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HomeMy WebLinkAbout020 101 tt STATE OF WASHINGTON County of Jefferson Dedication of Conservation Futures Funds to the } Tamanowas Rock and Nicholson Short Plat } Project as Authorized by 84.34 RCW and in } RESOLUTION NO.20 =1.0 Accordance with Jefferson County Code Section } 3.08.030(7) to Provide a System of Public Open } Spaces } WHEREAS, conservation futures 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 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 84.34.220 to acquire open space land, agricultural and timber lands, as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Citizen Oversight Committee has reviewed project applications for 2010 and made its funding recommendations to the Board of County Commissioners in accordance with Jefferson County Code Section 3.08.030(7); and WHEREAS, under the provisions of the Jefferson County Conservation Futures Program, the Jefferson Land Trust, as project sponsor, requests funding towards the permanent protections of 129 acres of vacant land in Sec. 10, T. 29N, R. 1W with Assessor's Parcel Number 901102004, 901102006, 975000001, 975000002, 975000003, 975000005, 975000006, 975000007, 975000008, 975000009, 975000010; and WHEREAS, the County retains enough developable land to accommodate the Tamanowas Rock and Nicholson Short Plat Project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirements of Chapter 449, Laws of 2005; and WHEREAS Jefferson County considers it in the best public interest to contribute to this open space project. NOW THEREFORE BE IT RESOLVED that: 1. Jefferson County hereby dedicates up to $ 97,606. 00 in conservation futures funds in the 2010 funding cycle for acquisition expenses contingent on a matching contribution of no less than the amount of conservation futures funds requested. Resolution No.20 -10 re: Dedication of Conservation Futures Funds to the Spaces Project as Authorized by 84.34 RCW and in Accordance with Jefferson County Code Section 3.08.030(7) to Provide a System of Public Open Tamanowas Rock and Nicholson Short Plat 2. Jefferson County hereby dedicates up to S=1102.394.00 in conservation futures funds in the 2011 funding cycle for acquisition expenses contingent on a matching contribution of no less than the amount of conservation futures funds requested. 3. 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. APPROVED AND ADOPTED this day of 2010 in Port Townsend, Washington,,1 v t 9 v ` SEAL:' ` '� JEFFERSON BOUNTY r BOARD Q 1 ONERS a % Da v ulliv Chair ATTEJT; ' t w ii1 Phil Jo n, Member 1~;rm Lundared� � .� Deputy Clerk of the Board Jo Austin, Member <,,,ON 2010 Jefferson County Conservation Futures Program j Property Acquisition and /or Operations and Maintenance Project Application Please complete the following application in its entirety. Unless directed otherwise, use as much space as needed to answer each question. Incomplete applications will not be accepted.for consideration_ 1. Project Title: Tamanous Rock and Nicholson Short Plat 2. Conservation Futures Acquisition Request: $200,000 over two years 3. Conservation Futures O &M Request: $0 4. Please indicate the type of interest contemplated in the acquisition process. Warranty Deed Easement X Other (Please describe below.) In whose name will the property title be held after acquisition? Combination of both public ownership (State Parks) and Tribe ownership with a conservation easement held by Jefferson Land Trust. Ultimate protection measures will meet County Conservation Futures ownership and conservation easement requirements. 5. Applicant Information Name of Applicant or Organization: Jamestown S'Klallam Tribe, Washington State Parks, Jefferson Land Trust Contact: Liz Mueller, Jamestown S'Klallam Tribe Title: Vice Chair, Tribal Council Address:1033 Old Blyn Highway, Sequim, WA 98382 Phone: (360) 681 -4628, ext. _ _ Email:Imueller@jamestowntribe.org Name of Applicant or Organization: Washington State Parks, Contact: Bill Koss Title: Manager Address: POB 42650, Olympia WA 98504 -2650 Phone:360- 902 -8629, ext. _Fax: (, ext. Email: Bill.Koss@ parks.wa.gov http: / /www.co.j efferson.wa.us/ commissioners /Conservation /conservation.asp Fax: (360) 681-3450, ext. 6. Sponsor Information: (if different than applicant) Organization Name: Jefferson Land Trust Contact: Sarah Spaeth Title: Executive Director Address: 1033 Lawrence Street Phone: (360) 379 -9501, ext. Email:ed@saveland.org Fax: (360) 379 -9897, ext. This application was approved by the sponsor's legally responsible body (e.g., board, council, etc.) in public meeting on February 16, 2010 7. Site Location Street Address or Description of Location: Tamanous Rock Property - Section 10 Township 29 Range 1W I S1/2 SE NW, NESW(LS TX 43) Nicholson Short Plat - Replat of Nicholson's Irondale Reservoir Addition - Driving Directions from Port Townsend: Drive south from Port Townsend on Highway 19 to Anderson Lake Road. Turn west onto Anderson Lake Road and as the road curves to the left and starts up the hill, there are 2 dirt roads with gates on the right. Park at either one and walk up either dirt road to the 63 acre Tamanous Rock property. The existing dirt road goes through the 63 acres and on to the Nicholson Short Plat. The west corners of the Nicholson Short Plat can be reached from an Anderson Lake Park trail that connects near the SW corner of the Nicholson Short Plat, the NW property corner being just off the park trail, and the SW corner being about 100ft. below the top of a rise and east of the trail (see topo map), just over the edge of the east - facing slope. Section: 10 Township: 29 Range: 1W Assessor's Parcel Number(s): Tamanous Rock property - 901102004, 901102006 Nicholson Short Plat — 975000001, 975000002, 975000003, 975000005, 975000006, 975000007, 975000008,975000009,975000010 8. EXISTING CONDITIONS New Site: Yes No X Number of Parcels: 11 Addition to Existing Site: Yes X No Total Project Acreage (if different):_ Existing Structures /Facilities: None Acres to Be Acquired: 129 Current Zoning: Rural Residential 1:20 http: / /www_co.jefferson.wa.us/ commissioners /Conservation /conservation. asp 3 1 1 Any current covenants, easements or restrictions on land use: There is a 60 ft wide private ingress and egress easement that traverses the project area in a north - south direction. This reciprocal roadway and utility easement provides access to the Nicholson Short Plat through the Tamanous Rock properly. The easement is not maintained, though there is a passable dirt road on the existing easement. Project partners plan to vacate the easement. Current Use: Cultural, recreational, open space natural area Waterfront (name of body of water): property and the Nicholson Short Plat. property in 2005. Shoreline (linear feet): Owner Tidelands /Shorelands: Several wetlands have been identified on the Tamanous Rock A wetland report was completed for the Nicholson Short Plat 9. Current Property Owner X is _is not a willing seller. The Jamestown S'Klallam Tribe currently owns the Nicholson Short Plat and is interested in selling part or all of it to Washington State Parks. Jefferson Land Trust recently acquired the Tamanous Rock property from George Heidgerken with a private foundation loan as a temporary holding mechanism until State Parks and the Tribe secure funding for permanent acquisition. 10. In one -half page or less, provide a summary description of the project, the match, overarching goal, and three top objectives. Tamanous Rock, a local icon that is adjacent to Anderson Lake State Park, is of great cultural and spiritual significance to the Tribes from this region, and holds special significance for the local non - Indian community as well. Washington State Parks, Jamestown S'Klallam Tribe, Port Gamble S'Klallam Tribe, the Suquamish Tribe, Jefferson Land Trust, Northwest Watershed Institute, Jefferson County and the community have been working for more than 13 years to try to protect the Rock and the surrounding area from development. In 2005, the Jamestown S'Klallam Tribe obtained loans to purchase 86 acres adjacent to the Rock in imminent threat of development, including the 66 acre Nicholson Short Plat property. Jefferson County partially funded purchase of a conservation easement on 20 acres of the Tribe's property just to the north of the Rock, which was finalized in 2008 (Phase Tamanous Rock project — see map). In November, 2008, Washington State Parks entered into a Purchase and Sale Agreement with George Heidgerken for the 63 -acre Rock property. State Parks transferred that agreement to Jefferson Land Trust, and in December of 2009, the Land Trust purchased the property for $600,000. The property is currently held by JILT Resources, LLC, a subsidiary of the Land Trust. Funds for the purchase of the property primarily came from a $480,000, two -year loan from The Bullitt Foundation. The remainder of the funding was provided through Jamestown S'Klallam Tribe, who purchased an option on the Tamanous Rock property from the Land Trust. The Tribe borrowed $100,000 of this funding for two years from local community members. State Parks, the Jamestown Tribe and Jefferson Land Trust now seek grant funds for this Phase II element of the Rock protection, to repay the loans used to purchase the Rock and the Nicholson Short Plat that was temporarily secured by the Tribe. Long -term protection plans for the Rock property and the Nicholson Short Plat include a combination of State Park ownership and Jamestown S'Klallam Tribe ownership, as well as conservation easement protection with Jefferson Land Trust. It is likely that State Parks will acquire the Nicholson Short Plat and the southern portion of the Tamanous Rock parcel (approximately 23 acres) and the Jamestown S'Klallam Tribe will acquire 20 acres to add to the Tamanous Rock Sanctuary. The Jamestown Tribe http: / /www. co.jefferson.wa.us /commiss ioners /Conservation/conservation.asp is seeking federal matching funding for the project, and State Parks is considering applying for State Recreation and Conservation Office grant funds. Jefferson County Conservation Futures Funds are requested for a portion of the acquisition costs of both properties. The final design of the long -term ownership and protection strategy will be determined as the matching grant funding is secured and funding criteria of the grant programs is clear. The main goal of this project is to permanently protect Tamanous Rock and the surrounding forest, wetland and open space land from development. Three top objectives include: securing grant funds to repay the loans within the two year time frame, providing permanent protection through State Park ownership, Jamestown S'Klallam Tribe ownership and conservation easement security; creating a sanctuary around the Rock that honors the cultural significance and habitat values, and providing appropriate recreational opportunities for the local community and visitors to the area. 11. Estimate the total site acquisition costs below, including the cost for the entire property or property right, even if Conservation Futures funds will only cover a portion of that total cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. The 63 -acre Tamanous Rock property was appraised in the fall of 2009 at $600,000 and the Nicholson Short Plat was appraised at $275,000 in summer 2009. The Tribe has indicted that they may be able to sell the Nicholson Short Plat property to State Parks for below market value. Total Estimated Acquisition Cost: $875,000 Total Estimated Acquisition - related Cost (see Eligibility Checklist): $25, 000 Total Operation and Maintenance Cost: $25,000 Total Project Acquisition Cost: $925,000 Basis for Estimate (include general description of operation and maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work): Jefferson Land Trust has set aside $25,000 for stewardship costs over the next two years. These funds were contributed by community members during the Land Trust's 2009 auction. Maintenance work includes removal of large debris such as chunks of culvert; placement of several new gates or other traffic barriers and trail maintenance. 12a. Sponsor or other organizations X will will not contribute to acquisition of proposed site. b. If applicable, please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures program funds. The Jamestown S'Klallam Tribe has requested Federal funding through the Bureau of Indian Affairs for tribal cultural and religious sites and other federal appropriations, a new initiative through the Department of Interior. The request was made for 2011 budget appropriations and funding, if approved would occur in October 2010. It could also be included in the 2012 budget if it is not funded in the 2011 cycle. http:!lwww.co.jefferson. wa. us/ commissioners /Conservation/conservation.asp State Parks is considering an application to the State for 2010 Recreation and Conservation Office Park funding and /or a Federal Land and Water Conservation Fund grant for a portion of the acquisition cost of the properties. In addition, if neither of the above grant sources is approved, Jefferson Land Trust, Jamestown S'Klallam Tribe, Port Gamble S'Klallam Tribe and the Northwest Watershed Institute will be seeking other foundation and community funds to repay the loans for the Tamanous Rock property and the Nicholson Short Plat acquisition. c. Matching Fund Estimate Conservation Futures Funds Requested Matching Funds/Resources Total Project Acquisition Cost d. Source of matching Amount of Contribution funds /resources contribution approved? JamestownTribe $600,000_ Yes No State Parks Jefferson Land Trust _ $100,000_ $25,000 Yes No Yes No Amount $200.000 $725,000 $925,000 Percentage 22% 78% 100% If not, Contribution If not, when? available now? when? _Fall 2010 Yes No Spring 2011 Yes No Yes No NOTE. Matching funds are strongly recommended and a higher rating will be assigned to those projects that can guarantee additional resources for acquisition. Donation of property or a property right will be considered as a matching resource_ Donation of resources for on -going maintenance or stewardship will not be considered as a match. 13a.Sponsoring agency X is _is not prepared to provide long -term stewardship (maintenance, up -keep, etc.) for the proposed project site. Long —term stewardship of the Tamanous Rock and Nicholson Short Plat properties will be carried out by a combination of the participating partners' efforts. Project partners anticipate working together to address stewardship and maintenance issues, though for properties that are acquired by State Parks, the Parks staff will have primary oversight of stewardship and maintenance activities. For the portions of the properties that are acquired by the Jamestown S'Klallam Tribe, they will be the lead on stewardship efforts. Jefferson Land Trust will provide long -term stewardship of the conservation easement that will be placed on all or a portion of the proposed property acquisitions. b. Describe any existing programs or future plans for stewardship of the property, including the nature and extent of the commitment of resources to carry out the stewardship plan. While under Jefferson Land Trust's ownership, several stewardship activities are planned, including removal of debris, additional placement of gates and possible restoration efforts on existing trails and around the Rock. JILT is working closely with the Tribe and State Parks to determine the short-term and long -term management and restoration goals. The Land Trust has set aside $25,000 for immediate stewardship activities. Future plans for stewardship by project partners may include road and trail decommissioning, trail construction, removal of graffiti, replanting, and signage. http: / /ww w. co.j efferson.wa.us,/ commissioners /Conservation /conservation.asp 14. Describe the sponsoring agency's previous or on -going stewardship experience. The Land Trust has over 20 years of monitoring, stewardship and legal defense experience for conservation easements and preserved properties. We currently steward over 8,000 acres in Jefferson County. The Land Trust has a full time Stewardship Director that conducts monitoring, maintenance and restoration efforts with trained volunteers. We rely on qualified professionals, including habitat biologists, foresters and others as appropriate. 15. Has the sponsor and /or applicant of this project been involved in other projects previously approved for Conservation Futures funding? a. No, neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures funds. b. X Yes, the sponsor and /or applicant for this project has been involved in a project previously approved for Conservation Futures funds. Please provide details: The Jamestown S'Klallam Tribe received County Conservation Futures Funds for part of the value of a conservation easement protecting the 20 acres directly to the north of the Tamanous Rock 63 -acres and directly south from the Nicholson Short Plat. Jefferson Land Trust holds and stewards the easement. Jefferson Land Trust has sponsored numerous applications that have received Conservation Futures funds. These projects include: Sunfield Farm, 2003, Quimper Wildlife Corridor, 2004;; East Tarboo Creek Conservation Project, 2005; Tamanowas Rock Phase 1, 2006; the Winona Buffer Project, 2006; Glendale Farm, 2007, Finnriver Farm 2008, Brown Dairy and Winona Basin, 2009. 