4 • s r' ,4 `. r _r 14 > t. .»45ttt 4, • _ice '; A` 1 , r LL,, $w ' _ -.t> Yam" Y _ Pi k-' ' s 4 ct'.1i -4 • 4'.4,t-.4it; t 444, 41. �.. 4 „kit, y 5 j + - . :i %r- '$ y s•s'.' ''-' +�` ^T ' .. F* a .,,6 I''`' �.s` _ • f R �rtii z } ' • 4*4 wrg '" i Y 7 tL" .- fiCrii, t/� _"ac r . .. � If-- r., , 3:F a!'n''i'r J;a^, aT-` :' • ,'. b ''i ..fi t$ ' . � ! t i 'r ^l # 1 t , "y, *w-0 ,.. -2` w Vim '_j s: E x` ��ar , '",Y.,1 ,t �Y A y �, •I. _0• — 1>1,. a - "- • • � . � � • Y� � � $� z.._ _v Wi _ f— • /f Representative conditions of mixed alder,salmonberry,sword fern forest. Northern neighbor boundary line (commercial forestry) can be seen in background. k ._i I i .� r tam �, 1` a 41, s r I 1 , • .,, : : ' ) . k,. , L. a. f /0,` .a `x Jr. 1:fire 1�. • 6. 4 j[� w - A I -.1 r '„• w' , i . # _i•[� L j art 7- 4 `' ,' ' ';gip "° ` " , ` ' — -.ram S at• r , I a 'f ' $ .. 'I /' tit! r • a•da ,#tom.. ` a • . 4 r. ' MI0.'. 5 r 1 ' a, . \k. to y 7 f ?l *,,,4 k'a. % One of many Western toads found onsite by the landowners.Western toads are listed as a State Candidate(WDFW Priority Habitat and Species list) and Federal Species of Concern. Jefferson Land Trust �h�l�l�t�t tL�S�)N Lf11�ID Board of Directors TRUST 2025 Jane Guiltinan Board President Tom Sanford • Dean Emeritus at Bastyr • Executive Director of North University Olympic Land Trust • Naturopathic Physician, retired Tim Lawson Rick York Vice President • California Department of Fish • Founder and Executive Director and Game - Botanist and of Port Townsend School of Biologist, retired Woodworking, retired Barry Mitzman Brian Rogers • Reporter and Peabody Award- Secretary winning Television Producer, • Chancellor of University of retired Alaska Fairbanks, retired • Seattle University Strategic • State of Alaska Legislator, Communications Director, retired retired Julie Lockhart Ed Thompson Treasurer • Attorney and land conservation • Educator and nonprofit professional, American professional, retired Farmland Trust, retired • Executive Director of WinterSpring, retired Ben Wilson • Healthcare and Technology, Sherry Moller retired • Plan Manager for Washington • Board President of Climate FAIR P/ Action Pathways for Schools Jefferson Land Trust Board Roster 2025 Jennifer Harrison • Head of Gaming Experimentation, Microsoft • Managing Director of Earth Economics Jefferson Land Trust Board Roster 2025 JEFFERSON LAND TRUST ORGANIZATIONAL CHART D BOARD OF DIRECTORS D RICHARD TUCKER- Executive Director D SARAH SPAETH- Director of Conservation and Strategic Partnerships BLAISE SULLIVAN-Conservation Project Manager D ERIK KINGFISHER- Director of Stewardship& Resilience CARRIE CLENDANIEL- Preserve Manager DEVON BUCKHAM—Education Coordinator GREG SACHS—Preserve Assistant KELLY STOCKER—Americorps Habitat Enhancement Crew Member MARLOWE MOSER—Stewardship Coordinator KATE GODMAN- Director of Philanthropy SARAH ZABLOCKI-AXLING-Development Manager SYDNEY LAROSE—Development Assistant RIC BREWER- Community Relations& Events Manager D STEPAHNIE WEIGAND—Communications Manager LILLY SCHNEIDER—Communications Coordinator D PAULA McNEES- Finance Manager D CRISTINA VILLALOBOS—Office& Preserve Assistant(Matrixed to Stewardship) D RYEN HELZER—Community Forest Manager INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASUL,Y DISTRICT DIRECTOR 2 CUPANIA CIRCLE' MONTEREY PARK, CA 91755-7406 Employer Identification Number: Date: MAY 03 1994 91-146507S Case Number: 954109002 JEFFERSON LAND TRUST Contact Person: C/O DOUG MASON PRES TYRONE THOMAS PO BOX 1610 Contact Telephone Number: PORT TOWNSEND, WA 9B368-0109 (213) 894-2289 Our Letter Dated: May 08, 1990 Addendum Applies: No • Dear Applicant: This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501 (a) of the internal Revenue Code as an organization described in section 501 (c) (3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509 (a) of the Code because you are an organization of the type described in section 509 (a) (1) and 1.70(h) (l) (A) (vi) . Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a) (1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a) (1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, 4/1r‘.4114Fe Richard R. Orosco District Director Letter 1050 (DO/CG) INCOME Restricted Funds Federal, State & County Grants 250,795 Foundation Grants 150,000 Donor Restricted - Investment - Operations Income Annual Contributions 545,000 Special Events 66,550 Fee for Service 156,110 Investment Income - Other/Release from Restriction 809,201 Foundation Grants/Unrestricted 20,000 Total Income 1 ,997,656 EXPENSE Direct Program 156,629 Acquisition & Conveyance - Land/Easement Holding 55,800 Professional Services 179277.00 General & Administrative 1 ,605,445 Total Expense 1 ,997,151 Net Income 505 JEFFERSON LAND TRUST AND SUBSIDIARIES Consolidated Financial Statements For the Years Ended December 31, 2023 and 2022 TABLE OF CONTENTS Independent Auditor's Report 1 Consolidated Financial Statements: Consolidated Statement of Financial Position 3 Consolidated Statement of Activities and Changes in Net Assets-2023 5 Consolidated Statement of Activities and Changes in Net Assets-2022 6 Consolidated Statement of Functional Expenses-2023 7 Consolidated Statement of Functional Expenses-2022 8 Consolidated Statement of Cash Flows 9 Consolidating Statement of Financial Position 11 Consolidating Statement of Activities and Changes in Net Assets 12 Consolidating Statement of Functional Expenses 13 Notes to the Consolidated Financial Statements 14 iken 0 anders, Inc PS 324 So.Main Street,Unit A,Montesano,WA 98563 CERTIFIED PUBLIC ACCOUNTANTS Telephone(360) 533-3370 Fax(360)532-7123 &CONSULTANTS aikenandsanders©aiken-sanders.com Independent Auditor's Report To the Board of Directors Jefferson Land Trust&Subsidiaries Port Townsend,WA Report on the Audit of the Financial Statements Opinion We have audited the accompanying consolidated financial statements of Jefferson Land Trust and Subsidiaries (collectively, JLT, a nonprofit organization), which comprise the consolidated statement of financial position as of December 31,2023 and 2022,and the related consolidated statements of activities and changes in net assets,functional expenses,and cash flows for the years then ended,and the related notes to the consolidated financial statements. In our opinion,the financial statements referred to above present fairly,in all material respects,the financial position of JLT, as of December 31,2023 and 2022, and changes in net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of JLT and to meet our other ethical responsibilities,in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about JLT's ability to continue as a going concern for one year after the date that the financial statements are available to be issued. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery,intentional omissions,misrepresentations,or the override of internal control.Misstatements are considered material if there is a substantial likelihood that,individually or in the aggregate,they would influence the judgment made by a reasonable user based on the financial statements. 1 MFMRFR AMFRICAN INSTITIITF OF CFRTIFIFD PURl IC ACCOUNTANTS AND WASHINGTON SOCIFTY OF CFRTIFIFD PURl IC ACCOUNTANTS In performing an audit in accordance with GAAS,we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of JLT's internal control.Accordingly,no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluate the overall presentation of the financial statements. • Conclude whether,in our judgment,there are conditions or events,considered in the aggregate,that raise substantial doubt about JLT's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit,significant audit findings,and certain internal control—related matters that we identified during the audit. Other Information Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The supplementary information on pages 11-13 is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and to certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Aiken& Sanders,Inc.,PS a4,4A. Certified Public Accountants &Consultants July 26,2024 Montesano,WA 2 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2023 and December 31, 2022 Assets 2023 2022 Current Assets: Cash and cash equivalents $ 2,427,128 $ 2,173,070 Accounts receivable 170,424 37,604 Current pledges receivable 1,139,589 1,063,546 Prepaid expense 15,839 1,361 Total Current Assets 3,752,980 3,275,581 Land and Conservation Easements: Habitat land 9,231,039 7,534,455 Working land 5,052,673 97,728 Open space land 332,761 332,761 Conservation easements 69 69 Total Land and Conservation Easements 14,616,542 7,965,013 Fixed Assets: Furniture, equipment, and improvements 97,340 97,340 Less: Accumulated depreciation (66,611) (61,086) Fixed assets,net 30,729 36,254 Other Assets: Long term pledges receivable 150,366 471,051 Land hold fee-net - 8,333 Investments 2,276,171 1,463,104 Total Other Assets 2,426,537 1,942,488 Total Assets $ 20,826,788 $ 13,219,336 The accompanying notes are an integral part of these financial statements 3 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2023 and December 31, 2022 Liabilities & Net Assets 2023 2022 Current Liabilities: Accounts payable $ 30,683 $ 26,399 Accrued liabilities and deferred revenue 138,401 112,823 Total Current Liabilities 169,084 139,222 Long-Term Liabilities: Note payable 550,000 - Total Liabilities 719,084 139,222 Net Assets: Without donor restrictions Undesignated 1,099,368 1,039,705 Board designated 14,520,704 7,833,694 15,620,072 8,873,399 With donor restrictions 4,487,632 4,206,715 Total Net Assets 20,107,704 13,080,114 Total Liabilities &Net Assets $ 20,826,788 $ 13,219,336 The accompanying notes are an integral part of these financial statements 4 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Activities and Changes in Net Assets For the Year Ended December 31, 2023 Without Donor With Donor Total Restrictions Restrictions 2023 Support and Revenues: Gifts and contributions $ 1,260,518 $ 2,601,431 $ 3,861,949 Donated land and easements 184,433 - 184,433 Inkind donations 11,042 - 11,042 Grants and contracts 4,906,931 - 4,906,931 Special events income, net of expenses of$37,121 16,782 - 16,782 Net investment return 80,034 101,457 181,491 Net assets released from restriction 2,421,971 (2,421,971) - Total Support and Revenue 8,881,711 280,917 9,162,628 Expenses: Program services 1,525,548 - 1,525,548 Management and general 302,737 - 302,737 Fundraising 306,753 - 306,753 Total Expenses 2,135,038 - 2,135,038 Change in Net Assets 6,746,673 280,917 7,027,590 Net Assets,Beginning of Year 8,873,399 4,206,715 13,080,114 Net Assets, End of Year $ 15,620,072 $ 4,487,632 $ 20,107,704 The accompanying notes are an integral part of these financial statements 5 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Activities and Changes in Net Assets For the Year Ended December 31, 2022 Without Donor With Donor Total Restrictions Restrictions 2022 Support and Revenues: Gifts and contributions $ 576,404 $ 2,522,348 $ 3,098,752 Donated lands and easements 977,256 - 977,256 Inkind donations 2,193 - 2,193 Grants and contracts 805,373 - 805,373 Special events income,net of expenses of$26,761 23,366 - 23,366 Net investment return (76,265) 1,894 (74,371) Net assets released from restriction 859,895 (859,895) - Total Support and Revenue 3,168,222 1,664,347 4,832,569 Expenses: Program services 1,960,104 - 1,960,104 Management and general 438,537 - 438,537 Fundraising 300,403 - 300,403 Total Expenses 2,699,044 - 2,699,044 Change in Net Assets 469,178 1,664,347 2,133,525 Net Assets, Beginning of Year 8,404,221 2,542,368 10,946,589 Net Assets,End of Year $ 8,873,399 $ 4,206,715 $ 13,080,114 The accompanying notes are an integral part of these financial statements 6 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Functional Expenses For the Year Ended December 31, 2023 Management Fund- Total Program and General Raising 2023 Salaries $ 581,490 $ 162,041 $ 194,180 $ 937,711 Payroll taxes 48,293 13,458 16,127 77,878 Employee benefits 70,153 19,549 23,426 113,128 Professional fees 416,346 46,314 14,000 476,660 Land and stewardship expenses 286,823 - - 286,823 Rent 19,435 5,416 6,490 31,341 Public awareness 8,795 4,291 1,679 14,765 Dues and subscriptions 12,594 11,763 16,090 40,447 Insurance 12,556 8,038 4,193 24,787 Postage and printing 11,324 215 10,034 21,573 Other 5,611 10,138 310 16,059 Travel and seminars 10,580 4,618 1,223 16,421 Office supplies 18,579 3,675 5,344 27,598 Depreciation and amortization 2,460 3,055 - 5,515 Utilities 8,997 2,507 3,004 14,508 Web design and maintenance 8,910 - - 8,910 Bad debts - 6,000 - 6,000 Bank fees 2,602 1,659 10,653 14,914 Total Expenses $ 1,525,548 $ 302,737 $ 306,753 $ 2,135,038 The accompanying notes are an integral part of these financial statements 7 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Functional Expenses For the Year Ended December 31, 2022 Management Fund- Total Program and General Raising 2022 Salaries $ 451,664 $ 237,470 $ 191,204 $ 880,338 Payroll taxes 36,334 19,103 15,381 70,818 Employee benefits 55,597 29,231 23,536 108,364 Value of conservation easements written down 890,117 - - 890,117 Professional fees 343,533 46,843 13,141 403,517 Land and stewardship expenses 93,842 - - 93,842 Rent 15,968 8,396 6,760 31,124 Public awareness 11,758 446 3,585 15,789 Dues and subscriptions 7,069 16,347 11,055 34,471 Insurance 9,773 4,831 3,890 18,494 Postage and printing 10,291 1,096 14,802 26,189 Other 4,969 9,118 815 14,902 Interest expense - 3,525 - 3,525 Travel and seminars 8,661 8,703 161 17,525 Office supplies 7,744 20,254 4,145 32,143 Depreciation and amortization 2,924 3,829 - 6,753 Utilities 7,129 3,748 3,018 13,895 Web design and maintenance 1,350 - - 1,350 Bad debts 890 23,918 - 24,808 Bank fees 491 1,679 8,910 11,080 Total Expenses $ 1,960,104 $ 438,537 $ 300,403 $ 2,699,044 The accompanying notes are an integral part of these financial statements. 8 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31, 2023 and December 31, 2022 2023 2022 Cash flows from operating activities: Cash received from grantors, donors and customers $ 8,948,453 $ 3,420,969 Cash paid to suppliers and employees (2,139,733) (1,851,446) Cash paid for interest - (3,525) Cash received from interest 44,382 24,405 Net cash provided(used)by operating activities 6,853,102 1,590,403 Cash flows from investing activities: Cash paid for investments (1,275,403) (518,055) Cash received from investments 593,455 1,894 Proceeds from notes receivable - 41,577 Cash paid for land (6,467,096) (338,686) Net cash provided(used)by investing activities (7,149,044) (813,270) Cash flows from financing activities: Cash paid on line of credit - (83,537) Cash received from loan 550,000 Net cash provided(used)by financing activities 550,000 (83,537) Net increase (decrease)in cash & cash equivalents 254,058 693,596 Cash& cash equivalents at beginning of year 2,173,070 1,479,474 Cash & cash equivalents at end of year $ 2,427,128 $ 2,173,070 The accompanying notes are an integral part of these financial statements 9 Jefferson Land Trust and Subsidiaries A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31,2023 and December 31,2022 2023 2022 Reconciliation of increase(decrease) in net assets to net cash provided(used) by operating activities: Increase(decrease) in net assets: $ 7,027,590 $ 2,133,525 Adjustments: Depreciation and amortization 5,515 6,753 Bad debts 6,000 24,808 Land hold fee amortization(adjustment) 8,333 8,333 Realized and unrealized losses(gains) on investments (137,109) 98,776 Donated land (184,433) (207,256) Changes in assets and liabilities: (Increase)decrease in accounts receivable (132,820) (32,952) (Increase) decrease in pledges receivable 244,642 (480,678) (Increase)decrease in prepaid expense (14,478) (1,361) Increase(decrease) in accounts payable 4,284 12,172 Increase (decrease) in accrued expenses and deferred revenue 25,578 28,283 Net cash provided(used)by operating activities $ 6,853,102 $ 1,590,403 The accompanying notes are an integral part of these financial statements 10 JEFFERSON LAND TRUST AND SUBSIDIARIES Consolidating Statement of Financial Position Year Ended December 31,2023 JLT Jefferson Resources, Chimacum Consolidated Land Trust LLC Ridge CF,LLC Subtotal Eliminations 2023 Assets Current Assets: Cash and cash equivalents $ 2,416,391 $ 10,637 $ 100 $ 2,427,128 $ - $ 2,427,128 Accounts receivable 170,424 - - 170,424 - 170,424 Current pledges receivable 1,139,589 - - 1,139,589 - 1,139,589 Prepaid expense 15,839 - - 15,839 - 15,839 Total Current Assets 3,742,243 10,637 100 3,752,980 - 3,752,980 Land and Conservation Easements: Habitat land 8,409,108 821,931 - 9,231,039 - 9,231,039 Working land 97,728 - 4,954,945 5,052,673 - 5,052,673 Open space land 332,761 - - 332,761 - 332,761 Conservation easements 69 - - 69 - 69 Total Land and Conservation Easement 8,839,666 821,931 4,954,945 14,616,542 - 14,616,542 Fixed Assets: Furniture,equipment,and improveme 87,203 10,137 - 97,340 - 97,340 Less:Accumulated depreciation (65,080) (1,531) - (66,611) - (66,611) Total Fixed Assets 22,123 8,606 - 30,729 - 30,729 Other Assets: Long term pledges receivable 150,366 - - 150,366 - 150,366 Land hold fee-net - - - - - - Investments 7,571,312 - - 7,571,312 (5,295,141) 2,276,171 Total Other Assets 7,721,678 - - 7,721,678 (5,295,141) 2,426,537 Total Assets $ 20,325,710 $ 841,174 $ 4,955,045 $26,121,929 $(5,295,141) $ 20,826,788 Liabilities Current Liabilities Accounts payable $ 30,683 $ - $ - S 30,683 $ • - $ 30,683 Accrued liabilities and deferred reven 138,401 - - 138,401 - 138,401 Total Current Liabilities 169,084 - - 169,084 - 169,084 Long Term Liabilities Note payable - 550,000 - 550,000 - 550,000 Total Liabilities 169,084 550,000 - 719,084 - 719,084 Net Assets With Donor Restrictions 4,487,632 - - 4,487,632 - 4,487,632 Without Donor Restrictions 15,668,994 291,174 4,955,045 20,915,213 (5,295,141) 15,620,072 Total Net Assets 20,156,626 291,174 4,955,045 25,402,845 (5,295,141) 20,107,704 Liabilities&Net Assets $20,325,710 $ 841,174 $ 4,955,045 $26,121,929 $(5,295,141) $20,826,788 The accompanying notes are an integral part of the financial statements. 11 JEFFERSON LAND TRUST AND SUBSIDIARIES Consolidating Statement of Activities Year Ended December 31,2023 JLT Resources, Chimacum Ridge Consolidated Jefferson Land Trust LLC CF,LLC Subtotal Eliminations 2023 Support and Revenues Gifts and contributions $ 3,861,949 $ - $ - $ 3,861,949 $ - $ 3,861,949 Donated land and easements 184,433 - - 184,433 - 184,433 Inkind donations 11,042 - - 11,042 - 11,042 Grants and contracts 4,906,931 - - 4,906,931 - 4,906,931 Special events income,net of expenses of$37,121 16,782 - - 16,782 - 16,782 Net investment return 181,454 37 - 181,491 - 181,491 Net assets released from restriction - - - - - - Total Support and Revenues 9,162,591 37 - 9,162,591 - 9,162,628 Program Expenses Jefferson Land Trust 1,513,398 - - 1,513,398 - 1,513,398 JLT Resources,LLC - 12,150 - 12,150 - 12,150 Chimacum Ridge CF,LLC - - - - - - Total Program Expenses 1,513,398 12,150 - 1,525,548 - 1,525,548 Management and general 302,737 - - 302,737 - 302,737 Fundraising 306,753 - - 306,753 - 306,753 Total Expenses 2,122,888 12,150 - 2,135,038 - 2,135,038 Change in Net Assets 7,039,703 (12,113) - 7,027,553 - 7,027,590 Capital Transfer - 6,551 4,955,045 4,961,596 (4,961,596) - Net assets-Beginning of Year 13,116,923 296,736 - 13,413,659 (333,545) 13,080,114 Net assets-End of the Year $ 20,156,626 $ 291,174 $ 4,955,045 $ 25,402,808 $(5,295,141) $ 20,107,704 The accompanying notes are an integral part of these financial statements. 12 JEFFERSON LAND TRUST AND SUBSIDIARIES Consolidating Statement of Functional Expenses Year Ended December 31,2023 Total Jefferson JLT Resources, Chimacum Ridge Program Management Consolidated Land Trust LLC CF,LLC Services &General Fundraising Eliminations 2023 Salaries $ 581,490 $ - $ - $ 581,490 $ 162,041 $ 194,180 $ - $ 937,711 Payroll taxes 48,293 - - 48,293 13,458 16,127 - 77,878 Employee benefits 70,153 - - 70,153 19,549 23,426 - 113,128 Professional fees 405,343 11,003 - 416,346 46,314 14,000 - 476,660 Land and stewardship expenses 286,242 581 - 286,823 - - - 286,823 Rent 19,435 - - 19,435 5,416 6,490 - 31,341 Public awareness 8,795 - - 8,795 4,291 1,679 - 14,765 Dues and subscriptions 12,594 - - 12,594 11,763 16,090 - 40,447 Insurance 12,556 - - 12,556 8,038 4,193 - 24,787 Postage and printing 11,324 - - 11,324 215 10,034 - 21,573 Other 5,552 59 - 5,611 10,138 310 - 16,059 Travel and seminars 10,580 - - 10,580 4,618 1,223 - 16,421 Office supplies 18,579 - - 18,579 3,675 5,344 - 27,598 Depreciation and amortization 1,953 507 - 2,460 3,055 - - 5,515 Utilities 8,997 - - 8,997 2,507 3,004 - 14,508 Web design and maintenance 8,910 - - 8,910 - - - 8,910 Bad debts - - - - 6,000 - - 6,000 Bank fees 2,602 - - 2,602 1,659 10,653 - 14,914 Total Expenses $ 1,513,398 $ 12,150 $ - $ 1,525,548 $ 302,737 $ 306,753 $ - $ 2,135,038 The accompanying notes are an integral part of these financial.statements. 13 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Orianization— Jefferson Land Trust (The Land Trust) is a Washington not-for-profit corporation formed on April 7, 1989. The Land Trust's purpose is to acquire, preserve and manage open space lands and easements for land conservation purposes benefitting the public. The Land Trust also provides information and materials to the public on land conservation issues. The Land Trust serves Jefferson County on the Olympic Peninsula in Washington State. The Land Trust has been accredited by the national Land Trust Alliance since August 5,2009. On September 5, 2007, JLT Resources, LLC was formed with the Land Trust as its only member. JLT Resources, LLC was formed for the purpose of purchasing and holding land for conservation purposes. On November 13, 2023, Chimacum Ridge Community Forest, LLC was formed with the Land Trust as its only member. Chimacum Ridge Community Forest,LLC was formed for the purpose of purchasing land and operating a community forest. Principles of Consolidation-- These financial statements consolidate the statements of Jefferson Land Trust, JLT Resources, LLC, and Chimacum Ridge Community Forest, LLC (collectively, "JLT"). Inter-organization balances and transactions have been eliminated in consolidation. Basis of accounting— The consolidated financial statements of JLT have been prepared on the accrual basis of accounting. Basis of presentation— JLT follows accounting prescribed by the Financial Accounting Standards Board in its Accounting Standards Codification (ASC) 958 Not-for Profit Entities. Under ASC 958, JLT is required to report information regarding its financial position and activities according to two classes of net assets: with donor restrictions, and without donor restrictions. With Donor Restrictions: Net assets that result from contributions whose use by JLT is restricted by donor imposed stipulations that may expire with the passage of time or can be fulfilled or otherwise removed by actions of JLT. Without Donor Restrictions:Net assets that are not restricted by donor stipulation. Gifts of goods and equipment are reported as without donor restrictions unless explicit donor stipulations specify how the donated assets must be used. Property and Fixed Assets— Improvements, furniture and equipment are capitalized at cost if purchased, or, if donated, at the approximate fair value at the date of donation. When retired or otherwise disposed of, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference, less any amount realized from disposition, is reflected in earnings. Maintenance and repairs are charged to expense as incurred. Costs of significant improvements are capitalized. JLT provides for depreciation using the straight-line method over the estimated useful lives of the assets of five to ten years. 14 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 JLT records acquisitions of land at cost if purchased. Land acquired through donation is recorded at fair value, with fair values generally based on independent professional appraisals. These assets fall into two primary categories: Conservation Lands- Real property with significant ecological value for habitat, open space, or working lands. Stewardship programs of JLT manage these properties to protect the natural biological diversity of the property. JLT manages its working timberland as a Forest Stewardship Council-Certified,managed forest. Conservation Easements-Voluntary legal agreements between a landowner and a land trust or government agency to permanently protect the identified natural features and conservation values of the property. These easements may be sold or transferred to others so long as the assignee agrees to carry out, in perpetuity, the conservation purposes intended by the original grantor. Conservation easements owned by JLT protect habitat, open space and working lands, such as family farms, through its stewardship programs. Easements acquired represent numerous restrictions over the use and development of land not owned by JLT. Since the benefits of such easements accrue to the public upon acquisition, the fair market value of easements acquired is shown in the year of acquisition as an addition to net assets to record the donation of the easement, and unless conveyed to a public agency for consideration, shown as a reduction in net assets to record the value of the public's benefit and to recognize that these easements have no marketable value once severed from the land and held by JLT. Easements held by JLT are carried on the consolidated statement of financial position at $1 each for tracking and accounting purposes. A total of$69 is recorded in the financial records for the nominal value of easements acquired. JLT has preserved a total of 4,517 acres of land with 69 current easements. The original acquisition cost of the easements, expensed when acquired,was in excess of$19,100,000. Portions of two easements with a value of$770,000 were donated to JLT during 2022. Accordingly, $770,000 of contribution revenue and $770,000 of related write down expense have been reported on the consolidated statements of activities for the year ended December 31,2022. Estimates— The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Expense Allocation— The costs of providing various programs and other activities have been summarized on a functional basis in the consolidated statement of functional expense. Program expenses represent expenses incurred to fulfill JLT's exempt purposes. Management and general expenses support that exempt purpose while fundraising expenses are incurred to raise resources to carry out program activities. Expenses are recorded, when appropriate, to the function receiving direct benefit. When expenses benefit more than one function, an allocation is made based on relative benefits provided to each function. Cash and Cash Equivalents— For reporting purposes, JLT considers all unrestricted highly liquid investments with a purchased maturity of three months or less to be cash and cash equivalents. 15 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 Concentrations— JLT maintains its cash in bank deposit accounts with three financial institutions. JLT's cash balances may, at times, exceed federally insured limits. At December 31,2023,three donor's pledges represented approximately 70%of pledges receivable. At December 31,2022,four donor's pledges represented approximately 86%of pledges receivable. Investments— Investments in marketable securities with readily determinable fair values are valued at their fair values in the consolidated statement of financial position. Certificates of deposit are carried at cost plus accrued interest in the consolidated statement of financial position. Unrealized gains and losses are included in the change in net assts. Grants and Contracts— JLT receives grants and contracts from federal, state, and local agencies, as well as from private organizations, to be used for specific programs or land purchases. The excess of grants receivable over reimbursable expenditures to-date is recorded as deferred revenue. Federal Income Taxes— The Internal Revenue Service has determined Jefferson Land Trust and JLT Resources, LLC (a disregarded entity) to be exempt from federal income taxes under Internal Revenue Code Section 501(c)(3).Contributions to JLT are deductible as allowed under IRC Section 170(b)(I)(A)(vi). During the year ended December 31, 2012, the Land Trust elected the provisions of Section 501(h), relating to expenditures to influence legislation. That election remains in force unless revoked. Contributions— Contributions are recognized when received or when a donor makes an unconditional promise to give to JLT. Contributions that are restricted by the donor are reported as increases in net assets without donor restrictions if the restrictions expire in the year in which the contributions are recognized. All other donor restricted contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets with donor restrictions are reclassified to net assets without donor restrictions. Unconditional promises to give (pledges receivable) are recognized as revenues in the period the pledge is received. Long term pledges (collection expected in greater than one year) are discounted to the net present value of future cash flows. Conditional promises to give are recognized only when the conditions on which they depend are substantially met and the promise becomes unconditional. Subsequent Events-- JLT has evaluated subsequent events through July 26, 2024, the date on which the consolidated financial statements were available to be issued. 16 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 B. LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS: JLT,although it expects to receive current support to fund operations for 2024 and later years,has $1,062,007 and $423,001 of financial assets available within one year of the statement of financial position dates on December 31,2023 and 2022,respectively,to meet cash needs for general operating expenditures. JLT also has $614,039 and $578,659, of board designated assets as of December 31, 2023 and 2022, respectively, that can be reallocated for general expenditures if needed. Financial assets available within one year consist of the following: 2023 2022 Financial assets at year end $ 6,163,678 $ 5,208,375 Donor restricted to purpose (4,487,632) (4,206,715) Board designations (614,039) (578,659) Financial assets available to meet cash needs within one year $ 1,062,007 $ 423,001 C. NET ASSETS COMPOSITION: JLT's net assets with donor restrictions consisted of the following at December 31,2023 and 2022: 2023 2022 Purpose Restriction: For stewardship of Bullis Forest Preserve $ 27,483 $ 39,511 Chi-yakh-wh 30,740 35,715 Campaign Readiness Fund/Operations 1,132,364 672,260 Stewardship funding 843,969 836,341 Quimper Wildlife Corridor 264,918 210,353 Other program restrictions 52,111 51,770 2,351,585 1,845,950 Time Restriction: Outstanding pledges 1,289,955 1,540,797 Permanent Restriction Endowment Fund 846,092 819,968 Total Net Assets With Donor Restrictions $ 4,487,632 S 4,206,715 17 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 Net assets without donor restrictions consisted of the following at December 31,2023 and 2022: 2023 2022 Designated: Quimper Wildlife Corridor $ 2,115,834 $ 1,576,803 Chimacum Creek 388,347 388,347 Duckabush Riparian Forest 492,800 492,800 Duckabush Hacheney 90,000 90,000 Donovan Creek 270,000 270,000 Duckabush Wetlands&Oxbow 530,000 530,000 Bulis Forest Preserve 125,240 125,240 Moore 34,155 34,155 Beaver Valley 662,537 105,986 Brinnon-Wright 130,000 130,000 Upper Snow Creek Forest 340,000 340,000 Snow Creek Uncas Preserve 260,000 260,000 Chimacum Commons 90,850 90,850 Snow Creek Estuary 86,000 86,000 Snow Creek-Hopkins 95,000 95,000 Silver Reach 125,000 125,000 Gateway 85,000 85,000 Kilham Corner 81,202 81,202 Fite&Fissler 182,226 182,226 Valley View 1,710,000 1,710,000 Discovery Bay 311,358 311,358 Longmire 145,000 145,000 Ruck 601,000 - Chimacum Ridge 4,955,046 - Stewardship Fund 401,432 366,053 CP Operations Reserve 27,476 27,476 Karen Mckee Board Fund 13,328 13,328 Operations Reserve 171,804 171,801 Conservation easements 69 69 Total Designated 14,520,704 7,833,694 Undesignated 1,099,368 1,039,705 Total Net Assets Without Donor Restrictions: $ 15,620,072 $ 8,873,399 Net assets of$2,421,209 and $846,509, respectively, were released from donor restrictions by incurring expenses satisfying the purpose restriction specified by the donor, and net assets of$762 and $13,386, respectively, were released due to the expiration of time restrictions for the years ended December 31,2023 and 2022. 18 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 D. LINE OF CREDIT: JLT entered into a line of credit arrangement with 1st Security Bank during 2021. The line requires monthly payments of interest at 4.25% on outstanding balances. The line of credit principal balance was $0 and $0 at December 31,2023 and 2022,respectively. E. ENDOWMENTS: The JLT endowment consists of one fund established to support general operations. As required by U.S. GAAP, net asset associated with endowment funds are classified and reported based on the existence or absence of donor- imposed restrictions. Nature of Endowments and Interpretation of Relevant Laws- JLT's Board of Directors has reviewed the Washington State Prudent Management of Institutional Funds Act(PMIFA) and, having considered its rights and obligations thereunder, has determined that it is desirable to preserve, on a long-term basis, the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this determination, JLT classifies as nets assets with donor restrictions (a) the original value of gifts donated to the permanent endowment, and (b) the original value of subsequent gifts to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in net assets with permanent donor restrictions is classified as net assets with donor restrictions until those amounts are appropriated for expenditure by JLT in a manner consistent with the standard of prudence prescribed by PMIFA. However, JLT has informed donors of its spending policy which states that no distributions will be made during the first five years of the fund's existence or until it reaches a threshold balance of$400,000. Since these milestones have not yet been reached,JLT adds all amounts earned to the permanently restricted balance. In accordance with PMIFA, JLT considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds, (1) the duration and preservation of the various funds, (2) the purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other resources of JLT, and(7)JLT's investment policies. Endowment net assets, all permanently restricted, totaled $846,092 and $819,968, respectively, at December 31, 2023 and 2022. 19 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 Changes in endowment net assets for the year ended December 31,2023 are as follows: Temporary Permanent Donor Restrictions Donor Restrictions Total Endowment Net Assets 1/1/2023 $ - $ 819,968 $ 819,968 Contributions - 5,500 5,500 Investment Income - 11,019 11,019 Net Appreciation(Depreciation) - 9,605 9,605 Endowment Net Assets 12/31/23 $ - $ 846,092 $ 846,092 Changes in endowment net assets for the year ended December 31,2022 are as follows: Temporary Permanent Donor Restrictions Donor Restrictions Total Endowment Net Assets 1/1/2022 $ - $ 68,074 $ 68,074 Contributions - 750,000 750,000 Investment Income - 1,894 1,894 Net Appreciation(Depreciation) - - - Endowment Net Assets 12/31/22 $ - $ 819,968 $ 819,968 Funds with Deficiencies- From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or PMIFA requires JLT to retain as a fund of perpetual duration. In accordance with U.S. GAAP, deficiencies of this nature are reported in net assets with donor restrictions. There were no such deficiencies as of December 31,2023 or 2022. Return Objectives and Risk Parameters- JLT has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that JLT must hold in perpetuity or for donor-specified periods as well as board-designated funds. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner that is intended to produce results that exceed the price and yield results of a custom Policy Index made up of various indices. The composition of the custom Policy Index is based upon the strategic asset allocation of the investment portfolio and assumes a moderate level of investment risk. The investment objectives of the Operations Endowment Fund include maintenance of principal, timely liquidity, and preservation of purchasing power over time. Strategies Employed for Achieving Objectives- To satisfy its long-term rate-of-return objective, JLT notes that for funds earmarked for capital appreciation, appropriate investments include intermediate term bond funds/ETF's, equity mutual funds,equity ETF's, and unconstrained bond funds. 20 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 Spending Policy and How the Investment Objectives Relate to the Spending Policy- JLT's spending policy intends that no distributions shall be made from the Operations Endowment Fund for the first five years of its existence or until it reaches a threshold balance of$400,000, whichever shall first occur. After a five-year period which ended in December of 2014, or after achieving the $400,000 threshold, distributions shall be made on an annual basis as determined by the Board. Regular disbursements should be limited to a maximum of 5% of the value of the portfolio at the beginning of each fiscal year, or one-half of the income generated by the fund for the most recent fiscal year, whichever is less. At no time will the distribution of the spendable amount result in the invasion of the original amounts donated. F. ACCOUNTS RECEIVABLE: Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. Historically, bad debts have been immaterial. During 2023 and 2022, there were bad debts of $6,000 and $24,808, respectively. As of December 31, 2023, management estimated that all accounts receivable were collectible. JLT had no material amounts past due at December 31,2023. G. PLEDGES RECEIVABLE: JLT received promises to give from a number of donors in 2023 and in years prior to 2023. JLT has provided an allowance for uncollectible amounts based on its assessment of the current status of individual pledges and has discounted pledges to current value using a rate of .15%. Pledges receivable at December 31, 2023 are to be received as follows: Less than one year $ 1,139,589 Two to five years 159,007 Thereafter - 1,298,596 Less discount to present value (2,441) Less allowance for uncollectible (6,200) $ 1,289,955 H. NOTE RECEIVABLE: On February 15, 2008, JLT granted a loan to an individual in relation to one of the pieces of conservation land owned by JLT. A promissory noted was received in exchange. 21 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 The promissory note was for the amount of$93,750 and was to be paid in monthly installments of approximately $600. The note matured on January 15,2028 with an annual interest rate of 5%. The note was paid in full during the year ended December 31,2022. I. FURNITURE,EQUIPMENT,AND IMPROVEMENTS: Furniture,Equipment, and Improvements consist of the following at December 31,2023 and 2022: 2023 2022 Furniture&Equipment,and Software $ 57,351 $ 57,351 Accumulated Depreciation and Amortization -34336 (33,825) 23,015 23,526 Leasehold Improvements 39,989 39,989 Accumulated Depreciation (32,275) (27,261) 7,714 12,728 Fixed Assets-Net $ 30,729 $ 36,254 Accumulated Depreciation and Amortization was $66,611 and $61,086 at December 31, 2023 and 2022, respectively. J. ECONOMIC DEPENDENCY: For 2023 and 2022, grant funding was primarily provided by the State of Washington Recreation and Conservation Office, State of Washington Department of Commerce, and Jefferson County. A reduction in this level of support, if it were to occur,could have a significant impact on JLT's operation K. RETIREMENT PLAN: JLT maintains a Simplified Employee Pension—Individual Retirement Accounts Contribution Benefit Plan ("the Plan"). Eligible employees may join the Plan after one year of service. There were employer contributions of $36,959 and$20,580,respectively, for 2023 or 2022. L. LAND AND CONSERVATION EASEMENTS: Land and conservation easements at December 31 are summarized as follows: 22 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 2023 2022 Quimper Wildlife Corridor S 2,250,333 $ 1,711,301 Chimacum Creek 385,348 385,348 Duckabush Riparian Forest 492,800 492,800 Duckabush-Hacheney 90,000 90,000 Donovan Creek 205,000 205,000 Duckabush Wetlands&Oxbow 530,000 530,000 Bulis Forest Preserve-JLTR 125,240 125,240 Beaver Valley-JLTR 662,537 105,985 Moore-JLTR 34,155 34,155 Upper Snow Creek Forest 340,000 340,000 Snow Creek Uncas Preserve 325,000 325,000 Chimacum Commons 90,850 90,850 Snow Creek Estuary 86,000 86,000 Silver Reach 125,000 125,000 Gateway 85,000 85,000 Kilham Corner 38,930 38,930 Valley View 2,002,000 2,002,000 Discovery Bay 418,583 418,583 Fissler 75,000 75,000 Longmire 145,000 145,000 Snow Creek-Hopkins 95,000 95,000 Thorndyke 458,751 458,751 Chimacum Ridge-CRCF 4,954,945 - Ruck 601,000 - Conservation easements 69 69 Total Unrestricted Net Assets $ 14,616,542 $ 7,965,013 M. INCOME TAX&UNCERTAIN TAX POSITIONS: Jefferson Land Trust, JLT Resources, LLC (a disregarded entity), and Chimacum Ridge Community Forest, LLC (a disregarded entity) are tax exempt non-profit organizations under the Internal Revenue Code Section 501(c)(3) and are not classified as a private foundation. Accordingly, the financial statements do not include any provision for income taxes. JLT files income tax returns in the U.S. federal jurisdiction. The Trust is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2020. Currently, there is no examination or pending examination with the Internal Revenue Service(IRS)or any other state or federal taxing authorities. 23 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 JLT adopted the provisions of FASB ASC 740-10, Accounting for Uncertainty in Income Taxes, on January 1, 2009. As of December 31, 2023, there are no tax positions for which the deductibility is certain but for which there is uncertainty regarding the timing of such deductibility. N. INVESTMENTS AND FAIR VALUE MEASUREMENTS: JLT follows U.S. GAAP which establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 Measurements) and the lowest priority to unobservable inputs (Level 3 Measurements). The three levels of the fair value hierarchy under ASC 958 are described as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Trust has the ability to access. Level 2: Inputs to valuation methodology include: Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets or liabilities in inactive markets. Inputs other than quoted prices that are observable for the asset or liability. Inputs that are principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31,2023. Stocks: Valued at quoted market prices in active markets for identical assets. Mutual Funds: Valued at quoted market prices in active markets, which represent the net asset value (NAV) of shares held by the JLT at year end. Community Foundation: Valued at applicable share of pooled market investments at foundation. Certificates of Deposit:Valued at original investment plus received and accrued interest. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Trust believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. 24 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 The following table sets forth by level, within the fair value hierarchy, JLT's assets at fair value as of December 31,2023: Assets at Fair Value as of December 31,2023 Level 1 Level 2 Level 3 Total Mutual funds $ 954,554 $ - $ - $ 954,554 Community Foundation - 409,605 - 409,605 Total Assets at Fair Value: $ 954,554 $ 409,605 $ - $ 1,364,159 Certificates of deposit,held at cost plus accrued interest 912,012 Total Investments $ 2,276,171 The following table sets forth by level, within the fair value hierarchy, JLT's assets at fair value as of December 31,2022: Assets at Fair Value as of December 31,2022 Level 1 Level 2 Level 3 Total Mutual funds $ 873,725 $ - $ - $ 873,725 Community Foundation - 200,083 - 200,083 Total Assets at Fair Value: $ 873,725 $ 200,083 $ - $ 1,073,808 Certificates of deposit,held at cost plus accrued interest 389,296 Total Investments $ 1,463,104 Investment return for the years ended December 31 consisted of the following: 2023 2022 Interest÷nd income $ 44,382 $ 15,371 Realized/unrealized(loss)gain 137,109 (89,742) Total $ 181,491 $ (74,371) 25 Jefferson Land Trust and Subsidiaries Notes to Consolidated Financial Statements December 31, 2023 and 2022 O. LAND PURCHASE AND HOLD FEE: JLT signed a purchase and sale agreement with a third party during 2015 for the purchase of approximately 850 acres of forest land in Jefferson County. The terms of the agreement, dated March 17, 2015, required JLT to purchase the property for an amount not to exceed the appraised fair market value of the property. The terms of the agreement required the payment of a $100,000 non-refundable hold fee to the third party to allow time for the purchase process to be completed and for JLT to raise the necessary funding to complete the purchase. The hold fee agreement was to expire on March 17, 2019. During 2016, JLT signed an amended agreement that resulted in the refund of$25,000 of the$100,000 hold fee and extended the agreement to nine year from the original five years,now expiring in 2023. JLT adjusted amortization of the hold fee to the new life of the agreement which resulted in an increase to the hold fee asset of $8,331 in 2016. Amortization expense of $8,331 was recognized during 2023 and 2022, completing the hold fee amortization. JLT completed the land purchase during 2023. P. NOTE PAYABLE: JLT Resources, LLC signed a loan agreement and promissory note on January 11, 2023, with the Washington State Housing Finance Commission, for a total of $550,000. The loan proceeds were used for a property acquisition. The loan requires annual interest accrual at 1% simple interest, with payments of principal and interest deferred until maturity. The note matures on the earlier of January 31, 2031, or when a conservation easement is sold on the underlying property. Jefferson Land Trust plans to purchase and hold the conservation easement. 