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Home My WebLink About060815_cabs01CABS 615 Sheridan Street Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org June 2, 2015 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: Tami Pokorny, Environmental Health Specialist II DATE: SUBJECT: Agenda Request: Quilcene Acquisitions 2012 Project (RCO #12- 1384C): James and Henderson Properties STATEMENT OF ISSUE: Water Quality requests an opportunity to update the Board about the Quilcene Acquisitions 2012 Project (RCO #12- 1384C) including two floodplain property valuations and to discuss next steps towards acquisition. ANALYSISISTRATEGIC GOALS: Salmon habitat associated with the lower mile of the Big Quilcene River is adversely affected by levies and other constraints to the river's natural flow across the floodplain. Seasonal flooding impacts adjacent neighborhoods on an almost annual basis. Flood frequency and severity are projected to increase over time due to changing precipitation patterns. Property acquisition is a crucial first step to larger -scale projects designed to restore the lower mile of the river and alleviate flooding. Since the late 1990s, the County and its partners have worked to acquire key floodplain properties. The Quilcene Acquisitions 2012 Project originally identified two different properties for acquisition, but efforts to acquire them were ultimately unsuccessful. Water Quality worked together with the RCO and HCCCLE identify the James and Henderson Properties as appropriate substitutes. A valuation for each property is now complete. RCO policies allowed for a comparative market analysis prepared by a real estate broker for the James Property due to its estimated value below $10,000. The Henderson Property appraisal was completed by Greg Goodman of Valbridge Property Advisors on May 21, 2015 and reviewed by Joseph Granger on May 28, 2015. Mr. Granger concurred with the original appraised value of $28,000. Next steps towards acquisition include authorization and concurrence, purchase and sale agreements and site assessments. Community Health Developmental Disabilities 360- 385 -9400 360 -385 -9401 (f) Always working for a safer and healthier community Environmental Health Water Qualify 360- 385 -9444 f fl 360- 379 -4487 FISCAL IMPACT /COST BENEFIT ANALYSIS• Costs for this update are negligible. RECOMMENDATION: Permit staff member Tami Pokorny to update the Commissioners on the Quilcene Acquisitions 2012 Project. Review attached valuation and project information, discuss and ask questions. REVIEWED BY: flip Mo y ounty Administra Community Health Developmental Disabilities 360- 385 -9400 360 -385 -9401 (f) Date Always working for a safer and healthier community Environmental Health Water Quality 360 -385 -9444 (f) 360- 379 -4487 Lower Big Quiloene River Channel Migration Zones a High Risk Zone lcgmd 0 ,amesand Henderson ow=dgp O Proposed to 9TBin 2015 MEN SUPP. PLAT Nam .n .:... .: �mmmmmem Sol' l��lll�l�-11d�� 1 11111111111111m.1111 o momm oomm mo�mm�ommm mmmmmmmmmm . o�� «e�sa� ��se��sm emmmmmmmlm mommmmmllm�m��mm1 amamllmmml ommmmamoml �Nm�m�� mm,�m��,�m .• . LOT 1 913 0 lcgmd 0 ,amesand Henderson ow=dgp O Proposed to 9TBin 2015 .U2 of possi bl e restoration scenario (partial restoration) on the Big Quilcene Roodplain presented in the Puget Sound Nearshore Concept Design Pbport from 2011. rIgum s Researched and prepared by Jeri Jacobson Prepared exclusively for Environmental Health, Jefferson County, WA Jeri Jacobson Johnston Realty Broker PO Box 88 Brinnon, WA 98320 (360) 796 -4603 jeri.lacobson@ymail.com Subject Property XX Fremont Avenue Quilcene, WA 98376 Pricing Recommendation This page suggests a recommended selling price based on a thorough analysis of your property- $7,500.00 Due to the lack of recent sales in the area it its a challenge to estimate value. tNidening the search to neighboring towns allowed me to find enough comparable properties to make the determination. Of all the comparable properties sold, the one that is the closest in location is 222 Fremont 222 Fremont is 3 lots where the subject property is one lot. The other difference is 222 Fremont is right next to the river and so has more value. 222 fremont sold for $30,000 in 2006. I adjusted - $22,500 for the difference. The next closest property that sold is across the river on Leadville AV which sold for $10,500 in 2003. The Leadville properly is 4 times as large as the subject property but the sale is too old to be a good comparable. Of the properties that sold more recently, the two that matched best are the Lake View Drive Property that sold for $$7,500 in 2015 and the Snow Creek property that sold for $12,000 in 2014. Both of these properties are twice as big as the subject property & they are both located in a more rural area, further from a town. The Moore St property In Pt. Hadiock sold for $6000 in 2015 and is the same size as the subject, the main difference is the location. v vwu11GJVPr, r-WI IR -, GV I V Full Summary of Compared Listings This report summarizes the comparable listings contained in this market analysis. Subiect Prof: rty XX Fremont Avenue MLSO Status List Price List Date Sold Price Sold Date City Quilcene, WA Area 492 - Quilcene Subdiv DOM Beds Baths Fireplaces Parking Park Type Sqft Acres 0.129 ac/5,632 sf View HeatlCool Foundatn Age Restr Year Bunt Floor Plan Architect Sewer Wtr Spply Remarks: Price Total Adjustments Adjusted Price Detalli 999 Leadville Ad,111Tet Details 222 fremont Ave Adjus 22267175 25164980 Sold Sold $13,000 $35,000 12/30/2002 11/03/2005 $10,500 $30,000 06/18/2003 06/26 /2006 Quilcene 0 Quilcene 0 492 - Quilcene 0 492 - Quilcene 0 0 Quilcene 0 157 174 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.500 ac/21,780 0 0.344 ac/15,000 - 20,000 Bay, Mountain, Territorial 0 Mountain, River, Territorial 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Not Available 0 Not Available 0 On Property 0 Not Available 0 All Level Land With Southern Exposure, A View Of Quilcene Bay And Mountains. Mature Fruit Trees And Grapes. Well, Power And Phone On Property. In Old Town Quilcene. Come Build Your Home And Enjoy The Water And Mountain Vlew At An Incredible Pricel Three beautiful lots on the banks of the Big Quilcene river. Nice trees for privacy but with quick access to town and high I01.Aiso near public access to hood canal and Olmypic national park hiking trails.You will enjoy watching the wild Iffe as you land the big one in your own fishing hole.make small Gearing $10,500 $30,000 $0 $40,000 Full Summary of Compared Listings This report summarizes the comparable listings contained in this market analysis. Subiect Prope,�rly XX Fremont Avenue MLS# Status List Price List Date Sold Price Sold Date city Quilcene, WA Area 492 - Quilcene Subdiv DOM Beds Baths Fireplaces Parking Park lype Scift Acres 0.129 ac/5,632 sf view Heat/Cool Foundatn Age Restr Year Suitt Floor Plan Architect Sewer Wtr Spply Remarks: Price Total Adjustments Adjusted Details 480 E Moore St 430875 Sold $10,000 12/14/2012 $6,000 03/15/2013 Port Hadlock 485 - Hadlock Irondale 31 0 0.119 ac/5,191 Not Available In Street Adjurst Detaillt L63 66 Snow Creek Way 595417 Sold $12,000 02/20/2014 $12,000 12/31/2014 0 Quilcene 0 492 - Quilcene 0 Quilcene 300 This property is located near the beach with great access for walking, fishing, crabbing. At current time this Is not a buildable lot as It does not meet the square footage requirement for Jefferson county. it is a recreation lot. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.480 ac120,908 Not Available Not Available Great Recreational comer lot right off Snow Creek Seiler opening access to the property. No Information on the potential use as the lots nm right along Snow Creek. Area of homes and campers. Great Spot!!! 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $6,000 $12,000 $0 $0 Full Summary of Compared Listings This report summarizes the comparable listings contained in this market analysis. XX Fremont Avenue MLS# Status List Price List Date Sold Price Sold Date City Quitcene, WA Area 492 - Quilcene Subdiv DOM Beds Baths Fireplaces Parking Park Type Sqft Acres 0.129 ac/5,632 sf view Heat/Cool Foundatn Age Restr Year Built Floor Plan Architect Sewer Wtr Spply Remarks: Price Total Adjustments Adjusted Price Mails 9999 Lake View Or 715210 Sold $7,500 11/07/2014 $7,000 03/25/2015 Quilcene 492 - Quilcene Lake Leland 103 0 0.262 ac/11,400 Lake, Territorial Not Available Available Level and cleared lot in Snow Creek Ranch. PUD water and power available. View of Crocker Lake. Community lake access a short walk away) Large community green belts for community use. Great lot to park you RN or build a garage /shop. Details Adjust 1111 39th St 739142 Active $12,000 02/04/2015 0 Port Townsend 0 0 480 - Port Townsend 0 0 Port Townsend 0 77 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $7,000 $0 $7,000 0 0 0 0 0 0 0 0.459 ac/20,000 0 0 0 0 0 0 0 0 Not Available 0 Not Available 0 Four lots, 20,000 sq feet, in Cappy's trails with nice trees. Good investment for tuture development Property sits at the comers of 39th and Logan Street. Listed below its assessed value. $12,000 $0 $12,000 Fug% Summary of Compared Listings This report summarizes the comparable listings contained in this market analysis. A-. -- ...... ---- 1, .r..... , -..-. Subject Property Details Adj= Detail Adju XX Fremont Avenue lot 2 block 21 Tibbals Add St Creek Drive /Creek Court MLS# 647571 707965 Status Active Active List Price $4,000 $8,500 List Date 06/1012014 10/18/2014 Sold Price Sold Date city Quilcene, WA Port Townsend 0 Brinnon 0 Area 492 - Quilcene 480 - Port Townsend 0 493 - Brinnon 0 Subdiv North Beach 0 Olympic Canal 0 DOM 316 186 Beds 0 0 Baths 0 0 Fireplaces 0 0 Parking 0 0 Park Type 0 0 Sqft 0 0 0 0 Acres 0.129 ac/5,632 sf 0 0.356 ac/15,498 0 view 0 0 Heat/Cool 0 0 Foundatn 0 0 Age Restr 0 0 Year Built 0 0 Floor Plan 0 0 Architect 0 0 Sewer Not Available 0 Not Available 0 WtrSpply Not Available 0 Unknown, Well Needed 0 Remarks: Near Cappy's Trail - great spot within the city This is a wooded lot that has been vacant for limits, but no utilities yet. Tech conference years. The property is only partial visible with the city is recommended. Invest In your from the road. One will have to hike up from future in Port Townsend. the road through a wooded area to preview the property. There is not a public water system supporting this lot. Wonderful community beach with oysters and clams. Price $4,000 $8,500 Total Adjustments $0 $0 Portrait Report This report breaks down the compared properties by Status. Vacant Land Active Properties Address City Bd Bth SgFt Lot Sz Yr Bit Date $ /SgFt CDOM Orig Price List Price lot 2 block 21 Tibbals Add St Port Townsen 0 0 6110/14 315 $4,000 $4,000 Creek Drive /Creek Court Brinnon 0 15498 10/18/14 185 $9,500 $8,500 1111 391h St Port Townsen 0 20000 2/6115 76 $16,000 $12,000 Listing Count 3 Averages 182 $8,833 ;8,167 High $12,000 Low $4,000 Median $8,500 Sold Prooertles Address 999 Leadvi8e 222 fremont Ave 480 E Moore St L63 66 Snow Creek Way 9999 Lake View Dr Listing Count 5 Report Count 8 City Bd Bth SgFt Lot Sz Yr Bit Date $ /SgFt CDOM Orig Price List Price Sale Price Quilcene 0 0 0 21780 6/18/03 157 $13,000 $13,000 $10,500 Quilcene 0 0 0 15000 6126106 174 $45,000 $35,000 $30,000 Port Hadlock 0 5191 3/15/13 31 $10,000 $10,000 $6,000 Quilcene 0 20908 12/31/14 300 $12,000 $12,000 $12,000 Quilcene 0 11400 3/25/15 103 $7,500 $7,500 $7,000 Averages 153 $17,500 $15,500 $13,100 High $30,000 Low $6,000 Median $10,500 Report Averages 168 $14,625 $11,250 High $30,000 Low $4,000 Median $9,500 Researched and preparpd by Jeri Jacobson Linger Longer Rd Fremont Ave t .a 0 "'Ont Ave try ?$fir Me� 1 1 17ag tiff 1."I r r :3 FrecnOn' Ave ofVwjx1i -1E1. __...' Courtesy Of Jeri Jacobson Map The data within this report is compiled by Corel-og c from public and private sources. If desired, the accuracy of the data contained herein can be independenfiy verified by the recipient of inis report with the appiicabie county or municipality, verier'ated on 04/223/2015 Page IofI Appraisal Report Henderson Property 195 Rodgers Street Quilcene, Jefferson County, Washington 98376 Report Date: 05 -21 -2015 Mott� F grill —. low Qom. FOR: Jefferson County Water Quality & Environmental Health Tami Pokorny 615 Sheridan Street Port Townshend WA 98368 Valbridge File Number: 15 -0054 �1�• // Valbrid e 1..../ PROPERTY ADVISORS 506 Second Avenue, Su i t e 1001 Seattle, WA 98104 206 - 209-3016 phone valbridge.com 05 -21 -2015 Greg Goodman 206 - 209 - 3016 x204 ggoodman@valbridge.com Tami Pokorny Jefferson County Water Quality & Environmental Health 615 Sheridan Street Port Townshend, WA 98368 RE Appraisal Report Henderson Property - 195 Rodgers Street Quilcene, Jefferson County, Washington 98376 Dear Ms. Pokorny: In accordance with your request, I have prepared an appraisal of the above - referenced property. This appraisal report sets forth the pertinent data gathered, the techniques employed, and the reasoning leading to the value opinions. The subject property, as referenced above, is located along the east side of Rodgers Road, south of its intersection with Quilcene Avenue. It is further identified as Assessor's Parcel Number (APN) 991200301. The subject consists of a rectangular- shaped, 29,088 - square -foot site. This is an interior lot located along a lower- volume street. For the most part, the property is generally level and covered with a mix of trees and other vegetation. It is noted that the entire site is located within the 100 -year floodplain of the Big Quilcene Ewer, as well as a high risk channel migration zone. In addition, various sensitive areas comprised of wetland areas can be found on the site. Improvements on the site include an older manufactured home that is in poor condition, considered to be uninhabitable and of no contributory value. Other site improvements include a gravel driveway, some landscaping, wood fencing and various shed structures. I have developed my analyses, opinions, and conclusions and prepared this report in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation; the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; the Uniform Appraisal Standards for Federal Land Acquisitions; Manual 3 for RCO Funding, and the requirements of the client as I understand them. The client for the appraisal is Ms. Tami Pokorny of Jefferson County Water Quality and Environmental Health. Intended users include the client and Jefferson County's authorized employees, Valbridge } � PROPERTY ADVISOR Tami Pokorny Jefferson County Water Quality & Environmental Health 05 -22 -2015 Page 2 representatives, or agents. The appraiser does not intend use of this report by others. the intended use of this appraisal is for decision making purposes for a proposed acquisition of the subject property in its entirety. It is not intended for any other use. The value opinions reported herein are subject to the definitions, assumptions and limiting conditions, and certification contained in this report. If there are extraordinary assumptions and /or hypothetical conditions used in this report, the use of these extraordinary assumptions and hypothetical conditions might have affected the assignment results. The acceptance of this appraisal assignment and the completion of the appraisal report submitted herewith are contingent on the following extraordinary assumptions and /or hypothetical conditions: Extraordinary Assumptions: • No information regarding the presence or absence of hazardous waste on the subject property was provided. This appraisal assumes the absence of any and all hazardous waste on the subject property. If hazardous waste is found to be present on the subject property we reserve the right to change the valuation contained in this report Hypothetical Conditions: None Valbridge 1v'r PROPERTY ADVISORS Tami Pokorny Jefferson County Water Quality & Environmental Health 05 -22 -2015 Page 3 Based on the analysis contained in the following report, the value conclusions involving the subject property are summarized as follows: Value Conclusions Value Type Market Value Property Fights Appraised Fee Simple Effective Date of Value May 14, 2015 Value Condusion $28,000 Respectfully submitted, Valbridge Property Advisors I Allen Brackett Shedd Gregory L. Goodman Managing Director Washington License #27011 1101089 License Expires 12 -02 -2015 Val bridge HBT DEFWN PROPERTY TABLE OF CONTENTS PROPERTY ADVISORS Table of Contents Cover Page Letter of Transmittal Tableof Contents ........................................................................................................................................ ............................... i Summaryof Salient Facts .......................................................................................................................... .............................ii Aerialand Front Views ................................................................................................. ............................... ............................iii LocationMap ................................................................................................................................................ .............................iv Introduction................................................................................................................................................... ..............................1 Scopeof Work .............................................................................................................................................. ..............................4 AreaDescription .......................................................................................................................................... ..............................6 SteDescription ............................................................................................................................................ ..............................8 ImprovementsDescription .................................................................................................................... .............................13 SubjectPhotos ............................................................................................................................................ .............................14 Assessmentand Tax Data ...................................................................................................................... .............................20 Highestand Best Use ............................................................................................................................... .............................21 AppraisalMethodology .......................................................................................................................... .............................23 LandValuation ............................................................................................................................................ .............................24 Reconciliation............................................................................................................................................ ............................... 