16a. Property Xcan _cannot feasibly be acquired in a timely fashion with available resources. b. Necessary commitments and agreements X are _are not in place. c. All parties X are _are not in agreement on the cost of acquisition. If "not" to any of the above, please explain below. Jefferson Land Trust's subsidiary, JILT Resources LLC is a willing seller of the Rock property to either the Jamestown Tribe or to State Parks, or a combination of the two. The Tribe is interested in selling the Nicholson Short Plat property to State Parks. The funding for acquisition of the portions of the Rock property by the Tribe and State Parks has not yet been secured, though applications have been submitted or are planned for this spring. At this point the most likely scenario is a combination of Federal Funding and State funding. Eligibility for grant funds to the State or the Tribe would be compromised if they had already acquired title to the land for which they were seeking grant funds. http: / /www. co_jefferson, wa. us /commissioners /Conservation /conservation. asp 17. The proposed acquisition X is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort. Please describe below, including the site's importance to the plan. Please provide a copy of'the plan with the application. _complements an adopted open space or conservation plan, but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. _is a stand -alone project. Tamanous Rock and surrounding area is identified in several regional plans as important for preservation. These plans include: Jamestown S'Klallam Tribe's comprehensive plan, which can be found on their website - Jamestowntribe.org. Specific to this application please see pages 13 -19 regarding land base and the importance for Tribe's to reacquire land within their usual and accustomed sites. On page 39 there is also a reference to purchasing land where cultural traditions can take place. The plan was approved and published in 2008. Anderson Lake State Park long -term boundary expansion area is covered in the Fort Flagler State Park Area Classification and Management Planning (CAMP). Page 14 - 16 indicate the adopted long term boundary for Anderson Lake. The link to the Anderson Lake State Park management plan is found at: http: / /www.parks.wa.gov/ plans /ftflagler /Management %20PIan %2OFinal.pdf . Jefferson Land Trust's newly adopted conservation plan for Jefferson County, prepared with the input of many community members, also specifically identifies the Tamanous Rock and surrounding area as important for protection for geological, cultural, recreational, and habitat value considerations. A draft of the plan has been submitted with this application, and the final plan will be located on the JLT website r m, ssaveiar:.;_ _ within the next month. Tamanous Rock is also listed in the Washington Heritage Register as having significant archeological interest. Washington State Heritage Register information can be found at www.dahp.wa.gov. 18. List the important milestones for this project. Securing the funding for permanent acquisition and protection by State Parks and Jamestown S'Klallam Tribe is the most critical milestone. It is critical that grant funds are secured for purchase of the property before the end of 2011. 19. Conservation Opportunity or Threat: a. The proposed acquisition site X does _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. b. If applicable, please carefully describe the nature and immediacy of the opportunity or threat, and any unique qualities about the site. Project partners worked together to purchase the property from George Heidgerken last year after he officially listed the property for sale for $1,200,000. Partners were concerned that the property would be purchased for development, and as a result State Parks entered into a Purchase and Sale Agreement with Heidgerken and Jefferson Land Trust and the Jamestown Tribe began to seek funding for the acquisition. The funds ultimately utilized for the purchase are temporary and Jefferson Land Trust's loan from The Bullitt Foundation for $480,000 is due to be repaid in December 2011. Several private loans to the Jamestown Tribe for $100,000 are also due at that time, as well as the $150,000 http: //www.co.jefferson. wa. us/ commissioners /Conservation /conservation.asp owed on the Nicholson Short Plat property. The Bullitt Foundation loan is secured by the property, so if project partners were unsuccessful at raising funds, the property would revert to them. 20. Describe the physical characteristics of the site that is proposed for acquisition with Conservation Futures Program funds including: vegetation, topography, surrounding land use, and relationship to parks, trails, and open space. The Tamanous Rock property and the Nicholson Short Plat parcels are mostly forested with scattered old growth fir and second growth mixed forest including Douglas Fir, Madrone, salal and ocean spray, characteristic of dry forest types in this area. Several wetlands are present on both sites, and wetland vegetation includes willow, sedges and other native wetland plants. Both properties are located on terraced lands above the Chimacum Creek Valley at elevations between 200 and 500 feet. A sharp ridge runs most of the length of the project area on the west side, with Tamanous Rock standing separately from this ridge to the east. The Rock is a unique geological formation - an immense monolith with caves, crevices and the cliffs to the west dating from 43 million years old during pre - Miocene times. Soils in the area show volcanic ash and the black residues of sedges, moss and trees from that time period. The Tamanous Rock area provides recharge for the largest PUD aquifer servicing the Tri Area Urban Growth Area. The project area is contiguous to Anderson Lake State Park on the west side (see map). The lands to the east are primarily developed for residential use. The Tamanous Rock and Nicholson Short Plat properties, along with the 20 -acre parcel located between them (Conservation Futures Fund Phase I, 2006) have for many years been regarded by community members and visitors as an extension of the park. Numerous trails provide for hiking, bird watching, horseback riding, bicycling and general passive recreational uses. Climbers from the local community and beyond have been drawn to Tamanous Rock and the cliffs behind. Trail enthusiasts are working to connect Anderson Lake State Park with Gibbs and Beausite Lakes located to the south. State Parks staff is investigating opportunities to provide trail connections between Anderson Lake State Park and the Olympic Discovery Trail. The park could serve as the gateway to extensive long- distance, multi -use trail opportunities. The park is also a key component of the Jefferson County non - motorized trail plan. 21. The proposed acquisition X provides habitat for State of Washington Priority Habitat or Federal Threatened, Endangered, or Sensitive Species X provides habitat for a variety of native flora or fauna species. X contributes to an existing or future wildlife corridor or migration route. If affirmative in any of the above, please describe below, and cite or provide documentation of species'use. The Tamanous Rock project area is home to numerous wildlife species, including a branch of the Sequim Elk herd. Other species include coyote, deer, and other small mammals. An eagle's nest is located 800 feet from the western edge of the Nicholson Short Plat parcel, and eagles are known to perch on old growth and other trees in the project area. Numerous amphibian species inhabit the wetlands and the uplands provide overwintering habitat. According to biologist Fred Sharpe, PhD and the local Native Plant Society, the Tamanous Rock area is the most ecologically diverse place on the Quimper Peninsula due to the presence of varied wetland, dry habitat and unique geological formations. Protection of this project area will also build on potential wildlife corridor habitat, as it ties with other protected properties including Sunfield Farm and several easements south of Anderson Lake. http: / /www.co.j efferson.wa, us/ commissioners /Conservation/conservation.asp 22a. Describe the extent and nature of current and planned agricultural use of the proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds. No agricultural use of the property is planned. b. Describe any participation by current property owner in any other agricultural land conservation programs, including the program and nature of the involvement. None 23. Describe the use planned for the site, any development plans after acquisition, characteristics of the site which demonstrate that it is well - suited to the proposed use, and plans for any habitable buildings currently on the site. The primary planned uses for the Rock property and Nicholson Short Plat include cultural and ceremonial use by local Tribes, passive recreational use and enjoyment, restoration of wetlands and other habitat, scientific and educational purposes and maintenance of trails. The Tribe and/or State Park may retain the right to build one caretaker cabin somewhere on the Rock property. The caretaker would provide interpretive and educational opportunities and a deterrent to inappropriate uses of the area. 24a. Proposed acquisition site and any subsequent planned passive development (as described above) X is is not part of a larger project. b. If applicable, describe how the site relates to the larger project, and whether the project has a plan, schedule and funding dedicated to its completion. Permanent protection of the Rock property and the Nicholson Short Plat is considered Phase II of a multi -phase project to create a Tamanous Rock sanctuary and expand the existing Anderson Lake State Park boundaries, in accordance with WSP's CAMP Plan (see question 17). Jefferson County Conservation Futures' support of the purchase of a conservation easement on the 20 acre Jamestown Tribal property was considered Phase i. Once permanent funding has been secured, the properties have been transferred, and an easement is in place the Tamanous Rock project will be complete, with the exception of long -term management and stewardship activities. 25. 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 acquisition of the Tamanous Rock property by the Jamestown S'Klallam Tribe and State Parks will benefit residents and visitors to the greater Olympic Peninsula. Permanent protection of the site has great significance to several local tribes, and inclusion of additional land into Anderson Lake State Park has been acknowledged as contributing to the greater appeal of the park to local community members as well as regional visitors. The permanent protection of these sites will provide cultural, spiritual and ecological benefits, and will provide visitors with a sense of being in a rare and beautiful part of this region. Planned trail connections with the Olympic Discovery Trail, as well as Gibbs and Beausite County Parks to the south, will benefit residents and visitors alike. http: / /www.co.jefferson.wa.us/ commissioners /Conservation/conservation.asp 10 26. Describe the educational or interpretive opportunities that exist for providing 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. Project partners have plans for educational and interpretive displays and programs for the Tamanous Rock property that include imparting information to schools and other community groups about the cultural, spiritual, geological and natural history significance of the site. Plans for appropriate public access are being determined by all project partners, and will include analyzing existing trail design and use, future needs and possibilities, and habitat values. Some trails may be improved or added and some may be decommissioned. The factors to be considered in this evaluation will be public safety and habitat protection. Access may be limited during some sacred Tribal ceremonies. 27. The proposed acquisition X includes historic or culturally significant resources and _ is registered with the National Register of Historic Places, or an equivalent program. X is recognized locally has having historic or cultural resources. X is adjacent to and provides a buffer for a historic or cultural site. If affirmative in any of the above, please describe below, and cite or provide documentation of the historical or cultural resources. Tamanous Rock was listed in the Washington Heritage Register in 1976 as having significant archeological interest. In 1977 the Rock was nominated to the United States Department of Interior as an historic site based upon well -known stories about the Rock. However, the nomination was not approved due to a lack of archeological evidence which could not have been acquired without extensive digging around the Rock. 28a. Describe the extent and nature of current and planned silvicultural use of the proposed acquisition. Please cite or provide documentation of existing or planned silvicult Ural activities including forest management plan(s). No silvicultural activities are planned unless for forest health b. Describe any participation by current property owner in silviculture conservation programs, including the program and nature of the involvement. None 29. Sponsors of applications 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 O &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. http: / /www.co.jefferson.wa.us/ commissioners /Conservation /conservation.asp 1 1 If this application is approved for funding, I understand the sponsor is required to submit progress reports for three years and for any year in which O &M funds are expended. Initials , i12 Date 30. If, three years after the date funding is approved by the Board of County Commissioners, the applicants have 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 application 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 Initials 3 i D Date 31. Are there any critical dates, e.g, grant deadlines, for your project that the Committee should know about? Please list the dates and explain their importance. As mentioned above, the loans to Jefferson Land Trust and the Jamestown Tribe are due in December 2011. The Jamestown Tribe should have indication from the Federal grant program sometime this fall, and State Parks will receive notification of funding availability in 2010. 