HomeMy WebLinkAbout060616_cabs02CABS
615 Sheridan Street
t! r Port Townsend, WA 98368
( / www.JeffersonCounfyPublicHealfh.org
Public Health
June 2, 2016
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
Philip Morley, County Administrator
FROM: Tami Pokorny, Environmental Health Specialist II
Will Butterfield, Public Works Right -of -Way Representative
DATE: June 6, 2016
SUBJECT: Agenda Request: Request for Authorization and Concurrence:
Quilcene Acquisitions 2012 and 2015 Project (RCO #12-1384C
and 15-1189C): Brown, Gallagher, Marie, Phelps and Rundquist
Properties
STATEMENT OF ISSUE:
Environmental Health and Public Works request an opportunity to update the Board about the Quilcene
Acquisitions 2012 Project (RCO #12-1384C) and the Big Quilcene River Floodplain Key Pieces Project
(RCO #15-1189C) and to recommend authorization and concurrence for Public Health to begin
negotiations with the landowners.
ANALYSIS/STRATEGIC 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 and function across the floodplain. Seasonal flooding
impacts adjacent neighborhoods and impedes travel. Flood frequency and severity are projected to worsen
over time due to changing precipitation patterns. Property acquisition is necessary to the implementation of
a restoration design intended to recover fish habitat and reduce flooding of developed areas.
Since the late 1990s, the County and State have worked to acquire key floodplain and estuary properties.
More recently the County partnered with the Hood Canal Salmon Enhancement Group, The Nature
Conservancy, community stakeholders and trustees to develop a design to restore the lower mile of the
river and floodplain.
The Quilcene Acquisitions 2012 Project includes the possible acquisition of the Phelps and Rundquist
properties. The (2015) Big Quilcene River Floodplain Key Pieces Project includes the possible acquisition
of the Gallagher and Marie properties. All of the acquisitions would be from willing sellers. The appraisals
were performed by Rick Wells of ACE Professional Services and reviewed by Jim Price of Appraisal
Group of the Northwest.
Community Health Environmental Health
Developmental Disabilities Water Quality
360-385-9400 360-385-9444
360-385-9401 (f) Always working for a safer and healthier community (f) 360-379-4487
Next steps towards acquisition include offer letters, purchase and sale agreements and due diligence work.
FISCAL IMPACT/COST BENEFIT ANALYSIS:
The costs for the workshop are negligible. The costs to acquire these parcels is being provided by the RCO
Salmon Recovery Funding Board grants (RCO #s 12-1384C and #15-1189C).
RCO #12-1384C Quilcene Acquisitions 2012
RCO #15-1189C Big Quilcene River Floodplain
Key Pieces
Phelps - $10,700
Brown - $43,000
Rund uist - $10,000
Gallagher - $81,000
Total: $20,700
Marie - $84,000
Total : $208,000
Combined total both ants : $228,700
Match for the Quilcene Acquisitions 2012 Project (Phelps and Rundquist) is the value of lands previously
acquired and conserved. Match for the Big Quilcene River Floodplain Key Pieces Project (Brown,
Gallagher and Marie) is provided by Public Works Quilcene Flood Zone Fund. Public Works will apply
for a budget supplemental later this month.
RECOMMENDATION:
Permit JCEH staff member Tami Pokorny to update the Commissioners on the Quilcene Acquisitions 2012
and Big Quilcene River Floodplain Key Pieces Projects. Review attached valuation and project
information, discuss and ask questions, consider recommendation to sign authorization and concurrence
form.
REVIEWED BY:
ilip Morley, CoThty dminist or
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
AUTHORIZATION TO PROCEED WITH
REAL PROPERTY ACQUISITIONS
Quilcene Acquisitions 2012 (RCO #12-1384C) and Big Quilcene River Floodplain Key
Pieces (RCO #15-1189C) Salmon Recovery Projects
Brown, Gallagher, Marie, Phelps and Rundquist Properties
Based on the Review Appraiser Certificates dated May 24, 2016 and June 2, 2016 and the authority
granted below, we hereby establish just compensation and authorize you to make the first offers on
the following parcels:
Parcel Numbers
Just
Compensation
(Offer)
991201101
991201103
$43,000
991200407
$81,000
991200305
991200304
$84,000
991200402
9912004031
$10,700
9912004051
$10,000
Reco endation and Aplproval:
Monte Rein ers
Director, Public Works
Concurrence and Authorization:
G-:L-?�%(p
Date
The Board of County Commissioners of Jefferson County does hereby establish just compensation
as stated above. The Board does hereby indicates its concurrence and gives authorization for the
Department of Public Works in partnership with the Department of Environmental Health to
proceed with the offer, negotiation and acquisition of the above designated properties in accordance
with Right of Way Acquisition Procedures Resolution 05-11, approved February 7, 2011 and the
policies of the Recreation and Conservation Office. This authorization further directs the
1
Big Quilcene Acquisitions — Brown, Gallagher, Marie, Phelps, Rundquist
Departments to execute the documentation to close said transactions and coordinate with the
approved funding sources to pay for acquisition expenses.
Approved By:
JEFFERSON COUNTY BOARD OF COMMISSIONERS
Kathleen Kler, Chair
Phil Johnson, Member
David Sullivan, Member
SEAL:
ATTEST:
Carolyn Avery Date
Clerk of the Board
2
Big Quilcene Acquisitions — Brown, Gallagher, Marie, Phelps, Rundquist
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Appraisal Group of the Northwest LLP
Rockwood Office Park (425) 453-9292
1409140th Place NE, Suite 105 (800) 453-4408
Bellevue, WA 98007-3963 FAX: (425) 455-9740
E -Mail: agnw@appraisalgroupnw.com
APPRAISAL REVIEW
Appraisal File No.:
A-5195
Account Officer:
Phone No.:
Tami Pokorny
Jefferson County Water Quality
360-379-4498
Property:
Single Family Residence and Land
Property Address:
280 Fremont Ave, Quilcene, WA
Interest Appraised:
Fee Simple
Date of Valuation:
February 23, 2016
Appraiser:
Rick D. Wells
Firm:
A.C.E. PS, Inc.
Reviewer:
Phone No:
Date Reviewed:
James B. Price, MAI, SR/WA
(425) 453-9292 x110
June 2, 2016
SCOPE OF REVIEW
Desk Review x Subject Inspection Comp Inspection Verification of Data
Comments: This review is intended to conform to Standard 3 of the Uniform Standards of
Professional Appraisal Practice ("USPAP"), promulgated by the Appraisal
Standards Board of the Appraisal Foundation, which sets the guidelines of an
appraisal review.
A-5195 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 2
INTENDED USE OF REVIEW
This review is intended to analyze the described appraisal report to verify the original
appraiser's valuation.
PURPOSE OF THE REVIEW
The purpose of this review is to evaluate the appraiser's compliance with USPAP
requirements.
COMPENTENCY OF REVIEW
The reviewer has both the knowledge and experience to competently perform this review.
DEFINITION OF MARKET VALUE
"Market Value" is the most probable price, as of a specified date, in cash, or in terms
equivalent to cash, or in other precisely revealed terms, for which the specified property
rights should sell after reasonable exposure in a competitive market under all conditions
requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and
for self-interest, and assuming that neither is under undue duress.
SCOPE OF REVIEW:
The scope of this review included the following procedures:
1. Reading and analyzing the appraisal report;
2. Checking quality and appropriateness of market data in the appraisal;
3. Checking for omitted data or techniques;
4. Checking reasonableness of analysis, adjustments, and conclusions;
5. Checking for conformity to USPAP standards;
6. Checking mathematics for accuracy.
A-5195 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 3
COMMERCIAL APPRAISAL REVIEW CHECKLIST
VALUATION DATA SUMMARY
Property Type
Single Family Residence
Fee Simple - Appraiser's As -Is Value
Reviewer's As -Is Value
$33,000
$43,000
2.
INTRODUCTION YES NO N/A
1
Is Report Addressed to Client?
x
2.
Complete Legal Description
x
3.
Property Rights Appraised
x
4.
1 Assumptions & Limiting Conditions
x
5.
Proper Certification
x
6.
Sales Hi story
x
7.
Proper Definition of Market Value
x
DESCRIPTION AND FACTUAL DATA YES NO N/A
1.
Adequate Area or Neighborhood Description
x
2.
Adequate Description of Site
x
3.
Adequate Description of Improvements
x
A-5195 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 4
ANALYSIS AND CONCLUSIONS YES NO N/A
1.
Highest and Best Use Analysis
x
2.
Land Valuation
x
3.
Cost New Estimate
x
4.
Depreciation Estimate
x
5.
Cost Approach Conclusion
x
6.
Subject Rent and Expense History
x
7.
Market Rent Analysis
x
8.
Expense Analysis
x
9.
Vacancy Analysis
x
10.
Absorption Analysis
x
11.
Income Approach Conclusion
x
12.
Improved Sales Analysis
x
13.
Unit of Comparison Properly Chosen
x
14.
Improved Sales Physical Analysis
x
15.
Sales Comparison Approach Conclusion
x
16.
Property DCF Analysis
x
17.
Leasehold/Leased Fee Analysis
x
18.
Final Reconciliation
x
19.
Exposure Period
x
20.
"As Is" Value Conclusion
x
A-5195 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 5
SUPPLEMENTAL INFORMATION YES NO N/A
1.
Appraisal Instruction Included
x
2.
Appraiser(s) Personally Inspected
x
3.
Appraised Under Cash Equivalent Terms
x
4.