39 General Assumptions and Limiting Conditions ............................................................................. .............................40 Certification................................................................................................................................................. .............................47 Addenda....................................................................................................................................................... .............................49 Glossary.................................................................................................................................................. ............................... 50 VALBRDGE PRDPERTY ADMSDF; S I Valbridge Property Advisors I Allen Brackett Siedd Page i Valbridge PROPERTY ADVISORS Summa of Salient Facts Property Identification Property Name Property Address Latitude & Longitude Assessor's Parcel Number Property Owner Zoning FEMA Rood Map No. Rood Zone Land Area Valuation Opinions Highest & Best Use - As Vacant Reasonable Exposure Time Reasonable Marketing Time Value Type Property Fights Appraised Effective Date of Value Value Condusion HENDERSON PROPERTY SUMMARY OF S4LIE1\1T FACTS Henderson Property 195 Rodgers Street Quilcene, Jefferson County, Washington, 98376 47.819575, - 122.875077 991200301 Francis Henderson RR 1:5 530069055B A2, 100 -year flood plain 0.668 acres Recreational and /or open space use less than 12 months less than 12 months Value Conclusions Market Value Fee Simple May 14, 2015 $28,000 VALBRDGE PRDPERTY ADMSDF;S I Valbridge Property Advisors I Allen Brackett chedd Page ii Valbridge HBNDEFWN PROPERTY PROPERTY ADVISORS ANAL AND FRONT VIEWS Aerial and Front Views FAmNrawIATA �ZZ971►1II VAIATA VALBRDGE PRDPERTY ADVISJRS I Valbridge Property Advisors I Allen Brackett Siedd Page iii Valbridge PROPERTY ADVISORS Location Map ,'oy e F: SJ -Q0 Pry HBNDERSDN PROPERTY LOCATION MAP VALBRDGE PRDPERTY ADMSDF;S I Valbridge Property Advisors I Allen Brackett Siedd Page iv Va I bridge �•'; PROPERTY ADVISORS Introduction NO, 1:,69 • •\ Client and Intended Users of the Appraisal The client for the appraisal is Ms. Tami Pokorny of Jefferson County Water Quality and Environmental Health. Intended users include the client and Jefferson County's authorized employees, representatives, or agents. The appraiser does not intend use of this report by others. Intended Use of the Appraisal The intended use of this appraisal is for decision making purposes for a proposed acquisition of the subject property in its entirety. It is not intended for any other use. Real Estate Identification The subject property is located at 195 Rodgers Street, Quilcene, Jefferson County, Washington 98376. The subject property is further identified by Assessor Parcel Number 991200301. The subject consists of a rectangular- shaped, 29,088- square -foot site. This is an interior lot located along a lower- volume street. For the most part, the property is generally level and covered with a mix of trees and other vegetation. It is noted that the entire site is located within the 100 -year floodplain of the Big Quilcene River as well as a high risk channel migration zone. In addition, various sensitive areas comprised of wetland areas can be found on the site. Improvements on the site include an older manufactured home that is in poor condition, considered to be uninhabitable and is of no contributory value. Other site improvements include a gravel driveway, some landscaping, wood fencing and various shed structures. Legal Description A Title Report for the subject property, which includes a legal description, was provided for the appraiser's review and can be found in the addenda to this report. The identification, location, and size of the subject property are also based on information available from Jefferson County Assessor's reco rd s. Larger Parcel The subject consists of a single tax lot that is under the ownership of Francis Henderson. The ownership has no control over adjacent or nearby properties for which combined use with the subject identified in this report would represent a higher and better use. For these reasons, the larger parcel does not extend beyond the subject boundaries. Use of Real Estate as of the Effective Date of Value As of the effective date of the appraisal, the subject consisted of a recreational lot that included an uninhabitable mobile home. Use of Real Estate as of the Date of this Report Same as above. VALBRDGE PRDPERrY ADVISJR51 Valbridge Property Advisors I Allen Brackett 9iedd Page 1 Va I bridge PROPERTY ADVISORS ~I* Ownership and Sales History According to the Title report provided, as well as assessor's records, title to the subject property is vested in Francis Henderson. The current ownership acquired the subject property in December of 1993 for a reported price of $6,000. As such, there have been no transfers of ownership in the subject property in the last ten years. The subject property was recently listed for sale over a period from February of 2013 to October of 2014. The property was listed at an asking price of $49,500. It is noted that information associated with this listing indicated a site size at 40,000 square feet. However, discussions with the listing broker, Mr. Wade Johnston, provided no information, or basis for this size. For this appraisal, reliance is placed on information available from the Jefferson County Assessor, as well as a scaling of aerial mapping, which indicates a site size for the subject at 29,088 square feet. Real Property Rights Appraised I have appraised the Fee Simple interest in the subject property. Type and Definition of Value The purpose of this appraisal is to estimate the market value of the subject property. For purposes of Federal Land Acquisitions, the only acceptable definition of Market value is as follows: "the amount in cash, or on 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." (Source: Uniform Appraisal Standards for Federal Land Acquisitions, page 13, Section A9.) Valuation Scenarios and Effective Dates of Value Per the scope of the assignment I developed opinions of value for the subject property under the following scenarios for the identified property right interests as of the corresponding effective dates of value: Current As-Is Fee Simple 5 -14 -2015 I completed a formal appraisal inspection of the subject property on 05 -14 -2015. Date of Report The date of this report is 05 -21 -2015, which is the same as the date of the letter of transmittal. List of Items Requested but Not Provided None VALBRDGE PRDPERTY ADV SDF;S I Valbridge Property Advisors I Allen Brackett Shedd Page 2 Va I bridge �•'; PROPERTY ADVISORS ~I* Assumptions and Conditions of the Appraisal If there are extraordinary assumptions and /or hypothetical conditions used in this report, the use of these extraordinary assumptions and hypothetical conditions might have affected the assignment results. Extraordinary Assumptions • No information regarding the presence or absence of hazardous waste on the subject property was provided. This appraisal assumes the absence of any and all hazardous waste on the subject property. If hazardous waste is found to be present on the subject property we reserve the right to change the valuation contained in this report Hypothetical Conditions None Summary of Appraisal Problem The purpose of the report is to provide an opinion of the market value of the subject property in its current condition to aid Jefferson County Water Quality and Environmental Health in decision making for a proposed acquisition of the property in its entirety. The subject consists of a 29,088 - square -foot site that is completely within the 100 -year floodplain and encumbered by various sensitive areas. The existing improvements on the property, which include a mobile home and various shed structures are in a state of disrepair. In regards to the mobile home, it is considered to be uninhabitable. As a result, the various improvements are concluded to be of no contributory value. As will be discussed subsequently in this report, the subject property's physical characteristics limits its use to recreational purposes. As such, a search for similar recreational sites in the subject area was performed with the resulting sales compared to the subject to arrive at an opinion of value. VALBRDGE PRDPERTY ADV SDF;S I Valbridge Property Advisors I Allen Brackett 9iedd Page 3 Va I bridge �•'; PROPERTY ADVISORS Scope of Work WE • a • 1 ., The scope of work includes all steps taken in the development of the appraisal. These include 1) the extent to which the subject property is identified, 2) the extent to which the subject property is inspected, 3) the type and extent of data researched, 4) the type and extent of analysis applied, and the type of appraisal report prepared. These items are discussed as follows: Extent to Which the Property Was Identified Legal Characteristics A title report for the subject property was provided and can be found in the addenda to this report. A legal description for the subject property can be found in the title report. Accordingly, the subject was legally identified by its legal description, as well as its APN number, and plat map. The subject was also identified via public records. Economic Characteristics Economic characteristics of the subject property were identified via Bureau of Labor Statistics, U.S. Census, American FactFinder, Washington State Department of Finance, Site to Do Business, as well as a comparison to properties with similar locational and physical characteristics. Physical Characteristics The subject was physically identified via a formal inspection by the appraiser. I have relied on information provided by the property owner, as well as my inspection and public records for the description of the existing improvements. Extent to Which the Property Was Inspected A formal inspection of the property was performed on May 14, 2015. The owner's representative, Mr. Wade Johnston declined the opportunity of a joint inspection, but was interviewed by phone Type and Extent of Data Researched I researched and analyzed: 1) market area data, 2) property- specific market data, 3) zoning and land -use data, and 4) current data on comparable listings, sales, and rentals in the competitive market area. I also interviewed people familiar with the subject market /property type, Personal Property /FF &E Unless otherwise stated in the report, all furniture, fixtures, and equipment (FF &E) or any other personal property has been excluded from our analysis. Type and Extent of Analysis Applied The purpose of this appraisal is to aid in decision making associated with a proposed acquisition of the subject property in its entirety. The existing improvements on the subject are concluded to be of no contributory value as a result of their poor condition. Accordingly, the Sales Comparison Approach is the primary method in arriving at the underlying site value. In this regard, data was collected on comparable sales of land, then compared to the subject. Appraisal Report Type This is an Appraisal Report as defined by the Uniform Standards of Professional Appraisal Practice under Standards Rule 2 -2a. Please see the Scope of Work above for a description of the level of research completed. VALBRDGE PRDPERrY ADVISJR51 Valbridge Property Advisors I Allen Brackett 9iedd Page 4 Valbridge PROPERTY ADVISORS Appraisal Conformity I have developed my analyses, opinions, and conclusions and prepared this report in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation; the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; the Uniform Appraisal Standards for Federal Land Acquisitions; Manual 3 for RCO Funding, and the requirements of the client as I understand them. VALBRDGE PROPERTY ADMSDRS I Valbridge Property Advisors I Allen Brackett 9iedd Page 5 Valbridge PROPERTY ADVISORS Area Description NIEIGHBORHOOD MAP HD FOWLER PROPERTY AREA DESCRIPTION Medium nabob ❑etwled D,hah Bry N'[i i-J Area Preserve f EastQuilcene C Ou e R».c p1 mp�c K'^Y Lo 13 The subject property is located in the southeastern portion of Jefferson County, Washington. Jefferson County is situated northwest of the Seattle area on the west side of Puget Sound. The northern boundary is the Strait of Juan de Fuca, which leads to the Washington coast further west. Hood Canal borders the county on the east side. Access to the county can be obtained from the south via SR-101, but a significant portion of commuter traffic utilizes the Hood Canal floating bridge, which connects Jefferson County with Kitsap County to the east. The county contains 1,809 square miles of land, which ranks 18th among Washington counties. The Olympic Mountain range and Olympic National Park and Forest comprise the western three quarters of Jefferson County's land area. Additional land is undeveloped timber lands. Population centers are generally limited to the edges of the county. Port Townsend, a historic city with tourist attractions, shopping, and water frontage on the Admiralty Inlet portion of the Strait of Juan de Fuca, is the only major employment center in this county; however, Port Angeles (Oallam County) and Bremerton (Kitsap County) lie within an hour's travel time by car. Seattle is roughly two hours travel time from the Port Townsend area via the Hood Canal Bridge and a ferry from Kingston (Kitsap County) to Edmonds (Snohomish County). While Seattle is the business and cultural hub of the Northwest, Jefferson County's economy and livelihood has been traditionally tied to timber products and is dependent on the Seattle Metropolitan area to support its tourism and recreation industry. Highway traffic can access Jefferson County via several routes. The Olympic Loop Highway (US 101) travels north and south along either of Jefferson's shores and connects with Port Angeles in the north and with Shelton and Olympia in the south. State Route 104 traverses the northeastern corner of the county and crosses Hood Canal to connect with the Kitsap Peninsula. Kitsap highways provide convenient access to Bremerton and to eastbound ferries. VALBRDGE PRDPERTYADVI9JRSI Valbridge Property Advisors I Allen Brackett Shedd Page 6 Va I bridge �•'; PROPERTY ADVISORS HD FOWLER PROPERTY AREA DESCRIPTION The area of Jefferson County east of Olympic National Park is largely rural in nature. The Victorian Seaport City of Port Townsend in eastern Jefferson County is the only incorporated city. Other areas with higher levels of development consist of the Tri -Area, which includes Irondale, Chimacum, and Port Hadlock, as well as Port Ludlow. Much of the rest of eastern Jefferson County is farmland, forestland, and /or undeveloped. The subject is located in the immediate vicinity of Quilcene. This community is located along SR -101 and to the west of Quilcene Bay. A small concentration of commercial uses can be found within Quilcene along SR-101 and proximate to its intersection with Center Road. Older single - family residential development can also be found within one to two blocks off of SR -101. Outside of Quilcene, uses quickly transition to rural residential, agricultural and resource- related uses. Immediate Neighborhood The subject is located just south of the main commercial area within Quilcene. As such, commercial services can be found just north of the subject along either side of SR -101. Some older single - family uses can be found between the subject and SR-101. The subject's more immediate area is also comprised of a mix of older single - family residence and undeveloped vacant land impacted by sensitive areas and the floodplain of Big Quilcene Rver, the latter of which is located just south of the subject. VALBRDGE PROPERTY ADVI9JRS 1 Valbridge Property Advisors I Allen Brackett Shedd Page 7 Va I bridge �•'; PROPERTY ADVISORS Site Description .:1 N S:J •\ The following description is based on the appraisal inspection of the subject, public records, and information provided by the client. PLAT MAP �I 991200402 9¢112U[i701 W20DW3 991A4014 10224/018 70"17 _ io 991200408 99120046q I 102241619 }2242012 General Data Assessor Parcel Number Location: Site Areas Gross Land Area Site Characteristics Shape: Topography: 991206101 941200302 I 99120o.106 997200304 W120=3 Ap1L200201 991204202 99t2oa1 99120 620 2 991200301 195 Rodgers Street 29,088 0.66777 The subject's overall shape is rectangular. Based on assessor's mapping, the northern and southern boundaries each have a length of roughly 175 feet. The eastern and western boundaries each have a length of approximately 165 feet, with the entire western boundary comprised of frontage on Rodgers Street. The subject is generally level and at grade with its fronting street VALBRDGE PROPERTY ADVISDRS I Valbridge Property Advisors I Allen Brackett Shedd Page 8 Va I bridge �•'; PROPERTY ADVISORS `.1 N S:J •\ Mineral Deposits: A review of the property with respect to potential mineral deposits was performed. In this regard, no information identifying the property as having commercially valuable mineral deposits has been provided. Surrounding uses do not appear to be typically used for such purposes. In the absence of studies to the contrary, however, I reserve the right to revise the conclusion of value, in the event studies are produced affirming commercially valuable mineral deposits. Timber: Based on a review of the subject property, there does not appear to be any significant merchantable timber on the site. Sensitive Areas: As of the date of this report, no detailed analysis of the subject with respect to sensitive areas has been performed. As such, reliance is placed on mapping available from Jefferson County and a physical inspection of the subject. With this in mind, the central and southeastern portions of the property consist of low -lying area that appears to include wetlands. Furthermore, the entire site is within the 100 -year floodplain and is identified as being within a high risk area for channel migration Street Frontaqe / Access Street Name: Rodgers Street Street Type: Lower volume residential street Comments: Access to the subject property is provided from the westerly abutting Rodgers Road. This road extends south from its intersection with SR-101 to the north of the subject and dead ends just south of the subject's southern boundary. Site Improvements Off-Ste Improvements: The westerly abutting Rodgers Road is a lower volume residential street through the area. It is asphalt paved with one lane in each direction. Utilities: Power, water and telephone are available to the site with an onsite septic systems required. On -Site Improvements: The property is currently improved with an older manufactured home that is in poor condition and considered to be uninhabitable. Other site improvements include a gravel driveway, some landscaping, wood fencing and various shed structures. It is noted that the fencing and shed structures are also in poor condition. VALBRDGE PRDPERTY ADVI9JR51 Valbridge Property Advisors I Allen Brackett Shedd Page 9 Va I bridge �•'; PROPERTY ADVISORS Flood Zone Data Rood Map Panel /Number: Rood Map Date: Rood Zone: Other Site Conditions Soils: Environmental Issues: .:1 ;O •\ 530069055B A2, 100 -year flood plain. The entire subject property is within 100 -year flood plain with base flood elevations and flood hazard factors determined A soils report for the subject parcel was not provided. It is assumed that no adverse soil conditions exist that would negate development of the site, as if vacant. If this is a concern, we recommend a soil report be obtained from a professional. I have not been provided with, and am unaware of, any environmental assessment reports such as a Phase I Environmental Report, disclosing the presence, or suspected presence, of