26 Jefferson Land Trust Board Meeting Minutes LAND Tuesday, February 20, 2024 (4:00—6:00 PM) Zoom Only TRUST Zoom : 943 0298 7630 Passcode: 385702 Action Material Time Agenda Items Regduir Who in Packet 4:00 Confirm all Zoom participants can hear and participate in meeting. Action Brian No 4:05 Welcome&Announcements Info Brian No Consent Agenda 4:10 Action Brian Yes • Minutes of the 1/16/24 Board Meeting Consent Agenda Approved ED Update • ED Report (see full report for details) • QWC TLT still awaiting sig nature from the Governor • 3 properties in QWC to close in March Info Yes Richard • Presentation from Olympic Housing Trust next week on plans for 4:15 Chimacum Commons • Capital Campaign total to date 6 million+; presently at 73%of goal • Climate resiliency project with NOLT-improving mapping tools • Audit to occur first part of March • Conservation Breakfast March 14, Presentation on the Cougar Project CPC Projects • Pedersen property The CPC recommends that JLT Board approve the purchase of the 4:45 Pedersen property Action Rick&Sarah Yes • Priority ranking for CFF of proposed acquisitions of Humbleberry Farm and Hubbard properties The CPC recommends that JLT Board approve the following priority for CFF request-1. Humbleberry Farm 2. Hubbard The Board approved the purchase of the Pedersen property The Board approved the CFF priority of!. Humbleberry,2. Hubbard sx.$ON cr ,I0 1 2025 Jefferson County Conservation Futures Fund Program 9SHi N ,°� Property Acquisition Project and/or Operations and Maintenance Project Application Please complete the following application in its entirety. Be sure to answer"N/A"for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at(360)379-4498 or tpokorny(co.iefferson.wa.us with questions. Background and Eligibility Information 1. . Project Title: Toandos Forest Acquisition and Restoration 2. Conservation Futures Acquisition Request: $96,000 Conservation Futures O&M Request: $0 3. Total Conservation Futures Request: $96,000 4. Please indicate the type of interest contemplated in the acquisition process. X Warranty Deed Easement Other(Please describe below.) In whose name will the property title be held after acquisition? Northwest Watershed Institute 5. Applicant Information Name of Applicant or Organization: Northwest Watershed Institute Contact: Peter Bahls Title: Executive Director/Conservation Biologist Address: 3407 Eddy Street, Port Townsend, WA 98368 Phone: (360) 821-9566, ext. Fax: ext. Email: peter@nwwatershed.org 6. Sponsor Information: (if different than applicant) Same Organization Name: Contact: Title: Address: Phone: . Fax: ( ) - , ext. This application was approved by the sponsor's legally responsible body(e.g., board, council, etc.) on February 25, 2025 1 2025 CFF Program Application 7. Project Location Street Address or Description of Location: 1125 Toandos Road, Quilcene, WA Driving Directions from Port Townsend: Coyle Road south to Toandos Road. Need gate code to proceed on Toandos Road to "Leaning Firs" sign on left. Section: 15 Township: 27 N Range: 1 W Assessor's Parcel Number(s): 701-153-003 Please differentiate current and proposed ownership of each APN and indicate if the parcel is to be acquired with CF funds or used as match. The parcel is to be acquired with CF funds Please list the assessed values for each property or APN, as applicable. 701-153-003 = $124,257 8. Existing Conditions New Site: Yes No Number of Parcels: 1 Addition to Existing Site: Yes No Acres to Be Acquired: 6.38 Total Project Acreage(if different): Current Zoning: 1 per 5 Existing Structures/Facilities: Yes Any current covenants, easements or restrictions on land use: No Current Use: Residential Waterfront (name of body of water): Discovery Creek watershed, part of Dabob Bay Watershed Shoreline(linear feet): NA Owner Tidelands/Shorelands: NA 9. Current Property Owner X is _is not a willing seller. Project Description 10. In 1,000 words or less, provide a summary description of the project,the match, and why you think preserving this property is important.Name three top objectives for the property(other than those related to funding). Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Fund Program funds including: vegetation,topography, surrounding land use,and relationship to parks, trails, and open space. Describe the use planned for the site, any development plans after acquisition(including passive development),characteristics of the site which demonstrate that it is well-suited to the proposed use, and plans for any structures currently on the site. If applicable, describe how the site project relates to a larger 2 2025 CFF Program Application conservation program (please identify), and whether the project has a plan, schedule and funding dedicated to its completion. Please also list any important milestones for the project or critical dates, e.g. grant deadlines. List the dates and explain their importance. Please attach a spreadsheet of the budget. Background,goals, and objectives Since 2002, Northwest Watershed Institute (NWI), Jefferson Land Trust, and over 40 partnering organizations have been working on a landscape scale project to protect and restore the Tarboo- Dabob Bay watershed,with over 4,000 acres conserved to date along Tarboo Creek and within the state's Dabob Bay Natural Area.The three main objectives of the conservation effort are to: 1) protect and restore the stream and wetland corridor,from the headwaters of Tarboo Creek to Dabob Bay, 2) conserve uplands for sustainable forestry, 3) preserve lands within the Dabob Bay Natural Area. For this project, NWI proposes to acquire and permanently protect and restore a 6.38 acre parcel within the boundaries of the Dabob Bay Natural Area. The property adjoins state protected lands on three sides. The property is mostly forested with a small residence and drains to Discovery Creek.As match to the grant, NWI is proposing to clean up the property, including removal of the cabin, trailers, debris, decommission of roads and septic system, and re-vegetation and weed control where needed. Protection and restoration of the property is an important piece in the larger landscape scale conservation effort to protect and restore fish, wildlife,water quality and habitat connectivity of the Dabob Bay ecosystem. Proposed uses The Property will be owned and managed by NWI. County deed restrictions will permanently preserve the Property. Selective timber harvest of the existing tree plantation will be permitted to restore complex older forest structure and habitat.A walking trail system for supervised public school and other tours is planned. Critical dates and urgency NWI has a signed purchase agreement with the landowner to purchase by June 30, 2025. If funding cannot be secured by then, an NWI supporter has agreed to purchase the property and hold until October 2025, then re-sale for the same price to NWI. If NWI cannot purchase,the property will be sold for residential development. 11. Estimate costs below, including the estimated or appraised value of the propert(ies) or property right(s)to be acquired, even if Conservation Futures Fund funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. Estimated or Appraised Value of Propert(ies)to be Acquired: $145,000 Total Estimated Acquisition-related Cost (see Conservation Futures Manual for eligible costs): $17,000 Total Operation and Maintenance Cost: $30,000 Total Project Cost: $192,000 3 2025 CFF Program Application Budget JCCF Match to Total Request JCCF Cost Timeline Acquistion Hough Property- Fee Simple 80,000 65,000 145,000 Aug-25 Acquisition Related Costs: Appraisal 4,200 4,200 Feb-25 Closing costs 3,500 3,500 Stewardship and forest mgt plan 2,800 1,000 3,800 O&M Costs -Cleanup and restoration Demo and remove cabin, trailers,junk 15,000 15,000 Nov-25 Decompact/decommission roads 5,000 5,000 Nov-25 Planting and weed control - 2 years 6,000 6,000 Feb-25 Project management and administration 5,500 4,000 9,500 Feb 25-Feb 27 Total Project Costs 96,000 96,000, 192,000 Basis for Estimates(include information about how the property value(s)was determined, anticipated acquisition- related costs, general description of operation and maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work): Estimate of fair market value is based on a restricted appraisal report by Chad Johnson, SH&H Appraisal, dated February 26, 2025 (see Supplemental Materials). Clean-up and restoration costs are based on NWI's inspection of the site and experience of over 20 years of working with contractors and NWI's field crew to do this type of work. Standalone 0 & M go to question #14: Scored Questions 1. To what degree does the project leverage contributions for acquisition from groups, agencies or individuals? Sponsors or other organizations are required to contribute to acquisition of the proposed site and/or operation and maintenance activities. 1 a. Please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures Fund program funds. Describe 4 2025 CFF Program Application 1 b.Matching Fund Estimate Acquisition O&M °0 Conservation Futures Funds Requested $96,000 $0 50% Matching Funds/Resources* $66,000 $30,000 50% Total Project Acquisition Cost $162,000 $30,000 100% *If a prior acquisition is being proposed as match,please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. 1 c. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when? Navy REPI easement $65,000 Yes No 2025 Yes No 2025 NWI Donations $31,000 Yes No 2025 Yes No 2025 NOTE: Fifty percent(50%) matching funds are required, and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation of property or a property right can be considered as a matching resource. Donation of resources for on-going maintenance or stewardship("in- kind"contributions)are not eligible as a match. 2. To what degree has the project sponsor identified the long-term stewardship issues for the proposed project? 2 a. Identify any factors,threats,or stressors that could negatively affect the conservation values and/or community benefits for which the property would be conserved. The property needs work to help restore it to natural conditions. The residential site needs to be removed and the forest, which is mainly Douglas fir plantation and open areas, needs to be diversified and revegetated. 2 b.Describe the management strategies that the stewardship plan will include to address the identified factors, threats, or stressors,including any actions planned to make these negative outcomes or impacts less likely. As match to this grant, NWI is proposing to clean up the property and restore native vegetation where needed. Restoration includes removal of two trailers, cabin, shed, household debris, decommission septic system, remove utilities, decommission/decompact roads, and revegetate clear areas within native trees and shrubs, and control weeds. As part of the Stewardship Plan, NWI will also prepare a Forest Management Plan for the purpose of treating the plantation forest to restore diverse older forest species and stand structure. 2 c. Describe any existing water rights, and current uses of water. Identify any conservation values currently being protected that are dependent on these sources of water. 5 2025 CFF Program Application The property does not have a well or water rights.The resident currently gets water from roof runoff and the neighbor's hose. 3. To what degree has the project sponsor demonstrated effective long-term stewardship of a similar project? 3 a. Describe the sponsoring agency's previous or on-going stewardship experience. Northwest Watershed Institute is a nonprofit conservation organization that provides scientific, technical and on-the-ground support for watershed restoration and has been conducting habitat stewardship and restoration projects in the Tarboo watershed for over 20 years. NWI employs conservation biologists and professional restoration field crew and has extensive experience stewarding and managing the Tarboo Wildlife Preserve and private and state conservation properties using professional staff, experienced field crew, contractors, and volunteers. NWI forestlands are certified by the Forest Stewardship Council and NWI has completed several successful ecologically-based selective timber harvests in the Tarboo forest to date. 3 b. Has the project sponsor and/or applicant been involved in other projects previously approved for Conservation Futures Fund funding? No, neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures Fund funds. X Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures Fund funds. Please provide details: Yes. NWI has been involved in eleven previous successful Conservation Futures funded projects in the Tarboo watershed including nine conservation easement projects proposed jointly by NWI and JLT and two fee simple projects. NWI is now completing the West Slope Forest,funded in 2024 and planned for acquisition by June of 2025. 4. To what degree is the project a part of an adopted open space, conservation, or resource preservation program or plan that was open to public review and comment, or identified in a community conservation effort that provided opportunities for public input? The proposed acquisition: X is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort,that provided opportunities for public review and comment. Please describe below, including this project's importance to the plan. Please also reference the website of the plan if available or include the plan with this application. _complements an adopted open space or conservation plan that was open to public review,but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. _is a stand-alone project, or part of a project that was not open to public review. 6 2025 CFF Program Application The Property is within the approved boundaries of Washington State's Dabob Bay Natural Area. The boundary was established to identify the area where DNR and partners want to prioritize acquisition of private lands from willing owners for permanent conservation as part of the Natural Area. The Dabob Bay Natural Area boundary has been expanded three times since 2008 after extensive public hearings, scientific review, and with broad and strong public support. This parcel is included in the 2009 expansion after scientific assessment by DNR's Natural Areas biologists, several public hearings in Jefferson County, review and approval by DNR's Natural Heritage Advisory Council, and approval by the State Commissioner of Public Lands. Jefferson Land Trust's Jefferson County Conservation Plan (2010), that underwent public participation and review, generally identifies the Property as within a priority habitat conservation area. https://www.saveland.org/wp- content/uploads/2016/06/2010 JLT ConservationPlan LoRes.pdf The Property is more specifically included within the priority Dabob Bay area of the Tarboo Creek/Dabob Bay Implementation Strategy, a Sub-Plan of JLT's Jefferson County Conservation Plan (2010). The Property is a top priority in Northwest Watershed Institute's Tarboo Watershed Conservation Strategy to protect and restore lands within the recently expanded boundaries of the Dabob Bay Natural Area (Objective 2) and also fits within the Forestland protection objective (objective 3) http://www.nwwatershed.org/tarboo-watershed-conservation-strategy.html The proposed properties are within a priority terrestrial conservation area identified and mapped in the Willamette Valley-Puget Trough--Georgia Basin Ecoregional Assessment(2004 Floberg et al). This priority area includes much of the Tarboo and Thorndyke watersheds. The Ecoregional plan, developed by Washington Department of Fish and Wildlife and The Nature Conservancy, is one of the primary conservation plans for Puget Sound and has received extensive public and scientific review. S. To what degree does the project conserve opportunities which are otherwise lost or threatened? 5 a. The proposed acquisition site X does _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 5 b. If applicable, please carefully describe the nature and immediacy of the threat, and any unique qualities about the site. The proposed acquisition will provide a significant conservation opportunity that will be otherwise by lost in the next year.The small property has outsized conservation value as an inholding surrounded on three sides by state protected land and is important to protect and restore forest and wildlife connectivity. If Conservation Futures grant funding is not secured,the property will be sold 7 2025 CFF Program Application for residential development,with impacts not only on the property but on surrounding protected lands, such as potential dog and cat harassment of wildlife, stormwater impacts to Discovery Creek, and spread of non-native plants and weeds to surrounding native forests. The seller is moving this summer and is giving NWI until June 30, 2025 to purchase the property under a signed purchase agreement(see Supplemental Materials).An NWI supporter has agreed to serve as an interim buyer to purchase the property (under NWI's purchase agreement assigned to them) and hold the property until October 2025 if needed to allow time for grant funding to be secured to purchase the property. 6. Are the conservation values of the project commensurate with or greater than the amount of CFF funds requested, and will both the timeframes for meeting project objectives and associated metrics demonstrate achievement of the conservation objectives? 6 a. Summarize the project's conservation values and how the CFF funds requested support these values. The project's conservation values are extremely high relative to CF funds requested because: 1) the property is a key inholding surrounded on three sides by protected lands and thus its fate has an outsized influence on conservation of the larger landscape, 2) match is provided for a portion of the acquisition costs and all of the cleanup and restoration costs. Conservation objectives of acquiring the property will be obtained by October of 2025. Cleanup and restoration will be completed within two years, by February 2027, to allow two planting seasons. 6 b. Summarize how the project's conservation values are related to the project's specific objectives. The project's conservation values of providing wildlife habitat and connecting corridor to adjoining protected lands, water quality protection for downstream Discovery Creek, cultural resources for local Tribes, outdoor education,forest carbon storage, and protecting biodiversity are well served by the project objectives which are to purchase the property for permanent conservation and restoration of older forest habitat. 7. To what degree does the project preserve habitat for flora and fauna other than habitat for anadromous fish species? 7 a. X provides habitat for State of Washington Priority Habitat specific to the project and/or State or Federal (NOAA and USFWS) Candidate, Endangered, Threatened or Sensitive species (provide list and references). 7 b. X provides habitat for native flora and fauna. Identify the documented habitat(s)and native flora or fauna species that will be protected by the project. 7 c. X contributes to a wildlife corridor or migration route identified by Washington Connectivity Working Group or other peer-reviewed source. 8 2025 CFF Program Application If affirmative in any of the above,please describe and list the Priority Habitat(s) and Threatened, Endangered, or Sensitive species below, and cite or provide documentation of species'use.' Priority and Listed Species (observed on-site or within 1 mile) Western toad (near) State Candidate and Federal Species of Concern Pileated woodpecker (on site) State Candidate Fisher (near) State Endangered Documented observations by Peter Bahls and Keith Lazelle, NWI Listed Species benefited downstream in Discovery Creek (WDFW data): Puget Sound steelhead State Candidate and Federal Threatened Hood Canal coho salmon Federal Species of Concern Documented in WDFW fish distribution mapping and NWI survey data Listed Species benefited downstream in Tarboo-Dabob Bay Hood Canal summer chum salmon State Candidate and Federal Threatened Puget Sound Chinook salmon State Candidate and Federal Threatened Documented in NWI's nearshore fish survey report- http://www.nwwatershed.org/uploads/pdlltarbooFish.Survey.pdf Provides habitat for a variety of native flora and fauna The project is surrounded on three sides by permanently protected state lands, much of which is older diverse forest habitat. Protection of the parcel will protect help restore connected forest habitats that support a high diversity of at-risk fish, bird, amphibian, and mammal species that occur in Pacific Northwest forests, including western toad, amphibians, bats, bear, cougar, blacktail deer, and neo-tropical migratory birds. The 6-acre parcel is primarily 30-year old plantation forest, but includes a variety of forest types including alder and some older trees. Ecologically based thinning of plantation forest is proposed that will promote older forest habitat growth over time for potential use by at-risk species such as fisher and marbled murrelet. Wildlife corridor The property is a critical piece of long-term effort to protect a significant wildlife corridor from the headwaters of Tarboo Creek downstream and around Dabob Bay. Cougar and bear are frequently seen on the Toandos Peninsula and a recent camera trap survey study by Point No Point Treaty Council shows this Toandos area as having a high density of deer and cougar (see maps and photos). Western toads, seen in the area, seasonally migrate from wetlands to nearby forests. The proposed project will significantly benefit landscape scale wildlife conservation. 8. To what degree does the project protect habitat for anadromous fish species? ' See, for example, http://www.dnr.wa.gov/researchscience/topics/naturalheritage/pages/amp_nh.aspx http://www.wdfw.wa.gov/conservation/phs/list/ http://www 1.dnr.wa.gov/nhp/refdesk/plants.html http://www I.dnr.wa.gov/nhp/refdesk/pubs/wa ecological systems.pdf 9 2025 CFF Program Application 8. Describe to what degree the project protects habitat for anadromous fish species (for example: marine shorelines, stream or river corridors including meander zones, and riparian buffers). Please provide documentation and maps that demonstrate the location, quality and extent of the existing buffer and adjoining habitat. The slopes of the Toandos Forest Property drain to a tributary of upper Discovery Creek, which is a salmon spawning stream and the second largest stream feeding Tarboo-Dabob Bay (see Maps). Protection and restoration of the property will prevent stormwater runoff, pesticides, septic waste and other contamination from reaching Discovery Creek or the downstream estuary. Most lands are now conserved within the watershed of Discovery Creek and the addition of this parcel will help secure long-term watershed level protection for native coho salmon, coastal cutthroat trout,fall chum salmon, and steelhead that occur in Discovery Creek. Anadromous Fish Species benefited in adjacent downstream Discovery Creek: Puget Sound steelhead State Candidate and Federal Threatened Hood Canal coho salmon Federal Species of Concern Fall chum samon Coastal cutthroat trout Western Brook lamprey Federal Species of Concern Listed Species benefited downstream in Tarboo-Dabob Bay (documented rearing habitat) Hood Canal summer chum salmon State Candidate and Federal Threatened Puget Sound Chinook salmon State Candidate and Federal Threatened 9. To what degree does the project preserve farmland for agricultural use OR preserve forestland for forest management? 9 a. Describe the extent and nature of current and planned agricultural use or forest management activities of the proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds. The forest will be managed for ecologically based sustainable forestry and to restore diverse older forest habitats. NWI will prepare a Forest Management Plan that meets FSC standards and that will involve thinning the 30-year-old plantation forest as needed to help restore older forest structure, function and species diversity, and to provide sustainable timber products as feasible. 9 b. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. NWI proposes to protect and help fully restore watershed functions, wildlife habitat, and water quality by: 1) Removal of all residential impacts, including trailers, cabin, unpermitted septic system, debris, and utilities, 2) De-compacting and decommissioning roads and residential areas as needed to improve infiltration and soil condition, and 3) Planting native trees and shrubs and controlling weeds as needed to revegetate the site. 10 2025 CFF Program Application 4) Conducting low impact selective thinning of the Douglas fir plantation as needed to help restore species and structural diversity to the forest. 9 c. Does this project preserve a mix of quality farmland and forestland? This specific project involves forestland and habitat protection and does not include agriculture. However, if the definition of agriculture is broadened to include native food foraging,the Property has excellent potential for gathering of black truffles and other edible mushrooms and deer hunting. In addition, although this property does not include agricultural lands, within the context of the large conservation effort for the Tarboo-Dabob Bay watershed, NWI,JLT, and partners are preserving a mix of agricultural lands,forestlands,wetlands, and wildlife habitats. 10. To what degree does this project increase resiliency to and mitigation of climate change, and is the project's scale significant in regards to increasing climate resiliency? 10. Describe how this project will increase resiliency to and mitigation of climate change. Is the project's scale significant in regards to increasing climate resiliency? Forests of the Pacific Northwest are among the best in the world for sequestering and storing carbon.The project proposal to protect and restore forest habitat will store significant amounts of carbon. Every acre of a 60-year old forest stores roughly the equivalent of 7 years of carbon emissions by the average American. In addition,the planned thinning of the plantation forest to help restore diverse older forest in terms of species and structure and will increase its resilience to forest fires, helping to mitigate climate change impacts. Finally,the property helps the county's resilience to the climate crisis by removing a residential property from the wildland-urban interface where a large fire would be catastrophic for residential uses. 11. What area does the project serve? 11 a. Describe how the proposed acquisition benefits primarily a local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. The proposed project benefits a broad county area because it is a key part of a conservation project that extends from the headwaters of Tarboo Creek to the state's Dabob Bay Natural Area to protect and restore habitats and wildlife connectivity on a landscape scale. In particular,the project will protect a critical "gap" in the 11,300 acre Dabob Bay Natural Area that will directly benefit the wildlife, biodiversity and safeguard water quality in downstream Dabob Bay, which has been recognized as a state and national priority for conservation due to its diverse estuarine habitats and valuable shellfish production. 11 b. Is the project located in an area that is under-represented by CFF funded Projects?Areas that Conservation Futures has not been able to support to date include, Toandos Peninsula, Dosewallips Valley, Bolton Peninsula, and the West End. Yes, the project is located on the Toandos Peninsula, an area under-represented by CFF funding. 11 2025 CFF Program Application 12. To what degree is the applicant committing to providing educational opportunities, interpretive opportunities, and/or serve as a general community resource that does not reduce the conservation value(s) of the project? 12. Describe the educational or interpretive opportunities that the applicant will provide for public access, educational or interpretive displays (signage, kiosks, etc.) on the proposed site, including any plans to provide those improvements and any plans for public accessibility that will not reduce the conservation value(s)of the project.'` Provide the time frames when each of the above will be implemented. The Property will serve as an important site for educating the public on forest protection and sustainable use.The site is easily accessible as a stop on NWI field tours and NWI plans to develop a foot trail system to host workshops,tours and other public events to expand understanding and adoption of forest restoration methods. As described in the letter from the Port Gamble S'Klallam Tribe,the Property will also serve an important educational purpose as a place for the Tribes to pass on traditions of sustainable gathering of forest plants used for cultural purposes and ceremonies. The Properties is also available for public access by prior permission, including deer hunting, berry picking, and mushroom picking,three important recreational uses in rural areas 13. To what degree does the project preserve historic or culturally significant resources3? 13. The proposed acquisition includes historic or culturally significant resources4 and is registered with the National Register of Historic Places, or an equivalent program. X is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. none of the above. If affirmative in any of the above, please describe below, and cite or provide documentation of the historical cultural resources. Please see letter from Laura Price, Cultural Resources Director for the Port Gamble S'Klallam Tribe, that attests to the importance of this Property for preserving and restoring cultural resources. The Port Gamble S'Klallam Tribe,Jamestown S'Klallam Tribe, Lower Elwha S'Klallam Tribe, and Skokomish Tribe are signatories to the Point No Point Treaty and retain the right to hunt and gather within their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to rely upon a diversity of intact native plant communities in the region, as they have for thousands of years, as places where they gather traditional food, medicine, and materials for use in all aspects of their cultural life, including social and religious. The project site's forests will provide resources for tribal uses, such as cedar bark for basket weaving. If funded,the project will permanently conserve the forest while allowing sustainable harvest and gathering to maintain tribal cultural traditions. 2 The words "education"and "interpretation"are interpreted broadly by the CFF Committee. 3 Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. 12 2025 CFF Program Application Standalone 0 & M Projects 14. Applications for standalone Operation and Maintenance funding to be scored on a scale of 1- 100 based on information provided. Consider the CFF Manual and the topics below, for example: 14. Please describe in detail,the reason 0&M funds are needed,proposed 0&M activities, and how they protect resources cited in the original acquisition project. Attach additional information such as up-to-date stewardship plan,maps, field reports,work plan, budget,timeline, etc., to support the application, if appropriate. 0&M projects must address a compelling, immediate need. Specifically include whether the project has an up- to-date stewardship plan. If there is such a plan, is it being implemented and is the proposed 0&M work specifically included in the plan?Also, describe any unforeseen or urgent threats to the resource conservation values of the site and whether the proposed 0&M activities will mitigate those threats and/or prevent potential future threats. 13 2025 CFF Program Application Verification 15. Sponsor commitments: 15 a. Sponsors of projects that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved, or three years after the acquisition funds are disbursed to the applicant, whichever is later.The progress report must address any changes in the project focus or purpose, progress in obtaining matching funding, and stewardship and maintenance. Sponsors receiving 0&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project"report card"that will be submitted annually to the Board of County Commissioners. 15 b. If this project is approved for funding, I understand the sponsor is required to submit progress reports for three years and for any year in which 0& M funds are expended. Initials j 743bate 15 c. If,three years after the date funding is approved by the Board of County Commissioners, the project sponsor has not obtained the required matching funds,the Committee may request the Board of County Commissioners to nullify their approval of funds, and may require the project to re-apply. If this project is approved for funding, I understand that we may be required to re-submit the application if the project sponsor does not o tain the necessary matching funding within three years. Iy Initials roe Date 15 d.The applicant has reviewed all project requirements and all information in the application is accurate to the best of their knowledge. /(fj Initials + ?$Date o24 15 e. The sponsor commits to providing long-term stewardship to achieve the conservation and protection goals of the project as proposed in this application or as may be modified with recommendation of the CF Committee and approval of the BoCC. Oa, Initials Date Z$ Zo2-S 14 2025 CFF Program Application ir . let, '' Tarboo Northwest Watershed ti.— Watershed Institute Assessment Porte � Townsen = Watershed Locator rC� --7 ` ,^ N 1 ----j 1. — 1 `, A ,,,__ z I I C.7 ) 5 n 5 Miles ,--.'\• . March 2004 ti. o 1 Tarboo �ti� 704 Proposed 1__, ` Watershed .. Project F Hood V Canal Olympic Qullkene , Bridge,, CO CPZI Mountains �, -, Li.,..\,/ r' a b �Ytial r ~U �,� j r ,� ,1 u es Seattle t,, i ,C ems__. ? `1, f y item ertori, 7/ i _ .- y � _f, s `�j� Northwest ;' Washington State z r h, t . . Figure 1. Project location within the Tarboo Creek-Dabob Bay and Hood Canal watersheds. Tarboo Creek Watershed Dabob Bay Natural Area 2019 lidar Imagery (3 ft resolution) Projection: NAD 1983 ,:', atershed boundary State Plane Wash, North 0 0.75 1.5 3 I I I I 1 t Miles Road �� • ' Lakes Northwest Streams Watershed Institute t " Rare Forests i . , Rare Forest EO—Confirmed \i Rare Forest EO—Possible 2020 Parcels NW Watershed �, DNR Natural Area PROJECT' I WDWF Critical Habitat Preserve g County Park } DNR Trust Lands i.,,ftol Nt,. - t_1 Rayonier Under Appraisal x Other- Private Other- Public A rl Easement Type Conservation Easement DNR Aquatic Land Public Private Northwest Watershed Institute i ,, Unknown Land Boundaries Current Dabob NA Boundary Proposed Dabob NA Boundary Figure 2. Project location within the -Dabob Bay Natural Area (orange and magenta lines). 14.1 i a Hough g r I w S i".* p ' fi • • Figure 3. The proposed Hough property acquisition is surrounded on three sides by state protected lands. a.._. r_ 2 7011 tl, 7011530151 w +. ,.., J _ , . _ > `. .... ,�' � 701163008 s a. �w I �. 1 '? 115 . t 0 � +2' ,X 7011530.^ g s � _c t 4a I i. *�ry 70115301E 7:' � F ` n q 70115J 027 701 YS v, D r �3J0' "�, f... " �� '153014 " "� 701,53012 701153015 - �_ 1'e-70 11 53 013 70 153007 . lifi, \ 70115300d =, ; 701153003 • '1, ..-sii 7011 C3005 70122'001 0 \f„ , 701?2400u .. ' tlEa ff 701122013 c _ c -�4783^90 .,_a57 _ 7 01 222 011 t ae= Authenticat eci M ara^ t f7e rsot�Co.,ne,alit • ,WA P^o-West&As ),_te; Figure 4. Property includes critical areas (slight unstable slopes) and drains to Discovery Creek. g � .0 tea :4 f c w' �.-. T' i T (s i .000 IP .y� _ _ 1}� ;4 t�.,' ._1i 04 : y .1 ` s ri r.-7 + 14 s . :sue,.,_,, �,,. : ' '' .� �r e z �;_ t'`,.% t. s y _ .„,...,,,,,,, „.,,e .f • • ,,,^ xJ',jam'" r "5a 9€yyy� ,,-, _,,,,,,, .„4„,,,,, 1 . . ',/-.4.4.4.4'.A.4.44'.. ' ....,..4,-kt-,--. n? ` $ t. •r'iti rC .',,...4„`",,,,.... Figure 5.Tom Hough, property owner, and Peter Bahls, NWI, at entrance to property. -. • - - ...'. 7,y1:- -:74,4*,;:•i:x:';': 1.1*: -(,,t7/` .•„,".7:' , - -44 *IPS% ' •gl..4t; ' • A 1...*: t.• ii'i,'•, -'-- :;,',..;-,..,:,..,., '.- ..,. 1.:-..- -:44., ,.,„„.7.. , -,-, - 4..„ i -0,.....- ,;,.. .t44 ,- sez-:•till!, ' 1.•i ltj,. 7-7;,,,,,r '''').-41. , „1,,,, ,,,, !,...%ri. .4kNif* ,' , -t-I ' „, i,,. 2,' '•,‘,'''7,,Apie ".",*ii ' ' t , .1-7t'''•, ' r..: ' •: '-- . , — • .-. '0,'"`' ' - k ...- -- -,,:.''' ,, ,,,„ - a.;7. , ,,•• vitiri:‘, , ' , i f•-1-%. -,,i ,-.:•-,/ ,-'' A,,li • 4 -• :1.*-1.4-:'''' tk' :: 714'c, _ 1,, !. :t: .-.,.. .,t;''Z'l.' ' '''e. .* '7;.'. ''''' :: '';' . , ' .-..:7-, ,,...••4; v..., or. - . - ! ......-; . . •7.- . - , =. - ,,...- , , - , i • 1.-' - — ‘, '— , *10''''''e• ''... lii,,.... .,'"„ , , —' , , ., ,,-IA ; NI ;, . , „. •,'* <-,,"' -* 4 a*"- 1.. i. "ii; I " Ili ti. • ..4 _ ' 0..'-, 4 7 - , __ iritr-, .,N***. ''''''' ' 1 ,. . '• 4, ' ,i.--4 ,* •#.4.''''''' f # , '4, • 1.1 r ie."; • -c- . • . ; .., ,4 • • ‘ AI*of * 4s . 's ' 4- . , • , , ,- ..,-;f4stP,': 44:'v --.' ''f,e;„,":',-' .—: , ...-;-- ' - _'' _-tv'iz--,_;-- -'-',-v-,-;--------,.--,:'-: ' •., "-- - ...,--...-4" ":" • - ir- , ', . -.40 ,-wpfe,,k,'. - *PA s..'------r. TAT*,14[6.- '. N. - , .-,,,,, . ,„..,:. '- _ ;,,11.---- ,-;;;-- troEA „ . c -•..: ,,,P, , ,-„,' ,,. ,,,. ,„ ,s,‘" Figure 6. Some older native conifer forest occurs on property. ( 71,v4:--rt-141111140twit: A. , ,f _ / ). n„:,- - -r: • .7— r 4,, li, ,./ = , ' ) A . -A- , , `,.• \ e>4 •"-'7 - ', . ,,' .•,.* ... ,‘ , ,,...z„,-,, • '.''V ' %IN, .‘ v. =,f • • .1., ,t... ,.--.4,.. --,..', ." .. . _- ft. .';, -- ,- ,I. .,, .',4 .,..., . .,•,-,.. ift.t1.01. , . ,, ,. -,„-- tw. i ° i' ' ......., • .--,-' ''''' ' ' ' 'ri4" %.,,-*- ', , ...) t"'....•C * ''.... ,•„:„..; ' ''j i 4-#: '4* # . ,ti_t- i",:t , C.,,, * 4.41;-}t" • :' , - .., ' ,. • - i' # . ,.,,,,,,2. .,t,tr. .......,,.. . „..-.,:a..- '..ft 4 , k..'' I. r .. ,.- ''.' -..z.-ff ''-r'll '-•--.. ;,',. ..,.-- -- 4.),-4, * 44,v ..,,.. _,t,. , ,,, - , ...4.,...., - . ...C -',.V. ,,,;,,---4,i --,•. '-.: -_ .4,' ••---: ..v. ' ' -* ..;i-4'...' ,t - --ir--;-,-- ,,,,-.7,-.1--$.-- : :.--,••••.7,-, ,.:2',., - , "!..,, l' a ,-,,,:::''...,---.." al', It* r - 41,...„-' - ' ' -r,- --) ',,.,.4 ig,1,-,,,,, ,g,A. ' . -, --.3.., r. .-.'.. - ,t.- .-- if,, 1,!•--...,,,... ,,,,. , ..*. - al,-......-• ,'.71"."- -ie - ,:-..e,,,,, ,,.., ,--,3,71-1- .:,---;„.0,,- .._.: 1 .. , . .---., ,t. .‘ ,....,. . ,..„A , ,.-ttk- 'OrIv,: .1'- . .4...,,r-.-r,a....trif:-..„7-...,,:,,9-- - -‘,. „,,..„-: :=,...p, f-., -;P •,,,„. ' ..'.. -"- ••• ,.. ,,111,, • '''"' ?'%;',4 i'.'";..''''V.'. ;' 0,'.'..14...4111r ... '''%',..' '‘1 ''''' 1 \*".,., 1 : ' ,.1 4 .4, -.1.- :."1,""yi-t4t.'''''f.kt -' '''. '' , ,,,4t`'''` ' .4 atl"" ' ''''' • '10..t. I-tn6- ";:.- 4.f -• * .:4* ',_ .-: ',,' ' ::1 ',A ',.:„#4.!-,1.7. 4t•NW 1.; ' - 4-t ----1'4, •' 1..44 ir , ''''," ''':, -1!' • . •. -. :>`;"- t', •-•*.. -. '--4..' s;,` '-1 '".' iff,'", " ...;.- :'#1•1?.! •4'",•;:*'7°V-; .: l'N'-***;" ,' ' ''‘'', .• - - ' i Figure 7. Property surrounded by state Natural Area protected forests. i s 44)- i I 4 A- 4T11;1 �Fesa li � t q ,Aid 4 1-_ .+L.' - � 7VV v v"' {'' �j a " F ,","CIF �L',+i 7 t ✓lift' % i'o^t j 7 ?i y;, } max ., .a., � c :':ice kk t ", iit. t/'rrr �, `'7t `` �;� nry. 4 yp :h � r✓a ,, 1 sue. Figure 8.Alder forest on property. py .. x > I �µq v-, e_.n..A /' a i It ., , -,,..: - I , -t ., Ife. .. , , „ , , P tw ,, ! - } la- t ; 1 Figure 9.Young conifer forest on entrance driveway to property. a" - �" ''"^& ./ ' P�lt a 3` •'i 4r�.1 x, s� , *g,, .e ,,,,, ' t i _ i1 f tiY ♦ d` r ?fF uF b.. w i' i ir.., Maw _ #4. +d tr. a m c. ti. A latof Figure 10. Open areas on property proposed for re-vegetation. yx r ci , . f.!-:;4''''',1-4. ` a. r T4 `tea .•Fs 4' Figure 11. Cabin/trailer and cleared areas of the Property proposed for restoration. t t ' y o-M. ii , x . �ik ; r a g ;., i, fi Ar ? b s.R eI.nw : p Figure 12. Cabin/trailer on property proposed for removal. :,.''4 tt7Arykiiit;. t lu7S.* °,,e;.' eA''':-.' .•'P''•v-''''-/'t","..-4:e,.1 , l.; . :...? -7:4.--..,-.00, . ''tillikirit... .-' {' .;,,.• --7,,• f -, - - �•, . "ti-"•' .ram +� n.4_ d' � - _•+. ba A i`s 1- •' • & f yam,'_ n t • g _�rY 1w . - - - - l r � yjy _. .a......t�¢I.,«« l '+ .r �',r 3uFe ,�w r .5ws''sh i M-�, #�';f -- Figure 13. Young forest on the property. * V''F`,. * .�.g. 4i,v 1: Ti.......'-,' '..i.f F q v Y '� t.�tE, t b.. EF'• L -1-„ , ,,ti. , ' -„p,-. . iv_ — ,:,-;,' lyi.,,_14,-Pt. — .-iplkrs, ,', 1 ' -' ev:,,,e..Iv': -1.- ,.--'- ....., - 1.,/ '.''''.:4f; : ': -,.1 "-; ,VIL.--,•*: : ..iissii-" 1 -13'.4-•-•-..4444. 4-:,-5.1,:e. - .:- ,---...--, [[{ 11% 4i. , ., ,r „. _ . , , _ , .. --_,..... ,,,,,i,,,„xire: „.,.. .-4e„, , 7t, .... .. - „ii,... .. . z„. .. .• ... „:„... „.„,„ ._ _ __:,..„--,, , ,, ....4.„ „i.,.„. „.. , . .„,,„„....„...„.•,.,„..._ vlicger..., .., ...... . . _ .., .._ ..... ,.. s. . , _ . „ . ...„,_ ... .„,.. t. /,. ). . . , _ . .. . ,, „,,. . ,_. , .. . , �_ 'ter,.. ,_ ,_ .. „ _._ ,,, 10.— - .aK. titer _ `'` -I.. ... 'A., r 1.s. - _ Figure 14. Cougar at Fisher bait station less than 1 mile away from property. .. t • 14,ill I 1' �... -T t.- a f' 4 ..r 'r+ "biz v • ate- ilitt,, a"a err r Photo by John Jacobson Figure 15. A fisher, shown here in Olympic National Park, was spotted by Keith Lazelle on Toandos Road within one mile of the property several years ago. 2O2O Camera Grid Cougar Density ^ — ° mmc=re= mm Approx.Density 0" g- 150-,^ ` r `~~ga''so=~ Figure 16. Cougar density heat map. The ''—g~'III dly,100=~ Toandos Peninsula has a high density nf wildlife and is important as wildlife corridor. ' | From Dylan 8er8an, wildlife biologist, Point ° No Point Treaty Council. � * ° * ` - 2O2O Camera Grid'Fawn Density ° mm"a— - mmmwm".w"** 01"m .wu~ \ wv~r | 'to—'mday. Figure 17. Fawn density heat map. Another m�»'^~'"days°~`=~ example ofvvi|d|ife abundance around 4�� Dabob8ay. is .= * / ` ^ Jefferson County Conservation Futures Proposal 2025 Upper Yarr Creek Acquisition Project SUPPLEMENTAL MATERIALS Proof of willing seller: See narrative, project sponsor proposing to sell deed restriction to property already owned by NWI. Estimate of value: No appraisal required. Requesting $20,000 or less. Site location map: See separate PDF, maps and photos Critical areas map: See separate PDF, maps and photos Project boundary map: See separate PDF, maps and photos Color images: See separate PDF, maps and photos Development plan or Narrative: NA Proof of 501c3 status Current budget: 2024-2025 Board roster: 2024-2025 Staff roster: 2025 Financial statements: last fiscal year July 2023-June 2024 Resolution to submit proposal: NWI executive committee resolution Cultural Resources letter from Port Gamble S'Klallam Tribe, Feb 27, 2025 AGREEMENT FOR CONTINGENT PURCHASE AND SALE OF VACANT REAL ESTATE (Dabob Bay Natural Area-Hough) THIS AGREEMENT FOR CONTINGENT PURCHASE AND SALE OF VACANT REAL ESTATE (the "Agreement") is made as of the/5day of 1V0%mbe , 2024 , by and between the NORTHWEST WATERSHED INSTITUTE, a Washington non-profit corporation and/or assigns (hereinafter referred to as the "Buyer") and THOMAS J. HOUGH, as his separate estate,(hereinafter referred to as"Seller")(collectively,the"Parties"). WHEREAS, Seller is the owner of certain real property consisting of approximately 6.38 acres at 1125 Toandos Road,Quilcene in Jefferson County,Washington; and WHEREAS, Seller desires to convey said real property to Buyer, and Buyer desires to acquire said real property; NOW, THEREFORE, in exchange for the mutual promises and covenants herein contained, and other good and valuable consideration, the mutual receipt and sufficiency of which is hereby acknowledged by Seller and Buyer, it is agreed as follows: SECTION 1 PROPERTY Seller shall sell and convey to Buyer, and Buyer shall purchase and accept from Seller, all subject to the terms and conditions of this Agreement, that certain real property located in Jefferson County, Washington, the legal description of which is set forth on Exhibit A attached hereto and incorporated by this reference herein, together with the following: (i) All rights, tenements, hereditaments, easements, associated tidelands, and appurtenances, including, but not limited to, any rights, title and interest of Seller in and to all trees, crops, oil, gas, sand,gravel, water rights,or mineral rights; (ii) All improvements, if any, and other items located upon or within said real property; (iii) All easements, rights-of-way and other rights used in connection with said real property, including but not limited to the following: maintenance easements, rights to adjacent streets, roads,alleys and rights-of-way; (iv) All permits, plans, licenses, surveys, consultant's reports on all matters, including Purchase and Sale Agreement 1 of 15 Dabob Bay Natural Area Hough but not limited to soils, engineering, traffic, environmental matters, and wetlands made by, for or on behalf of Seller with respect to the property,and an assignment of all representations and warranties made therein to Seller. The parcel of land, together with the improvements, rights and interests described above, are collectively referred to herein as the"Property." SECTION 2 PURCHASE PRICE 2.1 Amount. The purchase price ("Purchase Price") to be paid for the Property shall be the greater of the sum of ONE HUNDRED AND TWENTY THOUSAND U.S. Dollars ($120,000.00) or the Fair Market Value of the Property as determined by a qualified appraiser in an appraisal commissioned and paid for by Buyer. If the Fair Market Value exceeds $120,000, the Parties agree to amend this Agreement to make such amount the Purchase Price. Buyer's obligation to purchase the Property is contingent on the availability of funding to the Buyer. If Buyer does not obtain sufficient funding to purchase the Property and complete the Agreement prior to the closing date, then Buyer may terminate this Agreement without further obligation other than loss of its Deposit as provided herein. 