Adequate Exhibits
x
5.
Extraordinary Assumptions
x
6.
Material in the report complete within the scope of work
applicable in the assignment
x
7.
Market data adequate and relevant
x
8.
Are the adjustments to the data appropriate?
x
9.
Are the appraisal methods and techniques appropriate?
x
10.
Are the analyses, opinions, and conclusions of the work
appropriate and reasonable?
x
REVIEWER'S SUMMARY AND COMMENTS
Access to the property is available from Fremont Ave. Public water and electricity are available
to the property although the property uses a well. The site is level and suitable for development.
The property is included in a flood hazard area, but flooding of the property has not occurred in
recent years. The subject property has the potential of being sold as several lots due to the fact
that the land has been platted as seven lots although the small size of the lots, floodplain
limitations, and potential access issues would substantially limit development of additional lots
to two separate parcels. The improved sales considered in this appraisal are either not likely to
be divided into additional lots or are much smaller than the subject property. I have researched
land sales that would provide an indication of the value potential of the subject property.
Three land sales were considered in estimating the additional value of the subject land. The first
sale is a lot on Foothill Drive, Quilcene and about two miles northwest of the subject property.
This property sold on September 18, 2015 for $30,000 and has 20,000 square feet of area. It is
superior in having lake access. It has similar topography and access. A second sale is located at
231 Hazel Point Road, Quilcene. It sold for $27,000 on September 26, 2014 and has an area of
23,129 square feet. It is similar in topography and location, but superior in access. A third sale
is an 11,400 square foot lot that sold on March 25, 2015 for $7,000. This sale is located on Lake
View Drive about 7 '/z miles North of the subject. It is smaller than a potential extra lot from the
subject property.
After considering each of the three land sales, it is my opinion that an additional +$10,000 land
adjustment is warranted for the subject property.
In the sales comparison approach, four building sales were considered. The sales prices of the
properties ranged from $50,000 to $85,000. The sales used were inspected and found to be good
indicators of value.
A-5195 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 6
After reviewing all of the adjusted sales, they indicate a value of $43,000 for the subject. A
deduction was made for cleanup costs of $10,000. This was increased by the reviewer by
$10,000 for the added land value for a final value of $43,000.
In the reviewer's opinion, this appraisal report is:
Acceptable "As Is" _
Acceptable as amended by Appraiser
Acceptable as amended by Reviewer x
Unacceptable
Overall quality of the appraisal report (1 Lowest; 5 Highest):
1. Poor
2. Below Average
3. Average x
4. Above Average
5. Very Good
If you have any further questions, please contact me.
Sincerely,
� es B. Price, MAI, SR/WA
""certification No. 1100229
A-5195 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 7
CERTIFICATION
• The facts and data reported by the review appraiser and used in the review process are
true and correct.
• 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,
impartial and unbiased, professional analyses, opinions, and conclusions.
• 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.
• I have no bias with respect to the property that is the subject of this report or to the
parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
• 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.
• My analyses, opinions, and conclusions were developed, and this review report was
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice
(USPAP) and the Federal Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (FIRREA).
• I have personally made an exterior inspection of the subject property of the report under
review.
• No one provided significant real or personal property appraisal or appraisal review
assistance to the person signing this certification.
• This appraisal review report is based on information and data contained in the appraisal
report which is the subject of the review. Data and information from other sources may
also be considered. If so, it will be identified and noted as such. It is assumed that such
data and information is accurate.
• The reviewer reserves the right to consider new or additional information, which may
subsequently become available, and to revise the opinions and conclusions if this
information indicates the need for change.
• Unless otherwise stated, all assumptions and limiting conditions contained in the
appraisal report (which is the subject of this review) are also conditions of this review.
}
Ja B. Price, MAI, SR/WA
Review Appraiser
June 2, 2016
Washington State General Certified
Appraiser, #1100229, Certified until 6-13-17
A-5195 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 8
ASSUMPTIONS AND LIMITING CONDITIONS
This review is subject to the following conditions and stipulations:
1. No responsibility is assumed for the accuracy of the legal description. Also, no
responsibility is assumed for legal matters or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated.
2. Any liens or encumbrances which may now exist have been disregarded and the property
has been analyzed as though free of indebtedness or restriction unless otherwise stated.
3. The property is reviewed assuming responsible ownership and competent management,
unless otherwise noted. It is assumed that all required licenses, certificates of occupancy, or
other types of consent have been or can be obtained.
4. Information furnished by others is believed to be reliable, but no responsibility for its
accuracy is assumed. Any plot plans, maps, photographs, sketches, drawings, or other
exhibits contained in the report being reviewed are assumed correct. No responsibility is
assumed for the correctness of any of the above items.
5. The reviewer has made no engineering survey of the property and is not aware of the
existence of any, unless specifically mentioned within this review. No responsibility is
assumed for such matters.
6. The reviewer assumes no liability for any structural conditions. It is further assumed that
there are no hidden or unapparent conditions of the property, subsoil, or structures that
render it more or less valuable. The reviewer is not qualified to detect such items.
Subsurface rights, e.g. mineral or oil rights, were not considered in this report.
7. Any proposed improvements are assumed to be completed with appropriate materials and
workmanship. It is also assumed that any and all construction will be completed in a
timely manner.
8. It is assumed the property is in full compliance with all applicable zoning and
environmental regulations unless otherwise stated.
9. It is assumed the utilization of the land and improvements is within the boundaries of the
property described and there is no encroachment or trespass unless noted in the report.
Any allocation of total value between land, building, or any other fractional part or interest
is invalidated if used separately or in conjunction with any other appraisal.
10. The reviewer is not required to give testimony or be in attendance in court with reference
to the subject property unless arrangements have been previously made.
11. This review report shall only be used in its entirety with the original appraisal under
review. Disclosure of the contents of this report is governed by the Uniform Standards of
Professional Appraisal Practice and the By -Laws and Regulations of the Appraisal
Institute. Neither all nor any part of this report shall be disseminated to the public through
advertising, public relations, news, sales, or other media without prior written consent of
the appraiser. No part of this report or any of the conclusions may be released to third
parties without prior written consent of the appraiser.
A-5195 APPRAISAL GROUP OF THE NORTHWEST LLP
QUALIFICATIONS OF APPRAISER
JAMES B. PRICE, MAI, SR/WA
www.APPRAISALGROUPNW.COM ; JPRICE(&APPRAISALGROUPNW.COM
PHONE No.: (425) 453-9292; FAx No. (425) 455-9740
1409140TH PLACE NE, STE 105, BELLEVUE, WA 98007-3963
EDUCATION
Bachelor of Science in Finance, Real Estate Emphasis; Northern Illinois University/
University of Illinois.
Appraisal Institute courses include Capitalization Theory, Residential Valuation, Easement
Valuation, and Standards of Professional Practice.
Seminars and Classes include: Al Course 833- Fundamentals of Separating Real Property,
Personal Property, and Intangible business Assets, Real Estate Feasibility, Business
Valuation, Valuation of Easements and Litigation Skills, Appraising for Pension Funds,
and Appraisal of Partial Acquisitions.
PROFESSIONAL MEMBERSHIPS
Appraisal Institute
Membership: MAI Designated Member of the Appraisal Institute since 1979
Formerly: President, Director, and Vice President, Seattle Chapter and Alaska
Chapter
International Right of Way Association
Designation: SR/WA (Senior Right of Way Agent)
Position: International Right of Way Association Valuation Committee, past
chair
Formerly: Regional Chair, Region 7, International Right of Way Association
International Right of Way Association Director, President, and Vice
President; Seattle, Washington and Fairbanks, Alaska Chapters
EXPERIENCE: Over 43 years
Currently: General Partner, APPRAISAL GROUP OF THE NORTHWEST LLP
Developer of subdivision, office building, and residences
Owner of office buildings and apartments
Formerly: Proprietor, APPRAISAL GROUP OF THE NORTHWEST
Appraiser, Schueler, McKown & Keenan
Partner, Price & Associates, Alaska
Senior Appraiser, First State Bank of Oregon
Appraiser, Pacific First Federal Savings Bank
Appraiser, U.S. Small Business Administration
Appraiser, Washington State Dept. of Transportation
Qualified as an expert witness in Superior Court, Federal Court Master's Hearings, and
Federal Bankruptcy Court. Served as an arbitrator in property valuation and lease renewals.
Washington State Department of Transportation approved appraiser.
Fee reviewer; Washington Dept. of Transportation, major banks, and governmental clients.
Qualified as a Master; held Master's Hearings in Alaska.
Currently certified under the continuing education program of the Appraisal Institute.
Currently certified in Washington State as a General Appraiser (Certificate No. 1100229)
Vice President- Newcastle Trails
A-5195 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review -Page 10
CLIENTS SERVED
Abeyta & Associates, R/W Company
Benson & McLaughlin, Accountants
Boston Private Bank
Bullivant, Houser, Bailey, Pendergrass
& Hoffman;
Bureau of Indian Affairs
Bureau of Land Management
Camp Korey
Cathay Bank
Center Bank
Certified Land Services
Chevron Products Company
Church of God, Western Washington
City of Auburn
City of Bellevue
City of Des Moines
City of Issaquah
City of Kirkland
City of Maple Valley
City of Mount Vernon
City of Newcastle
City of Port Angeles
City of Redmond
City of SeaTac
City of Seattle
City of Shoreline
City of Tacoma
Coldwell Banker Relocation
Columbia Bank
Costco
Eastman, Scott, Attorney, Bellevue
El Centro De La Raza, Felicia Gonzales
Enumclaw Public Schools
First Sound Bank
HDR Engineering
John Lynch, CPA, Bellevue
Johns Monroe Mitsunaga, Attorneys;
Michael Monroe, Darrell Mitsunaga
Keating Bucklin & McCormack,
Attorneys
Kent Schools
KeyBank of Washington
King County Library System
Korea Exchange Bank (KEB)
Lane & Associates, Inc., R/W Company
O. R. Colan Associates, Inc.
(Acquisition Specialists)
Ogden Murphy Wallace, Attorneys
Port of Friday Harbor
Port of Orcas
Port of Seattle
Puget Sound Energy
Reid Middleton, Engineers
Saehan Bank
Seattle City Light
Seattle School District
Sound Transit
Tacoma Utilities
U.S. Bank
U.S. Fidelity & Guarantee
U.S. Postal Service
Union Bank
Universal Field Services, Inc.