hazardous materials. I have appraised the subject property free of toxic and /or hazardous materials and groundwater contamination, subject to future information to the contrary that may be revealed by an environmental assessment report. If any reports, such as a Phase I or Phase 11 Environmental Site Assessment Report, were to conclude that further toxic remediation or abatement of hazardous materials is required for the subject property, this would represent an appropriate deduction to the valuation and a revision of the appraisal will be required. Easements/ Encroachments: A title report for the subject property can be found in the Addenda to this report. Based on this information, there do not appear to be any easements or other encumbrances that would have a significant impact on the use, utility and thus value of the subject property. I did not survey the subject site nor am I qualified to do so. The presence of site encroachments and their eventual resolution have the potential to have a material effect on the market value of any property. The appraisal of the subject property assumes that no encroachments exist that would affect the value and /or marketability of the subject property. If this is of concern to the reader of this report, it is recommended that the appropriate professionals be consulted to make such a determination. Adjacent Land Uses North: Rural residential South: Rural residential East: Rural residential VALBRDGE PRDPERTY ADVI9JR51 Valbridge Property Advisors I Allen Brackett Shedd Page 10 Valbridge PROPERTY ADVISORS West: Site Ratings Access: Visibility: Expo su re: Overall Site: Zoning Designation Rodgers Street and vacant rural residential land Average Average Average Average 1110 l —zale► Zoning Jurisdiction: Jefferson County Zoning Code /Category: RR 1:5, Rural Residential Zoning Comments: The subject property is currently zoned RR 1:5, Rural Residential 1:5, by Jefferson County. This designation is designed to allow for continued residential development in areas of Jefferson County consisting of relatively high density pre - existing patterns of development, along the county s coastal areas, and within areas within or adjacent to rural centers and rural crossroads. In addition, this district seeks to support and foster Jefferson County's existing rural residential landscape and character by restricting new land divisions to a base density of one unit per five acres. Uses permitted outright include single detached dwellings, bed and breakfast residences, mineral extraction, parks and playfields, recreational facilities, streets, and trails. With respect to residential development, one single family dwelling per 5 acres of site area is permitted. A road setback of 20 to 35 feet is required depending on the classification of the road with side and rear yard setbacks indicated at 5 feet. The maximum building height is 35 feet with impervious surface limited to 25% of the site area. Additional development conditions result from the subject's location completely within a high risk channel migration zone (CMZ) as well as within the 100 -year floodplain. The CMZ is considered a geologically hazardous area. Vegetation removal is not permitted on areas within a high risk CMZ. Furthermore, property's location within the high risk CMZ and floodplain, eliminate its ability to support residential development. Analysis /Comments on Site The subject consists of a rectangular- shaped site that contains 29,088 square feet. This is an interior lot located along a lower- volume side street. For the most part, the property is generally level and covered with a mix of trees and other vegetation. Sensitive areas consisting of wetlands can be found VALBRDGEPRDPERTYADVISJRSI Valbridge Property Advisors I Allen Brackett 9iedd Page 11 Va I bridge PROPERTY ADVISORS WIN "l—zalek in the central portion of the site. Furthermore, the entire site is within a high risk channel migration zone, as well as the 100 -year flood plain of the Big Quilcene River. I am unaware of and assume that the property does not have any on site contamination, clouds on title; or any other factor that would affect the utility, marketability and /or value of the subject property. Overall, the site is well suited for any number of uses permitted by its zoning designation. VALBRDGE PROPERTY ADVISDRS I Valbridge Property Advisors I Allen Brackett Shedd Page 12 Va I bridge HBT DEFMN PROPERTY 1 I M PROVEM ET TS DESCWPTION PROPERTY ADVISORS Improvements Description Improvements on the site include an older manufactured home that is in poor condition, considered to be uninhabitable. Other site improvements include a gravel driveway, some landscaping, wood fencing and various shed structures with the fencing and shed structures also in poor condition. As a result of their condition, the existing improvements on the site are concluded to be of no contributory value. VALBRDGE PROPERTY ADMSDRS I Valbridge Property Advisors I Allen Brackett Shedd Page 13 , N' Va I bridge PROPERTY ADVISORS Subiect Photos HENDERSON PROPERTY SUB -ECT PHOTOS Subject driveway facing east from Rodgers Street Facing southeast from near northwest corner of site VALBRDGE PROPERTY ADVISORS I Valbridge Property Advisors I Allen Brackett Shedd Page 14 Va I bridge �•'; PROPERTY ADVISORS HENDERSON PROPERTY SUB -ECT PHOTOS Facing south along subject's western boundary on Rodgers Street Southern boundary of subject facing east from Rodgers Street VALBRDGE PROPERTY ADVISDRSI Valbridge Property Advisors I Allen Brackett Shedd Page 15 Va I bridge �•'; PROPERTY ADVISORS HENDERSON PROPERTY SUB -ECT PHOTOS Facing north along subject's western boundary on Rodgers Street Subject property facing northeast from near southwest corner of site VALBRDGE PROPERTY ADVISDRSI Valbridge Property Advisors I Allen Brackett Shedd Page 16 Va I bridge �•'; PROPERTY ADVISORS HENDERSON PROPERTY SUB -ECT PHOTOS Subject's manufactured home Typical shed structure VALBRDGE PROPERTY ADVISDRSI Valbridge Property Advisors I Allen Brackett Shedd Page 17 Va I bridge �•'; PROPERTY ADVISORS HENDER90N PROPERTY SUB -ECT PHOTOS Subject facing northeast from western portion of site Central portion of subject facing south from near northern boundary VALBRDGEPRDPERTYADVISDRSI Valbridge Property Advisors I Allen Brackett Shedd Page 18 Valbridge PROPERTY ADVISORS HENDER90N PROPERTY SUB -ECT PHOTOS &Abject property facing southeast from northern boundary Facing southeast from near northwest corner of site VALBRDGE PRDPERTY ADMSDF;S I Valbridge Property Advisors I Allen Brackett chedd Page 19 Va i bridge HEIT DEFt9DN PROPERTY PROPERTY ADVISORS A-S& B: El 1T & TAX DATA Assessment and Tax Data Assessed Values and Property Taxes The subject's assessed values, applicable tax rates and total taxes, including direct assessments, are shown in the following table: Ad Valorem Tax Schedule Parcel Number: 991200301 Land: $25,300 Improvements: $5,500 Total: $30,800 Per Square Foot: $1.06 Assessment Ratios Land: 100.00% Improvements: 100.00% Assessed Value $20 Land: $25,300 Improvements: $5,500 Total: $30,800 Tax Rate $9.383700 Millage Rate per $1,000 Actual Tax Expense 2015 Tax Amount: $289 Special Assessments: $20 Total Taxes: $309 VALBRDGE PRDPERTY ADVISORS I Valbridge Property Advisors I Allen Brackett Siedd Page 20 Va I bridge HENDERSON PROPERTY PROPERTY ApVI50R5 HIGHEST & BEST USE Highest and Best Use The Highest and Best Use of a property is the use that is physically possible, legally permissible, and financially feasible which results in the highest value. An opinion of the highest and best use results from consideration of the criteria noted above under the market conditions or likely conditions as of the effective date of value. Implied in the definition is that the determination of highest and best use results from the judgment and analytical skills of the appraiser; that is, that the use determined from analysis represents an opinion, not necessarily a fact to be found. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. Analysis of Highest and Best Use as if Vacant In determining the highest and best use of the property as though vacant, we examine the potential for: 1) near term development, 2) a subdivision of the site, 3) an assemblage of the site with other land, or 4) holding the land as an investment. Physically Possible The subject consists of a 29,088 -squre -foot site that is generally level. Access, power and water are available from the westerly abutting Rodgers Street. While level and of sufficient size and shape, the subject's various sensitive areas, including wetlands, high risk channel migration zone, and floodplain significantly limit its development potential. Legally Permissible As discussed in the Zoning section of this report, the property is zoned Rural Residential 1:5 (RR 1:5). As the name implies, this is a rural residential zoning designation allowing for development of one single - family residence per five acres of site area. In the case of the subject, its site size at 29,088 square feet falls below the minimum lot size. However, as the subject represents a legal existing tax lot, it could theoretically support one single - family homsite. While the subject could theoretically be developed with one homesite, additional legal constraints are associated with the property's location proximate to the Big Quilcene River. More specifically, the subject property is identified as being completely within a high risk channel migration zone, as well as completely within the 100 -year floodplain. As a result of these two factors, residential development on the subject property is prohibited. Financially Feasible The zoning designation and physical characteristics limit the subject's development potential as any permanent residential structure allowed by the property's underlying zoning is prohibited due to the property's location within a high risk channel migration zone and 100 -year flood plain associated with the Big Quilcene River. As such, the only remaining reasonably probable use for the property is for recreation or open space/ assemblage. Such a use mirrors the character of the immediate area and takes advantage of the subject's location in close proximity to the Big Quilcene River and Quilcene Bay. Maximally Productive Based on the subject's location, as well as its physical and legal constraints, potential uses are limited to recreational or open space/ assemblage. With this in mind, a review of various market data, including that which will be presented subsequently in this report, indicates continued demand for VALBRDGE PRDPERTY ADVISDFS I Valbridge Property Advisors I Allen Brackett Shedd Page 21 Vaibridge PROPERTY ADVISORS HENDERSON PROPERTY HIGHEST & BEST USE recreational and similar open space sites in the subject's market area. As such, the maximally productive use is for recreational and /or open space use. Conclusion of Highest and Best Use as though Vacant The highest and best use of the subject is for recreational and /or open space use. VALBRDGE PRDPERTY ADVISJRS I Valbridge Property Advisors I Allen Brackett Siedd Page 22 Va I bridge HBNDER90N PROPERTY APPRAIS4L METHODOLOGY PROPERTY ADVISORS Appraisal Methodolo Three Approaches to Value There are three traditional approaches typically available to develop indications of real property value: the cost, sales comparison, and income capitalization approaches. Cost Approach The Cost Approach is based upon the principle of substitution, which states that a prudent purchaser would not pay more for a property than the amount required to purchase a similar site and construct similar improvements without undue delay, producing a property of equal desirability and utility. This approach is particularly applicable when the improvements being appraised are relatively new or proposed, or when the improvements are so specialized that there is little or no sales data from comparable properties. Sales Comparison Approach The Sales Comparison Approach involves the direct comparison of sales and listings of similar properties, adjusting for differences between the subject property and the comparable properties. This method can be useful for valuing general purpose properties or vacant land. For improved properties, it is particularly applicable when there is an active sales market for the property type being appraised — either by owner -users or investors. Income Capitalization Approach The Income Capitalization Approach is based on the principle of anticipation, or the assumption that value is created by the expectation of benefits to be derived in the future, such as expected future income flows including the reversion, or future re -sale of the property appraised. Its premise is that a prudent investor will pay no more for the property than he or she would for another investment of similar risk and cash flow characteristics. The Income Capitalization Approach is widely used and relied upon in appraising income- producing properties, especially those for which there is an active investment sales market. Subject Valuation As the subject improvements are of no contributory value with the property essentially comprised of vacant land, the only applicable approach to value for the subject is the Sales Comparison Approach. VALBRDGEPR0PERTYADVI90RSI Valb ridge Property Advisors I Allen Brackett Siedd Page 23 Va I bridge �•'; PROPERTY ADVISORS Land Valuation Methodology HENDERSON PROPERTY LAND VALUATION Land is most often valued using the Sales Comparison Approach. This approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same utility. In the sales comparison approach, the opinion of market value is based on closed sales, listings, and pending sales of properties similar to the subject property, using the most relevant units of comparison. The comparative analysis focuses on the difference between the comparable sales and the subject property using all appropriate elements of comparison. Unit of Comparison The unit of comparison depends on land use economics and how buyers and sellers use the property. The unit of comparison in this analysis is price per square foot. Dements of Comparison Bements of comparison are the characteristics or attributes of properties and transactions that cause the prices of real estate to vary. The main elements of comparison that are considered in sales comparison analysis are as follows: (1) real property rights conveyed, (2) financing terms, (3) conditions of sale, (4) expenditures made immediately after purchase, (5) market conditions, (6) location and (7) physical characteristics. Comparable Sales Data A search of data sources and public records, a field survey, interviews with knowledgeable real estate professionals in the area, and a review of our internal database were conducted to obtain and verify comparable sales and listings of vacant land properties. I used four sales in the analysis, these representing the sales judged to be the most comparable in developing an indication of the market value of the subject property. The following table summarizes each of the land sale comparables and is followed by a map displaying the location of each comparable in relation to the subject. Summary sheets detailing each comparable follow the location map. VALBRDGEPROPERTYADVISOFSI Valb ridge Property Advisors I Allen Brackett 9iedd Page 24 Valbridge HENDERSON PROPERTY PROPERTY ADVISORS LAND VALUATION Land Sales Summary 1 12/30/2014 0.480 66 Snow Creek Way RR 1:5 $12,000 $25,001 2 10/13/2014 0.390 111 Herbert Street RVC $23,000 $58,976 3 8/20/2014 0.720 29xx E. Quilcene Road RR 1:5 $29,000 $40,278 4 5/20/2014 0.539 131 Trailwood Drive RR 1:5 $23,000 $42,680 COMPARABLE SALES MAP Chirrauurri Discovery Bay �p Land Sale No. i Land Sale No. Z 1 Subject ProEat=rty I 0 csosby Part Ludlow I lansv 12 Land Sale No. 3� ibob Part Gam'blt• dale T►acytolti j+ r � VALBRDGEPROPERTYADVISOFS1 Valbridge Property Advisors I Allen Brackett 9iedd Page 25 Valbridge PROPERTY ADVISORS LAND COMPARABLE 1 Aerial Property Identification 00 M HENDERSON PROPERTY LAND VALUATION Property / Sale I D 44237/16772 Property Type Land Address 66 Snow Creek Way City, State Zip Quilcene, Washington 98376 County Jefferson Latitude/ Longitude 47.940681/- 122.886910 Tax ID 995400060 Transaction Data RR 1:5 Sale Date 12 -30 -2014 Recording Number 122484 Grantor GP Middleton Trust Sale Price $12,000 Grantee James and Shelly Marlow Deed Type Warranty Deed Property Rights Fee Simple Property Description Gross Acres 0.47998 Topography Mostly level Present Use Vacant recreation site Utilities Power Highest and Best Recreation site Zoning Jurisdiction Jefferson County Use Zoning Code RR 1:5 Street Access Direct Zoning Description Rural Residential Shape Irregular Indicators $/ Gross Acre $25,001 $/ Gross SF $.57 VALBRDGE PRO PERTYADVISOF SI Valb ridge Property Advisors I Allen Brackett Siedd Page 26 Valbridge PROPERTY ADVISORS Verification Confirmed With Confirmed By Confirmation Date Remarks Carol Wise, broker G. Goodman 05 -18 -2015 HENDERSON PROPERTY LAND VALUATION The 20,908- square -foot site is located just west of US-101 on the south side of mow Creek Way. The irregular- shaped site has a rolling topography and is covered with trees and other vegetation. The western boundary is adjacent to mow Creek with the various physical and legal constraints on the property limiting its use to recreational. VALBRDGEPROPERTYADVISOFSI Valb ridge Property Advisors I Allen Brackett 9iedd Page 27 Valbridge PROPERTY ADVISORS LAND COMPARABLE 2 .493120110' 1ws.i , D!IDS 93720'101 1 r Property Identification Property /Sale ID 44238/16773 Property Type Address City, State Zip County Latitude / Longitude Tax ID Transaction Data awl k�rber} Sk 9:iI2tl11t159 � 9372ti1dkiil �i7201055 — 937201063 9 W RaLp $t ti?; Kw'i f iFold Ch,.mwh Rd Aerial Land 111 Herbert Street Quilcene, Washington 98376 Jefferson 47.823101/-122.877977 937201057 HENDER90N PROPERTY LAND VALUATION Sale Date 10 -13 -2014 Property Rights Fee Simple Grantor Secretary of Housing and Recording Number 122063 Urban Development Sale Price $23,000 Grantee Greenovation LLC Deed Type Warranty Deed Property Description Gross Acres 0.38999 Topography Level Present Use Single- family residential Utilities Power, water and septic Highest and Best Single- family residential Zoning Jurisdiction Jefferson County Use Zoning Code RVC Street Access Direct Zoning Description Rural Village Center Shape Rectangular Indicators $/ Gross Acre $58,976 $/ Gross SF $1.35 VALBRDGEPR0PERFYADVI90RSI Valb ridge Property Advisors I Allen Brackett Siedd Page 28 Va I bridge PROPERTY ADVISORS Verification Confirmed With Crystal Schlanbusch, broker Confirmed By G. Goodman Confirmation Date 05 -18 -2015 Remarks HENDERSON PROPERTY LAND VALUATION The property is located on the southeast corner of the intersection between Herbert Street and Washington Street. The rectangular- shaped corner lot is level and cleared. At the time of the purchase, the property was improved with an older single - family residence that was in poor condition and considered to be of no contributory value. The improvements were, however, served by an onsite well and septic system. Subsequent to the purchase, the buyer has completed a significant renovation of the structure. While the seller was a lender that had previously acquired the property through foreclosure, discussions with the broker involved indicate that the property received adequate exposure to the market with the sales price being representative of market value. VALBRDGEPROPERTYADVISOFSI