2.2 Earnest Money Deposit. Within ten (10) days following the execution and delivery of this Agreement, Buyer shall open escrow with First American Title of Jefferson County in Port Townsend, Washington (the "Escrow Agent"), by depositing with Escrow Agent a copy of this Agreement and the sum of One Thousand Dollars ($1,000.00) (the 'Deposit"), in the form of a personal check payable to Escrow Agent. In the event that this transaction is consummated as contemplated by this Agreement, the Deposit shall be applicable to the Purchase Price. In the event that this transaction is not consummated as contemplated by this Agreement, the Deposit shall be returned to Buyer; provided, however, that in the event that this transaction is not consummated as contemplated by this Agreement because Buyer has not obtained sufficient funding to purchase the Property,the Deposit shall be paid over to Seller. 2.3 Payment. Purchase Price shall be paid into escrow by a Buyer warrant or wire transfer payable to the Escrow Agent on the Closing Date as defined below. 2.4 Compensating Tax. If the property is in forest land designation under chapter 84.33 RCW, this transaction is exempt from the payment of compensating tax as provided by RCW 84.33.140 (13)(c), or if the property is in open space, agricultural, or timberland classification under chapter 84.34 RCW, this transaction is exempt from the payment of additional tax as provided by RCW 84.34.108(6)(f). SECTION 3 CLOSING 3.1 Closing Date. "Closing," "Closing Date" or "Date of Closing" as those terms are used herein, shall mean the date upon which all documents are recorded and monies paid to complete Purchase and Sale Agreement 2 of 15 Dabob Bay Natural Area Hough the purchase contemplated herein. The Date of Closing shall be as soon as practical to facilitate an orderly closing but no later than June 30, 2025 unless otherwise agreed in writing by the Parties. 3.2 Escrow. This transaction shall be closed in escrow at First American Title of Jefferson County, 2424 S. Park Ave, Port Townsend WA 98368 ("Escrow Company"), which shall be arranged by Buyer within ten (10)days of execution of this Agreement. The Parties shall deposit the necessary documents and funds in escrow sufficiently in advance of the Closing Date to facilitate an orderly closing. Buyer and Seller shall each pay one-half of the Escrow Company's fee. SECTION 4 CONVEYANCE,TITLE INSURANCE,AND POSSESSION 4.1 Possession. Buyer shall be entitled to possession of the Property on the Closing Date, but Buyer shall have a right of entry pursuant to Section 5 below. 4.2 Form of Deed. On the Closing Date, Seller shall convey title to the Property to Buyer by Statutory Warranty Deed, free and clear of all assessments, monetary liens or encumbrances securing the payment of money, and subject only to any other encumbrances or defects accepted by Buyer in writing. 4.3 Preliminary Commitment. (a) Seller has obtained a preliminary commitment for an ALTA Owner's Standard Coverage Policy of title insurance (hereafter "Preliminary Commitment") from First American Title of Jefferson County. Seller further warrants that title shall be good, marketable and insurable subject only to the exceptions approved by Buyer pursuant to subsection 4.3(b). (b) Within thirty (30) days of execution of this Agreement, the Buyer shall notify the Seller in writing of any exceptions thereto which are wholly or conditionally acceptable to the Buyer (hereafter "Title Notice"). Following giving of Title Notice, if additional encumbrances affecting the Property arise, Buyer shall have twenty (20) days from receipt thereof to review and approve these additional items. Failure of the Buyer to so • approve in writing any exception to Seller's title shown in the Preliminary Commitment or arising thereafter shall be deemed to be a disapproval of such exception. Purchase and Sale Agreement 3 of 15 Dabob Bay Natural Area Hough 4.4 Policy Condition of Closing. Seller shall, prior to or at the Closing Date, at its sole cost and expense, undertake (by the exercise of its reasonable efforts and with due diligence) to remove, eliminate or modify any exceptions not acceptable to Buyer. Closing shall be conditioned upon Title Company issuing its ALTA Owner's Standard Coverage Policy insuring fee title to the Property in the name of Buyer in the amount of the Purchase Price, subject only to (i) the printed form exceptions contained in the ALTA Owner's policy and (ii) such exceptions accepted by Buyer. 4.5 Use of Purchase Price. Purchase Price to be paid by Buyer to Seller at Closing may be used in whole or in part by Seller by and through the Escrow Company to remove any liens, liabilities,or encumbrances which Seller is to have removed. 4.6 Cost of Policy. Seller shall be responsible for the cost of the title insurance policy. Buyer shall be responsible for requesting and for paying the cost of any additional endorsements, co- insurance policies and reinsurance certificates issued by Title Company at Buyer's request. SECTION 5 BUYER'S RIGHT AFTER ACCEPTANCE 5.1 Inspection Contingency. After the date of this Agreement, Seller shall permit Buyer and/or its designated agents to enter upon the Property at all reasonable times for the purpose of conducting environmental assessments and investigating the Property and the physical condition thereof, including, without limitation, soil, water, and air conditions, and the condition of improvements, if any, upon the Property. Inspections by Buyer, if any, shall not be construed as estopping actions upon any warranty made herein. 5.2 Buyer's Waiver of Disclosure Statement. Buyer and Seller acknowledge that the Property may or may not be considered "commercial real estate" as defined in Chapter 64.06 RCW, and hereby waive all rights, obligations, and remedies (including, without limitation, the right of rescission) which may be applicable or available to the parties hereto. Buyer acknowledges that Buyer has been advised of Buyer's right (to the extent applicable to the subject transaction) to receive a completed Seller Disclosure Statement pursuant to Chapter 64.06 RCW and that Buyer hereby waives that right, whether or not applicable, provided, however, that Seller shall complete and deliver to Buyer Section 6 (Environmental) of the Seller Disclosure Statement relating to the Property within five (5) days after the execution and delivery of this Agreement. 5.3 Studies. (a) Seller Studies. Within five days of the date of this Agreement, Seller shall deliver to Buyer true copies of all studies, reports, surveys, soils tests, reviews, correspondence with all governmental entities, environmental checklists and reports, plans and other printed or written material (all of which are collectively referred to as the "Seller's Studies") prepared or received by, or on behalf of, Seller with respect to the Property and Purchase and Sale Agreement 4 of 15 Dabob Bay Natural Area Hough any part thereof. Seller authorizes Buyer to speak with any person preparing Seller's Studies with respect to the contents thereof. Buyer shall not be responsible for any cost associated with Seller's Studies, except for the cost of any additional inquiry or investigation that Buyer deems necessary with respect to the Seller's Studies. (b) Buyer Studies. Buyer shall have the right to prepare,or have prepared, appraisals, market and engineering studies, soils tests, feasibility studies, surveys, resurveys or survey updates, environmental investigations and such other tests, studies or investigations (all of which are collectively referred to as the "Buyer's Studies") with respect to the Property. Buyer shall be solely responsible for costs of all Buyer's Studies. (c) Termination. If the Buyer determines at its sole discretion that the Seller Studies or Buyer's Studies indicate the Property is not suitable for the intended use by Buyer or the Property presents risk of liability unacceptable to Buyer, Buyer may terminate this Agreement without further obligation so long as such termination is provided to Seller in writing within 120 days of this Agreement. If no such notice is provided to Seller, Buyer's inspection contingency shall be deemed waived. Should Buyer timely terminate this Agreement under his Inspection Contingency, Buyer shall be entitled to a refund of any earnest money funds paid into escrow. 5.4 Subsequent Acts. Between the date of this Agreement and the Closing Date, Seller shall maintain the Property and keep the Property in condition at least as good as on the date of this Agreement. Seller shall not remove any timber, harvestable crop, improvements, minerals, sand, gravel, or other item from the Property after the date of this Agreement without prior, written approval by Buyer. At least ten (10) calendar days prior to the Closing Date, Seller shall have removed all junked vehicles, mobile homes, outhouses,temporary structures or personal property that are not intended to be a part of this transaction, and equipment, machines, other solid waste and trash from the Property to the satisfaction of Buyer. SECTION 6 CONTINGENCIES 6.1 Conditions. Buyer's obligations under this Agreement are subject to and contingent upon the following: (a) The truth and accuracy as of the Closing Date of all representations and warranties of Seller set forth in this Agreement or in any instrument or document delivered by Seller to Buyer. (b) The delivery by Seller to Buyer on or prior to the Closing Date of all documents and instruments required by the terms of this Agreement (c) The performance on or prior to Closing by Seller of all acts required under this Agreement. Purchase and Sale Agreement 5 of 15 Dabob Bay Natural Area Hough (d) The absence at Closing of any violation of any federal, Buyer or local law, rule, regulation or ordinance affecting the use, occupancy or condition of the Property. (e) The absence at Closing of any failure to comply with the order of any court, government authority or agency pertaining to the Property or the use, occupancy or condition of the Property. (f) The absence at Closing of any proceeding or threat of any proceeding to condemn all or any part of the Property by a proceeding in eminent domain. (g) Conveyance of acceptable title as provided in Section 4. (h) Approval of Seller's and Buyer's Studies pursuant to subsection 5.2. (i) The availability of funding to purchase the Property and complete the Agreement. 6.2. Waiver. If any condition specified in Section 6.1 is not met at Closing,Buyer may waive such condition in writing, or Buyer may terminate this Agreement without any further liability, subject to paragraphs 5.2 and 2.2. Upon such termination, the Deposit and any monies deposited by Buyer pursuant to this Agreement, together with all interest earned thereon shall be promptly returned to Buyer; provided, however, that if the termination is due only to the unavailability of funding to purchase the Property and complete the Agreement, the Deposit, together with all interest earned thereon, shall be paid over to Seller as liquidated damages and as Seller's sole remedy and not as a forfeiture or penalty. Upon disbursement of the Deposit by the Escrow Agent as provided herein, neither Buyer nor Seller shall have any further liability to the other under this Agreement, except for all indemnity provisions set forth herein which shall survive for such term as provided for in this Agreement SECTION 7 REPRESENTATIONS AND WARRANTIES Seller makes the following representations and warranties to Buyer. Each of these representations and warranties is material and is relied upon by Buyer. Each of the representations and warranties shall be deemed accurate through Closing and shall survive Closing. 7.1 Title. Title to the Property is vested in Seller. 7.2 No Liabilities. There exists upon the Property no condition which is in violation of any statute, ordinance, regulation or administrative or judicial order or holding, whether or not appearing in the public records pertaining to the Property. 7.3 Correctness. All information furnished by Seller to Buyer with respect to the Property is Purchase and Sale Agreement 6 of 15 Dabob Bay Natural Area Hough accurate and true. 7.4 Litigation. To the best of Seller's knowledge,there is no pending or threatened litigation affecting the Property or any portion thereof, including but not limited to alleged violation of federal, Buyer or local environmental laws. Neither Seller nor its predecessors have received any notice relating to a breach or suspected breach of any environmental laws. 7.5 Condition of Property. To the best of Seller's knowledge, Seller represents and warrants the following: there are no apparent or latent defects in the Property; the Property does not contain any underground storage tanks, surface impoundments, asbestos or asbestos-containing material, or polychlorinated biphenyls (PCBs) or PCB-containing materials, past or present refuse dump sites, chemical storage sites, areas of heavily stained soil, or sites of known hazardous material releases other than those indicated and described by exhibit attached hereto; and the Property is free from the presence of hazardous waste or materials and no hazardous waste or materials have been generated, stored, released, disposed of, or transported over, on or within the Property. The term "hazardous waste or materials" includes any substance, waste or material defined or designated as hazardous, toxic or dangerous (or any similar term) by any federal, Buyer or local statute, regulation, rule or ordinance now in effect, including but not limited to the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601, et seq., and the Model Toxics Control Act, RCW 70A.305D. Seller has no undisclosed knowledge of any fact or condition that would materially impair the market value of the Property, would materially increase the cost of operating the Property or would be inconsistent with the terms of this Agreement. 7.6 Authorization. Seller has the right and authority to enter into this Agreement and all documents contemplated by this Agreement, to make the representations and warranties set forth herein and to perform this Agreement in accordance with its terms. Neither the execution of this Agreement nor its performance by Seller will conflict with or result in the breach of any mortgage, deed of trust, encumbrance, restriction, covenant, agreement or other undertaking whatever. 7.7 Vacancy. No one is presently occupying the Property, either with or without Seller's permission. SECTION 8 INDEMNITY AND HOLD HARMLESS Seller agrees to indemnify, defend with counsel acceptable to Buyer, and hold harmless Buyer, its agencies, employees, officers and agents from (a) all liabilities, losses, claims, demands, damages, assessments, costs and expenses(including reasonable attorneys' and consultants' fees) of every kind (hereafter "Liabilities") resulting from, arising out of or relating to the breach by Seller of any of its warranties, representations or covenants contained in this Agreement and (b) all Liabilities arising under, resulting from or arising out of any activities of Seller, its agents, employees, contractors, subcontractors, permittees, or licensees at the Property prior to or at Purchase and Sale Agreement 7 of 15 Dabob Bay Natural Area Hough Closing, including but not limited to the use, disposal, transportation, generation, or sale of hazardous material as defined in subsection 7.5. SECTION 9 DESTRUCTION OR CONDEMNATION Seller shall bear the risk of loss prior to Closing. If, on or before the Closing Date, either the Property is materially damaged, or condemnation proceedings are commenced with respect to the Property, Buyer shall have the right, at its sole election, by giving notice to Seller, either to terminate this Agreement or to purchase the Property in accordance with this Agreement. If Buyer elects to terminate this Agreement, all rights and obligations of Seller and Buyer shall terminate. If Buyer elects to purchase the Property in accordance with this Agreement, Buyer shall be entitled to all insurance proceeds or condemnation awards payable by reason of such damage or condemnation. In the event there is no insurance or inadequate insurance to cover the damage, Buyer shall be entitled to a reduction in the Purchase Price equal to the market value of the Property destroyed or damaged. Seller shall immediately give notice to Buyer upon the occurrence of any damage to the improvements on the Property or the initiation of any condemnation proceedings affecting the Property. The term "material damage" as used in this section shall mean any damage or destruction that cannot be repaired or replaced within ninety (90)days. SECTION 10 CLOSING AND CLOSING COSTS Prior to or on the Closing Date, Seller and Buyer shall deposit the following documents and funds in escrow, and the Escrow Company shall close the escrow in accordance with the instructions of Buyer and Seller consistent with this Agreement: 10.1 Seller Obligations. Seller shall deposit the following: (a) duly executed and acknowledged Statutory Warranty Deed conveying the Property to Buyer and a Real Estate Excise Tax Affidavit; (b) escrow instructions, as required of Seller to close this transaction in accordance with this Agreement; (c) if Seller is a corporation or partnership, a certified resolution authorizing the execution of all documents delivered at the Closing; (d) pursuant to Section 1445 of the Internal Revenue Code of 1986, as amended, a nonforeign affidavit, stating that Seller is not a foreign person and providing Seller's United Buyers taxpayer identification number. If Seller is not able to certify that it is not a "foreign person," Buyer is authorized to withhold a portion of the purchase price at closing for U. S. Income Tax purposes; and Purchase and Sale Agreement 8 of 15 Dabob Bay Natural Area Hough (e) such other instruments or documents as may be required pursuant to the provisions hereof or as mutually agreed by Seller and Buyer to be necessary to fully consummate the transaction contemplated hereby. 10.2 Buyer Obligations. Buyer-shall deposit the following:- (a) The Purchase Price; and (b) such other funds and documents, including without limitation, escrow instructions as are required of Buyer,to close the purchase in accordance with this Agreement. 10.3 Prorations. All rents and other income, if any, and water, sewer, utility and maintenance charges, and any other expenses with respect to the operation of the Property shall be prorated between Seller and Buyer as of the Closing Date, and to the extent information then available, such proration shall be made as of the Date of Closing. Such proration shall be adjusted and completed after the Closing Date as and when complete information becomes available, and Buyer and Seller agree to cooperate and use their best efforts to complete such prorations not later than sixty (60) days after the Closing Date. No insurance prorations shall be made. Seller shall pay any assessments charged against the Property in full prior to or at Closing. Seller shall pay all real estate taxes and personal property taxes, if any, through the Date of Closing. In the event Seller has prepaid any real estate taxes, Seller may seek a refund from the appropriate county official; Buyer shall have no obligation to refund or pay any such amount to Seller. Seller shall pay any real property excise tax due, and the cost of any revenue stamps, if applicable, required to complete this transaction. Buyer will pay recording fees. SECTION 11 SURVIVAL The representations, warranties, indemnification and obligations (to the extent such obligations are not fully performed at closing) contained herein are intended to be operative after delivery of Seller's deed to the Property in order to be fully effective and shall be deemed not to have merged in the deed. SECTION 12 REAL ESTATE COMMISSION Seller shall pay any real estate commission payable in connection with this transaction. Any real estate agent or broker acting in this transaction shall be deemed to be the sole agent of Seller. SECTION 13 NOTICES All notices required or permitted to be given hereunder shall be in writing and shall be deemed given upon personal service or receipt after deposit in the United Buyers first class mail addressed as follows: Purchase and Sale Agreement 9 of 15 Dabob Bay Natural Area Hough To Seller: Thomas J. Hough 1125 Toandos Road Quilcene,WA 98376 With copy to Barbara Hough-Hood by email to bhood1996@a,gmail.com To Buyer: Peter Bahls,Director Northwest Watershed Institute 3407 Eddy Street Port Townsend,WA 98368 The foregoing addresses may be changed by written notice. SECTION 14 MISCELLANEOUS 14.1 Entire Agreement. This Agreement constitutes the entire agreement between the Parties. No other prior and contemporaneous negotiations, understandings and agreements, whether oral or-written shall be deemed to exist or bind any of the Parties hereto. 14.2 Binding Nature. All rights and obligations arising out of this Agreement shall inure to the benefit of and be binding upon the respective successors, heirs, assigns, administrators, executors and marital communities, if any,of the Parties hereto. 14.3 Washington Law. This Agreement shall be construed, interpreted and enforced pursuant to the laws of the Buyer of Washington. Venue shall be in Jefferson County, unless this Agreement is assigned to a state agency in which case venue shall be in Thurston County. The terms of this Agreement shall be given their ordinary meaning and shall not be presumed construed in favor of or against either party hereto. 14.4 Time of the Essence. Time is of the essence of this Agreement. No waiver or consent to any breach or other default in the performance of any of the terms of this Agreement shall be deemed to constitute a waiver of any subsequent breach of the same or any other term or condition hereof. In the event time for performance falls on a weekend or legal holiday designated by the United Buyers or Washington Buyer, performance shall be deemed to be timely rendered if so rendered on the next business day. 14.5 Captions. The captions and section headings hereof are inserted for convenience purposes only and shall not be deemed to limit or expand the meaning of any section. Purchase and Sale Agreement 10 of I5 Dabob Bay Natural Area Hough 14.6 Invalidity. If any provisions of this Agreement shall be invalid, void or illegal, it shall in no way affect, impair or invalidate any of the other provisions hereof. 14.7 Counterparts. This Agreement may be signed in counterparts,any one of which shall be deemed an original. 14.8 Date of Agreement. The date of this Agreement shall be the date on which the last party executes this Agreement. Said date shall be inserted on the first page hereof when such date is determined. 14.9 Good Faith. Both Parties shall act reasonably and in good faith in order to consummate this transaction,and Seller shall neither sell nor dispose of any of the Property nor cause or suffer the creation of any matter of record, or defect in the title to the Property for the purpose of avoiding its obligation to close. 14.10 Default. In the event that either party defaults in the performance of any of that parry's obligations under this Agreement, the non-defaulting party shall have all remedies available in law or equity,but neither party shall be liable for consequential damages. 14.11 Attorneys' Fees and Costs. If either party is required to retain an attorney to bring suit or seek arbitration to interpret or enforce any provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, paralegal fees, accountant and other expert witness fees and all other fees, costs and expenses actually incurred and reasonably necessary in connection therewith, including those incurred on appeal, in addition to all other amounts provided by law, regardless of whether the matter proceeds to judgment or is resolved by the defaulting party curing the default. 14.12 Assignability. This Agreement shall not be assigned without the prior written consent of the other party except as otherwise provided in this Agreement. Seller may wish to gain certain tax benefits available to Seller under I.R.C.§1031 by using a qualified intermediary to facilitate a delayed exchange for the Property to be conveyed under this Agreement. The qualified intermediary shall be released from any obligations under this Agreement. Seller shall remain fully liable to perform all obligations under this Agreement, including but not limited to Seller's representations, warranties and indemnification regarding the Property. Seller shall convey the Property directly to Buyer. The success or failure of the anticipated tax consequences from the I.R.C.§1031 delayed exchange shall not be deemed a term, condition, or contingency of this Agreement, nor shall such tax consequences be deemed a legal excuse for nonperformance by Seller. 14.13 Advice of Counsel. Seller acknowledges that it has had an opportunity to seek independent legal advice regarding the transaction. 14.14 Submission. This Agreement must be executed by Seller, and an original delivered to Purchase and Sale Agreement 11 of 15 Dabob Bay Natural Area Hough Buyer, at the address set forth in this Agreement, on or before 4:00 p.m. on February 9, 2024, to be considered by Buyer. This Agreement shall not be binding upon Buyer until signed by an authorized representative of Buyer. IN WITNESS WHEREOF, the Parties have executed this Agreement the date and year set forth opposite their respective names. SELLER: �� , Thomas J. Hough Dated: 7'ibt/, 2— BUYER: NORTHWEST WATERSHED INSTITU IE Dated: v V (?(/ 20 9-0 2'7 By: PETER BAHLS Executive Director INDIVIDUAL ACKNOWLEDGMENT STATE OF WASHINGTON ) ss. COUNTY OF JEFFERSON ) On this/5—day of 1\)o\J-4,41t,!2024, before me personally appeared THOMAS J. HOUGH, to me known to be the person that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said person for the uses and purposes therein mentioned. Purchase and Sale Agreement 12 of 15 Dabob Bay Natural Area Hough Dated: lNr,ue_m re I-5 y 1 Notary Public Print Name itvli\n C1. I rr,v_�J ANNA C BROWN Notary Public My commission expires L'1(,„—Z Z— 25 State of Washington Commission « 77938 My Comm. Expires Jun 22, 2025 • (Use this space for notarial stamp/seal) Purchase and Sale Agreement 13 of 15 Dabob Bay Natural Area Hough BUYER ACKNOWLEDGMENT STATE OF WASHINGTON ) ) ss: COUNTY OF JEFFERSON ) On this 2D44'day of A(Jofr'e41,ye , 2024, before me personally appeared PETER BAHLS, to me known to be the Executive Director of Northwest Watershed Institute that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that the execution of the instrument was duly authorized and that the seal affixed, if any, is the corporate seal of said corporation. In witness whereof I have hereunto set my hand and affixed my official seal this7r1tt^day of (\)O JCaw\Y)-e•_,- 2rZ-1 a ______c?„1.2=LILD, QC`O tSTMEIv' 0 .; Nota Public Oe rn er • i � Nor 2 q `�= Print ame 1L47c .-McAr'e' 'YO2an A-oow: _ My commission expires hg_ rz..- 2.cszc1, P • UBLIC • • i,,/ip�wMNG`O``�� NMI!mow (Use this space for notarial stamp/seal) Purchase and Sale Agreement 14 of 15 Dabob Bay Natural Area Hough EXHIBIT A Legal Description of the Property (HOUGH) Tract 4, described as follows: That portion of the East 1/2 of the Southwest 1/4 of Section 15,Township 27 North, Range 1 West,W.M., described as follows: Beginning at the center of said Section; Thence South along the North and South center line of said Section,758 feet to the True Point of Beginning; Thence West a distance of 752.77 feet to intersect the Easterly line of that certain tract of land sold to Gene Ray Myers by Real Estate Contract recorded March 8, 1971,Auditor's No. 208162;thence along said Myers Tract, South 15°42' S4" East, 19.22 feet; Thence continue along said Easterly line of Myers Tract, South 33° 56'38" East, 209.75 feet; thence continuing along said Fasterly line of Myers Tract, South 34°96'24" East, 190.24 feet; Thence East a distance of 521.44 feet to intersect the North and South center line of said Section 15 at a point 350 feet South of the Point of Beginning; Thence North to the Point of Beginning. Situate in the County of Jefferson, State of Washington. Purchase and Sale Agreement 15 of 15 Dabob Bay Natural Area Hough ` *. toa0' + : 1, v.. f 44 , , ,if _ ..,,, ••• ....am r k I .. �' ,�.>. -, �,,._ , . z. y .,.. if a' y .......,��� a meµ. [LC' • N f' RESTRICTED APPRAISAL RE°f:RT 1,"`. ' . HOUGH PROPERTY 1125 TOANDOS ROAD QUILCENE , WASHINGTON 98376 SH&H FILE 16344-25 SHEIH February 26, 2025 Peter Bahls Executive Director Northwest Watershed Institute 3407 Eddy Street Port Townsend, Washington 98368 Re: Restricted Appraisal Report Hough Property 1125 Toandos Road Quilcene,WA 98376 SH&H File 16344-25 Dear Mr. Bahls: At your request, I am providing you with an appraisal of the above referenced property. Per our agreement, this report is provided in a Restricted Appraisal Report format. This appraisal report has been prepared with the intent to conform with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, which includes the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by The Appraisal Foundation. In addition,this report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a Restricted Appraisal Report. As such,it presents limited discussions of the data,reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client stated within this report. In completing this assignment, sufficient background information and supporting facts have been analyzed to arrive at a value conclusion, with some of this information being retained in a file memorandum by the appraiser. It is my understanding that this report will be utilized to assist you in establishing the value attributed to the subject's real property as of the effective date of value. The property is currently subject to a Purchase and Sale Agreement with the Northwest Watershed Institute, dated November 2024. The contract price is identified as the greater of$120,000 or the "Fair Market Value"of the property as determined by an appraisal. 3609 Market Place West,Suite 201 University Place,Washington 98466 p. 253.564.3230 f. 253.564.3143 According to the prospective buyer's representative,the$120,000 threshold was generally based on the assessed value of the property. Thus, this appraisal report will be utilized to determine a final contract price for the property. The subject of this appraisal is comprised of one Jefferson County Assessor's parcel with a total area of 6.38 acres, according to Jefferson County GIS information and a Purchase and Sale Agreement document provided. The subject site is located along the easterly side of Toandos Road,westerly of Coyle Road, in the Quilcene -Dabob area of unincorporated Jefferson County (Quilcene address), Washington. The site is forested and gently sloped upward in an easterly direction. The site is improved with a cabin/carport structure containing 168 square feet of enclosed area. Electrical and telephone service are available to the site; however, the site does not have public water access nor is a well or approved septic system installed. The site is, however, currently served by an unapproved septic system, although the legal ability to continue to use this infrastructure is speculative to assume. The purpose of this appraisal is to provide an estimate of the market value of the fee simple interest in the property, as of the date of inspection. The market value of the subject property, as of the date of inspection, February 20, 2025, is estimated at: ONE HUNDRED FORTY-FIVE THOUSAND DOLLARS $145,000 The market value conclusion herein is based on an estimated marketing time of twelve months or less, based on sales of similar properties in the greater market. This estimate of marketing time assumes that the property is competently marketed and priced commensurate with current market parameters. The appraisal report that follows summarizes the assignment, describes the area and the subject property, and explains the valuation techniques and reasoning leading to the final opinion of market value. As in the case of any appraisal, the reader's attention is directed to the underlying Assumptions and Limiting Conditions that are included in the accompanying report. Respectfully submitted, Chad C. Johnso , AI State of Washington Certification 1101662 TABLE OF CONTENTS Title Page i Letter of Transmittal ii Table of Contents iv Subject Photographs v Factual Description Property Identification 1 Intended Use and User of the Appraisal 1 Property Rights Appraised 2 Legal Description 2 Sales History 2 Purpose of the Appraisal 3 Scope of the Appraisal 4 Location Data 4 Property Description 7 Zoning 11 Taxes and Assessments 12 Improvements Description 12 Analysis of Data and Opinions of Appraiser Highest and Best Use 13 Property Valuation 13 Sales Comparison Approach 13 Reconciliation 31 Certification 32 Qualifications 34 Assumptions and Limiting Conditions 37 Extraordinary Assumptions and/or Hypothetical Conditions 42 SUBJECT PHOTOGRAPHS •, 9 &y a 1,, • 477,11Ark a SOUTHERLY VIEW OF TOANDOS ROAD UMW may. e w 4,• v - DRIVEWAY TO THE SUBJECT PROPERTY ''w I ' 4 4 1 w ,,,„ il. i 4 4. 4 i -;/ '" i „-'4--,,,i, ;,- I VIEW OF THE SUBJECT PROPERTY SITE 4.- - 1 . s' ►, " .. . - , „,,,,„ n, .2,.. - 1%1:(-4144e—,„,. , , _...„ - -. -,,,:.------7---: . .y s' i ADDITIONAL VIEW OF THE SUBJECT PROPERTY SITE F X g_ Ita r µ f a 4 _ VIEW OF CABIN/CARPORT STRUCTURE ' .-- ' 4 i , rig . INTERIOR OF CABIN Shx' *fib.` . ' 6 '' 1:1 ' -% :, : i, , , ..,,,,,,, , .,,, D am r Ty • N. „. ,_ N. • INTERIOR OF SUBJECT SITE i —44 a. - ..Yi ,; w , a SHED RESTRICTED APPRAISAL REPORT This Appraisal Report is prepared with the intent to comply with the reporting requirements set forth under the Uniform Standards of Professional Appraisal Practice for a Restricted Appraisal Report. The depth of discussion contained in this report is specific to the needs of the client stated within this report. Diligent effort has been made to fully comply with USPAP. If authorized users of this limited scope appraisal find the information provided is in any way inadequate or insufficient,rather than be misled or confused by this report, they must seek clarification or additional information from the appraiser. APPRAISER Chad C. Johnson, MAI SH&H Valuation and Consulting 3609 Market Place West, Suite 201 University Place, WA 98466 CLIENT Peter Bahls Executive Director Northwest Watershed Institute 3407 Eddy Street Port Townsend, Washington 98368 PROPERTY IDENTIFICATION Hough Property 1125 Toandos Road Quilcene, Washington 98376 INTENDED USE AND USER OF THE APPRAISAL This appraisal is presented in a Restricted Appraisal Report format and is intended to be used only by the client and intended user, Northwest Watershed Institute. The intended use of the report is to establish the market value of the property to determine an appropriate sale price relevant to a pending transaction. Use of this report by others is not intended by the appraisers or the client. A Client is defined as: "The party or parties (i.e., individual,group, or entity)who engage an appraiser by employment or contract in a specific assignment, whether directly or through an agent."1 I Uniform Standards of Professional Appraisal Practice, 2024 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C.,,p.4. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 1 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICT ED APPRAISAL REPORT PROPERTY RIGHTS APPRAISED The subject property is appraised as to the fee simple interest. Fee simple interest is defined as follows: "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain,police power, and escheat."2 LEGAL DESCRIPTION A title report, dated September 16, 2024, completed by First American Title Insurance Company, was provided and contains a full legal description of the subject property. A copy of this document,inclusive of the legal description,is included in the addenda section of this report. SALES HISTORY According to the title report provided, ownership of the subject property is vested with Thomas J. Hough, a single man. Mr. Hough purchased the property on July 10, 1991. The seller was Discovery Investments and the sale was recorded via Statutory Warranty Deed under Jefferson County Auditor's file number 341821. I am not aware of any arm's length or market-based transfers of ownership during the previous ten years. The property is currently subject to a Purchase and Sale Agreement between the seller(Mr. Hough) and the Northwest Watershed Institute (NWI). The contract price is identified as "the greater sum of ONE HUNDRED AND TWENTY THOUSAND U.S. Dollars ($120,000)or the Fair Market Value of the Property as determined by a qualified appraiser in an appraisal commissioned and paid for by the buyer." The Purchase and Sale Agreement goes on to state that "if the Fair Market Value exceeds $120,000, the Parties agree to amend this Agreement to make such amount the Purchase Price." A copy of the Purchas and Sale Agreement is included in the Addenda of this report. Thus, it is my understanding that the intended use of this Restricted Appraisal report is to help establish a final purchase price relevant to the pending transaction. 2 The Dictionary of Real Estate Appraisal, 7th Edition,Appraisal Institute,Chicago,2022,p.73 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 2 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT EFFECTIVE VALUATION DATES Date of Report: February 26, 2025 Date of Inspection/Effective Date of Value: February 20, 2025 MARKETING/EXPOSURE PERIOD The indicated exposure time (i.e.,the length of time the subject property would have been exposed for sale in the market had it sold at the market value concluded in this analysis as of the date of this valuation) would have been twelve months or less. The estimated marketing time (i.e., the amount of time it would probably take to sell the subject property if exposed in the market beginning on the date of this valuation) is estimated to be twelve months or less. These conclusions are based on sales of similar type properties in the market. PROBABLE BUYER The most probable buyer of the subject property would likely be an owner user. PURPOSE OF THE APPRAISAL The purpose of the appraisal is to estimate the "as is" market value of the property as of the date of inspection. DEFINITION OF MARKET VALUE Market Value is defined as"the most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. "3 DEFINITION OF "AS IS" MARKET VALUE "The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date."4 3 The Appraisal of Real Estate,15th Edition,Appraisal Institute,Chicago,2020,p.48. 4 The Dictionary of Real Estate Appraisal,7t Edition,Appraisal Institute,Chicago,2022,p.10. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 3 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT SCOPE OF THE APPRAISAL The scope of this appraisal encompasses the necessary research and analysis to prepare a report in accordance with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by The Appraisal Foundation. The scope of this restricted assignment relates to the field work, inspection, research, and analysis conducted for preparation and valuation of the subject property's estimated value subject to the limitations detailed in this report. This limited scope appraisal assignment involved an inspection of the subject property on February 20, 2025. Statistical, descriptive, and demographic data was gathered using various informational systems such as the Northwest Multiple Listing Service and Jefferson County public records. In the case of the subject property, given that the property is mostly undeveloped with the exception of a cabin and some site infrastructure, the most (and only) applicable and relevant approach to value is the Sales Comparison Approach. In arriving at the value of the subject property by this approach, sales of similar properties were considered. The other typical approaches (Income Approach and Cost Approach) are not typically relied upon in the subject market for these types of properties and are thus not relevant. The exclusion of the other approaches does not detract from the overall reliability of the value conclusion reported herein. UNAVAILABILITY OF INFORMATION A wetland delineation report, site specific soils study, and environmental report were not provided during the timeframe of this assignment. Therefore, any information that would have been provided by these documents is not known or considered. LOCATION DATA A map showing the subject property's location within the Puget Sound metropolitan area is presented on the following page. A second map showing the subject property's location within the immediate neighborhood is presented following the area map. In general, the subject is located in the Quilcene area of easterly Jefferson County. This area is comprised of a mixture of forestry/resource properties as well as single family development,primarily on larger/low-density parcels. Many homesites in the area benefit from marine views of Hood Canal/associated water bodies and/or the Olympic Mountain Range. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 4 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT rrort i ownseno , ,._C--Sequim �, .,I e, e � Granite ., ' Port � Marysville FT°� m Hadiock-lrondale •,_'s s1 Whidbey Lake Stevens Island Everett fi Q ( ) Y Monroe t SUBJECT PROPERTY Edmords `' ck �t `� . s- Shor'ebne Bothell l 1 Bangor Base I. °5 Redmond r Seabeck Bainbridge , .t 52° Is and_ Seattle ' Bremerton t'-4 V Hamma Hamma -, `. ' 5`a Renton i Norte r— „- Bella r ( e+ Vashon Island Hoodsport p Kent Union _ _� Gig harbor Federal Way , Tacoma Shelton (mil �.- Enurttclav,, Lakewood Puyallup` ,z -.. ` Kam !cfe Q Spanaway \ eary - Graham GIymP'a v � Tumwater 1. ,. ,psi Capitol — State Forest Q Yelm r` z) • Tenino Eatonville N =akv=isester AREA MAP HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 5 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT 0 c ang Spit c- 13 ECT —_OPERTY C) 0 LOCATION MAP HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 6 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT PROPERTY DESCRIPTION The site description provided below is derived from observations made during the site inspection as well as information provided by the client and public records. Site Description The subject property consists of one Jefferson County assessor's parcel(APN 701153003) containing 6.38 acres, according to Jefferson County GIS information and the Purchase and Sale Agreement. It is located along the easterly side of Toandos Road, westerly of Coyle Road, in the Quilcene - Dabob area of unincorporated Jefferson County (Quilcene address), Washington. The site is forested and gently sloped upward in an easterly direction. The site is improved with a cabin/carport structure containing 168 square feet of enclosed area. Electrical and telephone service are available to the site; however, the site does not have public water access nor is a well or approved septic system installed. The site is, however, currently served by an unapproved septic system, although the legal ability to continue to use this utility is speculative to assume. The owner currently utilizes a rain catchment system for ancillary water purposes and also uses water from an adjacent property owner (by a hose) under an informal agreement for potable purposes. The property does not have a permanent/conventional water system. An aerial view of the subject, with the approximate boundaries of the subject site outlined in red, is provided on the following page. Further details of the subject site are as follows: Location: The subject site is located along the easterly side of Toandos Road, westerly of Coyle Road, in the Quilcene- Dabob area of unincorporated Jefferson County,Washington. Municipal Jurisdiction: Jefferson County. Address: 1125 Toandos Road Quilcene, Washington 98376 Access: The subject site is accessed by way of a driveway extending off of Toandos Road, a private, gated road extending southwesterly off of Coyle Road. The gate is operated by a keypad system. The road is gravel-surfaced but in good condition and appears to be adequately maintained. Site Area: The subject site is comprised of one assessor's parcel (APN 701153003). According to Jefferson County Assessor's records, the site contains an area of 6.38 acres. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 7 SH&H File 16344-25 Chad C.Johnson,'VIAL RESTRICTED APPRAISAL REPORT ni ^ 4 ! p ,. N , se - t k 10 T� 0" .:WA 1 ,41: ors ar liT; r • r s ....a. . * ,,, if' 4 0* 4 Iiii. ,,0 yy�. • xx ,P. �r -dat ega .''Ar^ -,--; 'a,« - 'N- _ ,Y 4; .i,,,,v-*f.,*.-..".:' ,.-....' ,k,F,'-L 1„:''''':.,rI rti"I -.r1--A.*-#:r,.1..1w:.,v.,i.,T,_4..,rL,0..+.7..,....,,.,.;4.,..,.,_,%;,.,.,*.,.....4.....1,.,"'„—„,,„,,,,.'_•.:.,_..ff::4.-4 v:.:a.r.,v,„''"°v..i.....,.,.iI,i..A.!ii._.i.. n"?j—:..iti is ,,,,i.,e,.,i v:.i.rI. 1 4L: .,,..1...1,,0.c.,..,.,r-o*,7.-4o-,.r,.f.,,..,:,4....1i7- Yi • r l ae t*7ir..1..,.,,p......H;..4. ,A..., ::.'-.,.,a.,.,...r,. p ..aat # 4 V 1" k4 i 3k Y' ' fi x [ _ .00$1, � r, a. �, 40 ,..1i, vriii,74040., :4„....„ J►. Ht 1.all Q#Yh _ •% R } : ., , V., AERIAL VIEW OF SUBJECT SITE SUBJECT PROPERTY OUTLINED IN RED HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 8 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Shape: Generally rectangular/slightly irregular Utilities: Electrical and telephone service are available to the site. Well and septic systems would be necessary for conventional homesite development. While the property has a septic system adjacent to the cabin, no permits were obtained when it was installed and the legal ability to continue to utilize this system is unknown and speculative to assume. Topography and Coverage: The site contains a combination of sloped and level topography. A topographic map obtained from the Jefferson County GIS mapping system is presented on the following page. Coverage consist primarily mixed conifer species, along with other areas of brush and grasses. Wetlands: I was not provided with any reports or studies relative to wetlands delineation for the subject property. Based on the National Wetlands Inventory map provided by the U.S. Fish and Wildlife Service and the Jefferson County GIS mapping system,there do not appear to be any wetlands on the subject site. Flood Plain: According to Flood Insurance Rate Map Number 5303 1C0910C, dated June 7, 2019, the subject property is located outside of any flood zones. Soils: Soils reports/studies for the subject site were not available. Instead, data from the United States Department of Agriculture (USDA) Natural Resources Conservation Service mapping system is utilized. The subject property is primarily composed of Sinclair gravelly sandy loam, 0 to 15 percent slopes (SnC). The Sinclair series consists of moderately well drained soils that formed in glacial till on glacial terraces. Vegetation is mainly Douglas fir, western redcedar, red alder, willow, rhododendron, and salal. Most of the acreage of this soil is used for the production of trees, small ranches, and rural homesites. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 9 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT 52 C''''''\\..,..- �0 r E Twana .', !. „y�- i t t ,t t i P # 1 . 'I \ ' ' s i ",...*.s.‘ . *I ' i i. \ ,Q c.f, 1; w'�.•,- `mot $ - E ::,,,,,,::: ' /1� . i: { f! ^""`. q f'1 J`� i J — 4 f % ty ,,,, c\ ' . . —---..— .--,,/,---- ‘ , ,,P"\ '''N ' ale 4 ate �� r_ ��� f'i ! § ? ! F[ 1) ' , ! i y TOPOGRAPHY MAP SUBJECT PROPERTY OUTLINED IN RED HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 10 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Environmental Issues: An environmental report was not provided. It is noted that there are some areas of debris on the subject property, including an old trailer,vehicle and general debris. I am not aware of any adverse environmental issues that would impact the highest and best use of the subject property. Easements/ Encroachments: A title report relevant to the subject property was provided. There do not appear to be any easements encumbering the subject property that would adversely impact the highest and best use of the site. Surrounding Uses: Surrounding uses in the vicinity of the subject property includes residential uses on larger acreage properties and sites that are managed for the commercial harvest of timber. Views: The site has territorial views. ZONING The subject property consists of one Jefferson County assessor's parcel(701153003). The zoning for the subject property is Rural Residential 5 (RR-5), per the Jefferson County Code. The purpose of this district is to "Allow for continued residential development in areas of Jefferson County consisting of relatively high-density pre-existing patterns of development, along the county's coastal areas, and within areas within or adjacent to rural centers and rural crossroads. In addition, this district seeks to support and foster Jefferson County's existing rural residential landscape and character by restricting new land divisions to a base density of one unit per five acres. " This zoning designation allows for a base density of one dwelling unit per five acres. Outright permitted uses include,but are not limited to, single-family residences, duplexes, home businesses, bed and breakfast residences, mineral extraction activities, parks and playfields,recreational facilities, and aquaculture activities and uses. The subject property contains a reported area of 6.38 acres. The subject is improved with a small cabin and carport. While this is a legal use of the subject site, more permanent/conventional residential development would likely require a well be installed and that the existing septic either be approved by Jefferson County (the outcome of which would be speculative to assume) or a new system installed. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 11 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT TAXES AND ASSESSMENTS The subject property is carried on the Jefferson County Tax and Assessment roll under one assessor's parcel number. Tax and assessment information for the subject property is summarized in the chart below. Land Improve. Total 2025 Parcel Number Value Value Value Taxes 701153003 $105,644 $18,613 $124,257 $1,016.62 The 2025 taxes are based on the 2024 assessed values and result in an amount of$1,016.62 as shown in the above chart. Experience has shown that the assessed value of a property is often an unreliable indicator of market value,despite the assessor's mandate to assess all properties at 100% of market value. This appears to be the case with the subject as the assessed value is lower than the appraised value herein. According to Jefferson County Assessor records, the taxes for the subject are paid current. IMPROVEMENTS DESCRIPTION The subject is improved with a cabin and carport structure. The structure is of wood frame construction and was built in 1999. The enclosed cabin contains one room and has a total area of 168 square feet, according to measurements taken during the physical observation. The interior is sparsely finished and has electrical service; however, the site does not contain a well nor access to public water, nor is there an approved septic system. The carport is adjacent to the cabin and contains an area of 126 square feet. The site is further improved with a rainwater catchment system, as well as a storage shed containing 120 square feet. The structures are overall in average condition. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 12 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT HIGHEST AND BEST USE "As Though Vacant" Considering the limited allowed legal uses according to zoning, as well as the physical characteristics of the site,the highest and best use of the property"as though vacant"is for development of the site with one single-family residence. "As Improved" The subject is improved with a small cabin and carport structure; however, there is no well or approved septic system in place. The structure has utilitarian value to the site for recreational use. Therefore, the highest and best use as improved is for continued use of the existing recreational improvement in the interim, with the potential for single-family residential development in the future, as dictated by demand. PROPERTY VALUATION The subject site is a rural residential site and is improved with a cabin/carport structure. Although all three approaches to value were considered,based on the characteristics of the subject property, the only applicable and relevant approach to value is the Sales Comparison Approach. The Sales Comparison Approach is considered to provide sufficient data to arrive at a reasonable and supportable value conclusion for the subject property. SALES COMPARISON APPROACH The Sales Comparison Approach involves the process of comparing improved properties which have recently sold, with the subject property, noting and adjusting for similarities and dissimilarities between the property being appraised and the sale comparables. This approach to value considers a physical unit of comparison, the price per site in this case. Within this approach, I will evaluate comparable sales data to formulate a value estimate for the subject property. The research for comparable sales focused on rural residential properties with similar use potential as the subject. The search first focused on the sale of rural properties that contained outbuildings and/or small residential/cabin structures. Two sales were identified (L-2 and L-4). The search was then expanded to include unimproved properties with similar development potential as the subject. To that end,two additional closed sales were identified(L-3 and L-5), as well as one current listing(L-1). HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 13 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT All of the comparables are located within the subject's general neighborhood of Quilcene, and all of the closed sales have occurred within the past six months. A total of four closed comparable sales and one current listing were selected for the analysis of the subject property. The exhibit below summarizes the comparables utilized, with a location map shown on the page after the chart. Following the map, more detailed information for the comparables is presented,together with a parcel map. In this instance, the most appropriate unit of comparison is the price per site. SALE COMPARABLES Size Sale Location Sale Date (Acres) Sales Price L-1 11573 Coyle Road Listing 4.67 $89,000 Quilcene L-2 82 Camelot Road Jul-24 7.10 $120,000 Quilcene L-3 24X0(Munn Road Oct-24 5.51 $135,000 Quilcene L-4 771 Lakenes Road Nov-24 5.05 $150,000 Quilcene L-5 4 Mt. Walker View Drive Jan-25 4.97 $150,000 Quilcene HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 14 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Mat and - —j e Comp 3 Dabo• Bridq ��Icene Subject Camp Discovery V! Bees Mill `c .. Comp 5 Banger Base SEAL ROCK Comp 1 Coyle rlympic View COMPARABLE LAND SALES MAP HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 15 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Listing No. 1 Property Identification Record ID 15925 Property Type Residential Address 11573 Coyle Road,Quilcene,Jefferson County,Washington 98376 Location Toandos Peninsula Assessor's Parcel Number 601222007 Instrument Statutory Warranty Deed Sale Data Grantor Brian L. Spain Survey Date February 24,2025 Property Rights Fee Simple Verification Tim Horvath, listing agent(360)531-0980 Listing Price $89,000 Land Data Zoning RRS,Jefferson County Topography Sloped&forested Utilities Electric in street; approved septic design Shape Rectangular Land Size Information Gross Land Size 4.670 Acres or 203,425 SF Indicators List Price/Site $89,000 Remarks This is the listing of a rural residential site located along Coyle Road, in the Toandos Peninsula area outside of Quilcene, in unincorporated Jefferson County. The site contains 4.67 acres, is sloped and heavily forested and is rectangular in shape. There is electrical service available in the street. There is an approved 5-bedroom septic permit; however, installation of the septic system, along with a well, are required for development. A GeoTech study has been completed for the property and has identified adequate buildable space for a single-family residential development. The property has been listed for sale multiple times over the past few years. According to the listing agent,the buildable area of the site is greatly diminished due to significant sloping;however, a small portion is buildable. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 16 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT k it, 40.- i 7., ,S..4•:•-f;i:.4,' iiimp'...., 7 • ,,.... ',,„...,. ..4 -0, . • ' • L , , .. 31!'**- *, "tt..-.•f;T , - -..,'t '''142**'. ... A. � #`.sy ce'" +4. - � u:- A k4 a. +' ..tom- a . f + t -' *# gr ,`► .' d= a ; � ` + ' t _ +,fir �r 7t ,# Iv.O' v .# of v"' / L e .; iir tYr". TOANDOS PENINSULA �� '' v€� ",. g ;JO.i 4.-4#1. . rid" , 4 ♦ t w�rj►ar�.Y. a ,. , .� ,. 9 'a y.y Ai • ' q ' Zi'''':::.* "V ' .'"' '‘..1V ! . ' ' . ` '.- • .... -.00 % 0 i ; ' 0 , P . � '. . ' . 11573 COYLE ROAD HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 17 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Sale No. 2 Property Identification Record ID 15926 Property Type Residential Address 82 Camelot Road,Quilcene, Jefferson County,Washington 98376 Location Easterly of SR 101 Assessor's Parcel Number 702131023 Instrument Statutory Warranty Deed Sale Data Grantor Steven&Bernita Moul Grantee David Metoyer&Anthony Metoyer Sale Date July 24,2024 Auditor's File Number 667019 Property Rights Fee Simple Financing Cash Sale History Sold 11/2020 for$75,000 Verification Kalan Hatton,selling agent; 360-531-4419 Sale Price $120,000 Land Data Zoning RR5,Jefferson County Topography Sloped&heavily forested Utilities See remarks Shape Triangular Land Size Information Gross Land Size 7.100 Acres or 309,276 SF Front Footage 980 ft Center Road Indicators Sale Price/Site $120,000 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 18 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Sale No.2 (Cont.) Remarks This is the July 2024 sale of a rural residential site located in the Quilcene area of unincorporated Jefferson County. There is access to the site by way of Camelot Road, a gravel access easement extending northerly off of Center Road,as well as a gated driveway extending off of Center Road. The triangular site has approximately 980 feet of frontage along Center Road. The site contains 7.1 acres and is sloped and heavily forested. Electrical service is available in Center Road. There is a low producing well at the top end of the allowable chloride level. Septic is needed for development. The site is improved with an enclosed metal shed/garage containing 300 square feet with a gravel floor and a seven-foot high garage door. There is also an open walled carport. According to the selling broker,both outbuildings are in average condition. The site was listed for sale for $135,000 and was on the market for 257 days before selling for $120,000,or 89%of its list price. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 19 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT ► } ,« ; r .- /,sic: # .r it ♦ fi � } .4, yam, Y� r 1144 • 'a 31°1 .V. t :.- " j�wy.� , ''' ♦ „ ' ram. ; i 4 - ,., ,,,.. , :. . . o.,,5, .,,„ ....... ., ,,,,,t1....„: ...- .„. . . ..,.. , iii ft , ,. j', „P.. tta,` Ntret �'F it p:: •wA d '.. f EASTERLY OF SR 101 ' • ' arc 's .. . ,'4 1St 1.. r+ ns 82 CAMELOT ROAD HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 20 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Sale No. 3 Property Identification Record ID 15927 Property Type Residential Address 24XX Munn Road,Quilcene,Jefferson County,Washington 98376 Location Lake Leland area Assessor's Parcel Number 802261019 Instrument Statutory Warranty Deed Sale Data Grantor Sara Brown Grantee Virginia Navrides Sale Date October 22,2024 Auditor's File Number 668485 Property Rights Fee Simple Financing Seller financed at typical terms Verification Sher Kirkpatrick, selling agent; 360-909-8636 Sale Price $135,000 Land Data Zoning RR 20,Jefferson County Topography Portions steeply sloped&forested Utilities Electric in the street Shape Rectangular Land Size Information Gross Land Size 5.510 Acres or 240,016 SF Indicators Sale Price/Site $135,000 Remarks This is the October 2024 sale of a rural residential site located near Lake Leland, in the Quilcene area of unincorporated Jefferson County. The site contains 5.51 acres. The topography is a combination of steeply sloped and level site area. It is heavily forested;however,there is reportedly no merchantable timber. Electrical service is available at the property line and well and septic are needed for development. There is a clear-cut dirt road extending from Munn Road to a buildable area. The property was listed for$135,000 and was on the market for 85 days before selling it for its full list price. According to the selling agent, there was nothing atypical about the property or transaction,which was seller financed,which is common in the area. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 21 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT - •\'•;;;,, '4- ...',..f1, ,,,,,,,„,,,A,:o•••:•,ji,...vi, v, , - - r:... ,..k:t•-;:t. .:- tAi•, .,..• 4# -,.•il..4,1„ , 4.-...:5,,c.• ,:4 ...X.$,.. ,,..a.4. 1 ..:::.::, •',..,. ,:.,k,", f,, ,,474A .1Stkityg..Stio,;,, re.t.10„1..A.t.lii, :' . - *.sue' -PP-1.,.... . ' ,r 1. -. .!', +�-,. .�1 ,. b y x+ - j} , ,j 1i yx' r1Y 41 rY 2'.E. nlf ;"`esVi.`..t1 {fix „ht�! , ,."� • .,,,,,, , , 4 , 4. —, 4 i•1 '. '... ". ., c•: ' y .4. ' `..,,, 3, ay¢,, .Y • , , .- c- may{ { -1--,'--k"...,,4-,:, { <ti y .i n}y .a H..°-iCt -,,4''."1.A 4fr"'.-•-,. '. tom, .ac • y� �- s 414. LAKE LELAND AREA 1 M ,. i. x iii • 4 R..e.. % et a "' ' 24XX MUNN ROAD HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 22 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Sale No.4 Property Identification Record ID 15928 Property Type Residential Address 771 Lakenes Road,Quilcene,Jefferson County,Washington 98376 Location Lords Lake area Assessor's Parcel Number 702121003 Instrument Statutory Warranty Deed Sale Data Grantor Peter L. Tennigkeit Grantee Andrew&Kimberly Luly Sale Date November 06,2024 Auditor's File Number 668694 Property Rights Fee Simple Verification Jenn Forest, selling agent; 360-316-1147 Sale Price $150,000 Land Data Zoning RR5,Jefferson County Topography Sloped upward SW to NE,forested Utilities See remarks Shape Rectangular Land Size Information Gross Land Size 5.050 Acres or 219,978 SF Indicators Sale Price/Site $150,000 Remarks This is the November 2024 sale of a rural residential site located in the Lords Lake area, off of Lakenes Road, in the Quilcene area of unincorporated Jefferson County. The site contains 5.05 acres and has a view of the Olympic Mountains. The topography is sloped upward in a southwesterly to a northeasterly direction, with adequate level site area for development. It is forested. Electrical service is available a few parcels down Lakenes Road. Septic and well are needed for development. The site is improved with an unpermitted tiny home in average/good, newer condition. The tiny home contains a kitchenette and loft sleeping area. There is a solar power system, a composting toilet and a rainwater catchment system in place. The site is improved with multiple smaller outbuildings used for storage and small animal husbandry. The property was listed for$185,000 and sold for$150,000 after being on the market for 67 days. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 23 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT '' -4 im t";7. i.:ilt:'7P''...'k''''' 1:14 .j. ,l';'''''''t 4,...,t.i:44:3.1':s,"!:Al.k.'!: ':'J'''?' ' -4-4..,i* ' 1.i ire,. ;itt , ,, 1.. .b, . it iitiFt„: 14.4„...*,;;,,,,t, 0.6:.. , .y „. - ,- ''')$! �" Tk 'y � y ]�S 1 go 3f ... rC, Y+ 1^. t t a .I' ti.,. .4.: it.,44pie r , .. :, i . . -' vl' ,i, .14.,r ,,... . r , 114,, *,,,,,*; . '..,:tf ' ' •Yilit' ' ,71:., 8 ''...' . ,.,,..,10r '17, ' ' ''', eC.' AI - ' `,, '''.4 rit ' ,,1, ',"' '.:-' 4. . .. ..,...4 _. Av. . ' a 4 P .. i� 'ice` it r :Y a .�sf `a'aaF .[ .... ,... . is ' y Y"' 't 'yf S t� � 14% Yam. f4F 4. 44..4 _ ..., .....,...�++++F+:FFF � � � �� "*-A li‘• ' `'..; ,,tt,—*1., *(''f i,r.w it'.M 41..'75 4i1444.. 3 , 4 tiA., Nt 4004, u' LORDS LAKE AREA --":.,,,,,,;,",:;:-.•.5'•- 'i ' 't ' , i, V , _" ` t. 1 y A ' � � *'" 771 LAKENES ROAD HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 24 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Land Sale No. 5 Property Identification Record ID 15931 Property Type Residential Address Mt Walker View Drive,Quilcene,Jefferson County, Washington 98376 Location Toandos Peninsula Assessor's Parcel Number 601225012 Instrument Statutory Warranty Deed Sale Data Grantor Jason& Cheryl Wright Grantee Keith Mast,Jacob&Emily Moushey Sale Date January 25,2025 Auditor's File Number 669834 Property Rights Fee Simple Financing Typical Verification Tim Horvath, listing agent(360)531-0980 Sale Price $150,000 Land Data Zoning RRS,Jefferson County Topography Gently sloped&forested Utilities Electric in street;well& septic needed Shape Rectangular Land Size Information Gross Land Size 4.970 Acres or 216,493 SF Indicators Sale Price/Site $150,000 Remarks This is the January 2025 sale of a rural residential site located in the Mt Walker View subdivision. The property is located at the end of Mt. Walker View Drive (Starry Night Place), which is identified on a plat map as a small, cul-de-sac subdivision. The site is located on the Toandos Peninsula,outside of the Quilcene area,in unincorporated Jefferson County. The site contains 4.97 acres and is gently sloped and forested. There is a view of Mt. Walker. Electrical service is available in the street,and septic and well are needed for development. The property was listed for$159,950 and sold for$150,000 after being on the market for 170 days. The site has an approved Site Development Review in place. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 25 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT - „: . F , ,, , •?„,..,...„...„,...,,,:-.,., ..,„,, ,r ,,•-••• .. ..,, .40. 4,, * .,,,...:-i...,,e,,,,#. ...mow. sz,-„..,:igi.„,ii,g,be. ,, --„„„:"."4--,,*, . k-:$4,., Y . f O A� Z W -rel... . i • 3" ., J`^tom ' _ i'�'of c ", t ,- <7,0"..;1:4;..^...‘--,*... ;.,„ ,, i ...Z. ,,, o 0 , A _. . ,.....e.,..„. OP pit ...„;,. ,i. L. 7„:14 -1 rat. .,„1,,,4.'"1"4. -1.140 ierz.- :-:.,f ,44.."-.47, -.4,-, ' .., 2 '' V•4 yc .*fit.' :.'N.,----',.,..e, ,.•••,. .....„,,,,....t: 'T, 4.'i , ..."',"'` ,1,, ,fik,...t,4.s,. . 4 , At , , , - ,,,,.... ,, ,, ... .-Ttoe4,,,s, ,- '4.* ' , ,- , ..:. -,.., '-,,',,.I -0 '11 ' -114 crirda TOANDOS PENINSULA , ,„... ';- (-- ..,,,,. . . ,,,y, „.._ . I i .. t, s i i , i .t.,,, • / ,' I s I MT WALKER VIEW DRIVE Page 26 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Analysis of Land Saks A basic principle in the valuation of real estate is that no two properties are identical,which means that adjustments are necessary to reflect the various differences of the properties being considered. An adjustment process is applied to the comparables,with an adjustment chart presented following the discussion of the comparables. The adjustment process allows the appraiser to consider the thought process often followed by buyers and sellers in comparing different properties. Within the discussion of each sale detailed herein, the sales' characteristics are noted and compared to the subject, resulting in conclusions requiring adjustments to the indicated unit prices of the comparables. Qualitative adjustments are applied, either positive or negative, to account for physical differences between the comparables and the subject property. In this instance, the price per site has been utilized for analysis purposes. Quantitative Adjustments The property rights conveyed, financing, conditions of sale, and buyer expenditures/other do not require any quantitative adjustments for the comparables. Market Conditions In analyzing the influence of the market conditions at the time of sale of the comparables in relation to the market conditions as of the date of appraisal,the key factor is the passage of time. More specifically, the question to be answered in its simplest form is whether there is any trend in general prices through time. The date of sale for the comparables ranges from July 2024 to January 2025, as well as a current listing. All of the closed sales have occurred within the last six months,with one of the sales occurring a few weeks before the date of inspection for the subject. The rural residential market in Jefferson County has historically exhibited gradual signs of growth. Therefore,due to the relatively recent dates of sale, no market conditions adjustments are applied to the comparables. After quantitative adjustments, the comparables indicate a range on a price per site basis from$89,000 to $150,000 per site. The next step is to consider the appropriate qualitative adjustments to apply to the comparables for the analysis of the subject. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 27 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Qualitative Adjustments The individual comparable sales are now compared to the subject as it relates to qualitative adjustments, including Location, Site Size (Acres), Site Utility, Utilities in Place, and Improvements. An adjustment grid has been prepared, as shown on the following page, simulating the thought process a prudent and knowledgeable purchaser might use if involved in comparing the comparables to the subject property. This chart is presented as an aid in depicting the positive and negative influences that impact the market value of properties in this market segment. Location The subject is located on the Toandos Peninsula, off of Toandos Road, which is a private, gated road finished with gravel and dirt. L-1 and L-5 are also located on the Toandos Peninsula, but are accessed off of Coyle Road, which is a finished and county-maintained arterial. Additionally,L-5 is located in a subdivision plat. These comparables are therefore adjusted downward for location. L-2 contains a considerable amount of frontage along a higher trafficked arterial (Center Road), which is a less desirable attribute for a rural residential property. Thus,this comparable is adjusted upward for location. The remaining sales are similar enough when compared to the subject in location that no adjustment is needed for this factor. Site Size The subject contains 6.38 acres. All of the comparables are similar enough in size to forgo an adjustment. Site Utility The subject property has a combination of sloped and level topography. L-1 and L-2 have more sloped topography and are adjusted upward, with L-1 reported to have a very confined potential homesite due to topography. Thus,upward adjustments are appropriate for this factor,with a stronger adjustment applied to L-1. L-5 has less areas of sloping than the subject and is adjusted downward. The remaining comparables are generally similar to the subject in site utility and no adjustments are applied. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 28 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Comparable Number L-1 L-2 L-3 L-4 L-5 Sale Price n/a $89,000 $120,000 $135,000 $150,000 $150,000 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjustment $0 $0 $0 $0 $0 Adjusted Price $89,000 $120,000 $135,000 $150,000 $150,000 Financing Cash to Seller Cash to Seller Cash to Seller Cash to Seller Cash to Seller Cash to Seller Adjustment $0 $0 $0 $0 $0 Adjusted Price $89,000 $120,000 $135,000 $150,000 $150,000 Conditions of Sale Arms Length Arms Length Arms Length Arms Length Arms Length Arms Length Adjustment $0 $0 $0 $0 $0 Adjusted Price $89,000 $120,000 $135,000 $150,000 $150,000 Buyer Expenditures/Other None None None None None Adjustment $0 $0 $0 $0 $0 Adjusted Price $89,000 $120,000 $135,000 $150,000 $150,000 Date of Sale Feb-25 Listing Jul-24 Oct-24 Nov-24 Jan-25 Months Since Sale 0 6 3 3 0 Adjustment 0.00% 0.00% 0.00% 0.00% 0.00% Adjusted Price $89,000 $120,000 $135,000 $150,000 $150,000 Adjusted Price/Site $89,000 $120,000 $135,000 $150,000 $150,000 Qualitative Adjustments Location Superior Inferior Similar Similar Superior Adjustment - + - Size(Acres) 6.38 4.67 7.10 5.51 5.05 4.97 Adjustment Site Utility Inferior Inferior Similar Similar Superior Adjustment ++ + - Utilities in Place Superior Superior Similar Inferior Similar Adjustment - - + Improvements Inferior Similar Inferior Superior Inferior Adjustment + + -- + Total Adjustment Upward Upward Upward Downward Downward Utilities in Place The subject has electrical service,but a well and septic system are needed for conventional residential development. Although the subject currently has a septic system in place, it was not approved at the time of installation and the ability to legally utilize this infrastructure is speculative. Therefore, the property is essentially viewed as not having a septic system for analysis purposes. The historical functionality of the existing system, however, suggests that the site's soils are capable of supporting such a system. L-1 also has electrical service and there is an approved septic design in place. This comparable is adjusted downward for utilities. L-2 has electrical service as well as a drilled well and is also adjusted downward for this factor. L-4 does not have electrical service and is adjusted upward. L-3 and L-5 are similar to the subject in this regard and no adjustments are needed. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 29 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Improvements The subject is improved with a small cabin/carport structure, as well as a storage shed. L- 4 has a newer tiny home in average/good condition; thus, a strong downward adjustment is applied to this comparable. L-2 is improved with some outbuildings;thus,no adjustment is applied to this comparable. L-1, L-3 and L-5 do not contain improvements or outbuildings. These comparables are adjusted upward for this factor. Conclusion The five comparables indicate a range from $89,000 to$150,000 per site. Predicated upon the previous discussion and taking into consideration the location and quality of the subject property, a value higher than L-3 ($135,000/site), but lower than L-4 ($150,000) and L-5 ($150,000/site)is reasonable. Based on my analysis and discussion herein,a value estimate of $145,000, as bracketed and supported by the central tendencies of L-3 and L-4, is concluded for subject property, resulting in an overall value, as follows: • rVALUE BY THE SALES COMPARISON APPROACH Acres Value 6.38 $145,000 Predicated upon the previous analysis, the opinion of value for the subject property by the Sales Comparison Approach is as follows: Market Value Indication by the Sales Comparison Approach, as of February 20, 2025: $145,000 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 30 SH&H File 16344-25 Chad C.Johnson,MAI RESTRICTED APPRAISAL REPORT Reconciliation Only the Sales Comparison Approach is utilized for this appraisal assignment. The Sales Comparison Approach allows for the comparison of similar type properties to the subject, noting for similarities and differences between the comparables and the subject property. This approach contributes a credible value conclusion and is the most (and only) relevant approach for this type of property. Based upon the preceding data and discussions, the "as is" market value of the subject property, as of the date of inspection, February 20, 2025, is estimated at: ONE HUNDRED FORTY-FIVE THOUSAND DOLLARS $145,000 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 31 SH&H File 16344-25 Chad C.Johnson,MAI CERTIFICATION I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and represent my personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and have no personal interest with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. I have made personal inspections of the property that is the subject of this report. 8 Katherine E. Tiffany, License Number 1002112,provided significant real property appraisal assistance to the person signing this report relevant to the subject research, market research, comparable confirmation, analysis and/or report preparation. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or an approval of a loan. HOUGH PROPERTI, 1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 32 SH&H File 16344-25 Chad C.Johnson,MAI CERTIFICATION 12. I am competent and qualified to perform the appraisal assignment. 13. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 14. As of the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute. Chad C. Johnson, AI State of Washington Certification 1101662 HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 33 SH&H File 16344-25 Chad C.Johnson,MAI QUALIFICATIONS CHAD C.JOHNSON,MAI GENERAL EDUCATION BA,Business Administration,Option in Real Estate,Washington State University Relevant Coursework Real Estate Principles Real Estate Finance Real Estate Valuation Real Estate Investment Real Estate Law CERTIFICATIONS Washington State Certified General Real Estate Appraiser Certification 1101662 Issue Date: March 31,2005 PROFESSIONAL DESIGNATION MAI,Appraisal Institute PROFESSIONAL EXPERIENCE . Real Estate Appraiser and Consultant SH&H Valuation and Consulting(formerly Strickland,Heischman&Hoss, Inc.) June 2001 to Present SELECTED APPRAISAL INSTITUTE COURSES Course 310,Basic Income Capitalization(February 2002) Course 320,General Applications(December 2004) Course 410, Standards of Professional Practice, Part A(September 2001) Course 420, Standards of Professional Practice, Part B(September 2001) Course 510,Advanced Income Capitalization(December 2002) Course 520, Highest&Best Use and Market Analysis(September 2006) Course 530,Advanced Sales Comparison and Cost Approaches(September 2008) Course 540, Report Writing and Valuation Analysis(August 2003) Course 550,Advanced Applications(January 2009) Uniform Appraisal Standards for Federal Land Acquisitions—Practical Applications(May 2017) Eminent Domain and Condemnation(August 2018) Fundamentals of the Uniform Appraisal Standards for Federal Land Acquisitions(October 2020) Various Continuing Education Courses and Seminars HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 34 SH&H File 16344-25 Chad C.Johnson,MAI QUALIFICATIONS PARTIAL LIST OF PROPERTY TYPES APPRAISED Apartments Industrial Subdivisions Agricultural Properties Institutional Properties Aquaculture Properties Leasehold Interests Automobile Dealerships Medical Offices Automobile Repair Facilities Mineral Extraction Operations Banks Mixed-Use Properties Bowling Alleys Natatoriums Business Parks Nurseries Cardlock Fueling Facilities Private Schools Carwashes Professional Offices Churches Recreational Properties Commercial Land Religious Retreats Commercial Subdivisions Residential Land Condominium Developments Residential Subdivisions Conservation Easements Resource and Forest Land Properties Daycare Centers Restaurants Food Processing Plants Retail Properties Gas Station/Convenience Stores Right-of-Way Acquisitions Golf Courses Self-Storage Facilities Health Clubs Shellfish Processing Plants Hotels/Motels Single-Family Residences Industrial Properties Waterfront Properties APPRAISAL EXPERIENCE IN THE FOLLOWING WASHINGTON COUNTIES Benton County Lewis County Clallam County Mason County Clark County Okanogan County Cowlitz County Pacific County Franklin County Pierce County Grant County San Juan County Grays Harbor County Skagit County Island County Snohomish County Jefferson County Spokane County King County Thurston County Kitsap County Whatcom County Kittitas County Yakima County HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 35 SH&H File 16344-25 Chad C.Johnson,MAI QUALIFICATIONS PARTIAL LIST OF CLIENTS FOR WHICH I HAVE COMPLETED APPRAISALS Pt Security Bank(formerly Anchor Bank) Northwest Watershed Institute Alaska USA Federal Credit Union 0 Bee Credit Union Bank of America Olympia Federal Bank of the Pacific Pierce County Bank of the West Peoples Bank Bank of Washington Port of Silverdale BECU Portage Bank Capitol Land Trust PUD No. 1 of Clallam County Center for Natural Lands Management Puyallup School District Central Kitsap School District Quinault Nation Enterprise Board City of Enumclaw Security State Bank City of Kent Snohomish County City of Tacoma South Whidbey Parks&Recreation District City of University Place Sportsmen's National Land Trust City of Yakima Sunwest Bank Columbia Bank TAPCO Credit Union Commencement Bank Thurston County Community National Bank&Trust Thurston First Bank CUSG/CU Services Group Timberland Bank First Federal Trust for Public Lands Forterra Tukwila School District Grays Harbor County Umpqua Bank Great Peninsula Conservancy UniBank Harborstone Credit Union US Bank Heritage Bank US Department of Agriculture—Forest Service HomeStreet Bank US Department of the Interior(DOI-AVSO) Hood Canal Salmon Enhancement Group Washington Department of Fish and Wildlife Jefferson County Washington Department of Natural Resources Jefferson Land Trust Washington Farm Service Agency Key Bank Washington Parks&Recreation Commission Kitsap Bank Washington Business Bank Kitsap Credit Union Washington Trust Bank Mountain Pacific Bank WCLA Credit Union Native American Bank,NA WSECU Nature Conservancy of Washington Wells Fargo Bank Nisqually Land Trust Wells Fargo Wealth Management North Kitsap School District Whidbey Camano Land Trust North Olympic Land Trust Yakima County Public Services Northwest Christian Credit Union Zions First National Bank Northwest Farm Credit Services Various Attorneys,Accountants&Individuals HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 36 SH&H File 16344-25 Chad C.Johnson,MAI ASSUMPTIONS AND LIMITING CONDITIONS Unless noted otherwise in the body of the report,this appraisal is subject to the following assumptions and limiting conditions. 1. No responsibility is assumed for legal or title considerations. Title to the subject property is marketable and free and clear of all liens,encumbrances,encroachments,easements and restrictions. The property is assumed to be under responsible ownership and competent management and is assumed available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that impact the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that impact the value of the property. 4. Information, public and private, relevant to sale price indications is assumed to be correct. 5. The property is in compliance with all applicable building, environmental,zoning, and other federal, state and local laws, regulations and codes. 6. Information, estimates and opinions contained in the report, obtained from others, including third-party sources,are assumed to be reliable and have not been independently verified and no warranty is given for accuracy. 7. An appraisal is inherently subjective and represents my opinion as to the value of the property appraised. 8. The conclusions stated in my appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 9. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 10. When environmental impact studies are not provided in conjunction with the appraisal, I reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 37 SH&H File 16344-25 Chad C.Johnson,MAI ASSUMPTIONS AND LIMITING CONDITIONS 11. Unless otherwise agreed to in writing, I am not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 12. I have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 13. No opinion is expressed as to the value of subsurface oil,gas or mineral rights,if any,and I have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in my appraisal. 14. I accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability, and civil, mechanical, electrical, structural and other engineering and environmental matters. 15. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 16. Neither all nor any part of the contents of this report(especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the person signing the report. 17. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 38 SH&H File 16344-25 Chad C.Johnson,MAI ASSUMPTIONS AND LIMITING CONDITIONS 18. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 19. No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 20. The current purchasing power of the dollar is the basis for the value stated herein. I have assumed that no extreme fluctuations in economic cycles will occur. 21. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by my analysis will vary from my estimates, and the variations may be material. The Americans with Disabilities Act(ADA)became effective in the 1990s. I have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. I claim no expertise in ADA issues,and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner's financial ability with the cost to cure the non-conforming physical characteristics of a property, a specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 22. No studies have been provided to me indicating the presence or absence of hazardous materials on the subject property or in the improvements, and my valuation is predicated upon the assumption that the subject property is free and clear of any environmental hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property and the person signing the report shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because I am not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 39 SH&H File 16344-25 Chad C.Johnson,MAI ASSUMPTIONS AND LIMITING CONDITIONS 23. The person signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. I am not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 24. The appraisal report and the value conclusion within the appraisal is predicated upon the assumption that the satisfactory completion of construction, repairs or alterations will be performed in a workmanlike manner. 25. It is expressly acknowledged that in any action which may be brought against SH&H Valuation and Consulting,or their respective officers,owners,managers,directors,agents, subcontractors or employees (the "SH&H Valuation and Consulting Parties"), arising out of, relating to, or in any way pertaining to this engagement, the appraisal reports, or any estimates or information contained therein,the"SH&H Valuation and Consulting Parties" shall not be responsible or liable for an incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with gross negligence. It is further acknowledged that the collective liability of the"SH&H Valuation and Consulting Parties" in any such action shall not exceed the fees paid for the preparation of the appraisal report unless the appraisal was fraudulent or prepared with gross negligence. Finally, it is acknowledged that the fees charged herein are in reliance upon the foregoing limitations of liability. 26. SH&H Valuation and Consulting, an independently owned and operated company, has prepared the appraisal for the specific purpose stated elsewhere in the report. The intended use of the appraisal is stated in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless I provide my prior written consent. I expressly reserve the unrestricted right to withhold my consent to your disclosure of the appraisal report(or any part thereof including,without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless my prior written consent is obtained,no third party may rely on the appraisal report (even if their reliance was foreseeable). HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 40 SH&H File 16344-25 Chad C.Johnson,MAI ASSUMPTIONS AND LIMITING CONDITIONS 27. The conclusions contained in this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. SH&H Valuation and Consulting and the undersigned are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While I am of the opinion that my findings are reasonable based on current market conditions, I do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, I assume competent and effective management and marketing for the duration of the projected holding period of this property. 28. Any prospective value estimates presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph,several events may occur that could substantially alter the outcome of my estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders,fire and other physical destruction,changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 29. The value estimate herein is subject to these and to any other assumptions or conditions set forth in the body of this report, but which may have been omitted from this list of Assumptions and Limiting Conditions. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 41 SH&H File 16344-25 Chad C.Johnson,MAI EXTRAORDINARY ASSUMPTIONS AND/OR HYPOTHETICAL CONDITIONS 1. Extraordinary Assumption: "an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions."5 Extraordinary assumptions assume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property,such as market conditions or trends; or about the integrity of data used in analysis. There are no extraordinary'assumptions relevant to this appraisal. 2. Hypothetical Conditions: "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. "6 A hypothetical condition assumes conditions contrary to known facts about physical, legal, or economic characteristics of the subject property;or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in analysis. There are no hypothetical conditions relevant to this appraisal. 5 Uniform Standards of Professional Appraisal Practice, 2024 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C.,p.4. 6 Ibid,p.4. HOUGH PROPERTY,1125 TOANDOS ROAD,QUILCENE,JEFFERSON COUNTY,WA 98376 Page 42 SH&H File 16344-25 Chad C.Johnson,MAI ADDENDA /`.1 4..,' pf'. STATE OF WASHINGTON ":; t ` r x - ,SN I;N F4f'NG SI.�E�EPIuiV JV DEPARTMENT OF LICENSING BUSINESS AND PROFESSIONS DIVISION C �s LICENSING ft; ''' .ky�ises auy� THIS CERTIFIES THE PERSON OR BUSINESS NAMED BELOW IS AUTHORIZED AS A 71 1' �4; CERTIFIED GENERAL REAL ESTATE APPRAISER I,! SUPERVISOR 1` `' CHAD CARTER JOHNSON th 'C; tt ,Ifr617 , 1101662 03/31/2005 12/15/2026 - License Number Issue Date Expiation Date t s Li-____. arcus Jasper,Director or Jt; D' 1R!' American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) Fist American ALTA COMMITMENT FOR TITLE INSURANCE ns1'C Mk Insurance Company issued by FIRST AMERICAN TITLE INSURANCE COMPANY NOTICE IMPORTANT—READ CAREFULLY: THIS COMMITMENT IS AN OFFER TO ISSUE ONE OR MORE TITLE INSURANCE POLICIES. ALL CLAIMS OR REMEDIES SOUGHT AGAINST THE COMPANY INVOLVING THE CONTENT OF THIS COMMITMENT OR THE POLICY MUST BE BASED SOLELY IN CONTRACT. THIS COMMITMENT IS NOT AN ABSTRACT OF TITLE, REPORT OF THE CONDITION OF TITLE, LEGAL OPINION, OPINION OF TITLE, OR OTHER REPRESENTATION OF THE STATUS OF TITLE. THE PROCEDURES USED BY THE COMPANY TO DETERMINE INSURABILITY OF THE TITLE, INCLUDING ANY SEARCH AND EXAMINATION, ARE PROPRIETARY TO THE COMPANY,WERE PERFORMED SOLELY FOR THE BENEFIT OF THE COMPANY,AND CREATE NO EXTRACONTRACTUAL LIABILITY TO ANY PERSON,INCLUDING A PROPOSED INSURED. THE COMPANY'S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUE A POLICY TO A PROPOSED INSURED IDENTIFIED IN SCHEDULE A IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THIS COMMITMENT. THE COMPANY HAS NO LIABILITY OR OBLIGATION INVOLVING THE CONTENT OF THIS COMMITMENT TO ANY OTHER PERSON. COMMITMENT TO ISSUE POLICY Subject to the Notice; Schedule B, Part I — Requirements; Schedule B, Part II —Exceptions; and the Commitment Conditions. First American Title Insurance Company,a Nebraska corporation(the"Company"),commits to issue the Policy according to the terms and provisions of this Commitment. This Commitment is effective as of the Commitment Date shown in Schedule A for each Policy described in Schedule A,only when the Company has entered in Schedule A both the specified dollar amount as the Proposed Amount of Insurance and the name of the Proposed Insured. If all of the Schedule B, Part I — Requirements have not been met within 180 days after the Commitment Date, this Commitment terminates and the Company's liability and obligation end. COMMITMENT CONDITIONS 1. DEFINITIONS a. "Discriminatory Covenant":Any covenant,condition,restriction,or limitation that is unenforceable under applicable law because it illegally discriminates against a class of individuals based on personal characteristics such as race, color, religion,sex,sexual orientation,gender identity,familial status,disability,national origin,or other legally protected class. b. "Knowledge"or"Known":Actual knowledge or actual notice,but not constructive notice imparted by the Public Records. c. "Land": The land described in Item 5 of Schedule A and improvements located on that land that by State law constitute real property. The term"Land"does not include any property beyond that described in Schedule A,nor any right, title, interest,estate,or easement in any abutting street,road,avenue,alley,lane,right-of-way,body of water,or waterway,but does not modify or limit the extent that a right of access to and from the Land is to be insured by the Policy. d. "Mortgage":A mortgage,deed of trust,trust deed,security deed,or other real property security instrument,including one evidenced by electronic means authorized by law. e. "Policy":Each contract of title insurance,in a form adopted by the American Land Title Association,issued or to be issued by the Company pursuant to this Commitment. f. "Proposed Amount of Insurance": Each dollar amount specified in Schedule A as the Proposed Amount of Insurance of each Policy to be issued pursuant to this Commitment. g. "Proposed Insured":Each person identified in Schedule A as the Proposed Insured of each Policy to be issued pursuant to this Commitment. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B,Part I—Requirements;and Schedule B, Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. AsSOC,A Reprinted under license from the American Land Title Association. Page 1 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) h. "Public Records":The recording or filing system established under State statutes in effect at the Commitment Date under which a document must be recorded or filed to impart constructive notice of matters relating to the Title to a purchaser for value without Knowledge.The term"Public Records"does not include any other recording or filing system,including any pertaining to environmental remediation or protection, planning, permitting, zoning, licensing, building, health, public safety,or national security matters. i. "State":The state or commonwealth of the United States within whose exterior boundaries the Land is located.The term "State"also includes the District of Columbia,the Commonwealth of Puerto Rico,the U.S.Virgin Islands,and Guam. j. "Title":The estate or interest in the Land identified in Item 3 of Schedule A. 2. If all of the Schedule B,Part I—Requirements have not been met within the time period specified in the Commitment to Issue Policy,this Commitment terminates and the Company's liability and obligation end. 3. The Company's liability and obligation is limited by and this Commitment is not valid without: a. the Notice; b. the Commitment to Issue Policy; c. the Commitment Conditions; d. Schedule A; e. Schedule B,Part I—Requirements; f. Schedule B,Part II—Exceptions;and g. a counter-signature by the Company or its issuing agent that may be in electronic form. 4. COMPANY'S RIGHT TO AMEND The Company may amend this Commitment at any time. If the Company amends this Commitment to add a defect, lien, encumbrance, adverse claim,or other matter recorded in the Public Records prior to the Commitment Date,any liability of the Company is limited by Commitment Condition 5.The Company is not liable for any other amendment to this Commitment. 5. LIMITATIONS OF LIABILITY a. The Company's liability under Commitment Condition 4 is limited to the Proposed Insured's actual expense incurred in the interval between the Company's delivery to the Proposed Insured of the Commitment and the delivery of the amended Commitment,resulting from the Proposed Insured's good faith reliance to: i. comply with the Schedule B,Part I—Requirements; ii. eliminate,with the Company's written consent,any Schedule B,Part II—Exceptions;or iii. acquire the Title or create the Mortgage covered by this Commitment. b. The Company is not liable under Commitment Condition 5.a. if the Proposed Insured requested the amendment or had Knowledge of the matter and did not notify the Company about it in writing. c. The Company is only liable under Commitment Condition 4 if the Proposed Insured would not have incurred the expense had the Commitment included the added matter when the Commitment was first delivered to the Proposed Insured. d. The Company's liability does not exceed the lesser of the Proposed Insured's actual expense incurred in good faith and described in Commitment Condition 5.a.or the Proposed Amount of Insurance. e. The Company is not liable for the content of the Transaction Identification Data,if any. f. The Company is not obligated to issue the Policy referred to in this Commitment unless all of the Schedule B, Part I— Requirements have been met to the satisfaction of the Company. g. The Company's liability is further limited by the terms and provisions of the Policy to be issued to the Proposed Insured. 6. LIABILITY OF THE COMPANY MUST BE BASED ON THIS COMMITMENT; CHOICE OF LAW AND CHOICE OF FORUM a. Only a Proposed Insured identified in Schedule A,and no other person,may make a claim under this Commitment. b. Any claim must be based in contract under the State law of the State where the Land is located and is restricted to the terms and provisions of this Commitment. Any litigation or other proceeding brought by the Proposed Insured against the Company must be filed only in a State or federal court having jurisdiction. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part I—Requirements;and Schedule B, Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. ASSOCIATION Reprinted under license from the American Land Title Association. Page 2 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) C. This Commitment, as last revised, is the exclusive and entire agreement between the parties with respect to the subject matter of this Commitment and supersedes all prior commitment negotiations,representations,and proposals of any kind, whether written or oral,express or implied,relating to the subject matter of this Commitment. d. The deletion or modification of any Schedule B, Part II— Exception does not constitute an agreement or obligation to provide coverage beyond the terms and provisions of this Commitment or the Policy. e. Any amendment or endorsement to this Commitment must be in writing and authenticated by a person authorized by the Company. f. When the Policy is issued,all liability and obligation under this Commitment will end and the Company's only liability will be under the Policy. 7. IF THIS COMMITMENT IS ISSUED BY AN ISSUING AGENT The issuing agent is the Company's agent only for the limited purpose of issuing title insurance commitments and policies.The issuing agent is not the Company's agent for closing,settlement,escrow,or any other purpose. 8. PRO-FORMA POLICY The Company may provide,at the request of a Proposed Insured,a pro-forma policy illustrating the coverage that the Company may provide.A pro-forma policy neither reflects the status of Title at the time that the pro-forma policy is delivered to a Proposed Insured,nor is it a commitment to insure. 9. CLAIMS PROCEDURES This Commitment incorporates by reference all Conditions for making a claim in the Policy to be issued to the Proposed Insured. Commitment Condition 9 does not modify the limitations of liability in Commitment Conditions 5 and 6. 10. CLASS ACTION ALL CLAIMS AND DISPUTES ARISING OUT OF OR RELATING TO THIS COMMITMENT, INCLUDING ANY SERVICE OR OTHER MATTER IN CONNECTION WITH ISSUING THIS COMMITMENT, ANY BREACH OF A COMMITMENT PROVISION, OR ANY OTHER CLAIM OR DISPUTE ARISING OUT OF OR RELATING TO THE TRANSACTION GIVING RISE TO THIS COMMITMENT,MUST BE BROUGHT IN AN INDIVIDUAL CAPACITY.NO PARTY MAY SERVE AS PLAINTIFF, CLASS MEMBER, OR PARTICIPANT IN ANY CLASS OR REPRESENTATIVE PROCEEDING. ANY POLICY ISSUED PURSUANT TO THIS COMMITMENT WILL CONTAIN A CLASS ACTION CONDITION. FIRST AMERICAN TITLE INSURANCE COMPANY 1 First American Way,Santa Ana,CA 92707 By: Kenneth D.DeGiorgio,President 611"1"—R,,, By: Lisa W.Cornehl,Secretary This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part I—Requirements;and Schedule B, Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. 111111111111111111 Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. ASiOCIAtIOA Reprinted under license from the American Land Title Association. Page 3 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) Transaction Identification Data,for which the Company assumes no liability as set forth in Commitment Condition 5.e.: Issuing Agent:Horizon Title Group,Inc. Issuing Office: 2424 South Park Avenue,PO Box 598 Port Townsend,WA 98368 Issuing Office's ALTA®Registry ID: 1167581 Loan ID Number: Commitment Number:05-5234-TTJ Issuing Office File Number:05-5234-TTJ Property Address: 1125 Toandos Road,Quilcene,WA 98376 SCHEDULE A 1. Commitment Date: September 16, 2024 8:00 AM 2. Policy to be issued: AMOUNT PREMIUM TAX TOTAL a. 2021 ALTA Owner's $ $0.00 S $0.00 Standard Policy PROPOSED INSURED: Northwest Watershed Institute Inc.,a Washington nonprofit corporation The estate or interest to be insured: fee simple 3. The estate or interest in the Land at the Commitment Date is: fee simple 4. The Title is,at the Commitment Date,vested in: Thomas J.Hough,a single man 5. The Land is described as follows: See Exhibit A attached hereto and made a part hereof. HORIZON TITLE GROUP,INC. FIRST AMERICAN TITLE INSURANCE COMPANY 2424 South Park Avenue,PO Box 598,Port Townsend, 1 First American Way,Santa Ana,CA 92707 WA 98368 Telephone: (360)385-1322 ed by: "€ - Countersigned HOM-ON Title Group By: Kenneth D.DeGiorgio,President (41'"LSZN By: Rochelle Lewis Lisa W. Cornehl,Secretary Horizon Title Group,Inc.,License#603575523 This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part I—Requirements;and Schedule B, Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. 111111111111111111 AME RIcAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. ^siiiclAtlo" Reprinted under license from the American Land Title Association. Page 4 of 9 American Land l itle Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) SCHEDULE B,PART I—Requirements All of the following Requirements must be met: 1. The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land.The Company may then make additional Requirements or Exceptions. 2. Pay the agreed amount for the estate or interest to be insured. 3. Pay the premiums,fees,and charges for the Policy to the Company. 4. Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured,or both,must be properly authorized,executed,delivered,and recorded in the Public Records. Duly authorized and executed Deed from Thomas J.Hough,a single man,to Northwest Watershed Institute Inc.,a Washington nonprofit corporation,to be executed and recorded at closing. 5. Lien of the real estate excise sales tax and surcharge upon any sale of said Land,if unpaid. 6. General Taxes.The first portion$441.77 becomes delinquent after April 30th.The second portion$441.17 becomes delinquent after October 31st. Year:2024 Amount Billed: $882.94 Amount Paid: $882.94 Amount Due: $0.00,plus interest and penalty,if delinquent Tax Account No.: 701 153 003 Assessed value: $110,654.00 PID No.: 17274 7. The Company has been asked to issue a policy(ies)without disclosure of the liability amount.This commitment shall be effective only when the amount of the policy(ies)committed for has been inserted in Schedule"A"hereof.The forthcoming policy must be issued in an amount at least equal to the full value of the estate insured in accordance with our rating schedule on file in the office of the Washington State Insurance Commissioner. The Company may have further requirements if the undisclosed amount to be insured exceeds the current assessed valuation. 8. The Land described in this commitment appears to be residential in nature and may be subject to the provisions of RCW 6.13.010,et seq.(homestead statute)if the Land is occupied as a primary residence.If the Land is occupied as a primary residence,RCW 6.13.060 requires that all documents conveying or encumbering the Land must be executed by each spouse or domestic partner,individually.Alternatively,the company will accept a deed identifying the non-vested spouse occupying the Land as the Grantor and the vested spouse as the Grantee.This applies if the non-vested spouse currently resided in the residence or if the vested spouse resides in the residence and the non-vested spouse doesn't reside in the residence but has lived there within the previous 6 months.In the event that the company receives documents to insure that are not executed as required,the company may be unable to record or to insure the transaction.Please contact your Title Officer if you have any questions. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B,Part I—Requirements;and Schedule B, Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. 1111,111.111111 ICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND I TITLE TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. ASSOC MTION Reprinted under license from the American Land Title Association. Page 5 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) SCHEDULE B,PART II—Exceptions Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This Commitment and the Policy treat any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted,repudiated, removed,and not republished or recirculated.Only the remaining provisions of the document will be excepted from coverage. The Policy will not insure against loss or damage resulting from the terms and conditions of any lease or easement identified in Schedule A,and will include the following Exceptions unless cleared to the satisfaction of the Company: 1. Any defect,lien,encumbrance,adverse claim,or other matter that appears for the first time in the Public Records or is created, attaches,or is disclosed between the Commitment Date and the date on which all of the Schedule B,Part I-Requirements are met. 2. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records. 3. Any facts,rights,interest,or claims which are not shown by the Public Records but which could be ascertained by an inspection of the Land or by making inquiry of persons in possession thereof. 4. Easements,claims of easements,or encumbrances which are not shown by the Public Records. 5. Discrepancies,conflicts in boundary lines,shortages in area,encroachments,or any other facts which a correct survey would disclose,and which are not shown by the Public Records. 6. (a)Unpatented mining claims;(b)Reservations or exceptions in patents or in Acts authorizing the issuance thereof;(c)Water rights,claims or title to water,ditch or ditch right,whether or not the matters excepted under(a),(b),or(c)are shown by the Public Records;(d)Indian Tribal Codes or Regulations,Indian Treaty or Aboriginal Rights,including easements or equitable servitudes. 7. Any lien or right to a lien for services,labor,equipment or material or medical assistance,unless such lien is shown by the Public Records as of Date of Policy. 8. Any service,installation,connection,maintenance,construction,tap or reimbursement charges/costs for sewer,water,garbage or electricity. 9. Any claim to(a)ownership of or rights to minerals and similar substances,including but not limited to ores,metals,coal, lignite,oil,gas,uranium,clay,rock,sand,and gravel located in,on,or under the Land or produced from the Land,whether such ownership or rights arise by lease,grant,exception,conveyance,reservation,or otherwise;and(b)any rights,privileges, immunities,rights of way,and easements associated therewith or appurtenant thereto,whether or not the interests or rights excepted in(a)or(b)appear in the Public Records. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B,Part 1—Requirements;and Schedule B, Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE .__...... ...... ALTA members in good standing as of the date of use.All other uses are prohibited. AMsOCIATION Reprinted under license from the American Land Title Association. Page 6 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) 10. Easement,including terms and provisions contained therein: Disclosed by: Decree entered in Jefferson County Superior Court Cause No.7222 For:Ingress and egress over road as it existed on October 06, 1966 11. Easement,including terms and provisions contained therein: Recorded:December 30, 1969 Recording No.:203763 For:Road purposes 12. Easement,including terms and provisions contained therein: Recorded:June 12, 1990 Recording No.:331591 For:Underground electric transmission and/or distribution system 13. Easement,including terms and provisions contained therein: Recorded: September 19,2011 Recording No.:562353 For: Electric transmission and/or distribution system This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B,Part I—Requirements;and Schedule B,Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND TITLE ALTA members in good standing as of the date of use.All other uses are prohibited. ASSOCIATION Reprinted under license from the American Land Title Association. Page7of9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) EXHIBIT"A" The Land referred to herein below is situated in the County of Jefferson,State of Washington and is described as follows: Tract 4,described as follows: That portion of the East 1/2 of the Southwest 1/4 of Section 15, Township 27 North,Range 1 West,W.M.,described as follows: Beginning at the center of said Section; thence South along the North and South center line of said Section,758 feet to the True Point of Beginning; thence West a distance of 752.77 feet to intersect the Easterly line of that certain tract of land sold to Gene Ray Myers by Real Estate Contract recorded March 8, 1971,Auditor's No.208162; thence along said Myers Tract,South 15°42' S4"East, 19.22 feet; Thence continue along said Easterly line of Myers Tract,South 33°56' 38"East,209.75 feet; . thence continuing along said Easterly line of Myers Tract,South 34° 96'24"East, 190.24 feet; thence East a distance of 521.44 feet to intersect the North and South center line of said Section 15 at a point 350 feet South of the Point of Beginning; thence North to the Point of Beginning. Situate in the County of Jefferson,State of Washington. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part 1—Requirements;and Schedule B,Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. 11111111110111111 Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND mu ALTA members in good standing as of the date of use.All other uses are prohibited. MlOCIATION Reprinted under license from the American Land Title Association. Page 8 of 9 American Land Title Association Commitment for Title Insurance 2021 v.01.00(07-01-2021) INFORMATIONAL NOTES 1. The Company requires the proposed insured to verify that the Land covered by this commitment is the Land intended to be conveyed in this transaction.The description of the Land may be incorrect,if the application for title insurance contained incomplete or inaccurate information.Notify the Company well before closing if changes are necessary.Closing instructions must indicate that the legal description has been reviewed and approved by all parties. 2. As of the date hereof there are no matters against Northwest Watershed Institute Inc.,a Washington nonprofit corporation, which would appear as exceptions in the policy to issue,except as shown herein. 3. Abbreviated Legal Description: PTN E1/2 SW S15 T27 RI W(TAX 2) 4. The vestee(s)herein acquired title by deed recorded July 10, 1991 under Auditor's File No.341821 .pdf).The record discloses no other conveyances of the property herein described within the last 24 months. 5. The situs address of the Land herein described is: 1125 Toandos Road, Quilcene,WA 98376 6. Map 7. Combined Exception Documents 8. RECORDING PACKAGE INSTRUCTIONS: Jefferson,Clallam,Kitsap,Mason,and San Juan County recording packages must be sent to the following address: Horizon Title Group,Inc. 2424 South Park Avenue Port Townsend,WA 98368 Pacific County recording packages must be sent to the following address: Horizon Title Group,Inc. 1308 37th Street Seaview,WA 98644 9. PLEASE NOTE: THERE WILL BE A FEE OF$5.00+TAX PER E-RECORDED DOCUMENT INCLUDED ON ALL RECORDING INVOICES. 10. NOTE: A FEE MAY BE CHARGED UPON THE CANCELLATION OF THIS COMMITMENT PURSUANT TO WASHINGTON STATE INSURANCE CODE AND THE FILED RATE SCHEDULE OF THIS COMPANY. This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B,Part I—Requirements;and Schedule B,Part II—Exceptions;and a counter-signature by the Company or its issuing agent that may be in electronic form. Copyright 2021 American Land Title Association.All rights reserved. AMERICAN The use of this Form(or any derivative thereof)is restricted to ALTA licensees and LAND Time ALTA members in good standing as of the date of use.All other uses are prohibited. ASSOCIATION Reprinted under license from the American Land Title Association. Page 9 of 9 • •-3 '..�.55 _4.SA. - s ...f Live _. ap Fr TRANSAMERICA T coming J, TITLE INSURANCE COMPANY rnn cV . i. ` " �'EFF �f�r«,M r E giros EAS Kai; i 34i821 rr' 7!FILED MA RECORD AT RR01l1$T 0. - - I� Jui i 0.' : :• -••.� •• !,,,:i-:' .7 JEFFERSON TITLE COMPANY, -INC. j1,5P'.' ,�,�_7•;Y" • ' , 37546-R/Ei6580-SII _-J.iFERSCU.OL'H''� -. - _- 4•_.- _ it w m RFOONDED OVUM�4 •' a,. THOMAS J. 80001 . P.O. Ron 92. j ., `Nordland, WA 9l35•avg.rz. _., • • Statutory Warranty. > THE GRANTOR GLENN R. WOOD, Trustee of DISCO NVE5TMENTS, a Trust >�andI tonad.TS*Mad TEN DOLLARS MID OTHER CONSIDERATION ,x.. _:. i.,;,,:'!-. intudM conveys and anrenbto THOMAS J. BOUGH, a a a < die knowing dooen'Eed reel.edete.situated in the Comb d bet Wu th4bs: t`^`� • Je OR NIL:•• :• • • SEE EXHIBIT 'A' AS ATTACHED H AND ( )P tT HEREOF. ." ` SUBJECT TO: Easement established i ntered in Jefferson County Superior Court Cause No. 7222; Ea en •- Auditor's File No. 2037638 _.; : ';,:�4• . Easement under Auditor's File N • 3 159 . � ' z.• lEfpN fuu6! q�- IA • ,. mt.cde'ea--- Dd.' July 3 G a_91... : : DISCOVERY INVESTMENTS . _ ., A _ GLENN.'R. WOOD, Trustee COU ftY.OP J F ON 's • thi ay of duly . 19 91. personally appeared . nn W d to me known to be the individual_ descri in'and who executed the within and foregoing instrument, .t, . . ( t�on•.oath'.stated that he was authorized to execute the instrument . kaowledged it as the -.Trustee of DISCOVERY TNVESTMr,TS a Of- o the free and voluntary act of • i..party far the. uses and purposes entioned in the instrument. f.;-._,•. - 4 P • • ,k...' ary Public in and for th S$tate • _ •,U" 0 wt. `ti.l t' of Washington, residing at I+taNr74Qsw1 341 ../ My.commission expires: /o/4/Job s:r My.pan, men.t,p....... .. . - - - • t P g.10 - Form 3159-4 a...44 ' • • • �' .r_. , ,...:•:. ... ... . ___ ____,:z. ....,„.. .,....„:.::.......:„......,:, . . ..... : _7i7. .7_,:.::. .;: ,. ,.. _..,....... ... :... ..,.... .. 7, .. 7 ,.f.:....„1........,...:...„.::.:,.. .:. ....._,.. ..,.. ,.....„.:::;:.;:....;.7 .:.-7-.:::- -:,- 2 . .. ,- --_,..' ".."-f':•ti,-.:-.,..:. --.:,;L_-; ..-:' ''. 1,1...::::"..:'.'..,:-..: - - ' .' • ' ,+ Y �a '` S 1` .:77v�t +a -3a ry a yt _ .v t t F'. o: r': l • - • • ) • , . .- . . -.. ' ,..-?'';::::;'..-,--i... .. •-• EZHIBIT a • - / • Tract 4. described as follows. 1 That portion of the East 1/2 et. thy t 1/4 of Beetles 1S. h Township 27 North, Range 1 Nest. .L d ribed as follows. Beginning at the center oink cc on • thence South along the North t center line of said Section. ,±•.4_ • • 758 feet to the True Point Be 9i thence West a distance of 52 77 f to intersect the Easterly line s,: of that certain tract of 1 • to Gene Ray Myers b _y Real Estate ^ ::"'•' Contract recorded March . 1971. a ditor's No. 208162� i •, thence along said era ra al Baste o h 15' a2' Sa' East. 19.22 feet; thence continue a on y line of Myers Tract. South 33' S6' _"' '= 38' East. 209.7S thence continua g a •n Easterly line of Myers Tract. South 34' 06' 24' East. 1 0. 4 as ' thence East a anc of.5 .44 felt to intersect the North and South •. canter line .few act •n 1S at • point 350 feet South of the Point of Beginning ' r thence North •• th Pois •f Beginning. t� Situate'in the Cou . o' Jeff . State of NashingtoB, - c q•• , f, a 4 ' (11) • • 341 ,�'559 -1; • i t ._ -- A t fir_.. • • I Pioneer Nafional 208162 'IStle Insurance Company REAL ESTATE CONTRACT w.a. n.,r. en.e r ran wins - TH CONTRACT,made and entered Into this 14th day of December, 1970 kt"Co Lowell R, Day and Edith Day, his wife, , • bretn after tw d the"miler,"and Gene Jay Myers and Elizabeth F. Myers, his wife, berebate,called the"ptrcha,. - . WITNFSSETH:That the seller tarty to sell to the purchaser and the puce our aver,to portion from the miller the foibwgfa described ant mute,with the apptrteaaom,to Jefferson County,State of Waahlnetoa: I A tract of land situated in the east half of the Southwest Quarter of Section 15, Township 27 North, Range 1 West, W.M., Jefferson . County, Washington, described as: Beginning at the Northwest corner of said subdivision', thence South • 89 40'30"Fast 378.13 feet along the North line of said subdivision; • thence South 5°14'56" East 218.89 feet; thence South 14°43'51" East 202.05 feet; thence South 24°41'28" East 173.94 feet; thence South - 15°42'54" East 218.66 feet; thence South 33°56'38" East 209.75 feet: - thence South 34°06'24" East 359.00 feet; thence South 25°45'10" East 350.50 feet; thence South 19°46'48" East 65.96 feet; thence West • t - t 1080,54 feet to the West line of said subdivision; thence North - ' 00122*}},,�556" East nalong oiithe{ west line of said subdivision 1633.00 feet . • The teratto..R'LhoJu°oi 1 f R cII6l11GPgtlg follows:The purchase prim is . Eighteen thousand seven hundred fifty and no/100(S18750.00 )Dollar.,of which Vive thousand and no/100 -35000.00 )Da➢ara ha.e been paid,the receipt whereof Is hereby acknowledged,and the balance of said purcbau peke shall he paid as follows: ' One hundred thirty-five and no/100 -(1135.00 )Dottier. ( `` a man Si purchaser's option,on o5 before the 1st dry of April ,1a71 , + Lad One hundred thirty-five and no/100 (1135.00 )Dollen, �/ at none at purchaser'.option,on or before the let day of each succeeding nleodu month tint➢the b.lann of athet Da+cbsr Prix shall have been fully paid.The purchaser further agrees to pay Insects on the d;mlisiyfcinj DaI:nce of f.ld were,._Arlo ,-eA el the rate of eight per cent per annum from the lot der of March 'ea 71 , --- which interest shall be deducted from earls iutalkoent payment and the balance of each Pymmt applied In reduction of prindpal AJI payments to be made hereunder seen he made at OLYMP IC INVESTMENTS, Chimacum, Wash., 98325 et at each other prace.as the seller may direct In writing. - \n,_-, Q i� f T t'0.• S.1 cy.'.+01 115_TAX PAIDPiot y1 couNvi A.referred to In this contract,"date of do lag shall be March 1, 1 Q71 (1)The purchaser looms,and agrees to pay before delinquency all tarn sad....meets that may as between pastor and goatee keevlter hecome a lion on sod seal estate;and if by the terms of this contract the purchaser has assumed payment of any mortgage, contract or other encumbrance,or has assumed payment of or agreed to purchase subject to,any toes or assessments now a Urn on mid nal estate,the purchaser agree to pay the same before delinquency. Weed)The to thew actual ash vvalrchaser ue there then oe purclaaseagaiast loss oredabmsge b fully y bothere s to p the ed windstorm b a now and hereafter placable'd onsaid reel sodo the seller for the seller's benefit,es his interest may appear,sad to pay ail ypremiums therefor and to deliver all pobdnany sandd e enae.als thereof Ito the miler. _ (3)The purchaser there,that full inspection of said real estate has been made and that neither the seer nor his&alien,shill be held ' to any covenant reverting the corditioo of any improvements thereon nor shall the purchaser or seller or the assigns of either be held to nay roveoaot or agreement for alterations,Improvements or regain unless the covenant or.jreemeat relied on is contained herein or is I to.ruing and attached to and made a part of this e.tnet. I • (4)The purrbeaer assumes.11 hazards of damage to or destruction of any improvements now on saki real estate or hereafter pieced • Ramon,nod of the taking of said real ruate or any port thereof for public use;and agrees that no such damage,destruction or talking Mail ' - constitutes failure of consideration.In au any port of said real elate Is taker for public use,the portion of the condemeation award ,eynl.e alter payment of reaso'uhie apeves of procures the throe stall be paid to the artier and applied as payment on the purchue . I. peke herein unless the seller elects to allow the purchaser to apply all or a portion of such evndemsutioo award to the rebuilding or restora- tion of any improvements damaged by sorb tailing.In rase of damage or destruction from a peril leisured against,the proceeds of such _ theurance remain.;alley payment of the reasonable expense of peon eioe the same Mall be devoted to the restoration or rebuilding of such improvements within a reosooabie time,unless purchaser elects that sold proceeds sba➢he paid to the mike for application ow the f purchase pie herein. (3)The miller has delivered,or agrees to deliver within Is days o'the date of doing,a purchurr'a policy of title insurance la attadard form,or a commitment therefor.tamed by Amiss..vato .a erns tenth..Cn,esen,Insuring the punho,ee to the full,mount of I ethn tad pae price against foe or damage by reason of Meet In:Rees titlem to sold real ate as of the dote of dosing and containing ao v ...Melo.other than the tntowtog, e. Printed general errrptlons appearing in sold po➢cy farm; l lira or mombrances which by the terms of this contract the purchaser b to amnme,or as to which(he mayryato hereunder _ leto be made cabinet;and e Age ' g contract or ooatracta under which emir I,purchasing said teal estate.end any noetpge or other ohlintion which ai3c by this mncrsct epees to pay,m of which foe the purpose of this parap.ph(s)shall he deemed defects is seller'.title. 1 .. 24 ,;.,188 March R, 1971; — e`l. - - - /.:. itb � : . T i_ i b4° . )�/9O� 6q Y r1' 17� RECORDED Ill VOLUME'CII PN© . ICIAL RECORDS_Df_ • 1M3 SPACE num°aw ItCOMIl S U)t"E - REDDEST Df_, Plonesr Natalia!Tltlt lnsurua Camps,/ w0/NIN010100 r1111 DIVISION Filed for Record at Request el ►i0Y •run0!(4l MIL MUM" 1 j 'TI 8 PM 3: qZ BETTT J.TEHfiE, To Gene Jay Myer $j EP,SEHCO'N IAUDfTI . 1u� i 4348 - 91st Ave. S,E.. • Rfrn ID_IM9 Pant-PtOufrl/r Mercer Island, Wash, 98040 s • . . i, i . • s UC1--08 1a. e ar r. r•t aaa(iA.�ar•. • •- �.f GAO' J L�� -�Grp, N c� 131)p •war P.pm.q kolap n mum V yL . 1 Ta R....oPo41 - - maadmd P011 sown ails+oi'pap paw yes Amami.pat aa)' -. 21011 co=VI MD px0)s 1Sa1T) 1011 palpa)soa9a0 Pow yaamavlaal lanutilol Pg1 Wg1P►aq1 paln+l+a oqr Pa11 01 1.91..P I mrivimPry a41 No;0soaq as wl . 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V) 2 • THIS AGREEMENT sleds and entered into thi■ 1p day of 3 December, 1969, by and between Harold Pederson and Ruby A. 4 r3wz ta , husband and wits, Walter A. Pederson and Janet Peders• , • b ' husband and wife, and Lowell R. Day and Edith Day, husband and ... . d witi, hereinafter known as the party of the first part, and 9 Marie Workman, a widow, hereinafter known as party of the second S part. 9 The first parties are the owners of the following described 10 , real estate, to-wits 11 The East half of the Southwest quarter of Section 15, 12 Township 27 North, Pangs 1 West, W.M., Jefferson County. Washingbni 13 The second party is the owner oft 14 The Northwest quarter of the Southwest quarter of • 15 said Section 15; 16 each party is desirous of securing an easement over end 27 across the land of the other party as hereinafter set forth , end 18 in consideration of each party granting to the other respective 19 easements, the parties grant as iollowst 20 Party of the first part hereby grants to party off the second RI part an easement for road purposes by the most feasible route to 12 connect with existing road which runs in a general Northerly and 23 Southerly direction across the east half of the southwest 24 quarter of said section, also an easement to use the existing SS rood. 26 Party of the second part grants unto party of the first part 27 an easement for road purposes over and icrose the Northwest quart r 28• of the southwest quarter of said section, following the gesesal • 29 course of an existing road. r•- 30 The road easements herein granted ars thirty (30) feet in 31 width, and permanent and perpetual. 32 Tba road easements herein granted will be used jointly by • PU Y Y-AL ISTA'T'f- A.sLsa.oa 111AMTI ' aklLl:9 TAX Pre:- ••i;1f ......,..SAW ha:wmgraR:s i u *"'1 lr - - - . -. - - - -- - • • • • • • 1. both the party of the first part and party of the second part, 2 and will connect with each other. 3 All parties making use of the easement agree to share in the 4 upkeep and maintenance of the road in proportion to their uae 6 thereof. 6 Roth grantors and grantees, their successors and assigns 7 reserve the right to use the said road, AND Easements for ingress s and egress to all such properties as may be owned by the 9 respective parties in either Section 15 or 22, Township 27 North, 20 Range 1, West M.N., Jefferson County, Washington. 21 IN WITNESS WHEREOF, the parties hereto have hereunto 12 • affixed their signaturesthis 30 day of December, 1969. 2314 15 16 17 • 18 J 19 • • 20 1? Airs—a 21 22 6E: „et,s-rJ , 23 24 o` �-(�C RW-/> 26 27 28 A rought plat of the granted easements, not drawn to scale, 29 is attached to show the general course of the respective easements herein conveyed. 30 31 • 32 - • • a aw.eM eve? �"Mali VIIIINT Perff flows. • W 16 '..--�...' Dec. 19, 1970r _ ,-_ - �. 6 • • • I ' • • ~ • - - . • • • `t• _ • r, r • I _. 7.. - . • �- . . --- • — " - - '—T - -. ....c zar 1 ...,,4—... .r . . • • Af .7. ::' M • --:!.,., . ..,..- • R I FxI t r�a,�R�n ' ,—. \.-- ts** ''> ,... SI f"!:.-.2:I'''."." lip . H \::.\NN\\II:14 elli ."..''... 4. • . . ......, ne.. --:\.. i ; . . ... :,..,...: � CeArts+� tFe I • .. _ • ..... ...„,.. .... . . I. i ' Sf 5 r• L\ 3/s'/t It't' /f5I o 9 t •. 1 T • + + 0. a d t f34.IG 'aI\ ♦, d w v a' tie, urf b 0 .,r7: Set.1Z./1"E. 921.10 !\ Y1,6 2 ♦a r, .Zl rain a.. K K \ t ' lr ,\ ..GSXr •i Xr 't Sss'f1'it"t sI93I 0 ... r* K 3 I//l/1.. '{7 Z OT Z yV 7 b� + `,( .II PX LI d:AGt .'' .YII�J2 /t'K' 432 77 - It IS `g, 1 O Sor.aois',ow,*A**J rK coos. h ... O .f+r w'ooa .vui n...o wc: I 44 111 4 II Boo Jif 0, /ln.1i.vsJ f ��[ I .u•i r.r w..o faun. <e..roo<..vo ar Soc 2t Nu III Po.e o.,Q ‘0,,,, 1 t�M:e t IP;1P row,* fulo.u/f/oa Sr A!f M.cG ia..v raw. -w� • prl •AGt r ow r�o Poi ,/17/ ice' •t# yt lb ff 21 I� S'' E.E.ANDERSON - PROF LAND SURVEYOR - 5528 KUHN ST., PORT TOWNSEND, WASH. 98368 (206) 385-1225 G �;212:6(421 SIIIIKTOO1 COTIKATISTANLEY BROOKS ww a. retard Irk, t a., r�.e/., N..�`L.dr...Z.f.:r r Ms map`w`""'repro**`""^s'l'M"'0"b'al~"'~ Suiul4r a,. T}w c rl /w.vo 3 1617 I RON S I D E S a"alarms.wait.M rsr,Y•ww1.of Na fanny r.aaeiy�.,N.M `.w ,:`:`� .S�t.2r�o�e�rl ,•ya..., �r •A.r .i�oo.rf BREMERTON, WASH. 98310 c r y 4.;a it c UNM IT Mn 1W Iq. .E f A.u000fo,. Stec /3; Two. l7 A/, e iY W N 2-E,q o/Is;, .:..,f,,,.u. //SIO cw,o IT tut I. /GTO rt ___... or .. .. , . .._. Al RED 40' 30' W 266831 Nih 1334,e.... 133ARS t.. W-ST - :.IS i (TR. SEC. I) .,I• .,j ,ri,i N.W. CDR. Et SW* -LC P1 VF 1 J � \I\1 I. , MERIDIAN: EAST WEST E. S..C. ID 1'11 - 0 SCALE. 1' _ 10 �\ c SET J�, RE R^L SET I% 2' LINE STAKE • 1 EAST ,,1 LE GA'_ UE:Cti KTI r. � 53882 ` A L,A TRACT c',FLANE, IN ' E 4 SWk •'E 528.43 . SEC, IS, T 27 N, A I W, N M , OF SCRIHi_I w IFS° ` T. 8E4, AT A POINT CN THE WEST LINE c'F SAID SUSD,WNICH IS ^- V'4;"W A 441' e O FROM THE N.W.COI, THEREOF, TN S(`W...' W z 1 _ Ales Tr' THE N,4 CCR I A TRACT 'F _ANL rt ROAD ESMT. DESC. UNDER A.E.N. /i0.I' TN. 57s'43'T7 E. _ IO5_56; TH.N 26°10'53-E 17 S";a TN.117'.' A ��\ E I')57O4 TN.',41°26'AA 1 1••RR: TH. N40°40'SSE 3C2,G6' T THE N.E.C'I, a ‘T. SA•0 TRACT DESC,UNDFL A,E,N. ..4.^'._ TN N 33°SE 38w 2Cw7S' TN. N I'. i:'E.Liw I.. AC, 145.75; TN. WEST '53i Set' T^ THE Y,'At'. •d ` TC6ETNEA WITN 14 .USJEC` T r$MT$ 'E .1 RECORD. y • SURVEY FOR: ,, N' M 4'R`_ „del by'F R. F. MIL:.P^'NT:L W 66 LAND SU•ii/IR S 790Ot SS 15 ..)('O. GO A H MTC 26, 106f. .J-;Y",� `•1 10 N SI°26'S0•W (Iy!'{IG�;(, \ • F. A t3 ROAD ESMT, � *, 7A O • i0 36 , h 43 On, MR alliCWO yp4 7t iy jc It, • . . MN 331591 9W¢3sss N• . _, • hs .2f.' 1' S-9 ' • P1/GET • EASEMENT FOR UNDERGROUND F].E TRIC SYSTEM ,'; t7S • POWER • I•lor and in consideration of one Dollar ($1.00�Fr o t trulOPAYf • • .. valuable consideration, the receipt of which is hereby acicrrowl • y. . '3S • GLENN Rr••WOOD, Trustee of Discovery_Inyestmente •",a;a, .... • r• _ ___�__-•- •_ a �..� vr> ("Grantor-herelni•grants.conveys and uananta to PUGFT Stu' T1 WAVER A LIGHT `�t tshinglospr- iteration("Grantee"herein!•for the purposes hereinafter let forth a perpetual easeme mole�i7iit' and over tbi fol- lowing de serihed real property(the"Pmuerty"herein!.—stt.UU_4CSDfl--County.W on• . • See Exhibit "A" attached hereto and by this ref r rice)e a r.t . . • hereof. • i \ . • Except as may he otherwise set forth herein Grantee's rights I •upon that portion of the Property(the-Right-- of Way"herein!desrrihed as follows: htgtiaef.Ws._ fsetinasddlt -• .- • leen*suelswsdohma earn oiderotseventy, hoe 4tesertb 0 atefeltinvsF . The easement roadway Witt th= = •• red scribed property. WO Wieni F >!, .r S.4f.LS TAN RE'-41 �FFl�� .. COUNTY i IL, S IRER� H ` - - • � � ! a� 1 � - 7f ! • • I.Purpose.Grantee sha have the right-to-cons ct.operate.maintain repair."replete and enlarge an underground elsb(c transmission and/or dtairthtllq'nn fly m upon 9nd tinder the Riehtof-Way together with all necessary or convenient aps purtenances therefor./col ich,ma lit ut are not limited to thetethwing:underground.conduits2 cables.oommuniotimi lines:vaults•manhol sttennch`s•an ra mers:and semi-buried or ground mounted facilities.Following the initial coo- • . structfon of its faaliti Grantee may lime to time construct such additional facilities as it may require. . - _.Access.Grantee aha he n'Aht of access to the Right-of-Way ever and actors the Property to enable Grantee tome. . rise its rights hereunder.-proaid ante-e shall compensate Grantor for any damage to the Property caused by the eser- r rise of said right of,•access '\,\ •- '- t • 3.Obstrucilaasl�cap1 grantee may front time to time remove trees.hushes,or other obstructions within the Right- • .1 of-Way and may 1 et' nd ger•de the Right-of-Way to the extent reasonably necessary to carry out the purposes set forth in para(traph 1 hereel:.pant at following any such work.Grantee shall.to the extent reasonably practicable.restore the Rightof.Wa' the tti t was immediately prior to such work.Following the installation of Grantee's underground facilities. ranter ins.'undertake any ordinary improvements to the tatadseaping of the Right-of-Way.provided that no trees or . other pla to be .thereon which would he unreasonably expensive or impractical for Grantee to remove anti re tore . • • • . a.Gnitor's 1• of Right—at-Way.Grantor reserves the right to use the Right•ef•Way for any purpose not inconsistent rithh p the •tits hP n Minted.provided:that Grantor shall not construct or maintain any building or other structure op the Right- - -Wiry ichh Would'interfere with the exercise of the rights hereto granted.:that no digging.tunneling or other form of con-. - • sin •nn tensity shall he done on the Properly which would disturb the Compaction or unearth Grantee's facilities an the Right Vay.Or endanger the lateral support to said facilities:and that no blasting shall be dooe'wirhin 15 feet of the Righad- • Na! l 3I fnde su4 By accepting and recording this easement.Grantee aga�eea to indamtufe and hold harmless Grantor frno say • S all claims for injuries anti/or damages suffered by any person shod,may be cauself by the Grantee's exercise of the rights hereiregraanied provided.that Grantee shall nut be responsible to Grantor for any injuries and/or damages to any person 1 • caused try acts Of omissions of Grantor. A.Abandonment.The rights herein granted shall continue until sad rime as Grantee ceases to use the Right-of•W'ay fur a • pneriotl'of five Cif successive years,in whiclt event this easement sisiTi terminate and all rights hereunder shall revert to Gan- tar.pruiiil.d that no abandonment shall he deemed to have ntxwred by reason of Grantees-failure to initially install its a facilities on the Right-of-1Vay within any period of-time from the date hereof. . • t 7.Successors and Autgns-The rights anti obligations of the parties shall inure to the benefit eland be binding upon their 'ti - .respective successors and assigns. . •ra.vt • Jtilt t 2 • 1T•i 309 Ffs;,1 95 . 1 • ,., ' DATED this_SQL day d f CA-A-�'` 19��r a .GRANTOR ~ • Glenn R. Wood. Trustee Of--- - i`s. v y inv estments _ _ • STATE,OF WASHINGTON 1 COU\T1"qr/I On this dots•petsnnallY•appeared before me Glenn R. Wood to me ln.nweto be'lhe individual_described in and u'tra executed the within and foregoing Instrument.a®d acknowledged that ='he signed_Jhet.same as his free and vehuttary act and deed for the Tes land purposes therein mentioon/ed. GIVEN unnfer my hued and official seal this a day ( y ub�tx. :_ rn � . o • ff••. . `t• Notary Puhlic In for the State of Washingtaa e i.'0 raiding at • • • hfy Conntisssi�on D pires,fly/L/q? • STATE OF WASHINGTON I • \ • COUXTYOF I • On this day personally appeared before me ' / / • to me known to be the individual, described in ana who exeicuted the within and foregoing instrument.and acknowledged that signed the same es free and eofuntary aci and deed for the uses and purposes therein mentioned. • i e, f. GIVEN under my hand and official seal this____.__day o • f w Wash .19 . ry Public In and for the State of irtgtm 1 - .ding at ' ' Hy Ooninissian Expires 1yy STATE OF WASHINGTON d - - OOUXTY OF . On this day personally appeared before me • to me known to be the individual_described in and tabs executed the within and foregoing ittstrumeni.and acknowledged that signed the same as' . free and sduntary act and deed for the uses and purposes therein mentioned. GPi E\N under my hand)and dfar*al seal this day of • 19 Notary Public in and for the State of Washington. residing at-' res pug at. ion Dgaires - . My STATE OF WASHINGTON SS • CORPORATE ACKNOWLEDGMENT t:\'ODTYOF I -a • On this day of .19 T_'.before me.the undersigned.personally appeared • and f • to me known t6 be the and .resp ectisely.d . 1 ______ the corporation that executed tee foregoing instrument. and adnh:tmIged the said instilment to he the free and sduntary act and deed of said corporation.for the ess and purposes therein t mrunaned.and on oath stated art authorized to execute the said instrument and that theseal affixed is the corporate sod of said corporation. Witness my hand and official seal hereto affixed the day and year first above written. t j • Notary Public in and Jot the State of Washutpt. residing at • My," y OomnissiOn Expires v3L 309 r..;& 96 • • T . • ' 9001555 NJ . SW 15-27-1W • - G.R. Tract 4, described as follows: f` t That portion of the East half of the Southwest quatter c$ t Section 15, Township 27 North, Range I West, W.M., described as follows: � ` Beginning. at the center of said Section; --�\-.• • thence South, along the North and South centerline. of said " Section, 758 feet to the True Point of Beginning; ' thence West, a distance of 752.77 feet to intersect.the Easterly line of that certain tract of land sold tQ Gene Ray Myers. by Real Estate Contract recorded March 8, 1971, AUditor`s NO. 208162; thence along said Myers Tract; South, 15°42'54,'East, 19.22 feet; thence continue along said Easterly line of Myers Tract South 33°56'38" East 209.75 feet; thence continuing along said Easterly, line,of Myers Tract, South . 34°06'24" East 190.24 feet; thence Easi a distance of 521.44 feet to intersect the North and South centerline of said Section 15, at a point 350 feet South of the Point of Beginning; thence North to the Point of Beginning. Situate in the County of Jefferson. State of Washington. 0 a • • o• ; - i i • EXHIBIT "A" va 309 P 97 562353 P161311 GS_ : 2 ON EASE JJeiJJf JJf9rson Coo3'nntvv W7 Auditoorr s Of/Eott -DDonnnja Eldridge AudJ,tlor ri1"BtrY111t1�lr fWr litt�IYr�r ki 1,TIi RETURN ADDRESS: Puget Sound Energy,Inc. Attn: ROW Department NO REAL ESTATE 3130 S.38th Street EXCISE TAX REQUIRED Tacoma,WA 98409 JEFFERSON LINTY TREASURER KO BY; EASEMENT JEFFERSON TtTLE COMPANY has placed this doctir.twnt of record as REFERENCE# a customer couttosy and accepts no GRANTOR: HOUGH liability for the accuracy or validity GRANTEE: PUGET SOUND ENERGY,INC. of the document. SHORT LEGAL: NE-SW-15-27N-01W ASSESSOR'S PROPERTY TAX PARCEL: 701-153-003 No Monetary Consideration For and in consideration of One Dollar ($1.00) and other valuable consideration in hand paid, THOMAS J. HOUGH, a single man,('Grantor herein),hereby conveys and warrants to PUGET SOUND ENERGY,INC., a Washington Corporation ("Grantee' herein), for the purposes hereinafter set forth, a nonexclusive perpetual easement over, under, along across and through the following described real property ('Property' herein) in JEFFERSON County,Washington. TRACT 4-THAT PORTION OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 15, TOWNSHIP 27 NORTH, RANGE 1 WEST, W.M., DESCRIBED AS FOLLOWS: BEGINNING AT THE CENTER OF SAID SECTION; THENCE SOUTH ALONG THE NORTH AND SOUTH CENTER UNE OF SAID SECTION,758 FEET TO THE TRUE POINT OF BEGINNING;THENCE WEST A DISTANCE OF 752.77 FEET TO INTERSECT THE EASTERLY LINE OF THAT CERTAIN TRACT Of LAND SOLD TO GENE RAY MYERS BY REAL ESTATE CONTRACT RECORDED MARCH 8, 1971, AUDITOR'S NO. 208162; THENCE ALONG SAID MYERS TRACT, SOUTH 15'42'54" EAST, 19.22 FEET; THENCE CONTINUE ALONG SAID EASTERLY UNE OF MYERS TRACT,SOUTH 33°58'38"EAST,209.75 FEET;THENCE CONTINUING ALONG SAID EASTERLY LINE OF MYERS TRACT,SOUTH 34°08'24"EAST,190.24 FEET;THENCE EAST A DISTANCE OF 521.44 FEET TO INTERSECT THE NORTH AND SOUTH CENTER UNE OF SAID SECTION 15 AT A POINT 350 FEET SOUTH OF THE POINT OF BEGINNING; THENCE NORTH TO THE POINT OF BEGINNING. SITUATE IN THE COUNTY OF JEFFERSON,STATE OF WASHINGTON. Except as may be otherwise set forth herein Grantee's rights shall be exercised upon that portion of the Property ('Easement Area herein)described as follows. An Easement Area TEN(10) feet in width having FIVE(5) feet of such width on each side of a centerline described as follows: THE CENTERLINE OF GRANTEE'S FACILITIES AS NOW CONSTRUCTED, TO BE CONSTRUCTED,EXTENDED OR RELOCATED LYING WITHIN THE ABOVE DESCRIBED PROPERTY. 