Washington Dept. of Transportation -
Approved Appraiser & Reviewer
Washington State Dept. of Natural
Resources
Washington State Parks & Recreation
Commission
Waste Management
Williams Northwest Pipeline
Wilshire Bank
A-5195 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Group of the Northwest LLP
Rockwood Office Park (425) 453-9292
1409140th Place NE, Suite 105 (800) 453-4408
Bellevue, WA 98007-3963 FAX: (425) 455-9740
E -Mail: agnw@appraisalgroupnw.com
APPRAISAL REVIEW
Appraisal File No.:
A-5191
Account Officer:
Phone No.:
Tami Pokorny
Jefferson County Water Quality
360-379-4498
Property:
Single Family Residence
Property Address:
40 Fremont Ave, Quilcene, WA
Interest Appraised:
Fee Simple
Date of Valuation:
February 23, 2016
Appraiser:
Rick D. Wells
Firm:
A.C.E. PS, Inc.
Reviewer:
Phone No:
Date Reviewed:
James B. Price, MAI, SR/WA
(425) 453-9292 x110
May 24, 2016
SCOPE OF REVIEW
Desk Review x Subject Inspection Comp Inspection Verification of Data
Comments: This review is intended to conform to Standard 3 of the Uniform Standards of
Professional Appraisal Practice ("USPAP"), promulgated by the Appraisal
Standards Board of the Appraisal Foundation, which sets the guidelines of an
appraisal review.
A-5191 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 2
INTENDED USE OF REVIEW
This review is intended to analyze the described appraisal report to verify the original
appraiser's valuation.
PURPOSE OF THE REVIEW
The purpose of this review is to evaluate the appraiser's compliance with USPAP
requirements.
COMPENTENCY OF REVIEW
The reviewer has both the knowledge and experience to competently perform this review.
DEFINITION OF MARKET VALUE
"Market Value" is the most probable price, as of a specified date, in cash, or in terms
equivalent to cash, or in other precisely revealed terms, for which the specified property
rights should sell after reasonable exposure in a competitive market under all conditions
requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and
for self-interest, and assuming that neither is under undue duress.
SCOPE OF REVIEW:
The scope of this review included the following procedures:
1. Reading and analyzing the appraisal report;
2. Checking quality and appropriateness of market data in the appraisal;
3. Checking for omitted data or techniques;
4. Checking reasonableness of analysis, adjustments, and conclusions;
5. Checking for conformity to USPAP standards;
6. Checking mathematics for accuracy.
A-5191 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 3
COMMERCIAL APPRAISAL REVIEW CHECKLIST
VALUATION DATA SUMMARY
Property Type
Single Family Land
Fee Simple - Appraiser's As -Is Value
Reviewer's As -Is Value
$24,000
$10,700
2.
INTRODUCTION YES NO N/A
1
Is Report Addressed to Client?
x
2.
Complete Legal Description
x
3.
Property Rights Appraised
x
x
4.
1 Assumptions & Limiting Conditions
x
5.
Proper Certification
x
6.
Sales Hi story
x
7.
Proper Definition of Market Value
x
DESCRIPTION AND FACTUAL DATA YES NO N/A
1.
Adequate Area or Neighborhood Description
x
2.
Adequate Description of Site
x
3.
Adequate Description of Improvements
x
A-5191 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 4
ANALYSIS AND CONCLUSIONS YES NO N/A
1.
Highest and Best Use Analysis
x
2.
Land Valuation
x
3.
Cost New Estimate
x
4.
Depreciation Estimate
x
5.
Cost Approach Conclusion
x
6.
Subject Rent and Expense History
x
7.
Market Rent Analysis
x
8.
Expense Analysis
x
9.
Vacancy Analysis
x
10.
Absorption Analysis
x
11.
Income Approach Conclusion
x
12.
Improved Sales Analysis
x
13.
Unit of Comparison Properly Chosen
x
14.
Improved Sales Physical Analysis
x
15.
Sales Comparison Approach Conclusion
x
16.
Property DCF Analysis
x
17.
Leasehold/Leased Fee Analysis
x
18.
Final Reconciliation
x
19.
Exposure Period
x
20.
"As Is" Value Conclusion
x
A-5191 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 5
SUPPLEMENTAL INFORMATION YES NO N/A
1.
Appraisal Instruction Included
x
2.
Appraiser(s) Personally Inspected
x
3.
Appraised Under Cash Equivalent Terms
x
4.
Adequate Exhibits
x
5.
Extraordinary Assumptions
x
6.
Material in the report complete within the scope of work
applicable in the assignment
x
7.
Market data adequate and relevant
x
8.
Are the adjustments to the data appropriate?
x
9.
Are the appraisal methods and techniques appropriate?
x
10.
Are the analyses, opinions, and conclusions of the work
appropriate and reasonable?
x
REVIEWER'S SUMMARY AND COMMENTS
Access to the property is available from Fremont Ave. Public water and electricity are available
to the property. A septic system for a two bedroom home is installed on the site. The appraiser
made an extraordinary assumption that the septic system was operational. The land is level and
suitable for development. Flooding has occurred to the property during heavy rains. The
improvements on the property are in a very deteriorated condition and have no value. The
appraiser estimated that it would cost $6,000 to clean up the site. Subsequent to completion of
the appraisal a bid has been submitted to the county that the cost of the removal of the
improvements which have asbestos contamination will be $19,301.91. I have deducted $19,300
® from the appraisers uncontaminated value of $30,000 for an "as is" property value of $10,700.
In the sales comparison approach, four land sales were considered. The sales prices of the
properties ranged from $19,400 to $30,000. The sales used were inspected and found to be good
indicators of value.
After reviewing all of the adjusted sales, they indicate a value of $30,000 for the subject which
was reduced by $6,000 for the clean-up cost for a final value of $24,000.
The appraiser later added an Offer of Accompaniment that an attempt was made to inspect the
property with the owner.
A-5191 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 6
In the reviewer's opinion, this appraisal report is:
Acceptable "As Is" _
Acceptable as amended by Appraiser _
Acceptable as amended by Reviewer x
Unacceptable
Overall quality of the appraisal report (1 Lowest; 5 Highest):
1. Poor
2. Below Average
3. Average
4. Above Average
5. Very Good
If you have any further questions, please contact me.
Sincerely,
4II'll s B. Price MAI SR/WA
ertification No. 1100229
A-5191 APPRAISAL GROUP OF THE NORTHWEST LLP
x
Appraisal Review - Page 7
CERTIFICATION
• The facts and data reported by the review appraiser and used in the review process are
true and correct.
• 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,
impartial and unbiased, professional analyses, opinions, and conclusions.
• 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.
• I have no bias with respect to the property that is the subject of this report or to the
parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
• 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.
• My analyses, opinions, and conclusions were developed, and this review report was
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice
(USPAP) and the Federal Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (FIRREA).
• I have personally made an exterior inspection of the subject property of the report under
review.
• No one provided significant real or personal property appraisal or appraisal review
assistance to the person signing this certification.
• This appraisal review report is based on information and data contained in the appraisal
report which is the subject of the review. Data and information from other sources may
also be considered. If so, it will be identified and noted as such. It is assumed that such
data and information is accurate.
• The reviewer reserves the right to consider new or additional information, which may
subsequently become available, and to revise the opinions and conclusions if this
information indicates the need for change.
• Unless otherwise stated, all assumptions and limiting conditions contained in the
appraisal report (which is the subject of this review) are also conditions of this review.
}
Ja B. Price, MAI, SR/WA
Review Appraiser
May 24, 2016
Washington State General Certified
Appraiser, #1100229, Certified until 6-13-17
A-5191 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 8
ASSUMPTIONS AND LIMITING CONDITIONS
This review is subject to the following conditions and stipulations:
1. No responsibility is assumed for the accuracy of the legal description. Also, no
responsibility is assumed for legal matters or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated.
2. Any liens or encumbrances which may now exist have been disregarded and the property
has been analyzed as though free of indebtedness or restriction unless otherwise stated.
3. The property is reviewed assuming responsible ownership and competent management,
unless otherwise noted. It is assumed that all required licenses, certificates of occupancy, or
other types of consent have been or can be obtained.
4. Information furnished by others is believed to be reliable, but no responsibility for its
accuracy is assumed. Any plot plans, maps, photographs, sketches, drawings, or other
exhibits contained in the report being reviewed are assumed correct. No responsibility is
assumed for the correctness of any of the above items.
5. The reviewer has made no engineering survey of the property and is not aware of the
existence of any, unless specifically mentioned within this review. No responsibility is
assumed for such matters.