Valb ridge Property Advisors I Allen Brackett Siedd Page 29 Va I bridge �•'; PROPERTY ADVISORS LAND COMPARABLE 3 Aerial Property Identification Property / Sale ID 44241/16776 Property Type Land Address 29xx E. Quilcene Road City, State Zip Quilcene, Washington 98376 County Jefferson Latitude/ Longitude 47.811351/- 122.845968 Tax ID 701304003 Transaction Data Sale Date Grantor Grantee Property Description Gross Acres Present Use Highest and Best Use Street Access Shape Indicators 08 -20 -2014 Messiah Evangelical Lutheran Church Jan Ozolitis 0.72000 Vacant recrecation site Recreation site Direct Rectangular Property Rights Recording Number Sale Price Deed Type Topography Utilities Zoning Jurisdiction Zoning Code Zoning Description HENDERSON PROPERTY LAND VALUATION Fee Simple 121771 $29,000 Warranty Deed Sloped Power Jefferson County RR 1:5 Rural residential $/ Gross Acre $40,278 $/ Gross SF $.92 VALBRDGE PRO PERTYADVI9DRSI Valb ridge Property Advisors I Allen Brackett 9iedd Page 30 Valbridge PROPERTY ADVISORS Verification Confirmed With Confirmed By Confirmation Date Remarks Jim Munn, broker G. Goodman 05 -18 -2015 HENDERSON PROPERTY LAND VALUATION This 31,363- square -foot site is located on the west side of E Quilcene Road, south of its intersection with Mountain View Road. The rectangular- shaped site has a downward slope to the west with the western boundary of the site comprised of 100 feet of frontage on Quilcene Bay. As a result of the sloping topography, there is a limited amount of useable area. In this regard, there is insufficient useable area to support a well and septic system. Nonetheless, the property includes sufficient area and a waterfront amenity for recreational purposes. VALBRDGE PROPERTY ADVISORS I Valbridge Property Advisors I Allen Brackett Siedd Page 31 Va I bridge �•'; PROPERTY ADVISORS M;01r; LAND COMPARABLE 4 land 4 aerial Property Identification HENDER90N PROPERTY LAND VALUATION Property /Sale ID 44243/16778 Property Type Land Address 131 Trailwood Drive City, State Zip Brinnon, Washington 98320 County Jefferson Latitude/ Longitude 47.646194/- 122.941198 Tax ID 981600803 and 981600804 Transaction Data Sale Date 05 -20 -2014 Recording Number 121219 Grantor Patrick CYork Sale Price $23,000 Grantee Jeremy and Tracy Nolan Deed Type Warranty Deed Property Rights Fee Simple Property Description Gross Acres 0.53889 Topography Sloped Present Use Vacant recreation site Utilities Power and water Highest and Best Recreation site Zoning Jurisdiction Jefferson County Use Zoning Code RR 1:5 Street Access Direct Zoning Description Rural residential Shape Rectangular Indicators $/ Gross Acre $42,680 $/ Gross SF VALBRDGEPR0PERTYADVI90MI Valb ridge Property Advisors I Allen Brackett Shedd $.98 Page 32 Va I bridge �•'; PROPERTY ADVISORS Verification Confirmed With Confirmed By Confirmation Date Remarks Doug Hixson, broker G. Goodman 05 -18 -2015 HENDERSON PROPERTY LAND VALUATION The property consists of two separate tax lots located on the southeast corner of the intersection between Trailwood Drive and Canal View Street. The two lots produce an overall site that is mostly rectangular in shape and contains 23,474 square feet. The site has a sloping topography and is generally covered with trees. As a result of the site's topography, its use is limited to recreational purposes. In this regard, the property included an RV power hookup on the level area at the northwest corner of the site at the time of the purchase. The site also has water provided by a community well. The site's location within the Hood Canal Tracts allows for access to the community areas on Hood Canal and the Duckabush River. VALBRDGEPROPERTYADVISOFSI Valb ridge Property Advisors I Allen Brackett Siedd Page 33 Va I bridge �•'; PROPERTY ADVISORS HENDERSON PROPERTY LAND VALUATION Land Sales Comparison Analysis I analyzed the sales and made adjustments for differences in the elements of comparison previously listed. The comparable sales are adjusted to the subject: if the comparable sale was superior to the subject, I applied a negative adjustment to the comparable sale. A positive adjustment to the comparable property was applied if it was inferior to the subject. A summary of the elements of comparison follows. Transaction Adjustments These items are applied prior to the application of property adjustments. Transaction adjustments include: 1. Real Property Rights Conveyed 2. Financing Terms 3. Conditions of Sale 4. Expenditures Made Immediately After Purchase In terms of the rights conveyed all of the transactions represent the transfer of 100% fee simple ownerships, and thus no adjustments for this factor are necessary. The financing adjustments are necessary for sales that were financed with atypical terms. This includes seller financing with non - market interest rates or abnormal down payment levels; the theory being that a comparable figure for use in appraisal analysis should reflect a cash- equivalent price, or a price that is commensurate with existing market terms at the time of sale. In this regard, none of the sales involved atypical financing and thus no adjustments are necessary here either. Conditions of sales reflect adjustments for sales, which occurred under unusual and specific conditions. In this case, all of the sales represent straight - forward, arm's length transactions in which there was no unusual pressure on either the buyer or seller that affected the sales price. As such, none of the sales require an adjustment for this factor. There were no expenditures made, or anticipated, subsequent to any of the respective transactions. Market Conditions Adjustment Market conditions change over time as a result of inflation, deflation, fluctuations in supply and demand and other factors. Changing market conditions creates the need for adjustments to sale comparables that represent transactions during periods of dissimilar market conditions. All four comparables represent relatively recent transaction having occurred in the last 12 months. A review of market activity reveals no significant change in values for sites utilized for recreation and /or open space uses since the date of the oldest sale. Accordingly, no significant adjustment to any of the sales is necessary for this factor. Property Adjustments Property adjustments are usually expressed quantitatively as percentages that reflect the increase or decrease in value attributable to the various characteristics of the property. In some instances, VALBRDGEPROPERTYADVISOFSI Valb ridge Property Advisors I Allen Brackett 9iedd Page 34 ' Va I bridge PROPERTY ADVISORS HENDERSON PROPERTY LAND VALUATION however, qualitative adjustments are used. These adjustments are based on locational and physical characteristics and are applied after the application of transaction and market conditions adjustments. The adjustments are discussed as follows: Location All four sales are located in relatively close proximity to the subject and are considered to be similar overall in terms of their location. As such, none of the sales require a significant adjustment for this item. Sze The sales generally bracket the size of the subject. It is noted, however, that adjustments remain appropriate to account for the inverse relationship between site size and price per square foot value generally encountered. With this in mind, a downward adjustment on a price per square foot basis is applied to Sale 2 to account for its significantly smaller size. As the remaining comparables are more similar to the subject in this regard, no significant adjustment is necessary. Access The subject enjoys direct access from the westerly abutting Rodgers Road. In comparison, Sales 3 and 4 are similar in that each has access from one abutting paved roadway. Sale 2 is superior in terms of access due to its corner location resulting in the consideration of a downward adjustment. Conversely, an upward adjustment is applied to Sale 1 are a result of its access off a one -lane gravel ro ad. Utilities Power and water are available to the subject from the westerly abutting Rodgers Road. As Sale 4 has similar access to power and water, no adjustment for this factor is necessary. Upward adjustments to Sales 1 and 3 are necessary to account for their lack of water at the time of their respective purchase. On the other hand, a downward adjustment is applied to Sale 2 to account for its access to power, water, and the onsite septic system in place at the time of its purchase. Topography The subject and Sale 2 are similar in that each are generally level. The three remaining comparables are inferior to the subject due to their rolling and /or sloping topography. As such, upward adjustments to Sales 1, 3, and 4 are warranted. Zoning Sales 1, 3, and 4 have the same zoning designation as the subject property. In the case of Sale 2, a downward adjustment is necessary to account for its superior zoning, which allows for a wider range and more intensive uses. Amenities The subject's location provides for good territorial views. The subject is also located close to the Big Quilcene River and Quilcene Bay. In comparison, Sale 2 is inferior in that it has limited amenity features on the site or nearby. Sales 1, 3, and 4 are superior to the subject in terms of amenities reflecting Sale 1's frontage on Snow Creek, Sale 3's frontage on Quilcene Bay and Sale 4's access to VALBRDGEPROPERTYADVISOFSI Valb ridge Property Advisors I Allen Brackett Siedd Page 35 Valbridge PROPERTY ADVISORS HENDERSON PROPERTY LAND VALUATION the community areas along Hood Canal and the Duckabush River. As such, downward adjustments to these three sales are applied. Summary of Adjustments Based on the preceding analysis, I have summarized adjustments to the sale comparables on the following adjustment grid. These adjustments are based on market research, best judgment, and experience in the appraisal of similar properties. VALBRDGEPROPERTYADVISOFSI Valb ridge Property Advisors I Allen Brackett 9iedd Page 36 Va I bridge �•'; PROPERTY ADVISORS HENDERSON PROPERTY LAND VALUATION Land Sales Adjustment Grid Subject 1 Sale # I 2 Sale # 2 3 Sale # 3 4 Sale # 4 Sale ID 16772 16773 16776 16778 Date of Value & Sale May 14, 2015 December -14 October -14 August -14 May -14 Unadjusted Sale Price $12,000 $23,000 $29,000 $23,000 Gross Square Feet 29,088 20,908 16,988 31,363 23,474 Unadjusted Sale Price per Gross Sq. Ft. $0.57 $1.35 $0.92 $0.98 Transactional Adjustments Utilities Power and Water Power Power, water and Power Property Rights Conveyed Fee ample Fee S'mple Fee 9mple Fee 9mple Fee S'mple Adjustment Adjustment Similar Similar Similar Similar Financing Terms Cash to Seller Cash to Seller Cash to lbIler Cash to filler Cash to Seller Adjustment Adjustment Similar Similar Similar Similar Conditions of Sale Arm's Length Arm's Length Arm's Length Arm's Length Arm's Length Adjustment Adjustment Similar Similar Similar Similar Expenditures after Sale None None None None None Adjustment Adjustment Inferior Inferior Inferior Inferior Market Conditions Adjustments Net Physical Adjustment Inferior Superior Similar Elapsed Time from Date of Value 0.37 years 0.58 years 0.73 years 0.98 years Adjusted Sale Price Similar Similar Similar Similar Physical Adjustments Location 195 Rodgers Street 66 9iow Creek Way 111 Herbert Street 29xx E Quilcene 131 Trailwood Drive VALBRDGE PROPERTY ADVISJRS I Valbridge Property Advisors I Allen Brackett Siedd Page 37 Road Adjustment Similar Similar Similar Similar Size 29,088,,4' 20,9081 16,988 sf 31,3631 23,474 sf Adjustment Similar Superior Similar Similar Access Average Fair to Average Good Average Average Adjustment Inferior Superior Similar Similar Utilities Power and Water Power Power, water and Power Power and water septic Adjustment Inferior Superior Inferior Similar Topography Level Mostly level Level 5oped 5oped Adjustment Inferior Similar Inferior Inferior Zoning RR 1:5 RR 1:5 RVC RR 1:5 RR 1:5 Adjustment Similar Superior Similar Similar Amenities Average Good Fair Good Good Adjustment Superior Inferior Superior Superior Net Physical Adjustment Inferior Superior Similar Similar VALBRDGE PROPERTY ADVISJRS I Valbridge Property Advisors I Allen Brackett Siedd Page 37 Va I bridge �•'; PROPERTY ADVISORS HENDERSON PROPERTY LAND VALUATION Conclusion From the market data available, four comparables in the competitive market area, which were most comparable to the subject, were selected. The unadjusted sale prices for the comparable sales ranged from $0.57 to $1.35, with an average of $0.96 and a median of $0.95 per square foot. After adjustment a value for the subject at the midpoint of the price per square foot range is indicated. More specifically, a value above the lower end of the range is supported when considering the subject's access and available utilities. Conversely, a value below the top of the range is appropriate when taking into account the subject's larger size and limited amount of private amenities. With consideration given to all of the foregoing factors, a value for the subject at $0.95 per square foot is concluded. As such, an overall value for the subject can be calculated as follows: Market Value Opinion (Rounded) 29,088 square feet x $0.95 per square foot = $28,000 While the prior analysis of the comparables considered a price per square foot unit of comparison, consideration is given to the relatively narrow range indicated by the comparables on an overall price basis. In this regard, the concluded overall value for the subject at $28,000 falls within the narrow range indicated by the comparables with the various adjustments to the sales providing additional support for such a conclusion. VALBRDGEPROPERTYADVISOFSI Valb ridge Property Advisors I Allen Brackett 9iedd Page 38 Va I bridge �•'; PROPERTY ADVISORS Reconciliation HENDERSON PROPERTY RECONCILIATION Summary of Value Indications Based on the foregoing analysis, the concluded market value for the subject property is summarized in the following table. Value Conclusions Value Type Market Value Property Fights Appraised Fee Simple Effective Date of Value May 14, 2015 Value Conclusion $28,000 Exposure Time This report is being prepared in conformance with both USPAP and the Uniform Standards for Federal Land Acquisitions. With few exceptions, these two bodies reflect similar appraisal standards. One such exception, however, is that the Federal Standards prohibit appraisers from linking value conclusions to specific marketing or exposure timeframes (UASFLA, 2000, Sections A 9 and D 1b): "the appraisers estimate of market value shall not be linked to a specific exposure time when conducting appraisals for federal land acquisition purposes under these standards," while USPAP requires that exposure times be linked ( USPAP, 2010 2011, Standard 1 2c): "when developing an opinion of market value, the appraiser must also develop an opinion of reasonable exposure time linked to the value opinion ". The resolution to this is a jurisdictional exception provided for under USPAP, permitting the exclusion of such linkage where Federal Standards are also in use. Thus, while reasonable exposure periods have been considered, no specific exposure period is concluded for purposes of this appraisal. VALBRDGEPRJPERTYADVISDRSI Valb ridge Property Advisors I Allen Brackett 9iedd Page 39 Valbridge PROPERTY ADVISORS HENDER90N PROPERTY GENffZALASSUMPTIONS& LIMITING CONDITIONS General Assumptions and Limiting Conditions This appraisal is subject to the following limiting conditions: The legal description — if furnished to us— is assumed to be correct. 2. No responsibility is assumed for legal matters, questions of survey or title, soil or subsoil conditions, engineering, availability or capacity of utilities, or other similar technical matters. The appraisal does not constitute a survey of the property appraised. All existing liens and encumbrances have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management unless otherwise noted. 3. Unless otherwise noted, the appraisal will value the property as though free of contamination. Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd will conduct no hazardous materials or contamination inspection of any kind. It is recommended that the client hire an expert if the presence of hazardous materials or contamination poses any concern. 4. The stamps and /or consideration placed on deeds used to indicate sales are in correct relationship to the actual dollar amount of the transaction. 5. Unless otherwise noted, it is assumed there are no encroachments, zoning violations or restrictions existing in the subject property. 6. The appraiser is not required to give testimony or attendance in court by reason of this appraisal, unless previous arrangements have been made. 7. Unless expressly specified in the engagement letter, the fee for this appraisal does not include the attendance or giving of testimony by Appraiser at any court, regulatory, or other proceedings, or any conferences or other work in preparation for such proceeding. If any partner or employee of Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd is asked or required to appear and /or testify at any deposition, trial, or other proceeding about the preparation, conclusions or any other aspect of this assignment, client shall compensate Appraiser for the time spent by the partner or employee in appearing and /or testifying and in preparing to testify according to the Appraiser's then current hourly rate plus reimbursement of expenses. 8. The values for land and /or improvements, as contained in this report, are constituent parts of the total value reported and neither is (or are) to be used in making a summation appraisal of a combination of values created by another appraiser. Esther is invalidated if so used. VALBRDGEPR0PERTYADVI90RSI Valbridge Property Advisors I Allen Brackett Siedd Page 40 Valbridge PROPERTY ADVISORS HENDER90N PROPERTY GENffZALASSUMPTIONS& LIMITING CONDITIONS 9. The dates of value to which the opinions expressed in this report apply are set forth in this report. We assume no responsibility for economic or physical factors occurring at some point at a later date, which may affect the opinions stated herein. The forecasts, projections, or operating estimates contained herein are based on current market conditions and anticipated short -term supply and demand factors and are subject to change with future conditions. 10. The sketches, maps, plats and exhibits in this report are included to assist the reader in visualizing the property. The appraiser has made no survey of the property and assumed no responsibility in connection with such matters. 11. The information, estimates and opinions, which were obtained from sources outside of this office, are considered reliable. However, no liability for them can be assumed by the appraiser. 12. Possession of this report, or a copy thereof, does not carry with it the right of publication. Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to property value, the identity of the appraisers, professional designations, reference to any professional appraisal organization or the firm with which the appraisers are connected), shall be disseminated to the public through advertising, public relations, news, sales, or other media without prior written consent and approval. 