2010 Jefferson County Conservation Futures Program Ratings Sheets http: / /www.co.jefferson.wa.us/ commissioners /Conservation/conservation.asp 12 TAMANOUS ROCK Phase II CONSERVATION FUTURES FUNDS ILLUSTRATIONS - 2010 View from top of Tamanous Rock looking northeast View below Tamanous Rock Cliff complex West side of Tamanous Rock Nicholson Short Plat — NW corner looking west Trail /road on Nicholson Short Plat - mid property looking west Legend Tamanowas Rock Phase II Jefferson Land Trust MTamanomsRockPhasell_Subject Properly Jul '2009 Ander�m Lake State Park Surrounding Conservation Land y' O JKT- Conserve[ ionPmperly _ Tama nowasROCkPhasel_BOacres Tamanowas Rock Phase II Feet h Feasibility JNt_ JLtconservationeasement _7amanowasROCkPhasel_2oacres 0 375 750 1,500 N ATConservatlonEasement_8oa «es 2006 Aerial (NAIP) Legend w Tamanowas Rock Phase II Jefferson Land Trust ON TamanowasRockPhasell_Boundaries Approximate Boundaries February, 2009 F Tamanowas Rock Phase II Feet 2006 Aerial (NAIP) 0 125 250 500 Feasibility Anderson Lake State Park area properties of interest to Washington State Parks, Jamestown S'Clallam Tribe, Jefferson Land Trust, and Jefferson Trails Coalition for links to and routing of the Olympic Discovery Trail y Y i k t ; Lry } E £ - (( R f S { s ki E;''i 3 � t S v yy JLT RESOURCES, LLC P. O. Box 353 Port Townsend, WA 98398 360.379.9421 February 23, 2010 TO: Jefferson Land Trust FROM: JLT Resources, LLC RE: Proof of Willing Seller Parcel Nos.: 901 102 004, 901 102 006 JLT Resources, LLC is the legal owner of the above mentioned lots. JLT Resources, LLC hereby authorizes Jefferson Land Trust to pursue the sale of the above mentioned lots of the Tamanous Rock Sanctuary for $600,000.00 to Washington State Parks or the Jamestown S'Klallan Tribe for the purpose of permanent protection of the property. Denise Pranger, Pre de JLT Resources, LLC 1033 Old Blyn Highway, Sequim, WA 98382 360/683 -1109 FAX 360/681 -4643 February 24, 2010 TO: Jefferson Land Trust FROM: Jamestown S'Klallam Tribe RE: Proof of Willing Seller Parcel Nos.: 975 000 001, 975 000 002, 975 000 003, 975 000 005, 975 000 006, 975 000 007, 975 00 008, 975 000 009, 975 000 010 The Jamestown S'Klallam Tribe hereby authorizes Jefferson Land Trust to pursue the purchase of the above mentioned lots of the Nicholson's Irondale Reservoir Addition for $275,000.00. The agreement to sell is done to promote the continuance of land acquisition by Jefferson Land Trust for the Tamanous Rock project area. W. Ron Allen, Tn a Chairman/CEO 2010 n Jefferson Land Trust RESOLUTION February 16, 2010 WHEREAS, Jefferson Land Trust is submitting two applications for 2010 Conservation Futures Funding; the projects are Tamanous Rock and Salmon Creek Riparian Acquisition, and WHEREAS, for the last few years, Jefferson Land Trust has worked in partnership with the Jamestown S'Klallam Tribe, the Port Gamble S'Klallam Tribe, Jefferson County, Washington State Parks, and numerous community members to protect the unique geological, cultural and biological feature known as Tamanous Rock, and WHEREAS tribal members, naturalists and scientists and community members have recommended that the area that includes Tamanous Rock and adjacent acreage around the Rock be protected to create a sanctuary for humans and wildlife, and WHEREAS, this important community asset will require stewardship in perpetuity, to include annual monitoring, maintenance and management, WHEREAS, for applicants who submit more than one request for funding are required by Conservation Futures Funding Program to rank applications by highest priority, BE IT HEREBY RESOLVED that the Board of Directors of Jefferson Land Trust has agreed that Tamanous Rock is the highest priority for 2010 Conservation Futures Funding. The next highest priority is funding for the Salmon Creek Riparian Acquisition for which Jefferson Land Trust is requesting Conservation Futures Funding to match the Salmon Recovery Funding Board Grant already secured. The Salmon Creek Riparian Acquisition represents a collaborative effort with Chumsortium partners to preserve this important salmon habitat. Signed this day 14 of r— 6' 2010. Owen Fairbardc, President, Board of Directors Jefferson Land Trust x INTERNAL REVENUE SERVICE DISTRICT DIRECTOR 2 CUPANIA CIRCLE - MONTEREY PARK, CA 91755 -7406 Date: MAY 03 1994 JEFFERSON LAND TRUST C/O DOUG MASON PRES PO BOX 1610. PORT TOWNSEND, WA 98368 -0109 Dear Applicant: DEPARTMENT OF THE TREASURY Employer Identification Number: 91- 1465078 Case Number: 954109002 Contact Person: TYRONE THOMAS Contact Telephone Number: (213) 894 -2289 Our Letter Dated: May 08, 1990 Addendum Applies: No 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, t� R. Or� ossccov District Director Letter 1050 (DO /CG) .r Jefferson Land Trust Operating Budget 2010 WItserver'JeNerson Land Trus"a_S &P Style File System\6.Financial and Asset Managementl6A.Annual Budget\Budgel120101Final Board Approved Budget\ Fin_ Budget_ Comp_ 1192010 .xlsFin_Budget_Comp_1192010.xts Page 1 M4 2010 Proposed, Budget Notes Ordinary IncomelExpense -_ Income i I Ali Who r �4,i ! „,� _ ,__. �1kfr. -x. •=mr �R,��r��C�'ipti' Iif.414roi='�.I +.k .,.�3}v<„- _ 14070 Unrestricted Grants —._ ' � 4020 - Unrestricted Capital Campaigns_ 50000 - J fmM for JLT opportunities not specified currently one indvitlual 4021 O rtunnty fund 5,000.00 donates to Nis fund every year 14022 Cluimp., Opportunity Fund �_ 0.00 Account no longer used far QWC, see account 4524 Totd14020 Unrestricted Capital Campaigns _ 5,00 j - ;,4030 Unrestricted Donations i 1 1 1,000 Lard has been donated every typiglly in me QWC 4031 Donated_ Land _ 4032 Donated Se ces_— .001 year owl - Tota 40 130 - unrestricted nonadens T - 1,060 w f 4040 - Unrestricted Stewardship (Long Term) - • " -i _ 4(161 New Contributions _* re -[Total 4040 -Unrestricted Stewadshp _ 8,000.00 Contribution from Find River ($4,000) and Brawn Dairy (54,000) 8,000.00 I L � I _. 4050 Value Conservation Easements 'Total 4000 unrestricted LAS Income 14,500.001 ..... . Yl -. ' .♦ ,, yi ii .y,v _- tx. t1- ” 9Ir 4510 Restricted Land Acaul% Giants _ Reimburseable grant income for expenses other then payroll, see 4512 - State Grand Salmon Nabilat 48.650.00 budget Grant wrksheet for details I Reimburseable grant insane for expenses other than payroll, see ' i4514-SMte Grant i - -_' budet Grant Wrksheel fa details 704,0]500'i g _ I I 14516 Federal Grant 000 Miscellaneous gran! Total4510 ResMCtetl Land Acquts Grants _ 152,725.00 _ 4520 Restncted Capitol Campaigns _ - -_ - P - I t _ n j 6527 Campaign Contributions _ 0.00 - __452"uin6ter Wildlife COmtlor 75,00000 Continuation of Qmmper Wildlife Corridor campaign I. i 'Total 1620-Restricted Capital Campaigns '' 75,000.00 ' 14540 - Restricted Stewardship FmMa �4541 New COnNbWOra Bubs Fund -donor restricted fund Interest must be used for Bulis 4542 Interest Income - t 1 2,00000 . - stewardship _ T- 4543 - Grant Income _. f 000 r (.. ) 14545 - Glen Cove Income moved too rations 0100 (Glen Cove �s a contract that will be reflected in Fee for Service - Stewardshm in 2010 ToWI4540-Restricted Stewardship Funds 1 � _ I I 14550 Restricted Non- government Grant _l 1 j 4551 Foundation Grants 10,000.00 1 4550 Restricted NOn- govemmeMGrant -Other I 000 L- Total 4550 - Restricted Non - government Grant 1 1i 0,000.00 r 4500 - Restricted_ US Income -Other - - _ I k _'�. 000 - .. - -_- i. Total _ 4W - Restricted US Income ffor operational- - 1]9,]25.00 1. 1 _4548 - Mul &Year, CnbbM LT Stew Fund (Capital Fund) 0.00 JL ITotal Restricted US Income 179,725.00 i5 .';�3�tk}!�Lkxx 4,'fji� tEh .:i A M I �� Yi#{�Cix°:� s1�9�mis�ndol� i w 1 15100 Individual Annul Contributions � -.5702 i Annual Membership §0 -f69 'NA _ _ -�_ 5103 Annual Membership $50 $99 ANA _ 5104 Annual Membenshi $100.$249 i- p- i1.5105 T NA "'Per Development Budget Worksheet - Annual Membershi -$250 f699- �f'- � INA WItserver'JeNerson Land Trus"a_S &P Style File System\6.Financial and Asset Managementl6A.Annual Budget\Budgel120101Final Board Approved Budget\ Fin_ Budget_ Comp_ 1192010 .xlsFin_Budget_Comp_1192010.xts Page 1 M4 Jefferson Land Trust Operating Budget 2010 p Annual Membership - $500-$999 _- _- -- - 20�000)DO. Annual Membership- $1000+ 20000.00 Per Development Budget Worksheet _ �. � Per Development Budget Worksheet, includes both AIC 51M and Miss Individual Dona_ tons _ _ 10000005M 30,000.00 Worksheet) Per Development Budget Worksheet. assumes 4th S25,000grant Stewardship Operation 25 000.00'from Schneider Family Fund for StewaMsh p operations. _. -.. _- WwBPlace giving IcorP matches) i. 0 W : See acanunt 5108 , . - - _ __ _.. 5100 Individual Annual Contribution Multi-Year Contrbtns Per 5125 -Per year Amount -$500 -$999 15126 -Per yearAmount- Ef0o0+ 1i 5420 ear derltrbNS f 150000.00 Based on 30 new Century $tewards($1,000'5 years -30 individuals) Income 40,000.00$10000 JCCF Grant $30,000 other grant Income j 1 Special Event- the only event booked in this category is the RainFest AuIXron 50000.00 Per Oevebpment Budge[ Worksheet 7 T ---- 10,OWOO- Per OevelopmentSWget Worksheet -- _ _ .. _ - Other Facility Rental 6104 600 W Advams ng - $40.0 Rainiest 5200 other (2009 $5W) n O.W. - .. $300 Annual Meeting, $1,500 RainFest, $300 Visunteer Party. 5900 11 Ask Event (overall increase due to expected general increase In 3,000AOI facity charges and more space for in membership) - _ _ _._ $6000 RainFest 5100 Annual Meetmg, $t,000 General Outreach, $5,000 Ask Event, $500 Volunteers $2, 400 OWC(increase mclWas lment 15,OW.00momes for mayor donorworking fund) $200 Annual Meeting, $800 Newsletter, $150 YE Appeal, $200 'Membership On", $200 Fee Renewal wIUSPS. $500 General 1 (Outreach. 8245 Fundraising, $40 Stewardship, $40 Grant submittals 2,375001(same amount as 2009 budget) 1 _. -__ _. $1500 Newsletter. $1 000 membership, $700 Stewardship am Land. 1$50 grant submittals, $50 volunteer party, $100 annual meeting, 1 $1200 RainFest, SW Edue/Oulreach, 5400 Century Steward Breakfast, $7W map printing, $200 Farm Tour, $400 Picnic (same 4WltserverUefferson Land Trustlaa_S&P Style File Systern%.Financial and Asset Managementl6A.Annual BudgetlBudget120101Final Board Approved BudgetSFin_ Budget_ Comp_ 1192010 .xlsFin_Budget_Comp_1192010.xis Page 2 of a TOta15420 ponsorships- �. � 10,00000 _.._ 6430 Fund a Need! 30,000.00 Worksheet) Based on 2000 ReoFest contributions (not included in Development 5-040 In48M COMnbution - '' 2,00000 Budget WOMsheet) I* ITotal 5400 - Events Income 92,00000 X5600 Fee for_Servme lrrcom_e i Reimburseable grant income for expenes other than SBW ,per L 5501- GmMAdminfBaselim, T _.. 9255ZOO_• hudgetworkshealper SS seebudgel Grantworksheetforde tels -. —.. _ 5502 Easement Preparation 000 'I Contracts for 2010 it 500 Jeff Cty $t 000 Glen Cove S3 .00t) Hoh 15503 Stewardshp 7,503,00 R ver Tmsl 5504 -Other consulting 000 I I 5505 EducaOOnal SeMnrPrograms 200.00 Workshops, etc. Total 5500 -Fee for Service Income i 100,25_7 00'1 FF56L Frontier Bank Savings and Co. VerguaM estimate Tapley- . 5800 Operations Interes00ividend 110.000,00 Brown loan - �i 5900 Other - _ _ -�_ 15910 Other 100.00 _ _ 5920 Sponsorship Ir Il___ 5,000.00 Conservation Breakfast �T _ - Total $000 Operations Income P 472,357.00 Facility Rental 6104 600 W Advams ng - $40.0 Rainiest 5200 other (2009 $5W) n O.W. - .. $300 Annual Meeting, $1,500 RainFest, $300 Visunteer Party. 5900 11 Ask Event (overall increase due to expected general increase In 3,000AOI facity charges and more space for in membership) - _ _ _._ $6000 RainFest 5100 Annual Meetmg, $t,000 General Outreach, $5,000 Ask Event, $500 Volunteers $2, 400 OWC(increase mclWas lment 15,OW.00momes for mayor donorworking fund) $200 Annual Meeting, $800 Newsletter, $150 YE Appeal, $200 'Membership On", $200 Fee Renewal wIUSPS. $500 General 1 (Outreach. 8245 Fundraising, $40 Stewardship, $40 Grant submittals 2,375001(same amount as 2009 budget) 1 _. -__ _. $1500 Newsletter. $1 000 membership, $700 Stewardship am Land. 1$50 grant submittals, $50 volunteer party, $100 annual meeting, 1 $1200 RainFest, SW Edue/Oulreach, 5400 Century Steward Breakfast, $7W map printing, $200 Farm Tour, $400 Picnic (same 4WltserverUefferson Land Trustlaa_S&P Style File Systern%.Financial and Asset Managementl6A.Annual BudgetlBudget120101Final Board Approved BudgetSFin_ Budget_ Comp_ 1192010 .xlsFin_Budget_Comp_1192010.xis Page 2 of a Jefferson Land Trust Operating Budget 2010 \WltserveNefferson Land Trust\aa -S &P Style File System\6.Financial and Asset Management\6A.Annual BudgeABudget\2010 \Final Board Approved Budget\ Fin_ Budget_ Comp_ 1192010 .xisFin_Budget_Comp_1192010.xls Page 3 of 4 Staff Nolunteer Training, $ 1000 Project Evaluation (same amount as ' 6108 Travel 2,250 00 12009 budget) 6109 Supplies e aoun[as 2009 budget) 2250001$2,200 RainFasf$ 50 Ask Event (same _ � .,6110 Other Expenses _ ', 25000 $150 Lobbying. $100 General Outreach (Weed on 2009 expense) 'Total 61M Program Expenses 32.225 W 16200 -Land and Stewardship Expenses -� - ! 6210 Acquisition and conv once _ - +_ - 'ISee 1 6211q Closing Fees ® 1500.00 Grant Reimbursement Worksheet_ _ !. !6212 Excise Tax Tr 0001 - -_. L13 - PropertylEasemant Punch Price _ �. 0.001 '�, �'6�14 TiOe lnsuance ' 650000',See Grail Reimbursement Worksheet 16216-Rewrding fees 40000. See Grant Reimbursement Worksheet t88210 - Acquisition and conveyance Other L _conv -. ' TOta16210 Acquisition and conveyance 8,400.00 6230 LanNEassment Holding Expenses 6232 Fce Simple Fire protection fees 300 00,Based on 21709 a pare - _ _ 6233 F. Simple Property Taxes 4,2D0 00 Based on history plus $3,000 for T Rack _.. 15234 Fee Simple Stewardship -_ 2550000'.Signage plus other stewardship for TROCk - _conv _ -16236 Easement Stewardship_ __. ._._- 100000'l.- - 1166237 Other 0001 _ _ 1 - 15239 JLT LandlStawardshlp Expenses _ 600 l6239 Write down Conservation Easements 0001, L Total 6230 LandlEasement Holding Expenses _ I, Total 6200- Land and Stewardship Expenses - I �. I 39,40000_ 16300 Professiunalservices — ------ I Estimated! per SS, work started in 2009 and will continue through 6301 - Management PlaNConservation Plan _ 10,000W12010 Reimburseable expense Per budget worksheet per SS, see budget Appraisals 66,000.00. Grant worksheet for details < - _,6303- _. _.. -_ _. -.. _ —t-.` - Reimburssable expense Per budget worksheet per SS, see budget 6307. Environmental Assessments .conv 7,500.W Grant worksheet for details (- —conv _ Reimburseable expense per budget worksheelpw SS, see budget 16305 Land Consulting T-.. - -_ m - - -. 22,750001Gm worksheet for details Reimburseable expense per budget worksheet per SS, sea budget 6306 Legal 5,500.00IGranl worksheet for details +— .6307 Mapping___ —_—___ 3,000.00iEStimated per EK _ Reimburseable expense per budget worksheet per SS, see budget ,6308. Surveys conv-_ -� -- - -- -� - -- 14,2!:.00'. Grant worksheet for debis - ' 6309- Gmphiu _._.__.._ 2,000.00''�Brochure planned for 2010 11$10,000 video, 58,000 Ra,hFest ocnsultant $3.000 Auctioneer, 1$11,000 PartTime Event Coordinator, $29,325 other reimburceable expense per budget worksheet per SS. $20,000 Strategic Plan 8310�01her Professional 81,32500 Consultant ' 16311 1andyyorka Consulting - 2,000,00 JLT Share of Kale Dean expense �- Total 6300- Professional services �- _ -; 214,275.00, � Tool COGS. I 28590000 Gross Profit', 1 1 ! 17000 - Operations Expense I 7100 Admin Once E Expenses 1 7101 Accounting /Bookeeping Services 15 200 00'. S13200 Clardy, $2,000 Clark Nuber Review, of Form 990 - 7102 Advertising 250 00'Conlingenry far volunteers or hiring �I G- i pf03-BaMC Service Charges conv -- __. 300.00 Based on 2009 expense ' 71004- Insurance 552000 'D80 insurance, based on 2009 expense -1710 nternet_ _ - -. 900.00 Based on Owest bills for access in 2009 —__ 1 � 1Mll 'Based on estimated expense per Firs[ Data, rsetlit Ards will be Credit Card fees - Nova _ , 2 500.00', processed by JLT staff in 2010__ T 1171110. Equipmenvittuniture purchase _ p - -- 2200T00 equipment less than $500 per purchase zatbn policy) -- 7111 Eui enfttum:Wre matrrteaance q pm ! 7113 -_ 2000.00 Typically printer or computer maintenance _ _._ _ Do or Data Base � 1 i 3,315.00' pestry subscri Lion costs O an - __— _ 17114. Office Supplies 1 1,8D0 00 Based on 2009 expense \WltserveNefferson Land Trust\aa -S &P Style File System\6.Financial and Asset Management\6A.Annual BudgeABudget\2010 \Final Board Approved Budget\ Fin_ Budget_ Comp_ 1192010 .xisFin_Budget_Comp_1192010.xls Page 3 of 4 Jefferson Land Trust Operating Budget 2010 1WltserverWefferson Land Trustlaa_S8P Style File System56.Financial and Asset Managementk6A.Annual BudgetlBudget120101Final Board Approved Budget\Fin_Budget_ Comp_ 1192010 .xisFin_Budget_Comp_1192010.xls Page 4 of 4 7115 Postage and shipping 140000'Based on 2009 expense _9e- _._- _._ _...... __ n t an u rca t - Basetl on a in expense e9_ r n9 2 errt _ expense fw 2010 _ 16980�IBased -- �-- { -_ _ Telephone 2.10000.Nemorosemrexpe J Basetl on 2009 expense on 2009 expense related to attentlanw at forums, boaN ]119 Travel -- _ 500 plaming retreat_other meetings not program related 17120 OOlroes - - 1 4000018ased on 2009 expanse - _" - - 1121 De- -se n 120000. 17122 Web DCSlgnretalntenance 1,200.00!Basetl n 2009 expense for NexlPage services, Could be adjusted - t__- _ - - -_- - _ ___ - -__. _ .1i23�Otlier 50000 Miscellannus purchases Based on 2009 expense mm Increase for hats -includes volunteer 117124 Volunteers 2,500.0OPthank -you gifts (e .q tech help)__ rl _ Basedn2009 etyense - LTA dues WALT tlues, booksrmagazisis, 7125 Dues & 2 Constant - 7126 F od 8 EMeRa ntment r 5W W 2009 a I Basetl n 2009 expense 7127 Accreditation .. _. ..... -0.00 No _- ____ _ effeed expensesn2010 7128 Pay Pal Fee 90.D01 Based on 2009 expense �- _- -- 7129 Based n 2009 expense will adjust based n stock donations Management Fee _ _ _ 0 130 - Donations 000. ]101 Finance ChargeslLats Fees owl h190 Bad Debt Expense 1 500 00�� t- _._ - _ -- --- - 200 &2009 M1ISto7 I _ � - - 1 (Basetl on Total 7100 Admin Office Expenses 67 355.00 - t 1 ]200 Training - _ M -- "- 702 Onsitetratmng_-_ 000 _ -- l 4 - D4- Dues Subscriptions Training 5000.000 LTA east coast LTA regional conference 72D3 Off rt eoo 7 _ iTotal 72M Training 17M Salary, PR tax, barrel Payroll Staff Adjustment Worksheet, assumes change in staff , T~ �h_ IISee _ 14 Budget Payroll 239311. %increase I T 17360 Health Insurance 35,897001_ Simple IRA with 2% JILT mntnbution rather than match of employee I 7,,65 SIMPLE IRA Match 4,786.00 Contribution 7310 Payroll Taxes I_ (Total 7370 - Payroll Taxes 28.143.00 Tota17300 Salary,PRtax,berrefits 308137 00 Total 7000 Operations Expense 380,492.00, !I- Total Expense -_ '. 666,392001 �e _�I off w/o off CE 0001 xp� Write Inca ome ..,. >,: t a 1WltserverWefferson Land Trustlaa_S8P Style File System56.Financial and Asset Managementk6A.Annual BudgetlBudget120101Final Board Approved Budget\Fin_Budget_ Comp_ 1192010 .xisFin_Budget_Comp_1192010.xls Page 4 of 4 C G LL H U, C cr C Q C cc Q Lu r U nC LL LL LL L4 r E O O c N c E O E 0 a m O O d L C >m > N d 0 0 h d O c p L E m c Y m _ o c m m r Z5 a c 00 m N p N h m � U V U _� N M N O (O v 4 e`li 0. OJ '. 