6. The reviewer assumes no liability for any structural conditions. It is further assumed that
there are no hidden or unapparent conditions of the property, subsoil, or structures that
render it more or less valuable. The reviewer is not qualified to detect such items.
Subsurface rights, e.g. mineral or oil rights, were not considered in this report.
7. Any proposed improvements are assumed to be completed with appropriate materials and
workmanship. It is also assumed that any and all construction will be completed in a
timely manner.
8. It is assumed the property is in full compliance with all applicable zoning and
environmental regulations unless otherwise stated.
9. It is assumed the utilization of the land and improvements is within the boundaries of the
property described and there is no encroachment or trespass unless noted in the report.
Any allocation of total value between land, building, or any other fractional part or interest
is invalidated if used separately or in conjunction with any other appraisal.
10. The reviewer is not required to give testimony or be in attendance in court with reference
to the subject property unless arrangements have been previously made.
11. This review report shall only be used in its entirety with the original appraisal under
review. Disclosure of the contents of this report is governed by the Uniform Standards of
Professional Appraisal Practice and the By -Laws and Regulations of the Appraisal
Institute. Neither all nor any part of this report shall be disseminated to the public through
advertising, public relations, news, sales, or other media without prior written consent of
the appraiser. No part of this report or any of the conclusions may be released to third
parties without prior written consent of the appraiser.
A-5191 APPRAISAL GROUP OF THE NORTHWEST LLP
QUALIFICATIONS OF APPRAISER
JAMES B. PRICE, MAI, SR/WA
www.APPRAISALGROUPNW.COM ; JPRICE(&APPRAISALGROUPNW.COM
PHONE No.: (425) 453-9292; FAx No. (425) 455-9740
1409140TH PLACE NE, STE 105, BELLEVUE, WA 98007-3963
EDUCATION
Bachelor of Science in Finance, Real Estate Emphasis; Northern Illinois University/
University of Illinois.
Appraisal Institute courses include Capitalization Theory, Residential Valuation, Easement
Valuation, and Standards of Professional Practice.
Seminars and Classes include: Al Course 833- Fundamentals of Separating Real Property,
Personal Property, and Intangible business Assets, Real Estate Feasibility, Business
Valuation, Valuation of Easements and Litigation Skills, Appraising for Pension Funds,
and Appraisal of Partial Acquisitions.
PROFESSIONAL MEMBERSHIPS
Appraisal Institute
Membership: MAI Designated Member of the Appraisal Institute since 1979
Formerly: President, Director, and Vice President, Seattle Chapter and Alaska
Chapter
International Right of Way Association
Designation: SR/WA (Senior Right of Way Agent)
Position: International Right of Way Association Valuation Committee, past
chair
Formerly: Regional Chair, Region 7, International Right of Way Association
International Right of Way Association Director, President, and Vice
President; Seattle, Washington and Fairbanks, Alaska Chapters
EXPERIENCE: Over 43 years
Currently: General Partner, APPRAISAL GROUP OF THE NORTHWEST LLP
Developer of subdivision, office building, and residences
Owner of office buildings and apartments
Formerly: Proprietor, APPRAISAL GROUP OF THE NORTHWEST
Appraiser, Schueler, McKown & Keenan
Partner, Price & Associates, Alaska
Senior Appraiser, First State Bank of Oregon
Appraiser, Pacific First Federal Savings Bank
Appraiser, U.S. Small Business Administration
Appraiser, Washington State Dept. of Transportation
Qualified as an expert witness in Superior Court, Federal Court Master's Hearings, and
Federal Bankruptcy Court. Served as an arbitrator in property valuation and lease renewals.
Washington State Department of Transportation approved appraiser.
Fee reviewer; Washington Dept. of Transportation, major banks, and governmental clients.
Qualified as a Master; held Master's Hearings in Alaska.
Currently certified under the continuing education program of the Appraisal Institute.
Currently certified in Washington State as a General Appraiser (Certificate No. 1100229)
Vice President- Newcastle Trails
A-5191 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review -Page 10
CLIENTS SERVED
Abeyta & Associates, R/W Company
Benson & McLaughlin, Accountants
Boston Private Bank
Bullivant, Houser, Bailey, Pendergrass
& Hoffman;
Bureau of Indian Affairs
Bureau of Land Management
Camp Korey
Cathay Bank
Center Bank
Certified Land Services
Chevron Products Company
Church of God, Western Washington
City of Auburn
City of Bellevue
City of Des Moines
City of Issaquah
City of Kirkland
City of Maple Valley
City of Mount Vernon
City of Newcastle
City of Port Angeles
City of Redmond
City of SeaTac
City of Seattle
City of Shoreline
City of Tacoma
Coldwell Banker Relocation
Columbia Bank
Costco
Eastman, Scott, Attorney, Bellevue
El Centro De La Raza, Felicia Gonzales
Enumclaw Public Schools
First Sound Bank
HDR Engineering
John Lynch, CPA, Bellevue
Johns Monroe Mitsunaga, Attorneys;
Michael Monroe, Darrell Mitsunaga
Keating Bucklin & McCormack,
Attorneys
Kent Schools
KeyBank of Washington
King County Library System
Korea Exchange Bank (KEB)
Lane & Associates, Inc., R/W Company
O. R. Colan Associates, Inc.
(Acquisition Specialists)
Ogden Murphy Wallace, Attorneys
Port of Friday Harbor
Port of Orcas
Port of Seattle
Puget Sound Energy
Reid Middleton, Engineers
Saehan Bank
Seattle City Light
Seattle School District
Sound Transit
Tacoma Utilities
U.S. Bank
U.S. Fidelity & Guarantee
U.S. Postal Service
Union Bank
Universal Field Services, Inc.
Washington Dept. of Transportation -
Approved Appraiser & Reviewer
Washington State Dept. of Natural
Resources
Washington State Parks & Recreation
Commission
Waste Management
Williams Northwest Pipeline
Wilshire Bank
A-5191 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Group of the Northwest LLP
Rockwood Office Park (425) 453 9292
1409 1401h Place NE, Suite 105 (800)453 4408
Bellevue, WA 98007 3963 FAX: (425) 455 9740
E Mail: agnw(i�appraisalgroupnwxoni
APPRAISAL REVIEW
Appraisal File No.:
A-5192
Account Officer:
Phone No.:
Tami Pokorny
Jefferson County Water Quality
360-379-4498
Property:
Single Family Land
Property Address:
XX Fremont Ave, Quilcene, WA
Interest Appraised:
Fee Simple
Date of Valuation:
February 23, 2016
Appraiser:
Rick D. Wells
Finn:
A.C.E. PS, Inc.
Reviewer:
Phone No:
Date Reviewed:
James B. Price, MAI, SR/WA
(425) 453-9292 x110
May 24, 2016
SCOPE OF REVIEW
Desk Review x Subject Inspection Comp Inspection Verification of Data
Comments: This review is intended to conform to Standard 3 of the Uniform Standards of
Professional Appraisal Practice ("USPAP"), promulgated by the Appraisal
Standards Board of the Appraisal Foundation, which sets the guidelines of an
appraisal review.
A-5192 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 2
INTENDED USE OF REVIEW
This review is intended to analyze the described appraisal report to verify the original
appraiser's valuation.
PURPOSE OF THE REVIEW
The purpose of this review is to evaluate the appraiser's compliance with USPAP
requirements.
COMPENTENCY OF REVIEW
The reviewer has both the knowledge and experience to competently perform this review.
DEFINITION OF MARKET VALUE
"Market Value" is the most probable price, as of a specified date, in cash, or in terms
equivalent to cash, or in other precisely revealed terms, for which the specified property
rights should sell after reasonable exposure in a competitive market under all conditions
requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and
for self-interest, and assuming that neither is under undue duress.
SCOPE OF REVIEW:
The scope of this review included the following procedures:
1. Reading and analyzing the appraisal report;
2. Checking quality and appropriateness of market data in the appraisal;
3. Checking for omitted data or techniques;
4. Checking reasonableness of analysis, adjustments, and conclusions;
5. Checking for conformity to USPAP standards;
6. Checking mathematics for accuracy.
A-5192 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 3
COMMERCIAL APPRAISAL REVIEW CHECKLIST
VALUATION DATA SUMMARY
Property Type
Single Family Land
Fee Simple - Appraiser's As -Is Value
Reviewer's As -Is Value
$10,000
$10,000
2.
INTRODUCTION YES NO N/A
1
Is Report Addressed to Client?
x
2.
Complete Legal Description
x
3.
Property Rights Appraised
x
x
4.
1 Assumptions & Limiting Conditions
x
5.
Proper Certification
x
6.
Sales Hi story
x
7.
Proper Definition of Market Value
x
DESCRIPTION AND FACTUAL DATA YES NO N/A
1.
Adequate Area or Neighborhood Description
x
2.
Adequate Description of Site
x
3.
Adequate Description of Improvements
x
A-5192 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 4
ANALYSIS AND CONCLUSIONS YES NO N/A
1.
Highest and Best Use Analysis
x
2.
Land Valuation
x
3.
Cost New Estimate
x
4.
Depreciation Estimate
x
5.
Cost Approach Conclusion
x
6.
Subject Rent and Expense History
x
7.
Market Rent Analysis
x
8.
Expense Analysis
x
9.
Vacancy Analysis
x
10.
Absorption Analysis
x
11.
Income Approach Conclusion
x
12.
Improved Sales Analysis
x
13.
Unit of Comparison Properly Chosen
x
14.
Improved Sales Physical Analysis
x
15.
Sales Comparison Approach Conclusion
x
16.