13. No claim is intended to be expressed for matters of expertise that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers. We claim no expertise in areas such as, but not limited to, legal, survey, structural, environmental, pest control, mechanical, etc. 14. This appraisal was prepared for the sole and exclusive use of the client for the function outlined herein. Any party who is not the client or intended user identified in the appraisal or engagement letter is not entitled to rely upon the contents of the appraisal without express written consent of Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd and Gient. The Gient shall not include partners, affiliates, or relatives of the party addressed herein. The appraiser assumes no obligation, liability or accountability to any third party. 15. Distribution of this report is at the sole discretion of the client, but third - parties not listed as an intended user on the face of the appraisal or the engagement letter may not rely upon the contents of the appraisal. In no event shall client give a third -party a partial copy of the appraisal report. We will make no distribution of the report without the specific direction of the client. 16. This appraisal shall be used only for the function outlined herein, unless expressly authorized by Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd. VALBRDGEPR0PERTYADVI90RSI Valbridge Property Advisors I Allen Brackett Siedd Page 41 Va I bt idge HENDER90N PROPERTY PROPERTY ADVISORS GENffZ4LASSUMPTIONS& LIMITING CONDITIONS 17. This appraisal shall be considered in its entirety. No part thereof shall be used separately or out of context. 18. Unless otherwise noted in the body of this report, this appraisal assumes that the subject property does not fall within the areas where mandatory flood insurance is effective. Unless otherwise noted, we have not completed nor have we contracted to have completed an investigation to identify and /or quantify the presence of non -tidal wetland conditions on the subject property. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 19. The flood maps are not site specific. We are not qualified to confirm the location of the subject property in relation to flood hazard areas based on the FE]VIA Flood Insurance Rate Maps or other surveying techniques. It is recommended that the client obtain a confirmation of the subject's flood zone classification from a licensed surveyor. 20. If the appraisal is for mortgage loan purposes 1) we assume satisfactory completion of improvements if construction is not complete, 2) no consideration has been given for rent loss during rent -up unless noted in the body of this report, and 3) occupancy at levels consistent with our "Income and Expense Projection" are anticipated. 21. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them. 22. Our inspection included an observation of the land and improvements thereon only. It was not possible to observe conditions beneath the soil or hidden structural components within the improvements. We inspected the buildings involved, and reported damage (if any) by termites, dry rot, wet rot, or other infestations as a matter of information, and no guarantee of the amount or degree of damage (if any) is implied. Condition of heating, cooling, ventilation, electrical and plumbing equipment is considered to be commensurate with the condition of the balance of the improvements unless otherwise stated. Should the client have concerns in these areas, it is the client's responsibility to order the appropriate inspections. The appraiser does not have the skill or expertise to make such inspections and assumes no responsibility for these items. 23. This appraisal does not guarantee compliance with building code and life safety code requirements of the local jurisdiction. It is assumed that all required licenses, consents, certificates of occupancy or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value conclusion contained in this report is based unless specifically stated to the contrary. VALBRDGEPROPERTYADVISDRSI Valb ridge Property Advisors I Allen Brackett Siedd Page 42 Va I bridge �•'; PROPERTY ADVISORS HENDER90N PROPERTY GENffZALASSUMPTIONS& LIMITING CONDITIONS 24. When possible, we have relied upon building measurements provided by the client, owner, or associated agents of these parties. In the absence of a detailed rent roll, reliable public records, or "as- built" plans provided to us, we have relied upon our own measurements of the subject improvements. We follow typical appraisal industry methods; however, we recognize that some factors may limit our ability to obtain accurate measurements including, but not limited to, property access on the day of inspection, basements, fenced /gated areas, grade elevations, greenery /shrubbery, uneven surfaces, multiple story structures, obtuse or acute wall angles, immobile obstructions, etc. Professional building area measurements of the quality, level of detail, or accuracy of professional measurement services are beyond the scope of this appraisal assignment. 25. We have attempted to reconcile sources of data discovered or provided during the appraisal process, including assessment department data. Ultimately, the measurements that are deemed by us to be the most accurate and /or reliable are used within this report. While the measurements and any accompanying sketches are considered to be reasonably accurate and reliable, we cannot guarantee their accuracy. Should the client desire a greater level of measuring detail, they are urged to retain the measurement services of a qualified professional (space planner, architect or building engineer). We reserve the right to use an alternative source of building size and amend the analysis, narrative and concluded values (at additional cost) should this alternative measurement source reflect or reveal substantial differences with the measurements used within the report. 26. In the absence of being provided with a detailed land survey, we have used assessment department data to ascertain the physical dimensions and acreage of the property. Should a survey prove this information to be inaccurate, we reserve the right to amend this appraisal (at additional cost) if substantial differences are discovered. 27. If only preliminary plans and specifications were available for use in the preparation of this appraisal, then this appraisal is subject to a review of the final plans and specifications when available (at additional cost) and we reserve the right to amend this appraisal if substantial differences are discovered. 28. Unless otherwise stated in this report, the value conclusion is predicated on the assumption that the property is free of contamination, environmental impairment or hazardous materials. Unless otherwise stated, the existence of hazardous material was not observed by the appraiser and the appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea - formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required for discovery. The client is urged to retain an expert in this field, if desired. VALBRDGEPROPERTYADVISDRSI Valb ridge Property Advisors I Allen Brackett Siedd Page 43 Va I bridge �•'; PROPERTY ADVISORS HENDUWN PROPERTY GENffZ4LASSUMPTIONS& LIMITING CONDITIONS 29. The Americans with Disabilities Act ( "ADA ") became effective January 26, 1992. We have not made a specific compliance survey of the property to determine if it is in conformity with the various requirements of the ADA. It is possible that a compliance survey of the property, together with an analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this could have a negative effect on the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of ADA in developing an opinion of value. 30. This appraisal applies to the land and building improvements only. The value of trade fixtures, furnishings, and other equipment, or subsurface rights (minerals, gas, and oil) were not considered in this appraisal unless specifically stated to the contrary. 31. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated, unless specifically stated to the contrary. 32. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute prediction of future operating results. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. 33. Any estimate of insurable value, if included within the scope of work and presented herein, is based upon figures developed consistent with industry practices. However, actual local and regional construction costs may vary significantly from our estimate and individual insurance policies and underwriters have varied specifications, exclusions, and non - insurable items. As such, we strongly recommend that the Client obtain estimates from professionals experienced in establishing insurance coverage. This analysis should not be relied upon to determine insurance coverage and we make no warranties regarding the accuracy of this estimate. 34. The data gathered in the course of this assignment (except data furnished by the Client) shall remain the property of the Appraiser. The appraiser will not violate the confidential nature of the appraiser- client relationship by improperly disclosing any confidential information furnished to the appraiser. Notwithstanding the foregoing, the Appraiser is authorized by the client to disclose all or any portion of the appraisal and related appraisal data to appropriate representatives of the Appraisal Institute if such disclosure is required to enable the appraiser to comply with the Bylaws and Regulations of such Institute now or hereafter in effect. VALBRDGEPROPERTYADVISDRSI Valb ridge Property Advisors I Allen Brackett Siedd Page 44 Valbridge PROPERTY ADVISORS HENDER90N PROPERTY GENffZALASSUMPTIONS& LIMITING CONDITIONS 35. You and Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd both agree that any dispute over matters in excess of $5,000 will be submitted for resolution by arbitration. This includes fee disputes and any claim of malpractice. The arbitrator shall be mutually selected. If Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd and the client cannot agree on the arbitrator, the presiding head of the Local County Mediation & Arbitration panel shall select the arbitrator. Such arbitration shall be binding and final. In agreeing to arbitration, we both acknowledge that, by agreeing to binding arbitration, each of us is giving up the right to have the dispute decided in a court of law before a judge or jury. In the event that the client, or any other party, makes a claim against Valbridge Property Advisors I Allen Brackett Shedd or any of its employees in connections with or in any way relating to this assignment, the maximum damages recoverable by such claimant shall be the amount actually received by Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd for this assignment, and under no circumstances shall any claim for consequential damages be made. 36. Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd shall have no obligation, liability, or accountability to any third party. Any party who is not the "client" or intended user identified on the face of the appraisal or in the engagement letter is not entitled to rely upon the contents of the appraisal without the express written consent of Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd. "Client" shall not include partners, affiliates, or relatives of the party named in the engagement letter. Client shall hold Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd and its employees harmless in the event of any lawsuit brought by any third party, lender, partner, or part -owner in any form of ownership or any other party as a result of this assignment. The client also agrees that in case of lawsuit arising from or in any way involving these appraisal services, client will hold Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd harmless from and against any liability, loss, cost, or expense incurred or suffered by Valbridge Property Advisors I Valbridge Property Advisors I Allen Brackett Shedd in such action, regardless of its outcome. 37. The Valbridge Property Advisors office responsible for the preparation of this report is independently owned and operated by Valbridge Property Advisors I Allen Brackett Shedd. Neither Valbridge Property Advisors, Inc., nor any of its affiliates has been engaged to provide this report. Valbridge Property Advisors, Inc. does not provide valuation services, and has taken no part in the preparation of this report. 38. If any claim is filed against any of Valbridge Property Advisors, Inc., a Florida Corporation, its affiliates, officers or employees, or the firm providing this report, in connection with, or in any way arising out of, or relating to, this report, or the engagement of the firm providing this report, then (1) under no circumstances shall such claimant be entitled to consequential, special or other damages, except only for direct compensatory damages, and (2) the maximum amount of such compensatory damages recoverable by such claimant shall be the amount actually received by the firm engaged to provide this report. VALBRDGEPROPERTYADVISDRSI Valbridge Property Advisors I Allen Brackett Siedd Page 45 Vaibridge HENDER90N PROPERTY PROPERTY ADVISORS GENffZALASSUMPTIONS& LIMITING CONDITIONS 39. This report and any associated work files may be subject to evaluation by Valbridge Property Advisors, Inc., or its affiliates, for quality control purposes. 40. Acceptance and /or use of this appraisal report constitutes acceptance of the foregoing general assumptions and limiting conditions. VALBRDGEPROPERTYADVISDRSI Valb ridge Property Advisors I Allen Brackett Siedd Page 46 Va I bridge �•'; PROPERTY ADVISORS Certification I certify that, to the best of knowledge and belief: 1. The statements of fact contained in this report are true and correct I W:4 ��_ No 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. 1 have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. 1 have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of the appraisal within the three -year period immediately preceding acceptance of this assignment. 5. 1 have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 9. Greg Goodman has personally inspected the subject property. 10. No one provided significant real property appraisal assistance to the person signing this certification. 11. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. VALBRDGEPFZ0PERTYADVI90RSI Valb ridge Property Advisors I Allen Brackett 9iedd Page 47 Vaibridge HBNDER90N PROPERTY PROPERTY ADVISORS CERTIRCATION 12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 13. As of the date of this report, Gregory L. Goodman completed the continuing education program for Designated Members of the Appraisal Institute. Gregory L. Goodman Managing Director Washington License #27011 1101089 License Expires 12 -02 -2015 VALBRDGEPR0PERTYADVI90RSI Valb ridge Property Advisors I Allen Brackett 9iedd Page 48 Valbridge PROPERTY ADVISORS Addenda Title Report Glossary Qualifications Greg Goodman, MAI - Managing Director Information on Valbridge Property Advisors Office Locations �ea2\e-1 VALBRDGEPFZ0PERTYADVI90RSI Valbridge Property Advisors I Allen Brackett 9iedd Page 49 FIRST � � '11�0 x4 F,wc 1 - Ti TLE COMPANY PO Box 598 . 2424 South Park Avenue, Port Townsend, WA 98368 Phone: (360) 385 -1322 Fax: (360) 385 -1877 January 29, 2015 Prepared for: Jefferson County Environmental Health 615 Sheridan Street Port Townsend, WA 98368 Attn: Tami Pokorny Order No.: RE: Property Address 56884 195 Rodgers St Quilcene, WA 98376 Charge: $ 75.00 Sales Tax: $ 6.75 Total: $ 81.75 By:Rochelle Lewis, Title Officer For Service on this order call: 360 - 385 -1322 (FAX) 360 - 385 -1877 (Email: rlewis@fatcojc.com) LOT BOOK REPORT This is a report as of January 26, 2015 at 8:00 a.m., covering property hereinafter described. The information contained herein is made solely for the purpose of determining the status of the property described herein, is restricted to the use of the addressee, and not to be used as a basis for closing any transaction affecting title to said property. Liability is limited to the charge made for this certificate. LEGAL DESCRIPTION: Lots 1, 2, 3 and 4 in Block 3 of Plat of Quilcene, as per plat recorded in Volume 2 of Plats on page 33, records of Jefferson County, Washington; TOGETHER WITH that portion of vacated Fremont Street adjacent vacated by Resolution No. 57 -00 recorded June 21, 2000 under Recording No. 434764, records of Jefferson County, Washington, that would attach by operation of law. Situate in the County of Jefferson, State of Washington. VESTED IN: Francis Henderson, as his separate estate EXCEPTIONS: General Taxes. The first portion $ 154.56 becomes delinquent after April 30'h. The second portion $ 154.46 becomes delinquent after October 31St Year: 2015 Amount Billed: $ 309.02 Amount Paid: $-0- Amount Due: $ 309.02, plus interest and penalty, if delinquent Tax Account No.: 991 200 301 Parcel ID No.: 41680 Assessed value: $ 30,800 2. Agreements, if any, which appear in the public record, related to future assessment obligations not yet of record. 3. Covenants, conditions and restrictions affecting title, if any appear in the public record. 4. Easements, if any, which appear in the public records or are shown on any recorded plat. 5. Any reservations or minerals or mineral rights, including leases of said rights appearing in the public record. 6. Easement rights and maintenance agreements, if any, for ingress, egress and utilities which may have been granted in vacated streets and alleys prior to their vacation. 7. Claim of lien by the State of Washington Department of Social and Health Services Against: Robert K. Henderson Amount: $13,064.00 Recorded: February 03, 1994 Recording No.: 368409 8. Judgment. In favor of: EPG Investments Against: Robert K. Henderson Amount: $ 2,064.08, together with interest, costs and attorneys fees, if any Entered: December 22, 2011 Filed: December 22, 2011 Judgment No.: 11 -9- 00527 -0 Cause No.: 11 -2- 00290 -9 Attorney for Judgment Creditor: Brad Lyle Wi9lliams Said judgment is also recorded under Recording No. 564800 11) g:? rr 573827 PGS:2 SWD 02!2012013 02:11 FM STa. DO JEFFERSON COUNTY ESCROW When recordCd return to: J fF rson Canty wa Rudiior's Office - Donna _1drid9a. Auditor mill Jefferson Cowtv ftm P. U. Box Bdnnon, WA 98320 STATUTORY WARRANTY DEED T71E GRANMR(5) Robert K. Henderson, as his separate estate, and Francis Henderson, as his separate estate, as Tenants in Gammon for and in consideration of Lovc and Affection in hand paid, coneys, and warrants to Robert K. Hendersuit, as his separate estate, and Francis Henderson, as his separate estate, as Joint Tenants with Right of Survivorship and not as Tenants in Common the following described real estate, situated in the County of Jefferson , State of Washington: Lots 1,2,3,4 in Block 3 of Plat of Quil ene, as per plat retarded in Volume 2 of Plats on Page 33, records of Jefferson County, Washington . Together with portion vacated Fremont Street Adj. #57-00 Abbmyk ted legal: (Rewired if rue ksw nul imerred above.) Tax Parcel Ntnnber(s): 491 200 341 Dated: 585552 118834 -t212'412013 1MG LP13 10- 05(i -1) Page 1 of 2 51-ATE OF WA j � lf�� COUNTY OF JeA(� I certify that l know or have satisfactory evidence that before me, and said persons) acknowledged that they be their 573827 Page 2 of 2 021201201302:11 PM Hobert K. Henderson and Francis Henderson (Ware) the person(s) who appeared signed this instrument and acknowledged it to free and voluntary act for the uses and purposes mentioned in this instrument.. Dated: 'z11g�f f am Notary ne printe tylked. tJAe241-- l , Notary Public in and for the State of Residingat 131'r.'Wzvj WADE R. JOMNSTON My appointment expires: STATE of t cToN NOTARY PUBLIC MY COMMISSION J](PMES 07.31 -18 LPH 1"5(i -1) Page 2 of 2 Filed for Record at Request of AFTER RECORDING }RAIL TO, ..