1. Purpose. Grantee shall have the right to use the Easement Area to construct,operate,maintain,repair, replace,improve,remove,and enlarge one or more utility systems for purposes of transmission,distribution and sale of electricity. Such systems may include,but are not limited to: Underground FaclllUes. Conduits,Niles,cables,vaults,switches and trar,sfuwmers for electricity: fiber optic cable and other lines,cables and facilities for communications; semi-buried or ground- mounted facilities and pads,manholes,meters,fixtures,attachments and any and all other facilities or appurtenances necessary or convenient to any or all of the foregoing. Following the initial construction of all or a portion of its systems,Grantee may,from time to time,construct such additional facilities as rt may require for such systems. Grantee shall have the right of access to the Easement Area over and across the Property to enable Grantee to exercise its rights hereunder. Grantee shall compensate Grantor for any damage to the Property caused by the exercise of such right of access by Grantee. 2. Easement Area Clearing and Maintenance. Grantee shall have the right to cut,remove and dispose of any and all brush,trees or other vegetation in the Easement Area. Grantee shall also have the right to control,on a continuing basis and by any prudent and reasonable means,the establishment and growth of brush,trees or other vegetation in the Easement Area. UG Electric 10/2003 105066811 RW-079555 HOUGH Page 1 of 2 3. Grantor's Use of Easement Area. Grantor reserves the right to use the Easement Area for any purpose not inconsistent with the nghts herein granted, provided, however, Grantor shah not construct or maintain any buildings, structures or other objects on the Easement Area and Grantor shall do no blasting within 300 feet of Grantee's facilities without Grantee's prior written consent. 4. indemnity. Grantee agrees to indemnify Grantor from and against liability incurred by Grantor as a result of Grantee's negligence in the exercise of the rights herein granted to Grantee, but nothing herein shall require Grantee to Indemnify Grantor for that portion of any such liability attributable to the negligence of Grantor or the negligence of others. 5. Abandonment. The rights herein granted shall continue until such time as Grantee ceases to use the Easement Area for a period of five(5)successive years,in which event,this easement shall terminate and all rights hereunder,and any Improvements remaining in the Easement Area,shall revert to or otherwise become the property of Grantor, provided, however, that no abandonment shall be deemed to have occurred by reason of Grantee's failure to initially install its systems on the Easement Area within any period of time from the date hereof. 6. Successors and Assigns. Grantee shall have the right to assign,apportion or otherwise transfer any or all of its rights,benefits,privileges and interests arising in and under this easement. Without limiting the generality of the foregoing, the rights and obligations of the parties shall inure to the benefit of and be binding upon their respective succ-4acors and assigns. DATED this'2,7 day of [s/./.4/ ,2011. GRANTOR: BY: -il THOMAS J.HO H BY: STATE OF WASHINGTON ) f )SS COUNTY OF,.It�G /� SC/J) On this^%14 day of , L 'U.S T ,2011,before me,a Notary Public in and for the State of Washington,duly commissioned and sworn,personally appeared THOMAS J.HOUGH,tq me known to be the indivi alfs)who executed the within and foregoing instrument,and acknowledged that / signed the same as SS free and voluntary act and deed,for the uses and purposes therein mentioned. GIVEN UNDER my hand and official seal h y and year in this certificate first above written. Jnr±t.r .f:-`_ � O (Signs t�'R6-61NOtary) /j( ,'.'.\ KE7€ L_ �08/ ii Y (Print or stamp name Notary) O aS_V: NOTARY PUBLIC in and for the State of Washington / S�• M r u�'� Residing at - "'e� My Appointment Expires: ( '5/l Posy MY.YIO ad Y AYYIYe Mer nor M pISSO Wan I'margins 105066811 RW-079555 HOUGH Page 2 of 2 EACH) v (LESS TAX 11 ,17) 1 \ 701153006 3023 \ \ \ \ TAX 5 2 ) \ \ ILT / (TAX 18) (TAX 19) \ \ / I I \ \ 701153009 I 1 0 TAX 8 / l ,� WAY \z PILT / 1W ps jP 1 / o / TAX 18) / \ \�n (DNR PILT) .0 / AT 4 19) 701153018 \ TAX 17 \ \ 701153003 DNR PILT \ \o TAX 2 701153b20 / / / VC ,3022 701153021 TAX 18 & 19 / >1 TAX 20 (LESS N 6f 8 / / \ OFEACH)� / � _ � � / \ \ / \ \ This sketch is not based on a survey of 701153027 701153010 the property.It is furnished without / TAX 26 \ \o TAX 9 (LESS charge courtesy of First America Title Company solely for the purpose of - ) assisting in locating the said premises. \ \-2_ TAX 10,16) It does not purport to show all roads or easements.The company assumes no liability for any inaccuracies therein. \ 701153014 TAX 13 \ \ 701153012 701153011 TAX 11 \ \ TAX 10 NDNR PILT \ \ AGREEMENT FOR CONTINGENT PURCHASE AND SALE OF VACANT REAL ESTATE (Dabob Bay Natural Area-Hough) THIS AGREEMENT FOR CONTINGENT PURCHASE AND SALE OF VACANT REAL ESTATE (the "Agreement") is made as of the l344-day of No%-mbr r- , 2024 , by and between the NORTHWEST WATERSHED INSTITUTE, a Washington non-profit corporation and/or assigns (hereinafter referred to as the "Buyer") and THOMAS J. HOUGH, as his separate estate,(hereinafter referred to as"Seller")(collectively,the"Parties"). WHEREAS, Seller is the owner of certain real property consisting of approximately 6.38 acres at 1125 Toandos Road,Quilcene in Jefferson County,Washington; and WHEREAS, Seller desires to convey said real property to Buyer, and Buyer desires to acquire said real property; NOW, THEREFORE, in exchange for the mutual promises and covenants herein contained, and other good and valuable consideration, the mutual receipt and sufficiency of which is hereby acknowledged by Seller and Buyer, it is agreed as follows: SECTION l PROPERTY Seller shall sell and convey to Buyer, and Buyer shall purchase and accept from Seller, all subject to the terms and conditions of this Agreement, that certain real property located in Jefferson County, Washington, the legal description of which is set forth on Exhibit A attached hereto and incorporated by this reference herein, together with the following: (i) All rights, tenements, hereditaments, easements, associated tidelands, and appurtenances, including, but not limited to, any rights, title and interest of Seller in and to all trees, crops, oil, gas, sand, gravel, water rights,or mineral rights; (ii) All improvements, if any, and other items located upon or within said real property; (iii) All easements, rights-of-way and other rights used in connection with said real property, including but not limited to the following: maintenance easements, rights to adjacent streets, roads, alleys and rights-of-way; (iv) All permits, plans, licenses, surveys, consultant's reports on all matters, including Purchase and Sale Agreement 1 of 15 Dabob Bay Natural Area Hough but not limited to soils, engineering, traffic, environmental matters, and wetlands made by, for or on behalf of Seller with respect to the property, and an assignment of all representations and warranties made therein to Seller. The parcel of land, together with the improvements, rights and interests described above, are collectively referred to herein as the"Property." SECTION 2 PURCHASE PRICE 2.1 Amount. The purchase price ("Purchase Price") to be paid for the Property shall be the greater of the sum of ONE HUNDRED AND TWENTY THOUSAND U.S. Dollars ($120,000.00) or the Fair Market Value of the Property as determined by a qualified appraiser in an appraisal commissioned and paid for by Buyer. If the Fair Market Value exceeds $120,000, the Parties agree to amend this Agreement to make such amount the Purchase Price. Buyer's obligation to purchase the Property is contingent on the availability of funding to the Buyer. If Buyer does not obtain sufficient funding to purchase the Property and complete the Agreement prior to the closing date, then Buyer may terminate this Agreement without further obligation other than loss of its Deposit as provided herein. 2.2 Earnest Money Deposit. Within ten (10) days following the execution and delivery of this Agreement, Buyer shall open escrow with First American Title of Jefferson County in Port Townsend, Washington (the "Escrow Agent"), by depositing with Escrow Agent a copy of this Agreement and the sum of One Thousand Dollars ($1,000.00) (the 'Deposit"), in the form of a personal check payable to Escrow Agent. In the event that this transaction is consummated as contemplated by this Agreement, the Deposit shall be applicable to the Purchase Price. In the event that this transaction is not consummated as contemplated by this Agreement, the Deposit shall be returned to Buyer; provided, however, that in the event that this transaction is not consummated as contemplated by this Agreement because Buyer has not obtained sufficient funding to purchase the Property,the Deposit shall be paid over to Seller. 2.3 Payment. Purchase Price shall be paid into escrow by a Buyer warrant or wire transfer payable to the Escrow Agent on the Closing Date as defined below. 2.4 Compensating Tax. If the property is in forest land designation under chapter 84.33 RCW, this transaction is exempt from the payment of compensating tax as provided by RCW 84.33.140 (13)(c), or if the property is in open space, agricultural, or timberland classification under chapter 84.34 RCW, this transaction is exempt from the payment of additional tax as provided by RCW 84.34.108(6)(f). SECTION 3 CLOSING 3.1 Closing Date. "Closing," "Closing Date" or "Date of Closing" as those terms are used herein, shall mean the date upon which all documents are recorded and monies paid to complete Purchase and Sale Agreement 2 of 15 Dabob Bay Natural Area Hough the purchase contemplated herein. The Date of Closing shall be as soon as practical to facilitate an orderly closing but no later than June 30, 2025 unless otherwise agreed in writing by the Parties. 3.2 Escrow. This transaction shall be closed in escrow at First American Title of Jefferson County, 2424 S. Park Ave, Port Townsend WA 98368 ("Escrow Company"), which shall be arranged by Buyer within ten (10)days of execution of this Agreement. The Parties shall deposit the necessary documents and funds in escrow sufficiently in advance of the Closing Date to facilitate an orderly closing. Buyer and Seller shall each pay one-half of the Escrow Company's fee. SECTION 4 CONVEYANCE,TITLE INSURANCE,AND POSSESSION 4.1 Possession. Buyer shall be entitled to possession of the Property on the Closing Date, but Buyer shall have a right of entry pursuant to Section 5 below. 4.2 Form of Deed. On the Closing Date, Seller shall convey title to the Property to Buyer by Statutory Warranty Deed, free and clear of all assessments, monetary liens or encumbrances securing the payment of money, and subject only to any other encumbrances or defects accepted by Buyer in writing. 4.3 Preliminary Commitment. (a) Seller has obtained a preliminary commitment for an ALTA Owner's Standard Coverage Policy of title insurance (hereafter "Preliminary Commitment") from First American Title of Jefferson County. Seller further warrants that title shall be good, marketable and insurable subject only to the exceptions approved by Buyer pursuant to subsection 4.3(b). (b) Within thirty (30) days of execution of this Agreement, the Buyer shall notify the Seller in writing of any exceptions thereto which are wholly or conditionally acceptable to the Buyer (hereafter "Title Notice"). Following giving of Title Notice, if additional encumbrances affecting the Property arise, Buyer shall have twenty (20) days from receipt thereof to review and approve these additional items. Failure of the Buyer to so approve in writing any exception to Seller's title shown in the Preliminary Commitment or arising thereafter shall be deemed to be a disapproval of such exception. Purchase and Sale Agreement 3 of 15 Dabob Bay Natural Area Hough 4.4 Policy Condition of Closing. Seller shall, prior to or at the Closing Date, at its sole cost and expense, undertake (by the exercise of its reasonable efforts and with due diligence) to remove, eliminate or modify any exceptions not acceptable to Buyer. Closing shall be conditioned upon Title Company issuing its ALTA Owner's Standard Coverage Policy insuring fee title to the Property in the name of Buyer in the amount of the Purchase Price, subject only to (i) the printed form exceptions contained in the ALTA Owner's policy and (ii) such exceptions accepted by Buyer. 4.5 Use of Purchase Price. Purchase Price to be paid by Buyer to Seller at Closing may be used in whole or in part by Seller by and through the Escrow Company to remove any liens, liabilities,or encumbrances which Seller is to have removed. 4.6 Cost of Policy. Seller shall be responsible for the cost of the title insurance policy. Buyer shall be responsible for requesting and for paying the cost of any additional endorsements, co- insurance policies and reinsurance certificates issued by Title Company at Buyer's request. SECTION 5 BUYER'S RIGHT AFTER ACCEPTANCE 5.1 Inspection Contingency. After the date of this Agreement, Seller shall permit Buyer and/or its designated agents to enter upon the Property at all reasonable times for the purpose of conducting environmental assessments and investigating the Property and the physical condition thereof, including, without limitation, soil, water, and air conditions, and the condition of improvements, if any, upon the Property. Inspections by Buyer, if any, shall not be construed as estopping actions upon any warranty made herein. 5.2 Buyer's Waiver of Disclosure Statement. Buyer and Seller acknowledge that the Property may or may not be considered "commercial real estate" as defined in Chapter 64.06 RCW, and hereby waive all rights, obligations, and remedies (including, without limitation, the right of rescission) which may be applicable or available to the parties hereto. Buyer acknowledges that Buyer has been advised of Buyer's right (to the extent applicable to the subject transaction) to receive a completed Seller Disclosure Statement pursuant to Chapter 64.06 RCW and that Buyer hereby waives that right, whether or not applicable, provided, however, that Seller shall complete and deliver to Buyer Section 6 (Environmental) of the Seller Disclosure Statement relating to the Property within five (5) days after the execution and delivery of this Agreement. 5.3 Studies. (a) Seller Studies. Within five days of the date of this Agreement, Seller shall deliver to Buyer true copies of all studies, reports, surveys, soils tests, reviews, correspondence with all governmental entities, environmental checklists and reports, plans and other printed or written material (all of which are collectively referred to as the "Seller's Studies") prepared or received by, or on behalf of, Seller with respect to the Property and Purchase and Sale Agreement 4 of 15 Dabob Bay Natural Area Hough any part thereof. Seller authorizes Buyer to speak with any person preparing Seller's Studies with respect to the contents thereof. Buyer shall not be responsible for any cost associated with Seller's Studies, except for the cost of any additional inquiry or investigation that Buyer deems necessary with respect to the Seller's Studies. (b) Buyer Studies. Buyer shall have the right to prepare, or have prepared, appraisals, market and engineering studies, soils tests, feasibility studies, surveys, resurveys or survey updates, environmental investigations and such other tests, studies or investigations (all of which are collectively referred to as the "Buyer's Studies") with respect to the Property. Buyer shall be solely responsible for costs of all Buyer's Studies. (c) Termination. If the Buyer determines at its sole discretion that the Seller Studies or Buyer's Studies indicate the Property is not suitable for the intended use by Buyer or the Property presents risk of liability unacceptable to Buyer, Buyer may terminate this Agreement without further obligation so long as such termination is provided to Seller in writing within 120 days of this Agreement. If no such notice is provided to Seller, Buyer's inspection contingency shall be deemed waived. Should Buyer timely terminate this Agreement under his Inspection Contingency, Buyer shall be entitled to a refund of any earnest money funds paid into escrow. 5.4 Subsequent Acts. Between the date of this Agreement and the Closing Date, Seller shall maintain the Property and keep the Property in condition at least as good as on the date of this Agreement. Seller shall not remove any timber, harvestable crop, improvements, minerals, sand, gravel, or other item from the Property after the date of this Agreement without prior, written approval by Buyer. At least ten (10) calendar days prior to the Closing Date, Seller shall have removed all junked vehicles, mobile homes,outhouses,temporary structures or personal property that are not intended to be a part of this transaction,and equipment, machines, other solid waste and trash from the Property to the satisfaction of Buyer. SECTION 6 CONTINGENCIES 6.1 Conditions. Buyer's obligations under this Agreement are subject to and contingent upon the following: (a) The truth and accuracy as of the Closing Date of all representations and warranties of Seller set forth in this Agreement or in any instrument or document delivered by Seller to Buyer. (b) The delivery by Seller to Buyer on or prior to the Closing Date of all documents and instruments required by the terms of this Agreement. (c) The performance on or prior to Closing by Seller of all acts required under this Agreement. Purchase and Sale Agreement 5 of 15 Dabob Bay Natural Area Hough (d) The absence at Closing of any violation of any federal, Buyer or local law, rule, regulation or ordinance affecting the use, occupancy or condition of the Property. (e) The absence at Closing of any failure to comply with the order of any court, government authority or agency pertaining to the Property or the use, occupancy or condition of the Property. (f) The absence at Closing of any proceeding or threat of any proceeding to condemn all or any part of the Property by a proceeding in eminent domain. (g) Conveyance of acceptable title as provided in Section 4. (h) Approval of Seller's and Buyer's Studies pursuant to subsection 5.2. (i) The availability of funding to purchase the Property and complete the Agreement. 6.2. Waiver. If any condition specified in Section 6.1 is not met at Closing,Buyer may waive such condition in writing, or Buyer may terminate this Agreement without any further liability, subject to paragraphs 5.2 and 2.2. Upon such termination, the Deposit and any monies deposited by Buyer pursuant to this Agreement, together with all interest earned thereon shall be promptly returned to Buyer; provided, however, that if the termination is due only to the unavailability of funding to purchase the Property and complete the Agreement, the Deposit, together with all interest earned thereon, shall be paid over to Seller as liquidated damages and as Seller's sole remedy and not as a forfeiture or penalty. Upon disbursement of the Deposit by the Escrow Agent as provided herein, neither Buyer nor Seller shall have any further liability to the other under this Agreement, except for all indemnity provisions set forth herein which shall survive for such term as provided for in this Agreement SECTION 7 REPRESENTATIONS AND WARRANTIES Seller makes the following representations and warranties to Buyer. Each of these representations and warranties is material and is relied upon by Buyer. Each of the representations and warranties shall be deemed accurate through Closing and shall survive Closing. 7.1 Title. Title to the Property is vested in Seller. 7.2 No Liabilities. There exists upon the Property no condition which is in violation of any statute, ordinance, regulation or administrative or judicial order or holding, whether or not appearing in the public records pertaining to the Property. 7.3 Correctness. All information furnished by Seller to Buyer with respect to the Property is Purchase and Sale Agreement 6 of 15 Dabob Bay Natural Area Hough accurate and true. 7.4 Litigation. To the best of Seller's knowledge,there is no pending or threatened litigation affecting the Property or any portion thereof, including but not limited to alleged violation of federal, Buyer or local environmental laws. Neither Seller nor its predecessors have received any notice relating to a breach or suspected breach of any environmental laws. 7.5 Condition of Property. To the best of Seller's knowledge, Seller represents and warrants the following: there are no apparent or latent defects in the Property; the Property does not contain any underground storage tanks, surface impoundments, asbestos or asbestos-containing material, or polychlorinated biphenyls (PCBs) or PCB-containing materials, past or present refuse dump sites, chemical storage sites, areas of heavily stained soil, or sites of known hazardous material releases other than those indicated and described by exhibit attached hereto; and the Property is free from the presence of hazardous waste or materials and no hazardous waste or materials have been generated, stored, released, disposed of, or transported over, on or within the Property. The term "hazardous waste or materials" includes any substance, waste or material defined or designated as hazardous, toxic or dangerous (or any similar term) by any federal, Buyer or local statute, regulation, rule or ordinance now in effect, including but not limited to the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601, et seq., and the Model Toxics Control Act, RCW 70A.305D. Seller has no undisclosed knowledge of any fact or condition that would materially impair the market value of the Property, would materially increase the cost of operating the Property or would be inconsistent with the terms of this Agreement. 7.6 Authorization. Seller has the right and authority to enter into this Agreement and all documents contemplated by this Agreement, to make the representations and warranties set forth herein and to perform this Agreement in accordance with its terms. Neither the execution of this Agreement nor its performance by Seller will conflict with or result in the breach of any mortgage, deed of trust, encumbrance, restriction, covenant, agreement or other undertaking whatever. 7.7 Vacancy. No one is presently occupying the Property, either with or without Seller's permission. SECTION 8 INDEMNITY AND HOLD HARMLESS Seller agrees to indemnify, defend with counsel acceptable to Buyer, and hold harmless Buyer, its agencies, employees, officers and agents from (a) all liabilities, losses, claims, demands, damages, assessments, costs and expenses(including reasonable attorneys' and consultants' fees) of every kind (hereafter "Liabilities") resulting from, arising out of or relating to the breach by Seller of any of its warranties, representations or covenants contained in this Agreement and (b) all Liabilities arising under, resulting from or arising out of any activities of Seller, its agents, employees, contractors, subcontractors, permittees, or licensees at the Property prior to or at Purchase and Sale Agreement 7 of 15 Dabob Bay Natural Area Hough Closing, including but not limited to the use, disposal, transportation, generation, or sale of hazardous material as defined in subsection 7.5. SECTION 9 DESTRUCTION OR CONDEMNATION Seller shall bear the risk of loss prior to Closing. If, on or before the Closing Date, either the Property is materially damaged, or condemnation proceedings are commenced with respect to the Property, Buyer shall have the right, at its sole election, by giving notice to Seller, either to terminate this Agreement or to purchase the Property in accordance with this Agreement. If Buyer elects to terminate this Agreement, all rights and obligations of Seller and Buyer shall terminate. If Buyer elects to purchase the Property in accordance with this Agreement, Buyer shall be entitled to all insurance proceeds or condemnation awards payable by reason of such damage or condemnation. In the event there is no insurance or inadequate insurance to cover the damage, Buyer shall be entitled to a reduction in the Purchase Price equal to the market value of the Property destroyed or damaged. Seller shall immediately give notice to Buyer upon the occurrence of any damage to the improvements on the Property or the initiation of any condemnation proceedings affecting the Property. The term "material damage" as used in this section shall mean any damage or destruction that cannot be repaired or replaced within ninety (90)days. SECTION 10 CLOSING AND CLOSING COSTS Prior to or on the Closing Date, Seller and Buyer shall deposit the following documents and funds in escrow, and the Escrow Company shall close the escrow in accordance with the instructions of Buyer and Seller consistent with this Agreement: 10.1 Seller Obligations. Seller shall deposit the following: (a) duly executed and acknowledged Statutory Warranty Deed conveying the Property to Buyer and a Real Estate Excise Tax Affidavit; (b) escrow instructions, as required of Seller to close this transaction in accordance with this Agreement; (c) if Seller is a corporation or partnership, a certified resolution authorizing the execution of all documents delivered at the Closing; (d) pursuant to Section 1445 of the Internal Revenue Code of 1986, as amended, a nonforeign affidavit, stating that Seller is not a foreign person and providing Seller's United Buyers taxpayer identification number. If Seller is not able to certify that it is not a "foreign person," Buyer is authorized to withhold a portion of the purchase price at closing for U. S. Income Tax purposes; and Purchase and Sale Agreement 8 of 15 Dabob Bay Natural Area Hough (e) such other instruments or documents as may be required pursuant to the provisions hereof or as mutually agreed by Seller and Buyer to be necessary to fully consummate the transaction contemplated hereby. 10.2 Buyer Obligations. Buyer-shall deposit the following: (a) The Purchase Price; and (b) such other funds and documents, including without limitation, escrow instructions as are required of Buyer,to close the purchase in accordance with this Agreement. 10.3 Prorations. All rents and other income, if any, and water, sewer, utility and maintenance charges, and any other expenses with respect to the operation of the Property shall be prorated between Seller and Buyer as of the Closing Date, and to the extent information then available, such proration shall be made as of the Date of Closing. Such proration shall be adjusted and completed after the Closing Date as and when complete information becomes available, and Buyer and Seller agree to cooperate and use their best efforts to complete such prorations not later than sixty (60) days after the Closing Date. No insurance prorations shall be made. Seller shall pay any assessments charged against the Property in full prior to or at Closing. Seller shall pay all real estate taxes and personal property taxes, if any, through the Date of Closing. In the event Seller has prepaid any real estate taxes, Seller may seek a refund from the appropriate county official; Buyer shall have no obligation to refund or pay any such amount to Seller. Seller shall pay any real property excise tax due, and the cost of any revenue stamps, if applicable, required to complete this transaction. Buyer will pay recording fees. SECTION 11 SURVIVAL The representations, warranties, indemnification and obligations (to the extent such obligations are not fully performed at closing) contained herein are intended to be operative after delivery of Seller's deed to the Property in order to be fully effective and shall be deemed not to have merged in the deed. SECTION 12 REAL ESTATE COMMISSION Seller shall pay any real estate commission payable in connection with this transaction. Any real estate agent or broker acting in this transaction shall be deemed to be the sole agent of Seller. SECTION 13 NOTICES All notices required or permitted to be given hereunder shall be in writing and shall be deemed given upon personal service or receipt after deposit in the United Buyers first class mail addressed as follows: Purchase and Sale Agreement 9 of 15 Dabob Bay Natural Area Hough To Seller: Thomas J. Hough 1125 Toandos Road Quilcene,WA 98376 With copy to Barbara Hough-Hood by email to bhood1996@gmail.com To Buyer: Peter Bahls,Director Northwest Watershed Institute 3407 Eddy Street Port Townsend,WA 98368 The foregoing addresses may be changed by written notice. SECTION 14 MISCELLANEOUS 14.1 Entire Agreement. This Agreement constitutes the entire agreement between the Parties. No other prior and contemporaneous negotiations, understandings and agreements, whether oral orwritten shall be deemed to exist or bind any of the Parties hereto. 14.2 Binding Nature. All rights and obligations arising out of this Agreement shall inure to the benefit of and be binding upon the respective successors, heirs, assigns, administrators, executors and marital communities, if any,of the Parties hereto. 14.3 Washington Law. This Agreement shall be construed, interpreted and enforced pursuant to the laws of the Buyer of Washington. Venue shall be in Jefferson County, unless this Agreement is assigned to a state agency in which case venue shall be in Thurston County. The terms of this Agreement shall be given their ordinary meaning and shall not be presumed construed in favor of or against either party hereto. 14.4 Time of the Essence. Time is of the essence of this Agreement. No waiver or consent to any breach or other default in the performance of any of the terms of this Agreement shall be deemed to constitute a waiver of any subsequent breach of the same or any other term or condition hereof. In the event time for performance falls on a weekend or legal holiday designated by the United Buyers or Washington Buyer, performance shall be deemed to be timely rendered if so rendered on the next business day. 14.5 Captions. The captions and section headings hereof are inserted for convenience purposes only and shall not be deemed to limit or expand the meaning of any section. Purchase and Sale Agreement 10 of 15 Dabob Bay Natural Area Hough 14.6 Invalidity. If any provisions of this Agreement shall be invalid, void or illegal, it shall in no way affect, impair or invalidate any of the other provisions hereof. 14.7 Counterparts. This Agreement may be signed in counterparts,any one of which shall be deemed an original. 14.8 Date of Agreement. The date of this Agreement shall be the date on which the last party executes this Agreement. Said date shall be inserted on the first page hereof when such date is determined. 14.9 Good Faith. Both Parties shall act reasonably and in good faith in order to consummate this transaction, and Seller shall neither sell nor dispose of any of the Property nor cause or suffer the creation of any matter of record, or defect in the title to the Property for the purpose of avoiding its obligation to close. 14.10 Default. In the event that either party defaults in the performance of any of that parry's obligations under this Agreement, the non-defaulting party shall have all remedies available in law or equity,but neither party shall be liable for consequential damages. 14.11 Attorneys' Fees and Costs. If either party is required to retain an attorney to bring suit or seek arbitration to interpret or enforce any provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, paralegal fees, accountant and other expert witness fees and all other fees, costs and expenses actually incurred and reasonably necessary in connection therewith, including those incurred on appeal, in addition to all other amounts provided by law, regardless of whether the matter proceeds to judgment or is resolved by the defaulting party curing the default. 14.12 Assignability. This Agreement shall not be assigned without the prior written consent of the other party except as otherwise provided in this Agreement. Seller may wish to gain certain tax benefits available to Seller under I.RC.§1031 by using a qualified intermediary to facilitate a delayed exchange for the Property to be conveyed under this Agreement. The qualified intermediary shall be released from any obligations under this Agreement. Seller shall remain fully liable to perform all obligations under this Agreement, including but not limited to Seller's representations, warranties and indemnification regarding the Property. Seller shall convey the Property directly to Buyer. The success or failure of the anticipated tax consequences from the I.R.C.§1031 delayed exchange shall not be deemed a term, condition, or contingency of this Agreement, nor shall such tax consequences be deemed a legal excuse for nonperformance by Seller. 14.13 Advice of Counsel. Seller acknowledges that it has had an opportunity to seek independent legal advice regarding the transaction. 14.14 Submission. This Agreement must be executed by Seller, and an original delivered to Purchase and Sale Agreement 11 of 15 Dabob Bay Natural Area Hough Buyer, at the address set forth in this Agreement, on or before 4:00 p.m. on February 9, 2024, to be considered by Buyer. This Agreement shall not be binding upon Buyer until signed by an authorized representative of Buyer. IN WITNESS WHEREOF, the Parties have executed this Agreement the date and year set forth opposite their respective names. SELLER: Thomas J. Hough Dated: ']61/. BUYER: NORTHWEST WATERSHED INSTITU I"L Dated: OV v 20 9-e 2`7 By: 0,76--„4._ PETER BAHLS Executive Director INDIVIDUAL ACKNOWLEDGMENT STATE OF WASHINGTON ) ss. COUNTY OF JEFFERSON ) On this/5' day of (vow-t.nAt.r;2024, before me personally appeared THOMAS J. HOUGH, to me known to be the person that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said person for the uses and purposes therein mentioned. Purchase and Sale Agreement 12 of 15 Dabob Bay Natural Area Hough Dated: Nr m L r 15 71)1,y Notary Public Print Name Ar.hac BROWN &a C`' Notary Public My commission expires Off,—Z L— 2 5 State of Washington Commission = 77938 My Comm. Expires Jun 22, 2025 (Use this space for notarial stamp/seal) Purchase and Sale Agreement 13 of 15 Dabob Bay Natural Area Hough BUYER ACKNOWLEDGMENT STATE OF WASHINGTON ) ) ss: COUNTY OF JEFFERSON ) On this 0-041Aday of /f/ov &ef, 2024, before me personally appeared PETER BAHLS, to me known to be the Executive Director of Northwest Watershed Institute that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that the execution of the instrument was duly authorized and that the seal affixed, if any, is the corporate seal of said corporation. In witness whereof I have hereunto set my hand and affixed my official seal this7n1-day of iC w)-e_-- 2r2 0'. mARIE FAO��, `.�� t�•QO gmbeP2 • �5 ��� Nota Public �0v � — Print ame V-Pr e.-N\CGre. �^[D�kl _.No , mN:2 = Mycommission expires P C��►- ►z 2�c • PUBLIC N••c4 • � MN•.cCr��• (Use this space for notarial stamp/seal) Purchase and Sale Agreement 14 of 15 Dabob Bay Natural Area Hough EXHIBIT A Legal Description of the Property (HOUGH) Tract 4, described as follows: That portion of the East 1/2 of the Southwest 1/4 of Section 15,Township 27 North,Range 1 West, W.M., described as follows: Beginning at the center of said Section; Thence South along the North and South center line of said Section, 758 feet to the True Point of Beginning; Thence West a distance of 752.77 feet to intersect the Easterly line of that certain tract of land sold to Gene Ray Myers by Real Estate Contract recorded March 8, 1971,Auditor's No. 208162;thence along said Myers Tract, South 15°42' S4" East, 19.22 feet; Thence continue along said Easterly line of Myers Tract, South 33° 56'38" East, 209.75 feet; thence continuing along said Easterly line of Myers Tract, South 34°96'24" East, 190.24 feet; Thence East a distance of 521.44 feet to intersect the North and South center line of said Section 15 at a point 350 feet South of the Point of Beginning; Thence North to the Point of Beginning. Situate in the County of Jefferson, State of Washington. Purchase and Sale Agreement 15 of 15 Dabob Bay Natural Area Hough S H 3609 Market Place West, Suite 201, University Place, WA 98466 p. 253.564.3230 I f. 253.564.3143 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. 0. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: 24 0 93-1325820 DLN: 17053259778026 NORTHWEST WATERSHED INSTITUTE Contact Person: 3407 EDDY STREET CLINTON L FORTNER ID# 31163 PORT TOWNSEND, WA 98368-0000 Contact Telephone Number: (877) 829-5500 Public Charity Status : 170 (b) (1) (A) (vi) Dear Applicant : Our letter dated JANUARY 2002, stated you would be exempt from Federal income tax under section 501 (c) (3) of the Internal Revenue Code, and you would be treated as a public charity, rather than as a private foundation, during an advance ruling period. Based on the information you submitted, you are classified as a public charity under the Code section listed in the heading of this letter. Since your exempt status was not under consideration, you continue to be classified as an organization exempt from Federal income tax under section 501 (c) (3) of the Code. Publication 557, Tax-Exempt Status for Your Organization, provides detailed information about your rights and responsibilities as an exempt organization. You may request a copy by calling the toll-free number for forms, (800) 829-3676 . Information is also available on our Internet Web Site at www.irs.gov. If you have general questions about exempt organizations, please call our toll-free number shown in the heading. Please keep this letter in your permanent records. Sincerely yours, (t140 Lois G. erner Director, Exempt Organizations Rulings and Agreements Letter 1050 (DO/CG) 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 Ordinary Income/Expense Income Grant Revenue 4010• Federal Funds 1,500,000.00 4020• Foundation 2,000.00 4030•State Funds 42,000.00 Total Grant Revenue 1,544,000.00 Contributed Income 4040• Restricted 131,000.00 4050• Unrestricted 120,000.00 Contributed Income-Other 0.00 Total Contributed Income 251,000.00 Rental/Lease Income 4165•Olson tideland lease 4,000.00 4175• Rental Income Reinertsen Rental 18,000.00 4182• Rental Income-Yarr Caretaker 6,000.00 Total Rental/Lease Income 28,000.00 Consulting/Miscellaneous 4210•Consulting Fees 2,000.00 Total Consulting/Miscellaneous 2,000.00 Total Income 1,825,000.00 Gross Profit 1,825,000.00 Expense Health benefits 6096• Health insurance 34,000.00 6094• HSA Contribution 10,600.00 Total Health benefits 44,600.00 6041 • Paypal Fees 300.00 6010•Advertising 100.00 6030•Automobile Expense 2,500.00 6040• Bank Service Charges 500.00 6060• Depreciation Expense 1,600.00 Insurance 6091 •Auto 4,000.00 6093•Liability Insurance 4,000.00 Total Insurance 8,000.00 Land Acquisition 6170•Closing Expenses 40,000.00 6150•Land 1,300,000.00 Land Acquisition-Other 0.00 Total Land Acquisition 1,340,000.00 6180• Licenses and Permits 0.00 6210•Miscellaneous 0.00 Payroll Expenses Gross wages 6237• Education Director 24,000.00 6231 • Director 90,000.00 6232• Stewardship Director 36,000.00 6233• Project Assistant 7,000.00 6234• Field Crew 88,000.00 Total Gross wages 245,000.00 Page 1 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 Payroll Taxes 6246• Paid Family and Medical Leave 0.00 6240• Medicare 3,500.00 6241 • Social Security 15,000.00 6243•Workers Comp 11,000.00 6245•WA State Unemployment 3,600.00 Total Payroll Taxes 33,100.00 Payroll Expenses-Other 0.00 Total Payroll Expenses 278,100.00 6250•Postage and Delivery 750.00 6260•Printing and Reproduction 750.00 Professional Fees 6271 •Accounting 1,500.00 6274• Legal Fees 2,000.00 Total Professional Fees 3,500.00 Program Expense 6284•Student Stipend 2,000.00 6282• Fees 1,600.00 6283•Project subcontractors 40,000.00 6286•Overrun 0.00 Total Program Expense 43,600.00 6290• Rent 12,000.00 Repairs and Maintenance 6350•Septic Repair 0.00 6310•Building Repairs 50,000.00 6320• Computer Repairs 250.00 6330•Equipment Repairs 3,000.00 Repairs and Maintenance-Other 500.00 Total Repairs and Maintenance 53,750.00 Supplies 6420•Field Supplies 30,000.00 6440• Office Supplies 2,000.00 Total Supplies 32,000.00 Taxes 6510• Property Taxes 5,000.00 Total Taxes 5,000.00 Telephone/Communications 6650• Mobile phone 1,800.00 6610• Internet Server 800.00 6620•Telephone-Local 0.00 Telephone/Communications-Other 0.00 Total Telephone/Communications 2,600.00 Travel&Ent 6720• Meals 140.00 Total Travel&Ent 140.00 Utilities 6810•Gas and Electric 600.00 Utilities-Other 0.00 Total Utilities 600.00 Page 2 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 9000•Suspense 0.00 Total Expense 1,830,390.00 Net Ordinary Income -5,390.00 Other Income/Expense Other Income 7010• Interest Income 10,000.00 Total Other Income 10,000.00 Other Expense 8016•Conservation Ease/Deed Restri 0.00 Total Other Expense 0.00 Net Other Income 10,000.00 Net Income 4,610.00 Page 3 Northwest Watershed Institute BOARD OF DIRECTORS 2024-25 Board Members and Affiliation and Term on the Board of Directors Officers Peter Bahls Peter Bahls is currently full time Executive Director and Conservation President,Vice-President, Biologist for Northwest Watershed Institute. Treasurer Term- 2023-2025 3407 Eddy Street Port Townsend,WA 98368 Jean Ball Jean Ball is a farmer and naturalist in Quilcene,Washington. Board Member Term- 2024-2026 10221 Center Road, Quilcene,WA 98368 Scott Calhoun Scott Calhoun studied biology and geology in college and graduate Board Member school where he specialized in shorelines and watersheds. He owns forestland in the Tarboo watershed. 5710 59th Ave NE Seattle,WA 98105 Term- 2024-2026 Janis Henry Janis Henry is a retired biotech patent attorney and chemist with over Secretary 30 years of experience.She is a life-long nature enthusiast and embraces adventure travel. 14445 SE 55th Street Bellevue,WA 98006 Term- 2023-2025 Gene Jones Gene Jones is a member of the Port Gamble S'Klallam Tribe and Board Member spiritual leader for four Tribes in the Olympic Peninsula region. 