Property DCF Analysis
x
17.
Leasehold/Leased Fee Analysis
x
18.
Final Reconciliation
x
19.
Exposure Period
x
20.
"As Is" Value Conclusion
x
A-5192 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 5
SUPPLEMENTAL INFORMATION YES NO N/A
1.
Appraisal Instruction Included
x
2.
Appraiser(s) Personally Inspected
x
3.
Appraised Under Cash Equivalent Terms
x
4.
Adequate Exhibits
x
5.
Extraordinary Assumptions
x
6.
Material in the report complete within the scope of work
applicable in the assignment
x
7.
Market data adequate and relevant
x
8.
Are the adjustments to the data appropriate?
x
9.
Are the appraisal methods and techniques appropriate?
x
10.
Are the analyses, opinions, and conclusions of the work
appropriate and reasonable?
x
REVIEWER'S SUMMARY AND COMMENTS
Access to the property is available from Fremont Ave. Public water and electricity are available
to the property. A well has been installed on the site. The appraiser made an extraordinary
assumption that the well was operational. The land is level and suitable for development.
Flooding has occurred to the property during heavy rains. There are no building improvements
on the property.
In the sales comparison approach, four land sales were considered. The sales prices of the
properties ranged from $6,000 to $12,000. The sales used were inspected and found to be good
indicators of value.
After reviewing all of the adjusted sales, they indicate a value of $10,000 for the subject.
The appraiser later added an Offer of Accompaniment that an attempt was made to inspect the
property with the owner.
A-5192 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 6
In the reviewer's opinion, this appraisal report is:
Acceptable "As Is" x
Acceptable as amended by Appraiser _
Acceptable as amended by Reviewer _
Unacceptable
Overall quality of the appraisal report (1 Lowest; 5 Highest):
1. Poor
2. Below Average
3. Average
4. Above Average
5. Very Good
If you have any further questions, please contact me.
Sincerely,
�f
Crhes B. Price, MAI, SR/WA
ertification No. 1100229
A-5192 APPRAISAL GROUP OF THE NORTHWEST LLP
x
Appraisal Review - Page 7
CERTIFICATION
• The facts and data reported by the review appraiser and used in the review process are
true and correct.
• 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,
impartial and unbiased, professional analyses, opinions, and conclusions.
• 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.
• I have no bias with respect to the property that is the subject of this report or to the
parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
• 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.
• My analyses, opinions, and conclusions were developed, and this review report was
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice
(USPAP) and the Federal Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (FIRREA).
• I have personally made an exterior inspection of the subject property of the report under
review.
• No one provided significant real or personal property appraisal or appraisal review
assistance to the person signing this certification.
• This appraisal review report is based on information and data contained in the appraisal
report which is the subject of the review. Data and information from other sources may
also be considered. If so, it will be identified and noted as such. It is assumed that such
data and information is accurate.
• The reviewer reserves the right to consider new or additional information, which may
subsequently become available, and to revise the opinions and conclusions if this
information indicates the need for change.
• Unless otherwise stated, all assumptions and limiting conditions contained in the
appraisal report (which is the subject of this review) are also conditions of this review.
Jarmo B. Price, MAI, SR/WA
Review Appraiser
May 24, 2016
Washington State General Certified
Appraiser, #1100229, Certified until 6-13-17
A-5192 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 8
ASSUMPTIONS AND LIMITING CONDITIONS
This review is subject to the following conditions and stipulations:
1. No responsibility is assumed for the accuracy of the legal description. Also, no
responsibility is assumed for legal matters or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated.
2. Any liens or encumbrances which may now exist have been disregarded and the property
has been analyzed as though free of indebtedness or restriction unless otherwise stated.
3. The property is reviewed assuming responsible ownership and competent management,
unless otherwise noted. It is assumed that all required licenses, certificates of occupancy, or
other types of consent have been or can be obtained.
4. Information furnished by others is believed to be reliable, but no responsibility for its
accuracy is assumed. Any plot plans, maps, photographs, sketches, drawings, or other
exhibits contained in the report being reviewed are assumed correct. No responsibility is
assumed for the correctness of any of the above items.
5. The reviewer has made no engineering survey of the property and is not aware of the
existence of any, unless specifically mentioned within this review. No responsibility is
assumed for such matters.
6. The reviewer assumes no liability for any structural conditions. It is further assumed that
there are no hidden or unapparent conditions of the property, subsoil, or structures that
render it more or less valuable. The reviewer is not qualified to detect such items.
Subsurface rights, e.g. mineral or oil rights, were not considered in this report.
7. Any proposed improvements are assumed to be completed with appropriate materials and
workmanship. It is also assumed that any and all construction will be completed in a
timely manner.
8. It is assumed the property is in full compliance with all applicable zoning and
environmental regulations unless otherwise stated.
9. It is assumed the utilization of the land and improvements is within the boundaries of the
property described and there is no encroachment or trespass unless noted in the report.
Any allocation of total value between land, building, or any other fractional part or interest
is invalidated if used separately or in conjunction with any other appraisal.
10. The reviewer is not required to give testimony or be in attendance in court with reference
to the subject property unless arrangements have been previously made.
11. This review report shall only be used in its entirety with the original appraisal under
review. Disclosure of the contents of this report is governed by the Uniform Standards of
Professional Appraisal Practice and the By -Laws and Regulations of the Appraisal
Institute. Neither all nor any part of this report shall be disseminated to the public through
advertising, public relations, news, sales or other media without prior written consent of the
appraiser. No part of this report or any of the conclusions may be released to third parties
without prior written consent of the appraiser.
A-5192 APPRAISAL GROUP OF THE NORTHWEST LLP
QUALIFICATIONS OF APPRAISER
JAMES B. PRICE, MAI, SR/WA
www.APPRAISALGROUPNW.COM ; JPRICEL&APPRAISALGROUPNW.COM
PHONE No.: (425) 453-9292; FAx No. (425) 455-9740
1409140TH PLACE NE, STE 105, BELLEVUE, WA 98007-3963
EDUCATION
Bachelor of Science in Finance, Real Estate Emphasis; Northern Illinois University/
University of Illinois.
Appraisal Institute courses include Capitalization Theory, Residential Valuation, Easement
Valuation, and Standards of Professional Practice.
Seminars and Classes include: Al Course 833- Fundamentals of Separating Real Property,
Personal Property, and Intangible business Assets, Real Estate Feasibility, Business
Valuation, Valuation of Easements and Litigation Skills, Appraising for Pension Funds,
and Appraisal of Partial Acquisitions.
PROFESSIONAL MEMBERSHIPS
Appraisal Institute
Membership: MAI Designated Member of the Appraisal Institute since 1979
Formerly: President, Director, and Vice President, Seattle Chapter and Alaska
Chapter
International Right of Way Association
Designation: SR/WA (Senior Right of Way Agent)
Position: International Right of Way Association Valuation Committee, past
chair
Formerly: Regional Chair, Region 7, International Right of Way Association
International Right of Way Association Director, President, and Vice
President; Seattle, Washington and Fairbanks, Alaska Chapters
EXPERIENCE: Over 43 years
Currently: General Partner, APPRAISAL GROUP OF THE NORTHWEST LLP
Developer of subdivision, office building, and residences
Owner of office buildings and apartments
Formerly: Proprietor, APPRAISAL GROUP OF THE NORTHWEST
Appraiser, Schueler, McKown & Keenan
Partner, Price & Associates, Alaska
Senior Appraiser, First State Bank of Oregon
Appraiser, Pacific First Federal Savings Bank
Appraiser, U.S. Small Business Administration
Appraiser, Washington State Dept. of Transportation
Qualified as an expert witness in Superior Court, Federal Court Master's Hearings, and
Federal Bankruptcy Court. Served as an arbitrator in property valuation and lease renewals.
Washington State Department of Transportation approved appraiser.
Fee reviewer; Washington Dept. of Transportation, major banks, and governmental clients.
Qualified as a Master; held Master's Hearings in Alaska.
Currently certified under the continuing education program of the Appraisal Institute.
Currently certified in Washington State as a General Appraiser (Certificate No. 1100229)
Vice President- Newcastle Trails
A-5192 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review -Page 10
CLIENTS SERVED
Abeyta & Associates, R/W Company
Benson & McLaughlin, Accountants
Boston Private Bank
Bullivant, Houser, Bailey, Pendergrass
& Hoffman;
Bureau of Indian Affairs
Bureau of Land Management
Camp Korey
Cathay Bank
Center Bank
Certified Land Services
Chevron Products Company
Church of God, Western Washington
City of Auburn
City of Bellevue
City of Des Moines
City of Issaquah
City of Kirkland
City of Maple Valley
City of Mount Vernon
City of Newcastle
City of Port Angeles
City of Redmond
City of SeaTac
City of Seattle
City of Shoreline
City of Tacoma
Coldwell Banker Relocation
Columbia Bank
Costco
Eastman, Scott, Attorney, Bellevue
El Centro De La Raza, Felicia Gonzales
Enumclaw Public Schools
First Sound Bank
HDR Engineering
John Lynch, CPA, Bellevue
Johns Monroe Mitsunaga, Attorneys;
Michael Monroe, Darrell Mitsunaga
Keating Bucklin & McCormack,
Attorneys
Kent Schools
KeyBank of Washington
King County Library System
Korea Exchange Bank (KEB)
Lane & Associates, Inc., R/W Company
O. R. Colan Associates, Inc.
(Acquisition Specialists)
Ogden Murphy Wallace, Attorneys
Port of Friday Harbor
Port of Orcas
Port of Seattle
Puget Sound Energy
Reid Middleton, Engineers
Saehan Bank
Seattle City Light
Seattle School District
Sound Transit
Tacoma Utilities
U.S. Bank
U.S. Fidelity & Guarantee
U.S. Postal Service
Union Bank
Universal Field Services, Inc.