�_i __ y _fn �_ J• a neT , � _ -...s vacs rdScn,,.tarrrt Incaevn • KS r � dgFFERSoh TITLE- COM 23 DEC 28 KX 0 5s u• ;T L� l{Ittwul aTAt 367214 NY Statutory Warranty Deed TH6 GRANTOR s LOYD r'. BIA.LER. AND HELEN A. BULLER, HUSBAND AND WIFE for and in consiAerWlurs of Orle !liar and Other Valuable Consideration. in hand paid, convcya and uarranss to Robert !Purr"? h Henderson, a single person and Frand s Henderson J a single person, as tenants in cormom Stan of W�shin�toa• the [alkouing described real cstale, snuated :n the County of JEFFERSON Lct. 3 •-tnd d Bla•:k 3 os Flat of QuiICent', as per plat recorded in Volume 2 r,f r,Ijjr, t,;l p_,q,� ?i• ,rrnrrls r•f Jaffee ; ;ln County, WaShington. :it.r.Is,e in tho Cnunty of .! ;- tfer1.. zr, St 31.p of Washirfgtofl, r i :�rl ;+ CO'�'.1Y EXCISE ll+A le p r1 -irt�s;lRt>; 1?ated this 6 day of DECEMBER 1993 By. rj ► r �� • ter: " ... By ....... ........" y.ATE OF u11 11=1 srrrE or c+� 5` p of ti LEA 218 f t. } n COLtifY i!F .yt�'►' -f-r.: C��nty i i 14 yt• ba fort me. On !h,s diy personsltr ar!Cr+ =cd tx[Drc rnr dad J: _ - -• fai the Ltatt of Loy[f i. & Helen R. 1;t:13Br a ur.durs:� =.o.. a c[d:Y el' -nl,c In and aPaarsd ^a rhlr. ❑[cn. du:y ee.•: •. 6s 3ened a:.d twor�:. P+rtonallY lnd ivfd�ai d+ncri bnd In . ::ten lc•�e:ne lr <:i•:l.:e.:<r :ri:c: .n a:-= •'•. _ _ _ to ri xno�n ca :r [h+ [or hl:n: har .tlf and sand e. ^r...�._ ash -• °: ":-eanr•6 .ns:r�r••e. ;, a'' e:d ul^o +xaeulvd [h+ a.1 [hln Intl r'�`nnl y$ 5cnl • ]b ac [ha ts[[crney Jr, Fact fvr - had [h■ ■are a■ httlh tr .f: F•:•' ;, :r .,..! +•.: c'r:3 a:: s:+: a.:l. �.•.`: acic:,u�: eC;ed tc :•� tha[ r.e oleo +d and .era tar hlmlh+r ■tile and oleo at •.scs an•l ❑c�uscs :hcrr:n r•,c "':.n.: ._n ten■ .red +'v]un[arr nr[ acd dnsd and deed as XttOrn.y In fact for *.r e; her fr++ a.d va Lary act In tv,e e.pacl[I and for the u+ta r�ltE� ",der •:.. �..i,d :.'.d �.... ,.��. '�.; ;n:d _ —��— —_.— .-- --- - e:n r+ant l•; r,od. ani =Ys[ Bald 'vr In" re' is not a+•d ivirtwn e. t?'.sr dace26ad rtur naane _•' "� ','rf 1.'! 1., ;tiF55 w'Nif•�. :i l.a�e t.lr9W,L] .+[ ,.,y '.1rld and al�t>< +ri ti a'c ... 7' T" S: Sa: as 51 .!•d da'/ a.._ ,ea: e,rit abuvo r:[t ■n ..�-�.._ a ;9 c+ r• -:..r s6 r�:, i:K�l r■ -.-.�_ of ,+a. �_- _ +fr L:m� :r "�+T.c'w� rryA !..knc•.. a�:o.:..:nl •7e'. i end A[t V-ney In Fad' , . When recorded retu-n to Jefferson County Public Works In the matter of- Illlfli lllll llllf ll IIllf !f Il lllf li llllllilllllf Illl Illl 4�47fi4 .I�TI�r�en County, .-A JEFFERSON COUNTY ROA RESO g pp � 54P STATE OF WASHINGTON COUNTY OF J-EFFF:RSOV RESOLUTION NO. 57-00 Vacation of a Portion of Fremont Ave. x I'lat of Quileene x WITEREAS, the Jefferson County Board of Commissioners has reviewed a road vacation petition submitted by Tim Gallagher; and WHEREAS, the Jefferson County Hearing Fxaminer held a public hearing on the road vacation petition on June 1:, 1999; and WHF RE:A3, the Jefferson County Hearing Examiner considered testimony of the public, comments fiom applicable departments, agencies and offices, and recommendation from the Jefferson County Public Works Departmen: and Jefferson County Planning Department at the public hearing, and WHEREAS, the Jefferson County Hearing Examiner determined at the public hearing that the public will benefit from the vacation of this alley and such vacation complies with the Jefferson County Comprehensive Plan and other applicable plans, policies or ordinances; and WHEREAS, the Jefferson County Board of Commissioners considcrcd said Hearing Examiner's report of the public hearing and his recommendation for the vacation request and hereby adopts the Findings of the Jefferson County Hearing Examiner dated June 28, 1999, NOW, TI. IEREFORE BE IT RESOLVED that the following he vacated and abandoned pursuant to RCW 36.87.140 and Jefferson County Road Vacation Ordinance Teo. 01- 0102 -96: That portion of platted, unopened Fremont Ave- heing approximately 60 feet to width and 225 feet in length, adjoining LoLs I6-20 of Block 4 and Lois 1 -5 of -Block 3, all locatcd in the fiat of Quilcene, recorded in Volume 2 of Plats, Page 33, Section 24, To'.,,-nship 27 North, Range 2 West, records ol'Jefterson County, Washington- This vacation affects parcel numbers: 991200407 and 991200301 & 991200302, . Utility rights, private eascv[ents, or other rights or interests may still exist. ADOPTED THIS DAY OF f1 �_ 2000. — JEFFERSON BOAR -] OF i Riehir W len F ,ting SEAL: Ilan l larpole, ^AYF ST: Lorna L. Delaney Clerk of the Board NOTICE IS HEREBY GIVEN: 368409 STATE OF WASI11NGTON DEPARTMENT OF SOCIAL AND HCALTH SERVICES OFFICE OF SUPPORT ENFORCEMENT (OSE) NOTICE AND STATEMENT OF LIEN (RCW 74.20A,060) That the Department of Social and Health Services (DSHS) claims that Robert R. SSN: X1680 DOB: � owes a debt for past due child support That DSHS files a lien in the amount of $ 13064.00 in Jefferson C) Hender R.Wr13 "csi IN OF C � r: ; . T.1E _ ORDS REOULS 01F 1994 FEB - GNP =Truly ..`7"'ERSC -14 CDENTY AUDIT013 8Y DEPUTY 0 A. All real and personal properly of the debtor, and /or ❑ B. The property described below STATE OF WASHINGTON ) ss. County of King) I certify that who signed t SUBSCRIBED AND SWORN to before In Miryry shall be made 0, OFFICE OF SUPPO NF ENT 101 So. Ki c ee MS: N17 -28 Seattle Wa 9-"0 (206) = 464 -7851 In reply, refer to: D#: 571231 NOTICE AND 5TATWENT OF LIEN DSHS 9.702 IACv 1 W FEB - 3 1994 O (�D e ed before me and is known to me as the individual 0''I •WIL41 NOTARY P BL1C [ fo�tl e late of:Jtl4a iington residing at My commissio exp �i a �' . 9 !r or va 447 ?Lr 5 [ 9 �GFutI19S} tId90 940121 1TF1001 571231 564800 PGS :3 JUDGE 01/1712012 11:08 AM $64.00 EGP INVESTMENTS LLC Jefferson .C■ounty WA Auditor's Office - Donna Eldridge, Auditor mill K VI f 1N 11OKW W��r,�rr11W.10 lo 'k 11111 RETURN ADDRESS EGP Investments LLC 1697 N Western Avenue Wenatchee WA 98801 Document Title(s) Abstract of Judgment Reference Number(s) of Related Documents Additional Reference #'son page: [W� Grantor(s) (Last, first and Middle Initial) HENDERSON Robert K. HENDERSON Jane Doe Additional Grantors on page: Grantee(s) (Last, first and Middle Initial) EGP Investments LLC Additional Grantees on page: Legal Description (abbravlatad form: Le. lot, bock, plat or section, township, range, quarter /quarter) Additional legal is on page: Assessor's Property Tax Parcel /Account Number Additional parcel #'s on page The Auditor /Recorder will rely on the information provided on this form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. 1% c 564800 Page 2 of 3 01/171201211:08 AM SUPERIOR COURT OF WASHINGTON — COUNTY OF JEFFERSON -------------------- ABSTRACT OF 3UD6MENT -------------------- TITLE: E6P INVESTMENTS VS ROBERT F( AND JANE DOE HBNDERSUN JUDGMENT NUMBER: 11-9-00527-0 CASE NUMBER: ll-2-00290-9 SIGNED 8y: DATE SIGNED: DATE FILED: 12/22/'2011 EFFECTIVE DATE: 12/22/~2011 NOTE: ----------------- ORIGINAL PARTIES TO ACTION--------------------------------- PLAINTIFF: EGP INVESTMENTS DEFENDANT: HBNDERSON, ROBERT K DEFENDANT: HENDERSOW, JANE DOE AlTY FOR PLA. / PETITIONER:WILLIAMS, BRAD LYLE ----------------- JUDGMENT l/EBTORS------------------------------------------- DEBTOR: HEMDERSON, ROBERT K DEBTOR: HENDERSUW, JANE DOE ----------------- JUDGMENT CREDITORS------------------------------------'---- CREDITOR: EGP INVESTMENTS ----------------- ATTORNEY(S) FOR CREDITOR ------------------------------------ HTTY CR: WILLIAMS, BRAD LYLE ---------------------------------------------------------------------------- DATE ! EXECUTION DOCKET ! $ AMOUNT ---------------------------------------------------------------------------- 12/22/2011 JUDGMENT AGAINST ROBERT K HEMDERSOM AND ! � THE MARITAL COMMUNITY COMPRISED OF R0DERT � � AND JANE DOE HENDERSON IN FAVOR OF THE � � EGP INVESTMENTS, LLC 2,O64'O8 � JUDGMENT SHALL BEAR INTEREST AT 12% t 12/22/2011 ABSTRACT ISSUED TO JEFFERSON COUNTY AUDITOR 5'00 ---------------------------------------------------------------------------- a 564800 Page 3 of 3 01117/201211:08 AM JEFFERSON SUPERIOR COURT - ABSTRACT OF JUDGMENT - 11- 9- 00527 -0 PAGE 2 1, RUTH GORDON, CLERK OF' 1 -HE SUPERIOR COURT IN AND FOR JEFFERSON COUNTY, STATE OF WASHINGTON, DO HEREBY CER`CIFY THAT THE ABOVE. IS A FULL, TRUE AND CORRECT ABSTRACT OF JUDGMENT IN THE ABOVE ENTITLED ACTION AS THE SAME APPEARS OF' RECORD IN MY OFFICE. WITNESS MY HAND AND THE SEAL OF THE SAID SUPERIOR CCU R�it��O� F'10E IN PORT TOWNSEND THIS 22ND DAY OF DECEMBER, 2011. :`Q•'• �,ti '�'; "'•, RUTH GORD N lJFlT CLERk4' BY DEPUTY GLk_' 4 pa- tl Z 3 rs .t cs 5'6 r9' 4$ 7 8 4�5' 9 r.5 10 19 16 17 16 15 14 13 W tI This sketch is not based on a survey of the property. It is furnished without charge courtesy of First American Title Company solely for the purpose _pf, ,,, assisting in locating the said premFgdt'r— "^' It does not purport to show all roads or IV U/VU rc m N z rn M CN N 1111111111 I I I I NII/ I This sketch is not based on a survey of the property. It is furnished without charge courtesy of First American Title Company solely for the purpose of assisting in locati g the sgi�l pAgmp' eg_ os o rpr so a is� li for ny i a pu ace in. 1111pt,11111 5 "0 1,111 Fwq.."1111 W 5 "0 1,111 Fwq.."1111 W w z MUNCIE AVE O J W Qf 1 2 3 4 5 6 7 6 9 10 > 1 2 3 4 5 6 7 B 9 10 W Q 7 V C�::f 19�l00 W flP.A. eASwavr I Valbridge PROPERTY ADVISORS Me 12 Definitions are taken from the Dictionary of Real Estate Appraisal, 5th Edition (Dictionary), the Uniform Standards of Professional Appraisal Practice (USPAP) and Building Owners and Managers Association International (BOMA). Absolute Net Lease A lease in which the tenant pays all expenses including structural maintenance, building reserves, and management; often a long -term lease to a credit tenant. (Dictionary) Additional Rent Any amounts due under a lease that is in addition to base rent. Most common form is operating expense increases. (Dictionary) Amortization The process of retiring a debt or recovering a capital investment, typically though scheduled, systematic repayment of the principal; a program of periodic contributions to a sinking fund or debt retirement fund. (Dictionary) As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. (Dictionary) Base (Shell) Building The existing shell condition of a building prior to the installation of tenant improvements. This condition varies from building to building, landlord to landlord, and generally involves the level of finish above the ceiling grid. (Dictionary) Base Rent The minimum rent stipulated in a lease. (Dictionary) Base Year The year on which escalation clauses in a lease are based. (Dictionary) Building Common Area The areas of the building that provide services to building tenants but which are not included in the rentable area of any specific tenant. These areas may include, but shall not be limited to, main and auxiliary lobbies, atrium spaces at the level of the finished floor, concierge areas or security desks, conference rooms, lounges or vending areas food service facilities, health or fitness centers, daycare facilities, locker or shower facilities, mail rooms, fire control rooms, fully enclosed courtyards outside the exterior walls, and building core and service areas such as fully enclosed mechanical or equipment rooms. Specifically excluded from building common areas are; floor common areas, parking spaces, portions of loading docks outside the building line, and major vertical penetrations. (BOMA) Building Rentable Area The sum of all floor rentable areas. Floor rentable area is the result of subtracting from the gross measured area of a floor the major vertical penetrations on that same floor. It is generally fixed for the life of the building and is rarely affected by changes in corridor size or configuration. (BOMA) Certificate of Occupancy (COO) A statement issued by a local government verifying that a newly constructed building is in compliance with all codes and may be occupied. Common Area (Public) Factor In a lease, the common area (public) factor is the multiplier to a tenant's useable space that accounts for the tenant's proportionate share of the common area (restrooms, elevator lobby, mechanical rooms, etc.). The public factor is usually expressed as a percentage and ranges from a low of 5 percent for a full tenant to as high as 15 percent or more for a multi- tenant floor. Subtracting one (1) from the quotient of the rentable area divided by the useable area yields the load (public) factor. At times confused with the "loss factor' which is the total rentable area of the full floor less the useable area divided by the rentable area. (BOMA) Common Area Maintenance (CAM) The expense of operating and maintaining common areas; may or may not include management charges and usually does not include capital expenditures on tenant improvements or other improvements to the property. CAM can be a line -item expense for a group of items that can include maintenance of the parking lot and landscaped areas and sometimes the exterior walls of the buildings. CAM can refer to all operating expenses. CAM can refer to the reimbursement by the tenant to the landlord for all expenses reimbursable under the lease. Sometimes reimbursements have what is called an administrative load. An example would be a 15 percent addition to total operating expenses, which are then prorated among tenants. The administrative load, also called an administrative and marketing fee, can be a substitute for or an addition to a management fee. (Dictionary) VALBRDGE PROPERTY ADVISORS I Valbridge Property Advisors I Allen Brackett Siedd Page 50 Valbridge PROPERTY ADVISORS Condominium A form of ownership in which each owner possesses the exclusive right to use and occupy an allotted unit plus an undivided interest in common areas. A multiunit structure, or a unit within such a structure, with a condominium form of ownership. (Dictionary) Conservation Easement An interest in real property restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses. A conservation easement may permit farming, timber harvesting, or other uses of a rural nature to continue, subject to the easement. In some locations, a conservation easement may be referred to as a conservation restriction. (Dictionary) Contributory Value The change in the value of a property as a whole, whether positive or negative, resulting from the addition or deletion of a property component. Also called deprival value in some countries. (Dictionary) Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service (DCR= NOI /Im), which measures the relative ability to a property to meet its debt service out of net operating income. Also called Debt Service Coverage Ratio (DSCR). A larger DCR indicates a greater ability for a property to withstand a downturn in revenue, providing an improved safety margin for a lender. (Dictionary) Deed Restriction A provision written into a deed that limits the use of land. Deed restrictions usually remain in effect when title passes to subsequent owners. (Dictionary) Depreciation 1) In appraising, the loss in a property value from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date. 2) In accounting, an allowance made against the loss in value of an asset for a defined purpose and computed using a specified method. (Dictionary) Disposition Value The most probable price that a specified interest in real property is likely to bring under the following conditions: Consummation of a sale within a exposure time specified by the client; The property is subjected to market conditions prevailing as of the date of valuation; G992\IG Both the buyer and seller are acting prudently and knowledgeably; The seller is under compulsion to sell; The buyer is typically motivated; Both parties are acting in what they consider to be their best interests; An adequate marketing effort will be made during the exposure time specified by the client; Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto; and The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Dictionary) Easement The right to use another's land for a stated purpose. (Dictionary) 0 FS Exterior Insulation Finishing System. This is a type of exterior wall cladding system. Sometimes referred to as dry -vit. Effective Date The date at which the analyses, opinions, and advice in an appraisal, review, or consulting service apply. 2) In a lease document, the date upon which the lease goes into effect. (Dictionary) Effective Gross Income (EGI) The anticipated income from all operations of the real property after an allowance is made for vacancy and collection losses and an addition is made for any other income. (Dictionary) Effective Rent The rental rate net of financial concessions such as periods of no rent during the lease term and above- or below- market tenant improvements (Tls). (Dictionary) EPDM Ethylene Diene Monomer Rubber. A type of synthetic rubber typically used for roof coverings. (Dictionary) Escalation Gause A clause in an agreement that provides for the adjustment of a price or rent based on some event or index. e.g., a provision to increase rent if operating expenses increase; also called an expense recovery clause or stop clause. (Dictionary) Estoppel Certificate A statement of material factors or conditions of which another person can rely because it cannot be denied at a later date. In real estate, a buyer of rental property VALBRDGE PROPERTY ADMS0F;S I Valbridge Property Advisors I Allen Brackett Siedd Page 51 Valbridge PROPERTY ADVISORS typically requests estoppel certificates from existing tenants. Sometimes referred to as an estoppel letter. (Dictionary) Excess Land Land that is not needed to serve or support the existing improvement. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land may have the potential to be sold separately and is valued separately. (Dictionary) Expense Stop A clause in a lease that limits the landlord's expense obligation, which results in the lessee paying any operating expenses above a stated level or amount. (Dictionary) Exposure Time 1) The time a property remains on the market. 