5860 NE Totten Road Term- 2023-2025 Poulsbo,WA 98370 Liz Hoenig Kanieski Liz Hoenig Kanieski has over 25 years of experience as a field biologist, environmental educator,and environmental planner.Much of her work 1005 Lawrence Street has focused on watershed protection,citizen engagement and water Port Townsend,WA 98368 resources. Term-2023-2025 Keith Lazelle Keith Lazelle is an award-winning nature photographer who lives on Board Member Dabob Bay.His work has been used by many environmental organizations including Audubon,Hoh River Trust,The Nature PO Box 192 Conservancy,and NWI. Quilcene,WA 98376 Term- 2024-2026 Northwest Watershed Institute STAFF ROSTER 2025 Peter Bahls, Executive Director Wesley Meyers, Stewardship Director Megan Brookens, Education and Outreach Director Robin Enge, Administrative Assistant Eva Ellis, Field Crew Bernt Goodson, Field Crew Zack Hawkes, Field Crew Hanna Petersen, Field Crew Veronica Phelan, Field Crew Grace Rabbitt Burke, Field Crew Trevor Williams, Field Crew Abel Dances, Carpenter 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 Ordinary Income/Expense Income Grant Revenue 4010• Federal Funds 2,057,763.40 4020• Foundation 1,614.27 4030•State Funds 41,710.22 Total Grant Revenue 2,101,087.89 Contributed Income 4040• Restricted 130,710.00 4050• Unrestricted 116,423.00 Contributed Income-Other 520.00 Total Contributed Income 247,653.00 Rental/Lease Income 4165•Olson tideland lease 4,000.00 4175• Rental Income Reinertsen Rental 7,673.37 4182•Rental Income-Yarr Caretaker 4,139.46 Total Rental/Lease Income 15,812.83 Consulting/Miscellaneous 4210•Consulting Fees 1,155.00 Total Consulting/Miscellaneous 1,155.00 Total Income 2,365,708.72 Gross Profit 2,365,708.72 Expense Health benefits 6096• Health insurance 31,075.72 6094• HSA Contribution 10,300.00 Total Health benefits 41,375.72 6041 • Paypal Fees 289.80 6010•Advertising 127.05 6030•Automobile Expense 2,033.19 6040•Bank Service Charges 499.77 6060•Depreciation Expense 1,600.00 Insurance 6091 •Auto 4,130.00 6093• Liability Insurance 4,059.45 Total Insurance 8,189.45 Land Acquisition 6170•Closing Expenses 0.00 Total Land Acquisition 0.00 6180• Licenses and Permits 15.00 6210• Miscellaneous 163.37 Payroll Expenses Gross wages 6237• Education Director 23,754.50 6231 • Director 73,333.48 6232•Stewardship Director 33,682.00 6233•Project Assistant 6,119.00 6234•Field Crew 86,245.20 Total Gross wages 223,134.18 Page 1 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 Payroll Taxes 6246• Paid Family and Medical Leave 1.19 6240• Medicare 3,305.81 6241 • Social Security 14,169.09 6243•Workers Comp 10,942.09 6245•WA State Unemployment 3,687.53 Total Payroll Taxes 32,105.71 Payroll Expenses-Other 4,853.32 Total Payroll Expenses 260,093.21 6250• Postage and Delivery 744.74 6260• Printing and Reproduction 758.11 Professional Fees 6271 •Accounting 1,375.00 6274•Legal Fees 324.50 Total Professional Fees 1,699.50 Program Expense 6284• Student Stipend 0.00 6282• Fees 1,553.89 6283• Project subcontractors 82,835.44 6286•Overrun 68.55 Total Program Expense 84,457.88 6290• Rent 12,000.00 Repairs and Maintenance 6350• Septic Repair 9,769.44 6310• Building Repairs 9,207.34 6320•Computer Repairs 248.20 6330• Equipment Repairs 2,868.14 Repairs and Maintenance-Other 474.37 Total Repairs and Maintenance 22,567.49 Supplies 6420• Field Supplies 8,204.99 6440•Office Supplies 1,951.11 Total Supplies 10,156.10 Taxes 6510• Property Taxes 4,963.81 Total Taxes 4,963.81 Telephone/Communications 6650• Mobile phone 1,567.40 6610• Internet Server 758.50 6620•Telephone-Local 81.26 Telephone/Communications-Other 142.28 Total Telephone/Communications 2,549.44 Travel&Ent 6720•Meals 144.65 Total Travel&Ent 144.65 Utilities 6810•Gas and Electric 696.03 Utilities-Other 770.16 Total Utilities 1,466.19 Page 2 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 9000•Suspense 267.06 Total Expense 456,161.53 Net Ordinary Income 1,909,547.19 Other Income/Expense Other Income 7010•Interest Income 9,952.06 Total Other Income 9,952.06 Other Expense 8016•Conservation Ease/Deed Restri 782,040.09 Total Other Expense 782,040.09 Net Other Income -772,088.03 Net Income 1,137,459.16 Page 3 12:55 PM Northwest Watershed Institute 01/10/25 Balance Sheet Accrual Basis As of June 30, 2024 Jun 30,24 ASSETS Current Assets Checking/Savings First Fed CD-3090 51,430.51 First Federal CD-3091 51,523.58 First Fed Savings 52,417.11 1020•Checking-Kitsap 59,986.66 Total Checking/Savings 215,357.86 Accounts Receivable 1200•Accounts Receivable 22,048.75 Total Accounts Receivable 22,048.75 Other Current Assets 1250• Prepaid Insurance 2,115.50 1300• Employee advance 163.88 1499• Undeposited Funds 111,313.33 Total Other Current Assets 113,592.71 Total Current Assets 350,999.32 Fixed Assets 1513•Vehicle-2001 Ford xtra Cab 8,000.00 1554•Trailers 4,000.00 1512•Vehicle-Ford pickup 4,150.00 1530• Kubota Tractor 16,709.10 1590•Accumulated Depreciation -28,592.08 Property 1555•Capital Improvements 3,035.20 1551 • Land 2,197,217.48 Total Property 2,200,252.68 Total Fixed Assets 2,204,519.70 TOTAL ASSETS 2,555,519.02 LIABILITIES&EQUITY Liabilities Current Liabilities Accounts Payable 2000•Accounts Payable 5,965.77 Total Accounts Payable 5,965.77 Other Current Liabilities 2100• Payroll Liabilities 2105•Fica,Medicare,FWH Payable 5,148.22 2109•WA-Paid Fam Med Leave Emp. 446.33 2120•Workers Comp Payable 5,013.23 2130•SUTA&EAF Payable 1,663.44 2125• FUTA Payable 267.06 2100• Payroll Liabilities-Other 489.77 Total 2100• Payroll Liabilities 13,028.05 2250• Rental Security Deposit 3,000.00 Total Other Current Liabilities 16,028.05 Total Current Liabilities 21,993.82 Total Liabilities 21,993.82 Page 1 12:55 PM Northwest Watershed Institute 01/10/25 Balance Sheet Accrual Basis As of June 30,2024 Jun 30,24 Equity 1110• Retained Earnings 1,396,066.04 Net Income 1,137,459.16 Total Equity 2,533,525.20 TOTAL LIABILITIES&EQUITY 2,555,519.02 Page 2 /VVY • 3407 Eddy Street I Port Townsend, Washington 98368 Northwest voice 360.385.6786 fax 360.385.2839 Watershed Institute email peter@nwwatershed.org I www.nwwatershed.org Memo To: Tarboo Creek Conservation Project File From:Peter Bahls, Executive Director CC: Date: February 25, 2025 Re: Executive Committee Resolution to Submit Jefferson County Conservation Futures 2025 Application for the Toandos Forest project. At its Annual Board Meeting of June 21, 2024, the Board of Directors of Northwest Watershed Institute unanimously approved the following resolution — An executive committee comprised of Peter Bahls and Janis Henry shall serve as an executive committee to have the power to make on-going decisions between Board meetings per the existing by-laws. On February 25, 2025 the executive committee approved the following resolution — DECIDED — Northwest Watershed Institute shall sponsor and submit a grant application for Jefferson County Conservation Futures 2025 Program for the Toandos Forest project within the boundaries of the state's Dabob Bay Natural Area. Priority: The Toandos Forest property is 6x the size of the Upper Yarr property and is at high risk of development if JCCF funding is not awarded, so it is considered the top priority for NWI. Peter Bahls Janis Henry President Secretary 1 February 27, 2025 Peter Bahls, Executive Director Northwest Watershed Institute 3407 Eddy Street Port Townsend, WA 98368 Dear Mr. Bahls: I understand that Northwest Watershed Institute is applying for Jefferson County Conservation Futures(JCCF)grant funding to acquire and protect Toandos Forest,6.38 acres of forestland within the state's Dabob Bay Natural Area boundaries. If successful,the grant funding will protect the forest under county deed restrictions and allow older forest habitats to develop,while permitting some limited harvest of trees and other forest products. We strongly support this project and want to convey the importance of the forest as a cultural resource to the Tribes. The JCCF grant application states that cultural resources include "...traditional, religious,ceremonial,and social uses and activities of affected Indian Tribes...". I want to make it clear that the Toandos Forest is a cultural resource under this definition and the proposed plan for protection and restoration would help grow its importance. Four tribes- Port Gamble S'Klallam Tribe,Jamestown S'Klallam Tribe, Lower Elwha S'Klallam Tribe, and Skokomish Tribe-are signatories to the Point No Point Treaty and retain the right to hunt and gather within their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to rely upon the forests of the region, as they have for thousands of years,as places where they gather traditional food, medicine, and materials for use in all aspects of their cultural life, including social and religious. Currently,the Tribe is enjoying a renaissance of weavers and artists using traditional methods and materials; especially materials from the cedar tree. For example,tribal members harvest the inner bark of large cedar trees for weaving baskets and clothing used for ceremonial purposes.They also harvest wood from cedar, big leaf maple, and alder trees to make large box drums, masks,and other traditional objects that the Tribes have used for thousands of years for religious and social ceremonies. However,with the conversion of vast areas to private industrial tree farms and development projects, it is increasing difficult for the Tribes to access forests suitable for traditional cultural uses. The proposed project will protect an important cultural resource for the Tribes:a growing native forest where,with good stewardship,the benefits to the Tribes will continue to grow as the forest develops into an older, biologically diverse forest with a large variety of indigenous plants and trees of cultural importance.The Tarboo forest is significant not just for the materials it can offer over time, but the opportunity for the Tribe to harvest locally;the process of harvesting itself is infused with traditional, social and religious meaning that we want to pass on to the coming generations. Sincerely, r'w�)1An Laura Price Cultural Resources Director Port Gamble S'Klallam Tribe 31912 Little Boston RD NE Kingston WA 98346 Office: 360-297-9655 Cell: 360-509-7723 EXAMPLE OF RE-RECORD OF SWD FOR CONSERVATION FUTURES PURPOSES AFTER RECORDING RETURN TO: Northwest Watershed Institute 3407 Eddy Street Port Townsend, WA 98368 DOCUMENT TITLE: Statutory Warranty Deed—Re-Record GRANTOR: Rosie L.von Engel GRANTEE: A'orthwwest Watershed Institute ABBREVIATED LEGAL DESCRIPTION(Complete description on Page 1): S29 T28 R1 W Tax 2 ASSESSOR'S TAX PARCEL NUMBER(S): 801 293 003 REFERENCE NUMBERS OF RELATED DOCUMENTS: 658592 The parties are re-recording the Statutory Warranty Deed, recorded on 01/17/2023 in the official records of Jefferson County, Washington, under Auditor's File No. 658592 (a copy of which is attached hereto as Exhibit A), for the sole purpose of including language required by Jefferson County providing funding to Grantee Northwest Watershed Institute's acquisition of the property described in said Statutory Warranty Deed, and without additional consideration from Grantee to Grantor. 1 4899-1951-4625v.6 0046182-000042 STATUTORY WARRANTY DEED (RE-RECORD) THE GRANTOR Rosie L.von Engel,now according to the application for title insurance Rose/Marie Ludmilla von Engel,as her separate estate for an in consideration of TEN DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERATION in hand paid, conveys and warrants to Northwest Watershed Institute,a Washington nonprofit corporation the following described real estate, situated in the County of Jefferson, State of Washington(the"Property"): Tax Parcel Number(s): 801 293 003 That portion of the North 100 feet of the Southeast%of the Southwest'/4 of Section 29, Township 28 North,Range 1 West, W.M. and that portion of the Northeast%of the Southwest % of said Section 29 lying Easterly of the Quilcene-Center County Road right of way as conveyed by Deed recorded March 13, 1956 under Auditor's File No. 149069 and Southerly of the Old Tarboo Lake Road as conveyed by Deed recorded March 1, 1948 under Auditor's File No. 112974, in Jefferson County,Washington; Together with the West 158 feet of the North 100 feet of the Southwest'/4 of the Southeast'/4 in said Section 29. Situate in the County of Jefferson, State of Washington. SUBJECT TO: Covenants, Conditions, Restrictions, Easements, Plats and Surveys, if any, affecting title,which may appear in the public record Grantee's costs of acquiring the Property were provided in part by grant funding from the Jefferson County Conservation Futures property tax authorized by Washington law. Grantee hereby agrees to be bound by Jefferson County Code(JCC) 3.08.030(9), the uses authorized under RCW 84.34.230, including the obligation to ensure the long-term conservation of the Property in accordance with the terms and conditions of this Notice of Grant Restrictions and Restrictive Covenants for Conservation Purposes, and to obtain the consent of Jefferson County prior to any conveyance of any interest acquired hereby. Consistent with JCC 3.08.030(9), the Property shall not be converted to a different use unless and only if other equivalent lands or interest in lands within Jefferson County are received by Grantee in exchange. {Signature page(s) to follow) 2 4899-1951-4625v.6 0046182-000042 IN WITNESS WHEREOF, Grantor has caused this instrument to be executed and delivered as of the day of , 2025. GRANTOR: Rosie L. von Engel State of Washington ) ) ss. County of ) On this day of , 2025, Rosie L. von Engel, known to me or proved by satisfactory evidence to be the individual described in this instrument, acknowledged before me that she signed this instrument as her free and voluntary act and deed for the uses and purposes stated therein. Notary Public for State of Washington Residing at: My commission expires: 3 4899-1951-4625v.6 0046182-000042 IN WITNESS WHEREOF, Grantee has caused this instrument to be executed and delivered as of the day of , 2025. GRANTEE: NORTHWEST WATERSHED INSTITUTE By: Its: Date: State of Washington ) ) ss. County of ) On this day of , 2025, Peter Bahls, known to me or proved by satisfactory evidence to be the individual described in this instrument, acting in his capacity as Executive Director of Northwest Watershed Institute, acknowledged before me that he signed this instrument as the free and voluntary act and deed of such corporation for the uses and purposes stated therein. Notary Public for State of Washington Residing at: My commission expires: 4 4899-1951-4625v.6 0046182-000042 EXHIBIT A Original Statutory Warranty Deed {attached} 5 4899-1951-4625v.6 0046182-000042 ���5 C�ti co ,, 2a. 2025 Jefferson County Conservation Futures Fund Program 95iii No\'' Property Acquisition Project and/or Operations and Maintenance Project Application Please complete the following application in its entirety. Be sure to answer "N/A"for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at(360)379-4498 or tpokorny@co.iefferson.wa.us with questions. Background and Eligibility Information 1. Project Title: Upper Yarr Creek Protection 2. Conservation Futures Acquisition Request: $26,000 Conservation Futures O&M Request: $0 3. Total Conservation Futures Request: $26,000 4. Please indicate the type of interest contemplated in the acquisition process. X Warranty Deed OR Easement Other(Please describe below.) In whose name will the property title be held after acquisition? Northwest Watershed Institute 5. Applicant Information Name of Applicant or Organization: Northwest Watershed Institute Contact: Peter Bahls Title: Executive Director/Conservation Biologist Address: 3407 Eddy Street, Port Townsend, WA 98368 Phone: (360) 821-9566, ext. Fax: ext. Email: peter@nwwatershed.org 6. Sponsor Information: (if different than applicant) Same Organization Name: Contact: Title: Address: Phone: . Fax: ( ) - , ext. This application was approved by the sponsor's legally responsible body(e.g., board, council, etc.) on February 25, 2025 1 2025 CFF Program Application 7. Project Location Street Address or Description of Location: 12 Old Tarboo Road, Quilcene Driving Directions from Port Townsend: South on Center Road, left at Old Tarboo Road and park Section: 29 Township: 28 N Range: 1 W Assessor's Parcel Number(s): 801-293-003 Please differentiate current and proposed ownership of each APN and indicate if the parcel is to be acquired with CF funds or used as match. The parcel is to be acquired with CF funds Please list the assessed values for each property or APN, as applicable. 801-293-003 = $34,125 8. Existing Conditions New Site: Yes No Number of Parcels: 1 Addition to Existing Site: Yes No Acres to Be Acquired: 1.03 Total Project Acreage(if different): Current Zoning: 1 per 5 Existing Structures/Facilities: No Any current covenants, easements or restrictions on land use: No Current Use: Vacant land Waterfront(name of body of water): Yarr Creek, tributary to Tarboo Creek Shoreline(linear feet): NA Owner Tidelands/Shorelands: NA 9. Current Property Owner X is _is not a willing seller. Project Description 10. In 1,000 words or less,provide a summary description of the project,the match, and why you think preserving this property is important.Name three top objectives for the property(other than those related to funding). Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Fund Program funds including: vegetation,topography, surrounding land use,and relationship to parks, trails, and open space. Describe the use planned for the site, any development plans after acquisition(including passive development),characteristics of the site which demonstrate that it is well-suited to the proposed use, and plans for any structures currently on the site. If applicable, describe how the site project relates to a larger conservation program(please identify), and whether the project has a plan,schedule and funding dedicated to its completion. Please also list any important milestones for the project or critical dates,e.g. grant deadlines. List the dates and explain their importance. Please attach a spreadsheet of the budget. Background, goals, and objectives 2 2025 CFF Program Application Since 2002, Northwest Watershed Institute (NWI), Jefferson Land Trust, and over 40 partnering organizations have been working on a landscape scale project to protect and restore the Tarboo- Dabob Bay watershed, with over 4,000 acres conserved to date. The three main objectives of the conservation effort are to: 1) protect and restore the stream and wetland corridor, from the headwaters of Tarboo Creek to Dabob Bay, 2) conserve uplands for sustainable forestry, 3) preserve lands within the Dabob Bay Natural Area. For this project, NWI proposes to permanently protect a one acre parcel of critical stream and riparian habitat along Upper Yarr Creek. NWI purchased the property in 2023 to prevent development that would have impacted water quality,wildlife habitat, and downstream salmon habitat in Yarr Creek and Tarboo Creek. The Jefferson County Conservation Futures Manual does not appear to prevent a conservation organization from securing reimbursement toward a property purchased prior to the grant agreement being in place. The manual does require that a Statutory Warranty Deed (SWD) be placed on the property that includes a paragraph of specific deed restriction language required by the county. Since this property was purchased by NWI in 2023, NWI is requesting county approval for reimbursement toward the fee simple appraised value of the property through one of two methods: 1) after the Conservation Futures grant agreement is in place, NWI re-records the Statutory Warranty Deed and includes the county's required language (see Supplemental information for example of the re-record of deed restriction), or 2) prior to signing a Conservation Futures grant agreement, NWI sells the property to an interim private buyer, then after the grant agreement is place, NWI purchases the property back and records a new SWD with the addition of the county's deed restrictions. Proposed uses The Property will be owned and stewarded by NWI as a unit of the Tarboo Wildlife Preserve. The property will serve as one of the places NWI brings students and other groups for field tours and educational trips to learn about the Tarboo watershed and stream habitats. Critical dates and urgency To afford permanent protection and stewardship of the property, NWI needs to secure at least partial reimbursement for the purchase made in 2023. The property has no deed restriction on it at present and NWI may need to sell the property in the future without funding to help fund the purchase and long term stewardship. 1 1. Estimate costs below, including the estimated or appraised value of the propert(ies) or property right(s)to be acquired, even if Conservation Futures Fund funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. 3 2025 CFF Program Application JCCF Match to Total Request JCCF Cost Timeline Acquistion NWI Upper Yarr Ck property 20,000 20,000 40,000 Aug-25 Acquisition Related Costs: Aug-25 Deed recording/legal/closing costs 1,000 1,000 Appraisal 5,000 5,000 Operations and Maintenance (O&M) Stewardship Plan 3,400 3,400 Sep-25 Project management and administration 2,600 2,600 Mar-25-Sept 25 Total Project Costs 26,000 26,000 52,000 Percent match to JCCF 50% Estimated or Appraised Value of Propert(ies)to be Acquired: $40,000 Total Estimated Acquisition-related Cost(see Conservation Futures Manual for eligible costs): $8,600 Total Operation and Maintenance Cost: $3,400 Total Project Cost: $52,000 Basis for Estimates (include information about how the property value(s)was determined, anticipated acquisition- related costs, general description of operation and maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work): Estimate of fee simple fair market value is based on a sale of property to NWI in 2023 for$37,000 and some increase since then. Scored Questions 1. To what degree does the project leverage contributions for acquisition from groups, agencies or individuals? Sponsors or other organizations are required to contribute to acquisition of the proposed site and/or operation and maintenance activities. 1 a. Please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures Fund program funds. Describe 1 b. Matching Fund Estimate Acquisition O&M Conservation Futures Funds Requested $26,000 $0 50% Matching Funds/Resources* $22,600 $3,400 50% Total Project Acquisition Cost $48,600 $3,400 100% 4 2025 CFF Program Application *If a prior acquisition is being proposed as match,please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. 1 c. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when? NWI land match $20,000 Yes No 2025 Yes No 2025 NWI labor donation $6,000 Yes No 2025 Yes No 2025 NOTE: Fifty-percent(50%) matching funds are required, and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation of property or a property right can be considered as a matching resource. Donation of resources for on-going maintenance or stewardship ("in- kind"contributions) are not eligible as a match. 2. To what degree has the project sponsor identified the long-term stewardship issues for the proposed project? 2 a. Identify any factors, threats, or stressors that could negatively affect the conservation values and/or community benefits for which the property would be conserved. No major stewardship issues. Property boundaries have been surveyed and marked.Adjoining property on two sides is permanently protected for forestry under conservation easement by Leopold-Freeman Forests. 2 b. Describe the management strategies that the stewardship plan will include to address the identified factors, threats, or stressors, including any actions planned to make these negative outcomes or impacts less likely. Stewardship plan will the following management strategies: baseline assessment and restoration and stewardship plan to include: debris cleanup, annual monitoring for weed control and encroachment issues, road decommission and revegetation, potential selective thinning (non- commercial), and tree planting as needed to help restore older forest habitat and species and structural diversity. 2 c. Describe any existing water rights, and current uses of water. Identify any conservation values currently being protected that are dependent on these sources of water. No water rights and no use of water on the property. 3. To what degree has the project sponsor demonstrated effective long-term stewardship of a similar project? 3 a. Describe the sponsoring agency's previous or on-going stewardship experience. Northwest Watershed Institute is a nonprofit conservation organization that provides scientific, technical and on-the-ground support for watershed restoration and has been conducting habitat stewardship and restoration projects in the Tarboo watershed for over 20 years. NWI employs 5 2025 CFF Program Application conservation biologists and professional restoration field crew and has extensive experience stewarding and managing the Tarboo Wildlife Preserve and private and state conservation properties using professional staff, experienced field crew, contractors, and volunteers. 3 b. Has the project sponsor and/or applicant been involved in other projects previously approved for Conservation Futures Fund funding? No,neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures Fund funds. X Yes,the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures Fund funds.Please provide details: Yes. NWI has been involved in eleven previous successful Conservation Futures funded projects in the Tarboo watershed including nine conservation easement projects proposed jointly by NWI and JLT and two fee simple projects. NWI is now completing the West Slope Forest acquisition funded in 2024. 4. To what degree is the project a part of an adopted open space, conservation, or resource preservation program or plan that was open to public review and comment, or identified in a community conservation effort that provided opportunities for public input? The proposed acquisition: X is specifically identified in an adopted open space, conservation, or resource preservation program or plan,or community conservation effort,that provided opportunities for public review and comment. Please describe below, including this project's importance to the plan. Please also reference the website of the plan if available or include the plan with this application. _complements an adopted open space or conservation plan that was open to public review,but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. _is a stand-alone project,or part of a project that was not open to public review. Jefferson Land Trust's Jefferson County Conservation Plan (2010) generally identifies the Property as within a priority forest conservation area. https://www.saveland.org/wp- content/uploads/2016/06/2010 JLT ConservationPlan LoRes.pdf More specifically, the Property is within two mapped priority areas of the Tarboo Creek/Dabob Bay Implementation Strategy, a Sub-Plan of JLT's Jefferson County Conservation Plan (2010).Those priority areas are: 1) the priority habitat stream corridor area and 2) the priority forests area. The Property is a top priority in Northwest Watershed Institute's Tarboo Watershed Conservation Strategy to protect and restore the stream and wildlife corridor of Tarboo Creek (Objective 1) and also fits within the Forestland protection objective (objective 3) http://www.nwwatershed.org/tarboo-watershed-conservation-strategy.html 6 2025 CFF Program Application The proposed properties are within a large priority terrestrial conservation area identified and mapped in the Willamette Valley-Puget Trough--Georgia Basin Ecoregional Assessment(2004 Floberg et al).This priority area includes much of the Tarboo and Thorndyke watersheds. The Ecoregional plan, developed by Washington Department of Fish and Wildlife and The Nature Conservancy, is one of the primary conservation plans for Puget Sound and has received extensive public and scientific review. 5. To what degree does the project conserve opportunities which are otherwise lost or threatened? 5 a. The proposed acquisition site X does _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 5 b. If applicable, please carefully describe the nature and immediacy of the threat, and any unique qualities about the site. NWI purchased the property in 2023 in a bidding war with another potential buyer who wanted to move onto the property with a trailer and storage containers that would likely have caused severe impacts to Yarr Creek, its riparian habitat, and downstream habitat on Tarboo Creek and NWI's Tarboo Wildlife Preserve. The property is comprised mostly of critical habitat of Yarr Creek, its riparian forest and associated steep slope ravines. If NWI cannot secure funding to protect the property under county deed restriction and help fund long term stewardship, NWI may need to sell the parcel and it could be heavily impacted by inappropriate residential development. 6. Are the conservation values of the project commensurate with or greater than the amount of CFF funds requested, and will both the timeframes for meeting project objectives and associated metrics demonstrate achievement of the conservation objectives? 6 a. Summarize the project's conservation values and how the CFF funds requested support these values. The project's conservation values are extremely high relative to CF funds requested because the project is low cost and most of the acreage represents critical stream and riparian habitat. Upper Yarr Creek flows into Tarboo Creek on the Tarboo Wildlife Preserve, so protection of this small critical parcel helps secure water quality and important salmon habitat downstream. The property also adjoins permanently conserved forestlands on two sides, so protection of this parcel will help long term wildlife connectivity of the larger area. 6 b. Summarize how the project's conservation values are related to the project's specific objectives. The project's conservation values of stream, salmon habitat, and water quality, as well as wildlife habitat and connectivity are directly served by NWI's objective to fully and permanently protect the parcel as a unit of the Tarboo Wildlife Preserve. 7. To what degree does the project preserve habitat for flora and fauna other than habitat for anadromous fish species? 7 a. X provides habitat for State of Washington Priority Habitat specific to the project and/or State or Federal (NOAA and USFWS) Candidate, Endangered, Threatened or Sensitive species (provide list and references). 7 2025 CFF Program Application 7 b. X provides habitat for native flora and fauna. Identify the documented habitat(s) and native flora or fauna species that will be protected by the project. 7 c. X contributes to a wildlife corridor or migration route identified by Washington Connectivity Working Group or other peer-reviewed source. If affirmative in any of the above, please describe and list the Priority Habitat(s) and Threatened, Endangered, or Sensitive species below, and cite or provide documentation of species'use.' Priority and Listed Species on-site Tarboo Creek tributaries Priority Riparian Habitat Western toad (nearby) State Candidate and Federal Species of Concern Pileated woodpecker (on site) State Candidate Documented observations by Peter Bahls, NWI Listed Species benefited downstream in lower Yarr Creek and Tarboo Creek: Puget Sound steelhead (likely) State Candidate and Federal Threatened Hood Canal coho salmon (Yarr Ck) Federal Species of Concern Western Brook lamprey(likely) Federal Species of Concern Documented in WDFW fish distribution mapping and NWI survey data Listed Species benefited downstream in Tarboo-Dabob Bay (documented rearing habitat) Hood Canal summer chum salmon State Candidate and Federal Threatened Puget Sound Chinook salmon State Candidate and Federal Threatened Documented in NWI's nearshore fish survey report- http://www.nwwatershed.org/uploads/pdf/tarbooFishSurvey.pdf Provides habitat for a variety of native flora and fauna The project will protect stream, riparian and forest habitats that support a high diversity of at-risk fish, bird, amphibian, and mammal species that occur in Pacific Northwest forests, including western toad, amphibians, bats, bear, cougar, blacktail deer, and neo-tropical migratory birds. The property comprises stream and riparian habitat along the Yarr Creek ravine, especially important for birds and other wildlife. Wildlife corridor The property is a small but critical piece of a long-term effort to protect a significant wildlife corridor from the Tarboo valley to the uplands along Yarr Creek and also directly connects with large protected forestlands. For example, during the Conservation Futures field tour, a radio collared cougar named Yenewes was on a kill site on lower Yarr Creek about% mile away. She has a den with three cubs on the other side of Center Road and is frequently tracked in this area (Matt Mahan, Panthera project). I See, for example,http://www.dnr.wa.gov/researchscience/topics/naturalheritage/pages/amp nh.aspx http://www.wdfw.wa.gov/conservation/phs/list/ http://www 1.dnr.wa.gov/nhp/refdesk/plants.html http://www 1.dnr.wa.gov/nhp/refdesk/pubs/wa ecological systems.pdf 8 2025 CFF Program Application 8. To what degree does the project protect habitat for anadromous fish species? 8. Describe to what degree the project protects habitat for anadromous fish species (for example: marine shorelines, stream or river corridors including meander zones, and riparian buffers). Please provide documentation and maps that demonstrate the location, quality and extent of the existing buffer and adjoining habitat. Upper Yarr Creek is listed in DNR's stream type mapping as fish bearing, and cutthroat may occur. Lower Yarr Creek, about one-quarter mile downstream, has documented use as spawning habitat by coho salmon and coastal cutthroat trout (per NWI spawning surveys since 2002). The project will protect downstream water quality for salmon in Yarr Creek and Tarboo Creek, as well as helping protect water quality of Dabob Bay, used by juvenile rearing salmon. Listed Species benefited in adjacent downstream Yarr Creek and Tarboo Creek: Puget Sound steelhead (historic) State Candidate and Federal Threatened Hood Canal coho salmon Federal Species of Concern Western Brook lamprey Federal Species of Concern Listed Species benefited downstream in Tarboo-Dabob Bay (documented rearing habitat) Hood Canal summer chum salmon State Candidate and Federal Threatened Puget Sound Chinook salmon State Candidate and Federal Threatened 9. To what degree does the project preserve farmland for agricultural use OR preserve forestland for forest management? 9 a. Describe the extent and nature of current and planned agricultural use or forest management activities of the proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds. Forest management(non-commercial) will be conducted for restoration purposes, such as weed control, hand selective thinning of young alder, planting of native tree species to restore older forest habitat.These activities will be detailed in the proposed Stewardship Plan. 9 b. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. Complete protection of the parcel will allow for full preservation and restoration of soils,water quality, and other watershed functions over time. 9 c. Does this project preserve a mix of quality farmland and forestland? This specific project involves forestland and habitat protection and does not include agriculture. However, if the definition of agriculture is broadened to include native food foraging, the Property has potential for gathering of black truffles and other edible mushrooms and deer hunting. In addition, although this property does not include agricultural lands,within the context of the large conservation effort for the Tarboo-Dabob Bay watershed, NWI,JLT, and partners are preserving a mix of agricultural lands,forestlands, wetlands, and wildlife habitats. 9 2025 CFF Program Application 10. To what degree does this project increase resiliency to and mitigation of climate change, and is the project's scale significant in regards to increasing climate resiliency? 10. Describe how this project will increase resiliency to and mitigation of climate change. Is the project's scale significant in regards to increasing climate resiliency? This project will increase habitat and wildlife resilience to climate extremes of winter flooding and summer high temperatures by: 1) protecting riparian vegetation and their undisturbed steep slopes that are vulnerable to increased erosion and sediment impacts to stream habitats during winter flooding, and 2) protecting riparian forests and their ability to provide shade that will help reduce summer stream temperatures and impacts to fish. 11. What area does the project serve? 11 a. Describe how the proposed acquisition benefits primarily a local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. Although the project acreage is small, it benefits a broad county area because it is a key part of a conservation project that extends from the headwaters of Tarboo Creek to the state's Dabob Bay Natural Area to protect and restore habitats and wildlife connectivity on a landscape scale. In particular,the project proposes protection of a critical section of Yarr Creek,where, if developed, there would likely be outsized impacts on downstream salmon habitat, adjoining protected habitats of the Leopold-Freeman Forest and the Tarboo Wildlife Preserve, and potentially the water quality of Dabob Bay, regionally important for shellfish production and public recreation. 11 b. Is the project located in an area that is under-represented by CFF funded Projects?Areas that Conservation Futures has not been able to support to date include, Toandos Peninsula, Dosewallips Valley, Bolton Peninsula, and the West End. No. 12. To what degree is the applicant committing to providing educational opportunities, interpretive opportunities, and/or serve as a general community resource that does not reduce the conservation value(s) of the project? 12. Describe the educational or interpretive opportunities that the applicant will provide for public access, educational or interpretive displays (signage, kiosks, etc.) on the proposed site, including any plans to provide those improvements and any plans for public accessibility that will not reduce the conservation value(s) of the project.2 Provide the time frames when each of the above will be implemented. The Property is easily accessible from Center Road and NWI plans to use it as site for supervised field trips of the Tarboo watershed for NWI's education programs for students and community members. As described in the letter from the Port Gamble S'Klallam Tribe, the Property will also serve an important place for the Tribes to pass on traditions of sustainable gathering of forest plants used for cultural purposes and ceremonies. 2 The words "education"and"interpretation" are interpreted broadly by the CFF Committee. 10 2025 CFF Program Application The Property is also available for public access by prior permission, including deer hunting, berry picking, and mushroom picking,three important recreational uses in rural areas 13. To what degree does the project preserve historic or culturally significant resources3? 13. The proposed acquisition includes historic or culturally significant resources4 and is registered with the National Register of Historic Places, or an equivalent program. X is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. none of the above. If affirmative in any of the above,please describe below, and cite or provide documentation of the historical cultural resources. Please see letter from Laura Price, Cultural Resources Director for the Port Gamble S'Klallam Tribe, that attests to the importance of this Property for preserving and restoring cultural resources. The Port Gamble S'Klallam Tribe,Jamestown S'Klallam Tribe, Lower Elwha S'Klallam Tribe, and Skokomish Tribe are signatories to the Point No Point Treaty and retain the right to hunt and gather within their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to rely upon a diversity of intact native plant communities in the region, as they have for thousands of years, as places where they gather traditional food, medicine, and materials for use in all aspects of their cultural life, including social and religious. The project site's forest is easily accessible and will provide resources for tribal uses, such as cedar bark for basket weaving. If funded,the project will permanently conserve the forest while allowing sustainable harvest and gathering to maintain tribal cultural traditions. Standalone 0 & M Projects 14. Applications for standalone Operation and Maintenance funding to be scored on a scale of 1- 100 based on information provided. Consider the CFF Manual and the topics below, for example: 14. Please describe in detail, the reason 0& M funds are needed, proposed 0& M activities, and how they protect resources cited in the original acquisition project. Attach additional information such as up-to-date stewardship plan, maps, field reports, work plan, budget, timeline, etc., to support the application, if appropriate. 0 & M projects must address a compelling, immediate need. Specifically include whether the project has an up- to-date stewardship plan. If there is such a plan, is it being implemented and is the proposed 0& M work specifically included in the plan? Also, describe any unforeseen or urgent threats to the resource conservation ' Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. 11 2025 CFF Program Application Viati- y - values of the site and whether the proposed 0&M activities will mitigate those threats and/or prevent potential future threats. Verification 15. Sponsor commitments: 15 a. Sponsors of projects that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved,or three years after the acquisition funds are disbursed to the applicant,whichever is later.The progress report must address any changes in the project focus or purpose,progress in obtaining matching funding,and stewardship and maintenance. Sponsors receiving 0&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project"report card"that will be submitted annually to the Board of County Commissioners. 15 b.If this project is approved for funding,I understand the sponsor is required to submit pro ess reports for three years and for any year in which 0&M funds are expended. PA Initials J Date 15 c. If,three years after the date funding is approved by the Board of County Commissioners,the project sponsor has not obtained the required matching funds,the Committee may request the Board of County Commissioners to nullify their approval of funds, and may require the project to re-apply. If this project is approved for funding, I understand that we may be required to re-submit the application if the pro ect sponsor does nb)a t oin the necessary matching funding within three years. � Initials 2Z p/Date Is 15 d. The applicant has reviewed all project requirements and all information in the application is accurate to the best of their knowledge. pea Initials 2/ Date 1-5 15 e. The sponsor commits to providing long-term wardship to achieve the conservation and protection goals of the project as proposed in is application or as ma be modified with recommendation of the CF Committee and approval of the BoCC. "7 Initials yry ate 12 2025 CFF Program Application 77 ,r,�'.�v (• Tarboo :-� Northwest Watershed Watershed Institute Assessment i- Port ' Townsend Watershed Locator /' ry A r 4 5 5 5 Miles 1I t 1 '� � .-' M arc h 2004 o st , 1 m. cod 'Z j yd N70 , Proposed �' ;, Tart,oo �r 0 - j Watershed Project °'', Canal +. = Olympic Quilcene //ey Bridge 4` -- `� �'" Mountains ,' .z t.r t � i°° T.,`{ 't' + dry) �5 i fJ ttI ' \ Seattle f . Brem ertorj, f i, f' — Northwest -- Washington State 1 4 }.1 r r J' � " Figure 1. Project location within the Tarboo Creek-Dabob Bay and Hood Canal watersheds. Tarboo Watershed Parcel Ownership Parcels �, alDNR Natural Area '�q.,, ... - NI Northwest Watershed Institute ® County Park =te tro c Cohcal Nahrtet Preserve -� - DNR Tnnt Lands Pope Resources Other-Pnvete Under Appreast D Dabab NRCA 2016 Evanston 9r 4�,f Corrservaaon Easements i r�i�/p:. Restoration Protects f� Conservaaon&Restoraton Aquatic Lands _ `_. Unknown � i Punic fl No Pmete Northwest Watershed institute t ...__ Prrvatt road ( County road a - State road /Y i', • : Lakes VV Northwest ` N Watershed Institute Dec 2018 0 0.5 1 Miles a ,. r ft 1 ry I Mr RoY ,, a rk, Ilit" „. - ,r r .--, ,._---— a Figure 2. Project location within the Tarboo Creek watershed. �Z` 1 h Ud' L'?' I 0r _ . / . *.. , CO j ' ' ,... --4.• ' - ch• 01170 71 i: offrr: 1.1°: lovallipriiiri ''' / 1 _ i ) (If- i A — t / dam_ o a°,,,C k -3c1: U may— �..._ i�t „ii(� ©ld . '''' . Nur'1/2\ —1 '\6' / ' ctlii C) Pq'ojec e .,., yarn - , fer W ' f/J f --"jc) I \--177 V. Zion cView Ln ° .i _ �, 1 r . . °�`f . ...1..... ),—....... \\ \_________S N,,,,,, ,774, ciii----1---a ey- / '") _ -Naffs - _ 'N r i unt ,(„400F.- of \\,, "7- / 1 , , -',, . / . , „4/feki _ Figure 3. The proposed acquisition adjoins permanently conserved lands of the Leopold-Freeman Forests (hatched lines) and upstream of NWI's Tarboo Wildlife Preserve (green). 44 F *4, � , #! i• . .;a... . �w W sT' ':" *Tr*, ['±0.. 4 _... k",� '% % r ' `:1 t *s.. ' 9 isokiitit '' 801291001 x # fl q •I> % Y IC N Y4 ' * ; F ' \ X z R D01294001 1' 3 1 1, , , . . NW!- Tarboo r:..# : ' ' ''`; { i I ` -* Leopold-Freeman Wildlife Preserve ;�- " yy Eon - GE protected. �' ,t ,. :list- y` ^"s+ ,"a� y " # '' •i. 'w, w,lr,y i `i —e -° -i__ .4 ,,,,_, 0. ,x, ;.,„,, „,- t * . 34V4*. 'A •I IV •*...',...,' .%s..: .* .* •'''...... ..,.,•*.'`,...""'..-•.* .L..11,'' '4, :—.;;'Air 4 ' Figure 4.The project is along Upper Yarr Creek(mapped in red)that flows to the Tarboo Widllife Preserve. x 4 5ii' ..ti - ( dr Upper Yarr Ck . ,,U _,w, fir. r ," _. 1 Figure 5. Lydar show the project in relation to Yarr Creek and tributaries in ravines. c +- " f b� M, � lkortx Y 1 i 11 , ..: . , * ,r' .* . • V:- IV**. I _ilfrIP 7 � i rR „ .„. , ilk x r "fir.. " . �1'910 * r+` , k 4 . ♦ `+ M',yam !'s .. , ..A11! -_i i•-'. l'ic -,, 1,,,..41'$* '°:,' . '''s :4,. 4:,,,,,b, ,,,,,41:::. .,,,,,' to "1 •'fit 'tit* ✓-' . 4 r Figure 6. Arial photo showing actual stream course and riparian vegetation through the property. q ' Fiaktinlit4-4411404# , sat a. .a yJG41'�:Yl':l '�. . is r b4 r deJ•Rhd7-122.A;d19 Do�ra� _.. v� Figure 7.Lydar image showing Upper Yarr Creek in ravine that runs through the property. Orange line is incorrect stream location shown on Jefferson County GIS. r' + i ss•,� , t �1'�4. ti'al 6 t �� i t 3'1r + t t �1 ° y,.l FF yt { y si „,. ,.V. n "i°ir 41 d ;.. p - • f t( '. ., .., , , a Tk t � t^ .; _, - ,' $i a ? }# € I _ * a / y ' .r :�a. :9�� ! 9 t � ' y1.,;r.`,�".. ;(�� Via... •'All t ;#,..I„,• ii-, �W A I r �T.t 'I. \ i. 7' : A' L f r ,v ," 7 -- , r, s t 9 - �1 v r 5 I yt ti . 7 .. e � w' i�'g �Y4/;,-. e t ; , 1 jy. may. 'w f i , Y � rC, „. ��yy ..ate, �. , ,. �, '� " 'f�,��- R� a. • ��11►► - a,i„ ., \ f s <u per./ ,v - 4 a 1) 3, 1i+ . r� fw�y , ,! • ` -P'� t, 9 Y" t•...y;e -i,,•; �4 _ t.:.. rriliK0:11,.,1/44 ;,,,,, t . .,4,„..„, , „.., ; „,„0,4,,. i 1 - ... •,,,..... „ , ,,, , . .... A� � •.„. t , Figure 8. Upper Yarr Creek and riparian forest on the property. Most of the property is Priority Habitat. t r S � �` 1 rk `� P r «�.°% to ) r _F,+`� i � •!!1.' mac,"At' , ♦3. µ a Figure 9\. Mixed mature native forest on the property. ..,,, .. , - - 4 I ice' -8« ;or .'- set, t ti - as a 1 .., e ' a �, ' s ii : 4F,�,Z > li° , 4."'V N .s *4 F y y a ,' Y. rt "y� �,yL c Sa a. y Y r�ry .L s. A1' i.: th • s Figure 10. Steep side slope in Upper Yarr Creek ravine. 4. ,u ,. r 4 , *et* �� s 7v. r .% 4 5 ��. `✓ $ate$e _ ,, ,+$ a , `, M4k ± _ -< ter, Figure 11.The south side of property includes younger hardwood forest. ' y - • %ram ' V -- rive .411. iiiti AIi J I iss ....,.., -...... raw ,i'R. --4 ' - ' ,..-e ... - ..', *-- . _ .% .7-, 410•-• al— .. . r F - rs ' ,, 't, ' -‘-',. ,-._.‘ '::42 ,,,,:. -I' 4'' '' IliPt' . '-, ' ,...,„..