0 ' m a S N r. s J M (n C m O (O M N '- m O O m� x Q C) lO7 0 [MAD 4_ C O C A C O VO C � y QQQS � _ N a m N nfi N O 2 0 o E L @ .c U N U O N i E d� l Ii a N U c W � � I co O I Iru; c c 0 a`� an E d c ii L L o m Q w y Of w c z m co R L c-5 Y C O P' M Q S W Z U U) I JEFFERSONLAND TRUST AND SUBSIDIARY Consolidated Financial Statements and Independent Accountants' Review Report December 31, 2008 Table of Contents Independent Accountants' Review Report Consolidated Financial Statements: Consolidated Statement of Financial Position Consolidated Statement of Activities Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements Supplemental Information: Consolidated Statement of Functional Expenses .,:, 5 -12 13 Independent Accountants' Review Report Board of Directors Jefferson Land Trust and Subsidiary Port Townsend, Washington We have reviewed the accompanying consolidated statement of financial position of Jefferson Land Trust and Subsidiary (collectively, JLT, a nonprofit organization) as of December 31, 2008, and the related consolidated statements of activities and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these consolidated financial statements is the representation of the management of JLT. A review consists principally of inquiries of JLT personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying consolidated financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. Our review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The information included in the accompanying statement of functional expenses on page 13 is presented only for supplementary analysis purposes. Such information has been subjected to the inquiry and analytical procedures applied in the review of the basic financial statements, and we are not aware of any material modifications that should be made thereto. Certified Public Accountants Bellevue, Washington June 12, 2009 JEFFERSON LAND TRUST AND SUBSIDIARY Consolidated Statement of Financial Position December 31, 2008 Assets: Cash and equivalents $ 559,515 Investments (Note 2) 240,345 Accounts receivable 123,737 Pledges receivable (Note 3) 468,328 Prepaid 30,000 Land, conservation easements, and purchase options Habitat land 388,303 Working land 325,432 Open space land 167,093 Conservation easements 35 Land purchase option 30,000 Total land, conservation easements, and purchase options (Note 4) 910,863 Furniture and equipment, net of depreciation of $7,856 5,351 Total Assets $ 2,338,139 Liabilities and Net Assets: Accounts payable $ 13,798 Accrued expenses and deferred revenue 30,136 Long -term debt (Note 5) 223,061 Total Liabilities 266,995 Net Assets: Unrestricted (Note 7): Undesignated 270,369 Board designated 841,933 Total unrestricted net assets 1,112,302 Temporarily restricted (Note 8) 958,842 Total Net Assets 2,071,144 Total Liabilities and Net Assets $ 2,338,139 See accompanying notes and accountants'report. -2- JEFFERSON LAND TRUSTAND SUBSIDIARY Consolidated Statement of Activities For the Year Ended December 31, 2008 Revenue, Gains and Losses: Gifts and contributions Fair value of easement acquistions Grants and contracts Special events income, net of expenses of $17,427 Net loss on investments Gain on sale of habitat land property Rental income Release from purpose restriction Total Revenue, Gains and Losses Expenses: Program General and administrative Fundraising Total Expenses Change in Net Assets Beginning of year net assets, as adjusted (Note 9) End of Year Net Assets See accompanying notes and accountants'report. -3- Temporarily Unrestricted Restricted $ 346,227 $ 594,436 1,198,820 160,336 85,359 (54,106) 94,182 21,615 30,941 (30,941) 1,883,374 563,495 1,604,890 121,282 46,341 1,772,513 Total 940,663 1,198,820 160,336 85,359 (54,106) 94,182 21,615 2,446,869 1,604,890 121,282 46,341 1,772,513 110,861 563,495 674,356 1,001,441 395,347 1,396,788 $ 1,112,302 $ 958,842 $ 2,071,144 JEFFERSONLAND TRUSTAND SUBSIDIARY Consolidated Statement of Cash Flows For the Year Ended December 31, 2008 Cash Flows from Operating Activities: Change in net assets $ 674,356 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 1,720 Donated land and easements (38,930) Realized and unrealized loss on investments 71,294 Gain on sale of land (95,362) Changes in assets and liabilities: Accounts receivable (64,822) Pledges receivable (159,340) Accounts payable 11,414 Accrued expenses 13,256 Net Cash Provided by Operating Activities 413,586 Cash Flows from Investing Activities: Purchases of investments (7,838) Proceeds from sale of investments 5,245 Purchases of land and land purchase option (161,426) Proceeds from sale of land 126,180 Purchases of furniture and equipment (823) Net Cash Used by investing Activities (38,662) Cash Flows from Financing Activities: Payments on long term debt (3,049) Net Cash Used by Financing Activities (3,049) Net Change in Cash and Cash Equivalents 371,875 Cash balance, beginning of year 187,640 Cash Balance, End of Year $ 559,515 Supplemental Disclosure of Cash Flow Information: Cash paid for interest $ 18,566 See accompanying notes and accountants'report. -4- JEFFERSONLAND TRUSTAND SUBSIDIARY Notes to Consolidated Financial Statements Note I - Organization and Summary of Significant Accounting Policies Organization - Jefferson Land Trust (the Land Trust) is a Washington nonprofit 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. The Land Trust has been accredited by the national Land Trust Alliance as of August 5, 2009. On September 5, 2007, JLT Resources, LLC was formed with Jefferson Land Trust as its only member. JILT Resources, LLC was formed for the purpose of purchasing and holding land for conservation purposes. Summary of Significant Accounting Policies: Principles of Consolidation - These financial statements consolidate the statements of Jefferson Land Trust and JLT Resources, LLC (collectively, "JLT"). Inter- organization balances and transactions have been eliminated in consolidation. Basis of Accounting - The financial statements of JLT have been prepared on the accrual basis of accounting. Basis of Presentation - Net assets and revenues, expenses, gains and losses are classified based on the existence or absence of donor - imposed restrictions. Accordingly, the net assets of JLT and changes therein are classified and reported as follows: Unrestricted Net Assets - Include all net assets on which there are no donor - imposed restrictions for use, or on which donor - imposed restrictions were temporary and have expired. Temporarily Restricted Net Assets - Include all net assets subject to donor - imposed restrictions that will be met either by actions of JLT or the passage of time. Permanently Restricted Net Assets - Include all net assets received by donations wherein the donors impose a permanent restriction on the use of the gift. The donors require the gift to be invested and only the income from such investments may be used to support the intended cause. JLT had no permanently restricted net assets as of December 31, 2008. All donor - restricted support is reported as increases in temporarily or permanently restricted net assets, depending on the nature of the restriction. When restrictions expire (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restriction. Gifts of equipment are reported as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long -lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long -lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long -lived assets must be maintained, expirations of donor restrictions are reported when the donated or acquired long -lived assets are placed in service. -5- JEFFERSON LAND TRUST AND SUBSIDIARY Notes to Consolidated Financial Statements Note I - Continued Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. Actual results could differ from those estimates. 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 equivalents. Concentrations - JLT maintains its cash in bank deposit accounts with one financial institution. JLT's cash balances may, at times, exceed federally insured limits. One donor's pledge represented approximately 43% of pledges receivable at December 31, 2008. Investments - Investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the statement of financial position. The carrying amount of the investment held in trust is determined by the trustee holding the securities. Unrealized gains and losses are included in the change in net assets. JLT has established a designated fund at Jefferson County Community Foundation. As JLT has designated itself as the beneficiary of the fund, the fund balance and activity are reported in the financial statements of JLT as required by generally accepted accounting principles. 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. Changes in the valuation have not been material to the financial statements. 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. Furniture and Equipment - 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 expenses 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. M JEFFERSON LAND TRUSTAND SUBSIDIARY Notes to Consolidated Financial Statements Note I - Continued Land and Easements - 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 statement of financial position at $1 each for tracking and accounting purposes. Easements valued at $1,198,820 were donated to JLT during the year ended December 31, 2008. Accordingly, $1,198,820 of contribution revenue and $1,198,815 of related write down expense have been reported on the statement of activities for the year ended December 31, 2008. 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 the organizations are deductible as allowed under Section 170(b)(1)(A)(vi) of the Code. Functional Allocation of Expenses - The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Note 2 - Fair [value Measurements In September 2006, the Financial Accounting Standards Board ( "FASB ") issued FASB Statement ( "SFAS ") No. 157, Fair Vatue Measurements. SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements, SFAS 157 uses a fair value hierarchy that prioritizes the inputs to valuation approaches into three broad levels. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). -7- JEFFERSON LAND TR UST AND SUBSIDIARY Notes to Consolidated Financial Statements Note 1- Continued Valuation Techniques - Financial assets and liabilities valued using Level 1 inputs are based on unadjusted quoted market prices within active markets. Financial assets and liabilities valued using Level 2 inputs are based primarily on quoted prices for similar assets or liabilities in active or inactive markets. Financial assets and liabilities using Level 3 inputs were primarily valued using managements assumptions about the assumptions market participants would utilize in pricing the asset or liability. Valuation techniques utilized to determine fair value are consistently applied. Fair Values Measured on a Recurring Basis - Fair values of investments measured on a recurring basis at December 31, 2008 were as follows: Certificates of deposit Funds held at Jefferson County Community Foundation Fair Value Measurements at December 31, 2008 Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level l) (Level 2) (Level 32 Total - $ 91,449 $ - $ 91,449 148.896 148.896 A reconciliation of the beginning and ending balances for fair value measurements made using significant unobservable inputs (Level 3) follows: Beginning balance at January 1, 2008 $ 221,686 Total losses (realized /unrealized) (67,545) Withdrawals (5.245) Ending Balance at December 31, 2008 S 148.898 Investment return for the year ended December 31, 2008 consisted of the following: Interest income Realizedlunrealized loss $ 17,188 (71.294) I'm JEFFERSON LAND TRUSTAND SUBSIDLIRY Notes to Consolidated Financial Statements Note 3 - Pledges Receivable At December 31, 2008, JLT had $468,328 in pledges receivable, which are to be received over a period of five years. Expected future receipts for the next five years are as follows: Years Ending December 31, 2009 $ 143,307 2010 131,916 2011 104,840 2012 82,765 2013 5.500 E 468.328 A present value discount on pledges receivable has been determined to not be material to the financial statements. No allowance for doubtful accounts was deemed necessary by management for the promises to give based on historic experience. Note 4 - Land, Conservation Easements, and Purchase Options Land, conservation easements, and purchase options at December 31, 2008 are summarized as follows: Land: Red Dog Farm Quimper Wildlife Corridor Bulis Chimacum Creek Kilham Corner Conservation easements Land purchase option $ 333,760 243,804 125,240 139,094 38,930 35 30.000 M JEFFERSON LAND TRUSTAND SUBSIDLARY Notes to Consolidated Financial Statements Note S - Long -term Debt On December 18, 2007, JLT entered into a loan agreement with a commercial lender in the amount of $226,110. The loan bears interest at 8.5 %, and is due in 60 monthly payments of principal and interest totaling $1,965, and a final principal payment of $202,753 on January 10, 2013. The loan is secured by the Red Dog Farm property and an Assignment of Rents from the lease described in Note 6. Principal payments on the loan are as follows: Years Ending December 31, 2009 2010 2011 2012 2013 Note 6 - Lease Agreements $ 4,451 4,845 5,273 5,739 202.753 JLT has entered into an operating lease as lessee for its administrative office in Port Townsend, Washington. The lease expires in June 2010. Rent expense totaled $17,627 for the year ended December 31, 2008. Minimum lease payments for 2009 and 2010 are $16,950 and $8,475, respectively. On December 20, 2007, AT Resources, LLC entered into a lease agreement as lessor for the Red Dog Farm property. The lease term is five years, and monthly lease payments are $1,965. The lease requires the lessee to pay all taxes and assessments relating to the property. The lease also requires the lessee to comply with a land use plan, and provides a purchase option to the lessee during the lease term. Sublease rentals to be received are as follows: Years Ending December 31, 2009 $ 23,580 2010 23,580 2011 23,580 2012 23.580 S 94.320 -10- JEFFERSON LAND TR UST AND SUBSIDIARY Notes to Consolidated Financial Statements Note 7- Unrestricted Net Assets Unrestricted net assets consisted of the following at December 31, 2008: Designated - Red Dog Farm land $ 333,760 Designated - Quimper Wildlife Corridor land 243,804 Designated - Bulls 125,240 Designated - Chimacum Creek 139,094 Conservation easements 35 Total designated 841,933 Undesignated 270.369 Note 8 - Temporarily Restricted Net Assets Temporarily restricted net assets consisted of the following at December 31, 2008: Purpose restriction To purchase Glendale Farm easement $ 300,000 To purchase Gateway land 100,000 For stewardship of Bulis property 90.514 490,514 Time restriction: Outstanding pledges 468.328 S 958.842 Note 9 - Adjustments to Beginning Net Assets During the year ended December 31, 2007, JLT entered into an agreement with the Jefferson County Community Foundation (JCCF), whereby the Jefferson Land Trust Stewardship Fund (the Fund) was established. JLT transferred a total of $215,260 to the Fund. Per the terms of a Memorandum of Understanding, distributions from the Fund will be made for stewardship and legal defense of easements held by JLT. This transaction had been recognized as an expense in a prior year. It was determined during the year ended December 31, 2008 that, under the terms of the fund agreement, JLT maintains control over the fund assets and any distributions of earnings from the Fund. Therefore, an adjustment was recorded to reverse the expense and record the value of the fund and related investment earnings at December 31, 2007. As a result, beginning net assets were increased by $221,686. During the year ended December 31, 2008, JLT determined that temporarily restricted funds held by JLT from previous year donations had originally been recorded as unrestricted. The temporary restriction has been recorded as of December 31, 2007. As a result, beginning temporarily restricted net assets were increased by $395,347, and beginning unrestricted net assets were decreased by $395,347. -H- JEFFERSON LAND TR UST AND SUBSIDIARY Notes to Consolidated Financial Statements Note 9 - Continued During the year ended December 31, 2008, JLT determined that unrestricted funds held by JLT from a previous year donation had originally been recorded as temporarily restricted. The temporary restriction has been reversed as of December 31, 2()07. As a result, beginning unrestricted net assets were increased by $37,084, and beginning temporarily restricted net assets were decreased by $37,084. During the year ended December 31, 2008, JLT determined that a portion of land held had been transferred to an outside