2) The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. (Dictionary) Extraordinary Assumption An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. (Dictionary) Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. (Dictionary) Roor Common Area Areas on a floor such as washrooms, janitorial closets, electrical rooms, telephone rooms, mechanical rooms, elevator lobbies, and public corridors which are available primarily for the use of tenants on that floor. (BOMA) Full Service (Gross) Lease A lease in which the landlord receives stipulated rent and is obligated to pay all of the property's operating and fixed expenses; also called a full service lease. (Dictionary) G992\IG Going Concern Value • The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern. • The value of an operating business enterprise. Goodwill may be separately measured but is an integral component of going- concern value when it exists and is recognizable. (Dictionary) Gross Building Area The total constructed area of a building. It is generally not used for leasing purposes (BOMA) Gross Measured Area The total area of a building enclosed by the dominant portion (the portion of the inside finished surface of the permanent outer building wall which is 50 percent or more of the vertical floor -to- ceiling dimension, at the given point being measured as one moves horizontally along the wall), excluding parking areas and loading docks (or portions of the same) outside the building line. It is generally not used for leasing purposes and is calculated on a floor by floor basis. (BOMA) Gross Up Method A method of calculating variable operating expense in income - producing properties when less than 100 percent occupancy is assumed. The gross up method approximates the actual expense of providing services to the rentable area of a building given a specified rate of occupancy. (Dictionary) Gross Retail Sellout The sum of the appraised values of the individual units in a subdivision, as if all of the unitswere completed and available for retail sale, as of the date of the appraisal. The sum of the retail sales includes an allowance for lot premiums, if applicable, but excludes all allowances for carrying costs. (Dictionary) Ground Lease A lease that grants the right to use and occupy land. Improvements made by the ground lessee typically revert to the ground lessor at the end of the lease term. (Dictionary) Ground Rent The rent paid for the right to use and occupy land according to the terms of a ground lease; the portion of the total rent allocated to the underlying land. (Dictionary) VALBRDGE PROPERTY ADVISJRS I Valbridge Property Advisors I Allen Brackett Siedd Page 52 Valbridge PROPERTY ADVISORS HVAC Heating, ventilation, air conditioning. A general term encompassing any system designed to heat and cool a building in itsentirety. Highest and Best Use The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are 1) legal permissibility, 2) physical possibility, 3) financial feasibility, and 4) maximally profitability. Alternatively, the probable use of land or improved — specific with respect to the user and timing of the use —that is adequately supported and results in the highest present value. (Dictionary) Hypothetical Condition That which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (Dictionary) Industrial Gross Lease A lease of industrial property in which the landlord and tenant share expenses. The landlord receives stipulated rent and is obligated to pay certain operating expenses, often structural maintenance, insurance and real estate taxes as specified in the lease. There are significant regional and local differences in the use of this term. (Dictionary) Insurable Value A type of value for insurance purposes. (Dictionary) (Typically this includes replacement cost less basement excavation, foundation, underground piping and architect's fees). Investment Value The value of a property interest to a particular investor or class of investors based on the investor's specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. (Dictionary) Just Compensation In condemnation, the amount of loss for which a property owner is compensated when his or her property is taken. Just compensation should put the owner in as good a position as he or she would be if the property had not been taken. (Dictionary) G992\IG Leased Fee Interest A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord- tenant relationship (i.e., a lease). (Dictionary) Leasehold Interest The tenant's possessory interest created by a lease. (Dictionary) Lessee (Tenant) One who has the right to occupancy and use of the property of another for a period of time according to a lease agreement. (Dictionary) Lessor (Landlord) One who conveys the rights of occupancy and use to others under a lease agreement. (Dictionary) Liquidation Value The most probable price that a specified interest in real property should bring under the following conditions: Consummation of a sale within a short period. The property is subjected to market conditions prevailing as of the date of valuation. Both the buyer and seller are acting prudently and knowledgeably. The seller is under extreme compulsion to sell. The buyer is typically motivated. Both parties are acting in what they consider to be their best interests. A normal marketing effort is not possible due to the brief exposure time. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Dictionary) Loan to Value Ratio (LTV) The amount of money borrowed in relation to the total market value of a property. Expressed as a percentage of the loan amount divided by the property value. (Dictionary) Major Vertical Penetrations Stairs, elevator shafts, flues, pipe shafts, vertical ducts, and the like, and their enclosing walls. Atria, lightwells and similar penetrations above the finished floor are included in this definition. Not included, however, are vertical penetrations built for the private use of a tenant occupying office areas on more than one floor. Structural columns, openings for vertical electric cable or telephone distribution, and openings for plumbing lines VALBRDGE PROPERTY ADVISORS I Valbridge Property Advisors I Allen Brackett Siedd Page 53 Valbridge PROPERTY ADVISORS are not considered to be major vertical penetrations. (BOM A) Market Rent The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement including permitted uses, use restrictions, expense obligations; term, concessions, renewal and purchase options and tenant improvements (TIs). (Dictionary) Market Value 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: a. Buyer and seller are typically motivated; b. Both parties are well informed or well advised, and acting in what they consider their own best interests; c. A reasonable time is allowed for exposure in the open market; d. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and e. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Market Value As If Complete Market value as if complete means the market value of the property with all proposed construction, conversion or rehabilitation hypothetically completed or under other specified hypothetical conditions as of the date of the appraisal. With regard to properties wherein anticipated market conditions indicate that stabilized occupancy is not likely as of the date of completion, this estimate of value shall reflect the market value of the property as if complete and prepared for occupancy by tenants. Market Value As If Stabilized Market value as if stabilized means the market value of the property at a current point and time when all improvements have been physically constructed and the property has been leased to its optimum level of long term occupancy. Marketing Time An opinion of the amount of time it might take to sell a real or personal property interest at the concluded G992\IG market value level during the period immediately after the effective date of the appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. (Advisory Opinion 7 of the Standards Board of the Appraisal Foundation and Statement on Appraisal Standards No. 6, "Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions" address the determination of reasonable exposure and marketing time). (Dictionary) Master Lease A lease in which the fee owner leases a part or the entire property to a single entity (the master lease) in return for a stipulated rent. The master lessee then leases the property to multiple tenants. (Dictionary) Modified Gross Lease A lease in which the landlord receives stipulated rent and is obligated to pay some, but not all, of the property's operating and fixed expenses. Since assignment of expenses varies among modified gross leases, expense responsibility must always be specified. In some markets, a modified gross lease may be called a double net lease, net net lease, partial net lease, or semi -gross lease. (Dictionary) Operating Expense Ratio The ratio of total operating expenses to effective gross income (TOEEGI); the complement of the net income ratio, i.e., OER= 1 — NIR(Dictionary) Option A legal contract, typically purchased for a stated consideration, that permits but does not require the holder of the option (known as the optionee) to buy, sell, or lease real property for a stipulated period of time in accordance with specified terms; a unilateral right to exercise a privilege. (Dictionary) Partial Interest Divided or undivided rights in real estate that represent less than the whole (a fractional interest). (Dictionary) Pass Through A tenant's portion of operating expenses that may be composed of common area maintenance (CAM), real estate taxes, property insurance, and any other expenses determined in the lease agreement to be paid by the tenant. (Dictionary) Potential Gross Income (PGI) The total income attributable to real property at full occupancy before vacancy and operating expenses are deducted. (Dictionary) VALBRDGE PF:OPERTY ADMSJFS I Valbridge Property Advisors I Allen Brackett Siedd Page 54 Valbridge PROPERTY ADVISORS Prospective Future Value Upon Completion Market value "upon completion" is a prospective future value estimate of a property at a point in time when all of its improvements are fully completed. It assumes all proposed construction, conversion, or rehabilitation is hypothetically complete as of a future date when such effort is projected to occur. The projected completion date and the value estimate must reflect the market value of the property in its projected condition, i.e., completely vacant or partially occupied. The cash flow must reflect lease -up costs, required tenant improvements and leasing commissions on all areas not leased and occupied. Prospective Future Value Upon Stabilization Market value "upon stabilization" is a prospective future value estimate of a property at a point in time when stabilized occupancy has been achieved. The projected stabilization date and the value estimate must reflect the absorption period required to achieve stabilization. In addition, the cash flows must reflect lease -up costs, required tenant improvements and leasing commissions on all unleased areas. Replacement Cost The estimated cost to construct, at current prices as of the effective appraisal date, a substitute for the building being appraised, using modern materials and current standards, design, and layout. (Dictionary) Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of workmanship and embodying all of the deficiencies, super- adequacies, and obsolescence of the subject building. (Dictionary) Retrospective Value Opinion A value opinion effective as of a specified historical date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., "retrospective market value opinion." (Dictionary) Sandwich Leasehold Estate The interest held by the original lessee when the property is subleased to another party; a type of leasehold estate. (Dictionary) G992\IG Sublease An agreement in which the lessee (i.e., the tenant) leases part or all of the property to another party and thereby becomes a lessor. (Dictionary) Subordination A contractual arrangement in which a party with a claim to certain assets agrees to make his or her claim junior, or subordinate, to the claims of another party. (Dictionary) Substantial Completion Generally used in reference to the construction of tenant improvements (Ts). The tenant's premises are typically deemed to be substantially completed when all of the Tls for the premises have been completed in accordance with the plans and specifications previously approved by the tenant. Sometimes used to define the commencement date of a lease. Surplus Land Land that is not currently needed to support the existing improvement but cannot be separated from the property and sold off. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. (Dictionary) Triple Net (Net Net Net) Lease A lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management. Also called NNN, triple net lease, or fully net lease. (Dictionary) (The market definition of a triple net lease varies; in some cases tenants pay for items such as roof repairs, parking lot repairs, and other similar items.) Usable Area The measured area of an office area, store area or building common area on a floor. The total of all the usable areas or a floor shall equal floor usable area of that same floor. The amount of floor usable area can vary over the life of a building as corridors expand and contract and as floors are remodeled. (BOMA) Value -in -Use The value of a property assuming a specific use, which may or may not be the property's highest and best use on the effective date of the appraisal. Value in use may or may not be equal to market value but is different conceptually. (Dictionary) VALBRDGE PROPERTY ADVISORS I Valbridge Property Advisors I Allen Brackett Siedd Page 55 Qualifications of Gregory L. Goodman, MAI Experience Principal of Allen Brackett Shedd. Involved in the real estate field since February of 1999. Appraisal experience includes a wide variety of appraisal assignments, consisting of vacant and improved commercial, industrial, residential and mixed -use properties. Examples of the wide variety of properties appraised include: large scale mixed -use projects comprised of retail, office and residential uses, subdivisions, sensitive area properties, rail and utility corridors, lake bedlands, shopping centers, auto dealerships, as well as more typical commercial, industrial and residential improved properties. Valuations have been performed for acquisitions in fee, leased fee and leasehold interests, as well as various partial interests including conservation easements, utility easements, subsurface easements and air rights easements. Numerous appraisal assignments performed have been associated with condemnation of all or a part of a property and involved mediation and other litigation support work. Appraisal assignments include work throughout the Puget Sound Region, including King, Pierce, Snohomish, Kitsap, Thurston, Whatcom, Skagit, and Island Counties. Professional Affiliations Member, Appraisal Institute. Received MAI designation May 12, 2008 Member of the International Right -of -Way Association Education University of Washington, Seattle, Washington: BA Degree in Business Administration with concentrations in Finance and Information Systems, December of 1998. Have completed all appraisal courses required for MAI designation. Additional seminar and continuing education includes: • Appraisal Institute: Basic and Advanced Condemnation courses • Appraisal Institute: UASFLA (Yellow Book) course • Appraisal Institute: Attacking and Defending an Appraisal in Litigation • Appraisal Institute: Valuation of Easements and other Divided Interests Representative Client List: Government/ Public Agencies City of Auburn City of Bellevue City of Bellingham City of Bothell City of Edmonds City of Everett City of Kent City of Krkland City of North Bend City of Puyallup City of Redmond City of Renton City of SeaTac City of Sumner City of Seattle City of Tukwila City of University Place Covington Water District Edmonds School District Jefferson County Kng County Dept. of Transportation Kng County Open Space Kng County Public Works Monroe Public Schools VALBRIDGE PROPERTY ADVISORS I Val bridge Property Advisors I Allen Brackett Shedd Page 56 GREGORY L GOODMAN, M AI (cont.) Government/ Public Agencies (cont.) Pierce County Public Works Port of Seattle Renton Housing Authority Seattle Housing Authority Seattle Monorail Project Seattle Public Library Seattle Public School District Attorneys -at -Law Cairncross & Hempelmann Davis Wright Tremaine Foster Pepper Graham & Dunn Hanson, Baker, Ludlow & Drumheller K& L Gates Lane, Powell, Spears & Lubersky Lasher, Holzapfel, Sperry & Ebberson Private Sector Burlington Northern Santa Fe Cadman, Inc. Cascade Land Conservancy Certified Land Services Gise Properties Inc. David Evans and Associates Deposit & Associates Development Services of America Evergreen Center Associates Greenwell /Renton LLC Jefferson Land Trust Johnson Underwood Properties Kttitas Conservation Trust Lakeside Industries Lynden Incorporated Master Park Financial Institutions Anchor Savings Bank Bank of America Charter Bank Frontier Bank Timberland Bank Seattle Public Utilities Shoreline Public Schools Sound Transit US Army Corps of Engineers US Navy Washington State Dept. of Transportation Woodinville Water District Perkins Coie Riddell Williams Short, Cressman & Burgess Stella Pitts and Associates Tousley Brain Stephens Washington State Attorney General's Office Williams & Williams McDonald's Corporation Nature Conservancy Newmark Realty Capital New Ventures Group Palmer Coking Coal Pharos Corporation Port Blakely Communities Puget Sound Energy Puget Western Quadrant San Juan Preservation Trust Seattle Art M useum Seattle Pacific University Staubach Stellar Holdings, Inc. Toyota Financial Services Sterling Savings Bank Union Bank US Bank State Certification N umber — General: 27011 - 1101089 Expiration: 12/02/15 (Revised 12/13/11) VALBRIDGE PROPERTY ADVISORS I Val bridge Property Advisors I Allen Brackett Shedd Page 57 Valuation and ,Advisory services for All Types of Property and Land Office Industrial Retail Apartments1multifarnily)senior living Lodgingfhospitality !recreational Other special- purpose properties 42:04 V-11 0 ONW.0 C1l *1 Portfolio valuation RE01foreclosure evaluation Real estate market and feasibility analysis Property and lease comparables, including lease review Due diligence Property tax assessment and appeal - support services Valuations and analysis of property under eminent domain proceedings Valuations of property for financial reporting, including goodwill impairment, impairment or disposal of long -lived assets, fair value and leasehold valuations Valuation of property for insurance, estate planning and trusteeship, including fractional interest valuation for gifting and IRS purposes Litigation support, including expert witness testimony Business and partnership valuation and advisory services, including partial interests VALBRIDGE PROPERTYADVISORS I Valbridge Property Advisors I Allen Brackett Shedd Page 58 ALABAMA Valbridge Property Advisors I Real Estate Appraisers, LLC 4732 Woodmere Boulevard Montgomery, AL 36106 334 - 277 -5077 ARIZONA Valbridge Property Advisors I MJN Enterprises, Inc. 6061 E Grant Road, Suite 121 Tucson. AZ 85712 520- 321 -0000 CALIFORNIA Valbridge Property Advisors I Michael Burger & Associates 4915 Calloway Drive, Suite 101 Bakersfield, CA 93312 661 -587 -1010 Valbridge Property Advisors. I Cummings Appraisal Group, Inc. 99 S. Lake Avenue.. Suite 21 Pasadena, CA 911 D1 626- 744 -0428 Valbridge Property Advisors I Hulbert' & Associates, Inc. 225 Crossroads Blvd, Suite 326 Carmel, CA 93923 831- 917 -0383 2813 Coffee Road, Suite E -2 Modesto, CA 95355 209- 569 -0450 One North Market Street San Jose, CA 95113 408- 279 -1520 3160 Crow Canyon Place, Suite 245 San Raman. CA 94583 925 - 327 -1660 Valbridge Property Advisors I Penner & Associates, Inc. 137D N. Brea Boulevard, Suite 255 Fullerton, CA 92835 714 - 449 -0852 Valbridge Property Advisors I Ribacchi& Associates 103D1 Placer Lane, Suite 100 Sacramento, CA 95827 916 - 361 -2509 COLORADO Valbridge Property Advisors I Bristol Realty Counselors 5345 Arapahoe, Suite 7 Boulder, GO 80303 303 - 443 -9600 Valbridge. Property Advisors I Mountain West 562 Highway 133 Carbondale, CO 81623 970 - 340 -1016 CONNECTICUT Valbridge Property Advisors I Italia & Lemp, Inc. 6 Central Row, Third Floor Hartford, CT 06103 -2701 860- 246 -4606 17 High Street, Suite 214 Norwalk, CT 06851 203 -286 -6520 FLORIDA Valbridge Property Advisors I Armalavage Valuation, LLC 2240 Venetian Court Naples, FL 34109 239- 514 -4646 Valbrldge Property Advisors I Beaumont, Matthes & Church, Inc. 603 Hillerest Street Orlando, FL 32803 407- 839 -3626 Valbridge Property Advisors I Boyd, Schmidt & Brannum 2711 Poinsettia Avenue West Palm Beach, FL 33407 561- 8335331 Valbridge Property Advisors I Broom, Moody, Johnson & Grainger, Inc. 121 Mst Forsyth Street, Suite 1000 Jacksonville, FL32202 904- 296 -3000 Valbridge Property Advisors I Erdreken Associates, Inc. 110016th Street N St. Petersburg, FL 33705 727 - 894 -1800 GEORGIA Valbridge Property Advisors I Cantrell Miller, LLC 2675 Paces Ferry Road, Suite 145 Atlanta, GA 30339 678 - 644 -4853 IDAHO Valbridge Property Advisors I Auli Jolieoeur & Gentry, Inc. 1875 N. Lakewood Drive, Suite 100 Coeur d'Alene, ID 83814 208. 