- w4. .. *h► s Figure 12. Western toad, a state listed at-risk species, has been found nearby and is expected to use forest habitat on the property. Jefferson County Conservation Futures Proposal 2025 Upper Yarr Creek Acquisition Project SUPPLEMENTAL MATERIALS Proof of willing seller: See narrative, project sponsor proposing to sell deed restriction to property already owned by NWI. Estimate of value: No appraisal required. Requesting $20,000 or less. Site location map: See separate PDF, maps and photos Critical areas map: See separate PDF, maps and photos Project boundary map: See separate PDF, maps and photos Color images: See separate PDF, maps and photos Development plan or Narrative: NA Proof of 501c3 status Current budget: 2024-2025 Board roster: 2024-2025 Staff roster: 2025 Financial statements: last fiscal year July 2023-June 2024 Resolution to submit proposal: NWI executive committee resolution Cultural Resources letter from Port Gamble S'Klallam Tribe, Feb 27, 2025 _1/tit/ • 3407 Eddy Street 1 Port Townsend, Washington 98368 Northwest voice 360.385.6786 fax 360.385.2839 Watershed Institute email peter@nwwatershed.org I www.nwwatershed.org February 27, 2025 Dear Jefferson County Conservation Futures Committee: NWI is willing to protect the Upper Yarr Creek property through compensation to NWI for placing a permanent county deed restriction on the property that prohibits all uses incompatible with habitat conservation and restoration. Sincerely, R...44 6-X-44-- Peter Bahls Executive Director INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: op 24 2I 93-1325820 DLN: 17053259778026 NORTHWEST WATERSHED INSTITUTE Contact Person: 3407 EDDY STREET CLINTON L FORTNER ID# 31163 PORT TOWNSEND, WA 98368-0000 Contact Telephone Number: (877) 829-5500 Public Charity Status: 170 (b) (1) (A) (vi) Dear Applicant : Our letter dated JANUARY 2002, stated you would be exempt from Federal income tax under section 501 (c) (3) of the Internal Revenue Code, and you would be treated as a public charity, rather than as a private foundation, during an advance ruling period. Based on the information you submitted, you are classified as a public charity under the Code section listed in the heading of this letter. Since your exempt status was not under consideration, you continue to be classified as an organization exempt from Federal income tax under section 501 (c) (3) of the Code. Publication 557, Tax-Exempt Status for Your Organization, provides detailed information about your rights and responsibilities as an exempt organization. You may request a copy by calling the toll-free number for forms, (800) 829-3676 . Information is also available on our Internet Web Site at www.irs .gov. If you have general questions about exempt organizations, please call our toll-free number shown in the heading. Please keep this letter in your permanent records. Sincerely yours, (NCO Lois G. erner Director, Exempt Organizations Rulings and Agreements Letter 1050 (DO/CG) 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 Ordinary Income/Expense Income Grant Revenue 4010• Federal Funds 1,500,000.00 4020• Foundation 2,000.00 4030•State Funds 42,000.00 Total Grant Revenue 1,544,000.00 Contributed Income 4040•Restricted 131,000.00 4050• Unrestricted 120,000.00 Contributed Income-Other 0.00 Total Contributed Income 251,000.00 Rental/Lease Income 4165•Olson tideland lease 4,000.00 4175• Rental Income Reinertsen Rental 18,000.00 4182•Rental Income-Yarr Caretaker 6,000.00 Total Rental/Lease Income 28,000.00 Consulting/Miscellaneous 4210•Consulting Fees 2,000.00 Total Consulting/Miscellaneous 2,000.00 Total Income 1,825,000.00 Gross Profit 1,825,000.00 Expense Health benefits 6096• Health insurance 34,000.00 6094• HSA Contribution 10,600.00 Total Health benefits 44,600.00 6041 • Paypal Fees 300.00 6010•Advertising 100.00 6030•Automobile Expense 2,500.00 6040•Bank Service Charges 500.00 6060•Depreciation Expense 1,600.00 Insurance 6091 •Auto 4,000.00 6093• Liability Insurance 4,000.00 Total Insurance 8,000.00 Land Acquisition 6170• Closing Expenses 40,000.00 6150• Land 1,300,000.00 Land Acquisition-Other 0.00 Total Land Acquisition 1,340,000.00 6180• Licenses and Permits 0.00 6210•Miscellaneous 0.00 Payroll Expenses Gross wages 6237• Education Director 24,000.00 6231 • Director 90,000.00 6232•Stewardship Director 36,000.00 6233• Project Assistant 7,000.00 6234• Field Crew 88,000.00 Total Gross wages 245,000.00 Page 1 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 Payroll Taxes 6246• Paid Family and Medical Leave 0.00 6240• Medicare 3,500.00 6241 •Social Security 15,000.00 6243•Workers Comp 11,000.00 6245•WA State Unemployment 3,600.00 Total Payroll Taxes 33,100.00 Payroll Expenses-Other 0.00 Total Payroll Expenses 278,100.00 6250•Postage and Delivery 750.00 6260•Printing and Reproduction 750.00 Professional Fees 6271 •Accounting 1,500.00 6274• Legal Fees 2,000.00 Total Professional Fees 3,500.00 Program Expense 6284•Student Stipend 2,000.00 6282• Fees 1,600.00 6283• Project subcontractors 40,000.00 6286•Overrun 0.00 Total Program Expense 43,600.00 6290• Rent 12,000.00 Repairs and Maintenance 6350• Septic Repair 0.00 6310• Building Repairs 50,000.00 6320•Computer Repairs 250.00 6330• Equipment Repairs 3,000.00 Repairs and Maintenance-Other 500.00 Total Repairs and Maintenance 53,750.00 Supplies 6420• Field Supplies 30,000.00 6440•Office Supplies 2,000.00 Total Supplies 32,000.00 Taxes 6510• Property Taxes 5,000.00 Total Taxes 5,000.00 Telephone/Communications 6650• Mobile phone 1,800.00 6610• Internet Server 800.00 6620•Telephone-Local 0.00 Telephone/Communications-Other 0.00 Total Telephone/Communications 2,600.00 Travel&Ent 6720•Meals 140.00 Total Travel&Ent 140.00 Utilities 6810•Gas and Electric 600.00 Utilities-Other 0.00 Total Utilities 600.00 Page 2 10:38 AM Northwest Watershed Institute 02/25/25 Profit & Loss Budget Overview Accrual Basis July 2024 through June 2025 Jul'24-Jun 25 9000•Suspense 0.00 Total Expense 1,830,390.00 Net Ordinary Income -5,390.00 Other Income/Expense Other Income 7010• Interest Income 10,000.00 Total Other Income 10,000.00 Other Expense 8016•Conservation Ease/Deed Restri 0.00 Total Other Expense 0.00 Net Other Income 10,000.00 Net Income 4,610.00 Page 3 Northwest Watershed Institute BOARD OF DIRECTORS 2024-25 Board Members and Affiliation and Term on the Board of Directors Officers Peter Bahls Peter Bahls is currently full time Executive Director and Conservation President,Vice-President, Biologist for Northwest Watershed Institute. Treasurer Term- 2023-2025 3407 Eddy Street Port Townsend,WA 98368 Jean Ball Jean Ball is a farmer and naturalist in Quilcene,Washington. Board Member Term- 2024-2026 10221 Center Road, Quilcene,WA 98368 Scott Calhoun Scott Calhoun studied biology and geology in college and graduate Board Member school where he specialized in shorelines and watersheds. He owns forestland in the Tarboo watershed. 5710 59th Ave NE Seattle,WA 98105 Term- 2024-2026 Janis Henry Janis Henry is a retired biotech patent attorney and chemist with over Secretary 30 years of experience. She is a life-long nature enthusiast and embraces adventure travel. 14445 SE 55th Street Bellevue,WA 98006 Term- 2023-2025 Gene Jones Gene Jones is a member of the Port Gamble S'Klallam Tribe and Board Member spiritual leader for four Tribes in the Olympic Peninsula region. 5860 NE Totten Road Term- 2023-2025 Poulsbo,WA 98370 Liz Hoenig Kanieski Liz Hoenig Kanieski has over 25 years of experience as a field biologist, environmental educator,and environmental planner. Much of her work 1005 Lawrence Street has focused on watershed protection,citizen engagement and water Port Townsend,WA 98368 resources. Term- 2023-2025 Keith Lazelle Keith Lazelle is an award-winning nature photographer who lives on Board Member Dabob Bay. His work has been used by many environmental organizations including Audubon,Hoh River Trust,The Nature PO Box 192 Conservancy,and NWI. Quilcene,WA 98376 Term- 2024-2026 Northwest Watershed Institute STAFF ROSTER 2025 Peter Bahls, Executive Director Wesley Meyers, Stewardship Director Megan Brookens, Education and Outreach Director Robin Enge, Administrative Assistant Eva Ellis, Field Crew Bernt Goodson, Field Crew Zack Hawkes, Field Crew Hanna Petersen, Field Crew Veronica Phelan, Field Crew Grace Rabbitt Burke, Field Crew Trevor Williams, Field Crew Abel Dances, Carpenter 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 Ordinary Income/Expense Income Grant Revenue 4010• Federal Funds 2,057,763.40 4020• Foundation 1,614.27 4030•State Funds 41,710.22 Total Grant Revenue 2,101,087.89 Contributed Income 4040• Restricted 130,710.00 4050• Unrestricted 116,423.00 Contributed Income-Other 520.00 Total Contributed Income 247,653.00 Rental/Lease Income 4165•Olson tideland lease 4,000.00 4175• Rental Income Reinertsen Rental 7,673.37 4182• Rental Income-Yarr Caretaker 4,139.46 Total Rental/Lease Income 15,812.83 Consulting/Miscellaneous 4210•Consulting Fees 1,155.00 Total Consulting/Miscellaneous 1,155.00 Total Income 2,365,708.72 Gross Profit 2,365,708.72 Expense Health benefits 6096• Health insurance 31,075.72 6094• HSA Contribution 10,300.00 Total Health benefits 41,375.72 6041 • Paypal Fees 289.80 6010•Advertising 127.05 6030•Automobile Expense 2,033.19 6040• Bank Service Charges 499.77 6060•Depreciation Expense 1,600.00 Insurance 6091 •Auto 4,130.00 6093• Liability Insurance 4,059.45 Total Insurance 8,189.45 Land Acquisition 6170•Closing Expenses 0.00 Total Land Acquisition 0.00 6180• Licenses and Permits 15.00 6210• Miscellaneous 163.37 Payroll Expenses Gross wages 6237•Education Director 23,754.50 6231 •Director 73,333.48 6232• Stewardship Director 33,682.00 6233•Project Assistant 6,119.00 6234•Field Crew 86,245.20 Total Gross wages 223,134.18 Page 1 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 Payroll Taxes 6246• Paid Family and Medical Leave 1.19 6240• Medicare 3,305.81 6241 •Social Security 14,169.09 6243•Workers Comp 10,942.09 6245•WA State Unemployment 3,687.53 Total Payroll Taxes 32,105.71 Payroll Expenses-Other 4,853.32 Total Payroll Expenses 260,093.21 6250• Postage and Delivery 744.74 6260• Printing and Reproduction 758.11 Professional Fees 6271 •Accounting 1,375.00 6274• Legal Fees 324.50 Total Professional Fees 1,699.50 Program Expense 6284•Student Stipend 0.00 6282•Fees 1,553.89 6283• Project subcontractors 82,835.44 6286• Overrun 68.55 Total Program Expense 84,457.88 6290• Rent 12,000.00 Repairs and Maintenance 6350• Septic Repair 9,769.44 6310• Building Repairs 9,207.34 6320•Computer Repairs 248.20 6330• Equipment Repairs 2,868.14 Repairs and Maintenance-Other 474.37 Total Repairs and Maintenance 22,567.49 Supplies 6420• Field Supplies 8,204.99 6440•Office Supplies 1,951.11 Total Supplies 10,156.10 Taxes 6510• Property Taxes 4,963.81 Total Taxes 4,963.81 Telephone/Communications 6650• Mobile phone 1,567.40 6610• Internet Server 758.50 6620•Telephone-Local 81.26 Telephone/Communications-Other 142.28 Total Telephone/Communications 2,549.44 Travel&Ent 6720• Meals 144.65 Total Travel&Ent 144.65 Utilities 6810•Gas and Electric 696.03 Utilities-Other 770.16 Total Utilities 1,466.19 Page 2 12:53 PM Northwest Watershed Institute 01/10/25 Profit & Loss Accrual Basis July 2023 through June 2024 Jul'23-Jun 24 9000•Suspense 267.06 Total Expense 456,161.53 Net Ordinary Income 1,909,547.19 Other Income/Expense Other Income 7010• Interest Income 9,952.06 Total Other Income 9,952.06 Other Expense 8016•Conservation Ease/Deed Restri 782,040.09 Total Other Expense 782,040.09 Net Other Income -772,088.03 Net Income 1,137,459.16 Page 3 12:55 PM Northwest Watershed Institute 01/10/25 Balance Sheet Accrual Basis As of June 30,2024 Jun 30,24 ASSETS Current Assets Checking/Savings First Fed CD-3090 51,430.51 First Federal CD-3091 51,523.58 First Fed Savings 52,417.11 1020•Checking-Kitsap 59,986.66 Total Checking/Savings 215,357.86 Accounts Receivable 1200•Accounts Receivable 22,048.75 Total Accounts Receivable 22,048.75 Other Current Assets 1250• Prepaid Insurance 2,115.50 1300• Employee advance 163.88 1499• Undeposited Funds 111,313.33 Total Other Current Assets 113,592.71 Total Current Assets 350,999.32 Fixed Assets 1513•Vehicle-2001 Ford xtra Cab 8,000.00 1554•Trailers 4,000.00 1512•Vehicle-Ford pickup 4,150.00 1530• Kubota Tractor 16,709.10 1590•Accumulated Depreciation -28,592.08 Property 1555•Capital Improvements 3,035.20 1551 •Land 2,197,217.48 Total Property 2,200,252.68 Total Fixed Assets 2,204,519.70 TOTAL ASSETS 2,555,519.02 LIABILITIES&EQUITY Liabilities Current Liabilities Accounts Payable 2000•Accounts Payable 5,965.77 Total Accounts Payable 5,965.77 Other Current Liabilities 2100• Payroll Liabilities 2105• Fica, Medicare, FWH Payable 5,148.22 2109•WA-Paid Fam Med Leave Emp. 446.33 2120•Workers Comp Payable 5,013.23 2130• SUTA&EAF Payable 1,663.44 2125• FUTA Payable 267.06 2100• Payroll Liabilities-Other 489.77 Total 2100• Payroll Liabilities 13,028.05 2250• Rental Security Deposit 3,000.00 Total Other Current Liabilities 16,028.05 Total Current Liabilities 21,993.82 Total Liabilities 21,993.82 Page 1 12:55 PM Northwest Watershed Institute 01/10/25 Balance Sheet Accrual Basis As of June 30, 2024 Jun 30,24 Equity 1110• Retained Earnings 1,396,066.04 Net Income 1,137,459.16 Total Equity 2,533,525.20 TOTAL LIABILITIES&EQUITY 2,555,519.02 Page 2 M 3407 Eddy Street 1 Port Townsend, Washington 98368 Northwest voice 360.385.6786 lax 360.385.2839 Watershed Institute email peter@nwwatershed.org I www.nwwatershed.org Memo To: Tarboo Creek Conservation Project File From:Peter Bahis, Executive Director CC: Date: February 25, 2025 Re: Executive Committee Resolution to Submit Jefferson County Conservation Futures 2025 Application for the Upper Yarr Creek project. At its Annual Board Meeting of June 21, 2024, the Board of Directors of Northwest Watershed Institute unanimously approved the following resolution— An executive committee comprised of Peter Bahis and Janis Henry shall serve as an executive committee to have the power to make on-going decisions between Board meetings per the existing by-laws. On February 25, 2025 the executive committee approved the following resolution— DECIDED — Northwest Watershed Institute shall sponsor and submit a grant application for Jefferson County Conservation Futures 2025 Program to propose acquisition and restoration of the 1-acre Upper Yarr Creek project. Priority: The Toandos Forest property is 6x the size of the Upper Yarr property and is at high risk of development if JCCF funding is not awarded, so it is considered the top priority for NWI. eAltij .-- , ci-eil:,,,/) /4.7",4_,/ Peter Bahis Janis Henry I President ' Secretary i February 27, 2025 Peter Bahls, Executive Director Northwest Watershed Institute 3407 Eddy Street Port Townsend,WA 98368 Dear Mr. Bahls: I understand that Northwest Watershed Institute is applying for Jefferson County Conservation Futures(JCCF)grant funding to acquire and protect Upper Yarr Creek, 1 acre of stream and riparian forest habitat adjacent to protected lands of the Leopold-Freeman Forest and flowing into lower Yarr Creek on NWI's Tarboo Wildlife Preserve in the Tarboo valley. If successful,the grant funding will protect the forest under county deed restrictions and allow older forest habitats to develop. We strongly support this project and want to convey the importance of the forest and stream habitat as a cultural resource to the Tribes. The JCCF grant application states that cultural resources include "...traditional, religious,ceremonial, and social uses and activities of affected Indian Tribes...". I want to make it clear that the Upper Yarr Creek property is a cultural resource under this definition and the proposed plan for protection and restoration would help grow its importance. Four tribes- Port Gamble S'Klallam Tribe,Jamestown S'Klallam Tribe, Lower Elwha S'Klallam Tribe,and Skokomish Tribe-are signatories to the Point No Point Treaty and retain the right to hunt and gather within their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to rely upon the forests of the region, as they have for thousands of years,as places where they gather traditional food, medicine, and materials for use in all aspects of their cultural life, including social and religious. Salmon and shellfish are central to sustaining the cultural heritage of the Tribes.Yarr Creek is an important coho salmon spawning stream and these habitats are recognized by the Tribe not just as natural resources but as cultural resources vital for sustaining salmon runs, as well protecting water quality for shellfish production in Dabob Bay. In addition,Tribal members harvest wood from cedar, big leaf maple, and alder trees to make large box drums, masks, and other traditional objects that the Tribes have used for thousands of years for religious and social ceremonies. However,with the conversion of vast areas to private industrial tree farms and development projects, it is increasing difficult for the Tribes to access forests suitable for traditional cultural uses. The proposed project will protect important cultural resources for the Tribes: habitat that sustains salmon and shellfish and forest that provides a large variety of indigenous plants and trees of cultural importance. s. Sincerely, Laura Price Cultural Resources Director Port Gamble S'Klallam Tribe 31912 Little Boston RD NE Kingston WA 98346 Office: 360-297-9655 Cell: 360-509-7723 EXAMPLE OF RE-RECORD OF SWD FOR CONSERVATION FUTURES PURPOSES AFTER RECORDING RETURN TO: Northwest Watershed Institute 3407 Eddy Street Port Townsend, WA 98368 DOCUMENT TITLE: Statutory Warranty Deed—Re-Record GRANTOR: Rosie L. Non Engel GRANTEE: Northwest Watershed Institute ABBREVIATED LEGAL DESCRIPTION(Complete description on Page 1): S29 T28 RIW Tax 2 ASSESSOR'S TAX PARCEL NUMBER(S): 801 293 003 REFERENCE NUMBERS OF RELATED DOCUMENTS: 658592 The parties are re-recording the Statutory Warranty Deed, recorded on 01/17/2023 in the official records of Jefferson County, Washington, under Auditor's File No. 658592 (a copy of which is attached hereto as Exhibit A), for the sole purpose of including language required by Jefferson County providing funding to Grantee Northwest Watershed Institute's acquisition of the property described in said Statutory Warranty Deed, and without additional consideration from Grantee to Grantor. 1 4899-1951-4625v.6 0046182-000042 STATUTORY WARRANTY DEED (RE-RECORD) THE GRANTOR Rosie L.von Engel,now according to the application for title insurance Rose/Marie Ludmilla von Engel,as her separate estate for an in consideration of TEN DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERATION in hand paid, conveys and warrants to Northwest Watershed Institute,a Washington nonprofit corporation the following described real estate, situated in the County of Jefferson, State of Washington(the"Property"): Tax Parcel Number(s): 801 293 003 That portion of the North 100 feet of the Southeast'/4 of the Southwest'/4 of Section 29, Township 28 North,Range 1 West, W.M. and that portion of the Northeast'A of the Southwest '/4 of said Section 29 lying Easterly of the Quilcene-Center County Road right of way as conveyed by Deed recorded March 13, 1956 under Auditor's File No. 149069 and Southerly of the Old Tarboo Lake Road as conveyed by Deed recorded March 1, 1948 under Auditor's File No. 112974, in Jefferson County,Washington; Together with the West 158 feet of the North 100 feet of the Southwest'/4 of the Southeast'/4 in said Section 29. Situate in the County of Jefferson, State of Washington. SUBJECT TO: Covenants, Conditions, Restrictions, Easements, Plats and Surveys, if any, affecting title,which may appear in the public record Grantee's costs of acquiring the Property were provided in part by grant funding from the Jefferson County Conservation Futures property tax authorized by Washington law. Grantee hereby agrees to be bound by Jefferson County Code (JCC) 3.08.030(9), the uses authorized under RCW 84.34.230, including the obligation to ensure the long-term conservation of the Property in accordance with the terms and conditions of this Notice of Grant Restrictions and Restrictive Covenants for Conservation Purposes, and to obtain the consent of Jefferson County prior to any conveyance of any interest acquired hereby. Consistent with JCC 3.08.030(9), the Property shall not be converted to a different use unless and only if other equivalent lands or interest in lands within Jefferson County are received by Grantee in exchange. {Signature page(s) to follow) 2 4899-1951-4625v.6 0046182-000042 IN WITNESS WHEREOF, Grantor has caused this instrument to be executed and delivered as of the day of , 2025. GRANTOR: Rosie L. von Engel State of Washington ) ) ss. County of ) On this day of , 2025, Rosie L. von Engel, known to me or proved by satisfactory evidence to be the individual described in this instrument, acknowledged before me that she signed this instrument as her free and voluntary act and deed for the uses and purposes stated therein. Notary Public for State of Washington Residing at: My commission expires: 3 4899-1951-4625v.6 0046182-000042 IN WITNESS WHEREOF, Grantee has caused this instrument to be executed and delivered as of the day of , 2025. GRANTEE: NORTHWEST WATERSHED INSTITUTE By: Its: Date: State of Washington ) ) ss. County of ) On this day of , 2025, Peter Bahls, known to me or proved by satisfactory evidence to be the individual described in this instrument, acting in his capacity as Executive Director of Northwest Watershed Institute, acknowledged before me that he signed this instrument as the free and voluntary act and deed of such corporation for the uses and purposes stated therein. Notary Public for State of Washington Residing at: My commission expires: _ 4 4899-1951-4625v.6 0046182-000042 EXHIBIT A Original Statutory Warranty Deed {attached} 5 4899-1951-4625v.6 0046182-000042 Jefferson County Conservation Futures Fund (JCCFF) 6- Special Meeting: Hybrid between JCPH and Zoom Connection April 01, 2025 from 2:00 to 4:30 PM Ncs• °' DRAFT Summary Members Present: Tom Backman, District 3; Carol Bernthal, District 1; Laurie de Koch, District 3; Tom Ehrlichman, District 2; Rob Harbour, Interest—Working Lands; Richard Jahnke, Interest —Coastal Areas; Cheryl Lowe, Interest— Habitat Values; E. Ryan McMackin, Interest—Wetlands; Joanne Pontrello, Chair, District 2; Ron Rempel, Vice Chair, Interest—Wildlife Conservation Biology; Robert Simmons, Interest—Watersheds; Dave Wilkinson, District 1 Members Absent: None County Staff Present: Tami Pokorny, Natural Resources Program Coordinator; Tressa Linguist, Clerk, Environmental Public Health Others Present: Peter Bahls of Northwest Watershed Institute I. Call to Order, Roll Call, Determination of Quorum Chair Joanne Pontrello called the meeting to order at 2:05 PM. Roll call was performed. All members were present, quorum was met. Tressa informed the group that measures were taken to increase Zoom security since the last meeting, and that a transcript was now being generated along with the Zoom recording. II. Public Comments None. III. Summary of previous meeting Tom B moved to approve the 04/01/2025 meeting summary. Bob seconded.The meeting summary was approved by consensus. IV. Old Business Approval of amended 02/19/2025 meeting summary: Tom E was satisfied with his requested changes to the summary. Rick moved to approve, Tom E seconded. The meeting summary was approved by consensus. V. Sub-Committee Reports Materials: The Sub-Committee has not met since our last meeting and had no updates. Storymap: Sub-Committee (Rob, Cheryl, Tressa) will meet 04/23/2025 at JCPH at noon to begin site redesign. Now is a great time to join. Note a correction to what was stated in the meeting: There are two spots available on the Storymap Sub-Committee, not one. Each Sub-Committee may have up to four members. 1 4 VI. New Business Conflict of interest review Tressa displayed again the three questions each CFFCOC member should ask of themselves regarding conflicts of interest and the projects/lands up for consideration (crafted in 2002 by county Chief Civil Deputy Prosecuting Attorney, David Alvarez). Time was allowed for reflection and voicing of recusal. No conflicts of interest were reported. • Do you, as a member of the CFFCOC, stand to gain or lose any financial benefit as a result of the outcome of this hearing? • Are you, as a CFFCOC member, unable to hear and consider this application in a fair and objective manner, i.e., without bias and without a predisposition to any particular result regarding this application? • Have you, as a CFFCOC member, engaged in any communication outside this hearing with either a proponent or opponent of this particular application? 2025 Funding The amount of funding available for this CFF cycle is estimated to be "$321,000. This includes $252,000 from 2024 revenues and —$69,000 in funds returned from the cancelled North Barry/Snow Creek project. These numbers need to be finalized with the Finance department, but with the total request this cycle being $230,500, it is safe to assume that there are sufficient funds available to grant each project in full, should the Committee vote to do so. 2025 funding requests Deerfoot Forest $110,000 Upper Yarr Creek $26,000 Toandos Forest $94,500 Robert's Rules of Order A simplified procedure for conducting meetings using Robert's Rules of Order was displayed as a refresher for the group. Any motions made should be stated clearly, following the procedure, and each member should be given an opportunity to speak before a member may speak again. Respect and decorum are expected. 2025 Project Application Scoring Review and Ranking Tressa displayed a workbook showing individual and cumulative scores for the three 2025 project applications. The 70% cutoff for automatic eligibility (outlined in the Manual, page 4) is 177 points (0.7*253 total points allowed). Average scores were displayed. Toandos Forest exceeded the cutoff, Deerfoot Forest and Upper Yarr Creek fell below the cutoff. %CVs for each project showed the Committee was more divided on the Deerfoot project, less so on Upper Yarr and Toandos Forest. Project Name Score %CV Deerfoot Forest 163 64% Upper Yarr Creek 167 66% 2 4 Toandos Forest 191 70% It was noted that projects may still be recommended for funding despite falling below the 70% cutoff, if compelling reasons are brought forward during the discussion. This has occurred many times in the past. Questions on the score sheet are up for personal interpretation. Some members score projects based on inherent values, other members score projects relative to each other. Often there are broader benefits and/or conservation values that are not captured in the scoring process. Rob Harbour removed himself from the discussion and sat-in as a member of the public, having missed the project presentation meeting and thus being ineligible to vote this cycle. Members were given an opportunity to revise their submitted individual scores if new perspectives had been gained. Ultimately, it was decided that a more appropriate approach would be to leave the scores as-is and make recommendations based on the arguments presented during today's discussion. Are these lands key open spaces that are worthy of public investment? Do they meet the criteria outlined in JCC for preservation of unique and valuable resources? Discussion began with scores for Deerfoot Forest. Some committee members expressed that their final scores did not reflect their overall opinion on the project's value. The property is a significant area (37 acres) of mature forest surrounded by residential property and commercial forests, much of which have been recently logged. It will take the surrounding landscape many years to develop into the mature and diverse condition Deerfoot is in. An ecological "island." It has hydrologic value to two watersheds. If not conserved, the two parcels may be sold individually in the future, perhaps for development or forestry. The current owners have demonstrated a long-term commitment to stewarding diversity. They are open to having opportunities for community education. Ryan moved to deem Deerfoot Forest worthy of funding, and Tom E seconded.The motion was passed by consensus. There was no further discussion on the project. Carol moved to fully fund Deerfoot Forest at $110,000.Tom B seconded.The motion to fully fund Deerfoot Forest was passed by consensus. Discussion moved to Upper Yarr Creek. This project had a lower level of deviation, meaning the committee were in greater agreement about the final score. Protecting this parcel, which has Yarr Creek flowing through it at the base of a steep hill, will protect the stream from erosion or human impacts to the hillside. It is a small parcel, but it is very vulnerable. The fact that NWI already owns the parcel was discussed —if it is owned by a conservation entity, is it actually threatened? NWI is asking to be reimbursed/rewarded for taking on the risk. The committee should consider this potential scenario in their revision of the program materials. The real estate market is dynamic and fast-paced, and CFF is not an agile program. The parcel is part of a well-managed, larger conservation plan. Ron moved that Upper Yarr Creek be deemed worthy of funding. Ryan seconded. The committee voted 11 in favor, 1 against.The motion passed. There was no further discussion. Ryan moved to fully fund Upper Yarr Creek at $26,000. Laurie seconded.The committee voted 11 in favor, 1 against. The motion to fully fund Upper Yarr Creek passed. 3 4 Toandos Forest was briefly discussed. This project met the 70% cumulative score requirement to be "automatically worthy" of funding. it also showed the least amount of variation among the group. The property is valuable and unique as it is in an area underserved by CFF (Toandos). Bob moved to fully fund the project at$94,500. Ryan seconded. The motion to fully fund Toandos Forest passed by consensus. Public Comment Peter Bahis of NWI gave thanks to the program and to the committee for their efforts this cycle, and recognized that the grant process is a lot of work for the group. Ron asked if it could be possible to reserve a portion of the dollars for a future larger project, such as something on the West End. Staff should investigate, and perhaps a sub-committee should be formed to deliberate. Formation of"Resources" Sub-Committee This committee will generate a set of resources for the CFFCOC that are relevant to conservation in Jefferson County—habitat, cultural resources, agriculture, large scale processes, climate change, etc. What do CFFCOC members need to know to determine if a property is biologically important? What are the specific criteria in RCW and JCC that should be met? What are the biggest conservation issues faced by the county? Perhaps there could be guest lectures. Ron, Carol, and Tom B will make up the sub-committee. Tom E asked that the Materials Sub-Committee consider removing or restructuring application question 14, O&M. The question is confusing and was not answered by any applicants this cycle. The Materials Sub-Committee still plans to overhaul the application this fall. What is the most efficient grant award process others have engaged in? It would be helpful to have more training for CFF, perhaps running through a dummy proposal. Can be hard to evaluate as a new member, this will help with consistency. VII. Next meeting date There are no additional meetings scheduled at this time. Joanne will present the committee's recommendations to the BoCC soon,Tressa to schedule and inform the group. There will also be a public hearing after that where additional comments may be made. It was agreed that September would be a good time to meet again to discuss sub-committee findings. VIII. Announcements None. IX. Public Comment Thanks were given to Tressa for her work and growth over in her position over the last year. X. Adjournment The meeting was adjourned at 3:59 PM. Meeting summary prepared by Tressa Linguist. 414 ,,��ON c0 JEFFERSON COUNTY DEPARTMENT OF COMMUNITY DEVELOPMENT 621 Sheridan Street, Port Townsend,WA 98368 I Web:www.co.Jefferson.wa.us/communitydevelopment `�--iso1 N6.,o Tel:360.379.4450 I Fax:360.379.4451 I Email:dcd a(�co.jefferson.wa.us SquareONE Resource Center I Building Permits & Inspections I Development Review I Long Range Planning TO: Tami Pokorny, Natural Resources Program Coordinator, Jefferson County Water Quality and Environmental Health FROM: Joel Peterson, Associate Planner DATE: May 23, 2025 RE: 2025 Jefferson County Conservation Futures Program Property Acquisition and/or Operations and Maintenance Project Applications Summary of DCD Findings for 2025 Conservation Futures Program: Project Name Project Type 1. Deerfoot Forest—Two Parcels Easements 2. Toandos Forest Acquisition & Restoration 3. Upper Yarr Creek Protection Acquisition The Department of Community Development (DCD) has reviewed the proposed 2025 Jefferson County Conservation Futures Program Property Acquisition and/or Operations and Maintenance Projects and provides the following findings. Summary: When a local government chooses to use Conservation Futures Fund money to purchase an interest in land, it must consider and analyze whether taking land out of the 'stock' of land that can be developed leaves enough land subject to development to accommodate allocated housing and employment growth (RCW 84.34.240). From our analysis, we find that the proposals, totaling ca. 44 acres, do not negatively impact housing supply or employment growth. Methods: Housing Analysis: DCD reviews the estimated number of potential dwelling units that may be forgone by the Conservation Futures actions and the effect this may have on the County's ability to accommodate our projected 20-year population growth within the 2018-2038 planning period contemplated in our current comprehensive plan, and also using recently available population data from the Office of Financial Management considered in the draft 2025-2045 Comprehensive Plan Periodic Review. Any determination made in this exercise is only an estimate based on current zoning and a map review of possible site conditions, including a site development and Critical Areas review. Employment Growth Analysis: Potential impacts resulting from the Conservation Futures program actions on Jefferson County's ability to provide for anticipated employment growth through the next 20-year planning horizon were reviewed. Observations were made of current employment conditions on the parcels and in the vicinity of the project parcels, prevalent employment sectors in the area, and consideration of any other potential effects resulting from conservation action that may limit or enhance the County's ability to provide for economic development or jobs. Findings: 1. Housing. The proposed easements and acquisitions of the 2025 Conservation Futures program would be for conservation purposes. All 2025 projects have Rural Residential zoning. Extinguishing development rights could preclude the future opportunity for approximately four (4) total new theoretical residential units—including single-family residential dwelling units (SFRs) and accessory dwelling units (ADUs). The theoretical yield is primarily based on acreage, vis-à-vis the ability to develop the parcels or further subdivide. The subject parcels were not found to have Critical Areas to the extent that residential development would be restricted. Jefferson County has documented a surplus of vacant and underdeveloped parcels, beyond that which is necessary to accommodate the land needs of the County's projected population during the 20-year planning period (2018-2038 Comprehensive Plan Land Use Element). Also, projected growth rates for Jefferson County to 2045 remain at about the current rate of 1%. As found in past evaluations, the proposed 2025 conservation actions do not reduce the County's capacity to accommodate future planned growth. 2. Employment Growth. No commercial areas are included in the protected properties. Employment or business development that could be forgone by loss of residential dwelling units or employment use of the land is not directly apparent. Potential employment opportunity may include home business or cottage industry opportunities. There is no evidence to suggest that a reduction or shortage of residential parcels that could support home business or cottage industry would be caused by these Conservation Futures projects. Employment in the project areas would likely consist of home businesses, cottage industries or within agriculture and natural resources sectors. Jefferson County has identified natural resource conservation as playing a positive role for economic development, contributing to a draw—as opposed to a loss—of economic development interests and potential employment growth to the area due to the quality of life and healthy environment. Additional Findings from the Jefferson County Comprehensive Plan: 3. The action is consistent with the goals and policies of the Jefferson County Comprehensive Plan for the preservation and enhancement of open space. The Jefferson County Comprehensive Plan identifies goals and policies for the preservation and enhancement of open space as follows: 2 a. Policy LU-P-15.2 Protect open space consistent with the goals and policies of this plan and in cooperation with County Conservation Futures and other land conservation programs. b. Open Space Goal OS-G-1 guides Jefferson County to "Preserve and improve the quality, value and extent of open space lands." Open Space Policy OS-P-1.4 "Identify and conserve critical wildlife habitat, including nesting sites, foraging areas, and migration corridors within or adjacent to natural areas, open spaces, and developed urban areas. Preserve especially sensitive habitat sites that support threatened species and wildlife habitat in developed areas." c. Natural Resources Goal NR-G-1 guides Jefferson County to "Encourage the conservation and long-term sustainable use of resource lands so their continued future use will not be precluded by other uses; and encourage the long-term sustainability of natural resource-based economic activities through Jefferson County. d. Economic Development Goal ED-G-6 guides Jefferson County to "Encourage economic development that sustains natural resources and open spaces, protects environmental quality, encourages non-motorized recreation and transportation, and enhances Jefferson County's overall quality of life." 4. None of the proposals include property in an Urban Growth Area or Rural Commercial area. Scope of Review: This review is conducted solely to ascertain the current Conservation Futures project's potential effect on housing supply and Employment growth. Any statements about the potential for future development or land divisions is predicated upon many factors for site suitability. All applicants are encouraged to take advantage of Community Development's customer assistance programs so that technical provisions of Jefferson County Code can be explained and applied to particular site-specific situations. Attachment 1: 2025 Conservation Futures Housing and Employment Analysis Spreadsheet 3 Attachment 1: CONSERVATION FUTURES HOUSING AND EMPLOYMENT ANALYSIS 2025 APN Zoning Project 'Current SFR+ADU Additional Theoretical ADU Est.Net New Site Characteristics Housing Employment/Jobs District Acreage SFR Yield of Project Allowance Theoretical PROJECT NAME Acreage D.U./ADU _ Deerfoot Forest Easement Both parcels are forested,gently sloping Both subject parcels are bounded by private and from N to 5,540 to 460 feet elevation.Road state timber lands,with clear-cut parcels to the access present with some site development. east.Natural resources employment sector. The northern parcel has a primary residence Cottage Industry and Home Business allowed. and an accessory residence.There are no critical areas that would preclude further residential development.Both parcels are identified by WDFW Priority Habitats and Species data to provide marbled murrelet habitat,though the area is not highlighted In the Marbled Murrelet--USFWS critical area map. Northern parcel 701052002 RR-20 28 2 0 0 0 One house and one ADU.No additional _ residential capacity. Southern parcel 701052011 RR-5 8.89 0 1 1 2 The parcel is vacant.The road segmentation of APN 701052011 by Dabob Road at Center Road,creates an area of 0.17 acres(7381 s.f.)which is not adequate to support residential development individually. 36.89 2 1 1 2 PROTECT NAME APN Zoning Acreage Current SFRs Additional Theoretical ADU Est.Net New Site Characteristics Housing Employment/lobs District SFR Yield Allowance Theoretical D.U./ADU Toandos Forest 701153003 RR-5 6.38 0 1 1 2 The parcel is forested,and bounded by state Old residential structure will be removed. Land use/employment is characterized as Acquisition&Restoration DNR Forest Lands.Upper watershed for fish- The theoretical D.U.count is based on a forestry.Cottage Industry and Home Business bearing stream.Parcel slopes W to E,528 to vacant parcel. allowed. 470 feet elevation.Slight landslide hazard mapped over east 2/3 of parcel(downslope). WDFW Priority Habitats and Species coverage identifies the area a Northern 'spotted owl habitat,but not shown on USFWS map. 6.38 0 1 1 Page 1 of 2 PROJECT NAME APN Zoning Acreage Current 5FRs Additional Theoretical ADU Est.Net New Site Characteristics Housing Employment/Jobs District SFR Yield Allowance Theoretical D.U./ADU Upper Yarr Creek Protection 801293003 RR-5 1.03 0 0 0 0 This one-acre vacant site lies along Center Parcel limited by size and critical areas for The small parcel is adjacent to,mostly road ROW,and is bounded to the north by residential development. surrounded by,private forest lands.Natural Old Tarboo Road.It is situated in the upper resources employment sector.Cottage Industry watershed of Tarboo Creek.There is a fish- and Home Business allowed. bearing stream(Tarr Creek)which bisects the parcel.After applying road and stream buffer setbacks,there is only ca.0.10 acre (4183 square feet)remaining—inadequate for residential development. 1.03 0 0 0 0 Summary totals: 44.3 2 2 2 4 ,.:Kt•7o . ,------J -, Conservation Futures ,; 1. �;` ' Jefferson County, Washington ii 1 : - i r ; i ! 11•x� i - _ j ',' —% K,. — �! 1 • . / _\ 1 f_ I j t '- �! • �, �1 1 �1lf ... —. } 1 a. ,..) ,.......... , , , - _....... i rl ti�s1•�-►►, g 1 .- • -ri. ! > cam' Mit -...- 1.....,,,„, ......,..--\': :II, ,j7', 2/ , tr— ;I" kiliii....",.....„; r____ ... . 1 .... 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Uj -amrc.Wildlife .kkkika_ kik Okinawa C.Estuary 2003 FieRkek Salmon Creek 1012 R., F.R. 7;1-=, ....., r.rtrvnee-ern.1.1 r•Srrow Greet 1FRas nrekennk',Nor m. - i Rona.Bead,County Park R..ki.20 a iikielion Forest<aRkenviation Russ 11 kil k i. 00 Forest Conservation RI, !jam ::a : 0. 1. -wa.Urban .«e,nm.smw,1 m�, o.tarry m,+a m .n mw use,mu .r` 1 `j'... as ,� - _.n .., •,,,, .. ?-mce ,m,dw OW)mtm cols tV) J IvHv.nnn Cnunt.I:Iti 4,,_ 615 Sheridan Street ff n Port Townsend, WA 98368 O`eCitintwww.JeffersonCountyPublicHealth.org Public Health TO: Jefferson County Board of Commissioners FROM: Joanne Pontrello, Chair Conservation Futures Fund Citizen Oversight Committee DATE: SUBJECT: Conservation Futures Fund Citizen Oversight Committee—2025 funding round recommendations As the Chair of the Conservation Futures Fund Citizen Oversight Committee (CFF Committee), I am writing to provide you with our funding recommendations for the 2025 cycle.As authorized in RCW 84.34 and by the direction of the Jefferson County Board of County Commissioners, the CFF Committee receives and reviews applications from the community to fund projects that will conserve lands as open space for compatible economic uses, habitat for fish and wildlife, and enjoyment. This past March,the CFF Committee received three applications for consideration in this cycle,that are presented with this memo. Also presented are the Sponsors' responses to some clarifying questions asked by the Committee. Two projects are sponsored by Northwest Watershed Institute (NWI), and one by Jefferson Land Trust (JLT).These sponsoring agencies meet the requirements of"nonprofit nature conservancy corporations", as defined by RCW 84.34.250. All three projects are located in Jefferson County and outside of the City of Port Townsend. • Deerfoot Forest—JLT requests$98,000 in acquisition funding and $12,000 in 0 & M funding for a total request of$110,000 towards a conservation easement(JLT provides 51% matching funds). • Toandos Forest—NWI requests$76,000 in acquisition funding and $18,500 in 0 & M funding for a total request of$94,500 towards a fee simple purchase (NWI provides 50% matching funds). • Upper Yarr Creek—NWI requests a total of$26,000 in acquisition funding toward a fee simple purchase (NWI provides 50% matching funds). This 2025 funding cycle, there are $323,200 in CFF funds available to support these projects.The total amount requested is$230,500. CFF Committee members toured the project sites on March 11th, and Sponsors made presentations about their projects and answered initial questions during our April 15t CFF Committee meeting. Additional questions raised by the Committee were provided to, and answered by, Sponsors Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f) 360-379-4487 through staff over email. Each Committee member separately scored the projects on a set of 13 criteria in order to assess the merits of protecting each property for open space and the likelihood of project success.The project ranking, as determined by the scores, was reviewed,discussed, and confirmed at the April 22' meeting. The CFF Committee ranked the projects as follows: 1. Toandos Forest—199 average points(75%of total available points) 2. Upper Yarr Creek—167 average points(66%of total available points) 3. Deerfoot Forest—163 average points (64%of total available points) Neither Deerfoot Forest nor Upper Yarr Creek scored at or above the 70%cutoff score required by the Program Manual to be automatically considered worthy of funding. In both cases,the committee saw that the conservation values of the projects were in actuality worthy of funding for the following reasons: Deerfoot Forest is an "ecological island" that has been managed well and has developed into a mature forest over the last 50 years. It has hydrologic value for two watersheds, which are protected further downstream. Upper Yarr Creek is a small,yet important property which is adjacent to a much larger preserve, and the conservation values are well-worth the low price of the property. If not preserved, it is likely that this section of the creek will see significant disturbance, which could compromise the work already being done downstream to project salmon habitat. After review of the scoring data, and further discussion and evaluation,the Committee arrived at the following funding recommendations: • The Committee voted unanimously that Toandos Forest is worthy of funding. By a second vote, we unanimously recommended full funding at the requested amount of$94,500. • The Committee voted eleven (11) in favor and one (1) against that Upper Yarr Creek is worthy of funding. By a second vote, the Committee voted eleven (11) in favor of and one (1) against recommending full funding at the requested amount of$26,000. • The Committee voted unanimously that Deerfoot Forest is worthy of funding. By a second vote,we unanimously recommended full funding at the requested amount of$110,000. I would like to express my gratitude to the Sponsors for submitting these projects, and to the other CFF Committee members for their time and dedication in evaluating these proposals. If you have any questions, please do not hesitate to contact me at pontrello@gmail.com, or Tami Pokorny at tpokorny@co.jefferson.wa.us. I look forward to attending the public hearing when you consider these recommendations and will be happy to discuss them at that time as well. Thank you for your consideration of the CFF Committee's recommendations for the 2025 funding cycle. Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f)360-379-4487 Sincerely, Joanne Pontrello Conservation Futures Fund Citizen Oversight Committee, Chair • Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f)360-379-4487