party in a prior year, but had not been reflected as such in the accounting records. The land has been removed from the records as of December 31, 2007. As a result, beginning unrestricted net assets were decreased by $7,500. During the year ended December 31, 2008, JLT determined that a portion of land had been acquired in a previous year, but had not been reflected as such in the accounting records. The land has been included in the records as of December 31, 2007. As a result, beginning unrestricted net assets were increased by $9,650. The following table sets forth the effects of these adjustments at December 31, 2007: As Previously Reported Adfustments AsAdiusted Consolidated Statement of Financial Position: Unrestricted net assets $ 1,135,867 $ (134,426) $ 1,001,441 Temporarily restricted net assets 37.084 358.263 395.347 Total Net Assets S 1.172.951 Note 10 - Subsequent Events In the months following year end, JLT, along with the markets in general, has experienced significant fluctuations in its investment balances. JLT is aware there are significant pressures in the current global financial markets. JLT is vigilantly monitoring the developments in the markets and believes that it is positioned to deal with these developments should the unfavorable market conditions persist. Policy dictates maintaining the asset allocation through all markets rather than attempting market timing. -12- JEFFERSON LAND TRUST AND SUBSIDIARY Consolidated Statement of Functional Expenses For the Year Ended December 31, 2008 Land and stewardship expenses 130,717 General and 136 130,853 Fair value of easement donations written down Program Administrative Fundraising Total Salaries $ 149,260 $ 61,217 $ 31,536 $ 242,013 Payroll taxes 15,121 6,097 3,170 24,388 Employee benefits 22,253 8,973 4,666 35,892 Total salaries and benefits expense 186,634 76,287 39,372 302,293 Land and stewardship expenses 130,717 136 130,853 Fair value of easement donations written down 1,198,815 1,198,815 Donation to Nordland Garden Club 6,284 6,284 Professional fees 28,045 28,045 Public awareness 12,395 12,395 Rent 10,871 4,459 811 16,141 Postage and printing 11,708 584 2,267 14,559 Travel and seminars 7,937 2,081 1,067 11,085 Office supplies 6,406 1,973 867 9,246 Insurance 2,443 2,465 4,908 Web design and maintenance 867 867 1,734 Telephone 2,181 894 461 3,536 Utilities 1,275 523 269 2,067 Dues and subscriptions 1,561 1,561 3,122 Depreciation 1,061 435 224 1,720 Bank fees 453 453 Interest 18,566 18,566 Other expenses 5,169 1,522 6,691 Total Expenses $ 1,604,890 $ 121,282 $ 46,341 $ 1,772,513 See accountants'report. -13- AdM OA • C • E PS, Inc. Misr Appraisal • Consulting • Environmental Screening April 20, 2009 Ms. Karen Waltenburg, Property & Acquisition Specialist Washington State Parks and Recreation Commission P.O. Box 42650. Olympia, Washington 98504 -2650 RE: HEIDGERKEN 63 ACRES- Anderson Lake Road, Jefferson County, WA TAX PARCEL NO. 901102004 & 901102006 Dear Ms. Waltenburg: At your request, on behalf of the Commission, I have completed an analysis of the above property and have arrived at an estimate of its value. The purpose of this valuation is to establish the "Fair Market Value" of the subject property, the definition of which is defined within the body of this report. Property Overview The subject of this report is an acreage parcel which is a total of 62.38 acres in size, made up of two tax parcels which are adjacent to each other. The acreage size is based upon the Mason County records, and presumed to be correct. The majority of the site is contained within Tax Parcel 901102004, which is approximately 59 acres in size. The balance of the parcel is contained within Tax Parcel 901102006. The smaller parcel is part of a recorded Jefferson County shortplat and is therefore, a legally segregated parcel which could be marketed separate from the larger parcel. The parcel has a very diverse topography which includes moderate slopes on the Easterly portion, Southerly Portion and Westerly Portion, with a significant level area near the center of the property and very steep rocky cliffs in the Northwesterly portion. Within this area of rock faces and peaks is a site of archeological and historical significance to the local Indian Tribe. It is known as "Tamanous Rock ". The parcel is accessed by a private gravel easement road which feeds off of Anderson Lake Road. This private easement road was presumably constructed at the time of initial logging of the parcel. The roadway is well constructed and also includes storm drainage consisting of catch basins, culverts and ditches with velocity control measures in place to control erosion. It does not appear that utilities have been installed to the property. The parcel is mostly cleared but has areas of fairly heavy tree cover in the vicinity of steep areas and wetlands. There are no building improvements or other significant structures on the property. Scope of Appraisal Assignment The value which is set forth is based on site inspection and analysis of pertinent data. The property was appraised using the recognized approaches to value as they were applicable. This being an unimproved property which is non- income producing, the Sales Comparison Approach was the only approach used. The value of the existing merchantable timber and reforestation, was determined from examination of sales, with and without timber value and supported by a timber cruise completed by Forestech, LLC. The analysis and conclusions are presented in a Summary Report Format, which is intended to meet or exceed the requirements of USPAP Section 2 -213. Conclusions The analysis of the large acreage sales indicate a range from $ 9,400 to $10,700 per acre after necessary adjustments were made. Sales were spread evenly across the range. This per acre rate includes timber value. The calculation of the final value estimate is outlined on Page 5. The analysis of acreage sales which did not include timber value were not as extensive as for those with timber. The range is from $ 7000 to $ 7,600 per acre. The value of the timber as contained within the Forestech LLC, 3/2009 timber cruise (attached in Appraisal Addenda), is $ 72,500 (r). The final reconciled value is a blending of the conclusions reached from each of the two methods. The estimated fair market value of the Fee Simple interest in the subject property, including timber value, as of the date of valuation was: SIX HUNDRED THOUSAND DOLLARS $ 600,000 Of course, the above estimate is subject to any Limiting Conditions or Assumptions made by the appraiser and disclosed herein. Statement of Accompaniment A letter /response form was sent to the property owner, offering him a chance to accompany the appraiser during his site visit on February 12, 2009. The property owner returned the form indicating that he wanted to accompany the appraiser. On the day of site visit, the owner did not show up. I telephoned his office and was informed that he was called out of town and indicated to his secretary to tell me to go ahead and look at the property without him. The appraiser was accompanied by representatives from Parks and Recreation and a representative from Forestech, LLC. Respectfully submitted, Rick D. Wells, IFAS WA. State Certified General Appraiser #1100344 SUMMARY OF SALIENT FACTS AND CONCLUSIONS IDENTIFIED CLIENT AND AUTHORIZED USERS The authorized client named i this report is Washington State Parks and Recreation Commission, The Client entered into a contract for appraisal and appraisal related services on 03/11/2009. Under the terms on the contract, A.C.E. PS, Inc. is responsible for retaining a qualified forester to evaluate the standing merchantable timber on the subject property. IDENTIFICATION OF SUBJECT PROPERTIES/PROJECT REFERENCE The subject is identified by it's Tax Parcel Numbers 901 102 004 & 901 102 006 The subject property is located on the North side of Anderson Lake Road, bordering the Anderson Lake State Park, approximately 3/4 mile West of Rhody Drive and 1/4 mile East of the Anderson Lake State Park entrance, in Jefferson County, Washington. COMPETENCY /INVOLVEMENT STATEMENT Based on experience and training, this appraiser feels competent to complete this appraisal assignment. The reader is referred to the Appraiser's Qualifications included in the Addenda to this report. Regarding involvement in the completion of this appraisal, no one other than Rick D. Wells, the appraiser signing this report, provided a significant contribution to the analysis and/or valuation conclusions. Michael J. Friedel, a staff appraiser with A.C.E. PS, Inc. assisted in verification of comparable sale information and terms. DATE OF APPRAISAL/DATE OF REPORT The subject property was visited on February 12, 2009. The majority of the parcel was walked and those areas which were not readily accessible were inspected from adjacent properties or aerial photographs. Photographs were taken during the inspection. The date of inspection is considered the effective date of valuation. The date of the report is April 20, 2009, the date which the client was advised of the conclusions of the analysis. STATEMENT OF OWNERSHIP According to the Preliminary Title Report No. 73351, produced by First American Title, the title to the subject properties is vested as follows: George F. Heidgerken and Jacalyn R. Heidgerken, husband and wife 420 East 18`h Street Tacoma, WA 98421 SALES HISTORY According to the Jefferson County Records, the subject property was purchased by the current ownership on 041011993. The seller was Mary E. Theriault, as her separate estate. The purchase price for the property was $ 240,000. No sales or transfers of the subject property have occurred since purchase. (This cursory analysis ofsales history is intended to satisfy appraisal reporting guidelines only, which are concerned mainly with price levels paid for the property within recent years, and is not intended to detail all deviations in ownership interest which may have occurred over this time period The appraiser does not guarantee either content or accuracy. It is recommended that the reader consult a proper title report prepared by a qualified individual.) PROPERTY RIGHTS APPRAISED Fee Simple HIGHEST AND BEST USE The Highest and best use as vacant is as residential large acreage building sites in a configuration which satisfies the requirements of the present zoning and provides the greatest monetary return to the property owner. ZONING RR -20 - Rural Residential 1 Dwelling Unit per 20 Acres. STREETS AND UTILITIES The property fronts a Jefferson County maintained two lane asphalt roadway. The interior of the property is accessed by gravel logging road easement which enters the property from the South, near the center and traverses Northerly, then turns and runs in a Southwesterly direction, then turns and runs in a Northwesterly direction to it's terminus. There are no utilities on the property. BUILDING SIZE AND BREAKDOWN Unimproved raw land, no building improvements. SPECIAL CONDITIONS /ASSUMPTIONS This appraisal assignment requires that the appraiser render a j udgement as the approximate location of the property boundaries, the size of the property and overall utility of the property. There are ecologically sensitive areas within the property, the exact boundaries of which have not been defined. Additionally, there is a site of archeological and historical significance also located on the property. The judgement of overall site utility and useable area, is based upon available information from site inspection, topographic maps, and aerial photos, together with information gathered from phone conversations with regulatory agencies and tribal representatives. The estimate is felt to represent a reasonable expectation for property use, however, an extraordinary assumption must be made as to the accuracy of the estimate in the absence of study data. If necessary studies are completed which reveal that the appraiser's estimate is incorrect, the appraiser reserves the right to amend his findings and conclusions accordingly. UNAVAILABILITY OF INFORMATION ` All pertinent information available at the time that this report was completed was considered in the analysis. To the knowledge of this appraiser, no information that would have a material impact on the value of the subject land was withheld. SUMMARY OF VALUE CONCLUSIONS Utilizing the conclusions produced by the analysis of market data, the following value estimates are produced: Valuation with Timber Included 62.38 Acres @ $ 10,000 per acre = $ 623,800 Rounded to $ 624,000 Valuation without Timber Value Included 62.38 Acres @ $ 7,500 per acres _ $ 467,850 Rounded to $ 468,000 Add timber value from Forestech Cruise $ 72,500 (r) Total Value Including Timber $ 540,500 The estimated value of the subject property, including the value of existing timber, as of the effective date of value, February 12, 2009, was: $ 600,000 TABLE OF CONTENTS Letter of Transmittal 1 -2 Summation of Salient Facts and Conclusions 3 -5 Table of Contents 6 DESCRIPTION OF SUBJECT PROPERTY AND APPRAISAL PROBLEM 41 PURPOSE AND FUNCTION OF THE APPRAISAL 8 DEFINITION OF TERMS 43 -62 SCOPE OF THE APPRAISAL 9.10 PROJECT VICINITY MAP 1I LEGAL DESCRIPTION 12 SURVEYS 12 AREA DATA 12 SUBJECT PLOT MAP 13 TOPOGRAPHIC MAP 14 AERIAL VIEW OF SUBJECT 15 AERIAL VIEW WITH PHOTO LOCATION MARKERS 16 SUBJECT PHOTOGRAPHS 17 -33 DESCRIPTION OF SUBJECT PARCEL 34 -35 MAP SHOWING ARCHEOLOGICAL SITE LOCATION 36 DISCUSSION OF SUBJECT'S USEABLE AREA 37 HIGHEST AND BEST USE DISCUSSION 38 VALUATION SITE VALUATION METHODOLOGY 40. DISCUSSION OF COMPARABLE ADJUSTMENT GRID 40 SUMMARY OF CONCLUSIONS 41 CONCLUSION OF VALUE 41 COMPARABLE SALES ADJUSTMENT GRID 42 COMPARABLE SALES PROFILES 43 -62 CERTIFICATE OF APPRAISAL 63 ASSUMPTIONS & LIMITING CONDITIONS 64 -65 ADDENDA Full Legal Description 67 Adjacent Property Survey 68 Copy of Title Vesting Deed 69 Appraiser's offer of Accompaniment 70 Appraisal Contract for services 71 Forestiech LLC Timber Cruise 72 -75 Qualifications of appraiser 76 -78 DESCRIPTION OF SUBJECT AND APPRAISAL PROBLEM PURPOSE AND FUNCTION OF APPRAISALIRIGHTS APPRAISED The purpose of this appraisal is to estimate the Market Value of the fee simple interest of the Subject Property, as defined below. The function of this appraisal is for use in land purchase negotiations. DEFINITION OF TERMS As -Is Value is the "value of specific ownership rights to an identified parcel of real estate as of the Effective date of the appraisal; relates to what physically exists and is legally permissible and excludes all assumptions concerning hypothetical market conditions or possible re- zoning." Fee Simple Estate is "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental power of taxation, eminent domain, police power, and escheat." 1) Market Value means "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and both acting in what they consider their own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangement comparable thereto; (5) and the price represents a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." 2) Market Value The Supreme Court has defined market value for Federal Condemnation cases as; "the amount in cash, or other terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal." United States v. Reynolds, 397. US. 14,16 (1970) _ Conclusion The Definition of Market Value applicable to this appraisal is felt to be Definition (1), as it best applies to this transaction which is not a condemnation, but rather is an appraisal which is connected to an anticipated offer to purchase a property which is currently for sale on the open market. 