292 -2965 Valbridge Property Advisors I Mountain States Appraisal & Consulting, Inc. 1459 Tyrell Lane, Suite B Boise, ID 83706 208 -336 -1097 INDIANA Valbridge Property Advisors Mitchell Appraisals, Inc. 820 Fort Wayne Avenue Indianapolis, IN 46204 317- 667 -2747 KANSAS Valbridge Property Advisors I Sinner Appraisals, Inc. 10990Oul Suite 100 Overland Park, KS 66210 913. 451 -1451 KENTUCKY Valbridge Property Advisors I Allgeler Company 214 South Sth Sheet, Suite 200 Louisville, KY 40202 502- 585 -3651 LOUISIANA Valbridge Property Advisors I Argote, Derbes, Graham, Shuffleld & Tatje, Inc. 512 North Causeway Boulevard Metairie, LA70001 504 -833 -8234 7607 Fern Avenue, Suite 104 Shreveport, LA71105 318 - 797 -0543 MARYLAND Valbridge Property Advisors j Lipman Frizzell & Mitchell LLC 6240 Old Dobbin Lane, Suite 140 Columbia, MD21045 410 - 423 -2300 MASSACHUSETTS Valbrkdge Property Advisors I Bullock Commercial Appraisal, LLC 21 Muzzey Street, Suite 2 Lexington, MA02421 781- 652 -0700 MICHIGAN Valbridge Property Advisors The Oetzel- Hartman Group 2127 University Park Drive, Suite 390 Okemos, Michigan 48864 517 - 336 -0001 MINNESOTA Valbridge Property Advisors I Martell Partners, Inc. 120 South 6th Street, Suite 1650 Minneapolis, MN 55402 612- 253 -0650 NEVADA Valbridge Property Advisors I Lubawy & Associates, Inc. 3034 S. Durango Drive, Suite 100 Las Vegas, NV 89117 702- 242 -9369 NEW JERSEY Valbridge Property Advisors j Oxford Group 2740 Route 10 West, Suite 204 Morris Plains, NJ 07950 973- 970 -9333 2052 Route 35, Suite 104 Wall Township, NJ 07719 732- 807 -3113 NEW YORK Valbridge Property Advisors I Oxford Group 424 West 33rd Street, Suite 630 New York, NY 10001 212 - 268 -1113 NORTH CAROLINA Valbridge Property Advisors I John Bosworth & Associates, LLC 4530 Park Road, Suite 100 Charlotte, NC28209 704- 376 -5400 Valbril Property Advisors I Paramount Appraisal Group, Inc. 412 F_ Chatham Street Cary, NO 27511 919 - 859 -2666 OHIO Valbridge Property Advisors I Allgeier Company 9277 Centre Paint Dr, Suite 350 West Chester, OH 45069 513785 -0820 Valbridge Property Advisors 1655 W Market Street, Suite 130 Akron, OH 44313 330- 899 -9900 526 E. Superior Avenue, Suite 455 Cleveland, OH 44114 216- 367 -9890 OKLAHOMA Valbridge Property Advisors I Walton Property Services, LLC 5668 South Sheridan Road, Suite 104 Tulsa, OK 74133 918- 712 -9992 PENNSYLVANIA Valhridge Property Advisors I Barone, Murtha, Shonberg & Associates, Inc. 4701 Baptist Road, Suite 304 Pittsburgh, PA 15227 412- 881 -6D80 Valbridge Property Advisors I Lukens & Wolf, LLC 150 S Warner Road, Suite 440 King of Prussia, PA 19406 215 -545 -1900 SOUTH CAROLINA Valbridge Property Advisors I Atlantic Appraisals, LLC 800 Main Street, Suite 22C Hilton Head Island, SC 29926 843- 342 -2302 125D Fairmont Avenue Mt, Pleasant, SC 29464 543 -884 -12W Valbridge Property Advisors I Robinson Company 610 N. Main Street Greenville, SC 29601 864 -233 -6277 TENNESSEE Valbridge Property Advisors I R.K' Barnes & Associates, Inc. 112 Westwood Place, Suite 300 Brentwood, TN 37027 615- 369 -0870 Valbridge Property Advisors I C & I Appraisal Services, Inc. 6750 Poplar Avenue, Suite 706 Memphis, TN 38138 901- 753 -6977 Valbridge Property Advisors I Meridian Realty Advisors, LLC 701 Broad Street, Suite 209 Chattanooga, TN 37402 423 -285 -8435 213 Fax Road Knoxville, TN 37922 865 -522 -2424 TEXAS Valbridge Property Advisors I Bugger, Canaday, Grafe, Inc, 111 Soledad, Suite 8DO San Antonio, TX 78205 210 -227 -6229 Valbridge Property Advisors I The Gerald A. Teel Company, Inc. Two Energy Square 4849 Greenville Avenue, Suite 1495 Dallas, TX 75206 214- 446-1611 974 Campbell Road, Suite 204 Houston, TX 77D24 713 - 467 -5856 Valbridge Property Advisors 2731 81st Street Lubbock, TX 79423 806. 744-1188 UTAH Valbridge Property Advisors I Free and Associates, Inc. 260 South 2500 V*s1, Suite 3D1 Pleasant Grove, UT 84062 801 - 492 -9325 1100 East 6500 South, Suite 201 Salt Lake Qty, UT 84121 801- 262 -3388 20 North Main, Suite 304 St Gearge, UT84770 435 -773 -6300 VIRGINIA Valbridge Property Advisors I Axial Advisory Group, LLC 656 Independence Parkway, Suite 220 Chesapeake, VA 23320 757 -41D -1222 7400 Beaulont Springs Drive, Suite 300 Richmond, VA 23225 804 -672 -4473 5107 Center Street, Unit 2B Williamsburg, VA 23186 757 - 345 -0010 WASHINGTON Valbridge Property Advisors I Allen Brackett Shedd 18728 Bothell Way, NF. Suite B Bothell, WA 98011 425- 450 -4040 2927 Colby Avenue, Suite 100 Everett, WA 98201 425 - 258 -2611 419 Berkeley Avenue, Suite Fircrest, WA 98466 253 - 274 -0099 506 Second Avenue, Suite 1001 Seattle, WA 98104 206- 209 -3016 Valbridge Property Advisors I Auble, Jolicoeur & Gentry, Inc. 7601 West CleanvaterAve., Suite 320 Kennewick, WA 99336 509 -221 -1540 324 N. Mullen Road Spokane Valley, WA 99206 509- 747 -0999 WISCONSIN Valbridge Property Advisors I Vitale Realty Advisors, LLC 12660 W. North Avenue Brookfield, WI 53005 262 - 782 -7990 VALBRIDGE PROPERTY ADVISORS I Valbridge Property Advisors I Allen Brackett Shedd Page 59 Review Appraiser's Certificate No.1 From: Joseph H. Granger, Review Appraiser To: Jefferson Co. Water Quality & Environmental Health Parcel: tax # 991200301 in Jefferson Co., WA Owner: Francis Henderson Federal Aid No. unknown Project: Big Quilcene River In Jefferson Co.; Water Quality Acquisition Project Map Sheet: County Assessor's Maps Map Approved/Revised: NA The following appraisals have been made on this larger parcel and are the subject of this Review Certificate #1: APPRAISER VALUE BEFORE AFTER VALUE ALLOCATION NAMES DATE VALUE VALUE DIFFERENCE Taking Damages 1. G.Goodman 5 -14 -2015 $28,000 NA (total take) $28,000 $28,000 NA The following prior Review Certificates have been made on this larger parcel and are the subject of this Review Certificate #1: REVIEWER REVIEW BEFORE AFTER VALUE ALLOCATION NAME DATE VALUE VALUE DIFFERENCE Taking Damages (none) Appraisal Review Comments and Conclusions: Appraisal #1 was received for review on or about 5 -19 -2015; it is referred to herein as "the appraisal ". The subject larger parcel is supported in the appraisal as consisting of the above tax parcel number. It is a 29,088 SF rectangular tract per the County Assessor. The appraisal adequately supports the highest and best use as vacant of this larger parcel as recreation/open space per its current zoning, physical features, environmental and governmental features, title features, location, trends, local demand, and the fact that it is entirely located within a high risk channel migration zone (CMZ), which precludes any development of the site. The larger parcel is currently improved with a dilapidated single wide mobile home of unknown age and size (the County does not differentiate it as either realty or personalty), several dilapidated wood frame sheds, and some fence /yard items that are also in dilapidated condition; all the improvements are of low quality, are in very poor condition, and appear to be abandoned. Thus, none of the buildings would contribute any value to the land and would likely cost several thousand dollars to raze and remove in the minds of the prudent market. However, the power service pole and the septic system would likely contribute some value to a recreational user as temporary hook -ups for RV camping. The contribution value of said power pole and septic items would likely offset the cost to raze and remove the dilapidated buildings in the minds of the prudent market and hence, there are no improvements that contribute any net value to the land. The appraisal problem is a total acquisition of the larger parcel in fee simple title for the above noted project. J. H. Granger, Reviewer Page 1 of 6 Pages Parcel: 991200301 (Henderson in Quilcene) Since the appraisal problem is a planned total acquisition, there are no appraisal issues of severance damages or special benefits to be considered. The appraisal is an appraisal report, also described as a complete appraisal assignment in a summary report, utilizing the WSDOT narrative format and estimating Market Value, which is equivalent to Fair Market Value. Said assignment, report, format, and value type are proper and sufficient in scope to solve the above defined appraisal problem. To estimate the Market Value of the subject's land as though vacant, the appraisal employs a Sales Comparison Approach; no other approach is reasonable or market typical for recreational sites. In this valuation Approach, the appraisal presents, analyzes, and compares four recreational site sales in the vicinity /neighborhood. The reviewer also searched the local/vicinity real estate market and found no more comparable sales than these that are used in the appraisal. The appraisal's comparisons of these market data to the subject are reasonable and consistent, and its conclusion of the subject larger parcel's land value as vacant at $0.95 per SF, or $28,000 (R) for its 29,088 SF, is supported, reasonable, and fits the market evidence. The appraisal assigns no net contribution value to the existing improvements, which is proper and reasonable. Other than assumptions and limiting conditions of a general nature that are commonly found in real estate appraisals, the appraisal contains no extraordinary assumptions or hypothetical conditions (the hazmat extraordinary assumption in the appraisal is a normal assumption, not an extraordinary one). The title report for the subject is adequately analyzed in the appraisal and is included in its addenda. It shows no exceptions that would have a value impact, since existing liens are less than the larger parcel's market value and would be satisfied in closing. There are several minor typographical errors in the appraisal. However, correction of these would not change any value conclusions. The reviewer rounds calculations per the appraisal and the prudent market. There appear to be personalty (chattel) items on the subject property such as the mobile home (realty or personalty?), equipment, vehicles, unattached appliances, building materials, decorative items, furnishings. These are not included herein. There are no known tenant -owned realty items taken or affected. Appraisal #1 is a credible appraisal report per USPAP requirements. The appraisal and this review use the correct methods and techniques. The market data in the appraisal are adequate and appropriate to solve the appraisal problem. The conclusion of value reached in the appraisal and in this review is reasonable and fits the market evidence. J K Granger, Reviewer Page 2 of 6 Pages Parcel. 991200301 (Henderson in Quileene) REVIEWER'S DETERMINATION OF VALUE #1: DETERMINED VALUE BEFORE ACQUISITION: $ 28,000 DETERMINED VALUE AFTER ACQUISITION: $ NA (Total Acquisition) DETERMINED VALUE DIFFERENCE: $ 28,000 ESTIMATED JUST COMPENSATION IS $ 28,000 AS OF 5 -28 -2015 Reviewer's Allocation of Just Compensation: Acquisition: Land Taken in Fee: 29,088 SF @ $0.95 per SF = $ 28,000 (R) Improvements Taken: all buildings and improvements net contribute = $ 0 Damages: NA (total take) _ $ 0 Special Benefits: NA (total take) _ ($ 0) TOTAL Just Compensation this larger parcel = $ 28,000. APPRAISAL REVIEW SALIENT INFORMATION Property Rights Appraised Unless specified otherwise in this review, the property rights appraised constitute the fee simple interest. Date of Value The effective date of the value opinion for the property in this review is 5 -14 -2015. Competency of Reviewer The reviewer has both the knowledge and experience required to competently perform this review; a detailed resume is available upon written request. The reviewer is approved by the Federal Highway Administration (FHWA) and the Washington State Department of Transportation (WSDOT), lead agency for eminent domain appraisal matters, to perform fee appraisal reviews for all public agencies in Washington State. The reviewer is a state certified appraiser with the General classification, #1100549, whose license expires 1 -13 -2016. J. H. Granger, Reviewer Page 3 of 6 Pages Parcel: 991200301 (Henderson in Quilcene) Purpose of this Review Overall, the purpose is to estimate the total Just Compensation due the owner for the taking of privately owned real property for the public project identified. For a total taking, this is done by estimating the Fair Market Value of the subject Larger Parcel. Use of this Review This review estimates Just Compensation due the owner and will be used to establish the first offer amount to be made to the owner by Jefferson County (client). Scope of this Review Those commonly recognized valuation methods and techniques most appropriate for valuing the subject Larger Parcel were done in this review. This review involved a reasonably detailed inspection of the subject property, the subject neighborhood, and surrounding/competing neighborhoods. Sales and listings of competing properties were investigated before any conclusions of value were made. The Income and Cost Approaches to value were not employed in this review because only the Sales Comparison Approach is market typical to solve the subject larger parcel's appraisal problem. Definition of the Larger Parcel The "Larger Parcel" is the parent parcel; it is the real property that is the subject of this review. It is that real property that has Unity of Use, Unity of Ownership, and Contiguity. Definition of Fair Market Value "Fair Market Value" is the amount in cash which a well - informed buyer, willing but not obliged to buy the property, would pay, and which a well - informed seller, willing but not obligated to sell it would accept, taking into consideration all uses to which the property is adapted and might in reason be applied. (Washington Pattern Instruction 150.08). Market Value and Fair Market Value are equivalent. Definition of Cash Equivalent A price expressed in terms of cash (money) as distinguished from a price which is expressed all or partly in terms of the face amount of notes or other securities which cannot be sold at their face amount. Market data in this review are compared to the subject on an all cash basis to satisfy the definition of Fair Market Value. J. K Granger, Reviewer Page 4 of 6 Pages Parcel: 991200301 (Henderson in Quileene) q APPRAISAL REVIEW ASSUMPTIONS and LIMITING CONDITIONS 1. The property description supplied to the reviewer is assumed to be correct; 2. No surveys of the properties have been made by the reviewer and no responsibility is assumed in connection with such matters. Title is assumed merchantable and vested as noted herein; 3. No responsibility is assumed for matters of a legal nature affecting title to the properties, nor is any opinion of title rendered; 4. Information furnished by others is assumed to be true, correct, and reliable. A reasonable effort has been made to verify such information; however, no responsibility for its accuracy is assumed by the reviewer; 5. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless so specified in review. The property is assumed to be under responsible ownership and competent management; 6. It is assumed that there are no hidden or unapparent conditions of the property, its subsoil, or its structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering or testing which may be required to discover them; 7. Unless otherwise stated, the existence of hazardous material, which may or may not be present in or on the property, was not observed by the reviewer. The reviewer has no knowledge of the existence of such materials on or in the property. The reviewer, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea - formaldehyde foam insulation, or other potentially hazardous /toxic materials may affect the value of the property. The value estimate in this review is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for the expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field if desired; 8. Unless otherwise stated, no environmental impact studies were either requested or made in conjunction with this review, and the reviewer hereby reserves the right to alter, amend, revise, or rescind any of the value opinions based upon any subsequent environmental impact studies, research, or investigation; 9. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is specified, defined, and considered in this review; 10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been specified, defined, and considered in this review; 11. It is assumed that all required licenses, consents, or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this review are based; 12. The reviewer will not be required to give testimony or appear in court because of having made this review unless arrangements have been previously made therefor; 13. Possession of this review or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the client without the written consent of the reviewer and in any event, only with properly written qualification and only in its entirety; 14. Neither all nor any part of the contents of this review, or copy thereof, shall be conveyed to the public through advertising, public relations, news, sales, or any other media without written consent and approval of the reviewer. Nor shall the reviewer, client, firm, or professional organization of which the reviewer is a member be identified without the written consent of the reviewer; 15. The liability of the reviewer, employees, and subcontractors is limited to the client only. There is no accountability, obligation, or liability to any other party. If this review is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The reviewer is in no way responsible for any costs incurred to discover or correct any deficiencies in the properties; 16. Acceptance and/or use of this review constitutes acceptance of the foregoing assumptions and limiting conditions. J. H. Granger, Reviewer Page 5 of 6 Pages Parcel: 991200301 (Henderson in Quileene) CERTIFICATE OF REVIEW APPRAISER I, the review appraiser, certify to the best of my knowledge and belief: The facts and data reported by the review appraiser and used in the review process are true and correct. 2. The analyses, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report, and are my personal, unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved in this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this review report. 7. Appraisal #1, my analyses, my opinions, my conclusions, and this review report were all prepared in conformity with: the Uniform Standards of Professional Appraisal Practice (USPAP); the Uniform Appraisal Standards for Federal Land Acquisitions (USFLA); and 49 CFR Part 24. 8. I personally inspected the subject property of the appraisal under review on May 22, 2015 No one provided significant appraisal, appraisal review, or appraisal consulting assistance to the person signing this certificate. Signature: Date Signed: May 28. 2015 Joseph H. Granger, Review Appraiser, Washington State Certified Real Estate Appraiser: General, #1100549 J H. Granger, Reviewer Page 6 of Pages Parcei: 991200301 (Henderson in Quilcene)