Washington Dept. of Transportation -
Approved Appraiser & Reviewer
Washington State Dept. of Natural
Resources
Washington State Parks & Recreation
Commission
Waste Management
Williams Northwest Pipeline
Wilshire Bank
A-5192 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Group of the Northwest LLP
Rockwood Office Park (425) 453-9292
1409140th Place NE, Suite 105 (800) 453-4408
Bellevue, WA 98007-3963 FAX: (425) 455-9740
E -Mail: agnw@appraisalgroupnw.com
APPRAISAL REVIEW
Appraisal File No.:
A-5193
Account Officer:
Phone No.:
Tami Pokorny
Jefferson County Water Quality
360-379-4498
Property:
Single Family Residence
Property Address:
161 Rodgers St, Quilcene, WA
Interest Appraised:
Fee Simple
Date of Valuation:
February 23, 2016
Appraiser:
Rick D. Wells
Firm:
A.C.E. PS, Inc.
Reviewer:
Phone No:
Date Reviewed:
James B. Price, MAI, SR/WA
(425) 453-9292 x110
May 24, 2016
SCOPE OF REVIEW
Desk Review x Subject Inspection Comp Inspection Verification of Data
Comments: This review is intended to conform to Standard 3 of the Uniform Standards of
Professional Appraisal Practice ("USPAP"), promulgated by the Appraisal
Standards Board of the Appraisal Foundation, which sets the guidelines of an
appraisal review.
A-5193 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 2
INTENDED USE OF REVIEW
This review is intended to analyze the described appraisal report to verify the original
appraiser's valuation.
PURPOSE OF THE REVIEW
The purpose of this review is to evaluate the appraiser's compliance with USPAP
requirements.
COMPENTENCY OF REVIEW
The reviewer has both the knowledge and experience to competently perform this review.
DEFINITION OF MARKET VALUE
"Market Value" is the most probable price, as of a specified date, in cash, or in terms
equivalent to cash, or in other precisely revealed terms, for which the specified property
rights should sell after reasonable exposure in a competitive market under all conditions
requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and
for self-interest, and assuming that neither is under undue duress.
SCOPE OF REVIEW:
The scope of this review included the following procedures:
1. Reading and analyzing the appraisal report;
2. Checking quality and appropriateness of market data in the appraisal;
3. Checking for omitted data or techniques;
4. Checking reasonableness of analysis, adjustments, and conclusions;
5. Checking for conformity to USPAP standards;
6. Checking mathematics for accuracy.
A-5193 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 3
COMMERCIAL APPRAISAL REVIEW CHECKLIST
VALUATION DATA SUMMARY
Property Type
Single Family Residence
Fee Simple - Appraiser's As -Is Value
Reviewer's As -Is Value
$75,000
$81,000
2.
INTRODUCTION YES NO N/A
1
Is Report Addressed to Client?
x
2.
Complete Legal Description
x
3.
Property Rights Appraised
x
4.
1 Assumptions & Limiting Conditions
x
5.
Proper Certification
x
6.
Sales Hi story
x
7.
Proper Definition of Market Value
x
DESCRIPTION AND FACTUAL DATA YES NO N/A
1.
Adequate Area or Neighborhood Description
x
2.
Adequate Description of Site
x
3.
Adequate Description of Improvements
x
A-5193 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 4
ANALYSIS AND CONCLUSIONS YES NO N/A
1.
Highest and Best Use Analysis
x
2.
Land Valuation
x
3.
Cost New Estimate
x
4.
Depreciation Estimate
x
5.
Cost Approach Conclusion
x
6.
Subject Rent and Expense History
x
7.
Market Rent Analysis
x
8.
Expense Analysis
x
9.
Vacancy Analysis
x
10.
Absorption Analysis
x
11.
Income Approach Conclusion
x
12.
Improved Sales Analysis
x
13.
Unit of Comparison Properly Chosen
x
14.
Improved Sales Physical Analysis
x
15.
Sales Comparison Approach Conclusion
x
16.
Property DCF Analysis
x
17.
Leasehold/Leased Fee Analysis
x
18.
Final Reconciliation
x
19.
Exposure Period
x
20.
"As Is" Value Conclusion
x
A-5193 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 5
SUPPLEMENTAL INFORMATION YES NO N/A
1.
Appraisal Instruction Included
x
2.
Appraiser(s) Personally Inspected
x
3.
Appraised Under Cash Equivalent Terms
x
4.
Adequate Exhibits
x
5.
Extraordinary Assumptions
x
6.
Material in the report complete within the scope of work
applicable in the assignment
x
7.
Market data adequate and relevant
x
8.
Are the adjustments to the data appropriate?
x
9.
Are the appraisal methods and techniques appropriate?
x
10.
Are the analyses, opinions, and conclusions of the work
appropriate and reasonable?
x
REVIEWER'S SUMMARY AND COMMENTS
Access to the property is available from Rodgers St. Public water and electricity are available to
the property. The reviewer has considered the cost of installing city water to the property that
was unknown by the appraiser. The $6,000 cost of connecting public water justified the
reviewer increasing the property value by $6,000. The site is level and suitable for development.
Flooding has occurred to the property during heavy rains. The home has a number of items of
deferred maintenance, including a leaking and worn out roof and missing exterior shingles. The
carpeting is in need of replacement throughout the home. The appraiser listed the quality of
construction and condition as fair due to an older roof, uneven floors, and interior finishes that
are not completed.
In the sales comparison approach, four building sales were considered. The sales prices of the
properties ranged from $50,000 to $85,000. The sales used were inspected and found to be good
indicators of value.
After reviewing all of the adjusted sales, they indicate a value of $75,000 for the subject which
was increased by the reviewer for the added public water for a final value of $81,000.
A-5193 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 6
In the reviewer's opinion, this appraisal report is:
Acceptable "As Is" _
Acceptable as amended by Appraiser x
Acceptable as amended by Reviewer _
Unacceptable
Overall quality of the appraisal report (1 Lowest; 5 Highest):
1. Poor
2. Below Average
3. Average
4. Above Average
5. Very Good
If you have any further questions, please contact me.
Sincerely,
4II'll s B. Price MAI SR/WA
ertification No. 1100229
A-5193 APPRAISAL GROUP OF THE NORTHWEST LLP
x
Appraisal Review - Page 7
CERTIFICATION
• The facts and data reported by the review appraiser and used in the review process are
true and correct.
• 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,
impartial and unbiased, professional analyses, opinions, and conclusions.
• 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.
• I have no bias with respect to the property that is the subject of this report or to the
parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
• 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.
• My analyses, opinions, and conclusions were developed, and this review report was
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice
(USPAP) and the Federal Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (FIRREA).
• I have personally made an exterior inspection of the subject property of the report under
review.
• No one provided significant real or personal property appraisal or appraisal review
assistance to the person signing this certification.
• This appraisal review report is based on information and data contained in the appraisal
report which is the subject of the review. Data and information from other sources may
also be considered. If so, it will be identified and noted as such. It is assumed that such
data and information is accurate.
• The reviewer reserves the right to consider new or additional information, which may
subsequently become available, and to revise the opinions and conclusions if this
information indicates the need for change.
• Unless otherwise stated, all assumptions and limiting conditions contained in the
appraisal report (which is the subject of this review) are also conditions of this review.
}
Ja B. Price, MAI, SR/WA
Review Appraiser
May 24, 2016
Washington State General Certified
Appraiser, #1100229, Certified until 6-13-17
A-5193 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 8
ASSUMPTIONS AND LIMITING CONDITIONS
This review is subject to the following conditions and stipulations:
1. No responsibility is assumed for the accuracy of the legal description. Also, no
responsibility is assumed for legal matters or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated.
2. Any liens or encumbrances which may now exist have been disregarded and the property
has been analyzed as though free of indebtedness or restriction unless otherwise stated.
3. The property is reviewed assuming responsible ownership and competent management,
unless otherwise noted. It is assumed that all required licenses, certificates of occupancy, or
other types of consent have been or can be obtained.
4. Information furnished by others is believed to be reliable, but no responsibility for its
accuracy is assumed. Any plot plans, maps, photographs, sketches, drawings, or other
exhibits contained in the report being reviewed are assumed correct. No responsibility is
assumed for the correctness of any of the above items.
5. The reviewer has made no engineering survey of the property and is not aware of the
existence of any, unless specifically mentioned within this review. No responsibility is
assumed for such matters.
6. The reviewer assumes no liability for any structural conditions. It is further assumed that
there are no hidden or unapparent conditions of the property, subsoil, or structures that
render it more or less valuable. The reviewer is not qualified to detect such items.
Subsurface rights, e.g. mineral or oil rights, were not considered in this report.
7. Any proposed improvements are assumed to be completed with appropriate materials and
workmanship. It is also assumed that any and all construction will be completed in a
timely manner.
8. It is assumed the property is in full compliance with all applicable zoning and
environmental regulations unless otherwise stated.
9. It is assumed the utilization of the land and improvements is within the boundaries of the
property described and there is no encroachment or trespass unless noted in the report.
Any allocation of total value between land, building, or any other fractional part or interest
is invalidated if used separately or in conjunction with any other appraisal.