19 SCOPE OF THE APPRAISAL The appraisal process applied involves the on -site inspection of the subject property; an analysis of the pertinent factors regarding regional and local economic conditions; an analysis of pertinent data concerning the property's utility and useable area, including an analysis and judgement as to the extent of wetland areas, and an investigation and determination as to the likely affects of the presence of an archeological and historically significant landmark on the property; an analysis of the Highest and Best Use of the land; and a comparison of the property with similar properties in the area based on the applicable units of comparison. The results of the analysis were then reconciled, and a final conclusion of value was drawn. Sources of Data Relating to the Subject Property The on -site inspection of the subject property was conducted on February 12, 2009. The tour included several portions of the site as required to get an understanding of the general topography and utility the parcel. Additional details concerning the properties, including the wetlands, steep slopes and archeological site, were obtained from the Jefferson County Assessor's Office and the Client's representatives. Typical Valuation Process The valuation process typically employs three methods of analysis which include the Cost, Sale Comparison, and income Approaches. The Cost Approach is the process of estimating the Reproduction Cost New of the subject improvements, and deducting from the new cost the estimated total loss in value from all causes to arrive at the depreciated value. The land value, as estimated from analysis of comparable land sales, is added to the depreciated value of the improvements to indicate the value of the whole property. The Sale Comparison Approach is the procedure in appraisal analysis which produces an estimate of value for a property by comparing it with similar properties which have sold recently or are currently offered for sale in the same or competing areas. The Income Approach is the appraisal procedure of converting anticipated benefits, income or amenities, to be derived from the ownership of property into a value estimate. The value indications estimated by the applicable approaches to value are finally reconciled into a single indicated value buy weighing each approach based upon the amount, type and quality of data that is available. Valuation Process Utilized in the 'As Is "Value Estimate The subject property was evaluated in its as is condition. The "as is" value, is the only value which is being sought. The Sales Comparison Approach is the only method used. M Sources of Data Utilized for Comparison Purposes In compiling data for the analysis, considerable research was conducted for comparable land and improved sales data, and general market conditions as they relate to undeveloped areas of Jefferson and Mason County. Sources of sales data included The Jefferson and Mason County Assessors Office; REALIST for Jefferson and Mason County, a computer database which provides data on all properties located in Jefferson and Mason County; and Computer Multiple Listing Service records for Jefferson and Mason County; as well as in -house data and conversations with real estate agents and appraisers. The sales were viewed and analyzed in comparison with the subject, and attempts were made to contact at least one of the principals or professionals involved in the transaction. bP PROJECT VICINITY MAP c � { ReCiPobt.. y - —/ A Y FS[Xd i niam- CAP* 20 7.1 #4 4' fPr. �10 as'r fdfY.Y `�3+1yro'yhdYh Rd (� t It a /uasizhD Jaif "w' Sq F ffi�s , it } ji IO 4 2P Fan maooe rtnaaaawev ®� r�uiEa SUBJECT PROPERTY DATA LEGAL DESCRIPTION The subject property is located near the center of Section 10, Township 29 North, Range 1 West and takes in portions of the SW1/4 of the NE 1/4, the SEI /4 of the NW114, the NWl /4 of the SE1 /4 and the NE 1/4 of the S W 1/4 of said Section. The full legal description can be found on Page 40 of the Appraisal Addenda. SURVEYS A cursory search of the Jefferson County records produced one recorded boundary surveys for adjacent property which shares the Easterly property boundary with the subject property. The survey is recorded under Auditor File Number 375200. A copy of the survey can be found on Page 41 of the Appraisal Addenda. AREA DATA The general market area is known as `Port Townsend" which includes areas of Jefferson County which may or may not actually lie within the Port Townsend City Limits, including, Cape George, Chimicum and Discovery Bay. All of these contain residential areas which feature large residential building sites, some with marine and /or mountain view amenity. Only those located in Port Townsend have public sewer. The Northwestern portions of the City of Port Townsend and the areas West of Port Hadlock and Chimicum are slow to develop. The subject neighborhood is convenient to public services and emplyment centers which are located in Port Townsend, Port Angeles and on the Kitsap Peninsula, all within 1 hour commute time. The subject site is located 3/4 mile West of Chimicum, a small unincorporated community located just South of Port Townsend. The surrounding neighborhood is a mixture of residential consisting of several price ranges and lot sizes. The parcel is less than ' /z mile East of the Anderson Lake State Park entrance. �a_n SUBJECT PROPERTY PLOT MAP 915LKKx_X; =` 9fSS7S:+?Cy}2 9T50!KyY13 ❑ry;?Y{}•,;. 9.0 'D, 02t'- 4f1 g15:3wwl at!K(%}�.14Y? 961044061 wV Ff1'81yf A kp LAKE f}t7t ^.OA�F}2, '90` ^. tFZCK41 9D ° ;0 Q, 90109-0061 't0+4G2' .. 90<`030'3 W1030'2 - 901094601 901 t43:f04 i §f711b541` 90l 102Wi a9 103004 9+3tto3oc,5 t,}flrystW32 901'04032 901!4!W$ 9VICAC33 _.. 904',OIW4 9ii5 •.Q3wa 9C.,,'C.K c,,t lriiiti4 . 90t 5OM2 9.11 °flge�^ 4C., 52W2 ,t,•516ir7Rpy 90415i'{?61 y:..`'•CKt•. 901•:5'rlb 00`'Wo"i s}C.+.15cY r}5 90'..151ty? ^. IS17J TOPOGRAPHICAL MAP OF SUBJECT PROPERTY Aiyc m 1F 4A Al 0 IL 114 1 j X 0 PHOTOGRAPHS OF SUBJECT PROPERTY HM A. I 3) Looking Slightly NE from Easement at Edge of Bank Mlll,z4- -�� 6) Typical view of Interior of Parcel Near Center C_r1e1 -e 9) View of Wetland Area Looking South from Easement Road 10) Looking NW at Rock From Easement Road Near Base of Trail 11 _0:_ 1 . i. .� itS2 b r f, F g /yN ggi NR, 12) Looking at Base of the Rock 13) Looking Along Base of Wall From Point West of Rock WE 14) Looking SE at Face of Rock ..® 15) Looking South Along Easement Road Following Rock Face IbIQ 16) Looking North Along Rock Face Toward the Rock Tt 18) Looking SE Down -Slope From Easement Culvert in View MM 19) Looking NW From Old Landing Near End of Easement Road (Tall Trees are Park Boundary) WE 20) Looking NE From Landing at End of Ridge M 22) View Outlook From Same Point Looking SE at Cascades and Chimicum Valley 23) Looking South From Interior of Parcel at Approx. Center w 24) Looking East at Edge of Bank IN NE Corner of Parcel 16EE 25) Looking North Along Easement Road Near Northerly Boundary 26) View of Small Pond in Wetland Area Near Northerly Boundary 27) Looking NE at Northerly Portion of Smaller Parcel From Old Road Bed 28) Looking Southeasterly Along Old Road Bed Toward Anderson Lake Road 29) Looking North From Anderson Lake Road at Gated Road into Small Parcel 30) Looking East at Wetlands From Easement Road on Smaller Parcel f� 32) Looking Eastbound on Anderson Lake County Road 33) Looking Westbound on Anderson Lake County Road (For Sale Sign at Easement) [a� 34) Looking SE From Subject at Old Anderson Lake Road DESCRIPTION OF SUBJECT PROPERTY Total Parcel The subject of this report is an acreage parcel which is a total of 62.38 acres in size, made up of two tax parcels which are adjacent to each other. The acreage size is based upon the Jefferson County records, and presumed to be correct. The majority of the site is contained within Tax Parcel 901102004, which is approximately 59 acres in size. The balance of the parcel is contained within Tax Parcel 901102006. The smaller parcel is part of a recorded Jefferson County short plat and is therefore, a legally segregated parcel which could be marketed separate from the larger parcel. The property has a very diverse topography which includes moderate slopes on the Easterly portion, Southerly Portion and Westerly Portion, with a significant level area near the center of the property and very steep rocky cliffs in the Northwesterly portion. Within this area of rock faces and peaks is a site of archeological and historical significance to the local Indian Tribe. It is known as "Tamanous Rock ". There are territorial views available from many areas of the property, with the most dramatic views available from the Easterly and Southeasterly portions of the site at the top of the slopes. There are several available building sites available within the boundaries of the property, primarily on the West side of the easement road at the Southerly end of the parcel. The primary building site area is located on the East side of the easement road beginning approximately 1/z into the parcel and continuing to the Northerly boundary . There are some very nice site areas in the Southwesterly portion of the parcel off of the end of the easement road, one being on the Westerly side of the rocky ridge and the other being just Southeast of the end of the easement road near the old log landing. There are some environmentally sensitive areas which are located just West of the center of the parcel, consisting of some small ponds and a seasonal stream. The parcel is accessed by a private gravel easement road which feeds off of Anderson Lake Road. This private easement road was presumably constructed at the time of initial logging of the parcel. The roadway is well constructed and also includes storm drainage consisting of catch basins, culverts and ditches with velocity control measures in place to control erosion. A portion of the roadbed in the vicinity of the rock faced ridge, was blasted out of the hillside and is on solid rock. It does not appear that utilities have been installed to the . property. The parcel is mostly cleared but has areas of fairly heavy tree cover in the vicinity of steep areas and wetlands. The heaviest tree cover with the most mature trees, is along the Westerly side of the parcel in the vicinity of the rocky cliff areas and Historic Site. The balance of tree cover is small 10 -15 year old trees scattered throughout the parcel. Some larger deciduous varieties are present and they too are scattered throughout the parcel, primarily at the fringes and on the steep slopes. Some replanting has been done, however most tree growth since the parcel was logged, has been naturally occurring. The smaller parcel which adjoins the larger parcel on the East at Anderson Lake Road, is made up primarily of wetlands consisting of a large boggy area which runs along Anderson lake Road. It appears that all drainage from Anderson Lake Road and from the subject's larger parcel, is channeled into this wetland. There are fringe areas of this parcel which are not part of the wetland, however, no building site area could be identified. The parcel is served by it's own gravel easement road which runs along the ridge above the wetland and is gated at Anderson Lake Road. There is minimal tree growth on this parcel wi the exception of fringe areas. MAP SHOWING STATE LISTED ARCHAEOLOGICALMISTORICAL SITE Anderson Lake State Park N 'AE 380 ,ii4 0 160 720 1.486 own%— Wan 4 3e65 M2 R I W WACW A*w PP.cm Lao �rdwcuynl Se.e P<artee o, L w Part IIae 1*c wspgc Sae 1.15 NO Legend ��' Apmi.r R!Aa QI`JS 2l..MwbY Figure t. Anderson lake State Park Prgwrty Acquisition. Me DISCUSSION OF SUBJECT'S USEABLE AREA As previously discussed, the subject property has a very diverse topography featuring a wide range of characteristics, including, steep slopes, rocky ridges and wetland areas. Scattered between these unique features, is a significant amount of level to gently sloping terrain, some of which features a very desirable territorial view outlook. Despite the site characteristics which hamper development, there is ample useable area to provide multiple building sites within the boundaries of the property. Likely each of the building site areas would include either a portion of the ecologically sensitive wetland areas, or a portion of the steep slopes, rocky cliffs or archaeologically significant areas within its boundaries. It appears, based upon the topographical map and aerial photographs, that the areas of lower utility make up approximately 1/3 of the total parcel area. The roadway is well placed and gives access to most of the useable area within the parcel The Tamanous Rock protected archeological site is located in the NW comer of the subject property. The site carries with it, buffer requirements for development. Even though logging of this area is allowed, it is likely that it would delay permitting and would also likely result in injunctive measures being instituted by the Jamestown- S'klallam Tribe. Development of this area is not required, as there are ample potential building site areas located elsewhere on the property. It is for this reason that for the purposes of this analysis, no additional adjustment is made due to the existence of this site. =m. HM HIGHEST AND BEST USE Definition: As is the case in prudent appraisal practice, the concept of highest and best use is the premise upon which value is based. In the context of fair market value, highest and best use is defined as "the reasonable and probable use which will support the highest present value, as defined, as of the effective date of the appraisal. Alternatively, it is that use from among the reasonable, probable and legal alternative uses found to be physically feasible and which results in the highest land value. In the case of an improved property, it is that use which after meeting certain tests, i.e. Physical use, Legal Use, Feasible Use, Most Probable Use and Highest and Best Use which may be any of the atformentioned uses but it is that use which will result in the highest net return to the land over the longest period of time. Analysis: As Residential The subject site is zoned for residential use, but has never been developed or utilized for that purpose. There is sufficient demand for large residential building sites between 20 acres and 40 acres in size. There are several areas on the subject property which may be potential building sites. The balance of the property functions as contributing property and provides privacy or recreation. The subject is not developed and has no infrastructure in place, except for the existing access easement and associated storm water control measures. The cost of providing power and water to the subject property, to serve so few sites, would not expensive, but would seem to be financially feasible based upon the number of large acreage site based upon the number which have been created and marketed within the past five years in this market area. Residential use is physically possible and appears financially feasible as there is a market for large acreage parcels. As Timberland The subject is bounded on the West by State Park Land which is heavily forested. The tribal lands to the North are similar to the subject property in tree cover. Most properties to the East and South are smaller parcels, many of which are developed with a single family residences. The subject property does not have a heavy tree cover, as it was logged 10 -15 years ago based upon regenerated trees on site. If properly reforested, the land could support a significant timber crop. Conclusion The highest and best use of the subject property is considered to be as large residential building sites because of the development patterns of the market area and value as residential vs partially reforested timberland. The small parcel is mostly wetlands. It's value as a residential building site is speculative. It's highest and best use is felt to be plottage, contributing to develop - ability of the larger parcel. Fll-'-) SALES COMPARISON APPROACH METHODOLOGY The method employed to determine the value of the subject parcels is the Sales Comparison Approach. In this method, a thorough search is made to locate sales of properties which are as characteristically similar to the subject as possible. These sales are then compared to the subject and adjustments are made to the sale for any characteristic, i.e, topography, size, location, available utilities, access, etc. To support the timber value, the analysis includes both comparables with timber value and those without. Additional support for the timber value is provided by the timber cruise conducted by Forestech, LLC. DISCUSSION OF COMPARABLE ADJUSTMENT GRID (Following Page) The adjustment grid on the following page, summarizes the necessary adjustments made to the comparables for the perceived characteristic differences between the properties and the subject. The grid contains comparable sales/listings of properties with approximately the same amount of timber value as well as comparable properties with little or no timber value. Only Comparable No. 2 required no adjustments. The balance of the comparables used in the analysis, required from 10% to 45% Net adjustment. The most significant of the required adjustments was for differences in zoning and for differences in view amenity. The sales generally showed similarity in location, topography, access and available utilities. The comparables were all examined using the value per acre unit of comparison. The range of value per acre for the comparables which included timber value, indicates from $ 9,400 per acre to $ 10,700 per acre. The indicated range of value for the comparables which included little or no timber value, is from $ 7,000 per acre to $ 7,600 per acre. As added support, The timber value of Comparable No. 8 was confirmed by a timber cruise which was completed prior to sale. This appraiser was a review appraiser on the transaction and received a copy of the timber cruse which indicated that there was $ 140,000 in timber or approximately $ 1,900 per acre. If the timber value is removed from the sale which indicated $ 10,000 per acre after adjustments, the land value without timber is $ 8,100 per acre. One other comparable with no timber value was included in the report, however this sale also included a significant view amenity because of the lack of timber. Even after adjustment, this sale falls well outside of the range. The majority of comparable sales including timber value, tended to indicate a per acre value of approximately $ 10,000 per acre, which is felt to be well supported in the analysis. The comparable sales which included a minimal timber value or had no timber value, appear to support a value per acre of approximately $ 7,500 per acre. r=�"c SUMMARY Utilizing the conclusions produced by the analysis of market data, the following value estimates are produced: Valuation with Timber Included 62.38 Acres @ $ 10,000 per acre = $ 623,800 Rounded to $ 624,000 Valuation without Timber Value Included 62.38 Acres @ $ 7,500 per acres = $ 467,850 Rounded to $ 468,000 Add timber value from Forestech Cruise $ 72,500 (r) Total Value Including Timber $ 540,500 CONCLUSION There was three times as much market data for the large acreage parcels which included timber in the sale as for the ones which did not. That being the case, the value derived from these sales tends to be more reliable that the base rate per acre for acreage parcels with no timber value. That being said, the appraiser has chosen a reconciled value from the upper end of the overall range produced from each method. A value of $ 600,000, including timber value is felt to be supported. The estimated value of the subject property, including the value of existing timber, as of the effective date of value, February 12, 2009, was: $ 600,000 ,=� es F Q% �4 }} MCI 4/3 µ�yI� FW Q �Q V V Q O O O O O O O O O O O O O O O O O O O O O O O O O O m oc 1 Q Yf FA 69 6A 69 fA E9 fA fA Yr 69 69 69 O a o c c e c e o_ ov�i ov\i S O N O } } } } N } } e e e e e e e e e e F 0 0 0 0 0 0 0 0 0 0 } e e o o e e e e e NI N O } N } CJ } } O } p e e p e e e e e e E4 0 0 0 0 0 0 0 0 yy e e � FA 69 69 69 69 Ni K 69 yi 69 y N � L � co w o 0n Q M O M m Nil 7 m � v u Q r oo c w co a m r o a a 0 0 R 0 0 0 0 0 0 u o E E ) c v+ a o 3 3 W 0 y O O d N N A D U U N N t6 N C O o O O O o O O O O O O O N v O G 9 ?