10. The reviewer is not required to give testimony or be in attendance in court with reference
to the subject property unless arrangements have been previously made.
11. This review report shall only be used in its entirety with the original appraisal under
review. Disclosure of the contents of this report is governed by the Uniform Standards of
Professional Appraisal Practice and the By -Laws and Regulations of the Appraisal
Institute. Neither all nor any part of this report shall be disseminated to the public through
advertising, public relations, news, sales, or other media without prior written consent of
the appraiser. No part of this report or any of the conclusions may be released to third
parties without prior written consent of the appraiser.
A-5193 APPRAISAL GROUP OF THE NORTHWEST LLP
QUALIFICATIONS OF APPRAISER
JAMES B. PRICE, MAI, SR/WA
www.APPRAISALGROUPNW.COM ; JPRICE(&APPRAISALGROUPNW.COM
PHONE No.: (425) 453-9292; FAx No. (425) 455-9740
1409140TH PLACE NE, STE 105, BELLEVUE, WA 98007-3963
EDUCATION
Bachelor of Science in Finance, Real Estate Emphasis; Northern Illinois University/
University of Illinois.
Appraisal Institute courses include Capitalization Theory, Residential Valuation, Easement
Valuation, and Standards of Professional Practice.
Seminars and Classes include: Al Course 833- Fundamentals of Separating Real Property,
Personal Property, and Intangible business Assets, Real Estate Feasibility, Business
Valuation, Valuation of Easements and Litigation Skills, Appraising for Pension Funds,
and Appraisal of Partial Acquisitions.
PROFESSIONAL MEMBERSHIPS
Appraisal Institute
Membership: MAI Designated Member of the Appraisal Institute since 1979
Formerly: President, Director, and Vice President, Seattle Chapter and Alaska
Chapter
International Right of Way Association
Designation: SR/WA (Senior Right of Way Agent)
Position: International Right of Way Association Valuation Committee, past
chair
Formerly: Regional Chair, Region 7, International Right of Way Association
International Right of Way Association Director, President, and Vice
President; Seattle, Washington and Fairbanks, Alaska Chapters
EXPERIENCE: Over 43 years
Currently: General Partner, APPRAISAL GROUP OF THE NORTHWEST LLP
Developer of subdivision, office building, and residences
Owner of office buildings and apartments
Formerly: Proprietor, APPRAISAL GROUP OF THE NORTHWEST
Appraiser, Schueler, McKown & Keenan
Partner, Price & Associates, Alaska
Senior Appraiser, First State Bank of Oregon
Appraiser, Pacific First Federal Savings Bank
Appraiser, U.S. Small Business Administration
Appraiser, Washington State Dept. of Transportation
Qualified as an expert witness in Superior Court, Federal Court Master's Hearings, and
Federal Bankruptcy Court. Served as an arbitrator in property valuation and lease renewals.
Washington State Department of Transportation approved appraiser.
Fee reviewer; Washington Dept. of Transportation, major banks, and governmental clients.
Qualified as a Master; held Master's Hearings in Alaska.
Currently certified under the continuing education program of the Appraisal Institute.
Currently certified in Washington State as a General Appraiser (Certificate No. 1100229)
Vice President- Newcastle Trails
A-5193 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review -Page 10
CLIENTS SERVED
Abeyta & Associates, R/W Company
Benson & McLaughlin, Accountants
Boston Private Bank
Bullivant, Houser, Bailey, Pendergrass
& Hoffman;
Bureau of Indian Affairs
Bureau of Land Management
Camp Korey
Cathay Bank
Center Bank
Certified Land Services
Chevron Products Company
Church of God, Western Washington
City of Auburn
City of Bellevue
City of Des Moines
City of Issaquah
City of Kirkland
City of Maple Valley
City of Mount Vernon
City of Newcastle
City of Port Angeles
City of Redmond
City of SeaTac
City of Seattle
City of Shoreline
City of Tacoma
Coldwell Banker Relocation
Columbia Bank
Costco
Eastman, Scott, Attorney, Bellevue
El Centro De La Raza, Felicia Gonzales
Enumclaw Public Schools
First Sound Bank
HDR Engineering
John Lynch, CPA, Bellevue
Johns Monroe Mitsunaga, Attorneys;
Michael Monroe, Darrell Mitsunaga
Keating Bucklin & McCormack,
Attorneys
Kent Schools
KeyBank of Washington
King County Library System
Korea Exchange Bank (KEB)
Lane & Associates, Inc., R/W Company
O. R. Colan Associates, Inc.
(Acquisition Specialists)
Ogden Murphy Wallace, Attorneys
Port of Friday Harbor
Port of Orcas
Port of Seattle
Puget Sound Energy
Reid Middleton, Engineers
Saehan Bank
Seattle City Light
Seattle School District
Sound Transit
Tacoma Utilities
U.S. Bank
U.S. Fidelity & Guarantee
U.S. Postal Service
Union Bank
Universal Field Services, Inc.
Washington Dept. of Transportation -
Approved Appraiser & Reviewer
Washington State Dept. of Natural
Resources
Washington State Parks & Recreation
Commission
Waste Management
Williams Northwest Pipeline
Wilshire Bank
A-5193 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Group of the Northwest LLP
Rockwood Office Park (425) 453-9292
1409140th Place NE, Suite 105 (800) 453-4408
Bellevue, WA 98007-3963 FAX: (425) 455-9740
E -Mail: agnw@appraisalgroupnw.com
APPRAISAL REVIEW
Appraisal File No.:
A-5194
Account Officer:
Phone No.:
Tami Pokorny
Jefferson County Water Quality
360-379-4498
Property:
Single Family Residence
Property Address:
231 Rodgers St, Quilcene, WA
Interest Appraised:
Fee Simple
Date of Valuation:
February 23, 2016
Appraiser:
Rick D. Wells
Firm:
A.C.E. PS, Inc.
Reviewer:
Phone No:
Date Reviewed:
James B. Price, MAI, SR/WA
(425) 453-9292 x110
May 24, 2016
SCOPE OF REVIEW
Desk Review x Subject Inspection Comp Inspection Verification of Data
Comments: This review is intended to conform to Standard 3 of the Uniform Standards of
Professional Appraisal Practice ("USPAP"), promulgated by the Appraisal
Standards Board of the Appraisal Foundation, which sets the guidelines of an
appraisal review.
A-5194 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 2
INTENDED USE OF REVIEW
This review is intended to analyze the described appraisal report to verify the original
appraiser's valuation.
PURPOSE OF THE REVIEW
The purpose of this review is to evaluate the appraiser's compliance with USPAP
requirements.
COMPENTENCY OF REVIEW
The reviewer has both the knowledge and experience to competently perform this review.
DEFINITION OF MARKET VALUE
"Market Value" is the most probable price, as of a specified date, in cash, or in terms
equivalent to cash, or in other precisely revealed terms, for which the specified property
rights should sell after reasonable exposure in a competitive market under all conditions
requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and
for self-interest, and assuming that neither is under undue duress.
SCOPE OF REVIEW:
The scope of this review included the following procedures:
1. Reading and analyzing the appraisal report;
2. Checking quality and appropriateness of market data in the appraisal;
3. Checking for omitted data or techniques;
4. Checking reasonableness of analysis, adjustments and conclusions;
5. Checking for conformity to USPAP standards;
6. Checking mathematics for accuracy.
A-5194 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 3
COMMERCIAL APPRAISAL REVIEW CHECKLIST
VALUATION DATA SUMMARY
Property Type
Single Family Residence
Fee Simple - Appraiser's As -Is Value
Reviewer's As -Is Value
$84,000
$84,000
2.
INTRODUCTION YES NO N/A
1
Is Report Addressed to Client?
x
2.
Complete Legal Description
x
3.
Property Rights Appraised
x
4.
1 Assumptions & Limiting Conditions
x
5.
Proper Certification
x
6.
Sales Hi story
x
7.
Proper Definition of Market Value
x
DESCRIPTION AND FACTUAL DATA YES NO N/A
1.
Adequate Area or Neighborhood Description
x
2.
Adequate Description of Site
x
3.
Adequate Description of Improvements
x
A-5194 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 4
ANALYSIS AND CONCLUSIONS YES NO N/A
1.
Highest and Best Use Analysis
x
2.
Land Valuation
x
3.
Cost New Estimate
x
4.
Depreciation Estimate
x
5.
Cost Approach Conclusion
x
6.
Subject Rent and Expense History
x
7.
Market Rent Analysis
x
8.
Expense Analysis
x
9.
Vacancy Analysis
x
10.
Absorption Analysis
x
11.
Income Approach Conclusion
x
12.
Improved Sales Analysis
x
13.
Unit of Comparison Properly Chosen
x
14.
Improved Sales Physical Analysis
x
15.
Sales Comparison Approach Conclusion
x
16.
Property DCF Analysis
x
17.
Leasehold/Leased Fee Analysis
x
18.
Final Reconciliation
x
19.
Exposure Period
x
20.
"As Is" Value Conclusion
x
A-5194 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 5
SUPPLEMENTAL INFORMATION YES NO N/A
1.
Appraisal Instruction Included
x
2.
Appraiser(s) Personally Inspected
x
3.
Appraised Under Cash Equivalent Terms
x
4.
Adequate Exhibits
x
5.
Extraordinary Assumptions
x
6.
Material in the report complete within the scope of work
applicable in the assignment
x
7.
Market data adequate and relevant
x
8.
Are the adjustments to the data appropriate?
x
9.
Are the appraisal methods and techniques appropriate?
x
10.
Are the analyses, opinions, and conclusions of the work
appropriate and reasonable?
x
REVIEWER'S SUMMARY AND COMMENTS
Access to the property is available from Rodgers St. Public water and electricity are available to
the property, but a septic system is currently used for waste disposal. The site is level and
suitable for development. Flooding has occurred to the property during heavy rains. The home
has some items of deferred maintenance, including exterior painting. The carpeting is in need of
replacement throughout the home. The appraiser listed the quality of construction as average
and the condition as average minus.
In the sales comparison approach, four building sales were considered. The sales prices of the
properties ranged from $72,500 to $85,600. The sales used were inspected and found to be good
indicators of value.
After reviewing all of the adjusted sales, they indicate a value of $84,000 for the subject.
A-5194 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 6
In the reviewer's opinion, this appraisal report is:
Acceptable "As Is" x
Acceptable as amended by Appraiser _
Acceptable as amended by Reviewer _
Unacceptable
Overall quality of the appraisal report (1 Lowest; 5 Highest):
1. Poor
2. Below Average
3. Average
4. Above Average
5. Very Good
If you have any further questions, please contact me.
Sincerely,
4II'll s B. Price MAI SR/WA
ertification No. 1100229
A-5194 APPRAISAL GROUP OF THE NORTHWEST LLP
x
Appraisal Review - Page 7
CERTIFICATION
• The facts and data reported by the review appraiser and used in the review process are
true and correct.
• 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,
impartial and unbiased, professional analyses, opinions, and conclusions.
• 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.
• I have no bias with respect to the property that is the subject of this report or to the
parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
• 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.
• My analyses, opinions, and conclusions were developed, and this review report was
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice
(USPAP) and the Federal Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (FIRREA).
• I have personally made an exterior inspection of the subject property of the report under
review.
• No one provided significant real or personal property appraisal or appraisal review
assistance to the person signing this certification.
• This appraisal review report is based on information and data contained in the appraisal
report which is the subject of the review. Data and information from other sources may
also be considered. If so, it will be identified and noted as such. It is assumed that such
data and information is accurate.
• The reviewer reserves the right to consider new or additional information, which may
subsequently become available, and to revise the opinions and conclusions if this
information indicates the need for change.
• Unless otherwise stated, all assumptions and limiting conditions contained in the
appraisal report (which is the subject of this review) are also conditions of this review.
}
Ja B. Price, MAI, SR/WA
Review Appraiser
May 24, 2016
Washington State General Certified
Appraiser, #1100229, Certified until 6-13-17
A-5194 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review - Page 8
ASSUMPTIONS AND LIMITING CONDITIONS
This review is subject to the following conditions and stipulations:
1. No responsibility is assumed for the accuracy of the legal description. Also, no
responsibility is assumed for legal matters or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated.
2. Any liens or encumbrances which may now exist have been disregarded and the property
has been analyzed as though free of indebtedness or restriction unless otherwise stated.
3. The property is reviewed assuming responsible ownership and competent management,
unless otherwise noted. It is assumed that all required licenses, certificates of occupancy, or
other types of consent have been or can be obtained.
4. Information furnished by others is believed to be reliable, but no responsibility for its
accuracy is assumed. Any plot plans, maps, photographs, sketches, drawings, or other
exhibits contained in the report being reviewed are assumed correct. No responsibility is
assumed for the correctness of any of the above items.
5. The reviewer has made no engineering survey of the property and is not aware of the
existence of any, unless specifically mentioned within this review. No responsibility is
assumed for such matters.
6. The reviewer assumes no liability for any structural conditions. It is further assumed that
there are no hidden or unapparent conditions of the property, subsoil, or structures that
render it more or less valuable. The reviewer is not qualified to detect such items.
Subsurface rights, e.g. mineral or oil rights, were not considered in this report.
7. Any proposed improvements are assumed to be completed with appropriate materials and
workmanship. It is also assumed that any and all construction will be completed in a
timely manner.
8. It is assumed the property is in full compliance with all applicable zoning and
environmental regulations unless otherwise stated.
9. It is assumed the utilization of the land and improvements is within the boundaries of the
property described and there is no encroachment or trespass unless noted in the report.
Any allocation of total value between land, building, or any other fractional part or interest
is invalidated if used separately or in conjunction with any other appraisal.
10. The reviewer is not required to give testimony or be in attendance in court with reference
to the subject property unless arrangements have been previously made.
11. This review report shall only be used in its entirety with the original appraisal under
review. Disclosure of the contents of this report is governed by the Uniform Standards of
Professional Appraisal Practice and the By -Laws and Regulations of the Appraisal
Institute. Neither all nor any part of this report shall be disseminated to the public through
advertising, public relations, news, sales, or other media without prior written consent of
the appraiser. No part of this report or any of the conclusions may be released to third
parties without prior written consent of the appraiser.
A-5194 APPRAISAL GROUP OF THE NORTHWEST LLP
QUALIFICATIONS OF APPRAISER
JAMES B. PRICE, MAI, SR/WA
www.APPRAISALGROUPNW.COM ; JPRICE(&APPRAISALGROUPNW.COM
PHONE No.: (425) 453-9292; FAx No. (425) 455-9740
1409140TH PLACE NE, STE 105, BELLEVUE, WA 98007-3963
EDUCATION
Bachelor of Science in Finance, Real Estate Emphasis; Northern Illinois University/
University of Illinois.
Appraisal Institute courses include Capitalization Theory, Residential Valuation, Easement
Valuation, and Standards of Professional Practice.
Seminars and Classes include: Al Course 833- Fundamentals of Separating Real Property,
Personal Property, and Intangible business Assets, Real Estate Feasibility, Business
Valuation, Valuation of Easements and Litigation Skills, Appraising for Pension Funds,
and Appraisal of Partial Acquisitions.
PROFESSIONAL MEMBERSHIPS
Appraisal Institute
Membership: MAI Designated Member of the Appraisal Institute since 1979
Formerly: President, Director, and Vice President, Seattle Chapter and Alaska
Chapter
International Right of Way Association
Designation: SR/WA (Senior Right of Way Agent)
Position: International Right of Way Association Valuation Committee, past
chair
Formerly: Regional Chair, Region 7, International Right of Way Association
International Right of Way Association Director, President, and Vice
President; Seattle, Washington and Fairbanks, Alaska Chapters
EXPERIENCE: Over 43 years
Currently: General Partner, APPRAISAL GROUP OF THE NORTHWEST LLP
Developer of subdivision, office building, and residences
Owner of office buildings and apartments
Formerly: Proprietor, APPRAISAL GROUP OF THE NORTHWEST
Appraiser, Schueler, McKown & Keenan
Partner, Price & Associates, Alaska
Senior Appraiser, First State Bank of Oregon
Appraiser, Pacific First Federal Savings Bank
Appraiser, U.S. Small Business Administration
Appraiser, Washington State Dept. of Transportation
Qualified as an expert witness in Superior Court, Federal Court Master's Hearings, and
Federal Bankruptcy Court. Served as an arbitrator in property valuation and lease renewals.
Washington State Department of Transportation approved appraiser.
Fee reviewer; Washington Dept. of Transportation, major banks, and governmental clients.
Qualified as a Master; held Master's Hearings in Alaska.
Currently certified under the continuing education program of the Appraisal Institute.
Currently certified in Washington State as a General Appraiser (Certificate No. 1100229)
Vice President- Newcastle Trails
A-5194 APPRAISAL GROUP OF THE NORTHWEST LLP
Appraisal Review -Page 10
CLIENTS SERVED
Abeyta & Associates, R/W Company
Benson & McLaughlin, Accountants
Boston Private Bank
Bullivant, Houser, Bailey, Pendergrass
& Hoffman;
Bureau of Indian Affairs
Bureau of Land Management
Camp Korey
Cathay Bank
Center Bank
Certified Land Services
Chevron Products Company
Church of God, Western Washington
City of Auburn
City of Bellevue
City of Des Moines
City of Issaquah
City of Kirkland
City of Maple Valley
City of Mount Vernon
City of Newcastle
City of Port Angeles
City of Redmond
City of SeaTac
City of Seattle
City of Shoreline
City of Tacoma
Coldwell Banker Relocation
Columbia Bank
Costco
Eastman, Scott, Attorney, Bellevue
El Centro De La Raza, Felicia Gonzales
Enumclaw Public Schools
First Sound Bank
HDR Engineering
John Lynch, CPA, Bellevue
Johns Monroe Mitsunaga, Attorneys;
Michael Monroe, Darrell Mitsunaga
Keating Bucklin & McCormack,
Attorneys
Kent Schools
KeyBank of Washington
King County Library System
Korea Exchange Bank (KEB)
Lane & Associates, Inc., R/W Company
O. R. Colan Associates, Inc.
(Acquisition Specialists)
Ogden Murphy Wallace, Attorneys
Port of Friday Harbor
Port of Orcas
Port of Seattle
Puget Sound Energy
Reid Middleton, Engineers
Saehan Bank
Seattle City Light
Seattle School District
Sound Transit
Tacoma Utilities
U.S. Bank
U.S. Fidelity & Guarantee
U.S. Postal Service
Union Bank
Universal Field Services, Inc.
Washington Dept. of Transportation -
Approved Appraiser & Reviewer
Washington State Dept. of Natural
Resources
Washington State Parks & Recreation
Commission
Waste Management
Williams Northwest Pipeline
Wilshire Bank
A-5194 APPRAISAL GROUP OF THE NORTHWEST LLP