� O� x rn rn O. r r o0 00 0o ao m � a A F E 3 m �n d 0 Q N_ > 3 J F U Q U Q c O N N 0 0 F O U i 3 it COMPARABLE NO.1 MAP/ PHOTO 'S � �: f. :: _ Y t . a< .:c , � k � � � � 3 � ' $ r ..:y. S .. = yff w[g fk 4 t r� COMPARABLE NO. i Parcel Number: 801104008 Description: Lot C Larson Lake Rd, Chimacum Legal Dese (abbrev): Tax 26- Parcel C- Survey V19/P79-80 (full legal in appraiser's workfile) Proximity: Located approx 10 miles S of subject Size: 30.08 Acres Zoning: Commercial Forest (1:80) List Date: 12/6/2008 List Price: $225,000 Instrument Type/AFN #: n/a Grantor /Grantee: n/a Confirmation: Jeff Clancy, Keller Williams, 4/9/2009 Comments: Mostly rectangular with paved road frontage across entire west boundary. Tree cover is medium to heavy and topography is level to rolling. Power available on Larson Lake Rd. Analysis: $225,000 / 30.08 ac = $ 7,500 per acre (r) &3Fa COMPARABLE NO.2 MAPIPHOTO WE t HM COMPARABLE NO.2 Parcel Number: 901193001 Location: xxx Hwy 20, Chimacum Legal Desc (abbrev): LT 5 (S Hwy 9) Subj /Brdy Line Adj (Full legal in appraiser's workfile) Proximity: Located approx 5 miles SW of subject Size: 24.3 Acres Zoning: Rural Residential -20 (1:20) Sale Date: 5/15/2008 Sale Price: $250,000 Instrument Type /AFN #: WD 4534009 Grantor /Grantee: Pope Resources /Lucille M Brown Trust Confirmation: Brandon Bird, OPG/Pope Resources, 4/16/2009 Comments: Rectangular- shaped site with paved road frontage across entire north boundary. Tree cover is light to medium, mostly young re- generation growth and topography is sloped up from north to south with some gullies. Views of Discovery Bay to the north appear likely from the upper elevations near the south boundary line. Gated gravel driveway near SE corner off Hwy 20. Power available on Hwy 20. Analysis: $250,000 124.3 ac = $ 10,300 per acre (r) -- BX COMPARABLE NO.3 MAP/PHOTO MI L-1Q, t) COMPARABLE NO.3 Parcel Number: 901193002 Lot 2 Eaglemount Rd, Port Townsend Legal Desc (abbrev): S 19 T29 Rlw Gov Lot 6, Records of Jefferson County Located approx 5 miles SW of subject Size: 40.85 Acres Zoning: Commercial Forest (1:80) Sale Date: 11/2/2007 Sale Price: $365,000 Instrument Type /AFN #: WD 9528947 Grantor /Grantee: Lucille M Brown Trust/Pelletier (via Lspi Exchange Corp) Confirmation: Bill Perka, John L Scott, 4/14/2009 Comments: Rectangular site with developed gravel access off of Eaglemount Rd, a public paved road. Site is mostly cleared with light tree cover comprised mostly of young alder trees. Topography is mixed and rolling. Well -built road system throughout property connecting several possible building sites. Good views of Discovery Bay to the north from majority of site. Site needs a well and power is available on Eaglemount Rd, approx 1300' feet east. Analysis: $365,000 / 40.85 ac = $ 9,000 per acre (r) r- -d COMPARABLE NO.4 Parcel Number: 902232002 xxx Casselary Rd, Port Townsend Legal Desc (abbrev): S23 T29 R2w WI/2 Nw Nw Sw (less Se 7a sq.) (full legal in appraiser's workfile) Located approx 6 miles SW of subject Size: 120.4 Acres Zoning: Commercial Forest (1:80) Sale Date: 1/15/2008 Sale Price: $650,000 Instrument Type/AFN #: WD #530635 Grantor /Grantee: Green Crow Corp /Hassell (via Lspi Exchange Corp) Confirmation: Unlisted sale and unable to reach seller or out -of -state buyer. All sale and site information comes from Jefferson County records and appraiser's site visit on March 18, 2009. Comments: Rectangular site crossed by county and private roads that serve other neighboring properties. Tree cover is mixed. Over the south 25 %, mostly cleared with light tree cover. The remaining 75% has medium tree cover. The majority of the property is gently sloped up from south to north. Casserlary Road is paved and changes to gravel near the south boundary of the site. Power is available at Casserlary Rd. Analysis: $650,000 /120.4 ac = $ 5,400 per acre COMPARABLE NO.5 MAP/PHOTO y Y',i COMPARABLE NO.5 Parcel Number: 7020222001 3 Lords Lake Loop Rd, Quilcene Legal Desc (abbrev): Gov Lt 3 & 4 (Ly SW of Lords Lk Lp Rd) with ease to Gov Lt 3, Records of Jefferson County (full legal in appraiser's workfile) Located approx 15 miles S of subject Size: 41.12 Acres Zoning: Rural Forest (1:40) Sale Date: 3/17/2008 Sale Price: $370,000 Instrument Type/AFN #: WD #532165 Grantor /Grantee: Barber Family Assoc/Miller Confirmation: Terence McHugh, John L Scott, 4/1/2009 Comments: Site is irregularly shaped with land on both sides of the Little Quilcene River. The bulk of the property is on the west side of the river with approx 2000'of frontage on each side. Access to the east side of the property is via Lords Lake Loop Rd, a paved public road. Power is available on this road. This area of the property includes a gated and cleared building site at the property's SE corner. Access to the river from this building site is via a steep wooded ravine. Access to the west side of the property and the other side of the river is via a privately maintained gated gravel road. This side of the property offers more privacy but is less convenient to services. Tree cover is light to medium with the heaviest tree density surrounding the river. Analysis: $370,000 / 41.12 ac = $ 9,000 per acre =_HM �lk y. IP Alf COMPARABLE NO.6 Parcel Number: 70213303 xxx W Columbia St, Quilcene Legal Desc (abbrev): SW SW (Ls Tax 6,61,71, Ptn Tx 66) Ls Co Rd R/W, Records of Jefferson County (full legal in appraiser's workfile) Located approx 15 miles S of subject Size: 26.97 Acres Zoning: R5 (1:5) Sale Date: 3/25/2008 Sale Price: $237,000 Instrument Type /AFN #: WD #532446 Grantor /Grantee: Opg Properties Llc /Siemion Confirmation: Brandon Bird- OPG /Pope Resources, 411612009 Comments: Level with medium to heavy tree cover. From aerial photos, there appears to be a small to medium sized pond along the west property line. This mostly rectangular site is near the downtown core of Quilcene, a small town outside of the Olympic National Forest. Access to the site is via a short gravel road of Columbia St, a paved public road. Power is available on Columbia Street. Analysis. $237,000 / 26.97 ac = $ 8,800 per acre (r) i -�-�) COMPARABLE NO, 7 MAP/PHOTO I= t• ` . �, i x � ;.w �+ 1 +}„lt` H COMPARABLE NO. 7 Parcel Number: 801204006 9 -xxx Center Rd, Chimacum Legal Desc (abbrev): S20 T28 RI W, SW SE. Records of Jefferson County (full legal in appraiser's work file) Located approx 12 miles S of subject Size: 39.00 Acres Zoning: Rural Forest (1:40) List Date: 4/9/2008 List Price: $225,000 Instrument Type /AFN #: n/a Grantor /Grantee: n/a Confirmation: Tanya Royer, Listing Agent, 3/30/2009 Comments: Moderately sloped rectangular lot with light tree cover and extensive gravel/grass road system. Territorial /valley views to the east. NW comer fronts on Center Rd, a paved public road. Power is available on Center Road. Private well on site. Small area at NW comer of property is crossed by Center Road right -of -way. Purchased by previous owner (seller) on 7/15/2005 for $160,000 ($4,102/ac). Analysis: $225,000 / 39.0 ac = $ 5,800 per acre (r) ;P—O&s COMPARABLE NO.8 MAP/PHOTO m a - -+n �y 3 2 ~r f N .'' M i >t*.f a' �, r, : ' . ��: 1 ,4 COMPARABLE NO.8 Parcel Number: 801332004 3280 Dabob Rd, Quilcene Legal Desc (abbrev): S33 T28 RI w Nw (lying Ely of Dabob Rd) less Tax 16 & 17 Bnd Tgth Thru Bla #110992, Records of Jefferson County. (MI legal in appraiser's work file) Located approx 12 miles S of subject Size: 72.6 Acres Zoning: Commercial Forest (1:80) Sale Date: 3/20/2008 Sale Price: $500,000 Instrument Type /AFN #: WD #532316 Grantor /Grantee: McDonald/NW Watershed Institute Confirmation: Peter Bahls, NW Watershed Inst, Purchaser, and Rick Wells, Review App. 4/16/2009 Comments: Rectangular site with Dabob Rd, a paved public road, running along entire west boundary. The west' /2 of the property is low, level and cleared and shows as pasture. This area of the site has been recently replanted with small evergreen trees as part of a habitat reclamation project. The site then rises up with a moderate slope at its east ' /z . This part of the property is medium to heavily wooded and offers territorial /valley views looking west. Power is available on Dabob Rd. Timber valued by cruise prior to sale @ $140,000. Analysis: $370,000 / 72.6 ac = $ 6,900 per acre (r) k el COMPARABLE NO.9 MAP/PHOTO HM M COMPARABLE NO.9 Parcel Number: 801174002 xxx Dabob and Center Rd, Quilcene Legal Desc (abbrev): S 17 T28 Rlw El /2 Se (E of Co rd)(less Tax 7) Less R/W Bud tgth Thru Bla #106173 (full legal in appraiser's workfile) Located approx 10 miles S of subject Size: 50.46 Acres Zoning: Rural Residential -20 (1:20) Sale Date: 4/2/2008 Sale Price: $309,000 Instrument Type /AFN #: WD #532684 Grantor /Grantee: Pope Resources/Northwest Watershed Institute Confirmation: Sue Skylar, Pope Resources, 4/14/2009 Comments: Sloped and cleared site bisected by Dabob Rd. The west boundary is Center Rd. The site is criss- crossed by gravel logging roads. The west boundary is low, appears wet and is possibly being used to divert water runoff from Center Rd. Analysis: $309,000 / 50.46 ac = $ 6,100 per acre (r) COMPARABLE NO. 10 MAP/PHOTO 0 COMPARABLE NO. 10 m A � # a4 Y i v � m Parcel Number: 821332001 Lot 3 Teal Lake Rd, Port Ludlow Legal Desc (abbrev): S33 T28n Rle N1 /2 S1/2 Nw Bnd Tgth Thru Bla#107927, Records of Jefferson County (full legal in appraiser's workfile) Located approx 7 miles SE of subject Size: 39.53 Acres Zoning: Commercial Forest (1:80) Sale Date: 8/10/2007 List Price: $350,000 Instrument Type/AFN #: WD 4526257 Grantor /Grantee: OPG Llc/Goffman Trust Confirmation: Michael Holland, Olympic Hood Canal Real Estate, 4/14/2009 Comments: Top of ridge rectangular site with medium tree cover. Site is accessed via private gated easement road off of Teal Lake Rd, a public paved road. Power is at east boundary line. Good Olympic Mountain view and some Hood Canal view to the south and west. Topopraphy is mostly sloped with some leveling near top of ridge. Analysis: $350,000 / 39.53 ac = $ 8,900 per acre (r) SM. CERTIFICATE OF APPRAISAL I certify that, to the best of my knowledge and belief the statements of fact contained in this report are true and correct; the reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, unbiased professional analyses, opinions and conclusions; I have no present or prospective interest in the real estate which I have appraised and I have no personal interest or bias with respect to the parties involved or the subject matter of this report; My compensation is not contingent upon any action or event resulting from the use of my appraisal report; My analyses, opinions and conclusions were developed and this report has been prepared in conformance with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the National Association of Independent Fee Appraisers, and the use of this report is subject to the requirements of the Institute relating to review by its duly authorized representatives; I am currently certified under the voluntary continuing education program of the National Association of Independent Fee Appraisers; My contractual arrangement with my client does not authorize the out -of- context quoting from or partial reprinting of this appraisal report, nor does it permit all or any part of this appraisal report to be disseminated to the general public by the use of media for public communication without my written consent; I have made a personal inspection of the appraised property; and no one provided significant professional appraisal assistance to the appraiser signing this report. Rick D. Wells �-)H] ASSUMPTIONS & LIMITING CONDITIONS This appraisal has been made after a personal inspection of the property identified in this report. The conclusions contained herein have been arrived at and are predicated upon the following conditions. No responsibility is assumed for matters which are legal in nature nor is any opinion rendered on title of land appraised. 2. Unless otherwise noted, the property has been appraised as though free and clear of all encumbrances. 3. Where the value of the land and improvements is shown separately, the value of each is segregated only as an aid to better estimate the value which it lends to the whole parcel rather than the value of that particular item if it were by itself. 4. All maps, areas and other data furnished your appraiser have been assumed to be correct. If any errors or omissions are found to exist, the appraiser reserves the right to modify the conclusions. 5. No interest, present or contemplated, in subject property or parties involved. 6. Neither the employment to make the appraisal nor the compensation is contingent upon the amount of the valuation reported. To the best of the appraiser's knowledge and belief, all statements and information in this report are true and correct, and no important facts have been withheld. 8. Possession of this report, a copy, or any part thereof does not carry with it the right of publication, nor shall the report or any part thereof be conveyed to the public through advertising, public relations, news, sales or other media without written consent of the author, including but not limited to the valuation conclusions, identity of the appraiser or firm and any Q---] reference made to the American Institute or Society of Real Estate Appraisers, National Association of Independent Fee Appraisers or any professional designation. 9. There shall be no obligation required to give testimony or attendance in court by reason of this appraisal, with reference to the property in question, unless satisfactory arrangements are made in advance. 10. This appraisal has been made in accordance with rules of professional ethics of the National Association of Independent Fee Appraisers. 11. No one other than the appraiser prepared the analysis, conclusions, and opinions concerning real estate that are set forth in this appraisal report. 12. This was a request for an Appraisal of the property, completed in Summary format. This being the case, many supportive documents, maps, exhibits, etc., which would normally be included in the body of the appraisal are retained in the appraisers file. LEGAL DESCRIPTION (From Title Report) Attachment 1 Legal Description Parcel A The South '/2 of the Southeast %. of the Northwest'' /, and the Northeast'' /. of the Southwest' /. of Section 10, Township 29 North, Range I West, W.M., EXCEPTING therefrom that portion lying Southeasterly of the right -of -way for Anderson Lake County Road, by deed recorded February 17, 1960, under Auditor's File No. 164311; TOGETHER WITH easements for ingress, egress, and utilities, over, under and across portions of the North % of the Northwest %, of said Section 10 and Nicholson's Irondale Reservoir Addition, as per plat recorded in volume 2 of Plats, page 133, as delineated in Deeds recorded November 11, 1997, under Auditor's File Nos. 405622 and 405623, records of Jefferson County, Washington. Parcel B: Lot 1, Puget Southern Properties Short Plat, as per plat recorded in Volume 2 of Short Plats, page 89, records of Jefferson County, Washington. TOGETHER WITH an easement for ingress, egress, and utilities, over, under and across the North 60 feet of the South 660 feet of the West 660 feet of the East 990 feet of the Southwest'' /. of the Northeast'' /, in Section 10, Township 29 North, Range 1 West, W.M., in Jefferson County, Washington; ALSO TOGETHER WITH an easement for ingress, egress, and utilities, over, under and across the West 60 feet of the East 690 feet of the South 660 feet of the Southwest' /. of the Northeast' /. of Section 10, Township 29 North, Range 1 West, W.M., in Jefferson County, Washington; ALSO TOGETHER WITH an easement for ingress, egress, and utilities, over, under and across that portion of the West 60 feet of the East 690 feet of the Northwest '/. of the Southeast' /. lying Northerly of Anderson Lake County Road in Section 10, Township 29 North, Range l West, W.M., in Jefferson County, Washington. All situate in the County of Jefferson, State of Washington xw HM SURVEY OF ADJACENT PROPERTY TO THE EAST EM ex COPY OF VESTING DEED TUPS a¢`1ta �e nTLZ W3URANaC WRiW GMxrtu 1 dEErsRsow TITLE �AxY. INC. :$PS} 011y/fam 5334VL Al 18 -RR _ tlI(Ma `ran. -Gmm� f. MODERATE JACALYM R. "SIDGERRIY ' rla. -..I39 'A'_ STREET ,_ __ _....._... _. . t CRMTAALIA. MA 91533 39BW9BTV WAIVRB1ryeRN T16DYMW YAAT E. TMEILAGLT, AS HM WMARNIE ESTATE Yr1Y�lY.r/ TEN DOLLARS AND DTm VALVABLB C0M9tDEMTIpI !•A�pAA�wn Y9�IMr G&DRGE E. xE.,G&JIM AND JACALTN R. tleIDGCtt1Y. MDSEAND AMD YVE lwldsY9Awui.tlrr. +w9 b�I.Or.♦ 'J611PJSON •�YY�y: SEE EXHIBIT -A- ATTADMYD mum AND MADE A FAST 8[11001. Iafm" C••• am%&. N9 P.NA . APRIL 23 93 ,N MAE, 9' ep A7'ili —41 n.no..w." JEPIFASOM GMxrtu l.v.pwa�r..ww.r+WwoM.- M�pY E. TXERIADLT .....r..� r..... r l.r ��uw lw. 9..x99..... +a` 0 412 :, 72 AP03 0 00p NM .. APPRAISER'S OFFER OF ACCOMPANIMENT �A•CaE PS,Inc. r Appraisal Consulting Environmental Sereeaing OFFER OF ACCO"ARLSEIPy Date: 212/09 Name of Owner. Georgo Heidgerkea Appraiser: RICK D. WELLS, WAS Project Sponsor: Washington State Parks and Recreation Commission Dear. Mr. Heidgerken: Karen Waltenburg at Washington State Parka and Recreation Commission. has requested that I appraise the following properties: Jefferson County Tax Parcel Numbers 901 102004 & 901102006, in the vicinity of Anderson Lake. According to the records at the Jefferson County Announces Office, you are the owner of the above - mentioned property. In compliance with the Seats and /or Federal regulations, 1 am required to give you an opportunity to accompany me when I do my field inspection of the property. I plan to view the property on 2112/2009, and this letter is an invitation for you to go with me when I appraise the property. Please indicate below whether or not you wish to an ompany me and return the letter to me as soon as possible. If you do wish to be present, but cannot make the net date and time, please call me immediately at: 3660,-692 -5081, to set en alternate date. Sh.,,vly YOl9P:� �f - ISek D. WeW,, IFAS. Reply by the eeriner I have read the above letter and I )(do, i I do east wish to accompany the appraiser to inspect the property Rehm m: A,C.E- PS, INC. P.O. 13O %3241, SILVERDALE, WA 98383 P.O. Barn 1. slwer4atr, Wreelre[on sumo IW)ot -M1 vs. p4q M"', rmril anmin[®phaasom HM u3 /t2/2a04 mxo 10,aI znx 0001!00} U -a unM1MKUU 11PY1rMtlLw r.Q+Y !1 (� l u: rn mN At7'tl FIELD ORDER u n Ai" 0311 IY2009 $465125 11FMI. M}f SHIVTO 9550 tT4 550 4550 Washingwn State Washington Stale PARKS & RECREATION COMMISSION PARKS & RECREATION COMMISSION I I I1 ISRAEL ROAD SW PDSC -LANDS PROGRAM -ATTN: KAREN IVALTENDURG TOMW.A'1" 1".R WA 98504-2650 IIU ISRAELROAD SW OLYMPIA WA 98504 TO MAII4 INVOICES TO 2 9650 124 1 3630 ' A.C.13, PS, INC. 'WASHINGTON STA'CE 3 40 NW LOWELL STREET PARKS &RECREATION COMMISSION SILVERDALE WA 98383 PO BOX 42650 - PAX #(360) 692 -5126 OLYMPIA WA 98504-2651) l".11 rox 0n.. v[NMM[ rf151t «0a. rnv+uxY,A,ws I'll .onn.. 9 S 7 V A WA ' "I I DcIi ver the articles ordered below in accordance with the terms and conditions at litto' / /www ae wa uov /pca /cps.hgn instructions to vendor: show audunization no. & field order no. on all invoices, packages & shipping documents, Washington State sales tax applies to this order. W f fNWMa 14'4AG _ i i'4%TRf1R( y1A' 1 11NR VMY F 1 11FMI. M}f ACCL7 TANCE OP YO1ih QUTO$c NICK WELLS 3,500.00 _.. 6 S SLL'A YTACNF,D UOTL FOR SPECS SCOPE' . ,,y I for Voido,'s Copy - Accoto ing Copy - Receiving Rcpor/ Copy 2 - Agency Co, - DSP Copy ( Whoa R"I"I'd) NM� TIMBER CRUISE BY FORESTECH, LLC 260 Old Fort Townsend Road Port Towosead. WA 98368 (360) 2714779 www.littletotest.org TIMBER CRUISE AND APPRAISAL March 21, 2009 Rick D. Wells. WAS Consulting Appraiser A.C.E PS, INC PO Box 3241 Silverdale, WA 98383 Re: Timber Appraisal for Jefferson county Parcels # 901102004 & 901102006 Dear Mr. Wells: Following is the limber cruise and appraisal for the above - mentioned parcels. Net value of the mature timber — $51,053.95 Net value of regeneration age trees— $21,438.00 Total Value— $72,491.95 The field evaluations and sampling were conducted during March 2009. Because of the diversity in species, age and quality of the timber, all the mature trees were evaluated. Trees over 30 years of age were measured and evaluated by volume and trees under 30 years of age were appraised as reproduction by compounding typical reforestation cost of $1.00 per tree to their present age. 20 acres were appraised as mature timber and 36 acres were appraised as reproduction. Wetlands, roads and non - stocked areas accounts for the other acreage. Field measurements were taken as follows: For the mature stand: 1. Trees with diameters greater than six inches at four feet from the ground were sampled. 2. Diameters were measured at four feet from the ground to the nearest one -inch. 3. Heights were measured to the nearest two feet. 4. Form factor (taper) was calculated individually for each measured tree. 5. Log grades and sorts were assigned based on the best raw log product that could be manufactured and marketed. For the regeneration trees, sampling was accomplished by measuring ten 1 /20s' acre plots randomly selected over the applicable 36 acres. tIM The appraisal was compiled using the tolinwing criteria: I. Volumes were computed using the Scribner Log Rules. ?. Ihow togs normally sold by weight Here converted w tons Hum board feet. 3. Long and associated c sfv arc based on even -aged harvest (clear-cut), 4. Current log prices for the .I acoma, Shelton. and Pon Angeles markets were csed m compiic the gross values. i. No threatened or etdzngered species were identified or accounted for. 6. No wsts let mad construction or a esemoms acquisition were compiled. 7 There are no restrictions on timber harvest ecwnbrig to the Forest Practices Act, except for stream protection. Please tee[ free to contact me For any clarifications or questions. Sincerely r� Enr] Kong Forester Lax- Page 2— Appraisal. PMJeet 0901102004 and 901102006 Jefferson MBF Tons Total Volumes and Gross Revenue 155 208 S $1,775.00 Lass Expanses: Logging Casts MBF $ 90.00 $ 13,950.00 Ton $ 14.00 $ 2,91200 "out COM MBF 5 60.00 $ 9,300.00 Tan $ 9.00 $ 1,872.00 Admtnlanadon, Pamela Subtotal Expense $ 28,034.00 Stumpage $ 53.741.00 State Timber tax $ 2,687.05 Na Stumpage veto* M*Wm frims $ S1A63.95 Calculations for NgenarWon 14 acres slacks! w4h 28 year old uses. 240 tremnl (average). 3,380 trees Q $ 11.92 each = $40,05120 22 acres stocked with 10 yea okt Veen, 60 treesmens ( average). 1,320 trem G $ 2.14 each = 112,824.8 Total 9M9 value reWarason trap $42,876.00 Lees operating cost (50 %) $21,435.00 Net stumpage "too rsgineratlon trees S 21,438.00 Total value far net stumpage $ 72,491.56 HM .. QUALIFICATIONS OF APPRAISER RICK D. WELLS, IFAS WA ST CERT GENERAL APPRAISER N 1100344 P.O. Box 3241 Silverdale, Wa. 98383 (360) 692 -5081 Fax (360) 692 -5126 Email acepsinc @yahoo.com CREDENTIALS My credentials include the following memberships, designations and affiliations: 1983, Organized and was elected Pres.of the Western Wash Chapter of the Intml Association of Assessing Officers (IAAO). Member in Good Standing of NAIFA (NATIONAL ASSOCIATION OF INDEPENDENT FEE APPRAISERS). Received General Real Estate Appraiser Certification from the State of Washington on 7/30/91. Completed requirements and Received "IFAS" Designation from NAIFA on September 29, 1994. EDUCATION 1974 -75, Tacoma Community College - Courses of study including real estate principles, law, finance and appraisal Since 1976, 1 have completed the following classes and/or seminars as related to the appraisal field: October, 1976, Residential appraisal principles, sponsored by the Washington State Dept. of Revenue, Ellensburg, WA. October of 1977, Commercial property appraisal course sponsored by the St. Dept of Revenue, Ellensburg, WA. October of 1979, Course I pertaining to residential appraisal techniques, IAAO , Ellensburg, WA. [n 1981, Course II, Fundamentals of Commercial Appraisal, 1AAO. Ellensburg, WA. February, 1991, Income Property Appraisal II, sponsored by the NAIFA, Highline Community College. June, 1991, Commercial Narrative Report Writing, NAIFA, Highline Community College February, 1992, NAIFA Appraisal Instructor Conference in St. Louis, Mo. January, 1993, NAIFA Appraisal Instructor Conference in St. Louis, Mo, January, 1994, NAIFA Appraisal Instructor Conference in St. Louis, Mo. January, 1995, NAIFA Appraisal Instructor Conference in Belleville, ILL. October 1995, Condemnation Appraisal Course, NAIFA, Portland, Oregon January, 1997, NAIFA Appraisal Instructor Conference in Belleville, ILL. November 1998, Capitalization Techniques, McKissok Data Systems, Spokane, WA March, 1999, NAIFA Appraisal Instructor Conference in Belleville, ILL. December 1999, Govemnent Takings/Condemnation Conference, Seattle, WA October 200 1, Condemnation Case Studies, WSBA, Seattle, WA February 2002, Expert Testimony, Case Preparation, McKissock Data Systems, Columbus, OH April 2003, USPAP 15 hr Update, Allied Business Schools, Laguna Hills, CA February 2004, 8 hr USPAP Update, NAIFA, Silverdale, WA January 2007, 7 hr USPAP Update, Adriadic Inc., Silverdale, WA February 2007, Yield Capitalization, Mykut Real Estate School, Lynnwood, WA November 2007, Advanced Forensic Appraisal Review Techniques, NAIFA, Poulsbo, WA PROFESSIONAL CONTRIBUTIONS /AWARDS/TEACHING EXPERIENCE/ETC. Organizer of first Western Washington Chapter of the International Association of Assessing Officers (IAAO) in 1983 representing all Counties in Western Washington. Elected President of Chapter in 1984. Co- Instructor, Principles of Real Estate Course, Olympic College, 8/85, 10/86. Co- Instructor, Basic Real Estate Appraisal, Highline Community College, 4/87. Instructor, Appraisal Principles, Olympic College extension, 10/87, 10/88. Certified National. Instructor for NAIFA, January 1995 -1999. Instructor for NAIFA of numerous appraisal courses throughout the Western US. Placed on WA. ST. Dept. of Transportation's Right of Way Appraiser List, January 2000 Em l"" WORK EXPERIENCE April 1976 - Feb. 1984 Commercial/Residential Appraiser with Kitsap County Assessor's Office. Feb. 1984 -Present Commercial/Residential Chief Appraiser /Pres. A.C.E. PS, Inc. Consulting Appraisal Firm COURTROOM EXPERIENCE Have been qualified as expert witness in: Jefferson County Superior Court Kitsap County District and Superior Courts. Kitsap County Board of Equalization Pierce County Board of Equalization Washington State Board of Tax Appeals US District Court APPRAISAL CLIENTS HAVE INCLUDED: American Marine Bank Bank of America Banner Bank Beneficial Mtg. Bremerton School District Central Kitsap Schools Chase Manhattan Bank Chemical Bank City of Shelton City of Bremerton City of Port Orchard City of Shelton Continental Mtg. Countrywide Home Loans CRISTA Ministries Farmers Insurance Co. First American Title Insurance Co. Frontier Bank Harrison Memorial Hospital Heritage Federal Savings Internal Revenue Service Keybank of Wa. Kitsap County Consolidated Housing Authority Kitsap Credit Union Kitsap County Bank Mason County Public Works Mellon Bank Nations Bank Navy Federal Credit Union AREAS OF EXPERTISE Olympic College Port Angeles School Dist. Port of Brownsville Port of Bremerton Port of Illahee Port of Silverdale Puget Sound Energy Services Qwest Safeco Insurance Co. Shelton School District Skokomish Indian Tribe Standard Oil of California The Salvation Army (Seattle Region) United Methodist Church International University Savings Bank US Bureau of Indian Affairs US Marshal's Service US Bank US Dept. of Agriculture WA ST DSHS WA ST Dept. of Fish & Wildlife WA. ST. Dept. of Transportation Washington Mutual Bank Washington State Dept. of Corrections Washington Federal Savings West One Bank Westsound Bank William H. Gates III Various Legal Firms and Private Parties Appraisal Services include but are not limited to: Appraisal for specified value type, i.e. Fair Market Value, Value in Use, Leasehold, etc. Market rent surveys, Highest and Best Use analysis, Cost surveys, right of way. Consulting Services include but are not limited to: Appraisal Review, Land use study, Feasibility Studies, Environmental Screening (Phase 1), Case preparation relating to establishment of damage basis and examination of Real Estate related evidence. Real Estate Tax /Assessed Value appeals. HM FHMl STATE OF WASHINGTON Of PARTP 'Y :k I A', D, r`RYESyl')45 rWvi'-il,.!, THE CrAVRRS THAT THE PERSON NAMED HEREON M AU'T'HORIZED , AS PRDWDRD " LAW. AS A CERnPWD GENERAL REAL ESTATE APPRAURK RIMOVEUS P 0 BOX 3241 SILVERDALE WA "AS CA I api.[ Data 10*wa." 004101 Dow. Agg Punef SOU Quimper W11411M t r 4 v :o rider 2009 - _,_ �. It of _ _ Win 5i a Ufa Quimper Wetland yy Dz Wi". EvIIer 2006 J"j" Corridor 2004 rau s A C � Qer : s F s e E d F"�0 a3ieeR § ae 8 x 2 A x5 gURI Y &�&"R xasas a5sg9g sasgsg 55y apg3xxs`s � dpG &9R-9W9 s 5 xaxe a 'eases a §a "s sa a wsaee a "a £ E e s F E £ s s £ e 8� I y yyS Fj£Z &g q$y. Page 1 of 2 Tami Pokorny From: Stacie Hoskins Sent: Tuesday, June 01, 2010 4:23 PM To: Tami Pokomy Subject: 2010 Conservation Futures projects Tami, In response to your inquiry of May 5, 2010 regarding 2010 Conservation Futures projects, I have the following comments: I understand the proposed projects involve the purchase of the following parcels: Salmon Creek Rioarian Acauisition Parcel number Zoning Approximate acreage* Potential # of Developable parcels 902272000 Commercial Forest CF 1:80 r 160 acre 2 Tamanowas Rock and Nicholson Short Plat 901102004 Rural Residential RR 1:20 58.39 2 -3* 901102006 Rural Residential RR 1:20 4.71 1 975000001 Rural Residential RR 1:20 6.74 1 975000002 Rural Residential RR 1:20 10.44 1 975000003 Rural Residential RR 1:20 8.06 1 975000005 Rural Residential RR 1:20 1.62 1 975000006 Rural Residential RR 1:20 6.73 1 975000007 Rural Residential RR 1:20 10.29 1 975000008 Rural Residential RR 1:20 8.75 1 975000009 Rural Residential RR 1:20 8.56 1 975000010 Rural Residential RR 1:20 5.13 1 Total 129 acres 12 -13 *Acreage is based on mapping. Surveys may differ from these estimates. * *A formal survey may identify the parcel as larger or smaller. As such the potential number of developable parcels may be two or three. "Tamanous Rock" is listed as State Historical Site #87H. Neither of these proposals includes property located within an urban growth area, and the potential loss of developable parcels is minimal. The Jefferson County Comprehensive Plan identifies goals and policies for the preservation and enhancement of open space. Open Space Goal (OSG) 1.0 guides Jefferson County to preserve and enhance the existing open space lands, and Open Space Policy (OSP)1.5 encourages the pursuit of public acquisition of potential parks, critical wildlife areas, and other open space lands by utilizing a variety of funding mechanisms. Recommendation: Based upon the preceding findings, the Department of Community Development believes proposed acquisitions would not significantly reduce the Jefferson County's capacity to accommodate planned growth and Jefferson County would retain enough development land to accommodate the housing and employment growth that it is expected to receive. 6/4/2010 Page 2 of 2 sW& Z. Iw Planning Manager Jefferson County Department of Community Development 621 Sheridan Street Port Townsend, WA 98368 Phone 360 - 379 -4463 Fax 360 - 379 -4451 shwkins a&co.jefferson.wa.us All e-mail sent to this address will be received by the Jefferson County e-mail system and may be subject to Public Disclosure under Chapter 42.56 RCW ASAVE PAPER - Please do not print this e-mail unless absolutely necessary 6/4/2010